Guide: Investing in Real Estate with Landshare
Landshare offers the ability to invest in real estate on the Binance Smart Chain through a process called tokenization.
Tokenization works by converting the ownership of real world into Asset Tokens. Each Asset Token represents a $50 stake in a property and will increase in value as the property does. For a detailed breakdown of Asset Tokenization, please see our tokenization blog post.
Types of Offerings
Landshare offers two types of real estate offerings — house flips and rental properties.
Rental properties are held indefinitely and allow investors to collect passive rental income each month. Rental properties are great for investors who are looking for a long-term store of value that also provides passive income. If you are ready to sell, you can do so any time using DS Swap or our upcoming OTC buyback program.
House Flips are short term investments that enables investors to earn yields from renovating and selling houses. This feature is designed to incorporate a short-term real estate investment into your portfolio.
Once the house is fully renovated and sold, investors can redeem their tokens to receive a lump-sum payout. To read more about our house flipping offerings you can refer to our Landshare Feature Preview: Tokenized House Flipping article.
How to Invest
Landshare offers a straight-forward alternative to traditional real estate investing. With our tokenized assets, investors are able to invest in real estate assets in a matter of minutes. Getting started is easy — simply follow the few steps below to begin your real estate investing journey.
- Browse available investment opportunities on the Landshare App here.
2. Select the property you would like to invest in. This will take you to a page where you can review a summary of the property, the financial information, and the current status of the offering.
3. After reviewing the property information, you may select “View on Dashboard” to be redirected to our tokenized asset dashboard where you will be able to make your investment.
4. Once you’re at the dashboard, you will need to register an account. Your account will be bound to both your personal identity and wallet address and can be used for all future tokenized asset purchases.
5. After you’ve registered your account, the final step before being able to invest is to complete the KYC. Similar to the account creation, you will only be required to complete the KYC once, and it will allow you eligibility for all future tokenized assets. You can begin the KYC process from the dashboard home page as seen below.
To complete KYC, you will need to submit your name, address, date of birth, and photo ID. Your personal information is not shared with anyone! Please note that certain countries, including the United States, are not eligible to participate at this time. For a full list of ineligible countries, please view the bottom of our homepage at landshare.io.
6. Once your KYC is submitted, the Landshare team will review your submitted credentials and either approve your account or request further documentation. Your KYC will be processed in 1–4 days. If approved, you will receive a confirmation email and are now eligible to make your first investment in our tokenized assets! You can also verify if you are approved on the main dashboard page:
To make your investment, you can either press the “View on Dashboard” button from the offering page of your choice (refer to step 2), or you can simply view all offerings on the dashboard by pressing the “Investment Opportunities” tab on the top of the page to view all offerings.
7. On the investment screen, you will enter the number of Asset Tokens you’d like to purchase. Each Asset Token costs $50 USD.
Asset Token purchases are made in 90% BUSD and 10% LAND. Once you enter the number of tokens you’d like to purchase, the amount of LAND and BUSD needed will be populated.
If you do not currently have enough LAND or BUSD, you can purchase both tokens on the exchanges below:
- BUSD: https://pancakeswap.finance/info/pool/0x468cde4ad48cbafa3cdfb68fd9f2c114ddfe6c08
- LAND: https://pancakeswap.finance/info/pool/0x468cde4ad48cbafa3cdfb68fd9f2c114ddfe6c08
8. Once you have the appropriate amount of BUSD and LAND, you will sign the Security Token Purchase Agreement (STPA). Read the agreement, and sign at the bottom by typing in your first and last name in all caps. Press “Sign the document” to complete the process.
9. On the next scree, you will need to approve LAND and BUSD for trading with the sale contract:
Simply press “Approve” and confirm the transaction in your connected wallet. Once both BUSD and LAND have been approved, the Confirm button the bottom will turn blue:
Pressing the Confirm button will open the pop-up window below:
Pressing the Confirmation button in the pop up will initiate the purchase transaction. You will receive a request from your connected wallet to complete the transaction.
If the purchase was successful, you will see the success screen. The Asset Tokens will now be sent to your wallet, and the process is complete!
After making your investment, you will automatically be sent your Asset Tokens. These Asset Tokens represent your share of ownership in your selected asset. The selected property type will dictate how your investment will earn yields.
By holding asset tokens for our rental properties, you earn a rental payment each month. Just sit back, relax, and let the Landshare team worry about the stress of maintenance and tenant management. Each property will have its own unique date that rental payment will be sent on. To view which day you will receive your monthly rental income, you can check on the property’s page here:
Unlike our rental property asset tokens that are paid monthly, our house flip asset tokens pay out a lump-sum. By holding House Flipping Asset Tokens you will be entitled to a share of the profits that the property nets after renovation and sale. Simply hold your tokens, sit back, and follow the progress of the flip. When it is complete, your tokens will be redeemed for your share of the profits!
Boost your Real Estate Investment
By leveraging the power of the blockchain and DeFi features, there are options to use your asset tokens for other functions as well! These features are offered by the Landshare platform in addition to the yield payouts as described above.
The auto-compounding feature for Landshare’s Tokenized Asset feature allows you to automatically reinvest rental income into new Asset Tokens, automatically increasing your real estate exposure over time. Auto-compounding earns a 5% bonus yield. To read more about our auto-compounding feature you can click here.
Real Estate NFTs
Landshare Real Estate NFTs are stylized 3D NFT models of the real-world properties sold on Landshare’s platform. NFTs are granted to property investors who purchase at least 5 Asset Tokens for a given property during its initial offering. Rewards are earned by staking Asset Tokens and upgrading your NFT in the gamified NFT ecosystem. To read more about our Real Estate NFTs you can click here.
While this guide covered the basics of our Tokenized Assets, Landshare has much more to offer! Review our detailed docs page to get all the information on our platform features.
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