Real Estate investing and property ownership is a must in the world of professional investors - it's virtually standard practice to own real estate assets among high profile investors and investment funds.
As the cryptocurrency markets grow, many younger investors who started in cryptocurrency are looking to diversify, but with that comes a giant leap into markets they likely know nothing about.
Global REIT is trying to bridge that gap. REIT stands for "real estate investment trust" and Global REIT is building an investment platform that blurrs the lines between traditional real estate investing, cryptocurrencies, and blockchain.
First let's understand the basics of REIT's and why they attract investors. One of the main reasons investors looking to diversify use REIT's to enter the real estate market is generally investing in property outside of your home country comes with lots of red tape, in fact in most jurisdictions foreign investments are flat out banned.
A REIT however forms an 'alternative investment vehicle' by creating a trust or corporation that invests in property - then that trust or corporation can be publicly or privately listed and opened to investors from around the world. If a RIET plays their cards right, the rewards can be significant - on average 90% of dividends are then paid out to investors.
Moving this structure onto the blockchain, and powering the investments with cryptocurrency now means the average cryptocurrency investor can easily access the real estate investment market. Global REIT will begin in their home of Dubai, a place where real estate is currently exploding, and acquire assets within the U.A.E, before branching out globally.
This is why token purchases form Global REIT function like subscribing to and investing in a traditional REIT would. The twist here is an investor will buy into Global REIT with Ethereum or Bitcoin, receive their token, then based on how many tokens someone holds, dividends will paid out monthly will be via USD or USDT (tether).
Their post-ICO goals include immediately moving to purchase $75 million in U.A.E. real estate assets, and to grow that to $10 billion within 5 years.
Global REIT's public ICO begins June 1st.
Note to investors inside the USA - you'll have to sit this one out.
Learn more about Global REIT at http://globalreit.io
Author: Adam Lee
Asia News Desk
