Read the white paper yesterday for Property Coin (PCX). Noticed some items to consider before I invest my IRA in this coin.
Andrew was kind enough to point out their thinking.
My first question was whether there might be 'hidden' investor problems in the lack of transparency. What concerned me about this $50 million fix-n-flip fund was a projected average $5,000 'loan fee' to Aperture for every home purchase. It's my experience, Expenses are the killer of all rental/flipping profits. What's concerning in the blockchain/crypto world is when management drains off of investor profits to the originator of the coin.
As I understand the whitepaper, Aperture claims this 'loan' is to account for BITCOIN-TO-USD conversion...but they also allow for token purchase in USD. Sounds like a way to pay staff and HQ on every transaction. Andrew stated however, "Those fees are intended to cover our costs of managing the portfolio of assets, at what we feel is a cheaper cost than can be managed by a cadre of third parties (based on our experience in the industry).
As a rental property owner myself, I get that finding, buying, repairing, listing and selling a flip property takes a lot of time. I get it. And a $5K fee per house is less than a good realtor would cost you. Nobody works for free.
But if I was a betting man, I would keep an eye on Aperture's expense ratio to make sure the PCX Coin expenses remained in line with US industry averages. Having done 3,000 properties, Aperture is clearly not trying to capture additional fees and line their pockets. Rather, they appear to be assigning a cost ceiling for transaction expenses. Sounds like a core competency for Aperture. #PCX #AndrewJewett #EtheriumCoins
#PCX
https://imgur.com/lNy7MW4
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