California Fix and Flip on the blockchain...does it make sense?

6 Replies

Well its happened. Property Coin is tokenizing fix and flip CA residential. The new coin offering starts in a few days at $50 a pop. They plan on raising 50 million to start up and splitting fix and flip profits 50/50. Does this crypto stuff make sense for RE investors?

@Matt R. I am a bit confused.  Are they trying to raise money via crypto currency?  Or did they create a new currency and the new crypto currency will be the "equity" in fix n flip deals?

I will say that from the few friends that I have that bought crypto that they are not billionaires yet so I would be hesitant.  

Interesting though, would like to learn more just to see something that is new in the market.

Originally posted by @Jonathan Orr :

@Matt R. I am a bit confused.  Are they trying to raise money via crypto currency?  Or did they create a new currency and the new crypto currency will be the "equity" in fix n flip deals?

I will say that from the few friends that I have that bought crypto that they are not billionaires yet so I would be hesitant.  

Interesting though, would like to learn more just to see something that is new in the market.

 I think they are trying to raise money via creating a new currency and that is the equity in the deal it appears. Does it solve anything that does not already exist or maybe it attracts currency investors because it is backed by real estate? They say they have done 3000 flips already. 

Generally the more complex an investment is the bigger of a scam it is.

Want to invest in crypto? Invest in crypto

Want to invest in RE? Invest in RE

@Matt R. I have all of my money in PonziCoin so I need to see how that goes first...

But, really, some of the REI ICOs go like this. Buy one token for $50, watch the token rise in value (because of “demand”) to $500, and then we use that $500 token to do these fix and flip deals. So the $50 -> $500 “appreciation” (quotes intentional) of the token is where you make any “money” (quotes intentional).

And usually you use BTC or ETH to buy FAF (fix and flip — making it up) token. So you now *might* have: USD -> BTC -> ETH -> FAF ICO -> FAF Token Value @ Time of Investment. So have a handful of volatile currencies that routinely go up and down 10% on a literal daily basis.

Originally posted by @Andrew Johnson :

Matt R. I have all of my money in PonziCoin so I need to see how that goes first...

But, really, some of the REI ICOs go like this. Buy one token for $50, watch the token rise in value (because of "demand") to $500, and then we use that $500 token to do these fix and flip deals. So the $50 -> $500 "appreciation" (quotes intentional) of the token is where you make any "money" (quotes intentional).

And usually you use BTC or ETH to buy FAF (fix and flip — making it up) token. So you now *might* have: USD -> BTC -> ETH -> FAF ICO -> FAF Token Value @ Time of Investment. So have a handful of volatile currencies that routinely go up and down 10% on a literal daily basis.

Seems like a funky way to put hammer to nail. IDK if it makes sense right or I can not see the advantage other than one could be a small investor for as little as one coin I imagine. They are claiming an average IRR of 50%. I have heard of a coin backed by 1 gram of gold and that is around $250 but the gold is maybe worth $50. I wonder if that is what will happen with this FAF CA model and that model in theory would have way more ongoing profits than just holding gold.

@Matt R. I really have no clue if these guys will be great or not. All I do know is that 50% IRR is likely fueled by speculative growth in the coin "value" (quotes intentional) or an awesome lead-in for a future episode of American Greed. All I need is a Morgan Freeman voiceover with: "Pat and Debroah thought they had found the perfect investment in 2018..." Then cut to Pat and Deborah saying "I mean, I should have known it was too good to be true..." 😬

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