Fractional Ownership

Become our partner & co-own properties around the world.

We’ve designed a comprehensive and innovative process that allows our partners to join in profitable property investments with minimal risk while maximizing returns. Below is a detailed breakdown of how it works from start to finish:

1- Identifying Profitable Properties:

  • We start by spotting investment opportunities with strong rental potential in strategic locations.

  • We evaluate properties based on rental yields, location, and long-term appreciation potential.

2- Negotiating a Lease with Option to Buy:

  • Once a property is identified, we negotiate a lease with an option to purchase.

  • This means we initially rent the property, refurbish it to improve its market value, and rent it out to tenants.

  • By generating income during the lease period, we reduce risk and get a clearer picture of the property’s return potential before committing to buy.

3- Maximizing Returns Through Property Management:

  • The property is actively managed, with returns maximized during the lease period through strategic renting.

  • We ensure the property is rented out consistently, generating revenue and increasing its overall value.

4- Listing the Property on Our Marketplace:

  • Once the property is performing well, we list it on our marketplace, making it available for fractional ownership.

  • We prepare the property for public investment by potential partners.

5- Creating a Special Purpose Vehicle (SPV):

  • To structure the investment, we establish a Special Purpose Vehicle (SPV) under our main company, located in the RAK DAO Freezone in the UAE.

  • This SPV is a distinct legal entity that owns the property and will issue tokenized shares for investment.

6- Tokenizing the Shares (Not the Property Itself):

  • Instead of tokenizing the property directly, we tokenize shares of the company (SPV) that holds the property.

  • These tokenized shares represent your ownership stake in the company, not the property, offering an additional layer of legal and financial structure.

7- Inviting Business Partners to Invest:

  • Once the property is tokenized, we invite business partners to join the investment by purchasing shares of the SPV.

8- KYC (Know Your Customer) and AML (Anti-Money Laundering):

  • KYC and AML procedures are strictly followed to ensure compliance, using Sumsub, our trusted verification partner, for thorough checks.

9- Funding Period & Refund Guarantee:

  • The funding period lasts for the duration agreed with the landlord in the lease agreement.

  • If the property is not fully funded (i.e., less than 100% of the shares are sold), all partners will be refunded in full, including any associated fees.

  • No risk is borne by the partners if the funding goal isn’t met.

10- Successful Funding & Income Distribution:

  • If 100% of the property shares are sold within the funding period, the property is fully funded, and the deal moves forward.

  • Rental income distributions begin the following month, with each partner receiving their proportional share of the rental income.

11- Active Participation & Voting Requirement:

  • All partners are required to be actively involved in decision-making.

  • Each month, there will be at least one proposal that requires a vote (e.g., operational decisions, management company selection, rent increases).

  • Partners must vote to receive rental income. If a partner does not vote, they will not receive their rent for that period.

  • This ensures transparency and makes this an active partnership, not a passive investment.

12- Payouts in USDC:

  • Rental payouts are made monthly in USDC (a stablecoin that is pegged to the value of the US Dollar).

  • Partners can easily withdraw their rent or reinvest in more shares of other properties.

  • Alternatively, they can choose to invest their returns into our utility token, $STAY, which provides further investment opportunities (more details available on the $STAY page).

13- Flexible Investment Opportunities:

  • Partners can diversify their portfolios by investing in multiple properties through fractional ownership, reducing risk and increasing potential returns.

  • They also have the ability to reinvest their earnings into additional properties or explore other opportunities within our platform.

TLDR

  • Low Risk, High Return: By starting with a lease option, we minimize risk and ensure profitable returns before full commitment.

  • Active Partnership: This is an active partnership where all members are involved in key decisions and voting, ensuring full transparency.

  • Monthly Rental Income: Partners receive monthly payouts in stable USDC, providing steady, predictable returns.

  • Full Refund if Underfunded: If not fully funded, all partners are refunded in full, risk-free.

  • Tokenized Ownership: Partners receive tokenized shares of the SPV, not the property, offering legal security and ownership benefits.

Last updated

#27: NFsTay's Oct 7 changes

Change request updated