It looks like it's an interesting idea. But how chances to implement it efficiently?
Wish team good luck!
hi Wowcoin. Thank you. Just read our White paper and you'll find out how we plan to implement it efficiently.
I think implementing tokenization side of the business in a practical way is going to be a big challenge and they haven't figured it all out yet. Maybe they'll figure it out in time, but I see some critical flaws based on the whitepaper.
The P2P side of the business seems more doable.
What problems do you see?
There are a few issues, but one of the main things is that real estate is like an operating business, which makes it almost impossible to decentralize in a practical way.
I know they will be hiring management companies, but you still need a knowledgeable decision making authority because things happen in business. I'm not saying that properties will will fall apart, but they won't be maximized, and real estate values are based on capitalizing income. So, by transitioning to a decentralized structure, you are likely to negatively impact the value of the real estate unless you can manage the property at least as well as the person you bought it from. Why would anyone ever want to buy a property token if the value of their investment is likely to go down from day one?
Of course, these are generalized statements, but from what I know about real estate it's too complex to run in a decentralized way.
I'd say yours are extremely generalized statements, in fact in a video we're about to post from New York Fintech Week, the moderator who owns swaths of real estate globally stated that fractional ownership and decentralization which you speak of would be the holy grail of real estate. With respect to management, the situation would not change drastically from the management model which is utilized today. The only difference would be utmost transparency of decisions and costs/spending which the unit would incur, thus we believe that technically the asset would be better managed and thus potentially could have higher value.
Yes, I know my statements are generalized but I'm not here to outline 10 different examples. My issues also aren't limited to what I mentioned above. Anyone with experience in real estate can think through examples of their own and consider how decentralized ownership would work.
I can't really comment what the moderator you mentioned said since I didn't hear the session, but I wouldn't disagree that decentralized ownership is the holy grail of real estate if you can do it, but that's a big IF and I don't see it happening. Also, I wouldn't really expect him to say he doesn't think you could do it in a public forum, so his comments don't really mean much to me. If you told me that he was personally investing in your platform or tokenizing one of his assets, that would mean something.
I know this could be a never ending conversation as we obviously disagree on this, so I have no interest in a back and forth. I'm just giving my opinion, so anyone considering this should decide for themselves.