Vladimir ShmidtICO team member replied on 6 Apr 2018
Hi Ilya!
Thanks for your opinion regarding Alt.Estate!
We believe that our approach to the idea of property tokenization is the most viable among all other options. We did deep research of the competitive landscape, you can see summary here:
https://docs.google.com/document/d/1Z56vh_Vu30KWhTkEfUkPvbupHZoi0Ks1qQEy2MhUhyQ/edit?usp=sharing
The property that will be listed on the Alt.Estate platform will go through due diligence procedures and professional appraisal process. We expect that institutional investors will account for more than 30% of funds raised for real estate investment (for example, according to this report http://www.ipf.org.uk/resourceLibrary/real-estate-crowdfunding-gimmick-or-game-changer-november-2016-report.html share of institutions in this industry varies from 25% in the UK to 73% in the USA) which means that quality control and track record are of the utmost importance for successful crowdfunding.
Regarding legal structuring of ownership on the first stage, we intend to use existing crowdfunding and real estate securitization models – primarily nominee trust scheme.
Example of such structure: crowdfunding for acquisition of the real property -> transfer of legal title to real property to SPV -> issuance of shares by such SPV -> entering into a nominee agreement with token holder, where the legal owner of shares (Alt.Estate) will hold such shares for the economic benefit of token holders.
Transfer of token from Alt.Estate to a token holder will constitute the proof of the conclusion of a nominee agreement. In the same way transfer of token from one token holder to another will prove conclusion of SPA or novation agreement between token holders. Acceptance by conduct is possible in most legal systems.
On the second stage, when the blockchain technology will be integrated into corporative legislation, tokens will represent the shares itself. This will allow replacing the contractual beneficial structure with corporate. For example, keeping the shareholders register on blockchain is already allowed in Delaware, USA.
On the third stage, when the blockchain technology will be integrated into real estate registration legislation, Alt.Estate will be able to completely integrate with state real estate registries. The progress is even here. Blockchain real estate transactions have been made in Vermont and Ukraine. Sweden is on the way to launch its real estate registry. UAE, Georgia, Russia consider the possibility to launch their real estate registries.
Thanks again for your comment, please follow us on these social media to be among the first to know the latest news about Alt.Estate platform:
https://facebook.com/alt.estate
https://twitter.com/alt_estate
https://medium.com/@alt.estate
https://www.linkedin.com/company/altestate/
Thanks for your opinion regarding Alt.Estate!
We believe that our approach to the idea of property tokenization is the most viable among all other options. We did deep research of the competitive landscape, you can see summary here:
https://docs.google.com/document/d/1Z56vh_Vu30KWhTkEfUkPvbupHZoi0Ks1qQEy2MhUhyQ/edit?usp=sharing
The property that will be listed on the Alt.Estate platform will go through due diligence procedures and professional appraisal process. We expect that institutional investors will account for more than 30% of funds raised for real estate investment (for example, according to this report http://www.ipf.org.uk/resourceLibrary/real-estate-crowdfunding-gimmick-or-game-changer-november-2016-report.html share of institutions in this industry varies from 25% in the UK to 73% in the USA) which means that quality control and track record are of the utmost importance for successful crowdfunding.
Regarding legal structuring of ownership on the first stage, we intend to use existing crowdfunding and real estate securitization models – primarily nominee trust scheme.
Example of such structure: crowdfunding for acquisition of the real property -> transfer of legal title to real property to SPV -> issuance of shares by such SPV -> entering into a nominee agreement with token holder, where the legal owner of shares (Alt.Estate) will hold such shares for the economic benefit of token holders.
Transfer of token from Alt.Estate to a token holder will constitute the proof of the conclusion of a nominee agreement. In the same way transfer of token from one token holder to another will prove conclusion of SPA or novation agreement between token holders. Acceptance by conduct is possible in most legal systems.
On the second stage, when the blockchain technology will be integrated into corporative legislation, tokens will represent the shares itself. This will allow replacing the contractual beneficial structure with corporate. For example, keeping the shareholders register on blockchain is already allowed in Delaware, USA.
On the third stage, when the blockchain technology will be integrated into real estate registration legislation, Alt.Estate will be able to completely integrate with state real estate registries. The progress is even here. Blockchain real estate transactions have been made in Vermont and Ukraine. Sweden is on the way to launch its real estate registry. UAE, Georgia, Russia consider the possibility to launch their real estate registries.
Thanks again for your comment, please follow us on these social media to be among the first to know the latest news about Alt.Estate platform:
https://facebook.com/alt.estate
https://twitter.com/alt_estate
https://medium.com/@alt.estate
https://www.linkedin.com/company/altestate/
