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New Investment Types - Problems and Possible Blockchain Solution in Real Estate

By Teodor | Circular Economy Projects | 12 May 2020

Problems with Banks

In December 2019, I was visited in my office by a bank manager who wanted to offer us a loan for our real estate development project. The offer she presented was very tempting and good for our project. We decided to meet again at the beginning of 2020, before the construction season begins. 

So, we met few days ago and, as usual, she asked me about who is the other source of funding. I told her that it is our own real estate on blockchain platform. When she heard the word "blockchain", she was shocked, and told me there is no way to close the deal, even if she liked the project very much, because of central bank's regulations against blockchain and crypto projects. So the deal fell. 

"Furious" about this outcome, I remembered about nice blockchain and fintech projects created by people who were frustrated because of the reluctant position of banks, such as: Revolut, MenaPay, Crypterium, Bankera, Wirex, and more.

So, we decided to give up totally to banks and build all these sustainable real estate projects based on blockchain and to create the First Global Blockchain Real Estate Corporation of People (BRECoP), for empowering people through Fractional Property Ownership (FPO) and through a Passive Income Investment Plan (PIIP). 

The Real Estate Problems

By creating a real estate blockchain platform, we address the $280 Trillion Real Estate sector and $5 Trillion Private Fund industry, fraught with many problems! In real estate investments the private equity model is lucrative, but lacks the ability for active investors to trade their real estate interests on a daily basis at a reasonable net asset value. The real estate industry is highly capital-intensive and less liquid than other markets. Entry barriers prevent small investors from harvesting returns at the same level as the qualified players. Common investors are limited to investing only in collective investment formats such as real estate mutual funds where management fees are high and there is no way to choose and control opportunities. 

Proposed Solution

Our solution is the development of a Real Estate Security platform focused on the practical application of Smart Contract and next-generation Blockchain technology, that offers Fractional Property Ownership (FPO) of different types of properties: apartment complexes, student houses, office buildings, and commercial buildings. So, we have created platform to allow anyone to own a portion of property and also to benefit from an annual stake as passive income. 

Harnessing the immutability of Blockchain and the convenience of Artificial Intelligence, we provide the state-of-art Security Token Offering Platform that consistently generates stable annual ROI of 11%, as a viable alternative to the traditional retirement plans. 

With the implementation of our platform, we conveniently and efficiently resolve the issue of inherent illiquidity and fraught in a multi-trillion dollar investment market. Through the digitalization of our actual real estate assets (sustainable apartments, residential areas, lands, etc.), we aim to launch new markets and reduce operational costs, making real estate investment transparent, efficient, and open to people. 

The investment platform is user-friendly, secure and understandable, focusing on transparency and legal property ownership, where safe returns are achieved from participation in real estate development projects. 

In the process of developing sustainable real estate projects and in building investment portfolios, we seek and offer all people an investment tool that helps them to maintain a high level of security and diversification. 

More resources on the topic

The Real Estate and Blockchain subject is new and endless! If you are interested in learning about this particular subject, I am going to post here more topics, such as:

  • Tokenomics (Token Economics)
  • Risk of Investing in Real Estate Markets
  • The Right Time to Move Real Estate Development Business on Blockchain
  • The Real Estate Blockchain Ecosystem
  • The Security Token Investment Model
  • The Security of Security Tokens
  • The Real Estate Tokenization
  • Introduction to the European Real Estate Market
  • Crowdfunding vs. Traditional Real Estate Investment Overview
  • User Experience (UX) in Real Estate on Blockchain Platforms
  • The Regulations of Security Tokens
  • Friendly STO Jurisdictions
  • Corporate Structure for an STO Business, etc.

My original article is written on my business blog:
#realestate #reits #blockchain 

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Strong Family man and Christian believer, entrepreneur involved in AI, Web3.0 apps development, and in crypto investment.

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