Investors have ample opportunities in the real estate sector, even with economic uncertainty. Zillow states that the US home value is up 18.2% annually. 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. Houses are now being sold at an even higher rate than ever before in the past 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, an online tokenized estate platform, is already selling tokenized properties to more than 30 international investors through its first ever real estate sale on Binance Smart Chain. They now plan to offer house flipping to everyone with Tokenized House Flipping.
What exactly is house flipping?
A house flipper is an investor who buys property and then renovates the home to make 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.
The perfect investment for short term investors is house flipping. It offers a large lump sum return and can be done in very short periods of time. It can take anywhere between a few months and a year depending on how large the project is.
Traditional barriers to entry
House flipping is a lucrative business, but it can prove difficult for most people to take on. Potential flippers must not only pay a high price for a home, but also have to manage the complex process of choosing a property and budgeting to make repairs.
Not only is it a headache, but managing contractors can have a significant impact on your bottom line. While it is cheaper to hire contractors, renovating your house takes a lot of work and time. It is costly, complicated and could result in financial loss.
Landshare brings house flipping to the Blockchain
By leveraging the power of blockchain technology, Landshare’s newest feature offers fix and flip opportunities with none of the traditional hassles or barriers. Tokenized House Flipping is a fractional investment that allows you to buy a whole property, and then perform the renovations. Landshare Team takes care of the selling and renovation.
Tokenization is the underlying technology that underpins this feature. This refers to creating tokens on blockchain which represent ownership of real world assets. Landshare previously utilized this method to provide fractional investment opportunities in rental properties. They are now applying the tried-and-true fix-and-flip method to their first tokenized fix-and-flip.
Here’s a short summary of the Tokenized House Flipping process.
- Landshare is a legal entity that allows for property ownership and renovation. Tokens are used to convert ownership units.
- KYC-verified Investors may sell a small number of tokens to cover renovation costs.
- Landshare will list the property for sale after renovations have been completed.
- Tokenholders can get their house flipping tokens back when the property has been sold.
The Landshare Ecosystem now offers tokenized house flipping, as well as investment opportunities in real estate NFTs and rental properties. 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: The Securities Act of 1933 has not registered House Flipping Tokens and they will not. The Securities can only be offered to non-US citizens in accordance with the SEC Final Rule offshore Offers and Sales Regulation S. Further restrictions could apply. See the website to learn more.