Commercial Property On PTPEstate To See A 59% Increase In Value! Calculations And More!
Many investors including family offices, VCs, and the usual private investors ask us the same question: “why should an investor buy real estate tokens? What will be the ROI?”
Our company decided to calculate the ROI (Return of Investment) for investors when it comes to the acquisition of real estate tokens through PTPEstate; which Core State Holdings is planning to develop. The calculation was based on the commercial property at 434 King Street West, Hamilton, Ontario, Canada. The calculation was based on information relating to the cost and income, provided to us by the building owner; approved by David Wagstaff, President at DFW Family Management Services.
A user case for the calculation was created: PTPEstate has been developed and the first owner of a building has completed the setup process to tokenize their property.
See the results below!
The Process and the Calculations
Once the property has been tokenized, the building at 434 King Street West, Hamilton, Ontario, automatically issued 7,100,000 tokens (Token name: 434KING); for the total value of $7,100,000. This building value is based on the calculations received at the time of launching the building for commercial activity. The cost of one token is $1.
The calculation showed us that if the owner of the building, after issuing tokens to the market, decided to sell only the required number of tokens – which is equal to 4,200,000 – to ensure the completion of the building and launch of commercial activities, this will allow them to quickly complete the building, launch commercial activities, and start receiving rental income. After all expenses and taxes are paid, the Property Management Company still has income that is then distributed to all token holders.
Below is a quick calculation summary (Annual):
Rental Revenue (CAD): $10,809,072
Operating Costs (CAD): $1,281,436
Capital Cost Allowance (Depreciation Expense): $2,693,678
Tokenization Costs (CAD): $324,272
Tax Income (28%): $1,621,112
Income (CAD): $4,168,574
Annual payment of income for each issued token (CAD): $0.59
Annual payment of income for each issued token in %: 59%
Value of a token after 12 months, according to our algorithm, will be: $1.65
The calculations showed that everyone who buys one token of this building during the year will receive $0.59, and this is equal to a yield of 59% of the original cost of the token. Also, due to the rise of the real estate market, and due to the commercial activities, the value of the token will increase to $1.65 at the end of the year. Naturally, we could not take into account the situation with the coronavirus (COVID-19), and so this situation may slow down the growth of the real estate market to some extent.
What Does $1.65 Mean to all Token Holders?
For the owner of the unsold tokens, which is a remaining 2,900,000 tokens, the value of their asset(s) after 12 months has become equal to $4,901,000. It is good capital growth, but we must not forget that they already have returned 59% in income this year – which is an additional $1,711,000!
The main benefit was the fact that the bank was excluded from this transaction due to the property being tokenized. The bank, normally, would have taken a large chunk of that revenue in principal and interest.
Even if we have made a mistake somewhere in the calculations, it is not by much. The future earnings for investors, from the PTPEstate platform, are impressive. We have the received the right from the owner of the building to provide a full calculation of the above information to anyone who is truly interested in our project and wants to participate in it.
Core State Holdings, Corp. upper management wondered what the ROI would be for our investors.
For PTPEstate, we have made a detailed Financial Forecast on the ROI. To create PTPEstate, which is a complex platform and consists of two main components – Asset Tokenization Platform (ATP) and Token Exchange Platform (TEP) – we require two investments: of $3.1 million and $7.9 million. Receiving the investment will allow Core State Holdings, Corp. to build a platform that will tokenize the real estate and asset markets; all while complying under local and federal security regulations.
How Much Money Will Investors Make From Investing in the PTPEstate Project?
The company plans to provide a Complimentary Bonus, of 5% to 10% from its Net Income, each year throughout the span of 4 years. This will give investors an income of $16,721,000.
There will be a dividend payment, after launching the platform, that will be paid to those who have purchased shares. Within 5 years, investors will receive $13,593,000 in dividends.
The value of the shares, worth $11,000,000, is planned to increase in value to $30,000,000 within a year after the launch of the platform. The growth is obvious. Therefore, investors will receive their initial invested capital back of at least $60,000,000. One to six. Perhaps one to ten; it will all depend on how the market will react.
In addition, most importantly, our company conducts the sale of its shares in any portions without a limit, and payment is taken for USD, CAD, and other Fiat currencies – for cryptocurrencies such as Bitcoins, Ethereum and others as well.
To confirm our words, we are ready to provide all interested parties with calculations, a project presentation, and Term Sheet.
Core State Holdings, Corp. is the owner of digital properties:
CannaSOS – the only massive social network (like Facebook) developed for the cannabis industry. Since 2014, CannaSOS acquired over 335,000 registered members and over 16,000,000 visitors, over 1,500 business pages, a 9,270+ marijuana strain database, 280 social groups, 5,625 unique articles created by members, and much more.
PTPWallet – a cryptocurrency wallet developed primarily for the retail sector. PTPWallet provides users in the crypto industry with over 10 modules allowing for the processing of transactions to be done quickly and effectively. Our platform has over 20,000+ downloads on mobile devices and over 230,000 desktop visitors. We are also offering businesses the ability to White Label PTPWallet.
PTPEstate – real estate tokenization platform. Under development.
PTPEstate is a combination of an Asset Tokenization Platform (ATP) and Token Exchange Platform (TEP). The ATP allows the Property Owner to transfer their real estate to tokenized ownership and release it out onto the market for purchasers. This means that when a RE/CRE is sold, tokens will be transferred to the Buyer(s).
Each token is linked to a property. If the property, as a result of the market or business activity, increases in price – the token will also grow in price.
Revenue, from the business activities of the PMC, is automatically distributed throughout the TEP to each holder of the token. If a token is somehow withdrawn from the platform, the holder does not receive anything for that token.
We welcome interested investors and partners! Contact еmail for any inquiries [email protected]
A Solid Reputation
As a company that has been operating out of Ontario, Canada since 2014, and that has created two large projects – CannaSOS and PTPWallet – with one (CannaSOS) being used by over 5 – 6,000,000 people every year and 1,300 businesses; we have built a reputation that can be trusted by investors. Our company has always complied with local regulations, has always strived to bring only the best to the table, is debt-free, and aims to impact the globe. The President of Core State, Oleg Cheine, states: “for us, the main thing is trust and openness of what we offer and what we will do. Trust is the key to success.”