How can blockchain solve the problem of real estate development funding?
You’re driving to work when you see the familiar sight of scaffolds, construction vehicles and people at work. While the sight may be familiar, the process behind funding this work is likely more complex than you think, and it is wrought with problems that the blockchain can solve.
While the developer may be the one with its name on the building, much of the funding actually comes from a variety of sources: banks, private investors, and perhaps a small percentage from the developer itself.
For any development, banks may lend a large amount of the capital. Yet their loans are not without drawbacks; sometimes their interest rates can be as high as 10–12%.
The other capital often comes from wealthy individuals or funds. Yet when these investors step in, they often become the majority shareholders in the developments — the buildings stop looking as the developers had planned and begin to prize other aspects, like profitability.
So how does blockchain interrupt this problem?
The Relex blockchain enhances the traditional investing paradigm by leveraging a vast amount of capital currently in the cryptocurrency sphere, over $350 billion USD at current market capitalization. Through crowdfunding capacities, blockchain can also more easily pool individual investors rather than relying on oversized funds or high net worth individuals.
Relex positions its investors as proxy developers, so instead of sitting on opposite sides of the table, the investors and developers work together to create solutions that achieve the best results for neighborhoods and their communities.
In addition, Relex makes overseas investing a lot easier. It makes dynamic currency fluctuations more stabilized. It eases paperwork hassles by simplifying them through smart contracts. And it makes safe investment opportunities that could be seen as risky by securing them through the transparent, immutable blockchain. All parties are held to higher accountability through the visibility of blockchain transactions.
With Relex’s experts scrutinizing every business deal, and with the partnerships themselves approved by the investors, Relex is a truly disruptive, innovative force in the real estate development investment industry.
To join the conversation, visit the Relex community:
Relex Real Estate Development Telegram: https://t.me/relex_core
Relex Life Telegram: https://t.me/RelexLife
Relex Real Estate Development website: relex.io
Relex Life website: life.relex.io
Relex Real Estate Development Twitter: https://twitter.com/relextalk
Relex Life Twitter: https://twitter.com/life_relex
Relex Real Estate Development Facebook Page:https://www.facebook.com/relextalk
Relex Life Facebook Page: https://www.facebook.com/relexlifeRLXI/
Relex Real Estate Development SubReddit:https://www.reddit.com/r/RelexRLX/
Relex Life SubReddit: https://www.reddit.com/r/RelexLife/
