Real Estate Tokenization

Real Estate Tokenization

REAL ESTATE Fractional Investment (RE Tokens)
& Crowdfunding thru Crypto

Introduction

Real Estate has been historically considered the best way to preserve wealth. However, Real Estate investments today present significant inefficiencies such as lack of efficiency and liquidity.
VVM team is applying Blockchain technologies to the world of Real Estate investments in order to solve those issues. VVM is a blockchain Smart-Contracts governed ecosystem that focuses on creating the best conditions for Real Estate investment eliminating costs due to unnecessary intermediaries, providing transparency and liquidity, alleviating tax inefficiencies and easing cross-border transactions under a unified crowdfunding platform.
This paper explains the principles of the VVM ecosystem, our execution plan and the economic arguments for the economic value of a VVM Token.

Executive Summary

VVM is a new blockchain Smart-Contracts governed ecosystem that applies Blockchain technologies to the enormous Real Estate investment industry, giving greater access to global investment in Real Estate, lowering barriers to entry, and increasing market liquidity. It will offer an effective method of investing and securing the value of the existing +100 Billion USD equivalent in cryptocurrency into the less volatile and growing Real Estate market by generating real estate value appreciation and income from rental and operations.
Key to our ecosystem is the innovation of VVM Tokens, a unique Blockchain-secured digital asset with inherent value as a secure cryptocurrency, which may be traded or used to participate in Crowdfunding by purchasing Real Estate Property Participations (RPP) on our platform.
VVM Founders have a strong successful execution track-record and reputation, have founded and exited high profile online startups over the last 20 years and have held executive positions at IBM, JP Morgan, and top Venture Capital firms in Europe and ME.
A full fledged site will be launched leveraging the Crowdfunding formula, where any user will be able to invest in a fraction of a Real Estate asset with VVM Tokens, gaining profit rights (rental income + value appreciation) awarded by a smart contract and paid with Ether.

Background

“Real estate crowdfunding continues to be a dynamic and ever-evolving industry, growing to an estimated $3.5 billion in 2016. By 2025, the crowdfunding industry as a whole is anticipated to be valued at more than $300 billion and online real estate marketplaces are primed to capitalize on that explosive growth.” (Forbes)
VVM team believes that one of the most impactful and exciting applications of Blockchain technologies will be within the Real Estate market, especially within the Crowdfunding space.
The use of Blockchain technology in the field of Real Estate Crowdfunding has the potential to completely revolutionize the sector, giving greater access to investment in global Real Estate, lowering barriers to entry and increasing market liquidity.

According to The Guardian, a recent U.S. Real Estate study showed that “Chinese investors have poured $110 billion dollars into the U.S. market in the last 5 years (both commercial and residential). This investment is set to double in the next 5 years.” In all likelihood, a certain amount of these investment funds will find their way into alternative funding options such as Real Estate Crowdfunding as foreign investment expands in the U.S. Experts believe this tendency towards growth is largely due to worldwide economic uncertainty and foreign investors seeking new destinations for their investments.
Thanks to our Crowdfunding platform, people from all over the world will benefit from Real Estate profit potential worldwide while performing transactions with ease. We are confident that a Real Estate Crowdfunding platform that uses Blockchain and cryptocurrency will revolutionize the market.

Why Real Estate Investment through Blockchain

Decentralization

VVM pushes the real estate market to become truly peer-to-peer. The transition from a centralized system to a decentralized one must be smooth to mitigate implementation risks. The integrity of the Protocol can allow two parties to make a deal without the intermediation of a third party, or to use a third party when necessary.

Faster Transactions

VVM Protocol eliminates third-party brokers, lawyers and banks by adding them to the network or assuming their functions such as listings, document flow and payments. Standard registration of the title of deeds with notarized documents could take up to 60 days. An VVM transaction can take less than 10 minutes.

Lower Costs

VVM has the potential to greatly reduce transaction fees by eliminating third-party intermediaries and overhead costs for exchanging assets (up to 30% of property price). The VVM trading fee is 2%-10% (a reduction of up to 15-fold compared to a traditional real estate transaction), which can be further reduced as the network grows.

Liquidity

Real estate owners get access to both fiat and cryptocurrency investors without traditional cross-country boundaries, which highly speeds up the property sales process.
Property-specific token holders can trade them in the secondary market within the VVM platform or wherever they want.

Tokenization

Fractional ownership enables purchasing real estate with a smaller ticket. Property-specific tokens are customized for each property and jurisdiction. Sellers receive a flexible sales instrument, and buyers can choose from a wide variety of real estate opportunities without traditional cross-country boundaries.

Transparency

Ownership and transaction data is accessible to all peers on the network. It is stored in the distributed web and hashes are recorded to the blockchain. The distributed consensus is achieved via a proof-of-stake algorithm: buyers and sellers are empowered with control of their information and have more confidence in conducting transactions.

Advantages

Low Entry Ticket

The ability to buy a 1/1,000 fraction of a property makes it accessible to anyone.

Low Transaction costs

Traditional costs of up to 30%
of property price are eliminated with tokenization.

Global Portfolio

Individuals and institutions can buy or sell fractions of properties without borders.

Strong Expertise

The VVM team and advisors have more than $4bn worth of transaction experience in real estate. The diverse team background and expertise inspire breakthrough innovation.

Investment Portfolio

Even a small investor can diversify his portfolio by purchasing tokens of a Manhattan penthouse, a warehouse in Guangzhou, a coworking space in Amsterdam and villas in Bali.

Security & Protection

Due diligence procedures prior to the property token offering and distributed storage of all the collected information provide additional protection.

REAL ESTATE Fractional Investment (RE Tokens)
& Crowdfunding thru Crypto

Introduction

Real Estate has been historically considered the best way to preserve wealth. However, Real Estate investments today present significant inefficiencies such as lack of efficiency and liquidity.
VVM team is applying Blockchain technologies to the world of Real Estate investments in order to solve those issues. VVM is a blockchain Smart-Contracts governed ecosystem that focuses on creating the best conditions for Real Estate investment eliminating costs due to unnecessary intermediaries, providing transparency and liquidity, alleviating tax inefficiencies and easing cross-border transactions under a unified crowdfunding platform.
This paper explains the principles of the VVM ecosystem, our execution plan and the economic arguments for the economic value of a VVM Token.

Executive Summary

VVM is a new blockchain Smart-Contracts governed ecosystem that applies Blockchain technologies to the enormous Real Estate investment industry, giving greater access to global investment in Real Estate, lowering barriers to entry, and increasing market liquidity. It will offer an effective method of investing and securing the value of the existing +100 Billion USD equivalent in cryptocurrency into the less volatile and growing Real Estate market by generating real estate value appreciation and income from rental and operations.
Key to our ecosystem is the innovation of VVM Tokens, a unique Blockchain-secured digital asset with inherent value as a secure cryptocurrency, which may be traded or used to participate in Crowdfunding by purchasing Real Estate Property Participations (RPP) on our platform.
VVM Founders have a strong successful execution track-record and reputation, have founded and exited high profile online startups over the last 20 years and have held executive positions at IBM, JP Morgan, and top Venture Capital firms in Europe and ME.
A full fledged site will be launched leveraging the Crowdfunding formula, where any user will be able to invest in a fraction of a Real Estate asset with VVM Tokens, gaining profit rights (rental income + value appreciation) awarded by a smart contract and paid with Ether.

Background

“Real estate crowdfunding continues to be a dynamic and ever-evolving industry, growing to an estimated $3.5 billion in 2016. By 2025, the crowdfunding industry as a whole is anticipated to be valued at more than $300 billion and online real estate marketplaces are primed to capitalize on that explosive growth.” (Forbes)
VVM team believes that one of the most impactful and exciting applications of Blockchain technologies will be within the Real Estate market, especially within the Crowdfunding space.
The use of Blockchain technology in the field of Real Estate Crowdfunding has the potential to completely revolutionize the sector, giving greater access to investment in global Real Estate, lowering barriers to entry and increasing market liquidity.

According to The Guardian, a recent U.S. Real Estate study showed that “Chinese investors have poured $110 billion dollars into the U.S. market in the last 5 years (both commercial and residential). This investment is set to double in the next 5 years.” In all likelihood, a certain amount of these investment funds will find their way into alternative funding options such as Real Estate Crowdfunding as foreign investment expands in the U.S. Experts believe this tendency towards growth is largely due to worldwide economic uncertainty and foreign investors seeking new destinations for their investments.
Thanks to our Crowdfunding platform, people from all over the world will benefit from Real Estate profit potential worldwide while performing transactions with ease. We are confident that a Real Estate Crowdfunding platform that uses Blockchain and cryptocurrency will revolutionize the market.

Why Real Estate Investment through Blockchain

Decentralization

VVM pushes the real estate market to become truly peer-to-peer. The transition from a centralized system to a decentralized one must be smooth to mitigate implementation risks. The integrity of the Protocol can allow two parties to make a deal without the intermediation of a third party, or to use a third party when necessary.

Faster Transactions

VVM Protocol eliminates third-party brokers, lawyers and banks by adding them to the network or assuming their functions such as listings, document flow and payments. Standard registration of the title of deeds with notarized documents could take up to 60 days. An VVM transaction can take less than 10 minutes.

Lower Costs

VVM has the potential to greatly reduce transaction fees by eliminating third-party intermediaries and overhead costs for exchanging assets (up to 30% of property price). The VVM trading fee is 2%-10% (a reduction of up to 15-fold compared to a traditional real estate transaction), which can be further reduced as the network grows.

Liquidity

Real estate owners get access to both fiat and cryptocurrency investors without traditional cross-country boundaries, which highly speeds up the property sales process.
Property-specific token holders can trade them in the secondary market within the VVM platform or wherever they want.

Tokenization

Fractional ownership enables purchasing real estate with a smaller ticket. Property-specific tokens are customized for each property and jurisdiction. Sellers receive a flexible sales instrument, and buyers can choose from a wide variety of real estate opportunities without traditional cross-country boundaries.

Transparency

Ownership and transaction data is accessible to all peers on the network. It is stored in the distributed web and hashes are recorded to the blockchain. The distributed consensus is achieved via a proof-of-stake algorithm: buyers and sellers are empowered with control of their information and have more confidence in conducting transactions.

Advantages

Low Entry Ticket

The ability to buy a 1/1,000 fraction of a property makes it accessible to anyone.

Low Transaction costs

Traditional costs of up to 30%
of property price are eliminated with tokenization.

Global Portfolio

Individuals and institutions can buy or sell fractions of properties without borders.

Strong Expertise

The VVM team and advisors have more than $4bn worth of transaction experience in real estate. The diverse team background and expertise inspire breakthrough innovation.

Investment Portfolio

Even a small investor can diversify his portfolio by purchasing tokens of a Manhattan penthouse, a warehouse in Guangzhou, a coworking space in Amsterdam and villas in Bali.

Security & Protection

Due diligence procedures prior to the property token offering and distributed storage of all the collected information provide additional protection.