Why this new real estate platform, which isn’t actually a real ico, could change the whole way of real estate investing.
As you all know currently the crypto market is booming. Especially in the latest days when it is connected to the Real Estate market, which is one of the biggest investment markets of the world. Real estate is more or less a safe market to put your money in if you’re looking for investment opportunities. Since January this month, new ICO’s about real estate came like rockets of the ground. This means that there is a tendence for investing cryptocurrencies in real estate. Shared ownership could be a new way to raise capital to fund your real estate. Today, the legal aspects about this future investment opportunity aren’t sure and stable yet, but Switzerland, US and The Netherlands are the first who are experimenting in this new concept.
What you see in today’s ICO’s is that they’re all more or less focused on the housing market. This is a safe and booming industry to invest in, because simply said, more people need a house, but there are so many other ‘’bigger’’ real estate opportunities to invest in. Why invest in just the fractional ownership of a house if you could also have the opportunity to invest in the bigger things, like hotels, office buildings or even industrial land for windmills all around the world?
Honestly, I think that the problem occurs because of the fact that some ICO’s focus themselves more on the platform instead of the projects. Yes, I agree, you need a working and good usable flatform to use, but what can you do with a flashy and fast money looking ICO if the projects aren’t that good? We can offer a lot of projects from trusted sources which are new in the cryptocurrency industry. The Real Estate market is always looking for new opportunities to raise capital. Working on this way to fund real estate projects could be a new way of investing. A good real estate platform will be filled from the start with potential investment projects while other ICO’s start with the smaller ones, like selling a part of your house (fractional ownership, E.G.). Yes, as an investor in tokens you need some security that you will have your money back with hopefully as many profit as possible, but why not investing in bigger and more secure projects using KYC for the legal aspects. Therefore, you are able to raise bigger amounts of money with the knowledge that you will make more return on your investment. A bigger project will at the end lead in more security, because there are more parties involved who want the best and who want the same thing: Getting a good return out of long term investment.
These new ICO’s in Real Estate (they’re actually still countable on all your hands and toes, but they’re upcoming and changing the market) all offer a fixed market cap in tokens in their platform without the knowledge what the total value of the tokens will be. I’m going to give an example about an ICO which I call for example HomeInvestCoin or in short HIC-tokens. The tokens in the platform are a fixed amount that will not change. This means they sell a part of it and you can invest in it. Simple as it sounds. But a short recap now. You also invest in the platform and in the real estate the platform offers. In your investment, it could occur that in the end the platform will run like a smooth German automobile. Sounds nice, but why not invest in the real estate directly instead of the platform+real estate? When the real estate is going well on the platform, the platform will also have the benefits from it of course. It is therefore a win-win situation. The HIC-tokens can be divided and fragmented in other sub-tokens for dividends. Looks perfect, but in reality, you won’t be happy if your HIC-tokens are all affected by bad investments because one project causes total damage to the platform. If one goes down, there is a chance that the other ones will follow soon. This means it isn’t stable enough and that is something you don’t want when investing.
The platform where all these things happen just needs to be a safety net for bad investments. Separating the projects from the platform could therefore be a possibility. Therefore a new example which I’m going to describe: MakeMoneyInRealEstate or MMIRE-token. I think that you better have shared ownership in the real estate projects instead of the total platform. If too many people are involved in the platform, it will be inefficient and much more difficult to have a consensus together when important decisions need to be made, like for example choosing the investment opportunities. Let me be clear, there is nothing wrong in the way how an ICO works nowadays. It just needs some improvements. Therefore new ICO’s will rise, like for example MakeMyMoneyInRealEstate-coin or shortly said MMIRE. This is a startup wanting to create fairness and more opportunities for investors in the whole market. They think that they can create a platform that doesn’t need an ICO to raise capital to fund the ICO itself. Instead, they’re planning to launch a platform straight away selling MMIRE tokens. With these tokens, you’re able to invest into Real Estate projects that have been audited by certified third parties. The MMIRE platform isn’t actually a ‘’real’’ ICO. It is a platform where different real estate investment opportunities are offered in form of an ICO. Therefore, every project you invest in is an ICO and every dollar invested in it stands for 1 MMIRE-token. On the platform, you will have a wallet where all your coins are stored and where you can see your investment opportunities. This means that simply said every investment on the MMIRE will have their own real estate invest coin.
In the future, we will release more articles and a solution regarding a real estate platform focused on blockchain.
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