A new path to success

• I have been studying traditional models of real estate equity funds, and regulations for these funds.
• While the pathway to building traditional compliant funds is one I could travel, I am atracted to another path.
• Large companies like Blackrock, Tether Limited and Circle seek a different path to constructing tomorrows asset investing funds, the path of regulated real world asset tokenization and internet based capitol raises.
• This is a variation of a theme; tokenized real world assets.
• I can't claim it's a unique idea, as creaive individuals are building various versions of global digital markets for realesate, using tokenization.
• My goal is to combine the idea of tokenization of real world asset class realestate, with the idea of a realestate equity fund.
• This combines my goals of a digital, global reach product, and something enabling people not wealthy enough to acquire inflation resistant assets through traditional methods a affordable and possibly microtransaction method of acquiring real estate, a traditional, inflation resistant asset. It's not perfect with market ups and downs, but the luxury segment is traditionally resistant to large market swings and a microtransaction market in this sector could become a big business based on.

the potential

• Luxury real Estate costs anywhere from 2 million to 20 million in Hawaii, thus a roughly calculated median price of 10 million, which means purchasing 100 homes wold generate 1 billion in sales,
• Traditional real Estate fees of 6% generated 60 million in real estate commissions on a single sale os each asset.
• Tokenization of the assets allows microtransactions, which could generate a conservative estimate of 10 times as many transactions, which could be priced at 1% real estate commission fee and still generate 100 million in profits yearly.
• But where would a fledgling, no name, no network company go to raise seed capitol?
• Crowdfunding, like SeedInvest for example.

Seedvest

SeedInvest, the largest equity crowdfunding platform in the United States, reportedly has helped hundreds of companies raise hundreds of millions of dollars with internet-based securities offerings.
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• Seedinvest is owned by Circle, the maker of USDC fiat backed stable coin, USD and EURO versions.

Circle repoorts that SeedInvest is part of it's published plan to transform how companies raise capital, and open up investment opportunities to people everywhere.
Seedinvest plans to introduce new services that allow for fundraising using tokens and digital assets, marrying traditional financial contracts and assets with crypto.
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• This could be used as a fund raising platform to help launch Pacific Digital Assets.

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Other Circle Published Plans for an open financial system: the internet of finance.

Money and value move around the world as easily as any other data on the internet.
People connect to each other through payments, investments, lending, and other economic contracts in a fast, inexpensive, inclusive, safe fashion not controlled by a single company or government. But agreed upon by a multitude -- just like they do with information on the internet.
People and businesses raise capital and invest in projects and companies without obtuse, expensive, siloed gatekeeper intermediaries available only to a limited few.
Everyone with a mobile phone has access to the same powerful financial services previously exclusive only to the developed world.

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Internet of Value/Internet of Finance

• internet of finance: one of Circles published missions is to help create that open global internet financial system.

Blockchain based platforms like Ethereum allow for value to be programmed to do interesting things using applications called smart contracts. For example, title to a single rental property can be stored on the Ethereum blockchain. Using smart contracts, the owner could sell shares of the property to someone on the other side of the world. Someone in Mumbai could purchase 5% of an apartment building in New York and receive 5% of the rental income each month on an automated basis. This transaction is fueled by Ethereum’s native cryptoasset called ether. This example just scratches the surface of what the Internet of Value is capable of.
In the coming years, our global financial system will be rebuilt, creating a new era of peer-to-peer commerce. Entire industries will be disrupted and new businesses that weren’t previously possible will be created.
Cryptoassets and open blockchain networks will be the driving force of this new era.
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Last words

• This is a work in progress, as I use this platform to think out loud, write down my thoughts and build personal clarity.
• Feedback is welcomed.

@shortsegments

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