What Are the Benefits of Tokenized Real Estate?

1. Finding the right property in the right location for the right price (that fits the investors’ personal financial strategy)
2. Securing the right mortgage with a bank that will result in a financing contract
3. Negotiating the purchase price with the owner that will result in a (preliminary) purchase contract
4. Notary meeting to sign the purchase contract & change the German land registry
5. Buyer pays all bills for the notary (2%), purchase taxes to Finanzamt (3,5% – 6,5%), and real estate agent (3,57% – 7,14%)

The entire traditional property purchase process as shown above is taking weeks or months of work and costs anything from 5,5% – 15,64% in closing costs on top of the property value. That is anything from 5.500€ up to 15.640€ for every 100.000€ of property value that is being transferred from the seller to the buyer (not for REITs or real estate ETFs).

The fundamental idea of Bitcoin was to transfer money (across international borders) without a bank in the middle. Tokenizing real estate with security tokens is bringing the Bitcoin idea to a whole new level as it allows people to transfer ownership of properties without middlemen, therefore saving a lot of time and money while increasing returns for investors.

Investors can register on GermanReal.Estate and after the one-time identification process and setting up the wallet, they are immediately the “owner” of properties in Germany (indirectly through security tokens). The real-world owner of every property listed on the GermanReal.Estate marketplace is a special purpose vehicle – short SPV in English (GmbH in German).