REAL will own the those properties?
Whose company is that? Ours? I don't think so.
Yes, we will be working similarly to how funds work.
Melissa
You buy and apartment for $200k then you put it to list on REAL let's say for 2m real token.
But people invest in it just 1.5m.
You rent out the apartment and get the money. You'll distribute 75% to the those investors or 100%? Of course minus operational costs.
They are also diluting the token supply by printing an extra 20% to comp themselves as well as taking 10% out of the profits for themselves... They claim currency appreciation but based on absolutely no logic other than the hope that people will continue to irrationally invest in ICO's.. This project is an expensive, insecure and unregulated version of a REIT. Not sure why people find this interesting.
Lets assume you only sell $1m of REAL coins.
Lets say that creates a supply of 1M REAL tokens.
You then print 200k REAL tokens and give yourself a bonus.
Lets say you spend the $1M on real estate.
Your portfolio value: $1M
Total Token Supply = 1.2M
Tokens held by token holders = 1M
Total % of portfolio held by token holders = ~83$
Total equity value of token holders = ~830k (a 170k loss)
Then, you start to generate rents, lets say you leverage the portfolio and acquire 5M worth of real estate and get 10% Cash on Cash.
You then generate 100k, only 83k of which you pay token holders, but first, you take 10k out for your profit share. So that number looks more like 74k
So, you are taking 20% of the value right out of the gate, reducing the profits, and elevating risk through leverage - (banks will get paid before token holders)
Compare to a traditional REIT
When you invest 1M, the REIT pays that same dividend (say they make the same investments so $100k / 10% COC) to shareholders. They will take 1% out so that 100k becomes 99K
So, what is larger, 74K or 99K?
You guys will destroy at least 25% of the value of a real estate portfolio for token holders in order to compensate yourselves. As I said, very expensive and blochchain provides no benefit here.