Blockchain Can Democratize Real Estate Investing


It is not easy for everyone to make investments in real estate. In some cases, the inability to buy real estate might be due to finances. Even those who have the money to make an investment may not be able to invest for one reason or another depending on where they live. If someone hopes to buy a piece of property from a country where they do not live, it can quickly become even more difficult to make an investment unless you have all of the resources already in place. This is simply not possible for many people, and traditionally, it has meant that there are barriers to who can and can’t invest in real estate. It can essentially keep the wealth among those who are already wealthy. However, things are starting to change thanks to some new technologies that have become available in recent years. The tech that has the potential to truly democratize real estate investing is called blockchain. You might have heard mention of this technology in regard to cryptocurrency, such as Bitcoin. However, there are plenty of other ways that the tech can make purchasing and selling assets easier, and that includes real estate. In fact, there have already been a number of real estate transactions that have taken place.

How Does Blockchain Help With Real Estate?

One of the biggest benefits of blockchain technology is the fact that it can help to eliminate dependence on the middleman. This is true when it comes to real estate, as well. In most cases, when a piece of property is bought or sold, there is going to be heavy reliance on third parties to help with the process and the transfer of the real estate. For example, local government is often involved, and that’s just one of the middlemen involved. When you have too many people involved, it can be needlessly complicated, and there tends to be a greater chance for errors and problems to develop. In addition, all of the documentation that is needed for the real estate transfer tends to be in hard copy. It is not in digital form, which means that it can be more difficult to have access to all of the information that you might need or want. In addition, when these items are in hard copy form, it will make them more difficult to update. Sometimes, the paperwork can be lost, and there is no record of it There is also the potential for fraud and tampering in these cases. The blockchain is a breath of fresh air in these situations. Everything is transparent and easy to trace. Everything that happens with the property is recorded digitally with the property, which becomes a digital asset. This includes, the deed, ownership, transfers in the past, and everything else associated with the property. The record is public, as well, and it is validated and replicated on a large number of computers. This means that it is not going to get lost, and it is not going to be possible to tamper with the information. This can eliminate the need for a third-party broker.

As an Investor in Real Estate One Small Piece at a Time

While you can certainly benefit from the blockchain when you want to buy and own a piece of property, you will find that it also has the potential to be quite beneficial to investors who are interested in real estate. Traditionally, you have to be wealthy if you are going to make a real estate investment, as long as you wanted to buy an entire property for your investment. This is true with residential properties, and with commercial properties, which often tend to be even more expensive. Another option that some could use to invest in real estate would be to become involved with a real estate investment trust. These are organizations for real estate investment, and they work similarly to buying mutual funds. While this might be easier for those who do not have a large amount of money that they can invest, these companies will often take a large part of the money that you are making on the investment.

Therefore, the blockchain could be a better idea for you. This technology allows a piece of property to become a token, and it is possible for the property to be broken up into a number of digital tokens. This means that you do not have to buy the entire property. Instead, you will be able to buy a fraction of the property, making it easier than ever to make a real estate investment. These tokens that represent the property could be sold or bought on the blockchain quickly and easily, just like other types of cryptocurrency.

Consider how nice it might be to make a real estate investment without needing to spend a fortune to do it, and to have it be nice and simple without the hassle of dealing with an REIT. There are companies that are already offering this option, and it is very enticing to all manner of investors.

Construction Project Investing

In addition to buying and selling properties that are already built, it is also possible to invest in and fund construction projects. Considering the massive number of construction projects that are being developed all around the United States, and in so many other areas of the world, this opens up all new options for investors. This could become a very lucrative option that investors might want to pursue.

As you can see, there are some great options available for those who want to invest in real estate, and those who want to buy properties thanks to blockchain technology. If you have always thought about making a real estate investment, but you worried that you did not have the money, now is the time to consider some of those other options. It could be a great way to start investing, or to diversify your portfolio further.