Post
Topic
Board Tokens (Altcoins)
Re: [ANN] REAL [ICO] Invest in Real Estate, Earn Ether [AUGUST TOKEN SALE]
by
Ayertosco
on 19/12/2017, 06:35:32 UTC

I honestly still think you don't really understand this.

Why would you say that a portfolio of $20 million in real estate is worth more than $20 million of cryptos?

I shortened quote, it was making thread unreadable.

Quote
There are a variety of fee structures in Crowdfunding deals, which range from annual fees as well as
partial participation in upside returns and participation in profits on exit.
We believe the most transparent and interest-aligned formula is a profit share fee, so our interests are
aligned which incentivizes us to make the best returns for our users.

REAL will earn a 10% commission fee on all income or value appreciation profits from investments
made through the platform. For example, if a property participation generates 100 ETH in profits,
REAL platform will keep 10 ETH and pay 90 ETH to the investor.

It is appealing to low risk - low income investors. There is not that kind of project in crypto. It will be bigger than the value of the portfolio.

Think about it, do you want to hold usdt or real?

That 10% is what you as a token holder will be paying to the REAL team. These are not fees that token holders will be earning as a benefit.

It will be cut from income. You are not going to pay them from your pocket or anything like that.

It is their commission to our income from real platform nothing more.

Right. I thought you were implying that those fees would benefit token holders, making tokens more valuable.

If that's not what you meant, then I'm not sure I understand why you posted that quote from the whitepaper.

I tried to tell how their platform will work and how we will get profit from it.

But you are right, the second paragraph is kinda unnecessary to put here.

Having spent a lot of time looking at this, as far as I can tell the only way to earn money is through real estate ownership. The platform doesn't generate any income for token holders at all.

That said, a successful real estate manager will typically shoot for 2x returns in 5-10 years. On occasion you might see some hit 3x - 5x, but that's pretty rare. It's possible that REAL could achieve that but it has nothing to do with  pioneering tokenized real estate. It's all about whether or not they can find good real estate deals to invest in.

I realized when I said it was "impossible" we were referring to returns of 20x, but for some reason I typed 10x into my reply. They could get lucky with a 10x return since the token is trading at half its value right now. If they could 5x what they invest and also hit the tokens actual value, that would be a 10x total. I think that's highly unlikely, but possible. A 20x still seems pretty impossible to me (unless ETH continues to run up while they hold it).

I spent a lot of time into this as well and I understood this: let's say they buy a real estate with some apartment in it, open for rent, the ownership will be divided among all partecipants trough RPP, real property partecipation. Let's say it will generate 1000 eth from renting over one month, on that month REAL will get 100 ETH and 900 ETH will be divided among all RPP. For example on that real estate there are 1,000,000 RPP , will mean 0,0009 ETH/RPP for that month. RPP are not equal to REAL, since that RPP value can go up and down based on the real estate value

Yes, that's exactly right. Since the real estate values are the only thing that can impact value (assuming they convert all their ETH), I don't think it's possible for the token to easily 10x or 20x.

To keep things simple, I've been referring to REAL and RPPs as if they were the same, but you're right that most value change will happen at the RPP level. I expect REAL tokens to largely represent the amount of cash they hold.

I don't agree. REAL will be backed by Real estate properties and contract when you usually make gains with cryptos that are copycats, Useless or without any product for years...so why can't it do a x20 when there is a solid investment behind your tokens with a steady income? Then, number of tokens is really low and of the platform is a success, a lot of them will be locked in the platform. In my opinion it can skyrocket.