How Blockchain Will Revolutionize Real Estate

Have you ever wanted to get into real estate or house flipping but you were unsure how? Are you looking to diversify your investment portfolio with cryptocurrency but don’t know where to begin?

With Property Coin, real estate experts and cryptographic property analytics give you the opportunity to own part of the largest asset class in the world on the blockchain. We make real estate investment easy by leaving property acquisition to seasoned experts, democratizing ownership of pools of properties through tokenizing assets, and removing the hassle of real estate investment and third parties.

Want to learn more about how cryptocurrency is changing real estate? Read our new infographic below.

Blockchain Real Estate Infographic

Aperture Proudly Launches Property Coin

Aperture is proud to announce Property Coin, the first cryptocurrency backed by a professionally managed portfolio of fix and flip assets and loans.

Aperture's team estimates that during their careers they have been involved in the closing of over $150B of real estate financing transactions, over 3,000 property flips and the origination of over $10B of mortgage loans. Along with the entire Aperture team, Co-CEOs Matt Miles and Andrew Jewett are excited to share this innovative and groundbreaking offering with the world.

Andrew Jewett Andrew Jewett co-CEO of Property Coin
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At its core, our business revitalizes neighborhoods, creates jobs and improves communities, all while creating profitable trades for our investors, its a win-win. We have developed and implemented a sophisticated, data-driven and proprietary technology platform that not only identifies potential assets for acquisition but also manages the entire process from start to finish.

How Cryptocurrency and ICOs are Moving Into the Real Estate Market

Diversifying your investment portfolio with real world assets on the blockchain

What is a Cryptocurrency?

  • A decentralized, virtual currency used for online trading on public ledger known as blockchain
  • 2018: Over 1,500 currencies exist and on over 200 exchanges
  • Types of Cryptocurrencies
    • Transactional Coins
      • Used as money and exchanged for other cryptocurrency or fiat money
    • Utility Coins
      • Perform specific cryptographic task and purchases good or service directly from issuers
    • Security Tokens - emerging
      • Offer investment and profit sharing opportunities in a pool of assets or a company

Almost ½ of investment institutions have yet to form an opinion about cryptocurrency―so investment and adoption still have plenty of room to grow

  • ICO: Initial Coin Offering
    • What is an ICO?
      • A form of crowdfunding that helps startups raise capital for innovative projects, cryptographic, and investment applications
      • The project founders issue a new cryptocurrency and release it to the public
      • Founders predetermine the number of minted coins, and value stays static during ICO period
    • ICOs On The Rise
      • In 2017, $5.6 billion was raised by ICOs
      • ICO venture investments are growing in popularity
        • In January and February 2018...
          • Total ICO funding raised
            • $3.1 billion
        • ICOs in corporate finance and asset investment have potential to change the layout of the market

Asset backed cryptocurrencies offer investors diversification, fractional ownership of asset, and lower pricing volatility than other cryptocurrencies.  Lets have a loot at how blockchain and cryptocurrencies merge with residential real estate – the largest asset class in the world

The State of Real Estate

  • 2017: The total value of U.S. housing stock rose 6.5%
    • 2016: $29.7 Trillion
    • 2017: $31.8 Trillion
  • 2015: Global value of real estate
    • $217 Trillion
      • 832x the total market cap of cryptocurrency markets ($260 Billion)
      • 36.2x value of all gold ever mined ($6 Trillion)
      • 3.9x total value of equities ($55 Trillion)
      • 2.3x value of outstanding debt securities ($94 Trillion)
  • Residential Real Estate
    • Largest asset class in the world
      • Residential real estate: $162 trillion
      • Outstanding securitized debt: $94 trillion
      • Equities: $55 trillion
      • Equities: $55 trillion
      • Equities: $55 trillion
      • Gold: $6 trillion
      • Cryptocurrencies: $500 billion
    • 2016: ¾ of global real estate is residential
    • U.S. home sales (in number of homes sold)
      • 2017: 6.17 million
      • 2018: 6.35 million
      • 2019: 6.45 million
    • Hurdles to non-institutional investors
      • High entrance standards including industry experience
      • Larger REIT investment firms are highly competitive
      • Residential investment and fix and flip requires lots of money and expertise
  • Attitudes Toward Real Estate Investment
    • 71% of Americans wish real estate investment was easier
    • 66% of Americans believe flipping houses is a great way to make money
    • 48% of Americans would be more likely to invest in real estate if technology was available to make it easier
  • House Flipping
    • Investment in real estate and property improvements that increases value
    • Most flippers are individuals or small investment groups, not large firms
    • In 2017,
      • 207,088 U.S. single family homes and condos were flipped
        • 11-year high
      • 138,410 individuals and institutions flipped homes
        • 10-year high
      • $46.3 billion total homes flipped in 2017
        • $40.2 billion om 2016
      • $16.1 billion total dollar volume of financed home flip purchases
        • 2016: $12.7 billion (+27%)
        • 10-year high
      • 34.8% of flipped homes were originally purchased by the investor with financing
        • 2016: 31.6% (+3.2%)
        • 9-year high

Most people agree that real estate investment and house flipping are lucrative ways to make money but see it as too difficult to get into―but the tide is turning

Blockchain is revolutionizing the real estate market―whether you’re buying entire homes or shares in pools of properties, crypto is changing the meaning of diversification

Digitizing Commodities: How Blockchain Is Changing Real Estate

  • Real Estate Crowdfunding Makes Real Estate Easy and Affordable for Everyone
    • January 2018: U.S. median price of new home: $323,000
    • Real estate might be expensive, but crowdfunding and real estate ICOs are making it easier
      • More accessible to passive investors
      • Larger investor base and greater diversification mean more democratized and affordable real estate investment opportunities
  • Tokenization of Fungible Assets
    • Buying rights to a real-world asset and converting its value into a Proof-of-Asset token on the blockchain
      • Makes physical assets more convenient, faster, and easier to split into shares among investors
      • Removes the hassle of legal agreements and exchanging paper money from the asset trade
      • Offers democratized ownership through real estate securities on the blockchain
      • Makes it easy to tokenize large amounts of like objects and split up large objects into shares
  • Crypto in Real Estate
    • Blockchain Innovations In Real Estate
      • Ownership of a large portfolio of tokenized assets
      • Transaction and title records are decentralized and safe from forgery assets
    • The Big Difference
      • Instant trading on blockchain avoids tedium of normal real estate trading and allows sellers instant returns on sales
      • Fractional ownership and decentralization makes investment in real estate accessible to a new universe of shareholders
    • Benefits of professionally managed portfolio of tokenized real estate
      • Fast and cost-effective way to diversify your portfolio with fractional tokens
      • Hands-off investment that leaves property acquisition and rehab to the experts
      • Reduces potential exposure to crypto market volatility through clear and regular updates on value of physical assets

An asset-backed ICO is a unique way to diversify your investment portfolio―what better asset than a stake in the largest asset class in the world: the residential real estate market

Sources:

https://www.investopedia.com/terms/c/cryptocurrency.asp

https://coinmarketcap.com/all/views/all/

https://www.nasdaq.com/article/3-types-of-cryptocurrencies-you-need-to-know-cm905488

https://medium.com/@argongroup/8-important-things-to-know-about-security-tokens-token-regulation-3d548a1a6367

https://www.cryptocompare.com/coins/guides/how-does-an-ico-work/

http://www.businessinsider.com/how-much-raised-icos-2017-tokendata-2017-2018-1

https://www.coindesk.com/ico-tracker/

https://news.crunchbase.com/news/2018-vc-investment-crypto-startups-set-surpass-2017-tally/

http://fortune.com/2017/06/26/ico-initial-coin-offering-investing/

https://www.nasdaq.com/article/how-tokenization-is-putting-real-world-assets-on-blockchains-cm767952

https://www.zillow.com/research/total-value-homes-31-8-trillion-17763/

http://zillow.mediaroom.com/2016-12-30-U-S-Housing-Worth-Record-High-29-6-Trillion-in-2016

http://www.savills.co.uk/_news/article/72418/198559-0/1/2016/world-real-estate-accounts-for-60--of-all-mainstream-assets

http://www.telegraph.co.uk/finance/property/news/12116347/What-is-all-the-property-in-the-world-worth.html

http://pdf.savills.asia/selected-international-research/1601-around-the-world-in-dollars-and-cents-2016-en.pdf

http://www.savills.co.uk/research_articles/188297/198667-0

http://www.freddiemac.com/research/pdf/201801-Outlook.pdf

https://repository.upenn.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1006&context=joseph_wharton_scholars

https://www.investopedia.com/articles/investing/012617/how-get-loan-flip-house.asp

https://drive.google.com/file/d/0B_p35YXwr6B6b1p4VEdfVGR2a0E/view

https://www.prnewswire.com/news-releases/us-home-flipping-increases-to-11-year-high-in-2017-with-more-than-200000-homes-flipped-for-the-second-straight-year-300610324.html

https://www.census.gov/construction/nrs/pdf/uspricemon.pdf

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https://www.forbes.com/sites/navathwal/2017/02/17/real-estate-crowdfunding-3-trends-to-watch-in-2017/2/#63ada99c5c73

https://www.forbes.com/sites/forbesrealestatecouncil/2018/01/12/three-ways-blockchain-could-transform-real-estate-in-2018/2/#67ba0aee17b7

https://www.investopedia.com/news/how-blockchain-technology-changing-real-estate/

https://www.mansionglobal.com/articles/77889-bitcoin-and-the-blockchain-are-disruptors-in-global-real-estate

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