Tokenized Real Estate Basics

Tokenized real estate turns property exposure into compliant, fractional tokens.

At a high level:

1. An SPV holds the asset and issues tokens that represent exposure.
2. Disclosures and transfer restrictions define who can buy and how settlement works.
3. Income is distributed on a schedule; liquidity may be provided via secondary venues or transfer agents.

What to check before allocating:

• Read offering docs and fee schedules; optimize for net yield after all costs.
• Confirm eligibility, KYC/AML flow, and any holding period restrictions.
• Review venue depth and expected liquidity; plan for conservative exit assumptions.

Practical approach:

• Start with small positions across several properties.
• Track distributions, fees, and net yield over time.
• Document thesis, risk, and exit criteria; rebalance on a fixed cadence.

Done well, tokenization can provide property‑linked yield with transparent settlement. Keep discipline and avoid chasing headline APYs without context.