YieldBricks vs Traditional real estate investment

Imagine being able to invest in real estate with just a few clicks, without needing a fortune upfront or waiting months to sell your investment. This is now possible thanks to blockchain technology, which is revolutionizing many industries, including real estate.

Traditional real estate investments are expensive and hard to sell quickly, but tokenization — turning real estate into digital tokens — is changing the game. This innovative approach allows people to own a fraction of a property, enhances liquidity, and makes transactions transparent. YieldBricks is at the forefront of this revolution, offering a fresh and accessible way to invest in real estate.

Challenges in traditional real estate investment

Traditional real estate investment presents several barriers that can discourage both new and seasoned investors. Let’s explore these challenges in detail:

High entry costs

One of traditional real estate’s most significant limitations is the high initial capital required. This substantial financial cost places many profitable opportunities beyond the reach of the average retail investor and limits their ability to diversify portfolios with premium real estate investments.

For example, it is nearly impossible for a single mother in search of passive income to invest in real estate — typically, at least $50,000 is needed for the initial investment.

Liquidity issues

In traditional real estate, selling a property quickly at market value is hard. This lack of liquidity makes it challenging for investors to withdraw their money when needed, especially during volatile market conditions.

Unequal access to information

Transparency, or rather the lack of it, poses another significant challenge. Traditional real estate transactions are often complex and important details like property values and histories can be hidden. This lack of information usually benefits insiders and puts new or smaller investors at a disadvantage

These problems have kept many people from accessing good real estate investments, leaving most opportunities to wealthy individuals and big institutions.

The impact of blockchain on real estate

Tokenization addresses many of the problems associated with traditional real estate investing. By moving assets on-chain, blockchain enhances security, transparency, and liquidity.

Tokenization means turning real estate assets into digital tokens that exist on a blockchain. Each token represents a fraction of the property. This allows investors to buy, sell, and trade small portions of the property easily, much like trading stocks.

Fractional ownership

Tokenization allows for fractional ownership, which means you can own a small part of a property instead of buying the whole thing. This makes it much cheaper to invest in real estate.

Because you can buy and sell these small parts easily, investing becomes simpler and quicker. This means that more people can invest in real estate without needing a lot of money, making the process more efficient and accessible to everyone.

Enhanced liquidity

Blockchain technology facilitates easier and quicker trading of tokenized real estate assets. This increased liquidity allows investors to enter and exit positions smoothly, reducing the risk associated with holding illiquid assets.

For example, imagine you invested in a property via blockchain and suddenly need cash for an emergency. You can sell your share in a matter of minutes and get your money instantly, instead of waiting months to sell the whole property. This quick access to cash makes investing in real estate much more flexible and secure.

Improved transparency

Blockchain ensures transparency by providing a clear and unchangeable record of transactions. This transparency helps level the playing field, giving all investors equal access to information.

For example, if you invest in a property through blockchain, you can see the entire transaction history, property ownership records, and any changes made over time. This means you have all the information you need to make informed decisions, just like any other investor, without worrying about hidden details or unfair advantages.

YieldBricks: Democratizing global RWA yield

RWA stands for real-world assets, such as real estate, which are tokenized and put on the blockchain to create digital representations of these physical assets.

YieldBricks is an RWA tokenization protocol that uses seamless DeFi pools to generate stable, sustainable yield that is accessible to anyone. While most market players focus on institutional investors, YieldBricks has set its sights on retail investors.

Unlike others, YieldBricks doesn’t just sell real estate assets. Instead, we offer opportunities for investors to earn stable returns (or yield) from these tokenized assets. This means that instead of buying property, investors can invest in a pool of assets managed by YieldBricks, and earn regular returns from the income generated by these properties.

Key differences:

1. Focus on retail investors: Unlike other projects targeting institutional investors, YieldBricks prioritizes retail investors and provides them with opportunities typically reserved for high-net-worth individuals.
2. Liquidity and accessibility: We ensure liquidity with our instant swap feature, 24/7 trading, and no lockups. Investors can start with as little as $50, making real estate investments more accessible than ever.
3. Transparent and secure: Our off-chain data verification, audited portfolio, and monitoring dashboard ensure full transparency. Our pools are secured, with assets 100% backed and yield automated by smart contracts.
4. Stable yields: YieldBricks manages assets internally, ensuring stable and sustainable yields for investors.
5. Investor support: We have a tiered system like launchpads, with special VIP channels based on investment levels. Support is provided mainly through Discord and email, ensuring quick and efficient help.

Conclusion

Traditional real estate investments are expensive, hard to sell quickly, and often not transparent. YieldBricks provides a clear, liquid, and accessible alternative. By focusing on retail investors and operating globally, YieldBricks is making real estate investment more inclusive and efficient.

Learn more about the future of property investment with YieldBricks here. Join the community channels on Twitter, Discord, and Telegram and take advantage of the free RWA alpha.