Tokenization of real estate through STO
Dear all,
One of our project will be done soon: 1 big flat that we have divided in 4 units. We would like to try a new business model for one unit in order to go through the process and see how it goes. The idea will be to issue some tokens (through a platform like Polymyth for the STO) and doing the marketing around it, but so far it's not that clear.
If someone has experience with that, I'd be glad to hear about it.
Thanks!
Most Popular Reply
I think you are going to need to describe your concept in much more detail. It is not clear to me what a buyer of a token actually owns, the ownership structure and what a token owner can do with the property.
My guess is you are proposing some type of joint ownership model, such as 10 coins own $100,000 property @ $10,000 each. If so, you will need to describe the operating model for the business. Presumably you will have a property manager. Consider the legal ramifications if a coin owner sells a coin: legal agreement updates, transfer taxes, etc? You may be able to avoid some/all of that by forming an LLC as the entity investors own, but that is a question for an attorney.
In the end, you put together a pro forma showing what an investor gets for an investment and that will determine viability.