The real estate investment system is ready for an upgrade.
Real estate is a fantastic investment for any investor, as one can expect long term price appreciation and monthly dividends. American real estate has performed very well over the last decade in America, with average annualized property appreciation at about 7%. 2018 cap rates (ratio of Net Operating Income to asset value) were also stable, at around 5.25%. While these are high returns, they can often actually be challenging to obtain — there is a lot behind the surface of real estate investment.
A typical real estate investment scenario is one in which the investor lives near their acquired property and can manage it as well. Say, for instance, an investor knows a good investment neighborhood and finds a suitable property to buy. If they choose to get a mortgage for the investment property, then financing must be determined and repaid monthly. Other responsibilities include ensuring tenants pay monthly rent, dealing with various property damage/maintenance, as well as upkeep on any financial obligations for the property, such as financing or taxes.
If the investment property is inconveniently far away, an investor may choose to hire a property management company to manage the property instead. While this increases convenience, investors still have to find a property, financing for the property, tenants, and property management firm. This process is a lot of continuous work, and it isn’t intuitive. Although real estate investing is quite profitable, it can be complicated. Surely there must be a better way.
The AQRE app makes real estate investing as intuitive as online banking on your phone. We handle everything to do with property management, property assessment and selection, financing, property taxes, and maintenance. Our easy to use mobile app provides all the property data that truly matters to an investor such as average monthly rent, cap rate, and residual back payment. That also means no need for traveling, interviews, spots visits, or phone calls needed to invest — in fact; there’s no expertise required at all.
One of AQRE’s key features is that anyone of any experience level can use the app from anywhere in the world. Investing in foreign real estate typically leads to cross border transaction friction and difficult communication with overseas property management offices. But with AQRE, any global investor can invest in high income-producing American real estate. AQRE specializes in acquiring properties with high yields, as shown in the diagram above, some of which may be distressed and undervalued. Identifying, acquiring, and preparing these properties to be income-producing is a significant value add and unique feature for AQRE.
So how does AQRE work? First, users must sign up with their IDs. AQRE has an automated “Know Your Customer” (KYC) process during sign-up for fast onboarding. The AQRE platform runs on the Ethereum blockchain, users will need Ethereum compatible digital wallets, and they must import their wallet with Chelle Coins into the AQRE app. AQRE has made this process very seamless for investors with amply tutorials, videos, and guidelines. Chelle Coins (CHL) are available for investors and will soon be publicly accessible on cryptocurrency exchanges so anyone can invest in real estate.
Once signed up with an imported wallet containing CHL, investors are ready to invest in properties. The Chelle Corp. team acquires properties and lists them on the AQRE app. Once on the app, any registered investor can invest in these properties and collect their monthly income. When a property sells, appreciation profit is distributed to investors as well. To start the investment process, users must exchange their CHL for allocation tokens, which are stable in price at $1.00 USD and are only used by the investor to allocate towards properties. Allocation tokens are used by the investor to create fully customized real estate exposure. Allocation tokens can be used towards any property with investment capacity, or allocation capacity.
Once an investor has made several allocations to properties, a customized property portfolio emerges on their profile. Investors can check in on their holdings and withdraw their monthly earnings, which are paid in Ether and soon bitcoin, within the AQRE app. By using blockchain technology, AQRE can facilitate the movement of property value, increased divisibility of units, and automated investment functionality at a low cost. This increases efficiency for the user and also provides verifiable transparency, allowing users to verify their earnings, allocations, and properties themselves by using any Ethereum block explorer. Investors can see that we are correctly paying all users as promised, properties aren’t being over-allocated, and the supply of our CHL and Allocation tokens is not being manipulated.
The ability to verify transactions is valuable for investors, especially when they are proving the CHL supply. CHL was minted all at once, meaning it was created at the beginning of the AQRE life cycle, and no more CHL will ever be created. This is called a fixed supply. When users invest in properties on AQRE, their CHL is converted to Allocation Tokens to represent the investment in stable terms. The CHL is destroyed, meaning the user gets a property investment in exchange for their CHL, and the CHL supply decreases. As AQRE continues to upload more and more properties to the AQRE platform, more and more CHL will be burned to satisfy them. As CHL is burned and more properties can be invested in, the price of CHL will increase because the value will pool towards the CHL holders.
This burning process can be viewed as the opposite of inflation, where printed paper money loses value steadily over time, CHL is posed to grow in value continuously over time. Unlike paper money, blockchain technology enables anyone to verify the supply of CHL. This means that anyone can find out the exact percentage they own of the total supply in real-time. Do you know the percentage of dollars you have relative to the global amount? Does your government or central bank even know this? Supply verification is almost impossible without decentralized blockchain technology, and it is a core technology that supports AQRE in every way. Don’t trust, verify.