Hi REALISTO,
Thank you a lot for your comprehensive reply. You indeed put some light on those scenarios. I really hope you will somehow incorporate those information into your whitepaper, as I think it had some gaps in those areas.
I have some follow up questions for you
It would be great if you could provide your answer for those as well
1. As far as I understand, Initial investment for both Core & Opportunity Pools will be reinvested over and over again into new real estate deals (from which ROI will be given to REA token holders). Am I right? If so, how long such process will keep going? Ad infinitum or maybe some limited period of time? How many "investments" do you plan to have
within one year? I know it depends on the project, however some average value would be great.
2. On your application mockup there is "running time" parameter of an investment. What does this parameter mean exactly? Is a time between buying an estate and selling it
(and consequently expected ROI dividends)? Or does it have any other meaning?
3. How ROI dividends will be payout in a scenario of selling an estate and renting it? I believe that those two are quite different scenarios from the ROI and return point of view
4. Let's assume that we have a Founder who starts crowdfunding on your platform. We rise money, mint some new Tokens and buy the estate. After the first investment is finished, Founder use initial investment to make another one. What is the use of Tokens in this phase? Can Investors still vote for the next investment or maybe now it is all the Founder decision? What will happen if Founder decide to not re-invest initial investment into new estate? What will happen will all that money?
5. If a Founder, re-invests his initial investment (let's say it is named "phase two") does he still have to pay fees on your platform? Or do fees apply only on the initial/first/phase one investment (the one with the crowdfunding)?
6. What kind of security mechanisms/guarantees do you provide so that money from the estate sales/renting will go back to blockchain (ETH for token holders)? What are the security mechanisms to prevent founders to just run away with earned money or to forge the documents and give back smaller ROI than it really was?
7. Last but not least. Do you still need Polish translation for your Bounty Campaign
? If, the answer is "yes" I would gladly prepare one for you.
Thank you a lot in advance
Best Regards
Thank you for your further questions
1.The funds from the Core Pool and Opportunity Pool will be reinvested continuously, the number of individual investments depends highly on the capital raised in the ICO, we will use leverage to enlarge the size of our portfolio as well.
We aim to get a good mix between cash-flow properties with longer holding times and short term refurbishments to get an attractive ROI mix.
2.Projects will have a predetermined runtime until the Project is successfully completed. There can be projects with shorter runtimes like flat refurbishments and projects with longer durations i.e. cash-flow residential/commercial buildings with an exit in a few years.
3. If the project is only acquired for the purpose of developing and then selling it, the focus is on a high sales return - Investors who have invested into those kinds of projects will receive their returns upon the sale of the property, if it is a core-Pool/opportunity Pool property, the initial price of the building is re-invested. If it is a third party project the full funding amount plus the agreed upon returns will be paid out to the investors.
If the project is a cash-flow property with an exit in a few years to token holders will receive the monthly returns from rent/leases and at the time of the exit the returns from the higher sales price compared to the initial price.
Investors can choose if they prefer constant payouts or rather have bigger returns but more time between payouts.
4. Before a project by a third party expert is launched there has to be an exact business plan of what he plans to do, either he wants to realize a single project - after completion all the funds invested are paid back. Or he wants to launch his own "fund" where he manages a portfolio on behalf of his investors, even then there will be a planned exit or several optional exits for the "fund". Since we take measures to secure the funds from the investors against misappropriation with escrow,trusts and holding companies the investors can rely on the experts to realize their projects according to the plan.
5. If the real estate expert launches a new project he will have to pay new fees. (As i noted earlier the fees will depend on the individual projects/plans)
6. We do implement a third party escrow/admin who offers a public data room where everyone will be able to track FIAT account movements, in and outgoing. Furthermore for third party experts we will set up trust/holding companies which will hold titles for the investors. We try to minimize the risk of losses as much as humanly possible. Also other local experts will check what the individual project managers are doing.
7. We sure could use a polish translation if you can get the announcement if the polish board as well
