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The idea is obvious: raise funds in an ICO and use them in a property buy-to-rent scheme, sharing the profit from rent using the rent money to buy back the crypto asset. Then ultimately reselling the property on the market if majority of investors votes so, and buying back the remaining coins.
The obvious problem is the trust issue: legally the property belongs to the coin issuer, (s)he could just run away with the money. But that would be the risk associated with any kind of crowdfunding, wouldn't it ?
Has anyone tried doing it? How did it go? What are the potential or real issues?
The obvious problem is the trust issue: legally the property belongs to the coin issuer, (s)he could just run away with the money. But that would be the risk associated with any kind of crowdfunding, wouldn't it ?
Has anyone tried doing it? How did it go? What are the potential or real issues?
That would be a good idea if you do it solely for yourself but if your asking some money to do it then it maybe suspicious act to do since people would provably wait for long time before the real estate properties price will rise and we didn't know on where to reach you up since we didn't know you personally aswell as we didn't know if you really buy some of it. So for this inquiry might better if you think for yourself and don't ask for funds since its not a good idea mate.
The idea of crowdfunding property investments sounds like a good idea, and could potentially be a profitable venture. This is true: "the property belongs to the coin issuer" (don't know if it's "legally" his though) and could very likely happen because of how easy it is to steal and transfer cryptos anonymously. However, if the creator can establish some kind of credibility (having a legitimate company that demonstrates transparency and that it has safeguards/legal procedures in place to assure the public that there is some accountability with regards to the funds), then I think the trust problem can be mitigated.
