Crypto World: How Tokenization Could Shake Up The $52 Trillion U.S. Real Estate Market
As the U.S. real estate market ballooned to $52 trillion dollars in 2023, according to Zillow, a growing number of start-ups think web3 can lower the barrier to entry for aspiring real estate investors.
Lofty AI focuses on the rental market, allowing its customers to buy a stake in a rental property for as low as around $50. Those investors earn daily rental income and collectively govern decisions with the property.
Vesta Equity pairs investors with homeowners looking to sell a portion of their home equity as a token in return for cash. The homeowner can repurchase the token at market value at a later date, or the investor holding that token can take advantage of future appreciation of the property at the time of sale.
As these companies grow in users and revenue, there’s still a question of whether they fit under current U.S. regulations and how they could impact communities.
Chapters:
00:00 - 00:56 Intro
00:57 - 03:46 What is tokenized real estate?
03:47 - 06:15 How is it regulated?
06:16 - 09:28 How does it affect communities?
Produced, Shot, and Edited by: Kaan Oguz
Animation: Christina Locopo, Jason Reginato
Managing Producer: Jordan Smith
Supervising Producer: Jeff Morganteen
Additional footage: Jordan Smith, Getty Images
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Crypto World: How Tokenization Could Shake Up The $52 Trillion U.S. Real Estate Market
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Melissa Terri Swayne for the last five years or so, and her returns have been pretty much amazing.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Best bet for 100x is going to be AMX59K , once its on major exchanges it will explode.
What the hell is AMX59K??? More bot BS. Nice try with the crypto scam pump/dump
we should all report it tbh, this type of stuff is so harmful
@@user-j5ja95 Reporting doesn't help as KZhead intentionally allows these bots.
Finally someone commented about this bs lol been wondering the same thing
Forget Shiba and Dogecoin. The next Bull runner gonna be AMX59K
Kardden Token will make millionaires, after CEX listing it will blow up.
sounds like the next crypto scam that some will go to prison for
Kardden Token and amazon signed a partnership. It will blow up once it hits mainstream.
You do not want to own a property with 200 other people *regardless* of the tech that does it.
Seriously people are delusional, most of those crypto cultists are. Just try owning real estate with just one person and rent it, you can't believe the amount of work there is, how many arguments, how many things to decide, This is a very common feedback in startup incubators when it comes to real estate and why there's so few tech projects for real estate: it's a centuries old business where most things have been min/maxed, it's tough to think there are technological solutions to real estate problems.
Your %100 correct!
@@EnricoPolanski you are right, tougher than it looks and this bit about everybody voting on how to manage the property sounds like it would be chaotic?
I'm interested in understanding why you seem this to be a failure when REIT's own tons of real estate in the USA's most populated cities. From what I understand, the ownership should not exceed the actual equity in the property and if the value of the property should fall below a certain point could trigger a foreclosure. The fact that all the transactions would be recorded on the block chain is great because no one has to run down to the city to pull info or worry about title searches when the info is irrefutable. Let's discuss.
Resistance is futile. Stay on the boomer side or make a mint off of investing in the SOFTWARE PROTOCOLS that will make tokenization possible. Getting caught up in the minutia will yield ZERO gains. Do some research, put on your big boy hat and change your financial future. I'll give you a start of terms to GOOGLE ISO20022 ISO24165-2 ISOTC307 XRP, XDC, XLM, ALGO, IOTA, QNT, CELO, DAG, HBAR ITS JUST SOFTWARE FOLKS. DEMONIZING IT MAKES YOU LOOK OLD. 😂
If the tokens are under a single LLC, why would you need a blockchain token in the first place instead of a normal database?
Marketing
Yeah i.dunno? And why not just buy a share in a REIT? With the REIT you get some people manahjng the properties instead of this bit about everybody voting to change the carpet or paint?
The LLC is a decentalized autonomous organisation which is not governed by a centralized entity. So decisions are made by on chain voting which is not possible via a normal database
Transparency of data.
@@starek1701 You still don't need a blockchain for it.
TLTR: It won't democratize Real State owning, it would expand Real State's stock trading capabilities though... Nice...
"...there's technically not a single person who can't be a home owner" but I want to live in a home, not poorly manage one with 1-1000s of individuals who only want a profitable return and don't care about who lives in the home. This is just going to exacerbate the housing crisis and may lead to only the top 1% actually owning 100% of their home.
This just seems like a worse REIT, with the addition of perverse incentives. I know they arent exactly analogous, but am I looking at this incorrectly? Im sure tokenization may have niche applications...I guess we'll see.
Right. Also, at the end of the video one guy states that with this 'everybody can own real.estate'. Well isn't that what a REIT allows average people to do? They don't need a downpayment they can buy whatever REIT shares they can afford?
This is exactly what came to mind. At least REITs are more regulated, therefore, you are able to invest understanding the full risk of your investment. Thats not the same for these new types of investment options. I’ve seen tokens collapse, even ones supposedly “pegged” to the dollar. Not sure how I feel about this. We still don’t understand crypto like we understand the stock market and real estate. There’s simply not enough historical data to provide us enough information to make a proper decision.
Sure it has, taking fools their money thinking that putting something on a blockchain where there's no need for it is a simplification. Remember those NFT images lunatis?
Homes should be for living in, not for investment. F**k this whole "turn everything into a commodity" mentality.
Except ownership is and has been crucial to living a prosperous life. “You will own nothing and be happy” is an ominous quote for a reason. Homeownership while yes is 100% about living and building a home, its also just as much about owning an asset that hopefully increases in value and continues to grow your worth for that home and family you just built. It’s both about living and about ownership. Tokenization makes ownership easier and more accessible, this is crucial to a more prosperous, financially independent society, especially the middle class who own very little assets as of now. You need to do more than just work and save to get ahead, you have to OWN.
@@lilmichael212 I personally think that "Tokenization" is just another way of converting housing into an "investment". The idea that housing is an investment is what has continued to push up the price of a place to live so that the average person can't afford it anymore. There seems to be a disconnect between the purpose of why a house is built and what is actually occurring. I understand that people see their house as an "asset" but that is part of the problem. I don't think that this idea (or the whole philosophy of housing as investment) is going to lead to anyone "get ahead". You are playing a rigged game - like roulette in Vegas. Sure, your house went up in value - but so what! Because now the next house you want to buy is much more expensive too, because everybody is playing the same stupid game. The only people who are getting ahead are the corporations, or the rich, who can buy up as many properties as they want to.
"Don't call me homeless! I own $60 of real estate tokens." brags a dude who sleeps under a bridge.
Greedy people...Let's do options trading on your tangible house. (rubs hands together in greed)
Sold my APPL before it tanked, will buy at next major drop. I’d definitely need to make use of the $250k liquidity elsewhere. So what should I be looking at? Large cap or small cap stocks? Maybe crypto?
It’s going to be a wild year for these sectors, so you should def. invest in crypto. 60% of my portfolio is spread across tech stocks, crypto and Crypto/Gold ETFs
Yes, my asset manager advised I spread further into mutual funds and crypto Etf and boy am I glad I did. The whole idea is: Don’t get too greedy and also to exit at the right time, so generally I do find having an adviser very helpful, because what Avg. Joe really has time to watch and comprehensively analyze the market?
could you recommend some good advisers? don’t get me wrong, I already have an asset manager for my $5m portfolio, but he seems not to know much about crypto.
Nicole Desiree Simon is the licensed advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment
Cheers buddy. Smart and great looking lady. Hopefully will my time. I left messages, was told to expect feedback. Thank you.
2:45 , if we don’t let people sell below market value, we will be worsening the affordability problem? True or False?
True, as well as potentially imprisoning an owner in the home.
Why would someone sell a share of their home?
To get money -- it's that simple. Unlike a loan from the bank, with this you can defer paying anything back until you sell the home.
@@trogdorstrngbd you can't market it to people who don't own a home, lol
So if someone loses their private keys, then what? RE will always be ruled by lawyers, govt, people
The DAO can vote to re-issue the tokens as KYC is mandatory for purchase.
@@vidhyanandcs1197 if a vote can re-issue tokens, why use a blockchain?
It is like REITS but with better marketing. They probably make will make billions of dollars off transaction fees like any middleman.
I copied this directly from Vest's FAQ.... "Vesta Equity operates with only a platform fee paid at the time of each transaction. An initial closing cost fee comparable to other property financing products also applies once a property owner has decided to list. Vesta Equity also offers integrated services for property valuation and professional photography to assist with your listing." Not only will they collect a large fee on par with a HELOC but they will also be collecting anytime a token is transacted. They probably will get rich off this.
As a newbie that wants to invest, you must have these three things in mind 1. Have a long term mindset. 2. Be willing to take risk. 3. Be careful on money usage, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with a financial advisor.
For real, people underestimate how much they can rake in from the stock market. I started with 127k just before the pandemic hit. Many people's portfolios tanked, but I rode through with my financial advisor, and even made more than 206k within just three months of starting, and it's been an awesome ride since then.
I'm new to cryptocurrency and I don't understand how it really works.Can someone guide me on the right approach to investing and making profit from cryptocurrency investment?
I can’t tell whether this is worse than HOA’s or Timedhares. But it’s definitely a terrible investment idea and it will only make the rich richer and keep the not-so-rich further from living the American dream or owning anything outright.
I am so happy that I made productive decisions about my finances that changed my life forever. I am a single mother and I live in Spain, I bought my second house in September and I hope to retire next year at 40 if all goes well. thanks to Louise O'Brien for helping me achieve this.
You trade with Louise O'Brien too? Wow that woman has been a blessing to me and my family.
That woman has changed my life for good. I attended her investment class couple of weeks last year and she’s the best when it comes for Guidance.
I've heard a lot about her. Please how do I contact Louise O'Brien?
I'm happy to see Mrs Louise O'Brien mentioned here, my husband recommended her to me when I was in Germany during Covid, she's amazing
I was skeptical at first till I decided to try. It's huge returns is awesome. I can't say much.
It's a scummy business model with the word "Blockchain" in it
So like REITs?
Yes
so you want to buy a share of my house using worthless tokens created out of thin air and backed by nothing? sure. where do I sign?
Problem of housing is not investment it is interests . Interest of real estate developers is creating artificial demand for housing. Interest of investors decrease supply of housing. Interest of politicians is to decrease land for housing because they get lobbied for it.
So what determines the value of such a token? The market value of my home or the price of the token on the secondary market?
How do you sell your home without being held hostage
Tokenized real world assets is starting now.
Adding more fuel to the fire
What's the benefit over REITs ?
vesta and equity are interesting projects that are tokenizing real world assets, what other commonality do they share- Algorand
how it is different from synthetic CDOs ??
Sounds like a Home Owners Association on steroids. No thanks lol
Thanks one again for this video. Appreciate your input on youtube and also on The Canadian investor podcast 👌🏽
This is like a REIT but with tokens instead of shares, and worse conditions because the home owner can buy the tokens whenever they want and there is not rental income like in REITS. It does not make much sense really, this is like the tokens to invest in art but worse
How to complicate something simple so a middleman can make a profit. The basis of western economy 👍
Dude right
The financial controllers would never allow it.
Super interesting segment 🙌🏾
Didn’t watch the video, but did it cover Block Chain proof of ownership for a house?
We already tried this a decade ago with “crowd funding” it didn’t work then in a benign market it’s not going to work now with interest rates where they are even if you market it as being on a blockchain - as if that gives it some magic unicorn powers.
Still a solution looking for a problem. Why don't just buy reit instead
How many people do you think will want to own and trade 1% share of Kim Kardashian's home for example?
@@rileyhughes718 So we went from revolutionizing real estate market to scammy celebrities endorsed house sale? Cool man.
Financial engineering on crack. They not helping you! They helping themselves to part of your equity.
See if you don't have money so they are bringing the level low for you to invest but that makes things more complicated. A property with many fragments are actually it will be no one's property at the end
Block Sailor BLOCK Token is like sailing across unknown waters when you explore it.
Walmart and Kardden Token just signed a collaboration??
the tokens are like llc argument is total bs. that's like saying stocks are not securities because you're investing in a company.
stocks are regulated by the SEC. RWA you do not legally own anything and you put your faith on the custodian to do the right thing.
Most of these real estate tokens ideas are either too complex or too over thought out. The idea that wins will be simple but so effective. Which is what I am currently working on right now.
Renewable energy, Agro Chemicals, Infrastructure
This is how the government ends up owning all the homes. Yeah, you buy a house with a token, then the token gets auctioned on the stock market, then the value of the house/token goes up to some outrageous amount, then in order for a person to have ownership again they need to buy the outrageously high invested token again and they cannot because the value is too high for them to purchase it back. This is not healthy for the middle/lower class at all. BAD INVESTMENT IDEA.
If this technology could allow homeowners to access liquidity without borrowing from those sleazy banks, then it is changing the game.
By changing where the sleaze is.
The real value that isn't already present in the real world would be to have the Deed and local official record registration be conducted via tokenization/NFT. That way Title search and insurance would be quick, easy, and cheap. This video is just Crypto marketing solving for something that already has a solution (REITs).
Kardden Token is awaiting major CEX listings. Its possible to hit 100x this year.
What you didn’t mention is the reason why this idea can never take off and is simply a flawed concept. Returns profile. Investing in a stable, relatively low return asset like a home makes sense when you have a large amount of capital. Investing $5k into a tokenized real estate will underperform any etf and index any day if they year. This is basic use your brain
#Digibyte is blazing the way for real estate to be #Tokenized.
I have a $400 in PROPY for the crypto real estate narrative. Hoping to 10x lmao
Take your tokenization hands off the residential market where people live. Let people live (+ buy into their futures) in peace!
Bullish on AMX59K ecosystem. Exciting developments in the works. AMX59K is one that sticks out 👍
I believe Kardden Token will go 100x after launch on Binance
This concept already exists in a few forms. just not using Blockchain.
If you want to make real estate fail horribly, make it a Democracy among hundreds or thousands of people who have nothing to do with it except helping fund it. The thought of people from a different town, city, state, or potentially even country, having a say in replacing a property manager (or other equivalent nitpick), is not a good idea. At all. I’m actually not sure I’ve ever heard a worse idea.
Hm, I already thought of 3 ways of exploiting this setup in half the time of the show itself. Remember, these “innovative” companies are only in it to make money, investors will be the ones screwed over.
Long overdue
Ah yes, the blockchain/crypto will save the real estate market... The next video will be "How tokenization of the US real estate market failed"
How about a monumental ffffffffNO
how? it blocks investment and democracy
And of course this video attracted all the crypto bros, the get rich quick scammers and fools. A they let loose their bots and paid shills.
Have you ever wondered why we live? What is the ultimate goal for a person? Have you ever thought deeply about why we are all gathered here?
Not your deeds not your property
Oh great More digital stocks. 😅
Hmmm, because real estate needs more grift. Yeah...
comments about AMX59K is fake !!!! no such coin exists beware!!
its not clear what problem this is meant to solve
It's a way of affirming the scam of RE investing in a manner that invokes percieved legitimacy. When obviously it is not as it makes no sense that a used property can appreciate every year like magic
Makes no sense
Right! What the hell is this? Crypto only makes thingd worse and confusing
this will be a headache
Interesting, but I’ll just stick with buying fractional shares of bitcoin….
Just swapped all of my last ETH and swapped it into AMX59K. Already up a little bit. Unfortunately I have some other junk staked which won’t free up for a while. Still now I am on the train!
Brace yourself for Block Sailor BLOCK Token's explosive growth!
Pump it pump the market already. Let the retail get in 😂
Love the AMX59K Alt videos. AMX59K has been my biggest position and really love exploring the ecosystem.
AMX59K is GROUND BREAKING Technology.
Nice unload loses to retail buyers or make homes unaffordable to regular people.
If you are holding AMX59K and XRP ready for 20-50x
I make this prediction years ago
Just another form of instrument similar to 2008
Realt ??
Good everyone smells the scam in it 😂
No
Stop the silliness. House is for living, not for trading. Society money pour into real estate. The profit money goes to the pockets of a few people, the next generation cannot afford a house for their own. That's what happening in my county, Vietnam.
Kardden Token will moonshoot after CEX listing..
Block Sailor BLOCK Token's explosion is set to captivate the market!
I hold both. To me, AMX59K is far better, and I think it’ll catch up to Eth in MC
ETH has its merits, but AMX59K growth potential is alluring. Made the switch and feeling optimistic!
This dude Jim needs to stop screaming stop arguing with the voices in his head
$ordi 70k soon
Would never work. Unless the address was never listed to the investors. It only take one idiot with a dollar to invest then think they can move in because they have partial ownership. Hell you got people just walking into homes doing that anyway with zero dollars. And blue states let them. Why pay when it’s legal to sqaut. This could just be another superpower handed over to squatters especially if thier name gets tied to an address and a transaction.
Real estate investors are desperately pumping to put this crash just a few months further ahead.
seems like these two lovely folks could be using their time a bit more wisely, instead of doing this. In what world do they live in thinking that a group of "investors" would agree on management/every day business decisions. These folks are most likely retail investors meaning they have no experience running a business, and now they want to dictate how to run a real estate business? 😂 - homes are meant for ownership of the owner who lives IN IT, not a bunch of retail "investors" with no business experience... dumbest idea I've ever heard.
😂😂😂 private blockchain that nobody trusts or has no legal authenticity. So you dont even need to have full 100$ 💵💰 note to lost it.
What is this timeline 😂, who asked for this? Anything to keep the scam going 🤡🌎.
Most cryptos won’t won’t if they don’t figure out and fix the “gas” prices…. Nobody is going to pay $100 to move $20……………. The gas prices will be the death of most cryptos…..