The real estate market worldwide is world $217 trillion, which means it is both the oldest and largest industry globally. In the last two centuries, many different regulations and laws have been established, with the most recent changes involving security tokens.
When using security tokens for real estate, the issuer has to go through a long process to even be allowed to issue them. The process takes into consideration the following factors:
- Third party evaluation
- History performance
- Principle track record
- Declaration of debts
After these evaluations are complete, the property has to go through the registration process as a security. There are many other reports that the company needs to setup, like a due diligence report and a Private Place Memorandum. These are requirements for property owners that plan to have securities available to potential investors.
Despite the major regulations available to keep these securities safe, the idea of using property securities is still very risky. Without a physical meeting with these sellers, it’s hard to even tell whether they are the real owner or a lien and debt manipulator. The property may even have securities that overvalue what it is worth in order to get more buyers.
Jointer’s role in all of this is to keep a record on all of the documentation and different procedures that the issuer goes through, giving greater reassurance to the buyer. The end-to-end style of the platform makes each person involved feel more comfortable as they make their purchases, which is much less costly than taking on a security from a secondary source.
The owners of these properties also have their own set of benefits by using the Jointer platform. If they complete all of their documentation and apply through Jointer, everything is evaluated to make sure there are no loose ends that could cost them later. With everything found within a blockchain, the owner of the securities won’t even have to pay to launch an ICO for tokens.
Within the Jointer process, the company goes through five major steps:
- Analysis, which is performed with neural net artificial intelligence to create hypothetical situations to see how the securities perform with a threat.
- Property check, which validates all of the background and title checks with the First American Title Company.
- Registration, where the property is registered with a land trust and uses a trustee to handle the property and establish rights for the beneficiary.
- Security offering, which makes the tokens available for investors to purchase.
- Profits, which allows the platform to distribute the proceeds through smart contracts
Jointer’s use of artificial intelligence is the first of its kind with a learning algorithm for securities. There are over 500 underwriters who check out the property and evaluate anything that buyers may need to know to purchase the securities. Jointer makes sure that the owner maintains partial equity and ensures that the property is properly taken care of.
Blockchain technology allows for consumers reduce their cost, maintain immutable securities, and setup smart contracts that are much safer than without Jointer’s help. They expect the merging of the blockchain with real estate to be a major game changer, though consumers can visit jointer.co/ to learn more.