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Recently real estate investing is becoming popular as it gives a lot of profits over time. It is one of the ways to build wealth. Investors have some options to invest in this sector. However, there are a number of barriers that they are facing when entering traditional real state’s marketplaces. The problems are presented as follows.
Problems
As mentioned earlier, traditional real estate models have huge obstructions to entry. The barriers are related to complicated regulation and financial aspects that lead to unfeasible investing for most potential investors. If you want to have a real asset abroad, for instance, you have to incorporate a local entity as an investing partner in addition to the huge amount of capital needed to buy the asset itself. It happens because most jurisdictions restrict investment by foreign jurisdictions. Furthermore, there are statutory requirements that need to be fulfilled. These include tax, obligations, and many others that come with high costs. There are also barriers regarding the property funds type, limited choice, and access to capital. You also need to deal with different conditions of micro and macroeconomic in every country when doing foreign direct investment.
Solutions
Global REIT proposes some solutions to mitigate the risks and solve challenges on investing. Before discussing further about the solutions, let’s talk about the REIT itself. It stands for Real Estate Investment Trusts. It is a trust corporation that serves as an alternative investment vehicle in the market. It allows the finance income to be either owned privately or listed publicly. There are some main features that a typical REIT has. First, it is a platform that expands a long-standing investment portfolio. Second, REIT produces its income through rent of its owned-asset portfolio while the interest is generated from the sale of AUM. Third, shareholders will get 90% of income distributed by REIT. Last, REITs that are publicly listed are a liquid investment vehicle.
Global REIT will integrate the traditional REITs with blockchain technology. As all we know, blockchain is one of the freshest topics when it comes to the financial service industry. At the first place, blockchain was initially designed in digital money industry to create secure and anonymous transactions in cryptocurrency market. Nowadays, blockchain is not only specifically used in crypto projects but it is also used to facilitate transparency, cost reduction, and settlements in other various industries with an attempt to revolutionize or even disrupt the traditional approach.
The mechanism of the traditional REIT will be applied yet Global REIT will add some benefits. The additional benefits include future access to all its AUM, rewards points that can be used to use some limited services freely, global access to various assets, the establishment of Fund Management Income that benefits token holders, and monthly dividend payment.
In short, Global REIT, through its global real estate investment portfolio and integration between traditional REITs and blockchain tech, will provide much more advantages that the traditional REIT does. Global REIT will start attracting investors in Dubai, as the home base of the company, then it will expand the service worldwide soon.
Target Users
There are at least three users that become the main targets of Global REIT. The first one is, of course, crypto investors. They are the ones looking for steady once-a-month dividends and want to make an investment in real estate assets using cryptocurrency. Second, Global REIT is intended for real estate asset holders who look to exit into a liquid market in the crypto sphere. The other target user is REITs who wish to enter crypto domain with some benefits of an established framework empowered by blockchain.
ICO Detail
There are two types of tokens issued: GREM and GRET. Both of them are ERC-20 tokens. The accepted currency to purchase these tokens is BTC. The pre-ICO for both tokens already started on 1st May 2018. The closing date is scheduled to be on 31st May 2018. They have a different token price. GREM is sold in USD 0.070 per token while GRET costs USD 1 per token. After the pre ICO ends, the public ICO will begin. It will be conducted from 1st June to 30th June 2018 with the same price as in the pre-ICO.
The next article will discuss more information about the ICO sale. Besides, it will also show the roadmap and the future growth plan of Global REIT. You will also meet the team of the project.
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