Check out my new RE investing idea using NFT to fund the investments.
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[{"id": "i2343oe", "text": "that would be considered offering a security, probably", "replies": [{"id": "i23b3hc", "text": "Thanks for your reply. This could indeed be considered a securities offering/investment round. If my idea works out there'll probably be multiple rounds eventually allowing for different acquisitions.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i234chi", "text": "That sounds like investing in real estate with extra steps", "replies": [{"id": "i23a64x", "text": "The idea is to have it work as a Real Estate Investment Trust (REIT). Consider the NFT's to be shares in an investment trust.", "replies": [{"id": "i23bq73", "text": "What is the benefit over a standard share purchased with cash?", "replies": [{"id": "i23co43", "text": "Good question. The NFT's will hopefully be seen as a way to strengthen the sense of community. The community of NFT holders will always be up-to-date on different projects the Investment Trust is working on and will be the first to be presented with new investment oppurtunities. Other than that, the NFT's don't really have that much of an advantage over shares bought with cash.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i23vbda", "text": "NFTs could be simpler to purchase. Go to a market and buy them. No need for a broker or RE agent. \n\nLiquidity could be much faster as the payments could be made to the wallet owning the nft at time of distribution.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i234f49", "text": "What kind of scam is this?", "replies": [{"id": "i23ahn3", "text": "Thanks for your honest reply. I completely understand your reaction to my idea. Heck... I would say the same. I just hope to gain the trust within the reddit community that allows me to bring ideas like this one to life.", "replies": [{"id": "i23csed", "text": "What's your experience with real estate?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i239ncx", "text": "1 question: have you hired a lawyer to walk you through the legal side of things.\n\nIf you think you don't need one then throw this idea straight into the bin.\n\nIf you think you will do that later after generating some income then stop what you are doing and do it right now. \n\nSeriously once we talk about securities or offering investment oppertunities to consumers we also talk about a well regulated field where you might need to do (or are prohibited from doing) certain things that you are not aware of without hiring a competent lawyer who specializes in this field first.", "replies": [{"id": "i23bjd8", "text": "I strongly appreciate your reply. I haven't talked to a lawyer yet but I will most definitely as soon as I get the chance to do so. No actual investment oppurtunity will take place as long as it's not legally substantiated.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i23dgao", "text": "What\u2019s the advantage to using NFT\u2019s rather than just conventional shares?", "replies": [], "depth": 1}, {"id": "i23grww", "text": "This approach fundamentally misunderstands how CRE works, and therefore solves a problem that no one has.\n\nPublic REITs offer fractional ownership to investors, with no liability. There is a large and liquid market for these securities. NFTs offer no benefit to the investor or operator for public companies, they are just a different form of accounting that may have additional risks and increasing regulatory scrutiny for no additional value.\n\nIndividual RE investors obviously would never need an NFT.\n\nSo you\u2019re left with NFTs as a replacement for private deals like syndications or DSTs.\n\nNFTs are great for reducing friction in secondary transactions and also to add subsequent obligations to downstream token holders. This could be perceived as a benefit to LPs, as you may be \u201cstuck\u201d in a private transaction with no ability to cash out, and NFTs could offer liquidity if you could build a secondary marketplace.\n\nHowever, the terms of the deal aren\u2019t constructed by the LPs. The terms are defined by the project sponsor.\n\nThere are all sorts of benefits that come from being a sponsor, like being able to dictate the terms of the deal, the timing of the exit, and the operational priorities. Issuing NFTs rescues friction in secondaries, but as a sponsor, you want friction in secondaries so the LPs are forced to deal with you and you can control whether to allow them to exit early. And for what price. And you can keep it private.\n\nIf NFT trades are public, then the sponsor loses their ability to control the narrative of the project, if people start selling for their own reasons, and it snowballs, the perception is that the project is in trouble even if it\u2019s not. Why give up the control?\n\nFurther, in order to get financing, a lender will want to see cash in the deal. That means you would have to sell NFTs, get fiat currency, transfer the fiat into the project, show the lender the money is there, and then they would write the loan. So, you are selling NFTs that are an ownership interest in\u2026what exactly? An intention to buy a building? Who will commit to that? Typically, there will be a provision in the docs that returns the money to the LP if the deal doesn\u2019t close, you could replicate those terms with a smart contract, and even have it be blockchain based if you want, but you can\u2019t do that with NFTs well because it would need a trigger coming from outside the NFT\u2019s awareness.\n\nFinally, most real estate projects with LPs are emphatically not about building an ownership community, they are about exploring a market opportunity, and then getting out of the investment. These projects last 2-10 years. You don\u2019t want the investors to feel a sense of community, everyone wants to see the project executed and then move on.\n\ntldr: there are technical, financial, and cultural reasons this is a bad idea. If anyone pitches this to you, it\u2019s most likely a scam and you should run away.", "replies": [], "depth": 1}, {"id": "i23srxc", "text": "Long term this is probably going to have some legs but it has some serious hurdles.  For example you would need to issue K-1's to your US investors including their social security #?", "replies": [], "depth": 1}]