CapitalTech’s Real Estate Liquidity Token program allows you to sell a portion of your real estate asset, in the form of a digital token on a blockchain. These tokens can be sold to investors, providing them with a share of the property’s income and potential appreciation, similar to owning a traditional real estate asset.

They typically work like this:

1. Tokenization: The real estate asset is tokenized, meaning its ownership is represented by digital tokens on a blockchain. These tokens are then offered for sale to investors.

2. Sale of Tokens: Investors purchase the tokens, effectively buying a portion of the property. The seller receives funds from the sale of these tokens, providing them with liquidity.

3. Leaseback Agreement: After selling the tokens, the seller enters into a leaseback agreement with the new token holders. This agreement allows the seller to continue using the property by paying rent to the token holders.

4. Token Holder Benefits: Token holders receive rental income from the leaseback arrangement, providing them with a return on their investment. They may also benefit from any potential appreciation in the property’s value.

4. Property Management: While the property is leased back to the seller, the token holders typically do not need to manage the property directly. The seller remains responsible for maintaining and managing the property during the leaseback period.

Overall, this arrangement provides the seller with immediate liquidity while allowing them to continue using the property. It also offers investors an opportunity to invest in real estate without the need for large amounts of capital or the hassles of property management.