Tokenizing Real Estate: Liquidity, Lower Minimums & One K-1 | Bigger Pockets Video

-Episode #235

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Can blockchain make private real estate more accessible? Paul Shannon speaks with Larry Kalis and Tyler Vinson about tokenization for LPs. They cover TRIFs from American Digital Realty, how RE Tokens enables secondary trading after a one year lockup, and what changes for custody, liquidity, and tax reporting. If you know syndications but are new to tokenized assets, this is a simple, practical breakdown.

Key Takeaways:
-What tokenization means for LPs, a digital wrapper of your fund or deal interest on a blockchain
-Access and diversification with lower minimums and one consolidated K1
-Liquidity path using Rule 144 and a secondary marketplace after 12 months
-Operations and security, KYC and AML, custodied tokens, fiat or USDC distributions, burn and reissue if lost
-Structure and risks, ADR’s fund of funds TRIFs on Stellar vs single asset tokens, tech partner and valuation cadence

Disclaimer

The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Remember that past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any of the advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.

00:00 Why tokenization for passive investors (episode setup)
01:06 Meet ADR & REtokens: TRIFs + marketplace overview
07:25 The LP problem set: access, illiquidity, K-1s—and how tokenization helps
09:42 How it works (LP example + “gold brick → gold coins” analogy)
13:37 Liquidity after 12 months: Rule 144 & how secondary trades clear
19:36 Pricing today (no market maker) & what’s coming next
29:09 Real-world traction: Aspen Coin, RWAs, stablecoins; ADR’s diversified approach
31:34 Operations & risk: distributions/K-1s, fiat vs USDC, custody (Stellar), broker-dealer diligence
48:22 Next steps & resources