Fractional real estate investment allows multiple investors to own shares of a single property. Instead of purchasing an entire property, investors can buy a fraction of it, making real estate investment more accessible and allowing for diversification across multiple properties.
Fractio uses blockchain technology to tokenize real estate assets. Each property is represented by a set number of tokens on the blockchain. When you invest, you receive tokens proportional to your investment, which represent your ownership share. This ensures transparency, security, and easy transferability of your investment.
The minimum investment amount varies by property but typically starts at $250 or 0.125 ETH. This low entry point allows investors to start small and gradually build their real estate portfolio.
Returns on your investment come from two primary sources:
- Rental Income: You receive a proportional share of the rental income generated by the property.
- Property Appreciation: If the property value increases over time, the value of your investment grows accordingly.
-
Token Rewards: The longer you hold your investments, the more
Fractio tokens you accumulate over time. These tokens can then be
used to
- Purchase future shares
- Access exclusive community events.
- Vote on property developments, acquisitions, and platform updates.
These returns are distributed in two ways:
- Regular Payouts: Receive returns as periodic payouts.
- Automatic Reinvestment: Have your returns automatically reinvested for set periods based on your preferences.
Yes, your investment is relatively liquid compared to traditional real estate. You can sell your tokens on our secondary marketplace to other Fractio investors. The process is simple:
- List your tokens for sale on our platform
- Wait for a buyer to purchase your tokens
- Once sold, receive the funds in your account
Note that liquidity may vary depending on market demand.
Our team of real estate experts carefully evaluates each property based on several criteria:
- Location and market trends
- Potential for appreciation
- Rental income potential
- Property condition and necessary improvements
- Overall risk-return profile
We only list properties that pass our rigorous due diligence process to ensure the best possible investment opportunities for our users.
Fractio partners with professional property management companies to handle day-to-day operations, tenant management, and maintenance. This ensures that the properties are well-maintained and continue to generate optimal returns. The costs for these services are factored into the financial projections for each property.
Currently, Fractio is available in select countries. We're continuously working on expanding our services globally. Please check our Locations page for the most up-to-date information on where our services are available.
Security is our top priority. We implement several measures to ensure the safety of your investment:
- Blockchain technology for transparent and tamper-proof record-keeping
- Smart contracts for automated and secure transactions
- Bank-level encryption for all personal and financial data
- Regular third-party security audits
- Compliance with all relevant financial regulations
Additionally, each property investment is structured as a separate legal entity, protecting investors from liabilities associated with other properties.
The tax implications of investing in fractional real estate can vary depending on your jurisdiction and personal circumstances. Generally, you may be liable for taxes on:
- Rental income received from your investment
- Capital gains if you sell your tokens at a profit
Fractio provides annual tax documents to help with your tax reporting. However, we strongly advise consulting a tax professional or accountant who understands this asset class for personalized and sound advice.
Yes, you can invest in Fractio properties using a self-directed IRA or 401(k). This can potentially offer tax advantages, depending on your situation. We have established partnerships with several custodians who can help you set up a self-directed retirement account for real estate investments. Please contact our support team for more information on this process.