Quote from: panorama on October 20, 2017, 10:23:17 PM

Quote from: fahmp7 on October 20, 2017, 07:32:41 PM

Quote from: BonTonPlease on October 20, 2017, 07:17:56 PM

Quote from: tradecoin.me on October 18, 2017, 10:07:10 PM

Quote from: BonTonPlease on October 18, 2017, 07:50:13 PM

Quote from: guillzini on October 02, 2017, 02:34:48 PM

Quote from: BonTonPlease on October 02, 2017, 11:45:16 AM

Where are we currently at in terms of raised amount of money?

The ICO raised just over 37k ETH, which would be around $11 million.

Wow, that is a huge bag of money. Excited about what you are going to pull off with it!

Yeah but you do realize that only 51% will go towards the project. They will only buy property with 51% of the money and keep the rest.

To be honest I am not fully aware of that. They simply keep the rest? I mean, they use it for operational costs and stuff. They need to finance the operations apart from buying property itself.

BonTon, REAL was the reason why I joined this forum. I'm not a bitpro, however I try to get the knowledge regarding crypto.
To make it short. From what I understood it's common to give 20% to developers. On top they decided to have 29% to their disposal. Just in case there was a need for that tokens.
If I get you right, what you mean by finanacing the properties is the maintanance costs eg. keeping management, keeping housekeepers and so on. I tried to get an answer whether that was included in their 20% goal, but I got no answer. So I guess 20% was.. undescribable. I tend to believe, that Melissa as beautiful as she is, was to short to understand it.
To answer your question straight: read the white paper. It's all there.

I went through the whitepaper again and this is my understanding:

* 20% of tokens are for the team
* 51% of the tokens were sold to contributors during the ICO.
* 29% is being reserved for a future sale, although it looks like a small portion may be offered to "partners" (see page 32). So, together with the 51% above, around 80% should be available for investment LESS $8 million reserved for 5 years of operating expenses (this is the Core Budget that was referenced).

Typically, with institutional investments, you'd expect the following, but it shouldn't be surprising that REAL fees are higher since they are a smaller platform. That said, the essence of how it works should still be fair to investors.

Management fees: 1.5% - 2.0% of invested equity annually. Let's work backwards to see how much they can support. If $8 million is supposed to last 5 years, that's $1.6 million per year. Using the 2% of equity rule, that should support $80 million of investable capital (including the 29% that's being held in reserve). They have raised $11 million so far.

Incentive fees: Typically 20% over a return hurdle. Since they are targeting returns of 12% - 20%, you'd probably expect a 7% - 8% return hurdle (let's say 7%). This means that the team shouldn't take a portion of the profits until investors have earned 7%. After that point, investors should receive 80% and the team should receive 20%. Again, this is from an institutional perspective.

I've seen there be no hurdles, where the team starts earning a percentage of any profit. So once investors get their money back, there's an 80/20 split. However, the REAL team is taking 20% right off the bat, from day 1. Yes, there's a lockup period and they are being paid in REAL tokens, but they are still guaranteed this payment. This is extremely egregious in my opinion.

Panorama is on point here. Very well explained. Thanks for doing that!