What is Global REIT?
Global REIT is the world’s first decentralized platform that is based on real estate investment. The use of smart contracts and blockchain technology makes the Global RIET different from the traditional real estate agencies. The net capital at which the platform started was around 75 Million US Dollars. In three years this platform plans on reaching to a capital of 2 Billion.
Global REIT welcomes those investors who at the same time wish to invest in real estate and acquire dividends and real estate holders. This platform acts as a trust corporation in which ownership is claimed or finances is given to the business person which can be publically or privately owned. All the activities of the platform include long-term investments in which generation of income strictly depends on rent collection, financing interests sale proceeds from assets under management.
This platform offers Dual Utility tokens to its users which include:
- Global REIT Fund Manager Token (GREM) and
- Global REIT Asset Token (GRET)
This means that besides the utility attached to both the tokens each user of Global RIET will receive a share in the returns of Fund Management Company GREM and Asset owing company GRET.
Features of Global REIT
Global RIET offers certain features to their customers that include:
- Global RIET provides access to all its Assets under Management (AUM). This future access includes the clients get to stay free of charge in its 1st hospitality asset every year.
- Loyalty Programs that are attached with their AUM are accompanied by the reward points.
- Assets that are acquired globally are included in the asset portfolio of Global REIT. This feature is restricted in the case of traditional REITs.
- Participation in the Fund Management Income benefits the token holders of Global REIT. This income is not offered by the traditional REITs.
- Dividends are paid to token holders of Asset Owning Company on monthly basis.
How does Global REIT work?
Global REIT works in the same way as any other traditional REIT; however, the only difference is that it has smart contracts and a public holding structure that is based on blockchain technology. It allows the investors to receive dividends on monthly basis as a return on their investments. This platform manages both fund manager’s returns and income from the assets and also allows users to participate in it. The token distribution mechanism of the platform is done in a way that every subscriber receives two tokens named as GREM and GRET.
Global REIT users need to subscribe to both the Global REIT Fund Management Token (GREM) and the Global REIT Asset Token (GRET). In addition to the utility which is offered by both the tokens users also get access to the share returns of GREM and GRET. Users also get various opportunities from this platform that includes:
- Users who have above 5000 GRET and GREM token are rewarded with free stays in their 1st hospitality asset every year.
- This platform supports multiple cryptocurrency payment gateways for selling real estate assets within the ecosystem. This option is available for users with 100,000 GREM tokens.
- After three years the GREM token holders will receive a stable annual income of 1.25%.
- GRET token holders will get a steady return on their investment income of 8%.
- For the frontend and backend of all the assets, this platform also provides an asset management model.
- This platform provides a transaction module for API and Interface calls for external transactions.
- For the security of all the transactions done by the investors and asset owners, this platform has a compliance and security module.
How token will be distributed among different end-users?
1. GREM token utilization proceeds in following ways
- Percentage of GREM tokens which are planned to be issued to the public during the pre-sale phase of the ICO is 29%.
- Percentage of GREM tokens which are planned to be issued to the public during the crowd sale of the ICO is 11%.
- Percentage of GREM tokens which are planned to be reserved for the advisors of the company is 5%.
- Percentage of GREM tokens which are planned to be distributed to the Funds managers of the Company is 55%.
2. GRET token utilization proceeds in following ways:
- Percentage of GREM tokens which are planned to be distributed to the public during the pre-sale phase of the ICO is 16%.
- Percentage of GREM tokens which are planned to be issued to the public during the crowd sale of the ICO is 6%.
- Percentage of GREM tokens which are planned to be distributed to the Asset Contributors by the ICO is 78%.
Funds Allocation (100%)
The allocation of funds generated through the ICO will be done as follows:
- Percentage of funds that is to be allocated to the sales and marketing department of the ICO is 35%.
- Percentage of funds that is to be allocated to offer fixed compensation to the ICO team is 30%.
- Percentage of funds that is to be allocated to the Administrative department of the ICO is 15%.
- Percentage of funds that is planned to be allocated to the legal affairs department of the ICO is 10%.
- Percentage of funds that is planned to be spent for the Audit of the Platform is 5%.
- Percentage of funds which is planned to be allocated to be allocated for other miscellaneous expenses of the ICO is 5 %.
Buying Global REIT Tokens Using E-Wallets
Global REIT platform supports ETH and is backed up by ERC20 tokens. Therefore, people need to send the ETH to the platform in order to purchase Global REIT tokens. Since ETH and Global REIT tokens are both cryptocurrencies that are stored in an e-wallet so e-wallet is essential for all the users who want to buy Global REIT tokens. Global REIT tokens can also be exchanged among the people who want to sell and buy them even after the public sale of ICO ends.
Pros of Global REIT
- Provides monthly dividends to users in return for their investment.
- Reward points are given to the users who further add more users to this platform.
- In order to provide security of all the transactions done by the investors and asset owners, this platform has a compliance and security module.
Cons of Global REIT
- The market at which the project aims has a slow growth rate.
- There are many competitors in the market that offers more benefits to real estate investors.
Final Words: Real estate industry is among the popular industry that assures higher gains to someone who has the power to take risks. As we are already familiar with the fact that the greater the risk greater is the returns, therefore one can make huge profits by registering on the platform. Although, real estate industry has a slow growth rate but still as far as the overall benefits are concerned that can be neglected.