Landshare Brings the First Tokenized House Flip to the Blockchain

Despite economic uncertainty, the real estate market continues to offer rich opportunities for investors. According to Zillow, home values ​​in the US are up 18.2% year-on-year. Compare this to the S&P 500 and NASDAQ Composite – down 16.7% and 25% respectively – and it becomes clear that real estate is holding up far better than most other assets.

Investors have taken notice and the demand for real estate has never been higher – especially for real estate and flips. In fact, houses are being flipped at a higher rate than at any time in the last 20 years. And for good reason – according to ATTOM, the average house flip yields a gross profit of $67,000 and an ROI of 26%.

Landshare, a tokenized real estate platform on the Binance Smart Chain, has already sold tokenized real estate to investors from over 30 countries around the world via the first ever real estate offering on the Binance Smart Chain. Now they intend to bring house flipping to the masses with their new feature, Tokenized House Flipping.

What is House Flipping?

House flipping is when an investor buys a property, carries out renovations and then resells it at a profit. When done right, home renovations add more value to the home than they cost to carry out – for example, a fresh coat of paint and new flooring are inexpensive, but can make a run-down room look brand new.

House flipping is the perfect solution for short-term investors, as it provides a one-off return in a relatively short time. The process usually takes anywhere from a few months to a year, depending on the scope of the project.

Traditional barriers to entry

Despite being highly lucrative, house flipping can be difficult or impossible for the average person to get involved with. In addition to the high cost of buying a property, potential flippers will also have to navigate the complicated process of selecting a property, budgeting for repairs and getting the renovation done in a cost-effective manner.

Hiring and managing contractors is not only a hassle, but also cuts significantly into the bottom line and can result in a negative return. Investors who choose to do all the work themselves will save money, but renovating a house requires specialized skills and a large investment of time. Simply put, the process is expensive and complicated, and can result in losses if done incorrectly.

Landshare Brings House Flipping to Blockchain

By harnessing the power of blockchain technology, Landshare’s newest feature offers fix and flip capabilities without any of the traditional issues or barriers. Instead of buying an entire property and doing the renovation themselves, Tokenized House Flipping allows anyone to invest fractional shares with other investors around the world, while the Landshare team handles the renovation and sales process.

The underlying technology behind this new feature is called tokenization, which refers to the creation of tokens on the blockchain that represent ownership of real-world assets. Landshare has previously used this process to offer fractional investments in rental properties. Now they are applying this proven method to the first ever tokenized repair and turnaround.

For a quick summary of how the Tokenized House Flipping process will work, here is a step-by-step overview:

1. Landshare creates a new legal entity that is responsible for ownership, renovation and sale of the property. The ownership units of this unit are converted into tokens.
2. A limited number of tokens are sold to KYC verified investors to help cover the renovation costs of the property.
3. After the renovation is complete, the Landshare team puts the property up for sale on the open market.
4. Once the property is sold, token holders can redeem their House Flipping Tokens for their share of the sale proceeds.

Conclusion

Tokenized House Flipping is the latest feature coming to the Landshare Ecosystem, which also includes investment opportunities in rental properties, real estate NFTs and a full suite of DeFi features. This new feature expands Landshare’s roster by introducing short-term investment opportunities in real estate, a first for Binance Smart Chain and the blockchain sector as a whole.

Disclaimer: The House Flipping Tokens have not been, and will not be, registered under the Securities Act of 1933. Accordingly, the securities are being offered and sold only to non-US residents in accordance with the SEC Final Rule Offshore Offers and Sales (Regulation S). Additional restrictions may apply, see the website for more information.