4.2 BUSINESS & PORTFOLIO MANAGEMENT

Investing $10 in a Realproton Security Token is investing in the business portfolio real es-tate token represents a one-millionth share in the underlying apartment building’s value. Upon property sale, a proportional one-millionth (0.0001%) of the proceeds would be achieved. Potential earnings from tokenizing real estate can vary substantially and rely on multiple factors such as:

• Rental Income: The revenue from real estate asset tokenization depends on rental income. Discrepancies in investment contracts, dictating the distribution of rental proceeds and property expenses, vary among tokenization platforms. After deducting expenses, token holders receive rental income proportional to their ownership stakes.
• Capital Gains: The ROI resulting from real estate tokenization is contingent upon factors such as jurisdictional regulations and the extent of capital gain tax deductions applicable.
• Dividend Payments: The determination of the profit-sharing payment schedule between the company and its investors constitutes an additional factor for consideration. The pricing per share is established by the board of directors of the real estate company, with variations evident across different companies.
• Platform Fees: The trading or processing fees associated with the real estate tokenization platform significantly influence the return on investment. Specifically, Realproton Inc retains just 2% of the gross rental income, with the remaining 98% being disbursed to Realproton Token holders in fiat and/or crypto.
• Financing Costs: The financial arrangements associated with the property, particularly when secured through a mortgage, exert a consequential influence on the investment’s net income, with interest rates and loan terms playing pivotal roles in shaping this outcome.