2022-10-5 20:24 |
Despite economic uncertainties, the real estate market continues to present abundant opportunities for investors. According to Zillow, home values in the US are up 18.2% year over year. Compare this to the S&P 500 and NASDAQ Composite – which are down 16.7% and 25% respectively – and it becomes clear that real estate is holding up far better than most other assets.
Investors have taken notice, and demand for real estate has never been higher — especially for fix and flip properties. In fact, houses are being flipped at a higher rate than any time in the last 20 years. And with good reason – according to ATTOM, the average house flip returns a gross profit of $67,000 and an ROI of 26%.
Landshare, a tokenized real estate platform on the Binance Smart Chain, has already sold tokenized real estate to investors from over 30 countries around the world via the first-ever real estate offering on Binance Smart Chain. Now, they intend to bring house flipping to the masses with their new feature, Tokenized House Flipping.
What is House Flipping?House flipping is when an investor buys a property, performs renovations, then re-sells it for a profit. When done properly, renovations add more value to the home than they cost to perform – for example, a fresh coat of paint and new flooring is inexpensive but can make a worn-down room look brand new.
House flipping is the perfect solution for short-term investors, as it grants a lump-sum return in a relatively short time frame. The process generally takes anywhere from a few months to a year, depending on the scope of the project.
Traditional Barriers to EntryDespite being highly lucrative, house flipping can be difficult or impossible for the average person to get involved with. In addition to the high cost of buying a property, potential flippers will also need to navigate the complicated process of selecting a property, budgeting for repairs, and getting the renovations done in a cost-effective manner.
Hiring and managing contractors is not only a hassle but also cuts into the bottom line substantially and can result in a negative ROI. Investors who elect to do all the work themselves will save money, but renovating a house requires specialized skills and a large investment of time. Put simply, the process is expensive, and complicated, and can result in a loss if done improperly.
Landshare Brings House Flipping to the BlockchainBy leveraging the power of blockchain technology, Landshare’s newest feature offers fix and flip opportunities with none of the traditional hassles or barriers. Instead of buying an entire property and performing the renovations yourself, Tokenized House Flipping allows anyone to invest fractionally with other investors around the world, while the Landshare Team handles the renovation and sale process.
The underlying technology behind this new feature is called tokenization, which refers to the creation of tokens on the blockchain that represent the ownership of real-world assets. Landshare has previously used this process to offer fractional investment in rental properties. Now, they are applying this tried-and-true method to the first-ever tokenized fix and flip.
For a quick summary of how the Tokenized House Flipping process will work, here is a step-by-step breakdown:
Landshare creates a new legal entity responsible for the ownership, renovation, and sale of the property. The ownership units of this entity are converted to tokens. A limited number of tokens are sold to KYC-verified investors to help cover the renovation costs of the property. After the renovation is complete, the Landshare team puts the property up for sale on the open market. When the property is sold, token holders can redeem their House Flipping Tokens for their share of the sale proceeds. ConclusionTokenized House Flipping is the latest feature to arrive in the Landshare Ecosystem, which also includes investment opportunities in rental properties, real estate NFTs, and a full suite of DeFi features. This new feature expands Landshare’s slate by introducing short-term investment opportunities in real estate, a first for the Binance Smart Chain and the blockchain sector as a whole.
Disclaimer: House Flipping Tokens have not been, and will not be, registered under the Securities Act of 1933. Accordingly, the Securities are being offered and sold only to non-US residents in compliance with SEC Final Rule Offshore Offers and Sales (Regulation S). Additional restrictions may apply, see the website for more details.
Similar to Notcoin - Blum - Airdrops In 2024