If you are familiar with our Tokenized Asset offerings in the past, the Tokenized House Flipping feature will be familiar to you. Fundamentally, both of these features involve the tokenization and fractionalization of real estate assets. If you’d like to learn more about this process, check out our Tokenized Asset blog post.
For a quick summary of how the Tokenized House Flip will look, here is a step-by-step breakdown:
Landshare creates a new legal entity responsible for the ownership, renovation, and sale of the property. The ownership units of this entity are converted to tokens.
A limited number of tokens are sold to investors to help cover the renovation costs of the property.
After the renovation is complete, the Landshare team puts the property up for sale on the open market.
When the property is sold, token holders can redeem their House Flipping Tokens for their share of the sale proceeds through the Token’s redemption feature.