What often springs to mind when we think of investing in real estate? Oftentimes, we think of it as large development firms buying up acres of properties and several high-rises or we think of people owning multiple investment properties and condos. Simply put, we often envision a large capital-intensive affair that is not accessible to the everyday person.
To a great extent, this is true as most people are told to budget a significant amount of money if they want to invest in real estate. The issue with this is that it creates a high barrier to entry that keeps out many everyday people.
As such, it is no surprise that in the last few years, blockchain has been used to democratize the real estate industry and make it more accessible. This has happened through the tokenization of real estate projects as well as other forms of investments and as these continue to grow and expand, more people will be able to enter different investment vehicles and make a profit. One company that is leading the way in terms of the democratization of real estate is a firm called GENIUS ESTATES.
GENIUX – HOW REAL ESTATE IS TOKENIZED
Typically, when a piece of real estate is sold to an investor, they buy an entire apartment, building, house or so on outright or mortgage it, and usually, this investment is limited to one or just a few people who have to bring a large sum of money.
In the last few years, however, real estate is becoming more tokenized. When a piece of real estate is tokenized, small fragments or shares in it are sold as digital assets and many people can buy part ownership of the property. For example, if a piece of real estate is worth $1 million, 100 tokenized pieces of ownership worth $10,000 each can be sold.
This means that rather than having to come up with the entire $1 million or several hundreds of thousands of dollars to invest in a property, an investor can invest only $10,000 or, in some cases, even less money. As profits are generated from the real estate investment, investors receive portions of the revenue depending on how many tokens were bought into the property. The benefit of this is that people with fewer funds to invest can still benefit from the real estate market and this is what GENIUS ESTATES is working to improve upon.
HOW GENIUS ESTATES COMES IN
A lot of the time, when a piece of real estate is tokenized, it is sold in what is called a Security Token Offering or an STO. If a person wants to participate in an STO, they usually have to create an account with a specific platform and buy into the native token of the STO.
The problem is that oftentimes, consumers have to seek out these platforms in different ways and have to follow different rules for each platform. GENIUS ESTATES addresses this issue where consumers can buy into multiple STOs using Geniux which is its native token.
This means that rather than go to different platforms, consumers can buy into different investment vehicles from a single platform with Geniux the same way you can buy from multiple vendors on a singular e-commerce site. Income from these different projects is paid out in the native token, GENiUX, which is an ERC-20 standard token.
Users will also receive rewards for recommending the site to other people and investments on GENIUS ESTATES are not limited to just real estate. There will be an option to invest in Genius Air that offers co-ownership of private jets, Genius Art that allows for the buying of NFTs, and even Genius Sports. Overall, the message is clear that tokenization of different investment vehicles and democratization is key to the new world of investing.
GENIUS ESTATES is currently conducting the pre-sale phase of its own ICO and its first property in Ireland launched earlier this year in May. Moving forward, we can expect to see even more of these types of projects pop up that will go a long way to not only make investors more money but make the industry more equitable and accessible as a whole with Geniux and Genius Estates.
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