Real estate tokenization involves creating digital shares that represent ownership in real estate assets, allowing for trading on secondary markets. The process includes five stages: deal structuring, digitization for legal compliance, technology selection, distribution and marketing, and providing aftercare support. Effective tokenization requires careful consideration of legal structures, blockchain technology, and investor engagement methods.

1. PROCESSES INVOLVED IN
REAL ESTATE TOKENIZATION
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2. To begin, it is critical to
comprehend what a real estate
token represents. The real estate
token is nothing more than a
digital share. It is entitled to the
same economic rights as any
other share. A real estate
tokenization consulting can
represent collateralized debt
ownership, an equity position in
a legal business, a share of the
deed, or any other type of real
estate asset.

3. Tokenization requires sponsors to take
the necessary procedures to allow
private or public trading of real estate
tokens, or to provide investors the option
of exchanging their shares for tokens of
another organization that has taken
those regulatory steps. Once the
investor's stake is tokenized, it is
digitally stored on a blockchain
and may be traded on
secondary markets.

4. Process
1. Deal Structuring
3. TECHNOLOGY SELECTION
4. DISTRIBUTION AND
MARKETING
5. AFTERCARE
2. DIGITIZATION (LEGAL
STRUCTURE)

5. Stage 1: Deal
Structuring
It is the initial phase in which
numerous criteria such as asset kind,
shareholder type, jurisdiction, and
relevant legislation play a crucial
impact. In general, issuers choose to
tokenize an existing deal to provide
liquidity to existing investors before
raising money to commence fresh
projects. The precise property or
properties to digitize are determined
by the asset's owner.

6. Stage 2: Digitization (Legal
Structure)
During the digitization stage, information
that was previously saved on paper or in
documents is transferred to the
blockchain. This data is encoded in smart
contracts, and security tokens are
distributed. In other words, the
digitalization of real estate necessitates
the creation of a legal wrapper over the
individual property in order to securitize
and form an investment vehicle.

7. Stage 3: Technology Selection
Once the transaction structure or legal framework has been determined, it is time to
make some technical considerations. The four primary choices you must make are as
follows:
- Token / Blockchain Selection - Choose the blockchain on which to record the token, as
well as which data and transfer limitations to include in your real estate token.
- Custody - A secure custody system that can safely store real estate tokens is required.
- Investors' KYC/AML verification is necessary, and digital securities can be sold to
prospective investors.
- Primary / Secondary Market - Where do you want the digital securities to be
presented to prospective investors, either through primary issue or through the top
secondary exchanges?

8. Stage 4: Distribution and
Marketing
This stage focuses on token generation and
distribution. Various payment methods, like
as cryptocurrencies, stable coins, fiat
currencies, and so on, are accepted for
purchasing digital real estate tokens. To hold
the real estate tokens, investors will require a
digital wallet, which is available on both the
web and real estate mobile. These real estate
tokens may be sold to investors in a live
auction.

9. The real estate software
development firm offers further
assistance to investors, such as
mortgage issues, regular
surveillance of all real estate
token holders' activities, the
design of a corporate code, and
dealing with legal difficulties.
We hope you understand all of
the steps involved in tokenizing
a real estate asset.
Stage 5: Aftercare

10. Contact Us
FINLAW CONSULTANCY PVT. LTD.
Email : admin@finlaw.in
Phone : +1800-4198-402 /
+91-9820907711 Website : www.finlaw.in

11. Thank You