As an owner of real estate, what are the key benefits of using this platform ?
Currently, the owners must sell the entire real estate to raise cash. ReitCircles enables the owners to sell partial stakes into their equity to a global market. Global markets can provide better prices at higher liquidity. Owners won’t lose control over their property while retaining the option to repurchase it.
Can you give an example of when an owner would use this platform? Then I could understand it better ?
Suppose a couple with kids moved into a new big house and face unplanned expenses. They have equity in the home but cannot tap into it for cash without refinancing it at a higher loan. If they are out of a job, then refinancing is no longer an option. Personal loans can carry a high interest rate, and the principal must be returned in a specific timeframe. If they host their house on ReitCircles, they can raise capital by selling a small stake into their equity. After that, if their financial situation improves, they can buy back the equity on the platform.
How does partial ownership work? Who retains the residential rights?
The owner who is selling equity or raising funds owns the residential rights.
Does the owner retain the right to sell the property on another platform after selling a stake in his equity in this platform ?
No. As long as another partial owner of the equity exists on this platform, it can only be traded at ReitCircles. If the owner has chosen the buyback option, that option must be exercised to first end partial ownerships on the platform.
For the owner, is there any upper limit till which he can sell his house equity?
Yes. The owner can sell up to a maximum of 75% of his unencumbered equity.
Does the owner have a buyback option for his property?
Yes. The owner has a buyback option provided he chooses a fixed period for this buyback at an agreed-upon appreciation rate.
How does the ReitCircles platform ensure the security of the capital transacted?
All users undergo the KYC/AML process before transacting on the platform. An escrow account that is created in the transaction ensures liquidity to follow through contractual obligations. Additionally, insurance coverage can be purchased on the platform as well.
