Real estate is the world's largest asset class. The disruptive influence of blockchain solutions development on retail and commercial property sales, payments, and access to real estate capital and investment opportunities is being recognized by commercial organizations and real estate experts.
Use blockchain to take advantage of the possibilities offered by real estate digital assets. With blockchain for real estate solutions, develop new business models, improve real estate's core operations, cut expenses, eliminate data silos, and improve transparency.
Using Blockchain to Transform Real Estate
Manage Real Estate Investments Efficiently
Challenge
To offset investor onboarding and subscription maintenance costs, asset management businesses require rather large minimum investment amounts. Smaller investors are discouraged from participating, and the capital building is slowed.
Solution
Asset managers can use blockchain to simplify digital asset management, portfolio governance, and investor communications. Customizable asset issuance, regulatory compliance, quicker onboarding, and direct asset distribution are all possible with us. This saves time and money, allowing businesses to lower their minimum membership quantities.
Rapid customized issuance also provides for the more accurate fulfillment of investor needs, lowering counterparty risk and increasing liquidity possibilities.
Also, Read | Most Significant Use Cases of Blockchain in Real Estate
Alternate Property Development Finance Solutions
Challenge
Property development companies are having difficulty acquiring funds for new projects. Working with a single credit source has high-interest rates, while crowdfunding and loan syndication is tough to manage.
Solution
Blockchain facilitates a direct connection between many parties in the financing value chain, making alternative financing methods more accessible. Secure permissioned sharing of data and documents enables transparency in the finance and loan syndication process. It helps developers manage their investors more efficiently and provides investment transparency and constant ROI tracking.
Also, Read | Implementing Blockchain Smart Contracts in Real Estate
Securitize Loans and Mortgages in a New Way
Challenge
With non-standardized paper-based processes, loan and mortgage approvals remain time-consuming and insecure. Decisions are frequently made based on obsolete data, and cash reconciliations frequently result in settlement delays, affecting investor cash flows.
Solution
Banking organizations can benefit from blockchain because it provides a single version of verified data, safe data sharing, immutable transaction monitoring, and real-time payment settlement. To support asset servicing choices, we turn a loan into digital security that includes essential data such as ownership rights and loan payment history.
Smart contracts are used to collect and distribute payments to beneficiaries and provide real-time reporting to authorities. This makes loan or mortgage lifecycle management considerably more efficient. Furthermore, precise verification of asset performance boosts secondary market confidence.
Also, Read | Blockchain Smart Contracts in Real Estate: A Long-Awaited Breakthrough
Smart property management
Challenge
The oversight of large-scale property management corporations' global portfolios is inefficient.
Solution
Blockchain allows for secure data sharing, accelerates rental collections and payments to property owners, and improves portfolio due diligence.
This improves operating efficiencies, lowers overhead costs, and generates significantly more data to help with decision-making.
Also, Read | How Blockchain Simplifies The Real Estate Investing
Security, efficiency, and transparency of land registries
Challenge
Paper documentation is still used for land titles, making them prone to lose, fraud, and mismanagement. Furthermore, property transfers and permissions necessitate a slew of time-consuming and costly legal procedures, which can keep land from being put to productive use.
Solution
Blockchain simplifies legacy systems by providing a secure and immutable digital registry that includes document authentication and transaction transparency. Investor confidence is boosted through trusted asset title and documentation systems, which help to streamline market transactions, increase access to capital, and promote economic and social community development.
Involve urban real estate planning
Challenge
In terms of urban planning, there is a lack of confidence among the local people. Only 2% of the public trust property developers, and only 7% trust local governments to prepare for large-scale growth, according to a 2019 survey by Grosvenor Group.
Solution
Educational resources, token-based participation incentives, and a feedback loop between stakeholders are all possible features of blockchain-based planning platforms. This can help to incorporate local communities into the property development value chain, increasing their trust in you and allowing you to improve your services for long-term success.
Also, Read | How Blockchain Can Influence Real Estate Investing
Enhanced development and construction productivity
Challenge
Larger construction projects have grown more challenging to manage due to a lack of supply chain transparency and fractured subcontracting and procurement methods.
Solution
Blockchain technologies make procurement easier, automate contract management, ensure product quality, and make project management more efficient. Complete project lifecycle management reduces construction delays while also increasing transparency and facilitating audit trails for real-time reporting.
Identity management of Investors and Tenants
Digital identities based on the blockchain can be useful in a variety of businesses, consumer applications, and the public sector. Basically, tenant and investor identities obtained through blockchain-based KYC/AML procedures can speed up background checks, lower expenses, and improve security.
Decentralized identities make it possible for anybody to establish property ownership while also making important documents (proof of insurance, identification, and credit history) easily shareable with the right people.
Also, Read | Automated, Secure Real-Estate Settlement via Smart Contracts
Payments and leasing
Thanks to distributed ledger's, on-chain recording can accommodate lease signing and their payments. Consequently, it eliminates the need for manual reconciliations and automates payments to property owners for rent and dividends. Additionally, smart contracts can also automate other forms of payments and fees to reward tenants, landlords, and service providers for good behavior.
Real-time accounting
Investors and asset owners gain benefits from automatic and near-immediate accounting due to on-chain recording of property ownership and financial flows. Essentially, annual financial statements, such as the balance sheet, statement of cash flows, and income statement, can be prepared in the future with the possibility of real-time audits. Thus, multiple improvements in compliance, regulatory supervision, and investor relations are possible.
Oodles' expertise in deploying blockchain in commercial real estate gives an opportunity to grow your business by addressing the industry's primary challenges as technology evolves. Contact our blockchain development experts for more information.