Original photos taken at property receipt in November 2016


Property and Offering Context

Our global vision to bridge real estate with blockchain technologies requires experimentation; And while that is normal for crypto, nobody can blame a homeowner for being skeptical at least. 

That’s why in our total commitment to the project we’ve always planned to put our own property on the line, as research grounds for what we want to do.

This way you know we are using the best research and criteria, while looking exclusively for the best outcomes for all parties participating. 

This is the first of a series of those tests, it uses the specific situation and context of the property to create a compliant path that allows it to be in the market when it wouldn’t be possible otherwise.

Although this is an experiment, the outcome can be a real transaction because the local process is backed by precedents, and is doing the right thing for a estate.

It doesn’t mix with blockchain directly at all (is optional even) avoiding to complicate everything unnecessarily. It also shields the buyer from the underlying legal process. 

Oh, and you can become an investor in this startup along the way. 

Super accessible flat unit of 1K ftsq in chill semi-gated community

$350,000,000Value in COP

Unique, affordable, and with high potential! Invest in this flat...

  • 1 bed
  • 1 bath
  • 968 sq ft
$350,000,000 Value in COP

Pioneering property PTPs in the local market. Supported by smart contracts globally.

This is a unique opportunity for foreign investors familiar with blockchain technologies. We are allowing them to acquire the property via a a digital Promise to Purchase, with prices that track the markets periodically; And when we say markets, we are talking about both the real estate and crypto asset markets. 

Since both hedge on each other while averagely tending upwards, its a safe investment option being supported globally by smart contracts, and locally by conventional legal mechanisms. Lets see how it works for this property in specific:

Property and Offering Context

The property is 25% of a estate currently in succession

But you are not messing with succession rights, you'll have no part in that. You are signing the PTP and committing the funds to buy this property with the possibility to sign the deal even before the sucession process finishes. This is legal and has precedents since we are paying the plaintiff directly, which is the correct thing to do besides being a requirement.

The property is embargoed

Not mortgage or debt related. Just a safety mechanism set by the succession judge aiming to push reluctant members to finish the process. Easily lifted by common accord of the parts, or directly by the judge if he considers this a better outcome for the plaintiff than a conventional bid, as it is the case.

Funds back the offering to the plaintiff exclusively

Funds are raised via an NFT and kept in a multi-sig wallet between us and the buyer. We use this locked funds to back the negotiations and buy the necessary rights from them. Although you are paying full market value, the final real cost should be lower due to negotiation and valuation.

Split excess funds

Negotiating a price locally, in addition to crypto valuation, and Forex rates, makes it very likely that there'll be excess funds at the time of settlement. Of those funds 50% go back to the buyer and 50% Return to the remaining owners. Earmarked to cover the legal costs, taxes and other expenses first.

Direct deal: No 3rd party fees

Since ARC is part of the estate, you are dealing directly with the owners even though we act as intermediaries too. That way we can clear everything locally and sign the purchase and sale promise to you directly as soon as there is no embargo in place. With actual transfer not tied to the continuing succession process.

Smart contracts support global access

Blockchain role is limited to the initial offering (via NFT) and the shared safeguard of funds for foreign buyers (multi-sig SAFE). Any buyer can choose and contract conventional financial instruments for this, and the remaining local processes would be unchanged.

Process expenses cover any penalty fee

The *Promise* in a conventional PTP is backed by a penalty fee in case the buyer wants to back down. This fee of 6% is baked in the initial TX creator earnings as our commission. So either way the deal goes, you have already covered your deal expenses or cancellation penalty.

Example split scenario

Option values

Snapshot: 23-07-18

Process Costs

At settlement time

Prop cost COP

$350,000,000

Prop w/10% off

$315,000,000 COP

Prop Cost USD

$86K @ $4,069/USD

ETH Value

$100,000

@ $2,173/ETH

Prop Cost ETH

Ξ 46 @ $1,876/ETH

Difference

+$95,000,000 COP


Buyer return

$47,500,000 COP

Returned directly. Could be used for reinvesting in the prop, or us.

Owners return

$47,500,000 COP

To pay legal, notary, taxes and other expenses.

ROI Comparisson

ETH Validator Stacking

Staking a similar amount of ETH in a validator node at snapshot prices yields this much ROI in a year.

Source: Ethereum stacking rewards ROI @ Blocknative.com

RE Valuation + Renting / STR

Yearly revenue projections. Values in Million COP.

No Data Found

Lower and higher tiers of valuation based on recent trend. Not including remodels.

No Data Found

Cumulative income based on reference market prices at 1st month. Includes taxes and maintenance fixed costs, but no initial remodeling and furnishing.

NFT Contract r1 is Live!

And blockchain is an optional part to allow global investors to access the opportunity, with additional upside to make up for the additional risk. 

If you already live, are visiting, or have entity presence in Colombia you can skip this part and contract the financial instrument of your liking here. 

The form might change, but underlaying process, intention, and destination of the funds doesn’t. 

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