Reimagine real estate ownership
de
REITs
Concept combines the Real Estate Investment Trusts (REITs) with tokenomics and advanced governance models.
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No utility bills, taxation, property management, and renovations
No complexities with real estate in different countries of the world, for example, the restriction on the purchase only for local residents.
Transparency of real estate markets and liquidity of objects, without the participation of agents
Easy to move to another apartment in another part of the city or even the world
How can I own properties world wide hassle free?
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deREITs as a new solution
deREITs expand on this concept with tokenomics and advanced governance, bringing transparency and accessibility through fractional ownership and tokenization.
Tokens represent real estate shares and enable easy transfer. deREITs utilize blockchain technology for efficiency and transparency, revolutionizing traditional real estate ownership.
REITs are investment vehicles allowing individuals to invest in real estate without direct ownership. They offer benefits like rental income and diversification.
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Market overlook
Today, U.S. REITs own nearly $ 4.5 trillion of gross real estate with public REITs owning $ 3 trillion in assets
As of march 2023 ENBD REIT had $ 179m in NAV with dividend on NAV of 5%
realt.co — US based community driven joint investment platform levereging DLT techologies as of June 2023 had $ 89.5m AUM with annual yield of 10.4%
With management fee of 2% we are talking about $ 60 billions of income
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Benefits of deREITs
Tokenization allows for increased liquidity, enabling investors to easily buy and sell their shares in the real estate portfolio.
deREITs promotes diversification by allowing investors to access a wide range of properties and locations, reducing risk.
deREIT’s tokenomics and advanced governance mechanisms ensure accessibility, making real estate investing more inclusive and democratized for a broader pool of investors.
Use cases
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Pros:
Cons:
Instead of saving up for an initial deposit, waiting for mortgage approval, undertaking a design project, and renovating a property, an individual has the option to become a temporary resident by paying monthly.
Additionally, in the event of an emergency requiring funds, the person can sell any portion of their assets without experiencing any significant changes in their lifestyle.
Personal residence
They can ensure that the place meets their needs and then start acquiring shares in the property, using them to partially cover their rent expenses. Gradually, as they acquire more shares, they can eventually cover their entire rent with them. If their family situation changes, they can move to a larger flat and continue using their shares as a payment method.
Transparent market pricing of property
Ease of making decisions without decade long commitments
High liquidity
Better value\costs due to a large scale of operations
Higher minimum expenses for property servicing.
Higher personalization costs
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It is possible to create a diversified property portfolio across multiple countries without fully owning a flat in any particular location. This allows you to avoid the complexities associated with local specifics such as tax obligations, utility bill payments, and maintenance. Instead, you can enjoy the comfort of living in different places by utilizing storage spaces to keep your personal belongings in each country.
By ensuring you have secure accommodation in advance, you can plan years ahead. The revenue generated from your various properties can be automatically directed to cover the expenses of your current place of residence. Depending on the regulations of each government, you may even become eligible for a residence permit through this arrangement.
Digital nomad
Pros:
Cons:
Personal freedom
Better cost than Airbnb
Feel yourself local without government routine
Capital efficiency
Property might be occupied
Rent revenue ratio fluctuations
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Pros:
Cons:
At present, there is a lack of a comprehensive platform that offers reliable, transparent, and diversified investment opportunities across different regions of the world, allowing individuals to engage in asset government proposals and voting.
Each country has its own distinct set of rules and regulations, with some properties being off-limits to foreign ownership. Furthermore, the transparency of a management team’s past performance is often questionable, but is crucial for revenue stream.
Investments
High liquidity
Low threshold and ease of participation
Financial performance transparency
Tax efficiency
Less regulated than publicly traded REIT
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While deREITS offers many advantages, there are ponetial challenges and risks to consider. The tokenization of real estate introduces regulatory and legal implications that need to be navigated.
Additionally, the volatility of cryptocurrency markets may impact the value of deREIT`s token.
It’s crucial to address concerns around security, transparency, and investor protection to build trust and ensure the long-term success of this transformative approach to real estate ownership.
We are planning to develop public centralized Cosmos SDK compatible blockchain infrastructure to limit financial risks of hacks, user or technical errors. As well as provide guaranties to outside DeFi ecosystems, so they can leverage our solution.
Potential Risks and Challenges
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In the realm of deREIT, it is imperative to possess a deep understanding of the legal landscape and adeptly navigate regulatory frameworks to ensure unwavering regulatory compliance. Given its relative novelty, deREIT encounters challenges with regards to regulatory frameworks and requirements.
However, by forging close collaborations with legal experts and maintaining an unwavering vigilance towards evolving regulations, real estate professionals can deftly navigate the intricate web of regulatory considerations and fully leverage the boundless potential of deREIT.
Notably, the United Arab Emirates (UAE) is currently actively developing its regulatory framework and demonstrates responsiveness towards feedback, which presents an opportune moment. However, exploring alternative jurisdictions could yield heightened financial efficiency and fortify investor protection.
Navigating the Legal Landscape
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It is expected that the market will reach its peak around mid-2025. This presents a favorable opportunity for deREITs, as they can offer a gateway to a less volatile market and contribute to a more comfortable lifestyle. By successfully launching a Minimum Viable Product (MVP) and capturing this liquidity, we can generate sufficient revenue to cover compliance costs, which are estimated
to be at least $ 1 million per year. Achieving an Asset Under Management (AUM) of at least $ 50 million will be necessary for this purpose.
to be at least $ 1 million per year. Achieving an Asset Under Management (AUM) of at least $ 50 million will be necessary for this purpose.
During the latest bull run, the stablecoin market cap reached a peak of $ 160 billion.
If we can capture just 0.1%($ 160m) of this value, it would be sufficient to attain profitability for our venture.
Why now?
The Bitcoin halving in spring 2024 is anticipated to initiate the next bull run, bringing increased liquidity to the cryptocurrency industry.
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Road map
2024
2025
2026
2027
PreSeed funds rising
Tech MVP roll-out
Property acquisition
PaaS development
Core team hiring
Seed funds rising
Development of governance UX
World wide expansion
Tech MVP building
Investment structure spinup
DeFi tokenomics
Product public token offering
Client acquisition
Liquidity mechanics
Founder
Having graduated from university as a software engineer, I have accumulated over 10 years of experience working in various IT domains, including system administration, full-stack development, system integration, 3rd line enterprise support, enterprise Proof-of-Concept (PoC) blockchain research and development, as well as analysis in crypto investing. My journey into the world of cryptocurrencies began during the era of Bitcoin GPU mining in 2011, and since then, I have consistently viewed it as both an investment opportunity and a means to enhance my lifestyle.
Aleksei Doroganov
Key expertise:
10y Software engineering
I firmly believe that decentralization and transparency are crucial elements for the long-term sustainability of any complex system. This belief motivates me to seek instruments such as deREITs to incorporate into my investment portfolio.
+10y Crypto native
+5y Accredited investor
+2y Digital nomad (more 8 countries)
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Who we are looking for?
For pre-seed phase:
Seed phase addition:
Advisors:
3−5 full stack software engineers to implement tech MVP
Real-estate agent to build internal expertise and liquidity provisioning strategies Chief compliance officer required by regulator for fund operation
Government regulation relations
Real-estate developers relations
Real-estate markets
Local banking
Lawyer who will be responsible creation pf legal compliance framework, client interest protection and communication with government entities
Marketing specialist who is going to build public relationship