Looking for a co-founder to build a real estate/blockchain

[offvega]

I'm from Costa Rica. With a background in technology, international business and CS. I am aware of the very high number of tourists from the USA, England and France that our country receives every year. I have the idea of developing some vacation homes on a property 5 minutes from 4 beaches, overlooking the sea, that a friend is selling at a very low price. With $500k we could buy the land and build at least 2 medium houses, with luxury finishes and fully equipped to rent to vacationers or sell them.

The idea is to create a token and that people in the crypto community can buy it to participate in the profits in the future. For example: 1,000 tokens of $500 each, if someone buys 20% of the total issue, they participate in that same proportion of on capital gains.

[verdverm]

Why not use a REIT or similar existing legal framework that is better understood by courts and investors?

[offvega]

Thanks. What happens is that I do not own the land, nor do I have the FIAT money to participate. Then a REIT will do it on its own.

But also what I really want is to do it in a new way, using the reliability of blockchain and giving an opportunity to people from other countries to have a business or property in Costa Rica.

And if it works, duplicate the model in other regions of the country. What I think is that I can bring local knowledge, asset management, the reception of future guests and all the legal advantages to obtain permits (for being from here) to develop the project, and other stakeholders can invite friends to visit Costa Rica and spend the days in the houses.

I appreciate any other feedback.

[verdverm]

You should look into your investors' security laws. For example, if you have US investors, you probably need to comply with US securities laws. This venture would fall under the Howey Test here. Using blockchain will not alleviate your legal requirements. IANAL, YMMV

You're far more likely to find a lawyer who knows how to structure this outside of the crypto space. Also, even if you do something with a blockchain, you will still likely have IRL legal and regulatory processes to abide by, at which point the blockchain is redundant and extra work.

I looked into CRE with blockchain with a very successful RE lawyer and we opted not to once the governmental burden was understood. Real Estate seems like one of the more difficult industries to move over because of how many laws, jurisdictions, processes, and existing paper / pdfs there are.

[offvega]

I really appreciate your advice and explanation. I will delve deeper into the regulatory frameworks to see if it is feasible to execute it. Thanks buddy.

[du_bing]

Interesting idea. What would be the compensations?

[offvega]

Hi Du_bing. You mean the compensation for the co-founder or for the stakeholders?