Buying Tokenized Real Estate

Tirios Team

December 27, 2021

Table of Contents

1. What is Blockchain

2. Real Estate Tokenization overview

3. Benefits of buying tokenized real estate

4. How to buy tokenized real estate

5. Interest of investors and property owners

Blockchain is a database that is distributed amongst a network of computers that stores information digitally, which can serve as an indicator of ownership of anything digital or physical. It is a new innovation that has changed the direction of the world in an incredible way that many never even imagined. Blockchain can affect various aspects of the world: economies, financial institutions and organizations, and even real estate.

Real estate is viewed as one of the most secure kinds of investment and provides some of the best returns. After doing some research or speaking with professionals, one might find that purchasing a condo, apartment, or home is a great investment in the real estate world. However, without ample amounts of capital on-hand, many individuals might view this as an impossible feat. Enter tokenized real estate, where these challenges immediately disappear.

What is tokenized real estate?

Tokenized real estate is a way to exemplify ownership of a real estate asset, using blockchain technology as a distributed ledger and resource to verify ownership. Tokenizing real estate also gives investors the ability to buy only a fraction of the property, rather than needing to invest  a large lump-sum of capital at one time. This opens up the market to a much more diverse group of people to take part in real estate investing.

Buying tokenized real estate can be compared to purchasing an equity like stocks, where you can purchase just a “share” of the asset that you are interested in.

At an even deeper level, tokens can be utilized  as a loan, possess easier liquidity of real estate, and have low transaction costs.

How does real estate tokenization work?

In the world of cryptocurrencies, there is an ICO, or Initial Coin Offering, where a crypto coin is a representation of their investment in a specific currency. An STO, or Security Token Offering, is a similar concept, except it pertains to contracting a specific investment asset, like stocks, bonds, funds, and real estate.

To be considered as an STO, a coin must be asset-backed and have the necessary regulatory governance in place. Following the stages of being considered an STO, security tokens are delivered to the related purchasers and are  considered to be their portion of the ownership of a specific asset, or in this case, real estate property. Ultimately, this can be taken to much higher levels. Token owners of a property can get a portion of things that are connected to the property, like rent, or even direct benefits and perks provided directly from the issuer. Other than being utilized as a property right, tokens can be utilized as money and as a loyalty program.

Advantages of real estate tokenization:

  • Flexibility

Anybody can contribute a very specific sum to immediately become an owner of a property and make the most from the possible benefits. Tokens can be bought, sold and exchanged in other business sectors for other assets very easily. The owner of real estate tokens can easily trade this token for a token that represents a stock, bond, or even other properties. Tokenization gives an advantage over crowdfunding because it gives you digital possession, permitting you to sell and trade with ease.

  • No Geographic Limits

Property tokenization, similar to any tokenization, takes out boundaries identified within an area. Nothing keeps you from purchasing a property on the opposite side of the world where it might be the middle of the night where that property is located. There are no city, county, state, or country regulations that say you can’t purchase that property.

  • Speed of Investment

One of the biggest advantages real estate tokenization has is the lack of restriction on how quickly you can invest in a property. Gone are the days of having to get approved by various entities or funding sources and filling out loads of paperwork. Transaction times decreases tenfold because tokenization cuts out all of the middlemen.

  • Less Fees and Non-Guarantees

The innovation of blockchain eliminates fees that become obstructions, such as public accountant charges and bank expenses. This increases the investor's profits and shortens the timeline involved with raising or accessing capital, which smooths out the whole transaction.


Until now, putting resources into real estate has, for the most part, required huge amounts of cash. If you buy tokenized real estate, that all changes. One does not need to buy a whole property. A specific property can be divided into a great many tokens, which creates a larger community around properties and provides a great deal of benefits like extended ownership and a much more secure proof of ownership.

Because of the tokenization of real estate, now anyone can get started in a more modest shareholding method. A large initial investment is no longer needed.

Real estate tokenization is consequently expected to turn into a tool that will be safe for both financial investors and property owners. Investors and property owners have experienced increased investment opportunities because of the utilization of this innovation. Real estate tokenization is changing the world as we know it and will continue to innovate and disrupt the real estate market.

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