Real estate tokenization costs vary depending on the jurisdiction, property type, technology, and whether you're developing your own solution or partnering with a real estate tokenization company.
1. Legal and Compliance Costs
Estimated: $10,000 – $100,000+
The use of a real estate tokenization corporation may involve the outsourcing or bundling of legal services. The following expenses are included:
- Structure of businesses (e.g., SPV, REIT)
- Compatibility with securities (e.g., SEC or equivalent)
- Providing documentation (agreements, PPM)
- Onboarding for KYC/AML
2. Smart contracts and technology
Estimated: $5,000 – $50,000+
You can:
- Make use of a turnkey real estate tokenization platform like as tZERO, SolidBlock, or RealT.
- Create your own smart contracts for complete control at a higher cost.
- Smart contract security audit ($5K–$20K)
3. Marketing to Investors and Issuing Tokens
Estimated: $10,000 – $100,000+
Includes:
- Blockchain-based token issuance (Ethereum, Polygon, etc.)
- Listing on an exchange or marketplace that complies
- Promoting to qualified investors
- Services frequently offered by a corporation that tokenizes real estate
4. An escrow Property Management and Custody
Estimated: $5,000 – $20,000 annually
Most real estate tokenization companies offer:
- Investor portal and wallet services
- Escrow and fund flow management
- Integration with property managers
5. Ongoing Platform and Compliance Fees
Estimated: $1,000 – $10,000+ annually
- Token maintenance
- Regulatory updates
- Platform subscription fees