Tokenize Marketplace properties have been inspected by a professional 3rd party inspection company. You can find the inspection report in the Documents section of the property pages.
If there is an issue found in the inspection report, the seller will either make the repair before closing or provide a credit to the LLC to make the repairs post-closing.
It there are any major issues, E.g., roof, HVAC, foundation, that the seller is not willing to fix or provide a credit for, the property will not be listed on the Tokenize Marketplace.
Each property has a 5-8% Maintenance Reserve to handle any unexpected repairs.
If any portion of the Maintenance Reserve is used, it will be replenished using 10% of the monthly cash flow until it is full again.
If a large repair needs to be made that exceeds the Maintenance Reserve, then 100% of the rental income will be used to pay for the repairs.
If a property is not looking like it will be fully funded by the closing date, we would simply reach out to the seller of the property and ask them if they would be willing to extend the deadline for closing––which they are typically open to.
If they are open to extending the closing date, then the property will remain on our marketplace until the new closing date.
If the seller was not willing to extend the closing date, we would fully refund all the investors who purchased tokens into the property. The listing would then get cancelled and removed from our marketplace.
No, currently all Tokenize Assets properties are purchased using all cash with no debt.
We use the Polygon blockchain to host our token offerings. Polygon, formerly known as the Matic Network, is a scaling solution that aims to provide multiple tools to improve the speed and reduce the cost and complexities of transactions on blockchain networks.
All owners have their own dashboard, called Assets Overview, where you can see how many tokens you hold and their current principal value, which will adjust automatically each month starting after the token offering is complete.
You’ll be able to see income added to your account along with records of historical transactions.
When you purchase tokens on the Tokenize Marketplace property offering, you are directly buying a membership interest in the individual LLC that owns that property asset.
For example, if you purchase 1% of the tokens in a single home offering, you would then be entitled to 1% of the economic interests of the asset over time, which may include income from rent or property value appreciation.
No. Each home is owned through a limited liability company structure (LLC) to protect owners from personal liability.
The most you could lose is your original investment.
You would not lose your investment if Tokenize Assets went out of business
Because your tokens represent legal ownership in the LLC that owns each property.
If Tokenize Assets, LLC went out of business, each property LLC would continue to remain in existence as a separate legal entity for property holding, tax, accounting, liability, and member ownership purposes. Regardless of what happens to Tokenize Assets, LLC, the assets and the Tokenize Assets, LLC tokens of an LLC would remain independent and intact.
The Tokenize Assets tokens would still represent, and evidence ownership of the property contained in the LLC and, as such, could be transferred in the market, as needed, so long as applicable securities transfer rules are complied with.
You, therefore, remain the owner of your tokens. If there is a liquidation of Tokenize Assets, LLC, a new Managing Member of the LLCs would be appointed, as Tokenize Assets, LLC is currently the manager of each LLC. This Managing Member will be Rosen & Rosen LLP, a reputable law firm familiar with this process, who will oversee the liquidation of all properties for a fee which will be redeemed from the liquidation price of each underlying property.
Owners will recover pro-rata portions of their principle based on the net proceeds after paying for realtors, title, and legal fees. Any funds left in the Maintenance Reserves and Vacancy Reserves will be disbursed to Tokenize Assets token holders as well.
Owners would redeem their funds back by sending their tokens to Tokenize Assets’ wallet address, which will be managed by the law firm. Once the tokens are received, owners would receive funds credited back to them via ACH or Crypto. If Tokenize Assets is no longer in business, then we would not be able to purchase the tokens back and provide liquidity, so please be aware of this risk.
All ownership documentation is publicly available online by going to the property asset link on https://polygonscan.com/.
You can also find these documents in the Assets Overview section of your Tokenize Marketplace dashboard.
At this time, it is not possible to do a 1031 exchange into or out of Tokenize Assets properties.
The owners of the property determine when the property is sold via our governance system.
Once a property is sold, owners will receive their returns equal to the [total sold price - selling fees] divided by their percentage ownership in the property.
If you purchase tokens via ACH (bank transfer), you will receive your tokens once the payment clears on our end. We do this in case the payment is rejected, as we have no way to claw back tokens after they are sent to a wallet.
Once the payment clears on our end (typically a few days after it clears on your banks end), you will receive your tokens if you've opted in. You will also receive all of your accumulated rental income starting on the same day you invested.
No. Each home is owned through a limited liability company structure to protect shareholders from personal liability.
You can access your current account balance by logging into your member dashboard. Tokenize Assets will regularly update your account balance with the details of your investment value, estimated earnings from rent payments, estimated appreciation, and any processed Free Cash Flow distributions.
Our current policy is to distribute any Property Cash Flow on a monthly basis for each property.
Tokenize Assets works with experienced third-party property managers that take care of the day-to-day management responsibility of leasing, maintenance, and rent collection. Tokenize Assets provides additional oversight to maximize rents, make profitable asset decisions, and minimize costs.
No, Tokenize Assets takes care of all the home ownership responsibilities, including the selection, purchase, renovation of the home, as well as finding tenants and dealing with maintenance requests. As an investor you sit back, let us do all the heavy lifting and you earn income from rental payments.
The Tokenize Assets platform is open to investors globally and are of the age of 18 or older. Individuals do not need to be an accredited investor to participate in the Tokenize Assets platform. All investors will receive a US 1099 document yearly for tax purposes. Individuals may also invest through certain entities or self-directed retirement accounts.
The minimum required to make an investment is only $500 USD per property.
We allow investors to redeem their shares and liquidate after an initial 12-month lock up period.
We have a cash reserve at the individual property level for every home. It will typically average around 2% of the total home value. We also budget for ongoing operating expenses, both planned and unplanned. These include things like property tax, home insurance, and maintenance. Our anticipated dividends are after these operating expenses.
In the event that the property is unrented, there will be no rental payments. Once the rental payments resume, rental income will be paid to token holders.
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Investing in Tokenize Assets properties can deliver returns to investors in two different ways: COC, cash on cash returns from rental income 2) IRR, internal rate of return that factors the cash on cash and property appreciation. While we cannot predict future returns for our investors, it is important to note that past performance may not be indicative of future results.
Monthly rent is set from the value of the home and local rental rates for the area. Our rental rates should be in-line with what you'd expect to pay in rent for similar homes in the market.
Tokenize Assets has a team that identifies, inspect and underwrite all properties. We handpick each rental property and remain consistently involved throughout the entire life cycle of the home. The selection of homes is largely based on the markets they’re located in. Tokenize Assets markets are chosen based on a potential for population growth, job opportunities, rising single-family home trends and many other factors.