*DISCUSSION* What do you think about tokenised real estate?
Hello everyone! I was hoping to gain some feedback on a new project I am a part of called Bricknest. I just wanted to share a quick description of the product and want to hear all your opinions!

For several months I have been working on a project aimed at transferring a classic deed to the digital world using blockchain technology.

In the first phase, we sell holiday apartments, where the user can choose whether to use them or earn money by renting them.

Main thesis:

\- each token is a security (individual pool of tokens dedicated to each property)

\- the token can be sold at any time (buy today, sell tomorrow)

\- You can use the purchased property or earn money by renting it

\- the investment starts from around 100 euros

\- we are going to move the pacaso .com model to the mass market

What do you think about the idea, model, threats and first feelings? I am open to any feedback, positive or negative.
[{"id": "i2suig7", "text": "Why is this different than a time share?  If I lose my key did I just lose my investment?", "replies": [{"id": "i2suzbk", "text": "Hey, Thanks for asking. Traditional timeshares bind you to a long term agreement that is not friendly to the investor. While you get time to stay year to year there are many limitations in place. With Bricknest you not only have the choice to use it but you can also earn rent Bi-weekly through instant deposits into your wallet. In addition, we wont ask you to pay monthly overhead costs and your only expense is during the time of your initial purchase. Here is a video we made to tell you more about our model: [https://www.youtube.com/watch?v=-D0lQnslNhw](https://www.youtube.com/watch?v=-D0lQnslNhw)", "replies": [{"id": "i2sv4jd", "text": "Finally there is also the fact with our tokens you can sell whenever through either the secondary marketplace on our platform or directly back to us through our buy-back program.  \nHere is our website: Bricknest.com", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2sv1yu", "text": "Stupid.\n\nBut a sucker is born ever minute and a fool and their money are soon parted.", "replies": [{"id": "i2svc6y", "text": "Hey red, what makes you feel this way? I would appreciate an elaboration. I would love to have a conversation about this =\\]", "replies": [{"id": "i2sxwlv", "text": "You're just adding \"the block chain\" to a longstanding RE scheme, fractional deed ownership. You make no mention of the costs of this ownership structure.  \n\n100 euro starting investment sounds like 4 hours per year in a fuck pad motel in the seedy part of town; not anything serious.\n\nYou promise liquidity in a proprietary secondary market but also to be the buyer of last resort in a buyback program? Those two statements don't jive.", "replies": [{"id": "i2u6uyu", "text": "Yes because this was a general overview of our main thesis. I am more then happy to share with you our EXTENSIVE wiki that goes into great detail about majority of your concerns. I also invite you into our discord to chat and see other material we have shared with our members!  \n\n\nHere is our wiki: I would greatly appreciate your time to read this so we can have a more honest conversation about areas you still feel are unexplained after this read.   \nhttps://wiki.bricknest.com/bricknest/", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2sw0fq", "text": "Who owns the deed??", "replies": [{"id": "i2sw6w5", "text": "LLC", "replies": [{"id": "i2syfll", "text": "So each token has LLC membership interest? Is it member managed or manager managed LLC?", "replies": [{"id": "i2u6h36", "text": "hey so each property will be its own distinct SLLC, these entities hold the membership interest of the property that is then distributed to owners of tokens proportionate to the amount of tokens they hold. Feel free to read over our wiki to learn more!  \nHere is more info on how it all works:  \nhttps://wiki.bricknest.com/bricknest/faq/how-do-bricknest-tokens-work  \nhttps://wiki.bricknest.com/bricknest/faq/who-holds-the-deed-to-the-property", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i2u5h08", "text": "[https://wiki.bricknest.com/bricknest/faq/who-holds-the-deed-to-the-property](https://wiki.bricknest.com/bricknest/faq/who-holds-the-deed-to-the-property)  \n\n\nCheck out our wiki and you can learn a ton!", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2swpjq", "text": "How would you know when you can use the property yourself? Presumably there could be dozens if not hundreds of people owning shares in a single property. They obviously can\u2019t use the property at the same time, so how is use divvied up amongst the owners?", "replies": [{"id": "i2u7b8w", "text": "The booking platform only unlocks for users who own at least 5 days worth of tokens. Anything less you are only able to earn rent on your share of tokens.", "replies": [{"id": "i2u7ygr", "text": "So what happens if two eligible users both try to book the same days? Is it just first come first serve? And when you say \u201cdays worth of tokens,\u201d is it 1:1 or if not how many tokens equal a day and how is that ratio set?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2swtkb", "text": "Love it. But talk to me once you have figured out how to implement smart contracts that automatically manage distributions.", "replies": [{"id": "i2u5eti", "text": "Our smart contract does automatically manage distribution =\\]", "replies": [], "depth": 2}, {"id": "i2u6dei", "text": "[https://wiki.bricknest.com/bricknest/faq/how-do-i-receive-my-rental-income](https://wiki.bricknest.com/bricknest/faq/how-do-i-receive-my-rental-income)  \n\n\n\"The smart contract that each token represents automatically distributes rental income, pro rata, to the digital wallet that holds the token:  \nIf you have transferred your tokens to your wallet the rental income will automatically appear there.  \nIf your tokens are being held securely by Bricknest the rental income you are entitled to will be displayed on your account balance when you log in to our platform and you can withdraw anytime from there. \"", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2syoof", "text": "OPEX?", "replies": [{"id": "i2sz5as", "text": "This and what if opex/revenue don't cover costs eg new roof etc that wasn't accounted for will the tokens get diluted or will you be hitting up owners for funds?", "replies": [{"id": "i2u6ntb", "text": "Owners will never be expected to pay more beyond the initial investment. It is embedded in our vision that you as an investor only pay for the investment you want. Each property has a seperate pool of liquidity to cover any unexpected issues that may arise", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2t0lqr", "text": "1) Does a token holder need to pay to use the property?\n2) How does Bricknest make money?", "replies": [], "depth": 1}, {"id": "i2t2fn8", "text": "I just can\u2019t make this make sense in my head.", "replies": [], "depth": 1}, {"id": "i2tbwd3", "text": "&gt;transferring a classic deed to the digital world using blockchain technology.\n\n*How*, exactly? And which government will recognize a digital deed? Or will the owner of record be a LLC, in which case Bricknest is just a syndicator and 'investors' are buying timeshares or rights to a pro rata share of cashflows? What's the value-add of the crypto feature? What does $100 even get you?\n\nAs others have already pointed out, this type of thing already exists in various forms in real estate. Just doesn't have \"blockchain\" shoved into the name. You also don't make mention of asset management, who bears what costs, and how access/use rights are distributed and protected.  I'd say that 1) your pitch so far is for a solution to a problem that doesn't exist, and 2) this is indicative of a fundamental lack of understand / misunderstanding of real estate.", "replies": [{"id": "i2u6a2b", "text": "Hey we go into detail about these kinds in our wiki. If you have some time please take a moment to read over our wiki and if you have some additional thoughts and concerns PLEASE reach back out and lets have a conversation about.   \n[https://wiki.bricknest.com/bricknest/faq/how-do-bricknest-tokens-work](https://wiki.bricknest.com/bricknest/faq/how-do-bricknest-tokens-work)   \n\n\n  \nThe blockchain is not shoved into the model because the blockchain is what enables that each token holder has true representation of the property share they hold and more over manage their monthly dividends via automated solutions. the following plan is to build a utility token to allow for users to further compound earning through a staking solution and more over the tokens will represent their governance power in the property and all holders have voting powers on the way the property is maintained, renovated and more.   \n\n\nThe properties are managed through our partners and the owners of the properties have the power to vote to change management companies. In the future bricknest will bring property management in-house but for the moment we have built ourselves a network of trusted partners in Spain.   \n\n\nOur legal structure is recognized by governing bodies and it is a proven model that already has been successfully used by other companies. like realt for example. the difference with them is that they are purely an investment product and investors have 0 option to use it in any way.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2u3c5w", "text": "Why do you want to make an illiquid investment even less liquid?", "replies": [{"id": "i2u6y3y", "text": "How would this make it more illiquid? We give you the option to sell the tokens 24/7 through the secondary marketplace and we also will buy back tokens from users that dont want to wait for a sale on the secondary market.", "replies": [{"id": "i2u7th6", "text": "You are relying on finding enough buyers at the front end to want to own a piece of the property but also understand and be comfortable with tokens and tokenization. At this point this is probably a very small percentage of the population.  So even if you get someone to buy into it at the beginning and they then want to sell they need to find a buyer that not only wants to own a fraction of the property but also understands the tokens.  And if they can't find a buyer rely on your financial ability to buy them.  In general you are reducing the pool of buyers which makes it less liquid.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i2uhv4x", "text": "You're just early. Hence the downvotes. It's a great start. The way you are explaining the amount of investment and costs bricknest would need to be accountable for is the problem. It sounds too good to be true.  At what point would Bricknest itself be profitable? You are saying you are the main ownership and propertymanagement. What happens April 19th? Do we have to pay before then? What kind of access will I have to see the home before investment. I've used a timeshare, never owned one, I didn't think the location or amenities were worth the cost or stay. It was overpriced for the value. Would yours run into similar issues? \n\nIn theory, blockchain can replace title companies, recordation fees, and more steps  in home ownership. People were sublet trading throughout the pandemic just by posting on fb. That's kind of what this replaces but with vacation homes and at a fraction of the cost. This can also be used in developing nations where people trade land deeds frequently for newer communities, but it is localized and time consuming  because you have to physically be there. Though it could significantly increase the flow of money from expats or foreigners. \n\nYou need partnerships like VTS, integration with other nft or crypto marketplaces, maybe even fundrise or roofstock. \n\nOr continue expanding your marketplace but you have to answer for how secure your infrastructure is, ppl could loose their phrases for their token, what fraction of ownership does one have to have to collect rent. How transparent is your platform. \n\nJust because your system is duplicating/digitizing a system already in place doesn't mean it's bad or stupid. \n\nZ burger and BGR both sell burgers. Costar and Loopnet both list CRE. Regus and WeWork both operate service offices. You're just early and need to figure some more stuff out. There will be a lot of naysayers along the way. Just because an innovation will take time doesn't mean it should not be done. \n\nGoood luck!!", "replies": [], "depth": 1}, {"id": "i2v7c9x", "text": "Look at Lofty.ai !!", "replies": [], "depth": 1}, {"id": "i2vb660", "text": "also Chain Estate Dao is working on Fractionalized ownership as well.", "replies": [], "depth": 1}, {"id": "i2vfrjq", "text": "I think that it is only a matter of time as long as state legislatures work to adopt such a protocol. The US is sorta stuck in its ways with real property recordation. I did find [this](https://www.perryrealestatecollege.com/the-future-of-smart-contracts-blockchain-real-estate) article that gets to your point as a high-level overview.", "replies": [], "depth": 1}]