One of the biggest differences between New York City Real Estate Coin (NYCREC) and a traditional real estate fund is that here at NYCREC we’re utilizing blockchain technology to tokenize real estate.
From the speed of transactions to increased liquidity, there are many reasons why the tokenization of a physical asset like real estate is both a revolution and complete disruption of the current market.
But most importantly, the tokenization of real estate on blockchain allows us to offer fractional interest in an income-producing New York City real estate property in the form of a security token.
The future of cryptocurrency
Security tokens like NYCREC offer investors tremendous advantages over traditional real estate funds and the rigid limitations of the stock exchange:
- Cut investing costs with ERC-20 smart contracts
- Accelerate the selling process with automated KYC and AML
- Global investing made easy and discreet but also compliant
- 24/7 investing untethered to local stock exchange hours
Because of the potential for security tokens to build credibility with the international investing community, NYCREC has created our own Reg-S security token that will break down barriers to entry for New York City real estate and provide a baseline structure for our collateralized blockchain technology.
The NYCREC token opens up a world of accessibility and liquidity to global investors and ensures our token holders receive the biggest returns possible.
Dividends via airdrops
Quarterly dividends to our token holders will be paid in the form of Ethereum airdrops.
Airdrops to our token holders will occur whenever there is a cash flow generating event in one of our properties across our portfolio.
Cash flow generating events can include income from rent or occupancy, acquiring a property, selling a property, or other earnings.
The dividend amount that our token holders receive in any given airdrop is dependent on their fractional interest in our real estate portfolio.
We’d also like to point out that we are not charging a 2% management fee — which means even more dividends for our token holders.
Fractional ownership of New York City real estate
The concept of fractional ownership in a real estate portfolio is simple — NYCREC tokens represent interest in our real estate portfolio. The amount of interest you hold is directly tied to the number of NYCREC tokens you hold.
During any of the cash flow generating events mentioned above, NYCREC token holders will receive a percentage of the total profit from the event based on how many NYCREC tokens they own versus the total number of tokens in circulation.
Here’s a breakdown of the entire 5-step process:
- A participant sends us BTC, ETH, or XRP and receives the corresponding amount of NYCREC tokens
- Our team sells funds received for cash, which we put into U.S. Treasury bonds to generate interest
- We identify an attractive New York City property or properties and purchase using funds raised. In the event real estate is not purchased, NYCREC may use funds raised as a loan to a property developer (which typically generates higher returns)
- The purchased property or properties, or the loan in question, produces a cash flow generating event (e.g., rental income, sale of a property, interest paid on loan)
- Our team buys ETH with the cash allocated for airdrops. The ETH is then airdropped to token holder wallest per the number of NYCREC tokens held
With airdrops based on fractional interest, our dividend structure is fast, fair, and as lucrative as possible for our token holders.