You already know about Global REIT, but if you’ve missed our daily updates on the product, check out this article to get a quick overview on what we’re building. Keep reading if you want a little more detail on why global REIT is unique.
In this article we’ll explain:
- What REITs are
- Why the blockchain gives us an advantage
- How we differ from other REITs in today’s market
- Why you should buy in today
So, what are REITs?
REITs or real estate investment trusts were created with the goal of allowing anyone and everyone to invest in large-scale, diversified portfolios comprised of income-producing real-estate properties without personally owning them.
In the same manner that stock owners benefit from investing in publicly traded companies, the stockholders of a REIT earn a share of the income produced by real-estate properties.
This eliminates the hassle of prospecting the market and buying or financing properties themselves, avoiding many of the barriers to entry that real estate investment usually poses.
The REIT owns and generally also operates the income-producing real-estate or real-estate related assets, leaving the investors with the sole role of collecting the dividends. The profits come from the rent the assets generate, interest from financing real estate and assets being sold. A REIT has to distribute 90% of this income to shareholders.
Since their appearance in the US, REITs have been established in more than thirty countries around the globe, with more expected to join that list in the future. Large-scale adoption also had the effect of increasing visibility and trust in real estate securities investments at a global level.
The publicly traded REITs have a good track record from their inception, with returns well north of 10% in most cases (take that with a grain of salt of course).
All of this being said, investing in a REIT is still not a square deal for the masses, as most of them are reserved for investors with a certain levels of wealth. Also, even though publicly listed REITs are technically a liquid investment vehicle, they trade far from their actual value. Couple that with the fact that moving FIAT money around is far from easy when it comes to things like commodity, speed and crossing borders.
But the blockchain brings huge possibility and the chance for us to make this new, exciting, wealth building opportunity a reality for everyone.
How blockchain makes investing in a REIT accessible for anyone, anywhere
The potential of blockchain is no longer a secret , with the technology seeing ever-increasing adoption, and with unignorable characteristics like complete transparency, and high-level security.
It’s undeniable that the blockchain is here to stay, receiving more and more attention from powerful entities, including the US Congress in their March 2018 Economic Report. We`ve already seen various industries show interest in using the technology, with projects ranging from banking applications to the shipping industry.
With the crypto market valued at well over 400 billion dollars at the moment and the growth of international REITs, it seems as good of a moment as any to bring the advantages of the blockchain to real estate investing.
Enter Global REIT, a new project that aims to use the blockchain to further improve on the advantages that characterise a typical REIT: diversification, solid real-estate assets, stable long term returns.
A hybrid of the old world and the new, our vision at GlobalREIT is to allow investors to own a slice of the assets under our management. This is akin to a typical real estate investment trust model, with some twists you`ll have a hard time finding elsewhere.
How GlobalREIT stands out from the crowd
Due to the adoption of blockchain as a backbone on which to apply the REIT structure, an investor in GlobalREIT will enjoy advantages like:
- monthly paid dividends
- real liquidity (meaning you can pull back at any time with the same ease you invest with)
- and much more control over the overall process.
Using blockchain also allows GlobalREIT to transcend borders with ease, not being limited to only one country or region, enabling us to reach more and more stability as trust grows, through geographical redundancy and asset and market diversification amongst other things.
All of these functionalities and more are made possible by issuing two types of tokens:
- GRET (GlobalREIT asset token) and
- GREM (GlobalREIT fund management token)
You can learn more about our tokens in our whitepaper but here’s the headline — you can earn 8% on your token with stable, monthly dividends.
In addition, you as an investor, can enjoy discounts, or even free services in the establishments that are assets of GlobalREIT (free nights at the hotels, discounts for parking and so on).
One other thing worth mentioning, regarding future growth vision, is the aim to construct a global real-estate investment trust infrastructure by leveraging the behemoth that is the Ethereum network. This, would open the possibility for other REIT`s from all over the globe to “plug in” in our network and benefit from the advantages of the blockchain through a global scale, fast, transparent and secure network.
What’s the timeline?
The first asset under management will be a hotel operated by the Shaza Hotels chain, located on the largest man made island, The Palm, in Dubai, UAE, that is scheduled for acquisition in June 2018. We`ll continue with residential buildings, shopping malls and other hotels at first in UAE and as the trust grows, in UK, in the East and other markets.
The pre-ICO (initial coin offering) is live now, sporting an attractive 20% bonus (dropping as value milestones are reached) until the 31st of May, through June when the public ICO comes into effect.