ReitCircles is a platform that enables individuals and corporations to monetize their equity in real-estate holdings in an international open market by selling partial ownerships into their assets without losing control over the assets.
ReitCircles is a platform that makes any real estate accessible to global markets for investment. Equity owners can raise cash by selling partial stakes without losing control and have the option to buyback. Real estate agents can use this platform to create a global business.
Currently, the owners must sell the entire real estate to raise cash. ReitCircles enables the owners to sell partial stakes into their equity to a global market. Global markets can provide better prices at higher liquidity. Owners won’t lose control over their property while retaining the option to repurchase it.
Suppose a couple with kids moved into a new big house and face unplanned expenses. They have equity in the home but cannot tap into it for cash without refinancing it at a higher loan. If they are out of a job, then refinancing is no longer an option. Personal loans can carry a high interest rate, and the principal must be returned in a specific timeframe. If they host their house on ReitCircles, they can raise capital by selling a small stake into their equity. After that, if their financial situation improves, they can buy back the equity on the platform.
The owner who is selling equity or raising funds owns the residential rights.
Yes. The owner can sell up to a maximum of 75% of his unencumbered equity.
No. As long as another partial owner of the equity exists on ReitCircle platform, it can only be traded at ReitCircle. If the owner has chosen the buyback option, that option must be exercised to first end partial ownerships on the platform.
Yes. The owner has a buyback option provided he chooses a fixed period for this buyback at an agreed-upon appreciation rate.
All users undergo the KYC/AML process before transacting on the platform. A locked account with the amount reserved for the bidding is locked in a distributed manner for all the investors. This is mandatory for participating in the auction. Additionally, insurance coverage can be purchased on the platform as well.
The owner can list the assets at the desired price and change it. The owner can also allow bidding until a hidden reserve price is reached, at which point the transaction goes through. Finally, we provide a recommended price based on supply-demand data for similar assets.
The minimum offer can be up to 0.2% of the asset hosted on the marketplace.
Every bid has a price and a duration. Once an investor has placed a bid, the funds are placed in escrow until the bid’s expiry. A cancellation bid before the expiry will incur a penalty fee.
Sell to another investor in the marketplace.
Once a listed asset has been traded in the marketplace, the terms and conditions are fixed. If the owner upgrades the house and improves its value, he can relist his unencumbered equity at a higher price. It is in the owner’s interest to keep the details regarding the property constantly updated on the platform to allow better pricing for any future sales, thus benefitting all investors.
Yes. The partial equity owners won’t have residency rights to the property
Sellers and investors are responsible for tax compliance.
Traditionally, regulated financial institutions, escrow agencies, title insurance, county records, and notaries played the role of trust keepers. They ensured that the financial system and real-world assets are transacted and recorded in an approved way. Blockchain technology rigidly enforced that trust. As a result, lower costs and faster settlement of transactions enable a global marketplace for all real-estate assets. The unit of value used on this blockchain is called a Token. And using this value unit, we can now transact real estate assets between buyers and sellers. This process is called tokenization.
A blockchain is a chain of software blocks where each block contains a record of value transactions happening on the network. The creation of each block is governed by a mechanism known as proof of work (POS) or proof of stake (POS). In POW, we solve a mathematical problem, and the one who solves this the fastest is granted the right to create a block and insert the transaction inside that block. Furthermore, each block is linked to the other by a hash of the content of the other block. In POS, the blocks are verified by a group of actors (computers in the network), and the selection of these actors is based on the amount of tokens (stake) they hold. Both these systems embed Trust via a chain of transactions, and this chain continues to become more robust, over time, against attacks and manipulation. That is why even though the chains are open-sourced, and data is visible to the public, no one can change the content of these chains. And since Trust can now be delegated to the chain, intermediaries like banks or notaries are no longer needed. This trust disintermediation is the foundation of web3.0, and is explained in another article.
Not now, but eventually, the protocol uniformity will make this possible.
As per country KYC/AML requirements, we will identify the person buying and selling on the platform.