Sol is a tradeable smart contract token that entitles the owner to a share of a real estate business’s profits. Rent profits from the real estate are paid out in Ethereum (ETH) to SOL token holders.
Shares of businesses, especially those not listed on a stock exchange can be difficult to acquire. In order to invest in a business in a different country, one would typically need to move capital to that country, through various capital controls, convert to the local currency, and pay banking fees each way.
SOL tokens can be traded on a cryptocurrency exchange anywhere there is internet, and dividends are paid out in Ethereum, which can be converted to cash in many countries.
The business of Real Estate, involves holding illiquid assets. It is impossible to retrieve the initial investment without selling the real estate.
SOL token holders are able to sell their tokens on cryptocurrency exchanges or directly to buyers, and retrieve their initial investment at any time.
When making a decision to buy a share in a business, an Investor relies on good and honest accounting of the business’s past dividend payments and transactions. In many cases, thorough accounting may be absent, and mistakes or even deliberate misrepresentation could occur.
SOL tokens are on the blockchain, which is a decentralized database synchronized on many computers around the world. All past fundraisers and dividend payments are tamperproof and visible to everyone.
The flavor of real estate investing used to turn a profit on the raised funds, will be:
- buying undervalued properties, in central locations, in developing countries
- refurbishing them to very high modern standards
- renting the finished product to tourists and business travelers on a nightly basis
The funds raised in the first funding round will be aimed at taking advantage of a unique real estate situation in Kiev, the capital of Ukraine.
The negative portrayal of Ukraine by the media has created perceived risks for foreign investors that are far greater than actual risks. While there is a frozen conflict in the south east of Ukraine, Kiev, which is 500km away, has barely been affected.
Furthermore, bank lending and mortgages have not been available since the financial crisis of 2008. Without foreign investment and credit, real estate prices are a now a third of their 2008 highs.
With such shortages of cash, there is little liquidity for large apartments and building, and they are available at bargain prices, in the most prestigious locations.
The business model used, aims to take advantage of the cheap entry, by purchasing large spaces at discount prices, in the very center of Kiev, and converting them to studio and one bedroom apartments.
These apartments are then refurbished to very high modern “Western” standards, with generous investment in design and furnishings, placing them among the select few in Kiev, that business travelers and tourists seek to rent.
The resulting designer apartments, in top locations, are rented out much cheaper than hotels with the same level of interior quality, providing comfort and good value for money.
In the long-term the service quality oriented approach drives up the value of the brand. In the short-term above average profits are made by filling providing hotel level service and interior, at a fraction of the cost of a hotel.
• ICO starts
• ICO ends
• USD used to purchase and refurbish apartments.
• Apartments are rented out.
• Proceeds from rent are converted to ETH and distributed to SOL token holders. If there are 100 total SOL tokens, and proceeds from rent equal 100 ETH, each SOL token will receive 1 ETH.
• Subsequent funding rounds will be held for purchasing new properties.