Cybereits：Let the real estate move! How will the block chain subvert the big cake of real estate investment. cybereits Follow Jan 31, 2018 · 7 min read

Are you still saving money for the first down payment?

Are you able to buy a house but suffer from the purchase limit, and do not know what to do with the money?

You want to buy real estate abroad, seeing other people buy around the world, but the only thing you can do is envy?

Real estate investment process is complex. Once you are not careful, you may step on the pit. So what would you do if you have no professional knowledge of buying a house?

……

At present, the threshold of real estate investment is getting higher and higher. For ordinary people, they have saved money on food and expenses but may not buy a house, which has become a permanent pain in the hearts of many people. The people who got on the wealth train with the real estate investment have become the winners, and those who didn’t get on the bus could only watch their wealth go further and further away from themselves. Real estate has become the wealth watershed in fact.

Can the block chain technology subvert the model of real estate investment and solve the pain of the buyers? Just imagine that if the problems (the uncut of the house, difficult to quickly identify and transfer the income ownership) can be solved, the threshold of real estate investment will certainly be greatly reduced.

I. REITs making the real estate break up the whole into parts

In fact, REITs is the financial product that has this nature.

REITs is translated into “Real Estate Investment Trusts” , in another word, it is to put the money together, then hand these money to the fund manager to invest in real estate, and the money made by rent and sale will be divided. REITs founded in 1960, is widely welcomed abroad because its performance is superior to stocks and government bonds in the long-term. But due to various reasons, there is no such product in China.

As a whole, the compound annual growth rate of REITs has exceeded the various indexes in the past 40 years.

II. Cybereits making the global real estate break up the whole into parts

Although REITs is good, as the financial product in the designated countries, there are also inconveniences. The recognition of ownership needs to be handled by the audit and physical delivery, with a high cost, resulting in high threshold for product distribution. It is basically unable to participate in it for ordinary people.

As the block chain can only deal with the delivery of digital real estate, it just can solve the above problems, Not only the effective confirmation of the effectiveness and efficiency can be effectively guaranteed, the cost also can get lower of orders of magnitude. As the next generation internet-value internet, by using the transparent and open nature of block chain technology, all parties can reach a consensus on “real estate confirmation”, and in combination with the global liquidity of digital assets, ordinary people like you and me can quickly involve in the global real estate investment with low threshold.

Cybereits is the platform. We can see that from the project name, it is the combination of Cyber + REITs, aiming to do Reits business on the Internet.

III. The running of Cybereits

We can understand the operation of Cyberits by two blocks: on the chain and off the chain.

Due to the different situations of real estate countries, off the chain, Cybereits needs to set up SPV (such as the main body of trust and limited liability companies) in different regions to integrate local resources, evaluate and acquire high-quality real estate with appreciation potential according to the real estate revenue model, and be responsible for real estate management and leasing, and at the same time trigger the sale when the earnings have reached the expected value or the original sales period set before.

On the chain, it also can be divided into two parts, the authentic right of real estate and risk control materials will be stored in IPFS and other decentralized distributed storage file system, and carry out mapping and currency on the chain according to the real estate value. For example, buy a set of area of 100 square meters and the value of 1 million US dollars of real estate in the United States, and it can be divided into 10,000 copies, each equivalent to 0.01 square meters for sale.

When mapping the real estate on the chain, each set of real estate issues digital assets as a separate asset on more credible chains (it can be public chains, or affiliate chains and private chains). Users holding digital tokens can buy, transfer, hold or sell shares.

The holdings and transaction data or real estate shares can be checked through the block chain, and the shareholders can enjoy the rent dividends, as well as the corresponding proportion of housing sales premium. These operations are automatically implemented through a series of intelligence contracts.

Cybereits Intelligence Contract

It is worth mentioning that Cybereits as a block chain project has already completed the pilot project of business landing (Kakamaifang) and the verification of business logic, and the domestic users can experience it through the WeChat public account “KaKamaifang”.

IV. Speculation on the way of real estate investment participation of Cybereits

In ideal conditions, Cybereits platform will be possible to realize the various scenarios related to real estate investment-

As the ordinary investors, as long as they have digital tokens available on the Cybereits platform, investments can be made for the smallest share of a particular real estate. According to the sale of the KaKamaifang application (KaKamaifang is the domestic landing project of Cybereits) on WeChat, we can participate in it with only few hundreds.

For ordinary people who were born in China but want to buy house in the United States, most of them have no choice except a few capable people. Now, we can buy real estate in the United States with the digital assets in our hands, which will bring a huge change to the current digital money market. The digital currency in our hands is no longer considered a speculation tool but a real liquidity asset.

What needs to be stressed here is that after the acquisition of shares, the investors own the earning right of real estate and have no ownership and disposal rights.

As the owner of real estate, you can also put your real estate on the chain by assessment, mortgage offline and handling notarization procedures, and decide how much to sell through the Cybereits platform, such as selling only 10%. On the one hand, real estate can flow quickly to liquidation. On the other hand, there may be room for instability in housing prices to retain more profits. But according to the rules of Cybereits, the owner of the remaining real estate is required to pay the rent for the sale, the rent will be returned to a specific buyer after deducting the relevant expenses.

In addition, it can also be assumed that if the right to use the real estate is also managed through intelligence contract, the validity management of rent and check-in of the real estate, as well as the automatic settlement of the costs will also be possible. Imagine the combination scene of Airbnb+Cybereits……

With the achievement of authentic right of real estate and digitalization consensus, real estate is no longer “heavy”. It will be possible to buy on demand, sell on demand and purchase by capacity.

Cybereits also has the hidden skill: because the volatility of digital monetary market is great at present. When the whole market falls, the currency investors usually avoid the risk by replacing it with USDT or Bitcny. There may be another option in the future, and we can convert some of the digital money assets into real estate investment. This function is undoubtedly great good news for the majority of the currency investors.

V. Risk of operation model

1. Policy risk: The project uses the block chain technology for the authentic right of real estate. At present, it has not been approved by law enforcement agencies in every country. In extreme cases, such as the zeroing of digital assets, it is difficult for the holder to assert his rights based on his share as valid evidence. Therefore, the investors who hold a share of the real estate on the Cybererits platform, should only be able to coordinate by Cybereits if problems arise.

2. Landing risk: Because the project belongs to the global real estate investment, it needs to face different requirements of real estate policies of every country. Project developers will face complex real estate investment environment, legal constraints and so on when expanding their global business. Besides, it also needs specialized real estate investment and management team to manage in real estate management. At present, in the team structure, the professional talents of real estate investment have not been introduced. But there is already a mature market for talent supply. Project developers need to establish local management team or cooperative organization to overcome the problem of inefficiency when expanding their global business.

3. Operation risk of centralization

The chain works of Cybereits, including the purchase and management of real estate, are centralization operation. Whether business information can be disclosed or whether the real estate disposal model is valid or not all need time to verify.

VI. Core team and counselors of project team

1. Team members

The project is mainly based on financial product attributes. From the experience and qualification of the team members, the four core members are senior practitioners in the field of finance or real estate who are powerful.

2. Early investors and counselors

Early investors

Investment organizations

Project counselors

Investors and investment organizations have great help to the development of the project. The investors and consultant team are very luxury. Li Xiaolai, Laomao, Huang Minqiang are the stars in the field of block chain, believing that they can joint many resources to help the development of the project.

VII. Future plan of the project

According to the project plan, the 2018 will be a year for Cybereits to push forward and make milestone progress-In the first quarter, China Real Estate Financial App will be launched. The second and third quarters will focus on the construction of real estate digital certification standards and certification platform. In the fourth quarter, Cybereits will officially launch its global real estate platform.

Compared with many block chain projects at present, Cybereits can be landed in a year. We can see that the project developers are still confident. So we may as well pay close attention to the progress of Cybereits.

Log in https://cybereits.com for more information.

Friendly reminder: Discreet investment is suggested for the risk of entry market.