By converting physical, real world assets into digital assets, the Lattice Labs developed ledger software offers the
capability of owning real
estate via a digital asset that represents the physical piece of property. This covers Real Estate
and other physical
assets such as cars, artwork, photos, and so much more. The possibilities are endless.
Tokenization of real estate opens new opportunities for small investors and makes
real estate investments more efficient and cost effective for everyone.
Real estate market size
The value of the global real estate investment market, managed by professional
investors, increased from $7.4 trillion in 2016 to $9.6 trillion in 2019.
Small investors interested
What if the public were able to invest in Real Estate in an easier, less daunting
manner? 48% of people would be more likely to invest if technology made it easier.
Property development firms pay interest rates of up to 29% when they finance their
projects through single-source loan providers.
Take a dive into real-world use cases
Large investors dominate the real estate market, preventing smaller players from
participating. At the same time property development companies find it difficult to
obtain financing because of high investment minimums.
Real estate is an illiquid market, which means it can be difficult for investors
to sell their holdings quickly. In addition, inefficient property management
adds unnecessary complexity for smaller investors who want or need to make
changes in a timely fashion.
Unsuitable for small investors
The current system wouldn't accommodate the large influx of small investors, and
it could cost more to process their orders than the revenue generated by them.
Outdated data management
A siloed database approach, combined with a paper registry of investors'
personal information and transaction histories, created significant
inefficiencies for fund operations—and an inability to scale up as more
investors entered the market.
Not scalable to meet current demand
The Lattice Labs solution
Blockchains can be used to tokenize real estate, creating a secure ledger that
enables transactions between buyers and
Digital assets can represent ownership of any type of physical asset, enforcing
certain rights and obligations through
smart contracts while eliminating the need to keep track of numerous registry
This new model is more transparent, faster and cheaper. It solves the problems
of the industry today by creating a
global real estate market that can trade seamlessly anywhere in the world.
Making life easier
Smart contracts can be used to collect payments from renters, then
distribute the funds collected among fractional
owners. Smart contracts can streamline the real estate industry by speeding
up transactions, reducing costs and
eliminating third parties.
Property management firms can realize significant benefits from the
increased transparency of a shared digital ledger compared with siloed data
and paper documents.
Data related to previous ownership is available
Open to anyone
Real estate companies benefit from better financing options, including
smaller investors, while the costs stay low. Tokenized fractional ownership
allows smaller investors to gain access to real estate investments.
Wider investor base
Digital assets such as tokenized real estate have high liquidity in
secondary markets, which may attract new investors who weren’t previously
interested in property investments.