What Are the Risks When Investing in Real Estate Security Tokens?

Investing in real estate security tokens can offer attractive rewards, but it’s crucial to understand the accompanying risks. In this article, we delve into the potential pitfalls and advantages of investing.

Key Takeaways

  • Real estate security tokens provide fixed interest rates and profit shares, offering potential rewards for investors.
  • Legal documents, such as terms and conditions, provide detailed information about the investment, including risks and rewards.
  • We employ risk-mitigating measures, including due diligence processes and debt capital structures, to safeguard investors’ interests.
  • You should take responsibility for protecting your funds, for example by doing research and diversifying your investments.


Investing in real estate has long been considered a sound strategy for building wealth and diversifying one’s investment portfolio. However, with the advent of technology and blockchain innovation, a new avenue has emerged that offers investors the opportunity to participate in real estate through security tokens. These tokens represent fractional ownership of real estate assets and offer a number of benefits including liquidity, transparency, and accessibility.

While the potential benefits of investing in real estate security tokens are enticing, it is important for investors to have a full understanding of the risks involved. In this article, we dive into the world of real estate security tokens and explore the various risks and benefits associated with this investment approach. By gaining insight into these factors, you can make informed decisions and protect your financial interests.

Rewards Of Our Real Estate Securities

Real estate security tokens offer several rewards that appeal to investors. One of the key advantages is the fixed interest rate provided by the issuer. This fixed interest rate serves as regular passive income for investors. For example, our latest property development project, Köhn Quartier Leipzig, offers a fixed interest rate of 12% per year.

It is important to note that the interest rate and payout period can vary between investments. While some investments pay interest annually, others may pay semi-annually or quarterly. We always strive to cater to our investors’ preferences, so we appreciate your feedback on the frequency of interest payouts.

In addition to fixed interest rates, investors can also benefit from profit shares associated with the underlying properties. The profit share depends on the specific property or properties involved in the investment. Existing properties typically distribute profits on a yearly basis, while property development projects, like the investment on Bodensee in Überlingen, pay out profits upon the completion and maturity of the project.

However, it is essential to acknowledge that property development projects may experience delays. Various unforeseen factors can contribute to these delays, such as external circumstances beyond the control of the property developer. To mitigate such risks, each investment has a specified duration, allowing the property developer sufficient time to address any potential delays.

Risks Of Our Real Estate Securities

While exploring the rewards is enticing, it is equally important to understand the risks associated with real estate security tokens. The risks are outlined in the legal documents prepared by our lawyers, which are available on each investment’s website. These documents include the terms and conditions of the real estate investment, issuer information, interest rates, profit shares, property details, and other essential information required by financial regulators. It is crucial for investors to thoroughly review these documents before making any investment decisions.

One key risk that is highlighted in these legal documents is the potential for losing the entire investment. This risk statement may seem alarming, but it is important to recognize that it is a common aspect of investing. In fact, even well-established investment vehicles like ETFs (Exchange-Traded Funds) include similar risk statements. For example, iShares Core DAX ETF, Deca MSCI World ETF, Vanguard FTSE All-World ETF, and many others acknowledge the possibility of financial loss.

It is essential to understand that investing inherently involves risks. No investment is completely immune to the potential for loss. It is precisely because of these risks that investors have the opportunity to earn returns. However, as responsible investors, it is crucial to evaluate these risks and take proactive measures to protect your investments.

How We Minimize Risk For Our Investors

As an investment platform, we have implemented risk-mitigating measures to safeguard our investors’ interests. For instance, we conduct thorough due diligence before offering an investment opportunity. This ensures that only reputable projects with strong potential for success are presented to our investors.

Additionally, our real estate securities are structured as debt capital, providing an added layer of protection. In the event of an issuer’s bankruptcy, our investors would be prioritized for repayment before the property developer receives any funds.

Do you want to benefit from the high fixed interest rates or profit shares of real estate securities? Visit our marketplace now.

How You Can Minimize Risk When Investing

While investment platforms strive to minimize risks, investors also play a vital role in protecting their investments. It is imperative to educate yourself about the investment opportunities before committing to any funds. Take the time to thoroughly research and understand the nature of the investment, including the associated risks and rewards. Ensure that our real estate securities align with your personal financial goals and risk tolerance.

Diversification is another key strategy for managing risks. Rather than investing all your funds in a single investment, consider spreading your investments across different real estate securities. By diversifying your portfolio, you can minimize the impact of potential losses on your overall investment.

Ultimately, the responsibility lies with each individual investor to make informed decisions and protect their financial well-being. While investment platforms strive to provide transparency and risk mitigation measures, it is crucial for you to exercise due diligence and take proactive steps to protect your investments.


In conclusion, investing in real estate security tokens offers potential rewards, such as fixed interest rates and profit shares. However, it is important to recognize the inherent risks involved. By thoroughly reviewing legal documents, conducting due diligence, and diversifying investments, you can make informed decisions and protect your funds.

Remember, investing is a journey that requires careful consideration, research, and ongoing evaluation. By staying informed and proactive, you can navigate the risks and reap the rewards of real estate security token investments.

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