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New Developer - New Purchase Model - Critique

Cryptopreneur

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Hey all!

Hope everyone is doing well.

New young developer here looking at my first site with a very interesting rent to own spin that I haven't seen any large scale developers offer.

Picture this. You're a new young grad, you're a doctor, a lawyer, a corporate professional, a trade worker, etc. You get paid well but the problem is, you didn't inherit a sizeable downpayment. In fact, you can probably afford a $6000/month mortgage, but you're stuck in rent cause there's no way you can save for that size of a downpayment. You also don't want to move into a community 2 hours away, or into a older home. You prefer the newest build, the newest tech, and high value communities.

Then you meet me. A young developer that's here to build, not for 100% profit, but with your future in mind.

Let's take a great site as an example. Say we've secured land in Richmond Hill, Markham, or Toronto around Bayview, Sheppard, etc.

We're building 50 detached 45', 50' homes. Super luxury. Prices will start at mid $2.5m. Here's the twist. You don't need a mortgage. You pay the developer directly a negotiated rent payment, and YOU decide how much to allocate towards an equity position with a required minimum of course. See, with this model, you decide your future. We just set a minimum rent payment (that's negotiated with you) and you decide the rest. Obviously from a developer standpoint, this doesn't make much sense as you'll need deep pockets. But I'm not thinking short term, nor are my investors thinking short term. We're banking on the appreciation moving forward and we're banking on you. See, what if I told you that you can sell the home after you reach 5% equity, 7.5% equity, 10% equity, 15% equity, and then profit based on your equity percentage? What if I told you at 20% you stop paying rent, and start paying down your mortgage. What exactly did you lose? Is this not a dream scenario for the people I described above? You can afford high monthly payments, so why would you not, for a few extra thousand, buy from my development?

Who's in? Would you buy? Would appreciate some critiques, changes, anything! I'm serious about this model as I've already found what I like to call "patient money investors" for the first site.

Oh by the way, in case you thought this was it, how could we not incorporate blockchain into this. EVERYTHING will be on the blockchain. No external lawyers. No agents. No unnecessary paperwork. You know exactly how much equity you have at ALL times. Cmon... everyone talks cryptocurrencies, but have you really understood how blockchain technology can be used in sectors like Real Estate? This is the REAL crypto use case.
 

afransen

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You had me at blockchain!

1666754715007.jpeg
 

Undead

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Given all the problems with precon real estate in Ontario, what would be the consumer protections here? I would never walk into a deal without a lawyer on my side.
 

Cryptopreneur

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Given all the problems with precon real estate in Ontario, what would be the consumer protections here? I would never walk into a deal without a lawyer on my side.
Sorry, I should’ve clarified, by no outside lawyers I meant no outside paperwork. Everything is handled on-chain in that we only need 1 lawyer that will represent you. Anyway, that bit can be made so you can bring your own lawyer and we use them only, etc, or just use the typical lawyer model. However, the point is to cut unnecessary costs and make things more efficient. Lawyer bit can be tweaked however you’d want.
 
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