Commercial real estate investing has traditionally been difficult to get started with due to high barriers to entry, especially for international investors. Some of those barriers are cumbersome regulations, credit rating requirements, debt-to-income ratio, hefty financing, citizenship, and high cash requirements. Because of how difficult and costly this process is millions around the globe can’t access US commercial real estate.
If you are one of the lucky ones that can afford the massive down payment and can get cross-border financing you should still plan on a 3–6-month process if it goes smoothly, which it never does. For this reason, real estate has always had a stigma of being an investment choice for the wealthy, but even the wealthy are now avoiding cross-border real estate transactions because of how difficult of a process it is.
Barriers that have been holding back international real estate investors are about to be removed because of blockchain technology and the tokenization of real estate. This will open up more investment opportunities for Europeans and Asians according to real estate expert Troy Merkel.
“Blockchain allows international players to come in more easily, and there is a heavy interest from a macro-real estate level,” RSM U.S. principal Troy Merkel said. “The Chinese real estate investment gets a lot of press, and we care a lot about whether they are investing or divesting, but when you look at other players, such as Canada, the U.K., Germany and South Korea, there is still a healthy appetite for commercial real estate, and blockchain helps those players get involved.”
By tokenizing real estate assets on the blockchain it’s easier for property owners to offer a fraction of their asset to the masses, and it’s easier for the masses to invest in real estate around the globe, a win-win. Each security token represents a stake or share of the asset that has been divided into small portions making it affordable to the recent college graduate, single parent household, and retiree.
The Returns token by RealtyReturns is a security token that is democratizing real estate investing for people around the globe–by offering fractional US real estate investments in affordable amounts. It’s the key that unlocks passive income and capital appreciation to millions of people that are building their nests eggs and planning for the future.
Investors around the globe that have ETH cryptocurrency will be able to invest as little as 2 ETH into fractionalized US real estate through the RealtyReturns online marketplace, and bypass the working with banks, attorneys, brokers, title insurance companies, and escrow. RealtyReturns has a rich background investing in residential, multi-family, and commercial cash-flowing properties around the US, and collectively have well over 100 years of real estate experience.
