Abstract Introduction
Last updated
Last updated
Real estate has traditionally always been one of the biggest industries in the world. Exceeding Hundreds of trillion in locked value, globally. Real estate assets have always been a great way to store and create wealth. In fact, Real estate is such an important industry that it has acted as an anchor for economies. One of the reasons for this deep trust in real estate assets and their future is due to basic human needs, housing and shelter being one of humanity's crucial needs, in the past as in the future. The trust in real estate and its necessity for our economies has been reflected in land and property prices. According to U.S. Census Bureau and the International Monetary Fund, the sales prices of new homes consistently increased in value from the 1960s to 2007, before dipping during the financial crisis. Subsequently, sales prices resumed their ascent, even surpassing pre-crisis levels.
Real estate is one of the best ways to invest and creates long-lasting wealth. With your investment capital locked in the asset provides you with yearly yield in form of rental income and/or capital gains. Whilst investing in real estate is great and can offer a stream of rental income of up to 10-15% APY. There are aspects of real estate that can offer investors even higher profitability whilst working with similar principles as a rental investment. That is the industry of real estate construction where depending on the type of constriction and location, yearly profitability can reach up to %30.
What are the difficulties that hinder retail investors from becoming a part of this profitability?
1)Lack of capital.
2) Lack of experience and industry know-how.
3)The tıme to locate a profitable investment.
For an Indıvıdual to start real estate investments, they would require tens of thousands of ın capıtal. This requirement may vary depending on the local real estate markets and can go up to hundreds of thousand. While being sufficient to enter the market you have to keep in mind that the lower your ınvestment amount, the lower your return on investment. Whilst still profitable and a great investment you will be at the bottom of the real estate profitability pyramid. When considering entering the real estate construction industry. That is a completely different league of its own. Only for the capital requirement, you would require a minimum investment of a Million +, just to get a ‘very small’ company started. Again whiles highly profitable you are positioning yourself at bottom of the profitability pyramid, simply due to lack of capital, therefore, missing out on the big deals. So as you can see there are many hurdles to overcome to be a part of the profitability of real estate.
So how to share this profitability?
The only way to change this structure is by getting the large construction companies on board. This is exactly what we have done with Intelly. With our 35 years of experience in the construction and real estate industry, and Billion worth of assets developed globally. We together with our partner have created a platform where ındıvıduals can invest as low as 50 dollars in large real estate assets and construction projects, all over the globe, ranging from residential to commercial up to infrastructure investment. We share this profitability with everyone with yearly Apy’s up to 30%.
But who would benefit from such a structure? Let us divide these into groups 4 Groups.
1)For residents of Less and Least Developed Economies.
2)For residents of Advanced Economies
3)For residents of Economies that are suffering from high rates of inflation.
4)For Construction companies that are listing Assets/Projects with Intelly
1)For residents of Less and Least Developed Economies Intelly with its low entry capital requirements and high APY offers developing nations such as India, Pakistan, brasıl, Nigeria, etc. a way to escape poverty. About two billion people have full rights to the property they live in and the land they farm, according to the director of the Lima-based Institute for Liberty and Democracy. For the 5.3 billion who do not have such rights, the implications are stark: people are unable to leverage their resources to create wealth, and their assets become “dead capital” which cannot be used to generate income or growth. As a result, the poor remain trapped by the “tragedy of the commons”, hurting individuals and broader economic development. Legally protected property rights are the key source of the developed world’s prosperity, and the lack thereof is the reason why many nations remain trapped in poverty.
2) For residents of Advanced Economie Intelly with its low entry capital requirements and high APYs and Tokenization infrastructure offers developed nations the possibility to create global and liquid real estate portfolios. Particular real estate markets and particular industries might collapse due to many reasons from mismanagement to changes in government. The best way to explain is via an example let's say you're an EU citizen with $5.000 to invest. When ınvesting with ıntelly you can invest $50 in Dubai in a hotel, $200 in a solar energy plan in Germany $150 in a tool road construction project in North America, etc., Whilst this is a great way to create a global real estate portfolio spread across nations and also Industries this also provides the benefit of having distributed risk. In a scenario like the American housing market crash in 2008, your Investment portfolio would be affected mınımaly and your other ınvestment would make up for the loss.
3) For residents of Economies that are suffering from high rates of inflation, Intelly with its low entry capital requirements and high APY's offers an escape from inflation.
What is Inflation? a sustained increase in the general level of prices for goods and services. In more lay terms, it means as time goes on and inflation goes up, your buying power becomes less and less with the same amount of money. Remember in the mid-90s when $1 million dollars seemed like you were ready to retire for life? Fast forward to 2019 and that same amount seems like it would barely suffice for a few years. Here’s an example. In 1995, what you could buy with $1,000 would now cost between $1,650 and $1,700. That’s a 65% cumulative rate of inflation over 24 years. Doesn’t sound too terrible. Let’s take a bigger item. If you were buying a house for $250,000 in 1995, in 2019 it would require $419,000 — or more. Keep in mind, this doesn’t consider any appreciation that the home has acquired. It solely takes into account the spending power and value of the dollar that has been changed due to inflation.
The question becomes, how can you fight and even profit from inflation? The answer: real estate. First, let’s evaluate how you actually lose to inflation through traditional investments. For many people, we evaluate what we will need to retire based on their current lifestyle. If we’re making $100,000 a year, we might begin investing and set up our accounts based on what we deem will be comfortable. However, if you began a retirement account in 1989 with a $100,000 salary in mind, in 2019, you would actually need $209,910 due to the cumulative inflation rate of 109% over the past 30 years. Beyond that, the fees charged to manage many retirement accounts completely eat up the funds required to keep up with the inflation rate.
4) Intelly offers big construction companies a steady stream of funding for their project and lets them focus on construction.
Sımply explained, they can launch 50 projects at once due to the cash flow offered by the Intelly platform but the main reason is that they fund and sell the asset by/to market at the same time, creating a profitable smooth process for them, Yes, they share the profitability with intelly investors but due to them being able to launch 3X more projects at the same time, therefore, realizing more net Profit. With Intelly, you can invest with other investors by creating a funding pool for the investment, therefore, leveraging your position and achieving higher APYs with the help of Intelly. Intelly archives this by fractionalizing the investment over the blockchain and tokenizing it via I-NFTs, these can then be purchased by investors on the ıntelly platform, who will be given fractional ownership of the Investment. The process is quite simple and doesn’t require costly real estate investment procedures, which makes the industry accessible to a wider range of investors.
Unlike other crypto assets, Intelly I-NFTs are not affected by crypto crashes due to them being backed up with real-world assets, Intelly’s I-NFTs are priced based on the value and profitability of the underlying real estate ınvestment. And the related tokens/smart contract provided/developed by Intelly Ltd. are all regulatory compliant and Intelly Ltd. is a visionary-industry leader company in terms of working with governments and regulators on this basis’.