So, this is specifically for real estate. Generally, if you own your (residential, at least) property, you can get an equity based loan at the going rate to get some cash. I know Ukraine rates are higher than the US, but are they that much higher? Pretty sure you can do a home equity loan for like 6%, and I have to assume larger commercial loans are even lower. Plus they could do a full refinance for even lower rates in the 2-3% range. I don't see how tokenizing and effectively selling 40% of your building and forfeiting a percentage of future profits is a better deal than getting a loan from a bank for 40% of the building's value at a 2-6% interest rate... and getting to keep all the profits on top of that. Unless Ukraine interest rates are like 15-20% or something, seems like the bank is a better option. I'm probably just missing something, but my question is what is the draw to bring future properties in? Why would they choose this route over traditional finance?
I definitely get the SME side, but still trying to wrap my head around the benefits for real estate owners. Are they selling portions of the property they still owe money on? That seems quite risky. Maybe I am just not savvy enough on the costs associated with taking cash out of commercial properties. I'm quite excited about this project regardless for the SME side but any clarification on the real estate side would be appreciated.
Submitted September 15, 2021 at 11:59PM by Cryptomoura https://ift.tt/3nDLiBq
