How to Invest in Real Estate without Buying the Whole Property

There comes a point in time in anyone’s career when they want to diversify their assets and actually begin investing in something that can grow in value or generate them with passive income.

However, traditionally, in order for someone to get into the real estate space, they had to essentially spend hundreds of thousands of dollars at the least, and for many people, this asset class was unreachable initially.

In other words, it took decades for people to make enough money in order to even begin thinking about real estate investments, which meant that it was always seen as an asset for the extremely wealthy. 

However, today, it is simpler and cheaper than ever before to jump into real estate without paying too much. Let’s go over everything you need to know.

Easy Entry Into the Real Estate Asset Class

For years, real estate seemed unreachable as an asset for a lot of people.

The main way through which real estate has become a lot more accessible throughout the past few years is through the process of asset fractionalization. 

This is the process of dividing an asset into smaller denominations so that many users can buy partial ownership of the asset.

This in turn results in greater liquidity, better price discovery, and universal accessibility of illiquid assets. The tokenization of real estate assets has essentially opened the doors for a lot more people to access this asset class.

Many people can benefit from blockchain real estate tokenization. This is due to the fact that it utilizes blockchain technology to tokenize and then fractionalize real estate.

If a property is worth $200,000, for example, it can get split across 20 tokens worth $10,000 each. Here, 10 people can buy each portion of the token for $1,000, for example, or 100 people can buy a portion of the token for $100 each.

The main concept and idea here are that a person does not need to go all-in with a $200,000 investment for the property in order to get the benefits, such as the appreciation in value, as well as the ability to earn passive income by renting out the place.

In fact, all they can do is just buy a specific percentage of it. So if they buy a 10% share in that property, they will get 10% of the profits generated from the property in question.

How You Can Get Into Real Estate Investing Within Minutes

Today, you do not have to get a mortgage or a huge loan in order to get into real estate investing. 

In fact, by utilizing the power of blockchain technology, tokenization, and fractionalization, anyone can essentially begin investing in real estate, where they can only buy a specific percentage of a property based on their budget.

Furthermore, users can buy a percentage in numerous properties located in different parts of the world.

This way, if one property underperforms, another can overperform and make up for the losses of the first property, which ultimately results in fewer risks involved with this form of investment. 

You can get into real estate investing without buying an entire property and earn passive income by building your portfolio with an application such as Propchain.

Through it, you can get an 8-12% average yearly yield, and it is currently available in 28 countries. The app is dedicated to making investments in real estate as simple and as easy as possible, with the ability for users to browse through a collection of properties and invest in the ones that fit their portfolio and diversify with the ownership of a percentage in multiple properties.

This, in turn, enables each user access to a monthly cash flow, with rental income from their investment.

Investment in Real Estate Has Never Been Easier

Today, by investing in real estate through fractionalization, you gain access to speed, affordability, diversification, capital appreciation, and, most of all, liquidity.

What was once an asset class that was initially only limited to the extremely wealthy is now available to just about anyone through the tokenization of real estate asset types.

This ultimately opens up the doors and provides an opportunity for anyone to begin investing in real estate.

This might not be a new concept. However, fractional ownership has become one of the most popular business ventures throughout recent years, mainly because it reduces the financial burden for a single investor. Furthermore, property owners that might want to sell their property can now make their assets a lot more liquid, as they are no longer limited to just a few buyers, and anyone from any part of the world can invest in their property now. 

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