Since 1986, one in each 6 dollars minted goes to the real estate sector. It is indeed one of the most influential driving forces of the global economy. And like any other industry, real estate is subjected to strong regulations, be it development, financing or borrowing. The legal frameworks, however, have failed to resolve prevalent rampant issues in the real estate sector, leading to heavy intermediation, fraud, price volatility, and many other shortcomings that harm lenders and owners alike.
Prime-Ex Perpetual, a Panama-based real estate platform, proposes to resolve such issues by re-thinking the way that real estate is built, sold, and financed. The blockchain-focused startup promises nothing less than a real estate revolution when it introduces the Prime-Ex Perpetual Ecosystem. This ecosystem, as stated on the website, “changes real estate development, financing, and borrowing experiences of participants by replacing interest rate risk with equity participation”.
John Gilbert, Director, and Co-Founder of Prime-Ex Perpetual explains,
“We get rid of the negative consequences that traditional lenders have used to get developers, homebuilders, and home buyers to pay and replace of potential foreclosure and replace it those things with equity participation that incent the developers and home builders to perform, along with guaranteed buybacks for home buyers that limit the borrower’s maximum exposure and allows them to know up front what their maximum potential for loss is.”
Particularly focused towards residential development, residential home building, and residential lending, Prime-Ex Perpetual proposes a framework that benefits all. While developers and builders get excused from pouring more and more funds into their project, the homebuyers will benefit from borrowing terms that require no credit scores or proof of income within the Prime-Ex ecosystem.
Mr. Gilbert also explains “we combine our model with what we believe to be a much more efficient and practical way to hold title to the property that is more beneficial for all involved while limiting exposure to risk. This replaces potential legal battles and the implied threats of foreclosure, bankruptcy, and injury to a borrower’s leveraging capacity beyond the scope of the project with a mutually equitable system by which the shares of the corporation that owns the underlying collateral revert back to Prime-Ex, whether by buying back the property or eventual non-payment. We’ve replaced the fear of default risk that ends up injuring everyone involved and built it into our model in such a way that everybody wins.”
Metamorphosing Ideas into Reality
To bring their ideas into a fully-functional reality, Prime-Ex Perpetual is looking to raise $25 million through the sale of its institutionalized tokens, called PEX-Token. The raised funds will be allocated towards building the residential real estate in both the highlands as well as the tropical climates of the Republic of Panama.
Each PEX token will be pegged at $1 and may be purchased with Bitcoin, Ethereum, or WAVES tokens only on their website prime-ex.com beginning September 18th. Prime-Ex proposes to create demand for PEX by allowing homebuyers to pay the mortgages on it at the current market rates. The principal portion of the PEX token will again be used to build more housing projects and financing. Hence, the overall demand of these limited tokens will increase with time, which makes it a great profitable asset to hold on to.
“We utilize blockchain technology to create a perpetual funding mechanism for the markets that we enter”, Gilbert states, “and to increase efficiency and transparency from the traditional bank model by trimming away the old practices that are inconsistent with the realities of the global economy we experience today.”
Yashu Gola is an IT-graduate with an intense interest in Bitcoin technology. The techie has been writing on cryptocurrencies for over a year now (over 700 articles to his credit), and is keenly enthusiast about the day-to-day discoveries this sector is making. With Live Bitcoin News, he is looking forward to bring forth his views on the latest Bitcoin events and everything that surrounds it.