Hey @TuruGlobal, great project post here, and nice to see you guys interacting often with the community.
Interesting idea you have here and it sounds like a fun and exciting project. We have a couple of questions that we think can help the community understand how certain tasks will be executed in real life. Therefore, we will also be asking some scenario-type questions.
Is the minimum amount to invest 250. USDT for a Bronze VBS brick? Can a user buy 0.1VBS for 25USDT for example?
Is there a maximum brick allocation a person can own per property? What happened if a person bought up 2/3 (majority) of a property share and has complete control?
What happened if 2/3 of the holders wanted to sell their property for example and the remaining 1/3 disagrees? To sell a property, there will be upfront fees such as advertising, evaluation, etc. Who will pay for the upfront fees if the remaining 1/3 decided not to contribute to any fees used for selling the property?
When we convert USDT to Fiat, there will be some sort of conversion fees so we won’t get the exact amount in USD. How do you plan on addressing this issue? i.e 150,000 USDT may only yield $148,500 if there’s a ~1% fee.
How do you deal with unexpected real-life situations for the property? i.e property break-in or mandatory maintenance fees.
Hi @TronLive thanks for the great questions, it will help us to fill up our Q&A section in our project. Let us answer them one by one…
A Brick will be minted as an NFT. There will be no such thing as fractional Bricks. Therefore the minimum investment will be 250 USDT. For loyal TuruGlobal community members (BabyTuru millionaire club members or Single Mint BabyTuru NFT holders) we will offer a $VBS token value at 1 $USDT, which is not investing in a specific real estate object but in a small portion of the TuruGlobal portfolio.
There is no maximum brick allocation but the fact that we sell the NFT’s on three different blockchains should result in spread of ownership. If someone reaches 2/3 of the property in principle he has control of what to do. For example if you rent an appartment from the VersacBrickSquad, you could try to gain more and more ownership of that appartment and in the end be able to buy it yourself. For renters who don’t have the means to buy an apartment, this can be a play to slowly take ownership of the apartment. And the more they own the less rent the pay (as they earn it back) and can use the earnings to buy more and more bricks. Then when that person holds 2/3 of all bricks, he can enfors sales of the apartment so he can achieve full ownership. We think that this is a powerful method for renters to slowly build up ownership without the need of having a cut throat mortgage agreement with a bank.
TuruGlobal will take care of the sales process including fees and will be very transparant about exact details when it goes towards this direction. The selling price (- fees) will then be proportionally shared over the Brick owners. Selling a property will only make sense when the valuation went up. If a specific owner want to cash out, he or she can also sell their bricks on secondary market and transfer ownership instead. Here the fees applied are minimal (depending on which chain this Brick resides)
FIAT is not in our scope, we assume that buyers of our Bricks will pay us in USDT and will receive their revenue share in USDT as well. It is a project to give individuals the chance to own property through crypto. We have plans to build in a direct FIAT to Crypto module in our platform as well, where a fee will apply. This should be part of the ROI calculation of our customers.
We will insure our property and the costs of insurance will be deducted from the rent income before spreading it. Maintenance costs is something the DAO’s have to decide about either create a reserve fund by allocating part of the revenue, or suffer a temporary stop in income to compensate for the maintenance fees occured.
I have two question that has been running throught my mind.
Assuming that I’m buying a brick for a price of say for example 2500 usdt that will indicate a “shared” % ownership of the property. But say I want to sell my brick on the secondary marketing for a lower price,
will that effect the project in anyway
Will the new owner get the same shared % I got to begin with or will a new calculation be put in place
We want to open the possibility to own a piece of real estate to an audience as big as possible, but we also want to ensure solid rewards distribution. With 250 dollar you will own 0.25% of a 100k USD apartment which brings 400 dollar rent per month. So holding a 250 dollar brick would earn you 1 USD per month.
Smaller bricks would earn fractions of a dollar. Which is not a problem perse for TRON based NFT’s as we have enough energy to distribute, but for BSC and especially ETH, the fees would kill it.
So we have taken a consious approach to find a minimum investment level that at least brings acceptable returns.
A brick represents a part of ownership independent for which value it has been sold in secondary market.
So if a Brick is sold for a cheaper price then the original price, it can mean two things.
The previous owner needed cash and sold out below value making the new owner happy
The value of the property decreased so it is a fair market price.
So it won’t affect the project and it won’t affect the share. Every brick represents a certain share of the property based on its original valuation.
There is no KYC connected to VBS. We only need one person representing the DAO of owners to manage the legality of the project.
That means that we don’t take care of taxes but every investor needs to take care of it themselves in line with their country tax regulations.
In most cases this means the income you generate should be seen as just that, income. Than based on your country rules you should declare it and pay tax accordingly
Great reading about your project and it’s really innovative to connect NFTs to this type of investments and also opening up for smaller investors to team up and work on a bright future for al. Really inclusive for all.
I have some general questions you could maybe address that come to my mind when reading your plans. Here it goes.
There is a difference in the quality of the property acquired and the amount of rent/income it will generate. How do you ensure that there is a steady stream of income, and not that the property is bought and no income will be generated?
Do you intend to set a minimum of income per Brick?
In what period of time do you intend to break even on the initial investment made?
These brick NFTs will they also be made up by an artist? Hense having something that looks great and has value will help boost the initial price… Or is that not the intention.
Does a brick always have to be traded between investors? It can and will not be sold back to the VSB project owners?
Will a brick always keep its original investment value(is price fixed)? Or will it i.e. gradually decline just when selling it to a new investor when you leave a project?
On what nft-platform(s) will bricks be sold/auctioned?
Hey… first of all let me say I loved the idea of defi+nft+real estate… Very nicely structured & it was a great explaination covering the insights of the project… but still I have a few questions & hope to get them answered
On what basis/factors the location/property & it’s rates will be decided? And who will decide? Also how can anyone know whether the price set is fair?
Who will be dealing in physical on behalf of dao? Like to whom it should be rented, criteria/agreement for renting, maintaining it, collecting rentals on time etc… I mean who will cover all the physical processes…?
What will be the expected time for getting the returns for the investment…? Will there be any minimum income set per brick or per dao/property?
As per above, most of the day decision will be based on 2/3rd… so what is 2/3rd actually? 2/3rd members of dao? Or 2/3rd in brick volume? ( The person holding more (say 5) bricks has more voting power than others (holding less than 5) or both are equal? while making decisions)
Is there any extra benefits (like discount or any other) to big investor/group except the dao decision? Also any extra benefits to early adopters? (Like any airdrop or some surprise % addition of earning)
Let’s try to answer all your questions one by one below:
We try to select properties in major cities at prime locations to limit the risk of missing rent income. The first properties will be in housing projects under development to guarantee demand. We openly share details about the properties, so buyers can check if it fits their risk profile
No minimum income per brick. We open the opportunity to buyers to co-invest with that also comes sharing the risk. We give all details, so they can do their research as well and decide whether they are comfortable it will give a good reurn.
That is a difficult question to answer. The ROI depends on average purchase price and average rent income and is different per location. Prior to opening up a project, we will though provide indications based on market data
The Brick NFT’s will be more basic NFT’s than what the community is used to. Every object will have its own bricks though
No a brick can be put of for sale on a secondary NFT platform like Uswap, Kraftly or Open Sea
A brick will always keep its initial portion of ownership. The market defines what is happening with the value of the property and therefore the brick
To be announced in the near future. A platform which allows royalty fees
The value of a property is defined based on value + expense. The income is defined on the lease contract with someone who is renting the appartment - utility costs if any. It will be provided in full transparancy
It will be a TuruGlobal representative, using the lawyers office for TuruGlobal to manage legal matters.
There will be no minimum income, we will estimate the potential return when putting the bricks up for sale. And we will track reality showing actual returns in our media channels, to support potential secondary sales
2/3 of the value owned. So someone holding a gold brick has a bigger voice then someone holding a bronze brick
This is still under discussion. We might give incentives for ealry adopters using our other native tokens, but nothing has been decided yet.
? Do you have any shortlist on which countries could be next in line ?
