You’ve probably heard about cryptocurrency and maybe even crypto real estate, but what exactly are real estate investment tokens? They’re an innovative new approach to profiting through real estate without ever having to own the property directly. Learn about the pros and cons of traditional real estate investing versus real estate investment tokens (REITs) one of the hottest new crypto assets.
**What is a Real Estate Investment Token?**
Real estate investment tokens are digital assets that are tied to profits from income-producing real estate. Real estate investment tokens have similarities to a real estate investment trust, which owns, and in most cases operates, income-producing real estate. In both cases, buyers can access a pool of properties and earn revenue from those properties without having to worry about actually owning or managing them.
**What are the advantages to a Real Estate Investment Token versus traditional real estate investing?**
Real estate investment tokens are ideal for investors who want to own their share of real estate profits, without having to be actively involved in investing. Investors can purchase real estate investment tokens such as Homerun Tokens and then receive staking rewards from the rental profits, like traditional real estate investments, but they have minimal risk because you aren’t actually going out and buying real estate, renovating it, renting it, repairing it and the inherent risks they come with. Instead, each token can be staked for your portion of rental profits and its liquid, whereas traditional real estate is probably one of the least liquid investments you can hold.
**What is Homerun Token?**
Homerun Token is a multi-chain real estate investment token with staking rewards & reflections. It allows holders to earn passive income based on their holdings. This is done by staking HMRN tokens to generate rewards from the rental profits. Staking HMRN tokens is a powerful way of incentivizing investors to hold on to their crypto holdings. In return for doing so, these investors receive staking rewards proportional to their holdings from the rental profits.
The Homerun Token also has a 2% reflection from every transaction that is redistributed to all the holders simply for holding the token. Unlike staking, there is nothing you need to do to claim these rewards, other than hold a minimum balance of 100 tokens. The reflections are sent automatically to the wallet holding the HMRN tokens.
There is not a right or wrong answer when it comes to real estate investment tokens versus traditional real estate investments. It comes down to your level of risk and how much you want to be involved. Do your research, consult a professional, and make an informed decision that fits your investing style. If you are already invested into crypto, real estate investment tokens offer a great hedge against a bear market or crypto winter.