Real estate is one of the most sought after assets from both an individual’s perspective and the companies alike. It is mostly seen as a venture for the wealthy since it required a substantial amount of capital to obtain. From an investment point of view, real estate is the best way to safeguard your money as stocks and bonds may fall, but people need a place to live. Judging from the past, real estate has lingered behind in embracing innovation in comparison to other industries. Notwithstanding, from the year 2010 to 2017, a transformation has happened with investment in the real estate sector rising from $33 Million in 2010 to over $5 billion in 2017. Technologies such as robotics, AI, big data, 5G and blockchain will convincingly unfasten the value along with every step and provides tremendous possibilities for property owners, investors, and developers and Instant Assets Tokens (IAT) is molding the future of the real estate industry using the blockchain technology.
One thing that can happen to any business is to experience disruption from the newest technology. Instant Assets Tokens is removing the burden of middlemen in real estate transactions between the buyers, sellers and renters using the most secure, immutable, decentralized and transparency technology called the blockchain. In traditional dealing in the real estate sector, there is always a lawyer, agents, banks, notaries, trusts, and mix of others involved as intermediaries.
Some of the setbacks to the traditional real estate industry
There are a lot of limitations that buyers face despite the potential profits in the real estate sector. Real estate remains the largest asset class in the world and Instant Assets Tokens is here to eliminate the frustration buyers face by maximizing benefits and minimize losses by solving the following through the adoption of the blockchain technology
- Non-availability to everybody: From ages, real estate has been a choice for the wealthiest only, only a few manage to get passive income and capital appreciation from the sector due to the difficulty in entering the real estate such can be financing, accreditation, right sponsor, credit scores, international bank accounts, citizenship just to name a few. Besides, you have to make a physical appearance abroad to invest in another country and pass-through many middlemen to invest in the property of your choice.
- Absent of liquidity: By this, I mean how quickly a real asset investment can be converted to fiat. The numbers of buyers in cryptocurrency are far above that of real estate and this can get listed in exchanges and sold out very fast. The entry barrier for real estate is very high, except international real estate, nobody wants to acquire property from a far distance and transaction dealings have a load of third parties.
- Up-front Commitments: In real estate investment it often requires a lot of capital upfront and in the case of international real estate, a credit score in once country cannot be extended to another country where the choice of property is situated.
- Lack of transparency in dealings: Corruption can be combated by a high degree of transparency transaction dealings. Most of the money laundering and tax evasion has been linked to real estate dealings. The UN Office on Drugs and Crime estimated this figure to be in the region of $1.6 trillion in a single year.
- Higher fees: There are some fees that you must pay in order to transact successfully in the real estate sector such as transfer fees, broker fees, taxes, investment fees, exchange fees and so on. With all these put together, investing in a foreign real estate can be a costly process. There is a lot of consultation to be performed to ascertain that due process is followed and your return is in order.
- Processing Speed: Due to a lot of barriers highlighted above, the process involved in real estate transactions is extremely slow. For example, it can take a whole six months to get a property of your choice and another six months to fulfills all the formality needed to acquire it.
With all these setbacks, it is no gainsaying that the real estate industry is prime for disruption. This is where the blockchain comes in.
IAT approaches to solve problems with traditional real estate ownership
The Instant Assets Tokens is a form of tokenization that is built on Ethereum Network and will be issued through the process of ICO and IEO. Funds raised during this period will be used solely to design an easy to use IAT blockchain platform and the remaining will be used o purchased assets that will form the first bulk of property investment in the IAT ecosystem. Currently, IAT has an asset management company that is already operational and profitable; as such, the properties acquired will be entrusted to the management company and discounts will be given to prospective buyers and tenants if IA tokens are being used in the transactions via the platform. Realty Beacon Philippines Inc. (RBPI) is a property management company registered in the Philippines. The management of assets will be undertaken by this existing asset management company that is currently operational.
Native Instant Assets Tokens (NIAT): This will be the native token of the IAT ecosystem, it will reside within each real estate market and is pegged against the country’s native currency. This means that each country will have its own NIAT. This native token will not be minted on its own but can only be purchased using the IA Tokens this is to mitigate against the volatility of the cryptocurrency markets with a primary focus of protecting the end-users.
Utilities & Benefits
The IAT ecosystem encourages the use of NIAT for these benefits.
Tackling the high cost: The most difficult challenge that property owners are facing in the Philippines is the extremely high cost of transactions from buying of property to the sale which presents differents sets of charges. This cost between 17% to 24% in the Philippines which is extremely high. What is there if a system is in place that can reduce these fees drastically by 70% to 90%, this is where IAT ecosystem comes in and the booming real estate market of the Philippines presents huge potential growth and profitability in the coming years
Eliminating the traditional barriers: With the adoption of blockchain technology, IAT aims to provide solutions to the problem that has been long-standing which makes real estate available to the wealthiest. With NAIT, the interested individual can have a share in the properties acquired by IAT beyond the border of the Philippines without the need for unnecessary documents and everything is transparent on the public ledger.
High Liquidity: Portion of the fund raised will be reserved to form a liquidity pool for the purchase of NIAT using the IA Tokens. Different channels will be created for the token utility with the aim in reducing the supply of the tokens and acquiring quality properties to be digitized into the ecosystem of IAT
Integrity and Security: One of the main advantages of a decentralized economy is that any record store cannot be tampered or regulated from a singular source thus providing security against malicious attacks such as hacking.
Transparency of Transfer: Information on the blockchain is accessible to any interested party publicly which makes the data and transactions transparent and immutable. Chances of fraud-related matter and ownership disputes will be almost eliminated with a high degree of transparency.
Processing speed and Costs Savings: IAT ecosystem will eliminate the barrier of timing and speed. Traditionally, it might take several months to get a desirable property and fulfilled all the formality needed to make the payment due to the various parties involved and the need to verify the documentation during various stages. With blockchain, all transactions are almost instant and there is absent of any middlemen which will save cost and increase the time of getting the desirable property. Also, emerging platforms focusing on other functions such as payments can be integrated in the future. The project will also be providing a platform for listings.
The team behind the revolution of the real estate sector in the Philippines and beyond
Raymond Lim – (CEO): He is a business coach with more than 20 years of experience in business consulting, sales and marketing. He has trained entrepreneurs, salespeople, professionals, CEOs and business owners from US, Indonesia, Malaysia, Singapore, Taiwan and in the Philippines. He offers expert knowledge & guidance to companies to create effective business models that work successful marketing strategies. Founder of RBG Philippines Inc., Realty Beacon Philippines Inc. and Realty Beacon Pte Ltd, property investment companies making waves in the Philippines and Singapore. Venturing into the digital age, Lim Kim Hwee founded and created the Digitokens Inc. a cryptocurrency company that offers digital assets to the global investors.
Bryan Chiew – Director: He is an entrepreneur with 10 years of experience in the real estate industry and has invested in properties in Singapore, Australia, United Kingdom, Malaysia, and the Philippines. A former corporate banker with Standard Chartered Bank, he found his passion for real estate during his time in the bank and bought his first investment property at the age of 26. He was actively providing portfolio advisory and has been focused on the Philippines real estate market for the last 5 years and is looking to revolutionize the market with his new-found passion in Cryptocurrency and the Blockchain technology. He is the Co-Founder of RBG Philippines Inc., Realty Beacon Philippines Inc., Realty Beacon (Inc.) Pte Ltd (Singapore), Digitokens Inc. and Ethereum Philippines.
Malcolm Tan – Legal Advisor: CEO of Gravitas Holdings, Malcolm Tan, is an established Singaporean lawyer-entrepreneur with extensive experience in the construction, telecommunications, engineering, retail, IT and financial industries. Trained as a lawyer, Malcolm is also skilled in litigation, corporate law, and mergers and acquisitions. He previously held legal counsel positions in both global and regional capacities across the Asia-Pacific region, MENA, and North America. In addition to owning and running a diverse suite of companies, including the BlueSky Group which owns back-office solution provider ActivBM, Malcolm’s keen interest in investment opportunities sees him play an active role in crowdfunding projects through his online platform FundedByMe.com.
Emerson Santos – Financial Advisor: Graduated with a double bachelor degree in banking finance and economics in 1989. Pursued MBA in corporate finance and graduated in 1995 from University of Hull, UK. Worked with Citibank NYC as assistant to VP of loan department from 1989 – 1993 and started a career in Singapore with an MNC group based from the US as director of their floor covering division. Formulating strategies on how to expand their operation in U.S. and Europe. The whole portfolio is more than $35 million. He set up his own company in 2003 selling floor covering to both US and Europe. In a span of 12 years, he is now handling a portfolio worth over $15 million. He is still the CEO of this company up to present.
Alexandre Guerreau – Legal Advisor: Alexandre is a corporate lawyer and advises clients on a wide range of cross-border corporate and M & A transactions as well as on group restructuring and financing operations in the ASEAN region. Alexandre provides legal guidance to our client for their cross-border investment programs. His work involves structuring cross-border transactions that involve multinational assets and advising on transactions with a focus on the technology sector. Alexandre was called to the French bar in 2015. He graduated from Cardiff University with a master in business Law and from Nantes University with a Master in corporate and tax law.
Kelly Ma – Business Development: A success driven and dynamic individual with a demonstrated history of working in the financial services industry. A crypto enthusiast and ardent supporter. Current focus includes fintech, block chain and ICO/STO space. Excels in building strong, trusting relationships. Works with international corporate clients across different industries, from early stage startups to big organizations, for effective business development, sales and marketing strategy, fundraising solutions. Gravitas International is a full service, end-to-end service provider with advisory, corporate structuring, legal, white paper and tokenomics, marketing and PR, smart contract, dapp and token launcher building capabilities, and can also assist with post ICO activities such as exchange listings, token offering underwriting and business development. Kelly graduated from Curtin University Australia with a Bachelor of Commerce (B.Com).
Alan Yeap – IT Advisor: Alan Yeap is a serial entrepreneur and IT advisor. He is a mobile app pioneer and has developed of various append trained developers since 2012. Over 2013, he has created more than 1,000 apps and featured in tech in Asia and trained over 1,000 students in Singapore and Malaysia in 2014. He is a founder of Viroboss22.com, a company specialized in social app development. In 2019, Viroboss22 integrated blockchain and Bitcoin in the crypto. Alan Yeap is the CTO of Gravitas International.
Eugene Lu – Marketing Advisor: Eugene is the CMO of Gravitas International, a Global Blockchain Advisory and the Executive Director of Global Web Traffic service Nicheonlinetraffic.com. An Ex banker from Citibank and Standard Chartered, Eugene is also a Serial Entrepreneur with years of experience in Growth Hacking and Online Marketing. Familiar with Global brands, he used to run an Advertising Agency which dealt with various Global MNCs like Changi Airport Singapore, Triumph International, ECCO shoes etc.