FAQs
What happens if the property does not sell?
When a property is first listed on the platform, the associated DAO plans to use a Debt Service Coverage Ratio (DSCR) loan to cover any funding gaps. If the required funding threshold (~25%) is not met, DAO members can choose to have their capital contributions returned or continue raising funds to pursue the same or a new property.
Are meetings held to make decisions about the properties?
Yes, DAO members (owners of the specific property) collaborate to make decisions. Members can schedule calls to discuss matters or use the platform’s text-based collaboration tools. All decisions are finalized through a vote conducted on the blockchain via our platform, ensuring transparency and security.
How are expenses and income divided?
Expenses and income are distributed based on ownership percentage. If a property incurs expenses beyond its operational reserve fund, a capital call will be initiated. This capital call must be approved by a vote and will be allocated on a per-token basis.
How do I report income and expenses from the rental property on my taxes?
DAO members receive a K-1 tax form that details all rental income distributions and expenses according to their ownership percentage. This form can be used to report income and write off expenses on your taxes.
What is the maximum or minimum amount I can invest in a property?
The minimum investment is 1 token, while the maximum is the total number of available tokens for the property.
Is there a contractual agreement once I invest?
Yes, each DAO is governed by an operating agreement signed by all members. This agreement outlines how the property is managed, the responsibilities of members, and the decision-making process.
How can I evaluate a property that is not local to me?
Each property listing includes detailed information to help you make an informed decision. This includes comparable sales data, local market insights, neighborhood scores, and financial projections or actual performance metrics.
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