# Benefits of Fractional Investments

Fractional investments democratize access to real estate by lowering the entry barriers and enabling diversification of investment portfolios.

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1. **Low Entry Barrier** - Traditional real estate investments require significant capital, making it inaccessible to many. PlayEstates lowers the barrier to entry by allowing investments as small as $10, making real estate investment accessible to a broader audience.
2. **Risk Mitigation** - By fractionalizing properties, investors can diversify their portfolios across multiple assets, reducing risk. Instead of investing in a single property, investors can spread their investments across various properties, balancing potential returns and risks.
3. **Collateral lending/borrowing** - PlayEstates allows investors to use their fractional ownership tokens (PNFTs) as collateral for loans. This feature provides liquidity, enabling investors to draw funds as needed and repay them at a variable interest rate. The decentralized nature of the platform ensures easy access to financial data and credit history.
4. **On-chain credit** - Investors can build their credit history on-chain and since the process is decentralized, individuals are able to access their financial data easily.
5. **Derivatives** - PlayEstates is also offering financial products derived from real estate in the future. Property derivatives provide investors with exposure to a specific real estate market without having to buy and sell tangible properties.
6. **Liability control** - every property is managed by individual LLCs, whereby the owners are not personally liable for the company's debts or liabilities.