Investing in tokenized real estate  through a Fund (REIT like or in a form of LP). Here’s a breakdown of the pros and cons for this investment
Pros:
- Diversification: Tokenized funds or LPs pool multiple properties, spreading risk across different locations and property types, such as commercial, residential, and industrial.
- Professional Management: Investors benefit from professional fund management, which handles all aspects of property management, from acquisition and maintenance to tenant relations.
- Lower Volatility: The diversified nature of funds can lead to more stable returns compared to individual properties.
- Ease of Entry: With tokens representing small fractions of the entire fund, investors can enter the market with relatively small amounts of capital.
Cons:
- Less Control: Investors have no direct influence over which properties are included in the fund.
-Complex Fee Structures: Management and performance fees can reduce overall returns. Understanding these fees and how they impact earnings can be complex.
Less Potential for High Returns: While lower risk, the diversification also means that high returns from a standout property are balanced by others with lower performance.