Anybody interested in investing in real state? have you ever feel it is very hard to get the money to invest in an apartment or even a small house? what about investing in a beach house in Cancún?
There are many reasons why people cannot invest in real state, to begin with the amount of money required for a downpayment is high for us millennials and to think about investing in another country with another language and other laws, it is just too complicated!
What if we can help all these trust transactions using blockchain! if the money is too much for 1 person, then we can invite more! and if we are not sure about who to trust in another country, if it is using blockchain we know we don’t need to trust the person but the system, and make sure it is well done.
Sounds like each property would be a non-fungible token with the ability to issue it’s own shares (fungible tokens).
The shares could be sold in a marketplace for 1 USDT each (just for example). Once the property is sold, the shares could be “cashed out” or burned in exchange for their current USDT value.
Exactly!! Thank you for explaining this on Blockchain terms!! I have been doing some more reading to be up to speed in the subject and be able to improve the fitness of my comments! Thanks a lot Eric!
You may want to look into https://realt.co/ for further inspiration. Afaik, they create LLC or some sort of company and the turn its shares into fungible security token and sells via http://uniswap.exchange/ exchange. They can earn rental payment every 24 hrs in proportion to the share of each property they own. I don’t think they make each property as NFT, as each contract is a legal contract of the property ownership and cannot easily transferrable legally.
Thank you very much for sharing this info Makoto! I looked into Realt, really interesting! I also found out this other model: https://republic.co/44-east. It is more like crowdfunding! I’m trying to better understand the pros and cons of each one.
Hi @ann.zucco,
Companies in France and Switzerland have already tokenized and sold real estate.
Their clients are not from other countries but locals. And IMO is not even a question of not having enough money to buy the whole building but more related to the fact that investors like to diversify their portfolio and using a blockchain solution is convenient, you can buy/sell your assets in minutes from your couch.
IMO this is definitely a project worth building.
Thanks Daniel for sharing this more info!! would you be interested in building something like this with a real asset? I could do the managing of the asset to make sure it has rental income
Just as to understand the issue in other markets. In Mexico and other countries it is a question of not having enough money to buy, as interest rates tend to be around 10% annual interest rate, and not as low as 3-4% as in the US/Canada. Also because the ratio of income towards the cost of real state is not helpful either. So, basically people that buy real state as investment try to do it on cash, and avoid credits. This is why blockchain can be even more interesting, as it may allow more people to come in and invest in real state.
Thanks for proposing! I’m already working on a project. I encourage you to look for a team, your idea definitely has legs.
I was thinking you can target already established (real estate) investors to start with. I’m pretty sure affording to buy real estate is a privilege in most countries, and most people are looking to buy a home to live in before they invest in other properties. This would also force you to do all the legal work required.
On a second step, you could expand to non accredited investors.
You might also look into what type of property your users are interested in most, are these flats, vacation homes(time-sharing), all-inclusive resorts that are looking for an escape path due to the pandemic, golf terrains, office buildings etc
Where did this conversation go? Anyone still interested?? i believe that different aspects of the transaction can be tokenized, as well…so certain tokens can add up and then check off contract needs before releasing funds.
Hi @ebreuers
I liked the way you look at this problem. non-fungible tokenization for properties, and issuing fungible tokens as their shares.
My question is on how those fungible tokens are valued based on the demand? is it based on a bidding process?
I would like to collaborate with you in regards to similar interest in crypto and real estate. Can we connect via LinkedIn https://www.linkedin.com/in/bjjfaq
and to think about investing in another country with another language and other laws, it is just too complicated!