/biz/ - Business & Finance

Properties on Defi, I will own Detriot soon

Tokenizing real estate all over the world allowing investors for example bunch of jeets in country farming rice can invest $50 in real estate in the US.


Right now only outside US can invest unless accredited investor.


But imagine all the other shit that can be split with contracts, people in debt can sell 10% of their salary for payment...slaves are back in town

>>18841373
Wtf is this? I can buy real estate with ethereum and defi and never have to interact with tenants? Explain to me slowly.

t. brainlet faggot

>>18841765

No they use property managers, so never have to interact with tenants.

US based company and have office is US. They buy up property in full so no mortgage. Then they file separate LLC for each property.

Tokenize the property with bunch of tools and uniswap so they automate the shareholders of the LLC.


For example this property in picture there are 4000 tokens. So if you own 1/4000 you get 1/4000 of the rent collected each month after the usual real estate expenses (property manager, taxes, etc.)

They pay out daily which is kinda retarded because it would be better at the first of the month in one big payment but instead spread it between the month.

Good access to properties that are grossing 8-12+% annually without having to put a lot down.

And they keep a reserve on compound incase of property damages or mishaps so they have that end covered.

>>18841765

This is a good explanation from them:

https://www.youtube.com/watch?v=JXNm3Jnqpaw

wew lad actually interesting thread

>>18841373
ETH is the new bitcoin. Bitcorn is a jew coin and going nowhere, eth is peoples coin

Tokenized real estate is a great use of ethereum, but I wonder if the additional expenses and risk will be worth it instead of just staking. 5 percent yearly returns on staking will make Ethereum attractive to large investors, as they usually look for stable returns in that range. In order to push down staking rewards to that range, between 10 and 30 million ETH would need to be locked into ETH 2.0 validators, which represents 10 to 30 percent of the coin’s total circulating supply. Locking up that much of the circulating supply creates a supply shock, scarcity will create a price spike. The price spike will push those same investors into buying more ETH in order to stake more of it, which would, in turn, create a ripple effect causing a general market upturn. The FOMO among retail investors will reach its peak and begin buying heavily into ETH to make sure they don’t “miss out,”. Unlike the bull run in 2017, this one will happen much faster as there are more fiat on-ramps available and hundreds of millions of verified users on major exchanges.

>>18843960
So u can read Twitter too I see

>>18842030
>They pay out daily which is kinda retarded because it would be better at the first of the month in one big payment but instead spread it between the month.
Why? It's the same money. I'd rather have it as soon as possible.

>>18841373
I've heard of this idea with dollars before but heard it didn't work so well. This sounds like a really good application for blockchain. Keeping an eye on this.

What kind of cuts do the property managers get?
Since when does renting give >10% a year? Literally no maintenance done huh?

>>18841408
you could buy hundreds of houses in detroid for pocket change

>>18842030
Sounds like an even more convoluted version of a mortgage backed security

>>18841373
1024 ETH here. Going to be unbelievably RICH.

>>18844476
2^10

A man of taste I see.

>>18841373
So you don't personally get to benefit from the best things about investing in property??

LEVERAGE AND CAPITAL GROWTH

The bank will lend you 75% of an investment and you get to keep all the profit on the capital growth whilst some wagekek pays the debt off for you each month.

>>18841373

What is the advantage of this over investing in a REIT?

>>18844763

Personally If I have the capital of course buying a property with management in place is golden. But most people especially those who don't even have access to US exchanges this is a bridge between them. Imagine all the people in countries with already fluctuating unstable currencies who hold onto crypto as main store of wealth can now put that into real estate

>>18844332

This is for:
https://realt.co/product/10024-28-appoline-st-detroit-mi-48227/
Main properties in Detroit for cheap labor on the management side, and most are section 8 so rent is guaranteed by the government.

There was a debate I read some time back where they were discussing different tenants sec 8 vs regular and it was pretty minimal.

To qualify as a tenant for sec 8 housing it's strict set of rules for at least 5 years. This way your leading at the dirtbags already.

Sec 8 rent is still being paid in times like this.
I think the plan is to take outsider money like any other corp and just rebuild and raise the area in especially shit holes like this where there is a lot of money to be made as long as more properties are renovated and you bring up the town/city value with it

>>18845137

This is basically just another way of doing private deals.

With reits your dependent on the whole portfolio vs one property or however many you choose.

Basically if you want more potential alpha by looking at the individual deals and if one looks good taking a swing at it.


And for people living in shitholes who don't even have access to an exchange or US equities I think that's where this will shine.


Something like this you don't hope it happens in your area because investors driving up the real estate in good areas but for somewhere like Detriot I would happily invest so that it can build back up to a living state.

I think they are going to do Florida deals and potentially Texas aswell

>>18845389
>>18845590
>>18845734
I feel like this use case might somehow enable the creation of white only enclaves.

>>18841408
tell me about providing pool liquidity on uniswap, as a liquidity provider you prefer price appreciation, depreciation or irrelevant as long as there is volume? if you have any reading you recommend I would appreciate a link

>>18844448

The property is bought outright and then put onto the exchange. For example 4000 tokens once on the exchange and then it is sold first come first serve.

For each individual property a LLC is formed. Then for example the 4000 tokens will equal the amount of shares in the LLC. So if you have 1000/4000 tokens you own 25% of the LLC which owns the property outright.

There is no debt involved and your not financing a property. You own the portion of the property.

I'm working on a similar concept. It's always been a dream of mine to create a fully autonomous decentralized micronation. I am tokenizing citizenship similar to estonias e-residency program , it will be an excellent tax strategy and have many other benefits.

We are purchasing this to start, but will eventually have larger more established floating islands.

https://www.yachtworld.com/boats/2009/fisherman-s-paradise-hotel-barge-2860786/

>>18841765
Never trust eth shills.
They make it look obvious and simple.

It's always super complicated and risky.

>>18846009
So like cooperative housing?

Why invest in ETH instead of LINK?

>>18846310

Interesting.

Would you be a member of this micronation? How about policies/rules/laws.

Do you already have a group already interested or will it be people who want to start a new one?

Actually a cool idea, think about this all the time. Maybe it's one of the only ways we can start a settlement without outsider legislation interfering. In the ocean.
Been trying to find this video of very self sufficient smart cities with apartment prices of $500 or less. It was for about pop size of 50k. Something of a happy medium between your idea and the hell hole life can be now

>>18846771
LINK is just a json parser, Eth will become the leading Turing complete platform with more and more adoption to come