We saw an opportunity to democratize the New York real estate market, giving fractional interest to international token holders. This will, in turn, allow us to grow our real estate portfolio and procure exciting new assets.
NYCREC tokens will only be available at a time and date specified by the website. At some later date, they may also become available through secondary markets, like cryptocurrency exchanges.
NYCREC tokens are priced at $0.20 USD per token and can be purchased with ETH. To find out the approximate USD or other fiat pair value of ETH right now, click here.
To be determined.
To be determined.
The New York City Real Estate Coin pre-sale and public sale are only open to non-US citizens and non-US permanent residents. You do not have to be an institutional or private investor to participate; however, the pre-sale has minimum contribution requirements.
NYCREC token holders get some of the benefits that come with owning real estate, including an interest in a tangible asset and a share of the cashflow generating efforts via Ethereum airdrops.
No, we don't. However, we do have a bounty program.
We want to obviate the exchange risk for our investors, so instead of holding all the ETH we receive until the end of the ICO, we reserve the right to liquidate it into fiat in order to preserve the value of the raise.
Real estate investment trusts (REITs) are a popular way to get exposure to real estate, but they fall short of tokenized real estate such as NYCREC for several reasons:
1) NYC REITs trade on New York Stock Exchange hours, which are 9:30am to 4pm EST. NYCREC tokens will trade 24/7.
2) REITs are, generally speaking, very narrow in scope. For example, you may have a REIT that focuses primarily on commercial properties, and another that focuses on residential properties. In order to get true diversification, you’ll have to manage the REITs you hold. With NYCREC, you get an actively managed portfolio that is more flexible than a REIT.
3) REITs come with expenses that cannot be avoided. The NYCREC team expects to lower expenses compared to a REIT, which means more pass-through value to the token holder.
We have an existing pipeline of proprietary deal flow in NYC. We plan to start with NYC and then broaden out to other major cities around the world. Our proprietary deal flow is mainly NYC, but it does cover other cities, and we always have the option to expand our reach (hire) as we scale our business.
Our fund does not have specific assets by design. Specific assets cap the return potential to token holders. For example if we bought out a funds or add pre-existing assets to the portfolio, then the seller would extract their own value for their pre-existing shareholders. Also a number of deals in tokenland for real estate are from developers. These sellers are typically backed by institutional money which will extract yield (see first comment). From an acquisition strategy we are what is know as “opportunistic” because we have the ability to produce assets up and down the capital structure. This is of tremendous value as it allows from maximizing risk adjusted returns through a life cycle of capital deployment.
Our firm is extremely compliance-centric, and we will be filing regular K’s and Q’s. We will have a board of directors, and the blockchain will allow for regular tracking of monies and status on all deals.
Governance – we are held to account on several fronts. First is we are a security offering and a Delaware LLC. Every member of the team is a US citizen and live in the US. This means we are liable and the regulatory authorities have complete access to us all. Since we are not earning a fee our economic interest are aligned with token holders. Nothing governs people more than economic interest. Third, almost every member of the team is or has been SEC registered, managed fiduciary funds, are/were compliance officers, CAMS certified, members in standing of the Bar (NY), board members and more. Fourth, almost no token company that has voting/governance rules in real estate is scalable.
We will be managing the dividends. Our goal is to pay dividends early to validate our model works and to support our next series/offering. We believe the flexibility in managing dividends will also allow for maximum operating efficiency. Setting a prescribed level is unwise until funds or fully deployed
Almost no REIT has the ability to move invested funds up and downgrade capital structure. This is especially true of GP & LP buy-outs. While this doesn’t preclude impacts from market forces, such as a recession or changes in interest rates, it does provide the opportunistic flexibility to manage risk and take advantage of unique situations.
Our real estate project will have a committee with final say on purchases, but any asset (within reason) can be tokenized.
These tokens will be treated as regular securities from a tax perspective. We are not tax accountants, so we do not offer tax advice. Please seek professional advice from an expert.