Blockchain Property Gate lowers barriers to real estate investing with tokens

0:01I'm ashon Addison from the cryptocoin show and today on blockchain interviews with have Bogden and George from blockchain property gate gentlemen welcome to the show and thank you for taking the time thank you hi thank you I'm excited to dive into real estate in the blockchain uh it's a huge industry that is ripe for Innovation and I see it moving into web 3 I feel like the ETF

0:24introduction and more mainstream adoption of blockchain is bringing the world one step closer for real world asset tokenization and real estate in web 3 so I'm excited to dive into what you and your team have built I would love to start off from the top on just a high level on what exactly is blockchain property gate and what is the mission of the platform and then we can dive into

0:45all the details thank you for helping us Aston uh to first get an idea of what we do and what our mission is it's worth going a bit more in depth of the current state of the real estate sector and its fundamental problems it's no secret that real estate has been the best performing investment for the last 140 years however few people are actually aware of

1:14how the rising prices in the sector are also creating problems on their own the first of these issues is housing affordability while it is considered a basic human right by the World Health Organization the average index measured by comparing the housing costs the disposable income is getting worse in simple terms less and less people are able to put aside enough money to get

1:39their own home and even pay rent so this leads us to the question of banks everyone knows that it's barely doable to buy your home without a loan while the historically low interest rates over the last years have provided an easy way for most people we already saw how agile the banking system was in 2007 additionally these interest rates have started to increase lately which

2:08might lead to the collapse of the whole system if the banking system is too leveraged people will get their rates indexed and will have to pay more and more another issue we're talking about caused by the rising prices is the fact that investments in real estate are getting more and more inaccessible the capital requirements have at this point are just so high that only a handful of

2:33people can afford to directly buy a house or an apartment as an investment additionally there are legal hurdles and other things to consider which makes it even harder and these issues were the motivation for us to come up with a blockchain property gate project our ultimate mission is to reduce the average prices of real estate of up to 30% and thus help in resolving the

3:01problem with housing affordability we believe this is possible via several means first by leveraging our extensive experience in both the selection of undervalued properties and their cost effective and efficient renovation the second aspect is the advantage offered by blockchain technology in terms of creating a single investment vehicle like the BPG token

3:29that provides both access to recuring income amounting with 30% of our net profit as well as an easy entry to the real estate sector for everyone without the capital requirements or legal hurdles you can co-own a real estate project with other token holders easily at a little risk very interesting um and and you're right the requirements for investing by

3:57yourself now are just getting a little crazy um I feel like blockchain is a great solution for lowering those barriers to entry and um can you explain a little bit more on exactly who uh blockchain property is targeted towards is it just anyone that wants to invest uh yeah sure Ashton um the blockchain property gate is mean for every investor who wants to get into

4:23real estate no matter how big or small we don't have any entry barriers like Capital requirements and we do not differentiate when it comes to the payouts of the rewards mhm okay that's good and as I mentioned the the barriers if you want to buy a house in some places you need to have a million dollars um or take a huge morgage from the bank uh how exactly are you lowering those barriers

4:51to entry and the financial level to be able to start investing in real estate well uh you know under normal circumstances if you want to invest in real estate you can either buy the property on your own participate in a read uh these are real estate investment trusts and both of these options have certain Capital requirements especially the first one reads are a good

5:19alternative if you don't have Capital but the transparency can sometimes be questionable whereas with blockchain you get a lot higher degree of it m with the BPG token that costs about € everyone can basically acquire an asset that indirectly represents a stake in the properties acquired by us and yields them passive rewards in the process and when you integrate the

5:48blockchain into real estate there's many different ways that it's possible to integrate the technology can you speak exactly on exactly how these two are colliding uh with the platform sure um the blockchain technology allows us to create an investment vehicle that is superior to all previously available Financial instrument the bptt token can both represents as an asset indirectly

6:14as well as a give passive rewards and everyone can trace the transaction on the Chain meaning that the atmost degree of transparency is ensured okay great and I know that real estate projects are always multi multi-year projects huge Investments which take a lot of time as well and I know that your team has laid out multiple phases for the development uh I

6:40understand at the beginning you need to raise capital and purchase some real estate can you talk about the first phase and exactly what needs to be done to build that Foundation of course it's uh from the total funding amount that we aim to raise during the initial crowdfunding rounds we are planning on dedicating around 65% toet to the purchase of properties and cover our operational

7:06costs we will acquire buildings which are already in a habitable state so that they can be rented out immediately this will secure the initial cash flow of the company and will lay out of the foundations for our next Target in this phase we are also planning on acquiring a real estate management company with existing knowhow staff and operational structures

7:30the company should operate at least 500 to 600 housing units at the time of the acquisition we will then restructure and adapt the company to our needs and save time and costs compared to buildings to build a new real estate company which is related to high costs and long time frames we already have the needed knowledge experience and human resource

7:56capacities to manage it we will also acquire an additional house management company which will be responsible for the maintenance of the housing units and any administrative tasks together both companies will be essential for the management of our operational activities that's nice to purchase habitable places to you know get that incoming cash flow right away as opposed

8:24to just breaking ground uh which can take years to get it to the state that it can be rented in so that's nice to know and maybe you can lay out a little bit more on the the other phases and sort of the holistic road map on what's the next phase after phase one and so on yeah sure uh we have five key phases for the next 10 years in phase two our first goal is to focus on acquiring

8:52approximately 10,000 rental apartments in a total in apartment blocks with at least 10 units who we also so primarily focused buildings that are in a habitable State as these will support the business model better in the early stages from the moment of purchase blockchain property gate will start generating rental income allowing us to quickly generate cash flow for further

9:14operational activities as well as to faciliate the div the dividend payouts for the investors no later than 3 years after the conclusion of the sve the value app appreciation of the asset will further strengthen the financial balance of the company over time this phase should be completed by the end of the year three and also envisions the acquisition of the further

9:39additional buildings selected through our methodology we will also acquire a real estate development company which will faciliate the labor renovation and reselling of the acquired housing units phase two is where we envision blockchain property gate to start expanding exponentially B based on the returns of the reinvestment of the profit made through the operational

10:05activities in phase three we planned on extending the scope of phase two by fundraising for the acquisition renovating and renting out or selling 30,000 apartments in total within the first 4 to 6 years the total expected value of the asset based on the current market price will be valued around 5.5 billion Euro during this phase we will start the renovation process based on our unique

10:34methodology between 20 and 30% of the buildings acquired will be renovated within a fixed time frame and sold further percentage of the buildings acquired will be renovated and rented out in phase four we will focus on the acquisition of further additional real estate companies and merges with the exciting legal entities of the blockchain property game

11:00the goal is to acquire companies that have a considerable number of properties in their portfolio there that the establishment will be situated in the DH area with Switzerland being one of the main target due of favor favorable tax conditions we will continue to acquire more properties and expand our operational activities while paying out dividends to our

11:25investors this is where we also start scaling the business model internationally allowing blockchain property gate to tap into Global real estate market and pursue our main mission and goal in Phase five we envision to reach one of our major end goals of acquiring a total of 100,000 housing units we will aim to achieve a total market capitalization of 18.3 billion Euro

11:53through the operational activities and additional founding routs until the end of the 10th year after the launch of the blockchain property gate project mhm wow it's uh it's a lot of capital but uh uh personally I'm not a real estate investor though I've dabbled in the blockchain side of it because the barriers to entry are lower um but it is a huge project that that sounds like I'm

12:20looking forward to seeing how it develops out with your team and earlier in the discussion you also mentioned about the blockchain property gate token and how the crypto works in the platform as well could you explain a little bit more on on how it's used and how it drives value within the ecosystem yes of course the BPG is an ethereum based security token on the ERC

12:461400 standard the token gives its holders access to profit sharing rights of 30% of our net profit and is indirectly backed by real estate assets you because we use the majority of funds collected through its sale to the acquisition of tangable properties in the future developments we are planning on implementing the token as a payment method for properties and

13:12rent within our planned real estate EOS system additionally we are planning that BPG token holders will have exclusive access to our development projects in the future allowing them to get priority to the properties for sale or for rent as well as to get a variable discount on these as long as they remain in possession of their tokens throughout the transaction

13:39period okay good to know thank you for that and on those properties that you're purchasing in in the different phases is there a certain methodology that you use to utilize which property you select and you know what are the characteristics that the project is looking for MH well you see the ultimate goal is to acquire the buildings with the utmost potential when it comes to fulfilling

14:05our mission for affordable housing and reaching the highest possible Financial growth of the blockchain property gate project and consecutively maximize the dividend payout for our investors in the long term based on the distinguishable periods of the life cycle of the property we have derived a total of 50 different criteria that are analyzed together in order to assess the

14:31sustainability of the chosen properties we are selecting real estate projects based on a complex set of variables consisting of both macro and micro environment factors micro factors include the conditions that the geographic positioning is offering we will prioritize regions with a high sustainable economic strength low unemployment good work and training

15:00opportunities micro factors include the location of the property and the infrastructural accessibility furthermore we take into account the sustainability aspect that consists of social ecological and economic factors including various criteria such as health compatibility Comfort safety well-being use of friendliness and many others we are combining the social and cultural

15:29aspects into one cohesive category that will will refer to as a sociocultural dimension here is a short description of the three pillars and what they Encompass we have the social cultural Dimension which means the social or sociocultural Dimension is primarily concerned with the social effects of the property on the people who use it directly the ecological Dimension means

16:00the dimension refers among other things to the question of whether and to what extent resources are conserved harmful environmental emissions are reduced or aspects such as biodiversity are taken into account factors such as the origin of building materials are also taken into account here the economic Dimension means the economic dimension of the chosen real estate investment in the

16:29narrow sense compromises the costs and returns likely to be generated over the entire life cycle ultimately the choice of the properties that are selected resides strictly within the framework of the three Central Dimensions the macro and the micro environmental factors and finds the best middle ground between them great and what kind of Partnerships

16:55to traditional markets who are huge players is the blockchain property gate planning on making to help grow the platform okay we have established connections to multiple real estate companies both management and construction and professionals from the industry already we are already in negotiations for the acquisition and restructuring of several companies which

17:20will provide the necessary backbone for the blockchain property C project great and can you also give more information on the renovation process and and how that's going to develop as the phases grow of course yes uh thanks to our long-standing experience on the real estate market we have developed a renovation process that ensures High degree of cost efficiency allowing us to

17:49improve our cost structure and thus lower the market price for the buyers and renters while maximizing our margin this essentially lead to a higher net profit and better rewards for BPG token holders normally Redevelopment and renovation usually starts from the outside worlds which means long permitting processes the properties we are targeting have been constructed with

18:16thick walls and can be renovated from the inside out due to the resilient structure this greatly reduces our development and legal costs shortens the project completion time frames and allows us to maximize our revenues in a timely manner a unique feature will be the flexible modular approach and the property renovation procedure we will renovate the buildings with acquire in

18:42such a way that the internal worlds could be changed allowing the roomes to be quickly and easily adjusted based on the specific preferences of the buyers and the tenants the added level of flexibility allows us to quickly adjust the property so that it can be resold or rented out in shorter time frames improving our turn error furthermore the properties will be

19:07renovated in line with the utmost degree of environmental efficiency in terms of the materials used as well as the Energy Efficiency coefficient future legislation in Germany will put more weight and importance on these factors moreover the rising Energy prices encourage an increasing incentive to pursue energy decentralization and Independence of

19:35separate housing complexes with the introduction of new Concepts such as micr grids and the advancements in Renewable Energy Technologies we are planning on positioning our real estate project as a staple in the industry when it comes to Achy great well I'm looking forward to seeing those pH develop and all this work come to fruition and gentlemen

20:03where is the best place for people to follow along with the updates and learn more about blockchain property gate so um they can check our website where you will find our white paper our one pager or social media channels on on blockchain minus property minus gate.com sounds great and I can leave those links in the show notes below as well for the viewers to make it easy uh

20:27to find I thank you so much both of you for the your information on real estate blockchain the Innovations of merging them together all the best with blockchain property gate moving forward and let's definitely follow up in the near future thank you thank you for your time