We have a real estate syndicate that we’re looking to expand with our existing portfolio and add new locations by issuing tokens to raise capital and expand the portfolio, including commercial deals.
I’ve been looking to issue fractional shares in our portfolio of residential real estate for a while. Now with crypto, we have Security-token-offering (STO) for an Asset-backed-token with real estate as the underlying asset, that earns dividends from rental income.
The primary money raised will be in issuing tokens to fund a pool of equity investments in cash-flow producing residential real estate in the Midwest U.S.A, and later commercial in Phoenix with high equity appreciation. But initially, since the focus will be on dividends, we will continue our strategy with tenant-occupied rental properties.
Ethereum ERC-20 tokens have high gas fees, as such even though they were the first to introduce smart contracts, it may not be ideal for the movement of funds, whether to pay dividends or for new investors who would like to participate in our token offering.
Tradeable on Binance intl/US exchange:
Binance smart chain has much lower gas fees. And BEP-20 tokens can be listed on the Binance exchange to be exchanged with other crypto pairs or USDC to send cash to you account like Coinbase Pro and convert to USD/dollars you can transfer to your bank account.
Unlimited supply:
We are looking for an unlimited supply, in that the primary market where we issue tokens will be used to acquire new properties, so that we do not dilute the existing dividends being received by token-holders. The secondary market, such as trading on Binance (intl) and Binance US exchange will then provide liquidity to members.
Dividends in token:
We expect returns before leverage to be 15 to 30% (cap rates / ROI) with blanket loans after $500k+ it goes to at least 40% cash-on-cash return. These fractional shares that can be purchased in the STO will not only provide liquidity to members but will be backed by the real estate assets and earn dividends from the rental income.
We will be issuing tokens on a blockchain such as Binance smart chain with low gas fees and instant execution, unlike Ethereum.
End-to-end Platform:
Some of the questions and requirements we have as we look for a white-label platform and STO development, marketing, etc, include:
1. Do we tokenize the properties individually, or is it going to pooled funds for portfolio that we use to invest/acquire more? Will prefer the later.
2. Do you have a-la-carte pricing for your services? Please send a quote…
3. Do you have any fees on assets under management (AUM) on your platform?
4. Do you have arrangements for custodial insurance like BitGo?
5. What does your platform provide and what else would we need to shop around for?