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Why doesn't he create a company with 100 shares that owns the house, transfer the house into the companies ownership, then just sell shares in the company? I d

Why doesn't he create a company with 100 shares that owns the house, transfer the house into the companies ownership, then just sell shares in the company? I don't understand: - How someone would value the 'tokens' he is selling on his house unless they came and looked at the house. - How the 'owners' of his tokens could preserve their investment. He might just decide to trash the place since he sold most of it for 'liquidity'. - Why he wouldn't then just sell the house and take all the money for himself. He'd have sold it twice! How's some crypto geek in Russia who bought his house token going to make a claim on that money?

pishpash 9y ago
I suppose he could do all of these things, depending on how the contract is written. Some of these problems occur with real contacts, too. A smart contact just gets rid of a subset of the issues relating to money transfer and escrow. It sounds like a proof of concept.
bradleyjg 9y ago
Yes, there's absolutely no reason to use tokens here. It doesn't solve any the problems with the idea, of which there are several. If you want to invest in the residential real estate sector the best way to do that is invest in a REIT that owns a portfolio of houses and rents them out. Not buy some shady smart contract token that may or may not entitle you to anything at all legally speaking and has god-only-knows what tax consequences. Also: I'm not really interested in having capital tied up in real-estate, but a lot of people are. And it makes sense as a middle ground investment - more conservative than stocks or crypto, but more aggressive than bonds or CD's. This is laughable. Compare the Case-Shiller index of home prices: https://en.wikipedia.org/wiki/Case–Shiller_index#/media/File:Case%E2%80%93Shiller_Index.svg https://en.wikipedia.org/wiki/Case–Shiller_index#/media/File... to real s&p 500 prices: https://2us9vjrl2kf1np7bx397xl07-wpengine.netdna-ssl.com/wp-content/uploads/2015/06/sp-500-inflation-adjusted-returns-since-1871-2015-long-term-chart.jpg https://2us9vjrl2kf1np7bx397xl07-wpengine.netdna-ssl.com/wp-... And consider that real estate is typically owned with quite a bit of leverage while stocks typically aren't.
- oldsklgdfth 9y ago
  Yea, this just sounds like asset-backed securities with central banking cut out.
- alex_young 9y ago
  Don't your charts prove his point? The S&P chart is logarithmic.
  - deleted 9y ago
    [deleted]
imglorp 9y ago
Furthermore, does a shareholder then get a say in how the house's value-impacting decisions are managed? Adding a deck, adding solar, painting it purple, or hooking up to public water, just for some examples. Do the shareholders vote on what the tenant/shareholder can do? Isn't this a lot like an HOA?

pishpash 9y ago

I suppose he could do all of these things, depending on how the contract is written. Some of these problems occur with real contacts, too. A smart contact just gets rid of a subset of the issues relating to money transfer and escrow. It sounds like a proof of concept.

bradleyjg 9y ago

Yes, there's absolutely no reason to use tokens here. It doesn't solve any the problems with the idea, of which there are several. If you want to invest in the residential real estate sector the best way to do that is invest in a REIT that owns a portfolio of houses and rents them out. Not buy some shady smart contract token that may or may not entitle you to anything at all legally speaking and has god-only-knows what tax consequences. Also: I'm not really interested in having capital tied up in real-estate, but a lot of people are. And it makes sense as a middle ground investment - more conservative than stocks or crypto, but more aggressive than bonds or CD's. This is laughable. Compare the Case-Shiller index of home prices: https://en.wikipedia.org/wiki/Case–Shiller_index#/media/File:Case%E2%80%93Shiller_Index.svg https://en.wikipedia.org/wiki/Case–Shiller_index#/media/File... to real s&p 500 prices: https://2us9vjrl2kf1np7bx397xl07-wpengine.netdna-ssl.com/wp-content/uploads/2015/06/sp-500-inflation-adjusted-returns-since-1871-2015-long-term-chart.jpg https://2us9vjrl2kf1np7bx397xl07-wpengine.netdna-ssl.com/wp-... And consider that real estate is typically owned with quite a bit of leverage while stocks typically aren't.

oldsklgdfth 9y ago
Yea, this just sounds like asset-backed securities with central banking cut out.
alex_young 9y ago
Don't your charts prove his point? The S&P chart is logarithmic.
- deleted 9y ago
  [deleted]

imglorp 9y ago

Furthermore, does a shareholder then get a say in how the house's value-impacting decisions are managed? Adding a deck, adding solar, painting it purple, or hooking up to public water, just for some examples. Do the shareholders vote on what the tenant/shareholder can do? Isn't this a lot like an HOA?