Could you give more information about your investment solutions?
Sure.
We're going to establish a real estate development company, called Acre, using a portion of the ICO funds.
A team is in the process of being put together and once confirmed will be listed on the Acre part of the rise.vision website. I'd like to bring in expertise of architects Richard and Peter Lucking (based in France and US respectively) and several well established people in the building industry. The Acre team, including myself, will complete the first projects using as much in house skills as possible (keeping costs down) and depending on success recruit more people as the company grows.
The aim is to scale up Acre like any fledgling business and into something that is self funding in it's growth and asset accumulation.
That would mean Acre building and selling properties (to increase working capital) then moving onto build to lets which in turn would fund even more build to lets....
A % of profits would be paid to anybody holding Rise and or Acre. There may be separate funding rounds to help Acre start new projects but initially all Rise holders will be entitled to Acre tokens.
Because Acre is a traditional business model returns to investors would initially get a return on a project by project basis.
Here is a brief overview of an Acre development showing the kind of profits that would be returned to investors / Rise holders. It also goes on to show the potential for growth.
Step 1: The first build.
A 9 unit apartment build in my area of France would cost approx 600,000 euros including land, materials and labour.
The sale price of each apartment would be in the region of 110,000 euros. Total sales price one million euros (approx).
400K euros taxable profits.
After tax (could be more or less depending on the type of company founded) leaves approx 300K euros net profit.
50% of those profits goes back into the Acre company treasury for expansion.
50% i.e 150K euros is shared out to all Rise / Acre holders.
Step 2: The second build/s
With 750K euros now available we can build 12 apartments.
1.32M euro sale price minus 750K costs.
Steps 3 and on... Once we are in a position to build 20 apartments they can be rented out, providing Acre a constant return of approx 12,000 euros per month.
Now Acre can be grown in a semi autonomous way in that it can and finance new builds without selling assets.
At this stage and at the end of each year 50% of after tax profits go to Acre token holders.
There could be a possibility to vote on selling assets in order to free up capital for faster growth, but between here and there... it's a long way to go!
This has been done before. Lost track of where it is currently, but last time i looked, it was still operating. Seem to remember their problem was the volatility of BTC against their asset valuations.
