Property Coin [PCX] Research and Discussion

perig (25)in #pcx • 6 years ago

Hi all,

I've been interested in investing in real estate and its related markets as well as crypto so when I read about a coin that bridges both, that interests me! I am especially interested in crowdfunded investments related to RE that allow more people to access RE investments without having to bring in a lot of cash in only one or very few investments. Instead it allows to have more diversification trough multiples shared loans. I'm not as interested in the "flip" market but this is still interesting as long as the investments are backed by the real asset.

The coin I am referring to is "Propery Coin" [PCX]. I did some research around and could not really find any collection of information about the company or the coin with comments and discussion so I figure I would post what I found out on my side with some of my comments and maybe we can continue the discussion on this thread as the coin continues to grow.

Aperture

The company behind the Property Coin is Aperture, a California-based real estate technology and investment company.

https://aperture.re/

It is still a pretty young company (2016) but the management team there seem to have a good experience in banking, investment and RE. Here is an interview with the founder Andrew Jewett from February 2018.

PCX ICO Information

Information: https://icobench.com/ico/property-coin
One-Pager: https://propertycoin.re/media/Property_Coin_Update.pdf

Home page

https://propertycoin.re

White Paper

https://propertycoin.re/en/whitepaper/

The white paper is good with a lot of detailed information about the company and the coin. Below are some of my comment on the information in the white paper.

Natural Price Appreciation (page 13):

Expectation of 25% to 40% net profit compounded over 20 years seems quite optimistic to me. I know RE has potential for big returns but based on my experience (agreed, not extensive), these numbers seem high and if I am to invest I would probably use numbers closer to 10%.

How does it work Step 5 (page 14):

It says: 100% of the profits from fix and flip investments and loans will be reinvested into more properties and loans and the cycle continues.

Should not that be up to the investors if they want to reinvest, take distributions or cash-out? I may not be reading this properly but the company can't assume that investors will want to reinvest all of their profits? Maybe I would prefer getting a constant cash-flow, meaning that I will leave my principal and reinvest that but I will take my profit out as a distribution. This is a bit unclear to me what is meant and/or if the withdrawals would be limited for some amount of time (i.e. 3 years, 5 years. etc.). Step 6 says we can sell the tokens so it contradicts a bet step 5 wording.

The Road Ahead (page 31)

Q4 2018 AND BEYOND - GROWTH AND REINVESTMENT. Initial investments liquidate; reinvest of proceeds and profits into new properties and loans to grow the PCX community.

Investment Guide

https://propertycoin.re/static/files/How_to_invest_in_PCXs_using_a_MEW_wallet.pdf

I'd be very interested if anyone who already invested in this would chime in and post their experience. The best way I have found to learn is to dive in and invest some play money. So I started to register and unfortunately I only now realize that even though the ICO is done, only accredited investors can register and invest at this time. Too bad because I don't see why it is limited to accredited investors as other companies are able to accept everybody.

Reporting

https://propertycoin.re/en/investor-reporting/

The reporting page is pretty sad. There are a few items there but nothing recent (last was may for a flyer) and I can't change the date to see other past items. The date drop down does not has any effect. I'd like to see all the properties currently under contract with updates, numbers, projections, etc. as you can expect to find on other crowdfunded RE investments and loans websites (i.e. Groundfloor).

I can see one investment report sheet from March (here) but I wonder if that is the only investment so far? I see at least 3 to 6 different photos in the white paper for possibly more than three different properties. Report should be available for these. I feel like the company should have acquired more than a few properties at this point to prove that the business model, underwriting and processes are working as expected.

Conclusion

Looks good overall and it will be interesting to see the track record as they continue to grow. And I hope they figure out how to open it up to everybody and not only accredited investors because I'd be very interested in testing it...