
Blockchain technology has been making waves in many industries over the last several years and has proven that it is here to stay. One of these industries is real estate – the technology unlocked the potential to break down an otherwise expensive asset into fractional shares that are stored and shared on the blockchain securely and transparently. This concept became known as tokenization and is considered by many experts to hold the key towards the resolution of many issues stakeholders in the sector face such as high entry capital, complex legal procedures, dependance on banks for financing and even the lack of affordable housing.
Blockchain Property Gate – the revolution in real estate starts here
Blockchain Property Gate is a novel cryptocurrency project that has made its goal to solve some of the most pressing issues in real estate – the rapidly worsening situation with affordable housing and the lack of options for smaller investors.
The majority of real estate blockchain projects today are taking a similar route by utilizing tokenization. Indeed, tokenization of properties is one of the most revolutionary concepts for the sector, because it solves some of its most pressing issues in the likes of high capital requirements in real estate investing, as well as legal barriers for developers and project issuers. It also allows for a much faster, easier and transparent fundraising method, which becomes an alternative to bank loans.
However, the Blockchain Property Gate project takes it much further – the company has created the first security token that not only represents real estate assets, but is also giving access to recurring passive income, while acting as the core mechanism in the overall ecosystem development. Through cycles of reinvestments, the token allows the real estate portfolio of the project to grow exponentially over time.
How the project works
Blockchain Property Gate adopts a seemingly simple methodology that hides a considerable amount of expertise in every step of the process. It all starts with the selection of properties according to a methodology developed over the last 20 years that consists of multiple criteria with specific interconnective macro and micro factors. The goal is to find real estate that is undervalued – some markets like in Germany, for example, are saturated with such assets, which have a considerable potential that is not being unlocked. Many of these properties were built in the 80s and are of the utmost construction quality, offering high degree of resilience of the inner and outer walls, making them perfect candidates for renovation that can increase their market value. The selection methodology ultimately allows Blockchain Property Gate to build a portfolio of properties at costs lower than the market average.
After the real estate projects have been selected, they are acquired with the funds raised via the BPGT token. A percentage of these properties is immediately rented out, which secures the short-term cash flow of the company and the investor payouts. The assets appreciate in value in the meantime, providing a solid degree of price stability of the token.
The remaining properties that are not rented out are at the core of the Blockchain Property Gate business model and the root providing the growth of the ecosystem. These are renovated according to a cost-efficient and highly sustainable methodology that focuses on redevelopment and renovation from the inside out rather than the traditional approach of starting with the outside walls, which is much more costly and legally complex and thus – expensive. This allows Blockchain Property Gate to unlock a higher net profit and better rewards for BPGT token holders through its operational model.
Because real estate assets are highly appreciating over time, this increases the underlying value of the total assets behind the token. At the same time, Blockchain Property Gate is generating profit through rentals and the resale of the renovated properties, which are the two main sources of income. This allows the company to continuously repeat the process by reinvesting the profit in more properties, which essentially results in an ever growing ecosystem supporting the BPGT token.
A clear direction
Blockchain Property Gate consists of a team of highly experienced bankers and real estate experts who have been active on the market for more than two decades. Beyond the operational model, the company believes that its efforts and long-term vision of affordable housing and accessible investments can be only achieved through the acquisition of real estate companies that can support the ambitious efforts of the ecosystem.
The company has a well-thought out execution plan for the next 8-10 years that consists of 5 distinctive development phases, each building upon the success of the previous one.
Blockchain Property Gate will hold a security token offering, which started in January this year. The list is capped and is nearly full, but you can still reserve your spot and get access to their exclusive investor dashboard here: https://blockchain-property-gate.com/
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