Your pitchdeck speaks about an LLC as the owner, which is then fractionalised into NFTs. So, I’m assuming you want to do this in the USA? (LLCs are known under other names in most other jurisdictions.)
The NFT shall really be a fraction of the company? No “It’s just a utility token!” shenanigans? Then, each of these NFTs will probably have to be a registered, regulated security, won’t it?
(Which is not only a bad thing – bureaucracy – but also a good thing – as an investor in something in the real world – real estate – I want to have some guarantees that a blockchain will never be able to give me.)
The LLC owning the property seems to be only a financial construct. So, Fraction Estate will have to do the property management – contact with the tenants, organising repairs, cleaning, renovation, … Do you have experience with that? Will the objects be managed more in a property shark or more in a responsible landlord way? Or can the NFT holders vote on it?
Hi, and thanks for replying.
Fraction.Estate will be located in Norway.
so our main Company is a AS. but we will invest in Real Estate all over the world. so different types will occur. since its an English presentation we have written LLC for people to understand.
Our utility token is just a token to raise funds for the project. pay out rental yield and buy/sell function of our NFTs. The NFTs will defiantly be a Security. The good thing is that we are located in Norway. Our law books dosent fill up a whole Library, like in the US. and much easier to be compliant.
On the legal side, I’m no expert that’s why we’re using Ernst and Young as legal consultants
The LLC/ AS will be held by Fraction Estate and the NFT will be a Contract between Fraction Estate and you as a investor that gives you voting rights and revenue rights over the company that holds the property. All decisions that need to be made like Rental price, renovation, kicking out tenants because of lack of payment. increasing/decreasing maintenance fund. will be done by a DAO structure.
Fraction Estate will have no owner interest in the property. and will mainly make its money from property management.
Personally I’m a Enterprise Project leader. and own a few rental properties myself. But when the project gets some traction. We will hire Spesialists in all necessary fields.
we are in development but we do not have a working product yet. the marketplace will be launched around Q3-Q4 2023. token presale is for funding the project so we dont need to get alot of investors. this is to hold our property management fees as low as possible.
Investors always want a piece of the pai in the end. understandably