Is blockchain the future of real estate transactions ? So far, only a few contracts have been concluded via Bitcoin or other forms of cryptocurrency; however, with the offer that is being introduced, that can change quickly.
Aperture Real Estate Ventures, a technology for real estate and an investment firm based in Los Angeles, California, claims that it has launched the very first property-backed digital currency, Property Coin . Aperture's model is based on the yield of coins to strengthen its real estate investment activities, which focus on acquiring distressed dwellings and rebuilding them, as well as writing loans to smaller investors for the same purpose.
"Unlike many cryptocurrency offers, Property Coin's proposition is simple," said Andrew Jewett, Aperture's co-CEO, in a statement . "One hundred percent of the net proceeds from the sale of real estate coins will be used to invest in properties and loans identified by our own software and our experienced team, which is why Property Coin is designed to be 100 percent supported by real estate. , meaning that each coin holder has a fractional economic interest in Aperture or affiliate's investments with the net proceeds from the sale of real estate coins. "
When buying real estate coins, investors receive not only a fractional percentage of the assets that are owned of Property Coin and its entities, but coin holders also own 50 percent of the net profit of the loan and investment property.
Built on Ethereum-another blockchain-based cryptocurrency not far behind Bitcoin in popularity-Property Coin is fully supported by US real estate assets. Aperture claims that all investments will be made using the experience of Wall Street and real estate investment professionals, while integrating industry technology driven by data science.
The public sale of Property Coin began on 26 February for the first offering of 50 USD each. , or through the equivalent value of the Ethereum or Bitcoin currencies. Purchases of real estate coins are limited to authorized investors who purchase coins for at least $ 1,000.
"We are delighted to be able to offer this proprietary formula to cryptocurrency investors seeking access to a diversified, technically driven professionally managed formula portfolio of real estate assets through Property Coin," said Matt Miles, Aperture's co-CEO .
Of course, volatility remains a problem with blockchain technology. Aperture relies on its reinvestment strategy to add token stability and create a renewed interest in the property investment market.
Keep track of RISMedia for more developments. Liz Dominguez is the associate content editor of RISMedia. E-mail her your real estate news ideas at email@example.com . For the latest real estate news and trends bookmark RISMedia.com.