With Property Coin, investors can use the blockchain to own a real estate portfolio that is professionally managed. With this coin, crypto investors can now take advantage of “fix-and-flip” types of property investments. Real estate assets in the United States back the coin, and the security token is pursuant to the United States Securities and Exchange Commission’s Regulation D, as well as Regulation S in other locations. The portfolio backing Property Coin is professionally managed using the proprietary tech platform of Aperture. This diversified portfolio includes loans and real estate.
Who Is Aperture?
Aperture, the team behind Property Coin, is a company based out of California focusing on real estate investment and technology. It specifically focuses on acquiring, rehabilitating, and disposing of distressed residential real estate, as well as writing loans for small investors with a similar strategy.
The experience of Aperture will benefit those who hold Property Coins. Team members have been part of an estimated more than $150 billion in closings for real estate financing transactions. They have also originated an estimated more than $10 billion of mortgage loans, flipped more than 3,000 properties, and created proprietary tech for investment banks that are among the largest in the world. To further prove their track record and experience, consider that they have produced an unleveraged internal rate of return (IRR) of more than 50 percent to date on their investments.
What Are Some Key Advantages of Property Coin?
Perhaps the biggest advantage of Property Coin is that investors can take advantage of a cryptocurrency that is managed by an established institution and backed by real assets. The assets backing the coin use real estate tech that is powered by data science. This coin also lets contributors leverage the experience in investing of professionals from real estate and Wall Street.
How Does Property Coin Change the Availability of Fix-and-Flip Strategies?
Before Property Coin, only those who were extremely wealthy could invest in fix-and-flip strategies through what is known as “country club” deals. The team is unaware of any other way for investors to make an investment in a technologically driven and institutionalized fix-and-flip investment at scale, whether in the United States or abroad. Property Coin will change this via its cryptocurrency that is backed by real estate loans and assets and is fully regulated. Additionally, investors will be able to enjoy the profits that Aperture’s current technological and operational platform produces.
How Does Property Coin Stand Apart from Other Real Estate Tokens?
Property Coin separates itself from other real estate tokens and asset-backed tokens in three key ways: transparency, product, and experience. Unlike with other asset-backed tokens, investors can see proof that the tokens are supported by assets via monthly reports that will be published on the website. These reports will include the accounts of material assets that Property Coin holders own, delivering transparency. In terms of the product, it is the only ICO, to the team’s knowledge, offering the chance to get involved in residential U.S. real estate via a professionally managed and diversified investment. Finally, the company already has experience, including the business as a whole, each individual team member, and the technology it will use to make investments.
What Will Property Coin Do with ICO Funds?
Aperture will use the full 100 percent of net proceeds from the Property Coin ICO to complete real estate loans and property transactions through the purchasing entity. Aperture will reinvest all the net proceeds into new investments related to real estate. The goal is to create a natural appreciation of price for the coin holders. Aperture plans on raising as much as $50 million for investment in loans and property, specifically those investments that the proprietary tool already identified and evaluated. That tool will be working together with the experienced team to make the most of the technology and industry experience.
Does the Aperture System Work?
Those who invest in Property Coin should gain some confidence from the strong track record of Aperture. In addition to the figures mentioned above, it has been beta testing these methods since 2016 with real-world investments in property using its own capital. It has chosen only the top 0.2 percent of investment opportunities, rejecting the remaining 99.8 percent. That led to the previously mentioned rate of more than 50 percent for unleveraged IRRs on investments. Since Aperture will continue to use the same strategies and methodology for investments made with the Property Coin ICO funds, similar results should continue.
What Are the Benefits of Holding Property Coin Tokens?
Everyone who holds a Property Coin token, PCX, will have a fractional percentage of the assets within the Purchasing Coin purchasing entity. Additionally, coin holders are entitled to half of the net profits from those loan and property investments. Because Aperture will reinvest another large portion of the profits, the coin should experience a natural appreciation.
What Else Should You Know about Property Coin Tokens?
There will be a total of 21 million Property Coins, with just 1 million authorized for sale during the initial sale. The rest of the coins will be held and then sold in future sales. This is a unique approach, but the team feels it makes sense. Investors should keep in mind that the unsold coins will not hurt the value of their own, as no one holds those tokens, so they have no rights to profits.
Initially, the Property Coin price will be approximately $50. The team hopes this initial price can reduce the risk of people buying the tokens during the ICO then dumping them immediately. During the sale, it will accept USD and equivalent amounts of BTC or ETH. United States investors have a minimum contribution of the equivalent of $1,000 USD, which is lowered to $100 for non-U.S. investors.
While that minimum contribution is certainly higher than many other ICOs, Aperture feels this is necessary because of the type of investments it is making. The team also points out that similar platforms typically require investments of at least $2,000, if not $5,000.
Property Coin shows the numerous uses for the cryptocurrency world and should be a good way for those with an interest in real estate but no experience to get involved. The plan should indeed bring the option of fix-and-flip investments to the public. Because of its experience and the fact that it has already successfully used the same methodology, this may be a project to watch.