The first housing development designed to be financed, marketed, and sold through the blockchain is about to get underway in Panama.
A company called Prime-Ex Perpetual is conducting an initial cryptocurrency offering (ICO) to raise money to build 125 luxury homes for expatriates around Panama City, Panama. Prime-Ex’s PEX-Token is described as a “blockchain REIT” (real estate investment trust). A REIT is a publicly-traded investment company that owns properties.
The Panama homes are designed as a real-world test of Prime-Ex Perpetual’s Waves-blockchain platform which is designed to eliminate the chokepoints in the real estate development and sales process. Prime-Ex hopes to create a platform that can handle all aspects of the real estate development process.
“We believe the model where our buyers participate in the success of Prime-Ex Perpetual will serve to create an ecosystem where everybody wins,” CEO and Cofounder John Gilbert said. “Prime-Ex wins, our token holders win, and our home buyers who buy and use PEX-Tokens win the most. They purchase a quality home more affordable than their peers, at terms more favorable than their peers, inside of a system that pays dividends perpetually.”
Making Home Buying More Efficient and User-Friendly
Prime-Ex Perpetual hopes to make the home-buying process faster, cheaper, more efficient, and friendlier to customers by streamlining it.
One way this will be achieved is by eliminating many of the middlemen involved including realtors, mortgage brokers, bankers, and insurance agent. Each middleman slows the process down; and increases costs, by adding new layers of paperwork and bureaucracy, Gilbert noted.
Prime-Ex is trying to create an integrated process that will provide homebuyers and sellers with one-stop shopping for all their real estate needs. An example of this integration is a simplified mortgage process with no-credit checks required.
Homebuyers can get simplified 30-year fixed-rate mortgage if they pay 25% down and agree to make payments in PEX-Tokens. Prime-Ex is developing similar solutions for every step in the resident-real estate process from land acquisition and development to rental management on the Waves blockchain platform. The Waves is a blockchain ecosystem similar to Ethereum.
Other solutions Prime-Ex plans to offer include an app that connects landlords and potential tenants and social-media marketing applications. The 125 luxury homes in the Republic of Panama will be used to test Prime-Ex’s solutions.
Panama is an ideal testing ground for such a system; because it is attracting large numbers of affluent European, Canadian, American, and other expatriates who often have a hard time finding real-estate financing. The Central American country boasts a democratic government, close ties to the United States, and a world-class financial center.
ICO Token Designed to Revolutionize Real Estate Going On Sale
Prime-Ex laid the groundwork for its housing development with a presale of PEX-Tokens that ran from November 1 to November 8. The initial-cryptocurrency offering (ICO) for PEX has been scheduled for November 15 through November 30, 2017.
If all goes as planned, Prime Ex will sell 30 million PEX-Tokens at a price of $1 USD apiece. PEX-Token owners will receive a perpetual yearly dividend based on Prime-Ex’s yearly audited profits. Sales and construction of the company’s first homes are scheduled to begin next year.
To buy Prime-Ex Perpetual’s PEX-Tokens please visit prime-ex.com. To learn more about Prime-Ex Perpetual; please download the whitepaper from www.prime-ex.com or www.facebook.com/PEXTokens, and follow the company on Twitter: @PEXTokens.