FAQ
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What is a tokenized real asset?
A tokenized real asset is the process of representing a real asset or its cash flows as a blockchain token or tokens. This process increases liquidity, streamlines processes, and enables digital ownership.
In Tokenization, an asset is divided into fractions using a smart contract, an automated code stored on a blockchain. Anyone who purchases or owns a token owns a part of the real estate and is entitled to its profits and losses.
What is βRAW Wealthβ?
RAW Wealth is a real-world asset (RWA) tokenization platform. We offer retail investors the opportunity to invest in institutional-quality, rent-yielding real estate by buying small, investable, and tradeable digital tokens that are linked to that real asset.
Our goal with this platform is to open up the world of real estate to more people, making it simpler for anyone to invest in properties, no matter their background, country of residence, or financial status. We're focused on removing the hurdles that make real estate investments complicated such as paperwork, hassles of managing the property, or even checking up on the property physically.
Why should I invest?
Investors should consider investing in tokenized real estate for "Stable Cash Flows" and incremental growth. In the case of pre-leased commercial properties, long-term corporate lease contracts provide stable monthly cash flows that can help you generate an alternative income stream.
a) Capital Preservation β underlying real-world asset ownership enables you to preserve your capital investment in a tangible form.
b) Superior Returns β Attractive entry yields compounded with annual rental escalation and potential capital appreciation can lead to 14%+ annualized returns.
c) Diversification β Diversify your wealth portfolio with alternatives. Real estate has a low correlation with stock markets and gives a hedge against volatility.
d) No hassle of property management β underlying real-world asset is fully managed by RAW Wealth which also takes care of all legal and paper works - making the experience seamless for investors
How do I make returns with RAW?
You can make returns with RAW in two ways:
1. Monthly rental income for the period you are holding the tokens
2. Capital gains when on appreciation of token price when you sell them in the secondary market or when they are called back when the asset is sold
How is it different from REITS?
While REITs are an alternate option for retail investors to get exposure to real estate they: have high set-up costs, property management charges and various commissions which significantly reduce the net rental income to investors and are never as lucrative as private market opportunities in terms of capital appreciation are volatile due to correlation with the equity market donβt offer investors the choice of a specific property
What types of other assets can be tokenized on RAW?
The primary focus of RAW remains on rent-yielding commercial real estate that can include various asset types like office spaces, warehouses, schools, hospitality, etc. As we believe commercial real estate as an asset class has massive potential for the next decade and is high time to democratize it for ordinary investors.
Moving forward we plan to onboard more tokenized assets like Private Equity & Venture Capital funds, Arts, Infrastructure, and real estate development projects as well.
Can I tokenize my own property? If so, how?
For now, the properties that go on our platform have to be approved by our in-house experts. You can apply to get your property reviewed by filling out the form on our app.
How do dividends, or rental income work?
Depending on the deal, you would get monthly or quarterly rental dividends deposited directly into the wallet linked to your account. We would make the frequency of dividends extremely clear on the deal information page.
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