I think this is where the floor price comes in. These tokens will bring dividends based on the rent. So the price of the tokens naturally should always be higher than the dividends x duration of time.
As an example if you get 5 cents for every dollar invested in a building, then it makes sense of the price of the token to at least that. That means if you buy the token for 5 cents then you will break even in 1 year, ignoring all the fees.

Because it would show that you are transparent and accountable. Because it is free for you to obtain and will take only a few minutes. It's not a deal breaker. It's just a token of trust for me.
I wanted to know what will be the ROI implications for the investors. If 25% of a building is bought with a mortgage, then REAL token holders could only invest in the other 75% of the building? 25% of the rent generated will be paid to the company or to the investors?
So you would agree that apart from cryprocurrencies there are no other real world examples of this phenomena?

Cheers

Hi Melissa,

Appreciate the active responses from the REAL team.

I have a few queries -

1) As of now what's available to the public and potential investors is the website, and few details of the members of the team. There's a 5 year operational fund plan that has been shown in the white paper, but no business plan. The company is hardly a couple of months old - and there aren't clear timeline goals given. After the ICO, within how much time can investors expect rental income, for instance?

2) Depending on where the REAL team plans on acquiring properties -there are going to be a lot of macroeconomic factors in play - since we are talking mid - long term investments. From what I understand a good portion of the team is from Spain, so naturally there would be inclination to invest in a comfort zone / known area. However how is the team going to ensure investments are going to be in areas where demand outstrips supply, to ensure capital gains mid to long term?

3) As I understand there's an agreement with a hotel chain, are agreements going to be presented to investors? How do investors know agreements are negotiated favourably for the investor - a hypothetical situation is there's a renter, a broker and an investor, the broker may give favourable terms in comparison to the local market to the renter and take a cut in the savings to the renter (say 20%), at the same time take 10% from the investor from the rent - how is it that fair play ensured?

4) As a potential investor my question is simple - why should I not invest in a local rental property and invest in REAL; other than the fact that with REAL I can invest a minimal sum that may not be the complete value of a property? If I can afford to invest in whole properties myself - what is the attraction of REAL to me? Am I not a target audience for REAL?

Is the REAL model tuned only to people who cannot afford to invest in complete properties themselves?

5) Another concern is REAL seeks a 400K ether hard cap invest (120 million US$ today approx) if REAL would assure potential investors that capital losses would be on REAL's account then I understand that some risk is going to be absorbed by REAL and that is a benefit to investors - otherwise REAL doesn't possess much risk since investments are made with OPM (other people's money) and at most the lose the profits they could have gained.

How can you allay this concern of investors - that REAL's risk in all of this is highly limited?

A very interesting project making use of blockchain in real estate ventures.A quick question, how do you intend overcoming the various laws governing real estate ventures in various jurisdictions so as to make the project successful no matter how hostile a place is to cryptocurrencies?

Thank you for your answers.

-Company is 2 months old, there has not been any fillings so far. - Are you saying the Certificate of Good Standing does not exists, because the website is offering me to buy it. Also the Register of Members is available for purchase.
-To maximize returns. We invest 50% of capital but get 100% of returns. We double the returns and it is worth it even paying the bank interests. - So if a property is bought 50% capital and 50% loans then how does this affect REAL tokens holders? The loan would be a liability in your accounts for which the bank must receive a monthly payment I assume. Will the REAL token holders be involved in this. Please clarify.
-I did not understand the question - REAL tokens will increase in value mostly because of its speculative nature. But the dividends payouts will stay mostly fixed. During the pre-sale 1 REAL token would cost around 1USD. Hypothetically the price could increase tenfold to 10USD in the future, but the payouts from rent would stay roughly the same. I am asking if there was or there is another asset that carries the same characteristics.

These are good news. Tokens will be listed for trading on other stock exchages? Which exchanges are planned?

I spent some time last night reading your Whitepaper and have some questions:

You say that 350K USD have already been invested. These were invested when the company was incorporated in Singapore, right?
Can you please provide the Certificate of Good Standing from Accounting and Corporate Regulatory Authority ACRA - this should be free for company members.
Tokens for economic rights - I want to know how are these rights enforced in case of a breach of contract. Will there be a contract between the investor and your company?
We are targeting 12-20% annual returns depending on the type of asset and market risk - Can you please confirm if this example is correct: If a property is bought for 1 million USD and I invest 100,000 REAL tokens then I will be receiving a monthly dividend of 10% (minus 10% fee) of the monthly rent.
Why are you using mortgages and loans to acquire properties? Isn't it better to pay them in full with the investment money, so you don't pay interest to the banks?
We expect that as our site becomes popular, and as our users start receiving regular income and profits on a monthly basis, they will want to acquire more REAL Tokens in order to invest in more Real Estate assets. This will cause the REAL Token to grow in value and price. - Can you give an example of another market where this is possible? – Buy assets that are increasing in value, but with fixed dividends payouts.
In the rare case of losses the REAL fee won’t be applied and the user will lose some of his invested Tokens. User won’t ever lose more than his invested Tokens. - Can you clarify this point please. If my REAL tokens investment in a building is 10% of the total price and you sell that building at a loss, then I will receive my tokens back minus 10%? Is it possible that a user can lose all of his invested token in a building?
The Reserve will not be accessed for a minimum of 4 quarters (12 months), and will be re-locked or burned – Who decides that? You or investors by voting?
Is the floor price same as average annual returns?
Thank you.

Only 2000 views, you should try targeting bigger news outlets, like techcrunch. If this will be big, think big!

please more detail. how much stakes do we earn a day by joining your group chat?
i have joined both group chat.
what wallet do you use?

Would you launch with a secondary marketplace up already? That would be really interesting.