I have a naive thought, something i think some of you might have an experience with:
I would like to ride the wave of cryptocurrencies in a larger scale, and to do that, I am thinking of a fund. This fund will take cryptoassets from owners, and keep them until certain liquidation events to buy real estate.
Liquidation event 1: Liquidate 10% of assets (evenly distributed, if possible), and record that in ledger as ownership of current fund according to their contribution at the time of liquidation.
Acqusition event 1: Using funds from (2), buy real estate, and return the returns to users as dollar backed tokens somehow.
2 and 3 can repeat until money is consumed.
1 can consume as the success of previous rounds ensue.
The fund takes 10% equity in the round (basically 10% of the money collected goes to fund owners), and 80% is used on real estate, 10% might be used for contingencies or something.
Again, i am not experienced at all with this kind of work in practice, just speaking my mind.
It might be quite lucrative to ride this wave while actually doing something tangible.
i mean obviously, consult the lawyer, but, what else?
And why good luck? Worst case scenario, things go bust, your fund deflates from 50M to 100K, you buy nothing, which will be written i nthe contract.
You will have plenty of bottleneck in the process of contracting, storing, transferring…etc and finally when things are not right, organizer (or owner/CEO/fund manager ) will be sued. Owner’s entire net worth is at risk.
Sorry to scare. When things are fine, no one will say anything. When it is falling apart, owner/organizer will be easiest target and life will be miserable thereafter.
Yes, with that shield, all others will escape except CEO and CFOs. We can save our current networth with Corp shield, but not our life. Look at Enron, MCI-World…etc
It depends on how big is the money and how do they treat at the end of legal battle (if any)?
REIT or Other Corps have big money power, they can hire creme of lawyers. If you have such strength, you can do it. Still, it depends on how big you go.
Reputation, history or track record, is required for people to pour in to your corp.
I have even tried with few friends to gather money and buy bay area real estate. Only one friend came, but others talk never ready to give money.
If track record is there, people are ready to fund…Getting reliable persons are tough, record maintenance (IRS + CA audit), distribution, security, lawyers, CPA…blah…blah…plenty of hassles involved with public money. It is a full time job.
It takes time to form corp…etc, by that time Crypt Currencies would have crashed.
Crypto money came too easily. Not sure of these crytomoney guys can hold on to their wealth. In the end, they may have a house a car. Rest of their cryptos wealth may just go to the black hole
That’s my point. While the money is “easy” for them, it may be “easy” for the fund to take it and put it into some tangible assets (and give them ownership).
