Forum

HelloMiners Forum General Server Discussion [Concept] Bankersachs Real Estate Investment Funds


[Concept] Bankersachs Real Estate Investment Funds

General discussion concerning HelloMiners.

[Concept] Bankersachs Real Estate Investment Funds

Postby Vanished » Wed Apr 10, 2019 1:56 pm

Bankersachs Real Estate Investment Funds

Introduction
I am looking to start a series of real estate investment funds for the server. The funds pool money together from players then use the money to buy plots, buildings, houses, cities, and/or wild land. Each fund will be dedicated to a single real estate property.

In summary, a fund comes into existence once it purchases a real estate property using money collected from investors. Then the fund exists for the purpose of paying investors rent money from the property. The fund comes to a close once the property is sold (fortunately, for a profit).


Ownership in a Fund
The purpose of these funds is to allow any player to invest in prime-location properties that typically require large sums of money to purchase. As an owner in a fund, a player receives a stake in all the money generated from rent and from resale.

An important note about ownership in a fund. Ownership in a fund does not give investors access to a property. Investors are not added to properties. An investment in a fund is solely an investment through which an investor receives a share of the money generated from rent and from resale. As mentioned earlier, the purpose of a fund is to allow any player to invest in a plot that would otherwise be expensive to purchase individually.

When a fund opens for the first time, it will typically issue 100 ownership shares. As a result, each share represents a 1% stake in the money generated through rent and resale. Players can purchase single shares or multiple shares from the fund. Afterwards, players may resell their shares to other players.


Example
Take the following example.
  • Step 1. A new fund is created to purchase a specific 1st row RC plot.
  • Step 2. The fund approaches the owner of the plot and negotiates a fair market price. Let’s say that the price is negotiated to 200,000F.
  • Step 3. The fund publicly announces that it plans to invest $200,000 in the plot and sells ownership shares to the public.
  • Step 4. Once the full 200,000F is raised, the fund uses the pooled money to purchase the plot.
  • Alternative situation. The fund may not be able to raise 200,000F for the plot purchase. In this situation, the fund will return the already collected money and will shut down.
  • Step 5. Once the plot is purchased, the fund rents the plot to a shop and collects rent each month.
  • Step 6. As soon as rent is collected each month, the fund distributes the cash from rent to its investors.
  • Step 7. After some time, the fund finds a buyer for the plot and negotiates a price.
  • Step 8. Once the fund sells the plot, the fund distributes the cash from the sale to its investors.
  • Step 9. Once all accounts are settled, the fund shuts down.
This example can be applied to plots used for apartment buildings.


Benefits to Server
As I have been saying, these funds give any player the ability to invest in real estate that would otherwise be expensive to purchase individually. Players may invest in multiple funds to receive investment returns from multiple properties. In general, players will have the ability to invest smaller sums of money in order to become owners in HelloMiner real estate. There is also a second benefit to the server. These funds may also help shopkeepers afford better shop locations and manage their risk of purchasing expensive plots.

Typically, shopkeepers try to purchase prime-location plots to reach more shoppers. These plots tend to be expensive. At the same time, shopkeepers may only run a shop for a short time then struggle to resell their plots to recoup their purchase costs. With our fund, we would purchase the same plots and offer them for rent.

Through rent, shopkeepers do not need to save large sums of money to get a prime-location plots. At the same time, shopkeepers do not need to worry about the resale values of the plots. Hence, investment risk is minimized for shopkeepers and shopkeepers can easily move between locations. In order to attractive shopkeepers to fund properties, shopkeepers would be allowed to enter into rent contracts that allow renovations to properties.

Legal Aspects
There are legality issues with allowing multiple owners to a plot. I do not understand why this is an issue. Regardless, I do not see the harm of funds owning plots. While funds are owned by multiple players, plots are rented out to the public. At the same time, players who invest in funds are not added to plots. As explained earlier, an investment in a fund does not give an investor the right to be added to the plot. An investment in a fund is only the right to collect the money generated from a plot.

If a certain plot is located in an area that requires a single owner per plot, a fund would rent the plot to one player. That player is anyone from the public who wants to use the plot. The fund will not give first dibs to its own investors, and the fund will not rotate plot usage between each investor. The fund will purchase the plot and rent it to the public in order to generate investment returns for its investors.

Conclusion
What do you think about this concept?
2 people like this post.

Re: [Concept] Bankersachs Real Estate Investment Funds

Postby d0dleysvrz » Sat Apr 13, 2019 11:44 am

unique idea and i think it would work. Instead you tunr a one time investment of 200k to a budget split over a couple of months.

Gives players with less money an opertunity to get a front row for once :)

Though it might prove harder to aquire these kinds of plots than you might think.
Doods/D0d/Nub - ~Itsd0dley
HM Veteran - Playing since 2012
Well known master Architect & Builder

Founder and Owner of DOME Inc. and Dome city
Click here for more info

Net. Worth: 1,686,612.85F

Multiple times award winner of the YLE awards and government architecture competition.
Image
Image

Re: [Concept] Bankersachs Real Estate Investment Funds

Postby fbo6 » Sat Apr 13, 2019 3:45 pm

I like this idea. I'd invest in this.
-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-

-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-^-

Re: [Concept] Bankersachs Real Estate Investment Funds

Postby MrNuggly » Fri Apr 19, 2019 3:52 am

"Bankersachs"
ViHQ likes this post.