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The token's return has three components:
- Monthly income generated by the tenants paying rent
- Underlying properties value increase
- Periodic sale of property shares to the tenants
These components individual returns and weight differ for each portfolio. We publish the expected value of the total return, as well as for each of these components in the real estate analysis for each portfolio, available on our website.
ReTok's tokens are Security Tokens, which is a different breed of tokens. Our tokens are backed by real estate. Their value is expected to follow the performance of the portfolio of properties that the tokens represent. Ultimately, their long term value is dependent on the performance of the real estate market, as well as the skills of the team managing the portfolio.
Yes, there is one different token per portfolio.
Eventually token holders will be able to select their preferred currency for income distribution. At the beginning, all rents from tenants will be converted to EEUR, e-money stable coin, before distribution.
The list of countries under sanctions according to the Swiss State Secretariat for Economic Affairs is available here: https://retok.gitbook.io/blacklist/. As ReTok Partners Gmbh is a Swiss company, residents from these countries are not eligible to the sale of our tokens.
Our founding team members live in these place. They know the real estate market well and can supervise the operations closely. These three markets are also fairly different in term of risk and return. Starting with this three regions allows us to offer a good diversity of products from the beginning.
At first, the tenant will pay the rent in fiat. Allowing them to pay in crypto would incur too much legal issues for a moderate benefit to our token holders. This is something that we'll definitely explore in the future.
While only portfolios of multiple properties are tokenized, we offer to tenant the possibility to purchase shares in their home. These shares are only tradable between the tenant and ReTok. The registry of these shares are kept on the blockchain for transparency. Given the absence of a market for these share tokenizing them isn't necessary.
Our portfolios are made of 100% residential properties. We may create portfolios for other type of properties in the future.
We're working with different potential partners offering this service. Ideally we want to offer our token holders several market places to increase liquidity.
The regulations affecting tokens in Switzerland is already pretty clear. We're working with our partner, the id est avocats law firm to make sure we're compliant. We expect to take part of future discussions on the regulation of Security Token in Switzerland.
The private sale is happening in an ad-hoc manner, through direct contacts from interested investors to our sales department. The public sale will be open to everyone having passed KYC/AML and will happen as an online, time limited sale, with a minimum of EUR 100 investment.
As there is a hard-cap to the global private + public sale, participants in the private sale are guaranteed to have access to a large number of tokens. The token price stays the same. There are no monetary benefits to participating in the private sale. Its goal is to seed the portfolios before the public sale.
The private sale is mostly reserved to the existing network of the founders. It's meant for experienced investors who can do due diligence. Interested parties will be vetted through the process to make sure they match these criteria. The minimum amount to invest is approximately EUR 100'000. You can reach out to our sales department at [email protected].
During the period between the initial sale and the release of the secondary market, token holders will benefit from monthly income distributions. Also, once the secondary market is operational, there might be more demand for the tokens than there is offer, which could push the price up.
This is a classic problem of property management. We use the traditional solution of contracting insurance covering rent delinquency so that the monthly rent income stays stable.
If the tenant reaches 100% ownership of his house shares, they can ask for the title of the property to be transferred to them. The property is then out of the portfolio and the cash resulting from the sale of the shares is reinvested in another property or distributed to token holders.
Part of the gross rent income is used to build a reserve to pay for building maintenance and other ownership related liability. 5% is traditional in property management. This reserve is still part of the portfolio and is not an operating income for ReTok. If the reserve ever exceeds the value of expected future expenses, the excess will be redistributed to token holders.