Should you Invest in Global REIT?

in #crypto6 years ago (edited)

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By https://bitcointalk.org/index.php?action=profile;u=2230830

Global REIT has its ICO right now and it will use the money raised to buy a hotel. The hotel’s income will be shared among token holders. It will then buy more real estate assets and the money from that will be shared among token holders.

Global REIT is not a decentralized tokenization of real estate investment but it is effective. Previous attempts at making decentralized tokenization of real estate investment have failed and it would be pointless to continue doing the same mistake. Global REIT is a centralized fund and the opportunity to join Global REIT’s ICO ends in a few days.

Whether to Invest

There are 200M GREM tokens and 75 million GRET tokens right now. When you make an investment in this ICO, 25% of the investment translates to GREM tokens and 75% translates to GRET tokens. This is good because the GREM tokens, which represent the money the made by the fund manager, distribute a 2% dividend which will slowly reduce to just 1.25%. That’s a horrid return on investment. To make up for this, the GRET tokens will give an 8% dividend. This means the fund aims for investors’ weighed return on investment to be 6.3125%.

The current circulating supply of this project is meaningless since more tokens will be generated each time a new asset is bought. Millions of dollars’ worth of tokens will be available for trade in the short-term and even though the fund will start giving funds on a monthly basis quite soon, this is NOT a flip.

This is a token that is entirely valued on the investment return it provides and such a token does not offer much opportunity for speculative flipping. Since the return on investment is fixed at about 6.3125% and can reliably stay at that figure because hotels tend to retain their value, Global REIT should only be considered as a long-term investment.

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