Real Estate Asset Coin

Transcription

1 Real Estate Asset Coin Version 1.0 issued November 23rd, BUY!! TRADE!! OWN!! STAKE!! PROFIT!!

2 1 Overview 2 Goals 2 Why Invest In Real Estate? 3 Added Advantages 3 Why Blockchain Works in Real Estate 3 How It Works 4 The Residual Income Plan 4 The Turnaround Plan 4 Beverly Hills Architectural 5 Real Estate Asset Coin Utility. 5 I. Tradeable Asset 5 II. Share Factor 5 III. Membership Level Indicator 5 Stakeholder Membership Levels 6 Silver Coin Member 6 Gold Coin Member 6 Platinum Coin Member 6 Diamond Coin Member 6 Financial Benefits of the REACoin 6 Active Income 6 Residual Income 6 Sustainability 7 Burning 7 Value Sourcing 7 Team REAC will only acquire assets as follows: 7 Pro Rata Distribution of Dividends 7 Vaulting 8 Platform Transparency 8 Calculating your Return on Investment 8 Longevity of Real Estate Asset 9 Trading REACoins 9 Listing on Exchanges 9 Advantages/Disadvantages of Trading REACoins 9 Staking REACoins 10 Liquid Asset Control 10 Expansion Possibilities 10 Conclusion 10

3 2 Overview The Real Estate Asset Coin is a decentralized real estate purchasing umbrella which aims to offer participants the opportunity to own stakes in luxury rental apartments as well as earning residual income from the rental and resale of property assets. The asset runs natively on the Ethereum network and utilizes all the advantages the network has to offer. The Ethereum network has development tools, wallets and exchanges. Ethereum has the ability to deploy trustless smart contracts which enable complex issuance rules for cryptocurrencies, digital financial contracts and automated incentive structures. This makes it perfect to run the REACoin. Goals 1. Acquisition of luxury rental apartments in select markets. 2. Allowance for limited income holders to earn residual income monthly from the rental and resale of assets. 3. Creation of Diamond, Platinum, Gold and Silver membership levels based on percent staked. 4. Allocate percent discount for member levels when staying in acquired holding. 5. Development of app/wallet which shows membership level and perks. 6. Zero listing fees Marketplace for real estate. While realtors charge 6% commission for listing and selling a property, the REAC Marketplace will charge zero listing fees and only 1% commission on sales. 7. Marketplace listings will be in a preferred currency with Bitcoin being an option. Why Invest In Real Estate? Real estate is a great investment option because it can generate an ongoing income source. It can also rise in value over time and prove a good investment in the cash value of the home or land acquired. It is the only asset that is insured and has this advantage over other assets.

4 3 Added Advantages Shelter is a basic need. People will always need a place to live, either permanently or temporarily. The key to owning/investing in real estate is in an evolving demographics. Millennials as a whole are not purchasing homes as before, thus giving rise to a demand for apartments. Not everyone can afford to buy luxury apartments, so there are many groups and operators around the country that will buy that $10 million (or even $50 million) apartment complex, and then allow participants to come in and invest in smaller chunks, starting at as little as $25,000. Why Blockchain Works in Real Estate According to the respected online journal, The Huffington Post, Blockchain is the only technology that can ensure the entire real estate process can be done online in a seamless and efficient manner. It cited the many benefits as follows: Having land registered on a distributed ledger will greatly speed up the registration process. Blockchain will cut down on property fraud with each property bing coded and linked to users/buyers Smart contracts will expedite the real estate process by coding the contracts to transfer titles to the buyer immediately upon the receipt of funds. Bitcoin is already being used to purchase assets. The investment and ownership of real estate property is more transparent, fluid and less costly.

5 4 How It Works I. The Residual Income Plan The residual income plan is conceptualized to be the caveat of all the processes. Team REAC would seek to acquire luxury rentals in cities where there is a huge demand for the asset type. This will further be explained in our staking section. II. The Turnaround Plan The turnaround plan is essential the quick cash flow of the project. In this case, property will be acquired for the sake of flipping at a percentage that is profitable to stakeholders. Gross margin, also known as gross profit margin, is basically the price something sells for minus its acquisition and production costs. Gross margin in a house flip is determined by a flipped house's acquisition and rehabilitation (production) costs, all of which are subtracted from final sales price. Nationwide, the average gross margin on a property flip stands at $29,342. Buying a property for the lowest price possible, spending what's needed on repairs and then reselling it at maximum price defines property flipping. The table below shows median profit in some of the most profitable areas. Property Description Area Price 2 Bedrooms 3 Bath Condo PENTHOUSE! A ONE OF A KIND! This Penthouse, 46th floor spectacular 2 bedroom home boasts huge living space, a windowed granite kitchen, 2.5 marble baths and an oversized terrace for outdoor entertaining. NYC $9345/mth Vue at Centennial The Vue at Centennial offers luxury apartments with a new level of modern living. Indulge in high-end finishes such as quartz countertops, modern plank flooring and stainless steel appliances. Las Vegas $5000/mth Beverly Hills Architectural Modern masterwork on a coveted Westend Flats corner. Voluminous; yet, inviting spaces. Super high ceilings, wood and tile floors. Los Angeles $2150/per night The case studies mentioned above are but a few examples of the thriving luxury rental

6 5 business. Team REAC will acquire as many of these assets as possible and the stakeholders would benefit by receiving a share of the revenues based on the percentage of REACoins (REAC) held. Keep in mind that these are not one and done payments. The income opportunity is tremendous. Collecting recurring returns from assets should be everyone s dream. Real Estate Asset Coin Utility. REACoin is a dual purpose concept implemented on the public Ethereum blockchain as an ERC20 token with an added perk. I. Tradeable Asset The first concept is that it is tradeable. Holders can buy, sell and trade their REACoins at leisure. The trade value would be determined by market factors and the mechanisms put in place to ensure inflation does not affect the value of the coin. II. Share Factor Secondly, REACoin is a share factor. The amount you hold in the staking wallet determines your share of the total revenues collected. Holders benefit from every acquired property. REACoins allow multiple streams of income wherein no other cryptocurrency does. This is a remarkable concept and it ties in with the section below. III. Membership Level Indicator As a membership level indicator, staked REACoins would allow the stakeholders certain perks based on the number of coins which the holder stakes. After the ICO, each holder will be invited to stake REACoins into a newly created staking wallet. Withdrawals from this wallet is prohibited for the first 12 month. This ensures that stakeholders and value sourcing are given enough time to vest. The table on the next page explains the different levels and benefits of each level.

7 6 Stakeholder Membership Levels Silver Coin Member Gold Coin Member Platinum Coin Member Stakes 50,000 REACs Stakes 100,000+ REACs Stakes 500,000+ REACs Diamond Coin Member Stakes 1,000,000+ REACs 5% off stays at R.E.A.C. assets 10% off stays at R.E.A.C. assets 15% off stays at R.E.A.C. assets 20% off stays at R.E.A.C. assets Weekend discount eligible- NO Weekend discount eligible- NO Weekend discount eligible- YES Weekend discount eligible- YES Financial Benefits of the REACoin Active Income Team REAC intends to list REACoins on cryptocurrency exchanges, thus making it a tradeable asset. Buying and selling at the right price affords holders active income. Residual Income REACoin holders would receive a share of the total collected revenue from acquired properties. Team REAC does all the background work while you trade, work, and sleep. At the end of the month quarter, stakeholders will receive a pro-rata share of the collected revenue. That is the beauty of the dual concept coin. Residual income is also earned from the collection of commission from the REAC Marketplace.

8 7 Sustainability Burning At the onset, 100,000,000 REACoins (REAC) would be produced. New tokens would not be created. At the end of the ICO, every unsold token would be destroyed by the smart contract. The mechanism guards against inflation and maintains the number of tokens in circulation. Value Sourcing Team REAC will only acquire assets as follows: Luxury rental properties located in vibrant cities where there is a huge or growing demand. Properties that can be flipped quickly to produce a ROI at about 30% profit. By doing so, Team REAC creates an arbitrage type scenario where profit margins are maximized. Limit long term rentals to achieve a turnover rate is above 60% per capacity close to airports, vibrant cities and in peak travel season. Pro Rata Distribution of Dividends The sum of all collected revenues will be distributed on a pro-rata basis by the end of Q This give the purchasing team and trusted real estate agents enough time to value source the first of many assets and bring it under the aegis of the REAC banner. After the asset is acquired, revenues will be paid 30 days after the end of the current quarter. Thus, revenues collect for the Q1 will be paid on April 30th. Vaulting REAC will retain 20% of all revenues collected. This would allow for the accumulation of funds to invest in future assets. This 20% would be converted to the ETH and stored in encrypted vaults.

9 8 Platform Transparency Just like the blockchain being publicly accessible, Team REAC would make available assets, targeted assets, revenue collected and subsequent taxes, by displaying them on its corporate website This will add another level of accountability. Here, REACoin holders can view their stakes and calculate the percent of the collected revenue they will receive. Calculating your Return on Investment For the first 8 quarters, REAC will not take any returns derived from revenues. REAC prefers to make those funds available to you, the stakeholders who believe in the project. After the first 8 quarters. REAC would take 50% of the revenues owed. The other 50% would be sent to the vault for further investments. Each year following, REAC would decrease its share by 5% until a level of 20% of owed revenue is achieved. This adds value to the REACoin and ensures that other stakeholders achieve maximized returns. Your ROI (see formula outlined below) is calculated by dividing your Personal Holding (PH) by the Total Assert Staked (TS) and multiplying the quotient by the Net Revenue (NR). Net revenue refer to the sum available after all applicable taxes are paid. The below formula best explains the calculation. Net Revenue (NR) = Revenue Collected - Taxes Incurred. PH = Personal Holding (amount of coins you staked) TSS = Total Asset Staked ROI = Return on Investment (monthly) ROI = P H 100 X T SS 1

10 9 Longevity of Real Estate Asset Real Estate Asset is a stable good quality investment. Revenue collected is recurring and REAC will provide small participants the avenue to get involved by reducing the uncertainties of real estate investing. This enable anyone to build a property based investment portfolio which delivers a predictable and consistent return. While we believe luxury investment would produce a higher yield, we also believe in providing a diversified investment range, thus allowing for varying levels of risks and rewards for users to invest in. Trading REACoins Listing on Exchanges REACoins would be listed on exchanges that provide the best user experience. REAC aims to make trading as simple as possible enabling the least experienced trader little to no problem navigating the exchanges. As the time draws near to listing on exchanges, REAC would publicly announce the exchanges via and its social media page. This early announcement would give traders enough time to sign up with an exchange of their choosing and be verified. Verification may be a long process so the sooner one creates an account, the sooner their trading begins Advantages/Disadvantages of Trading REACoins REACoins are not dissimilar to other traded commodities when it comes to advantages and disadvantages. The only difference is that the plural concept of its nature changes inversely when traded. Let s look at an example. If you own 15% of the total supply staked, then your share of the net royalties is proportional to what you own, 15%. If however the market price increases and you decide to withdraw and sell 5% of your stakeholding when, you gain revenue from the trade (active income) and your share of the net revenue is decreases to 10%. Therefore, trading is situational and depends on the stakeholder s goals, be it long term investments or short term investments.

11 10 Staking REACoins Holding on to the REACoins is called staking. To see a token flourish, one has to think of its long term goals. Yes the price may reach a number that you deem favorable to sell, but in the long run, the sell price may be nothing compared to the sum of the revenues collected, Marketplace commission and the current market price. The REACoin was not conceptualized to be a get rich one and done asset. Given the plethora of real estate on the market in which REAC has to value source new assets, it's safe to say that the real value of REACoins would be realized after 1 year. This gives the platform enough time to source the best asset and, allow the token to increase in value. Liquid Asset Control In keeping with REAC s goal of value sourcing, the number of REACoins on exchanges must be controlled. If the number of REACoins on any exchange surpasses 300,000, R.E.A.C.H (Real Estate Asset Coin Holders), the liquid asset control team, would immediately swoop in and purchase the overage and add them to personal assets. These personal assets never hit the market. In doing so, the laws of supply and demand come into play, effectively raising the price of each REACoin. Expansion Possibilities In the future REAC intend to target assets in international vacation locations where there is a tax break for foreign investment and a budding rise in tourism. We see this as the pinnacle for foreign investment and will work alongside international authorities to ensure that the best possible deals are being brokered for stakeholders. Conclusion REACoin is but one drop in the bucket of ideas conceptualized. REAC aims to provide stakeholders with the most viable, utile cryptocurrency in the space. REACoins plurality concept is second to none. The assets REAC are considering are ever renewing thus ensuring no shortage of potential acquisitions. Plans for further expansion also has a bright future with thousand of assets becoming available everyday. If you're thinking of participating in this groundbreaking concept, welcome aboard! If you are unsure, please follow our progress on social media and visit our website

12 BUY!! TRADE!! OWN!! STAKE!! PROFIT!! 11