We are very excited to announce our first Tokenized Asset sale, the first public real estate STO conducted on Binance Smart Chain. This offering allows you to take ownership of a real world, yield generating asset represented by a token in your BSC wallet!
The power of the blockchain along with some unique legal structuring allows us to represent the ownership of a real estate entity with tokens. For more information on how tokenized real estate works, please see our article on tokenized assets.
Summary of investment
This property is located in Fargo, ND, which according to a recent ATTOM report is the 2nd most profitable market in the country for home renovations with a staggering 185% ROI. In order to take advantage of this, the investment includes a $10,000 renovation budget which is estimated to increase the value of the property by $20,000 based on renovation ROI and comparisons of nearby properties.
This property also features a 7.65% rental yield, generating a net total of $13,019 in rent annually. The property is rented out starting November 1st on a 1-year lease.
- Rental Yield: 7.65%
- Renovation and Appreciation (estimated): 9.29%
- Total 1-year return (estimated): 16.94%
How to view the property
In order to view the property, head over to app.landshare.io/property-details. Here you can see all the details about the property along with extensive information about the investment itself.
You will be able to see detailed information about the investment financials and information about the area the property is located.
How to invest in the property
The first step of the investment process is to complete the KYC process. Click on the “Apply for Whitelisting” button to be redirected to the Blockpass KYC panel and complete the KYC process. NOTE: PROVIDE BSC ADDRESS IN ETHEREUM ADDRESS FIELD. DO NOT PROVIDE AN ETHEREUM ADDRESS. YOUR WALLET MUST HOLD 25 LAND TO BE WHITELISTED.
If you are approved for purchase, you will receive an email from Blockpass indicating that your KYC has been approved.
Once you are cleared, you will be eligible to participate in this property sale along with all future sales on the platform. The sale will officially kick off in late October or early November. In future sales, tokens will be made available immediately upon listing of the property.
When buying the property, the payment is made 90% in BUSD and 10% in LAND tokens (based on USD value). For example, to buy 1 token at $50:
One asset token:
All LAND raised from the sale will be burned.
When the sale starts, you will be able to interact with the exchange contract on the property information page linked above. You will be able to directly exchange BUSD + LAND for asset tokens. The minimum buy is 1 token, or $50.
Tracking the Value and selling the Asset Token
The token value will be updated based on annual appraisals. The appraisal will account for both the normal appreciation of the asset and the value added by renovations. Any change in the value of the property will be accounted for in the token value. When Landshare buys tokens back, the price will be based on the most recent property appraisal minus the initial renovation investment. When selling back to the platform, you will receive 90% BUSD and 10% LAND. Tokens exchanged between investors can be negotiated and sold at an agreed upon rate.
Asset Token Restrictions
The following countries are not permitted to purchase asset tokens:
- United States
- Central African Republic
- Democratic Republic of Congo
- North Korea
- South Sudan
This list is not all inclusive. Additional restrictions may apply. Token lock periods may also apply to certain jurisdictions. Additional information will be provided in follow up documentation such as PPMs and Token Purchase Agreements.
Landshare is proud to offer the first ever real estate sale on the Binance Smart Chain! Our investment allows users to benefit from 3 different components: appreciation, renovation, and rental income. This provides a unique opportunity to diversify your portfolio and generate passive yields from a famously reliable market.
In order to participate in the sale, users must hold LAND and pay 10% of the raise amount in LAND tokens, all of which is burned. This will provide a stronger use case for the token and reduce the circulating supply with each additional property sale.