How to Invest in Tokenized Real Estate on RedSwan CRE
If you’re looking for an investment opportunity, tokenized real estate is the deal. It isn’t just the future of real estate investing, investors are now enjoying the advantages of owning fractions of real estate at an acceptable price and without paying hefty middlemen charges.
In this issue, we’ll guide you through the steps to invest in tokenized real estate on RedSwan CRE. And if you’re just hearing about us, RedSwan CRE is a marketplace and an exchange for buying and selling fractions of valuable commercial real estate properties all around the globe.
So without further ado, let’s dive in.
Steps to Investing in Tokenized Real Estate on RedSwan
Step 1: Sign up
When you land on our homepage, you’ll see two large buttons at the top labeled “Login” and “Sign up and Express Interest”. Click the latter to initiate the signup process as a new user.
This will then open a window for you to sign up using your email or Google. Keep in mind that signing up using Google will require you to input more details, so sign up using your email.
Step 2: Registration
After clicking Sign Up, it’ll bring up another window for you to register your details. Ensure you input the right details, especially your mobile phone number.
Step 3: Verification
After you input your details, a code will be sent to your registered phone number to verify your registration. Also, keep an eye out for a verification email that contains the same code.
Step 4: Fill out the questionnaire
Now you’re registered, you just can’t start investing in our tokenized real estate listings. We’d like to set up your profile and know the kind of investor you are. Go to the top right of your screen and click your profile to get started filling out the questionnaire.
When filling out the questionnaire, select what best represents you – either an individual investor or an institutional one. Individual investors also called retail investors are non-professional investors who invest their own money mostly through brokers and banks, etc. While institutional investors like banks, mutual funds, and insurance companies, invest other people’s money.
If you’re investing from outside the United States, select Regulation S investor. If you selected the individual investor option, ignore the question asking for the kind of institutional investor you are.
You’ll then be presented with the option of choosing the property class you are interested in. Class A properties are new (typically not more than 10 years old), luxurious properties in expensive locations that tenants are willing to pay premium prices for. However, they require a high upfront investment.
Class B properties are older properties with less aesthetic designs like Class A properties. Although they may be between 10 and 30 years old, they still look good and modern enough for middle-income tenants to want them. While Class C properties are much older properties – typically over 30 years old – that may need some renovation.
Step 5: Select the property
Now, you can browse through our marketplace to buy your chosen property. When you find a piece of property you’re interested in, click ‘Buy’. This will then direct you to a page to onboard you as a new investor.
Step 6: Begin the onboarding process
This onboarding process is a crucial part of our KYC process. These measures are put in place to protect our users.
Fill out the form, especially the fields marked ‘Required’. Then click to go to the next page where you’ll upload a few documents. Don’t forget to click ‘Upload Files’ after uploading the documents. Click ‘Next’ to go to the review page where you’ll review your answers before moving on to the last page where you’ll give your consent for RedSwan to verify your identity.
Step 7: Pick a property
Once you become a verified user, you can begin investing in tokenized real estate on RedSwan CRE. Now go back to the list of properties on the marketplace. There are four categories of properties listed on the platform – Coming Soon, Express Interest, Live Sales, and Closed.
When a piece of property first gets listed on our platform, it’s in the Coming Soon stage. This property isn’t ready for investors to buy a share, yet – we do this to gather interest for it. And this leads us to the second stage which is Express Interest where we expect investors to show interest in the property. Once we’re oversubscribed, we then move the property to the third stage which is Live Sales. This is when investors can buy stakes in the property. And finally, we close the sale when we’ve been able to raise the money needed.
We also have a special kind of investment called Fund Share where RedSwan will provide you with support in investing in properties on our platform.
You can only make instant invest in properties labeled Fund Share or Live Sales.
Step 8: Buy a Share of the property
Once you’ve selected your desired property and read the details, click the large red button labeled ‘Buy’. This will lead you to the checkout to make a payment.
Step 9: Checkout
In the checkout, you can make a payment using either your debit card for fiat (USD) payment or your stable coin (USDC) wallet. We’ve made it easy for you to connect your wallet to our platform.
And congrats, you just bought your first property on the RedSwan CRE marketplace. Here are some of the benefits of investing in tokenized real estate on RedSwan.
Benefits of Investing in Tokenized Real Estate
It’s an escape from the bear market
The crypto market has been on a roller coaster since the beginning of the year, with most cryptocurrencies losing 2/3rd their value. So if you had 1 BTC which was around $60,000 at its all-time high last year, that 1 BTC will be worth around $20,000 now.
When you invest in a piece of tokenized real estate property, you can’t be bothered by the crypto crash as the volatility in the crypto market doesn’t affect your investment on our platform. To put this into context, if you’d invested 1 BTC at its all-time high, the value of your stake in the property will still be $60,000. Interestingly, the value would have increased as the value of the property appreciates.
2.Low barrier to entry
Before now, investing in real estate of high quality was reserved for the ultra-rich or institutional investors. RedSwan CRE is challenging the status quo through tokenization, which brings affordability and reduces the barriers of entry. Retail investors are no longer being left out of the party, you can now buy stakes in some of the most valuable properties in multiple countries.
By investing in tokenized real estate on our marketplace, you have access to some of the best properties only the top 1% of Nigerians could dream of buying. The good thing is that you don’t have to empty your bank account to hold a stake in these properties. Simply, buy a fraction of the property at an affordable price. And you can invest in multiple properties at a time without breaking the bank.
3.Cheaper transactions cost
With the power of blockchain technology and smart contracts, RedSwan CRE is cutting out the services of middlemen when buying real estate. Now you can own fractions of a piece of property without paying brokerage, legal, and bank fees to real estate agents, lawyers, and banks.
4.Liquidity in the real estate industry
One of the issues with real estate is its illiquid nature – this is now a thing of the past. As you can trade your stake through our secondary market to get liquid as you do with stocks.
Investing in real estate properties listed on our marketplace isn’t rocket science. Simply follow the steps outlined in this article and start reaping the benefits of hedging your wealth against inflation by investing in choice properties listed in Nigeria and United States. Sign up to get started.