Fractional Ownership
Become our partner & co-own properties around the world.
Comprehensive Process for Partner Investments
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:
Identifying Profitable Properties:
We start by identifying investment opportunities with strong rental potential in strategic locations.
Properties are evaluated based on rental yields, location, and long-term appreciation potential.
Negotiating a Lease with Option to Buy:
Once a property is identified, we negotiate a lease with an option to purchase.
This approach allows us to initially rent the property, refurbish it to improve market value, and rent it out to tenants.
By generating income during the lease period, we reduce risk and gain a clearer picture of the property’s return potential before committing to buy.
Maximizing Returns Through Property Management:
The property is actively managed to maximize returns during the lease period through strategic renting.
Consistent rental activity generates revenue and increases the property’s overall value.
Listing the Property on Our Marketplace:
Once the property is performing well, it is listed on our marketplace, making it available for fractional ownership.
We prepare the property for public investment by potential partners.
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 ICC Free Zone in the UAE.
This SPV is a distinct legal entity that owns the property and will issue tokenized shares for investment.
Tokenizing the Shares (Not the Property Itself):
Instead of tokenizing the property directly, we tokenize shares of the SPV that holds the property.
These tokenized shares represent your ownership stake in the company, offering an additional layer of legal and financial structure.
Inviting Business Partners to Invest:
Once the property is tokenized, we invite business partners to join the investment by purchasing shares of the SPV.
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.
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.
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.
Active Participation & Voting Requirement:
All partners are required to be actively involved in decision-making.
Each month, there will be at least one proposal requiring 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.
Rental Payout Options with Treasury Integration:
Rental payouts are made monthly in USDC (a stablecoin pegged to the US Dollar).
Partners have flexible options for managing their rental income:
Claim in USDC: Withdraw the full rental income in stablecoins for personal use or reinvestment in other properties.
Claim in STAY: Convert rental income to NFsTay’s utility token to support the ecosystem and gain additional benefits.
Claim 50% USDC / 50% STAY: Split the payout to include both stability and additional liquidity provision for the pool.
Reinvestment in Liquidity Pool: Partners can reinvest their rental income into the liquidity pool, earning attractive APRs paid in STAY tokens. This is an optional feature of NFsTay’s decentralized finance (DeFi) ecosystem. Risks inherent to DeFi, such as impermanent loss, will be transparently disclosed.
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, the Treasury, or liquidity pools, exploring various opportunities within the NFsTay ecosystem.
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.
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