Uber. Netflix. Amazon. Airbnb.
These household company names represent more than just conveniences of modern day life. They are companies that used technology to disrupt entire industries and earned billions in the process.
Market disruption is nothing new. From the Ford Motor Company revolutionizing the transportation industry to the invention of the electric light bulb disrupting gas lamp companies and candle makers across the globe, humans have a long and rich history of pushing for innovation that changes industry forever.
Which brings us to the most recent market that’s ripe for disruption: the New York City real estate market.
New York City boasts one of the highest-yield real estate markets in the world. The island of Manhattan alone represents over $1.4 trillion in estimated land value.
While on one hand, this makes New York City one of the most stable and historically profitable real estate markets ever, it also means that investment opportunities in this market are inaccessible to everyone but a handful of billionaires.
NYCREC is here to change that
There’s a revolution on the horizon and it’s called the New York City Real Estate Coin (NYCREC).
NYCREC will transform the way real estate transactions are bundled and sold through the tokenizing of real estate in New York City.
Like market disruption, the tokenization of assets is not a new concept. In some sense, owning shares in a company is similar to tokenization — you don’t own the company, you own interest in it. Tokens (cryptocurrency) are simply a new form for representing ownership.
Tokenization offers a whole new level of access and liquidity — and it’s catching on fast. From Andy Warhol art worth millions to the company stock of Anexio, blockchain technology is allowing for the tokenization of assets in a way that was never before possible.
But what makes NYCREC different?
What makes NYCREC special is that our Ethereum (ETH) based token is backed by a physical, real-world asset — a New York City real estate investment property.
As a token holder, you own a percentage interest in a portfolio of properties, giving you the advantage of tapping into cash flow produced by the property, in the form of ETH airdrops.
The NYCREC tokenization model also offers more security — our ETH based cryptocurrency is tied to a physical asset that on average has remained stable over the years and with a high rate of return.
How will tokenization disrupt the real estate market?
Tokenizing an investment property turns the real estate market on its head by opening up the possibility for fractional ownership.
For decades now, the New York City real estate market has been the private playground of millionaires and billionaires. With the average price of an apartment building in New York City hitting $2.2 million, sky-high property prices are shutting the door on investment opportunities for everyone but the wealthiest 1%.
But NYCREC breaks down this barrier to entry by allowing investors to purchase a fraction of a New York City investment property via our ETH-20 token.
No longer will those who want to get in on the real estate game be required to pool a significant portion of their net worth and tie it to a single asset as the sole owner of a property — with NYCREC, an average investor with an average income can choose how much to invest and thereby gain entry to a market that was traditionally cost prohibitive.
Unfortunately, the expense is the just first barrier to entry to owning New York City real estate.
Next come the red tape, the paperwork, the middlemen, the inspectors, and the hidden fees. The number of challenges to overcome and the knowledge required in order to own New York City real estate is daunting enough to intimidate even the most seasoned investor.
Here NYCREC is also the answer. With our group of real estate, finance, and crypto experts navigating the complicated landscape of New York City real estate market for you, NYCREC opens the door of this challenging real estate market to everyone.
An ownership revolution
The traditional model for investment property ownership represents not just a tremendous concentration of funds and knowledge, but also a significant commitment of time.
Sole ownership of investment property comes with a long list of burdens and responsibilities including maintenance, tenants, risk, and taxes. For the average investor, the time commitment for managing a property can be just as prohibitive as the cost.
Some investors have attempted to solve this problem by going with a Real Estate Investment Trust (REIT) or securitization (B8) — but these solutions come with rigid structure and transaction fees.
NYCREC, on the other hand, will use blockchain technology and cryptocurrency to decentralize real estate transactions and allow for increased liquidity without the transaction fees often associated with our current real estate models.
Sharing is better than owning
From public transportation and public spaces to choosing to rent rather than own, the European model of ownership is vastly different than that of the United States. Americans have built their society around a lone wolf and going-it-alone style of ownership, sometimes to their detriment.
The NYCREC fractional ownership model will breath fresh life into a stale system for owning real estate — thereby granting access to thousands of investors who were previously cut out of a traditional ownership model of New York City real estate.
The future of real estate
If it can happen in New York City, it can happen anywhere.
New York City is only one of the top real estate markets in the world. London, Tokyo, Berlin, Dubai — these cities represent trillions in property value and they are all ripe for disrupting.
And that’s not to mention the rising stars in the U.S. alone — San Francisco, Los Angeles, Miami, and Dallas. If NYCREC works in New York City, it can expand to every major U.S. city and then overseas, opening up a world of possibility to investors across the globe.
Our long-term goal is to create a collateralized blockchain for all types of real assets — not just real estate — that can be used by other ICOs and STOs to create other asset-backed tokens and projects.
Accessible. Connected. Innovative.
By increasing accessibility and liquidity of real estate, New York City Real Estate Coin will revolutionize and disrupt a stagnant industry that has taken far too long to catch up to technology.
Want to be a part of the revolution? To learn more about NYCREC and our upcoming STO, click here.
