The property will undergo a traditional conveyancing transaction to transfer the title from the existing landlord into the SPV. A SPV Director will be appointed to manage the SPV and a property manager from an established firm will manage the property.
How do you ensure transparency?
Transparency will be achieved via the property management protocol.
After a successful Introducing Real Estate On-chain (IRO), all qualified property managers will be invited to submit a proposal to manage the Real Estate and that proposal will include projections for the next 12 months in terms of expected rental income, operating cost, and property management fee.
The property manager who submitted the highest projected rental yield will automatically be appointed by the SPV director.
During the next 12 months, if the property manager underperforms significantly from their projection, they will automatically be replaced with the property manager that submitted the next best proposal.