The real estate market has always been prime investing territory. Ancient kings invested in palaces and castles. The tycoons and robber barons of the 19th century purchased massive mansions. Modern millionaires and billionaires snatch up real estate hand over fist—even when claiming to live humbler lives. In modern times, the folks at RedSwan CRE did more than just take notice of this inequity of opportunity.
No matter where or when you look, those with money to invest have turned to the real estate market as a quality long-term investment. However, the current seller’s market boasts sky-high prices. It can feel impossible to scrape together enough cash to put an offer on a house that has the potential to actually attract a seller. Investing in something bigger, like commercial property, seems impossible.
That’s where RedSwan CRE entered the picture.
RedSwan CRE is using tokenization to rewrite the real estate script.
RedSwan CRE (CRE stands for Commercial Real Estate) is a financial technology or “FinTech”company. The innovative brand works with all kinds of investors but is particularly focused on non-institutional investors or those that are currently underserved in the real estate industry.
RedSwan CRE is changing the way these individuals can invest their hard-earned dollars by breaking down the barriers to entry in the real estate market.
In the past, many of the best investment properties have cost 20+ million dollars to purchase. On top of that, individuals required incredible amounts of industry knowledge to navigate the process of investing in a property. RedSwan is eliminating both of these issues by implementing tokenization of the real estate process.
On the surface, tokenization is a simple concept. All it does is takes an asset—whether it’s a physical one, a digital one, or even an IP—and turn it into a digital token. This “digital security token” represents a physical asset RedSwan can fractionalize into multiple parts to reduce minimum investment cost.
Real estate investing can now be fractionalized.
In other words, tokenization creates a digital representation of blockchain that individuals can purchase, similar to traditional shareholder interest. The beauty of tokenization is that you can break up a tokenized asset into fractional shares. You do this much the same way that stocks represent a portion of company ownership.
This means many people who could not afford to purchase an entire real estate asset can now purchase a fractional portion of the asset. With this process in place, it’s turned investing into an activity that anyone with $1,000 (the company’s minimum investment amount) or more can engage in.
Along with affordability, tokenization offers many other benefits.
- Better Liquidity. Investors can liquidate investment shares much faster than selling the entire property.
- Lower Transaction Costs. Your investment goes directly to the real estate, with no upfront fees or broker costs.
- Access. Being a part of the RedSwan CRE community allows you direct access to quality, affordable, real estate investment projects.
Through the emergence of crypto, NFTs, and other blockchain web 3.0-based assets, RedSwan CRE makes a big difference in increasing accessibility. Their platform offers a central ecosystem with a marketplace that services both investors and property owners.
RedSwan is embracing cryptocurrency…for long-term stability?
Along with decentralizing real estate investing, RedSwan has also opened the door for investing in large-scale real estate ventures with cryptocurrency.
This has allowed them to offer an alternative to investors who are (ironically) concerned about cashing out of crypto holdings because of the threat of inflation.
Over a year ago, RedSwan CEO Ed Nwokedi was already pointing out that investors, “are scared that governments are creating national debt by printing too much currency. The pandemic crisis only made our deficit worse.” Nwokedi added that “In a short time frame, inflation will eat into the value of their savings. Globally, investors are starting to sense similar areas of financial concern.”
Since then, we’ve witnessed a major stock market pullback. Inflation has also remained a major issue both for the U.S. and for countries around the world, surpassing 8% in recent times.
Of course, the financial instability concerns aren’t exclusive to fiat currency.
Similarly, crypto prices are notoriously unreliable, leaving most investors with the choice between unstable cash and ticklish crypto prices. But RedSwan is allowing cryptocurrency holders to opt for another, more stable, historically productive way to invest their wealth. They can do this even if that wealth takes the form of cryptocurrency in a blockchain format.
Real estate investment can help stabilize cryptocurrency portfolios.
The innovative investment option allows individuals to invest in real estate properties with cryptocurrency. As a result, this gives crypto holders the ability to reduce the volatility of their assets. They can do this without liquidating them or shifting them to the currently volatile, inflation-prone state of cold, hard cash.
RedSwan is bringing multiple concepts together. Cutting-edge 21st-century things such as cryptocurrency, blockchain, and tokenization are being applied to the age-old investment option of real estate.
By uniting the old and the new, the forward-thinking team at RedSwan has hit upon something truly unique. They found a way to provide key elements such as accessibility and liquidity to major investments that are traditionally huge moneymakers.
By lowering the barrier of entry and allowing investors to use things such as Bitcoin to invest in property, they are enabling the “everyman” investor to diversify their holdings from all crypto to include durable real estate assets. They are getting access to investments that, in the past, have never been a viable option for any but the richest.
It’s a new dawn for the real estate era, one marked by tech, tokenization, and the decentralization of past power. All that remains is for smaller investors to seize hold of the new digital opportunities. Today, they can group together through platforms such as RedSwan. After that, they can start collectively taking their allocation alongside the ranks of the already-established super-rich investors.
Image Credit: Dominika-Roseclay; Pexels.com.
