Would anyone invest into a farm/backpackers? (token backed by land)

[PatioCrasher]

I live in Sunny South Africa, and recently helped a friend build glamping spots on his land. He is already turning a decent profit from it as tourism is on the rise in these parts.

I was thinking of creating a token that would represent shares in a backpackers, whereby dividends would be paid out to token holders from the profits after running costs.

Land is relatively cheap ($100k for a few hectares) and building costs are pretty cheap ($5k per raised wooden deck with roof and glamping set up that gets rented out at $20 a night with about a 30% occupancy rate).

Would anyone be willing to invest in this or do you think it is not high enough risk / reward  ?

If anyone would be keen I would be more than happy to flesh this out more with a solid business proposal and full disclosure.

[dfd1]

If token represents land value it's mean one token holder can show up in your office and get 45.345 hectares of land for 0.45345 coin same day with no questions. Shares and dividents don't mean coin backed by land, it's mean coin backed by a paper contract. I would be interested if coin REALLY backed by land appear.

[PatioCrasher]

If token represents land value it's mean one token holder can show up in your office and get 45.345 hectares of land for 0.45345 coin same day with no questions. Shares and dividents don't mean coin backed by land, it's mean coin backed by a paper contract. I would be interested if coin REALLY backed by land appear.

How would they be able to claim so much land for such little token?

If the land was say 10 hectares and there where 100 tokens each representing a % of that land then the token holder would only be able to claim 0.1 hectare per token. And would redeem the token and I would have to burn it in that case.  This could work here as well but I guess the question would be, who gets which piece of land if they where to redeem? Would it be on a first come first serve type basis or I guess then I would need minimum requirement investment so that I can sub portion off big enough plots so everyone gets a fair deal.  

Yes you are right. The dividends would be backed by a paper contract stating profits would be split among token holders according to the percentage of the token they hold.

EDIT:  Also the paper contract could state that if investors do not ROI within say 10  years the land is to be resold as a whole and the proceeds split between investors. This way it could be partially backed by the land (As the land would be included in the contract) but as you say would not be backed as directly or redeemable for the land (sub dividing land legally costs a substantial amount of money as far as I am aware).

[dfd1]

How would they be able to claim so much land for such little token?

It's only depends on coin supply.
If there 2 coins at all 0.0001 coin can represent some square centimetre, probably one non divisible token can represent one non divisible unit of land

Who gets which piece of land if they where to redeem? Would it be on a first come first serve type basis?

I don't think so. It's probably better "from top left to bottom right on the map", or "from road to river" so last one get better land.

sub dividing land legally costs a substantial amount of money as far as I am aware

It can be more problematic, since foreigners supposed to have fair shot too, so I think long term rent can be an option, let;s say 50 years rent for token redeem.
The fun starts than some youtuber with his 0.075 coins get to the land and claim his 75 square centimeters and put his folding chair on the land, fun ends and token became a scam than some dude can't more redeem a token. Can be a good way to rent a land for much better price than neighbours and to make first physically backed asset for speculations in crypto space.

[PatioCrasher]

How would they be able to claim so much land for such little token?

It's only depends on coin supply.
If there 2 coins at all 0.0001 coin can represent some square centimetre, probably one non divisible token can represent one non divisible unit of land

Who gets which piece of land if they where to redeem? Would it be on a first come first serve type basis?

I don't think so. It's probably better "from top left to bottom right on the map", or "from road to river" so last one get better land.

sub dividing land legally costs a substantial amount of money as far as I am aware

It can be more problematic, since foreigners supposed to have fair shot too, so I think long term rent can be an option, let;s say 50 years rent for token redeem.
The fun starts than some youtuber with his 0.075 coins get to the land and claim his 75 square centimeters and put his folding chair on the land, fun ends and token became a scam than some dude can't more redeem a token. Can be a good way to rent a land for much better price than neighbours and to make first physically backed asset for speculations in crypto space.

hmm..  Yea interesting.  Then I guess for sure it would need to be non divisible so that each token represents at least a 100 square meters. (Or one 'glamping' spot)

I could do a 99 year lease on token redeem. That could work out.

Thanks for the ideas.