Acquiring property for the sake of turning a profit is not a new concept.
For as long as human civilization has existed, owning property has been a symbol of wealth. From serfdom during feudalism to tenant farming, landowners have historically profited from their land and the people who used it.
But what about those who don’t own land? The 1960s saw a revelation in the way non-landowners could profit from real estate — the invention of the REIT.
What is a REIT?
A Real Estate Investment Trust, or REIT, is a company that owns and usually operates an income-producing property.
By purchasing shares in an REIT, investors have the opportunity to invest in large-scale, incoming-producing real estate portfolios without being the sole owners of a property.
First established by Congress in 1960, REITs are also similar to mutual funds in that they allow for individual investors to acquire ownership in real estate portfolios and receive dividends from those portfolios in the form of rent collected on incoming-producing properties.
At the time, REITs were a revolution in real estate investment, as they combined the best attributes of both the real estate market and stock-based investment.
But the structure of REITs has remained largely unchanged since the 1960s, sometimes to the detriment of investors.
What are the limitations of a REIT?
One of the biggest issues with the traditional REIT is high expenses, which can lead to shrinking and even slashed dividend payouts to investors.
Suspiciously high-yield dividends in an REIT can also be a sign of shrinking payouts or cash flow issues within a company.
Another major issue with traditional REITs is that they tend to be hyper-focused on one type or category of property, such as malls or retailers. This lack of diversification can put REITs and their investors’ money in danger. To achieve true portfolio diversification, investors are forced to invest in and manage multiple REITs.
Lastly, REITs trade on New York Stock Exchange hours, a limited trading time that leads to lower volume and less opportunity for investors.
How can NYCREC transform the REIT?
To overcome the issues associated with traditional REITs, New York City Real Estate Coin (NYCREC) is launching an STO (security token offering).
By using blockchain technology and our own Ethereum-based cryptocurrency, NYCREC presents the rare opportunity to improve upon the traditional model of the REIT — a dated structure that has failed to keep up with technology and investing in the digital age.
NYCREC will disrupt and rebuild the traditional REIT by offering lower expenses, which could equal greater profit for token holders.
In our new digital age of crypto exchanges and Alternative Trading Systems (ATS’s), NYCREC will provide 24/7 liquidity, giving investors the ability to act fast and seize opportunities.
With NYCREC, you don’t have to manage multiple REITs on your own to get true diversification — you get one actively managed portfolio that is more flexible and diverse than a single REIT.
NYCREC is a revolution in real estate
Not since the 1960s has the real estate market experienced a true revolution in investment structure and opportunity — to say it’s overdue for disruption would be putting it lightly.
NYCREC is a classic example of the incredible ability of cryptocurrencies to expand a market and decentralize it, thereby making it more liquid and accessible to investors.
No longer will investors wishing to take advantage of the high-yield investment opportunities in New York City have to be a New Yorker and a billionaire — NYCREC opens up a liquid market to non-citizen investors of any means.
In the same way that other cryptocurrencies have transformed markets by removing middlemen, eliminating fees, and offering complete transparency and security, NYCREC will breathe fresh air into real estate investment models that have stagnated for too long.
The REIT and the real estate market are about to get a major makeover.
From New York City to the world
The REIT and real estate market revolution may start in New York City, but it doesn’t stop there.
From the United States to Europe and Asia — the world’s major gateway cities represent trillions in property value and they are all poised for disruption via a tokenized real estate marketplace.
The innovations NYCREC brings to the table don’t end at real estate, either — the final phase of our operations will be a collateralized blockchain that can be used by other STOs to create asset-backed tokens for any market.
Want to find out more about NYCREC? Read our whitepaper and join our Telegram group to be a part of our active and helpful 24/7 community.
