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By https://bitcointalk.org/index.php?action=profile;u=2230830

Global REIT is a tokenized investment trust for investment in the real estate market. It has a lot of competition as its main purpose is to invest in real estate, something many other corporations and investment funds do.

Large Investment Corporations

There are many large corporations that solely acquire other businesses. A lot of businesses are primarily a real estate, like hotels and malls. Those investment corporations hire some of the best management consultants in the world and have the ability to buy under performing hotels and malls for a cheap price to turn them around into profitable assets. Large investment corporations also buy profitable real estate assets but because they qualify as strategic investors, they can negotiate a discounted price. Global REIT does not have these benefits; even though it’s first purchase is a hotel, it’s a small fish.

The positive is that there are too many investment opportunities out there. Global REIT may not get strategic investor benefits, but it can still acquire real estate. The advantage it has is that any investor is restricted by the available amount of money to be invested, even the largest investment corporation. Global REIT can just create more GRET tokens to buy as many real estate assets possible, as long as the current owners are willing to accept GRET tokens. The challenge would be finding a consistent flow of real estate owners willing to sell for tokens.

Other Blockchain Start-Ups

BlockSquare

BlockSquare wants to do just what Global REIT is doing. The start-up wants to tokenize real estate but it also wants to make its own marketplace for the tokens. This seems great but this is just a whitepaper project. Global REIT has already found a hotel that it will acquire for a mixed payment of tokens and cash. BlockSquare might have lost the race before it even began.

Real Estate Asset Ledger

REAL also wanted to just what Global REIT is doing. This start-up raised money nearly a year ago but its platform went live only 10 days ago. During that 1 year period, REAL managed to not make a single partnership to put its tokens to use. Despite having a head start against Global REIT, REAL has failed to launch its token.

There are more start-ups that tried to tokenize real estate and each has been a fantastic failure. The one thing fantastic about them was that they raised millions of dollars yet produced no value.