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