ARCre IS HERE

making Real Estate investing simple

Over the last decade, an increasing number of large institutions have begun purchasing residential real estate, such as single-family homes and apartments. It’s estimated that by 2030, as much as 50% of single-family homes will be owned by institutions. There is a global trend where it will be harder and harder to become a homeowner.

In mid-2023, Gven Sariol joined with Leon Cases, both executives at ARCrypto Education, began to conceptualize the tokenization of Real Estate through DeFi. Both have invested in real estate over the years and Gven has extensive knowledge of decentralized finance.

The idea of the ARCre has been brewing in the mind of Gven for many years. However, it was not until the crypto bear market of 2022 that the concept started to become a reality. Why? The answer lies in the massive surge the crypto market experienced from 2020 through 2022, fueled by the innovative technology of DeFi (Decentralized Finance). DeFi demonstrated to Gven that all financial transactions could be conducted on the blockchain in a trustless manner, eliminating the need for a middleman and the accompanying fees. It also showed that any real-world asset could be tokenized.

ARCre is here to make this Real Estate investments available to all through TokenizedRealEstate.Fi

Gven Sariol

Co-Founder ARCre

Leon Cases

Co-Founder ARCre

The primary reason for establishing ARCre is to make Real Estate investment available to everybody. The increasing trend of Real Estate Investment Trusts owning all property means that in the real economy, you will be subject to pay monthly for having a place to live for the rest of your life. Forever. And also your children and your grandchildren.

We envision ARCre and the tokenization of Real World Assets breaking this trend. Not only does TokenizedReal Estate.FI allow you to fund your property directly with users, cutting the middleman and the accompanying fees, but it also protects investor’s profits by allowing them to invest in an asset that would yield solid returns year after year. The crypto market, like any market, is characterized by booms and busts and predicting the peak is challenging. Our strategy is to consistently convert our crypto and DeFi gains into more stable investments like real estate, utilizing blockchain technology to enhance the way we invest in these traditional markets.

ARCre aims to be one of the institutions that allows owners and investors to meet and all make money in a fair economy. With no banks in the middle.

Our intention is to crowdfund all homes and apartments for long-term or short-term rentals by tokenizing these properties. This will make it possible for anyone to own real estate and carry it in their digital wallet, regardless of their physical location.

Tokenization of real estate will allow individuals to diversify their investments across multiple properties and real estate strategies, each with different risk-to-reward structures. It will also enable individuals to buy and sell properties like any other liquid asset, such as crypto, commodities, or equities. Imagine a world where you can trade real estate without needing large sums of money, waiting for paperwork, or relying on third parties to approve your sale.

Moreover, buying tokenized fractionalized real estate lets you participate in the monthly residual income without lifting a finger. ARCre has partnered with some of the top short-term property managers globally to ensure your passive income continues to flow month after month.

One unique benefit of tokenizing real estate is the ability to fluidly borrow and lend against your tokens, a feature not easily achieved in traditional markets. Decentralized finance allows us to connect our wallets and borrow against our real estate. This allows you to profit from any gains on your real estate without selling it or to buy another tokenized property, compounding your potential return.

ARCre is currently focused on investing in properties in emerging countries in Latin America, with Panama being our first target. We chose Panama due to its explosive migration rates, particularly from the United States and Canada. Panama City combines the familiarity of the United States with the charm of Latin America. It is one of the largest financial hubs in the Americas and home to the renowned Panama Canal, acting as a bridge between Eastern and Western commerce. We believe Panama’s tremendous growth potential makes it one of the best current investment markets.

Panama is also home to Gven and Leon, both partners of ARCre. Their presence in Panama provides them with a strategic advantage to identify the best real estate deals with the highest ROI.

Our goal is to first acquire properties that are suitable for both short-term and long-term rentals, as well as any other income-producing rentals. We plan to leverage a mortgage against these properties, aiming for a high value-to-loan ratio. We wish to finance no more than 40% of the value of any property we acquire (subject to change).

We are not setting a specific number for how many properties we want to acquire, as we believe this market offers endless opportunities.
Our second goal is to partner with Real Estate investors that have properties with proven ROI to extend investment and financing opportunities through our platform.
Our initial focus will be on properties in Panama. However, our Roadmap considers opportunities in other countries as they arise.
We aim to achieve a rate of return range of 5 to 15% per property per year, whether it’s a short-term or long-term rental. This rate of return is strictly related to rental income and does not include any appreciation on the principal balance.
We are determined to find the best deals, whether they be in pre-sales of up-and-coming properties, distressed properties, bulk purchases, or foreclosures.

Marketplace

Our company has chosen to partner with BlockSquare, a company that has developed a pioneer technology that allows you to tokenize real-world assets. They have partnered with renowned entities such as Project 79.

BlockSquare has a sister company that offers a marketplace where we can stake our tokens to earn yield in their token, BST. This token boasts strong fundamentals, including robust governance, buyback functions, burn mechanisms, and staking rewards. For more details about this token, please refer to their white paper.

How You Can Earn Money with Our Project

There are three ways to earn money with our project.

If you for example buy a $350,000 property and list 50% of it in ARCre marketplace, you would have 50,000 tokens at $3.5 per token to be listed for sale.

At only a $18,000 yearly net return for the property ($1500 net per month), you would have $9,000 per year of the total for the token holders that would have the future economic rights of 50% of the property. The token holders would receive a 5.14% ROI for their investment.

You as owner would be receiving in exchange $171,500 liquidity back if your tokens sold. This is a simplified example without fees and with minor returns.

Everybody wins. Except the banks.

Due Diligence

Both our company and BlockSquare conduct thorough due diligence on the cryptocurrencies used, which will be pegged to the real estate value or represented as securities tokens. The regulatory compliance requirements are particularly stringent for securities tokens to ensure maximum consumer protection.

In cases where we’re buying property that has not yet been built and selling future economic rights via tokens for these prospective properties, due diligence involves confirming that builders we work with have no outstanding liens or a history of failing to complete projects. We will conduct a five-year history check on every builder we engage with. We aim to avoid financial losses due to such circumstances.

For pre-owned, already-built properties, we collaborate with some of the best real estate agents to ensure full compliance and that the properties do not have any legal complications that could devaluate them in the future.

All our properties will be backed by securities tokens. Securities tokens offer numerous benefits to protect consumers’ interests. Although all marketplace members must pass KYC checks to weed out any bad actors, these tokens also have the ability to be burned and reprinted if stolen.

Note that the BST token, which you can farm by staking your tokens, is not a security token. If this token is stolen from your wallet, it cannot be replaced.

Also, if the quarterly dividends paid out in DAI coin are compromised due to wallet security breaches, these cannot be recovered. Therefore, please ensure you have adequate security measures in place to prevent theft of your tokens.

Every property we purchase with a mortgage will have a six-month emergency fund incorporated into the property price, along with a furniture and appliance budget. In case of an economic downturn, we want to ensure we have enough funds to cover the mortgage so that we don’t risk losing the property due to non-payment or foreclosure.
If we need to dip into this cash flow reserve, we will replenish it as soon as the property begins to generate a return. Our priority is to maintain this six-month reserve to safeguard our capital investment in the property.

Each property will be owned by a separate entity, dedicated solely to that property. All properties in Panama will be managed by PanamARC Management. Other countries will require different backend solutions that will be presented as the Roadmap advances.
Each property will be owned by a separate entity, dedicated solely to that property. All properties in Panama will be managed by PanamARC Management. Other countries will require different backend solutions that will be presented as the Roadmap advances.

All properties originally purchased by PanamARC Real Estate will be managed by PanamARC Management. A management fee of 10-12% will be deducted from all income collected from renters in the properties owned by PanamARC Real Estate. If there are any maintenance costs such as electrical, plumbing, etc., these expenses will be covered by the property’s earnings for that month or subsequent months. These costs will not be deducted from the 10-12% management fee.
Any properties not owned by PanamARC Real Estate but listed in our marketplace will only be subject to the 3% total value listing fee and the transactional fees (1.5% per transaction as per BlockSquare policy). There will be no management fee if no rental is managed.

Level 1 investors are investors that are either Raging Degens, Wealth Renegades or part of ARC or RAC Staking. Level 1 investors have the opportunity to get into the seed round of buying the properties before they are tokenized. This will yield higher ROI’s as the Level 1 investor will take place in profit sharing with tokenized real estate .fi once the properties have been tokenized. Level 2 investors are the investors that actually purchase the tokens that have been tied to the properties. Level 2 investors will receive airdropped dividends straight to their wallets on the agreed on time tables for any rents collected for the property that they have purchased. Level 1 investors are able to invest only the amount that they have invested in level 2 passive investments. For example, if a level 1 investor wants to invest $10,000 in a pre sale of a property, then they will need $10,000 invested in level 2 investments. The whole idea behind this is we are building a marketplace and want to make sure we are building the AUM.