Invest In Real Estate – Crypto Way
In a recent research, London based real estate advisor company Savills announced that “in 2015, the total value of all developed real estate on the globe reached US$217 trillion”. This year, for the first time, the value of agricultural land and forestry is also included in the Savills measurement of total world real estate, at an estimate of US$26 trillion. Residential property accounted for 75% of the total value of global property or $162 trillion. Just for comparison, to understand better the volume of this industry – total value of gold ever mined is approximately US$6 trillion, which is pale in comparison to the total value of developed property by a factor of 36 to 1.
This is an impressive industry and now also the blockchain has made its way here. Let’s dive deeper and find out more about the innovations we can see online that is connected with real estate industry.
Trend of crowdfunding and how does it fits with real estate
Crowdfunding for culture, events, even for your travels, birthdays and studies, and more has been around for some time. There are many sites that generate huge amount of money in order to support whatever plans you have.
Investment in real estate has not been easy for everyone, as such investments involve huge amount of money. Therefore, crowdfunding for real estate has become a trend now and you can find plenty of such platforms. Here most important is trust – do you trust the site’s method of selection and valuation of the project, security of funds, platform’s skills to manage all this process and other ingredients that are important for investment.
What is project TNCoin?
Project TN Coin is the world’s first tokenized real estate investment fund that is modern and advance, also they state that they are a commercial venture and plan to buy properties in the U.S., “not a philosophical attempt to create a new monetary paradigm”. The concept, the unique strategy of syndicating or crowdfunding commercial acquisitions are not new, but the concept of using blockchain technology is.
Project TNCoin believes that people who hold a large amount of Bitcoins, Ethereums or other cryptocurrencies, will be interested to diversify their holdings into alternative coins. The Fund considers its token to be a security token, meaning it is a financial security, therefore fund is subjected to security laws in the U.S.
The blockchain will enable real estate assets to be tokenized and traded similarly to Bitcoin. Property titles and ownership histories will be recorded on the blockchain, and the value of a property will be represented on the blockchain by a token. Blockchain will allow commercial buildings to have a digital address that contains information regarding occupancy, physical characteristics, legal status, historical performance, and financial position.
Furthermore, the tokenization process will also allow investors to exchange their assets with other investors and access the liquidity, when they want and need. By using the most innovative protocol, TNCoin tokens will have KYC/AML (know-your-customer) built into its smart contract to identify other verified accredited investors. Smart contracts will offer other automated features like disbursement of dividends, self-auditing and have built-in decentralized exchange (DEX). By using this technology investors can be confident in having the liquidity whenever they want or need.
All this will be built-into an easy and friendly user interface which can be accessed either by a desktop or a mobile wallet.
The TNCoin Token
TNCoin differentiates itself from other cryptocurrency projects by being a tokenized investment fund. This means that each token is analogous to a share in an investment fund.
The token is built on Stellar protocol that is an open-source protocol for exchanging money. Stellar connects Banks, payment systems and people around the world. TN tokens will have an initial value of 1 TN to 1 USD. The Fund may periodically buy tokens on the open market and burn them. “To burn” tokens means to permanently destroy them, and so reduce the supply of tokens outstanding. This is conceptually equivalent to a stock buyback in a conventional company.
The Fund believes that there may be times when the spot price of the token is less than the net asset value per token (NAVPT) of the Fund. When this is the case, the Fund will have the option to buy tokens on the open market and burn them. The Fund believes buying tokens on the open market when its spot price is less than the NAVPT, and subsequently burning them, is prudent capital management. 80% of the total tokens will be distributed to token holders.
Dividends will be distributed quarterly after the first twelve months of reaching the soft cap that is planned 10 million tokens equal 10 million USD.
Investors will be able to convert to XLM, ETH, or BTC, which can then be sent to your exchange. Only verified accredited Investors in the United States can exchange amongst each other.
ICO of this project was planned on 30th of July 2018 but then got postponed for one week. So, there is still time to dive into this project and get ready for investment! See more on their website http://www.tncoin.io/
What is TNCoin real estate target?
TNCoin will invest in multi-family housing in Tennessee and surrounding areas later will expand more broad in the U.S. The Fund will improve the real estate, refinance the equity, and reinvest the proceeds into additional properties. There are several potential properties that TNCoin team targeting already – apartment complex with 68 units, or 42 unit residential portfolio.
Market research highlights
Potential market research shows that Nashville MSA area is 36th largest Metropolitan Statistical Area in the U.S. and there is almost 1.8 mil.population. Since 60’s Nashville has been the second biggest music production center (after New York) in the U.S. But its largest industry is actually health care. Also Nissan North America moved its corporate headquarters in 2006 from Gardena, California to the Nashville suburb of Franklin, Tennessee. Other major industries in Nashville include insurance, finance, and publishing.
Learn more about them – Here