Real Estate investment for the People
Who doesn’t dream of owning a piece of real estate in prime locations in a major city around the Globe?
This dream is mainly reserved for people with enough financial resources to purchase a real estate asset with their own funds, and many people are excluded from pursuing this dream due to lack of funds.
The Versac Brick Squad is a collection of DAO’s investing in real estate assets jointly managing the assets in a platform structure provided by TuruGlobal and with that making Real Estate investment accessible for the people.
Every real estate asset managed has its own DAO and ownership in this DAO is represented by the Brick NFT’s held for that particular real estate asset.
What it does
Every Brick NFT represents a partial ownership of a real estate asset. There are different type of bricks with different intrinsical values. The value of a real estate asset defines how many bricks are minted for that particular DAO.
The bricks can be traded on an NFT platform to give liquidity to the bricks. For trading of bricks a royalty fee will be charged by TuruGlobal. Every real estate project has its own bricks in the following dominations:
Bronze VBS brick: 250 USDT Silver VBS brick: 1000 USDT Gold VBS brick: 5000 USDT
Value & Revenue.
Owning a brick will give the right to receive the proportional share of income generated by the Real Estate project.
Every appartment bought by TuruGlobal is burdened with the cost of procuring (tax, legal, service fee & furbishing).- The total costs of the purchase of the apartment is summed up and defined as the Property Value.
Then the Property Value is split up in bricks, which will be put up for sale to sell partial ownership of the apartment to brick holders. Per real estate project there is a one time mint of a specific amount of uniquely identifyable bricks (NFT’s) representing the original value of the asset. If the value of the asset goes up, the value of the brick in principle follows.
Every property has its own DAO and the collection of all DAO’s is called the Versac Brick Squad
Once all bricks of an apartment are sold out, we will have a apartment governance platform on Discord for every specific DAO where the group of owners can interact. Key decisions can be made there based on 2/3 majority rules like:
Sell the property to cash in on value increase. Change rental profile from long term rent to AirBNB or vice versa. Other significant changes. VersacBrickSquad Discord:
TuruGlobal will invest in order to hold an initial share of 20% in all the DAO’s. This way TuruGlobal team will be participating in all governance groups. With a 20% share it has a right to vote, but the vote is not decisive allowing a true DAO operation and set up.
Brick sales and resales - MultiChain
The VBS Brick NFT’s are minted and made available on four different blockchains: POLY/TRON/BSC/ETH
Owning a brick gives you proportion of the passive income generated by the real estate asset. The bricks are liquid assets and can be sold on the NFT exchange platfroms of use. Every resale will be eligable for a royalty fee of 2.5%. This royalty fee is income for TuruGlobal for managing the platform. Depending on the NFT exchange used, there can be platform and / or gas fees.
How we built it
VersacBrickSquad is a TuruGlobal module managed by the team behind TuruGlobal and is therefore a part of the TuruGlobal Ecosystem.
Challenges we ran into
One of the key offerings of VersacBrickSquad is the opportunity for everyone to invest into real estate without the need of doing KYC.
TuruGlobal doesn’t withhold any taxation from earned income but leaves it to the responsibility of its community to manage taxation in line with the regulation of the country of residence by themselves.
Also we want to ensure liquidity of the Bricks held by our community, to give them the opportunity to sell their share at any moment.
The liquidity, the missing KYC and the land registry regulations in the various countries we have been exploring makes it impossible to give legal partial ownership of real estate to the holders of Bricks, as each of them should be individually registered in the land registry as partial owners of the property and an adjustment to land registry should be made anytime a Brick changes ownership.
Therefore in cooperation with our lawyer we have decided to define the collection of brick holders of a property as a DAO, where TuruGlobal owns the property but it holds a mortgage with the DAO where the property is used as full collateral for the mortgage.
A separate mortgage contract will be signed for every DAO. The DAO assigns one representative to be the individual with signature rights representing the DAO. In this manner there is a legal contract between DAO and TuruGlobal, where TuruGlobal borrows the sum of money representing the original value of all Bricks minted and the Real Estate Property is the 100% collateral against the Mortgage. The 100% collateral is independent of value of the property. So in case value increases, the collateral remains 100% so that all DAO participants benefit of the value increase.
The contract also states that all revenue (-costs) generated by the specific Real Estate property is provided to the DAO, who in its turn distributes it to the Brick holders proportionally.
Until the moment the DAO assigns another individual with signing rights based on voting, a TuruGlobal member ,who will also be part of the DAO representing the TuruGlobal share, will be volunteering to hold the signing rights to have a legal agreement in place between the DAO and TuruGlobal.
Accomplishments that we're proud of
Our biggest accomplishment so far is the aquisition and start of the sales on our first real estate object. More information can be found here :
What we learned
What's next for VBS - VersacBrickSquad
Currently we have a set of goals we are working towards.
- 40% of our first property bricks sold out will ignite the founding of the first property DAO
- 70% sales will mark the next step where we would start the aquisition and sale of our second property
As we will keep growing we will keep extending our real estate portfolio. We will diversify in already build properties and new to be build properties. To provide our investors different choices in a sustainable passive income