Buying a House on the blockchain with SBD!!! The craziest Steem investment I've made to date is NatEstate.

in nateestate •  7 months ago


Well put down your drinks because this story should have a couple spit takes. I'm the second investor to help @picokernel buy a house. He's an 18 year old steemit employee living down in VA and he's going to buy a house. I heard about this plan on Discord's Steemspeak channel.

Here's the rough plan. @picokernel is going to crowd source some cash to buy to house. He's going to own a home where he can commute to Steemit. He'll buy some shares himself as part of the down payment, but he'll buy the tokens back over time!

He called the bank this morning and shared the call with the banker on the other end of the line. Fuckin' hilarious. Some highlights.

Bankster: So, where do you work?
@picokernel: Steemit
Bankster: Do you have a W2?
@picokernel: Not right now. I'm still in school, I have a bunch of bitcoin. Have you heard of Bitcoin?
Bankster: yes, I've heard of it... It's been on the news. Where do you go to school?
@picokernel: I'm still in high school.
Bankster- shit hits pants... Pause...
@picokernel: I'm raising the money, we'll be able to pay. Do you think we can make this work?
Bankster: pause... Yes I think so!!!

There is a full recording. I'll post the link in this post- https://drive.google.com/open?id=0B57iVnbv2heONHh3c19SSHdyQ0k

So, I like @picokernel. I wanted to be part of this. @fyrstikken beat me to being the first investor. But I'm the second. If you'd like to get in on this part of history contact @picokernel and chill out with us in Discord.

Here's @fyrstikken 's post- https://steemit.com/steemit-house/@fyrstikken/i-bought-the-first-shares-in-the-natestate-nest-the-first-house-on-the-blockchain-a-home-for-picokernel-in-va-co-owned-by-all-of

Here's Nate's explanation:

"So basically, I am buying a house with my own funds and some of these pre ico funds
and when I buy put a down payment on the house and officially own it, I will release the ICO and give everyone who already paid there tokens
so with these tokens, you own a share of the house
and when I sell the house, you will be entitled to a portion of whatever I sell it for
so if I buy the house at $175,000
I will issue 175,000 nest tokens
and if I sell the house at $180,000, I will buy back all the tokens for that new price
and also being a shareholder has perks because you can vote on certain things
like if we want to install a pool because we think that'll improve the value"

Here's a diagram that may help clarify the plan.

You can find more on that here: https://steemit.com/steemit-house/@mckenziegary/if-you-re-wondering-how-natestate-nest-may-work-here-s-how It was written by @mckenziegary.

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Congratulations Nate! it was awesome being in the discord hearing you recording the entire process it was so exciting all the way up to @frystikken purchasing the first shares!

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It's hilarious right! "I'm in high school!" Nate, 2017!

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this is amazing! love it!

This is a war story!
Crytpo vs The Banks
The battle of @picokernel
From the front lines!
Crypto for the win!!!! :)

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Yeah, if an 18 yo can pull this off then we all can!

Nice house! :D Maybe someday I'll buy a house with SBD

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Keep it up... Who knows whats out there for us...

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true that!

A look from behind the scenes. Nice!

A teenagers dream, stable and independent.

This is quite interesting and I'd consider getting in, but there are some questions.

I'm assume Nate will be paying the annual taxes on the property? How about maintenance over the years, replacing a roof let's say.

Will those costs devalue someone's coins or are they separate from them. I noticed he will crowdshare decisions on upgrades, but those are luxuries as opposed to maintenance which is necessary.

Etc. etc., inquiring minds want to know....though this stuff may be in the recording, gonna listen to it now.

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Great questions! More details to be worked out for sure.

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Cool, look forward to it. I've been investing and studying up on real estate for several years so am more than happy to pitch in on any items/questions that need to be ironed out as well.

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these were my exact first thoughts too! lol

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Not sure if it was in any of the posts but @picokernel answered those questions. He would be paying the taxes and any maintenance out of pocket.

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yeah, but that wouldn't make for a very good business model...

if I buy the house at $175,000
I will issue 175,000 nest tokens
and if I sell the house at $180,000

while he eats the $15,000+ in taxes, repairs, maintenance, closing fees, broker fees... not to say this model can't work with a bit of modification. ie. find a house with ROI potential minimum 10%+ that you can rent out, pay excess as dividends after a predesignated expense buffer is accumulated, upon sale, distribute proceeds via a buyback. Perhaps we can call this "new structure" a crypto REIT. lol

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Well yes, that is loosely what it looks like.

I'm sure there will be expansion of the idea. From what it looks like - as it sits now basically the tokens are a the equivalent to a loan that pays for the remaining balance on the home, they have no interest but can make appreciation.

Very basic. I'm sure it will be evolved if they push this project forward.

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also recently commented this on another post, but especially in the United States, here are a few other potential "issues" to be aware of...

the real key to "legality" (in the United States, at least) is to determine if ICOs pass the "Howey Test"...

The "Howey Test" is a test created by the Supreme Court for determining whether certain transactions qualify as "investment contracts." If so, then under the Securities Act of 1933 and the Securities Exchange Act of 1934, those transactions are considered securities and therefore subject to certain disclosure and registration requirements.

Link: What Is the Howey Test?

You may also find these helpful as well:
Link: Appcoin Law: ICOs the Right Way

and for a really in-depth PDF overview...
Link: A Securities Law Framework for Blockchain Tokens (27 page PDF)

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You can't do it in the US as stated, The ICO is irrelevant to what the scheme constitutes, which is a real estate invest fund.

As such real estate investment law applies and the investment scheme needs to be wrapped in a proper legal infrastructure of partnerships. Additionally it is almost guaranteed that you must supply needed disclosure documents, KYC, and a qualified investor questionnaire. You should contact a qualified attorney to determine how this structure needs to be setup, otherwise your going to have problems, and not just with the government. A US citizen can take you to court and sue you personally if you don't take the proper steps to insulate yourself in the means that the law provides. There are certain people who will sue if they know they can win a suit, they can claim you swindled them. They will show the court all the steps you should have taken and didn't. Just things to think about...

Well I'm speechless.... for about 16 different reasons.

Most jerks will claim "oh yeah, that's been done many times before"....

Really? NO IT HASN'T. :)

A first. Very creative to even think of something like this.... wow. Just so very cool... Imagine that...

haha,
@picokernel: I'm raising the money, we'll be able to pay. Do you think we can make this work?

Banksters thinks: "Bitcoin has to be safer than all those derivatives we own"

Bankster: Yes I think so!!!

Someone promoted your post. Promotions help every steemians.
Your reward is an upvote and 0.426 SBD extra promotion.
Good job, see you next time in Promoted! ;)

@aggroed
I like your post and I hope you can achieve your dreams through SBD. I hope and pray I can do the same! :)

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Thanks so much! Best of luck!

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@you're welcome and thank you, too! :)

Very cool. It looks like steemit will be helping me build my own house, but buying one is way cool too!

Wow Sounds really cool! Wish I thought of that. I need a home right now. Been on the street for a month so far. Very good idea! Love it!

ha ha, nice :-)

This is crazy but makes a lot of sense in a way... Stay awesome guys!

lovely house and location... :)

exciting!

Congratulations, i really like your conversation with bankster, it is so hilarious.

Nice house @aggroed
very good, hopefully I can also buy a home by joining steemit, thanks for sharing this post.

This just might be epic! The future is happening. #cryptorevolution

Great idea, love to see this kind of spirit in a teenager! Looking promising for the future!

LOL, we are going to raise tiny horses on it , a mini-vineyard built on it and live cam girls ! I invested ( 3rd investor next to you!) we made history!

"I'm finishing High School in 2 weeks..." was cool to hear the application with Susan on the phone. Congrad's man!!!

Very creative! :)

This is such an inspiring and awesome post! Followed.

Cheers,
@clayford08

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So glad to have you here and thanks!

Amazing idea. This might just become another way of buying a home.

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i think thats what @fyrstikken is hoping for

Very cool to see a community come together and help someone out!

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I'm stoked to be a part of this!

Beautiful house...with beautiful place ...Upvoted and followed

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Glad to have you on board! Fun right!

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Thank you...

Real cool and I am taking your idea as motivtion to start doing something similar in atlanta.

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Thats awesome. I bet you can get some help in the discord channel!

How incredible, seeing steem's real-world use increase by the day. Congratulations on the investment :)

It's not so nice to call her a bankster, listening now to the call, the thing is most people are just parrots not really understanding that they are participating in fraud.

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She's not a terrible person. She's just in a terrible profession right now.

awesome!

Who knows maybe I'll need to borrow a room one day, with that said
This is just Great, I've got to get in on this...

  • Walking over to the pre-ico line*

"I'm in Highschool" ! I'm so impressed and I am so darn old! Good for you! What a great story!

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It's hard to tell in the recording but that pause she makes when he says that's is palpable!

LOL, you need guts to tell the banker that you study in high school and want to buy house. And the only asset you have is your Bitcoins!!!

coooool

I think this is awesome. You got a good head on your shoulder and will have no problem making this work. Please keep us updated, I might be interested in investing.

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Come on in. It's makin' history. Even if the money doesn't work out perfectly you're gonna make some great contacts.

love it :)

Great idea and best of luck to you! All you need is an attorney to write it up and the title and deed. Might want to think about an AirBnB or room rent opportunity for securing a faster ROI. Cheers!

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Those are on the radar!

great...rs and upvote for u....

This is amazing, count me in!

I like you guys and I like the concept. This is a nice action and you are brave. I think the same concept and way to work can be used for other projects.

I don't get the complete picture, but none the less really cool!

Fantastic @aggroed
Stories like this make me glad to be part of the Wonderful Steemit community!

Bangsters don't know how to work outside of the bubble they live in. Very funny conversation.

hahahaha this is awesome. Can we start a prediction market on whether his mortgage underwriter will approve this? Let's just say that I'd be less than optimistic of his chances.

Maybe someday I will have my dream house. I hope so. 😂🏡🤞🏻Upvoted

Hi, I've seen some of your publications I'm going to follow, follow me and let's collaborate together =)

That is awesome. People are waiting for the future but the future is right now.

congratulation Nat. it's really an amazing venture.

Do you want to trade some shitcoins? lol

great concept.

I think is awesome, and I will be definately buying into this. Things like this keep me interested in steemit.

Congratulation !

I really hope we continue things similar to this, if we do we will see further growth for this coin as it develops into its own economy rather then speculation.

I wish had the same creativity as you to try this, this will go for any coins as it develops more and more of its own eco system you will see the value of the coin grow.

Very interesting idea! Will be interesting to see what happens as details are worked through & techniques sharpened.
Although state to state real estate laws vary, hopefully can be expanded upon.
I'd love to send out an advertising headlines "Buy Your House w/ Crypto"
Definitely, will follow.

hahahah I guess you bord already with knowledge

This absolutely made my day! Haha. But I wish you the best of luck on this unique plan!

Haha wow, this is a such a great idea.
Cangratulations Nate!!

What a great idea. You got at least my upvote and resteem!

WIll read more into this,even with a small steemit wallet, from being here just two month.

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Thanks! Consider upvoting my witness too please!

Just a awesome plan!

Nice! Please upvote resteemit comment on my post and follow me @mlmtraffic