While conventional perceptions surrounding blockchain technology always revert to cryptocurrency, blockchain solutions can streamline several economic sectors, including real estate.
Often hailed as an inflation hedge, real estate is generally considered one of the safer investment options. Unfortunately for many, the investment safety net provided by real estate often comes with significant barriers to entry, namely: time and capital.
Fortunately, AIRISADVISORY offers clients the ability to leverage blockchain technology through real estate tokenization, significantly reducing traditional barriers to the real estate markets. Similar to fractional ownership models in the equities markets, real estate tokenization allows investors to procure digital tokens representing a controlling interest in real property. These digital tokens are used to raise development capital, opening the doors to a broader range of developers, investors, and other stakeholders to take advantage of the real estate market.
Real estate tokens can operate either through an equity model, securing joint property ownership, or as a debt asset, digitizing any rents or payments collected on a property. The process is relatively straightforward given all the initial parameters are met: a property owner can choose to tokenize real estate.
Real estate tokens can operate either through an equity model, securing joint property ownership, or as a debt asset, digitizing any rents or payments collected on a property. The process is relatively straightforward given all the initial parameters are met: a property owner can choose to tokenize a real estate asset through a Security Token Offering (STO), leasing it to a retail chain. Once the regulatory permits and documentation process is complete, the tokens are released to interested parties, with each token corresponding to a predetermined ownership stake in the property.
The benefits of real estate tokenization primarily come down to cost and efficiency. The lower capital entry requirements allow for a broader and more diversified ownership pool, accelerating the transactional process and eliminating many of the traditional costs associated with real estate transactions. Since the transactions occur in the blockchain, security is enhanced as the investment is digitally assigned to each investor. This digital assignment also creates more flexibility for the owner, as they can sell their equity shares (tokens) much like they would a traditional stock.
AIRISCAPITAL was built on transparency and trust. See below to learn about our step-by-step processes for the digital securities tokenization process.
Generate retainer agreement ratify & sign off.
Process retainer via EFT, wire, or credit card.
Open project file, assign AIRIS Team Resources, and establish client portal.
Perform automated "Know Your Customer" and "Anti Money Laundering" for compliance and audit.
The AIRISIndex is a proprietary KPI which measures the client-suitability to raise capital through digital securities.
Gather business plan, financial statements, annual reports, MLS listings, appraisal reports, MPAC reports, tax roll data, surveys, geotechnical studies, environmental 1 & 2 studies, rent rolls, permit and construction drawings, marketing collateral, land titles, geo warehouse, polaris reports, and municipal zoning bylaws.
HBDI© completed by all stakeholders.
Shadowing key executives and stakeholders, understanding and documenting roles and responsibilities.
Document manual and automated business processes and optimize for redundancies.
Review existing business plan, identify strengths, weaknesses, opportunities, and threats known as S.W.O.T. analyses.
Conflict / IP / USTPO.
Tokenomics refer to a series of attributes which signal quality and perceived value of a digital security ultimately determining the buy/no-buy decision.
Comparative Market Analysis.
Methodology for determining the value of expected future cashflows.
Proprietary technology and methodology used to curate the most suitable target assets and development projects.
AIRIS Solutions Road Map is a client centric document specific to the engagement which defines and governs the milestones, deliverables, constraints, & timeline necessary to achieve a successful raise.
Multi-disciplinary panel audits each project's risk parameters and suitability for engagement and probability of success.
Issuer Engagement Contract.
Master Service Agreement.
SOWs are created for each milestone and reference the Master Service Agreement.
Compile the contract package consisting of the IEC/MSA/SOWs/ASRM and all other relevant exhibits to submit for execution.
Conduct a meeting to secure buy-in from all Stakeholders and officially launch the project.
Streamline the registration process by compiling, auditing, and publishing the offering on the ADSP (AIRIS Digital Securities Platform).
Multi-disciplinary panel reviews the offering and ensures compliance with Securities Regulators.
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.
IBME (Intelligent Broker Matching Engine) automatically matches offerings to brokers on our Exchanges using parameters specific to investor preferences.
Pitch opportunity To EMDs, Brokers, Accredited Investors.
Pitch opportunity to Qualified Investors.
Pitch opportunity to General Public (Crowdfunding).
Extensive review of the completed raise and identifying potential areas of improvement.
Publish findings/lessons learned as AIRIS Knowledge Base articles.
Prepare the Statement Of Adjustments and the irrevocable Direction Of Funds.
Tokenization is the future of investing, and AIRISCAPITAL has been a pioneer at the forefront of this revolution. Our trusted advisors can manage every step of the process, from retaining funds, navigating regulations, generating contracts, and delivering your payments.
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