Based in Dubai, Global REIT is a project built on the blockchain that deals exclusively with real estate. They are not the first one to try to do this by any means, but then that alone should not be enough to put you off at least checking out what it is that they have to offer you. After all, there just seems to be no reason as to why it would not work, and that becomes even more apparent when you look at the set-up of the Global REIT approach.
The Benefits of the Blockchain
There are a number of benefits of using the blockchain, and perhaps the main one has to be the way in which it opens up the possibility of investing in real estate to a wider range of people than you could have ever imagined. Basically, it will allow individuals to purchase small shares in properties and then benefit from it in the long-term, so perhaps look at it as building a property portfolio but in miniature.
The good news about the blockchain is the way in which it can use Smart Contracts that cannot be altered to effectively set everything into stone. Let’s face it, these Smart Contacts will also provide a real sense of security for all parties which then boosts overall confidence in the product that is being offered.
In general, what this means is that you will venture onto their platform and sign up for an account. You purchase tokens with those tokens representing a share in a property, with them starting off in Dubai. How big a share you have depends on the number of tokens, which does seem like it would be a perfectly fair thing to do.
All of this is able to be tightly controlled and verified thanks to the blockchain. It allows the company to know exactly who owns how much leading to an easier split with profit sharing. This alone is a great advantage over other methods, and it would be substantially harder if you had gone ahead and tried to use other methods already in existence.
But Does it Work?
So, the theory and the benefits associated with the blockchain are clear for all to see, but does the entire process as set out by Global REIT really work? The short answer is that yes it does, and they also throw in a few bonuses, along with a second type of token that provides you with access to properties as part of the deal, and we are talking about a company with experience in this field.
All they are doing is seeking to use new technology and approaches to further their company. Also, you need to look at it in the same way as buying shares in a company as part of an investment. You know that a certain number of shares equates to a particular percentage, so if that is the case with a business then why would it not work with a property or other verifiable asset?
With the product that has been put forward by Global REIT, there is nothing complex about what they do or how they plan on getting everything to work. You sign up, buy shares, you then see how much of the property you have, nothing else in the world could be as easy as that. In fact, thanks to the actual mechanisms of the entire process, there is pretty much nothing that could then go wrong.
Global REIT does have some very real potential with all of this and they are certainly starting off in a part of the world where property is at a premium and always sought after. If people are able to see a profit from their ‘shares’ then not only will they wish to invest more, but they will also draw in others at the same time. All of this is then going to result in the value of the tokens increasing quite considerably, which is just another huge bonus for anybody that did indeed take the plunge early on and become involved in what this company is doing. So, if you wanted a property portfolio and never had any idea as to how you would be able to do this, then rest assured that there is an answer out there and it uses the blockchain to help you out.
The ICO is scheduled to end soon, with around 10 days left. However it may hit the hardcap sooner with over $12 million of tokens already sold.
My post on Steemit: https://steemit.com/crypto/@dan90/global-reit-leveraging-the-blockchain-for-real-estate-investment
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