on the crypto
Max Property Group brings innovation and transparency to the real estate sector
Despite being the class of most valuable activity in the world, the technology behind the real estate investment market has remained essentially unchanged for decades. Max Property Group, a real estate investment company in the Netherlands, which has experienced antiquated practices and outdated technology, has developed a platform with the potential to swing a trillion dollar 228 market.
The most valuable asset class in the world
In the 2016, the global research team Savills has calculated the value of all global properties for a total of 217 trillion US dollars. In the 2017, their research showed that global asset price inflation rose by 5% to $ 228 trillion dollars.
To put this in context, the real estate sector is a class of assets more valuable than all the shares, stocks and shares of the world put together, as well as all the gold ever extracted in the course of history.
Yolande Barnes, head of Savills World Research, said: "The real estate sector is the main asset class that will be most influenced by global monetary conditions and investment activity and which, in turn, has the power to make an impact. greater on national and international economies. "
In other words, the real estate investment market has the power to influence the entire global economy.
Given the enormity of this asset class and its potential impact on the world's finances, it is peculiar that it was no longer subject to interruptions by the wave of startups and technological advances that have emerged in recent years. Indeed, real estate technology, with the possible exception of rental ad platforms, has not progressed significantly for decades.
Barriers at the entrance
In addition to its pure dimensions, few asset classes offer levels of passive income and capital appreciation comparable to real estate, but in the same way few are subject to the same barriers to entry. These barriers can include access to banking, credit scores, finance, cash requirements and dependence on industry professionals. This is particularly applicable to cross-border investments, where anyone intending to invest in another country will probably have to travel internationally, go through different intermediaries and navigate foreign languages, laws and cultural practices.
Lack of transparency
The lack of transparency in the real estate market is reflected in the fact that, according to the United Nations, money laundering can reach 2 trillion dollars a year, of which a significant amount is recycled through real estate transactions.
On a smaller scale, many homeowners have found property problems with hidden damage, unknown debts, problematic neighbors and a myriad of potential problems that can be obscured. Title ownership records are often specific to a country or region, making it difficult to ascertain ownership or rights to a property. For example, most of the United States operates under a territory registration system in which there are no government officials to absolutely determine the title of the property or if a title transfer transaction is valid.
This lack of transparency can make almost every element of real estate investment difficult, risky and time-consuming.
Costs and commissions
International real estate investments are subject to multiple and variable commissions such as: foreign exchange commissions, transfer fees, brokerage fees, legal fees, taxes, etc. That does not take into account the cost of the advice of lawyers, tax consultants and accountants.
Due to the huge number of intermediaries involved, international real estate investments can be an extremely expensive process.
Liquidity and speed
One of the most significant problems with real estate investing is its lack of liquidity. When real estate investors want to free their money from their investment, the sale of a property can take months or even years, often leaving investors with their money tied up. Investment funds also often have a period bond, which means that investing in property often means committing money over a block period of several years.
Similarly, buying and selling a property can be extremely slow. According to a Chinese travel survey, the 56% of Chinese investors spend the selection of a US real estate investment in a year. In general, it can take six months to find a property and another six months to complete the transaction.
Distributed Ledger (DLT) technology, more commonly known as blockchain, is proving to be one of the main disruptive forces in the financial world and is starting to expand to other areas of the financial sector. One of the sectors on which DLT could have a great impact is the real estate sector, and in particular the real estate investment sector. Blockchain technology can significantly improve, if not overcome, some of the main obstacles that hold back the real estate market, making it more transparent, accessible and efficient.
Enter the maximum property group
Max Property Group (MPG) is a real estate company based in the Netherlands with operations in Germany and the United Kingdom. MPG has been managing real estate funds since 2016, but its founders, including Munte Immobilien in Germany, have been active in the real estate sector for decades. They also carry out sales, management and rental of properties. After facing first-hand the challenges of the real estate investment sector, MPG decided to simplify the real estate investment process and subsequently developed the Max Crowdfund platform from 2018.
Max Crowdfund is, or will be, as some features are still under development, a real estate investment platform where real estate investment opportunities can be listed by developers, purchased by investors and supervised by the authorities. Adding DLT means that each transaction is recorded on the blockchain and can be executed almost instantly. Max Crowdfund is one of the first platforms that exploit blockchain technology to interrupt the real estate sector, demonstrating that DLT can be used to modernize the real estate investment market and open it to a global audience.
Barriers at the entrance
Perhaps the greatest disruptive potential of blockchain technology in the real estate investment industry is the elimination of high levels of access. historically real estate investments have been exclusively for the rich, requiring a minimum outlay of tens of thousands of dollars and often running into the millions.
However, the tokenization of activities has allowed us to divide real estate activities into small parts, thus reducing investment levels to just hundreds of dollars. For example, by placing its real estate funds on the Max Crowdfund platform, MPG has managed to reduce the minimum investment amount from € 10.000 to just € 1.000, without affecting investment returns and is currently working to reduce it to € 100. This means that anyone who has € 100 can become a real estate investor, joining the super rich in enjoying asset-backed investments with high returns.
This in itself is a turning point for the real estate investment market. Considering that the real estate sector is the most valuable asset class in the world, currently accessible only to the richest, the opening of the market to ordinary people could become one of the most significant financial events in history.
Blockchain technology is resistant to tampering and, once an activity has been recorded, it cannot be removed or altered, resulting in an extraordinary level of transparency.
Any transaction that will take place on the Max Crowdfund platform, whether it is an investment transaction, the signing of a rental contract or a transfer of ownership, will be recorded on the blockchain.
The platform will also have a property management function, so that activities such as renovations, repairs, mortgages and rental contracts can also be recorded on the blockchain. In this way, when investors look at a property, they can access important information such as repair history, rental history, previous sale price, etc. Eliminating the need for agents and lawyers and reducing the risk of deception.
If the blockchain technology were further developed and adopted by the authorities, it could theoretically lead to a global land register in which all the securities are registered in an impartial manner in a single international system.
Costs and commissions
By automating much of the sales process, Max Crowdfund managed to eliminate many of the fees associated with real estate investing. Agent commissions are completely eradicated as the properties are accurately verified before inclusion on the platform and all related information is provided. Access to land registry documents, mortgage information, company accounts, etc. They are all available to allow investors to make informed decisions without resorting to an intermediary.
Automation further eliminates commissions such as notary fees, legal fees, accounting fees, etc. Transactions take place electronically on the platform, without the need for paperwork and are "assisted" by the blockchain without the need for "official" supervision. Intermediaries are replaced by technology, therefore commissions are reduced to relatively small amounts.
Liquidity and speed
Historically, an individual or company would own a property and to liquidate it, they should: list the property with an agent, market the property, wait for a buyer with enough money to buy the entire property, then engage in the sales process which could include structural checks, loan applications, price negotiations, etc.
With tokenized activities, an individual or company has a share of an investment property product that could be a share of a company, a bond owned by a company or a brick (a fraction of a physical property) that is represented by a digital token . In general, this would be in small units of € 1.000 or smaller and all information regarding the asset would be available on the blockchain. The process of selling this asset would therefore require little more than placing it on the platform and trading it electronically, an operation that could take only a few seconds.
Information on MPG
Max Property Group (MPG) is made up of real estate professionals with decades of experience in the real estate sector. Since its founding in 2016, MPG has raised several million euros of investments and currently holds assets valued at nearly 8 million (as shown in the second quarter financial report 2019). They currently manage properties in the Netherlands (Rotterdam and surrounding areas), Germany (Lower Saxony region) and the United Kingdom, as well as offering property sales services, managing a rental agency and running an academy that organizes seminars and workshops on real estate and blockchains.
The idea for the Max Crowdfund platform was born from the company's frustration with the historical barriers that affect their sector and their inability to find the technological tools to overcome them. The development of the platform has been successful with all the achievements achieved to date. The platform has tens of thousands of registered users from all over the world and is functional on many levels, with additional features added in line with the development roadmap.
Investing through Max Crowdfund
High quality real estate investments are listed on Max Crowdfund and registered users can purchase them, according to KYC and AML procedures, through the platform. Payment for the use of the platform is charged in Euros but paid in MPG token. This allows transactions to be recorded on the blockchain. MPG tokens have been around since January 2019 and are listed on different exchanges as shown on CoinMarketCap (https://coinmarketcap.com/currencies/max-property-group/).
Max Property Group is currently requesting the relevant licenses of the Dutch financial authorities (AFM) to manage Max Crowdfund. Once obtained, additional licenses will be required for operations in other jurisdictions. As soon as they are granted, the platform will be opened to list third-party investment products. Projects in search of funding will then be able to request listing on the platform and investors will have access to greater diversity of high quality investment opportunities.
MPG is currently in possession of a share round to pay for the final development of the platform and the license applications that will allow third party listing. Details are available on the Max Crowdfund platform. https://maxcrowdfund.com/en/mpg-security-token