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August 20, 2017, 03:56:43 PM |
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Hi,
I'm in the construction industry. We somtimes get a syndicate together to develop a piece of land, but 6 otr 7 people only get small projects done.
In Australia, large developers are taking over; there are fewer small and medium size developments these days as new developments of 400, 700, 1800 and even 3000 apartments are spawned more frequently.
The minimum size for a profitable development nowadays is 20+ houses on a piece of land. Anything smaller is you're just keeping yourself busy.
The construction cost is pretty well determined, we estimate it very accurately. The variable in the equation is the land + earth moving + economy of scale: houses on remote land will not sell for much and terraformation costs more, but the land itself is dirt cheap. On the other hand, land in prime location is very expensive and the assets you build on top get very good valuation.
In legal terms the sydndicate is a Unit Trust and ther trustee is the development company for the project. I think you get the picutre where this is heading at.
I do not have enough time to learn how to create a contract on the Ethereum chain nor do I event want to, jsut in case I forget a line of code and everyone loses their money.
How much does it cost to get a professional to set up an ICO that will act as a unit trust and disburses payments?
There is no magic/funny money: no Pre-ICO discounted offers of any sort: just accumulation of expression of interest backed up by funding and the size of the developmet is selected based on the funds received. The balance of the money after construction completion (occupancy certification) will refunded as step #1, and in step #2 payments will be distributed as the houses are sold, or if there is significant interest then the trust will retain ownership of the assets for long term holding. This results in lower initial return but much more cumulative revenue than sale upon completion.
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