Looking to issue a Real Estate backed asset



  • Hi all,

    I love BURST. I've been mining for almost a month now with 23.4 TB going on 25 TB. I love mining this coin but I want to do more with burst and want to use burst's collective purchasing power to give back to the community. I'm aware a lot of people are reluctant to buy new assets with all the scams going on but I still have to try.

    I am looking for investors from the community in order to start the first Burst real estate fund and real estate management company. The details are yet to be determined and there must be an accumulation stage in order to start buying our first properties and cover setup costs. The said properties would then be put up for rental and payment accepted would be BTC, Burst or Cash with an incentive to use Burst as means of payment (reduced rates, bonus...). The properties could also be sold for profit at any point in time. But in my experience, recurring revenue is a great business model and real estate is a solid investment less prone to market variations (like commodities and stock market)

    This would be a cooperative effort and profits would be sent back to investors on a monthly basis in Burst. Profits would be divided as follows (for example): 25% transferred into the management company for maintenance, administration and tax, 50% transferred to the investment company for future investments & 25% back to investors. Since the properties would be purchased solely from asset sales the companies would be debt free. This is but an example, the goal is to grow this fund as much as possible. The fund could also leverage existing owned properties to finance future properties, so on and so forth.

    Of course, the value of Burst could be an issue so I'm assuming a minimum value of 50 Satoshi for each Burst and an average of 100 Satoshi. I am planning on issuing 50,000,000 shares of this new asset for initial funding with no deadline. Of course other details still need to be worked out but I wanted to get the community's appetite for this before going forward with the issuance. The higher the value of Burst upon completion of the accumulation phase, the better.

    This is to further boost Burst visibility and value to this great coin. Backed by Real Estate.

    Anyone interested? Any thoughts? Concerns? I want to iron out ALL the kinks to get this going as well as getting validation from my Burst peers and more experienced Burst veterans.


  • admin

    In general, sounds great ... you should give it a try and do your best to gain trust of investors ... only because some Assets where/are scam, should not stop you from starting.
    But as far as i can see, this is your first post here, so i personally would not trust your asset per default.



  • @KingCash I think it's a good idea but i think this is too soon for something like it, and i'm not talking about being soon for you to start an asset since you just registered 2 hours ago (although is too soon for you aswell), i am really talking to be too soon for Burst, i think an asset like this should be made when Burst Capital is a lot higher, right now the market capitalization is just too low (at this exact moment the Burst market capitalization is just 1,458,789$) so if you retrieve let's say just half a million dollars you are dumping the burst price for 1/3 so i think it's just too soon for Burst to have a project like this... I think that before market cap be at least 5-10 millions USD this can't be made by retrieving so much money out of Burst world...

    So my thinking is that is a real great idea but is just too soon for something like this... Maybe you could start growing a reputation around here and wait some months, i think that before the end of the year you could actually make something like this happen!

    But of course i'm not any expert in finances, trading or real estate, so i could be completely wrong about almost all that i just sayd! Welcome to the comunity!!!



  • Posting this at Polo TrollBox - good marketing material. Real life transactions.

    Everyone needs to post at Polo at least once a day.



  • Could work but there a lot of road blocks that would need to be resolved.

    • Issuer can not be anonymous.
    • Issuer would need to show enough history of real estate experience.
    • How is the issuer going to add asset holders to title?
    • How is the Issuer going to convert the Burst into Dollars? Assuming he is going to buy RE in the US.

    Here is a snapshot of what you're looking at if you want to play near my hood. It's a a very old 2012 calc and a lot has changed in Real Estate. But it lays it out ok.

    This is an estimate. Escow fees, loan fees, and final sale price also affect this calculation. The goal is to have a healthy Annual ROI.
    0_1473886461942_very basic calc.PNG

    Basically, Bust is not ready yet for these types of swings of money. If and or when it is, I'll tap a few shoulders, drink a few beers, and let them know we are ready.



  • @luxe Thanks for the feedback and I hear you, this is a project more long-term than anything and I appreciate you guys taking the time to answer. I'll keep you posted and I'll be a little more active in the community to gain trust and try to get this show on the road.



  • @gpedro Thanks. I didn't intend to launch this right away. It would be a lot too soon. I have a lot of homework to do and I need to prove myself to the community as someone you can trust. I also want to make something with this in the near future. Thanks for the feedback and the encouragement. It's very much appreciated.



  • @gpedro said in Looking to issue a Real Estate backed asset:

    So my thinking is that is a real great idea but is just too soon for something like this... Maybe you could start growing a reputation around here and wait some months, i think that before the end of the year you could actually make something like this happen!

    I definitely like that timeline!



  • @nimbletoes said in Looking to issue a Real Estate backed asset:

    Posting this at Polo TrollBox - good marketing material. Real life transactions.

    Everyone needs to post at Polo at least once a day.

    Thanks will do. When I get more material ready.



  • @socalguy said in Looking to issue a Real Estate backed asset:

    Could work but there a lot of road blocks that would need to be resolved.

    • Issuer can not be anonymous.
    • Issuer would need to show enough history of real estate experience.
    • How is the issuer going to add asset holders to title?
    • How is the Issuer going to convert the Burst into Dollars? Assuming he is going to buy RE in the US.

    Here is a snapshot of what you're looking at if you want to play near my hood. It's a a very old 2012 calc and a lot has changed in Real Estate. But it lays it out ok.

    This is an estimate. Escow fees, loan fees, and final sale price also affect this calculation. The goal is to have a healthy Annual ROI.
    0_1473886461942_very basic calc.PNG

    Basically, Bust is not ready yet for these types of swings of money. If and or when it is, I'll tap a few shoulders, drink a few beers, and let them know we are ready.

    Thanks for the input and I know the real estate landscape is different in every country but I wasn't looking to flip but looking more at vacation or long-term rentals. For now, I'm looking at the Canadian market because that's the one I know (yup that's right I'm Canadian). I'm up for the challenge though and am willing to start off small but I think this can fly. We just have to look at the legal issues and see if one can conserve anonymity for the investors. And the corporation that would be setup would not be anonymous. The accumluation of cash would take time, I grant you especially at these prices. And I especially don't want to devaluate the price with huge volumes. I need to develop a strategy for that as well as the Burst conversion.

    Thanks for the feedback. We have to start somewhere right?



  • @KingCash said in Looking to issue a Real Estate backed asset:

    long-term rentals.
    We have to start somewhere right?

    Oh no doubt. The only way to really learn Real Estate is getting in there and making mistakes. Just be careful as some of the mistakes can cost hundreds of thousands of fiat currency. Which for me, why I would want more proof of who you are and your history instead of just a forum post.

    Rentals are good but be careful with tenant laws. We purchased and had to evict four people without an existing lease agreement. It took 18 months to get them out while the interest on the loan was growing. Even when we were able to get them out of the house, they still stayed around the area. It was weird and scary as we thought they were going to burn down the rental.

    The trick to rentals is you need to have a lot of them. This is due to fluctuation in occupancy and rental rates. Try and find a management company that is up to speed on the laws and can manage large portfolios.

    Well, good luck. If you have any questions just holla!



  • @KingCash I just think the numbers are too bigs for the current state of the market capitalization as i said but actually you made me think in the last hours if this couldn't be done here in Portugal... I was assuminng that you were in the US but here in Portugal the real estate market its pretty destroyed economically so actually this could be a very good time to buy and rent... I'm going to talk with some people i know that work on this market for years and will see what they say about the current market and if they have good deals on the horizont, maybe i'll do something like this but small... I heard that a lot of appartements are being sold in the last year at 15k-30k€ because people just need the money instead of the houses and i know someone that have hundreds of these appartements (his grandfather actually build half of one city near me) maybe he could give me some pretty good deals! But here is the problem right now it's too sell, most of the people are renting instead of buying and that's actually the main reason that guy have so many houses... This could be actually the first real life business involving Burst! Shall we see what i can gather about this matter...



  • @socalguy defenettly you have experience on this, when i have more information on this matter i will most likely be in contact with you if the time comes to develop a plan...



  • @gpedro said in Looking to issue a Real Estate backed asset:

    Portugal the real estate market its pretty destroyed economically so actually this could be a very good time to buy and rent...

    That is what happen in the US. There were these huge companies that came in and were buying massive amounts of properties and then turning them into rentals. They were buying 15 houses from us a week and were buying over 30 a day at the court steps. Look up Shadow Inventory. They swallowed massive spreadsheets of homes. It was nuts!

    But yea, let me know if you have any questions. Though I am licensed I don't sell anymore. I got burned out..



  • @socalguy That's why I'm sticking to the market I know for now. I'm not asking for money up front now and I wouldn't ask anyone to put money in which I wouldn't have a stake in myself. I will be looking into putting in place some type of escrow until we are ready to invest in something that makes sense. Until then it's research and due diligence.



  • @gpedro Exactly! That's the best time to buy and build a portfolio. Remember location is key. The more expertise, the more locations, more properties, more returns.



  • @socalguy said in Looking to issue a Real Estate backed asset:

    @gpedro said in Looking to issue a Real Estate backed asset:

    Portugal the real estate market its pretty destroyed economically so actually this could be a very good time to buy and rent...

    That is what happen in the US. There were these huge companies that came in and were buying massive amounts of properties and then turning them into rentals. They were buying 15 houses from us a week and were buying over 30 a day at the court steps. Look up Shadow Inventory. They swallowed massive spreadsheets of homes. It was nuts!

    But yea, let me know if you have any questions. Though I am licensed I don't sell anymore. I got burned out..

    This is what the Chinese companies are doing in Vancouver right now and also Toronto. Homes aren't affordable anymore. I'm looking more at lakeside cottages away from the city. More affordable and easy rentals.