Business Model
YieldStone operates as a Decentralized Autonomous Organization (DAO) that strategically acquires and manages real estate assets to generate yield through rental incomes and property value appreciation. By blending the best qualities of Real Estate Investment Trusts (REITs) and Private Equity Real Estate (PERE) funds, YieldStone offers a hybrid investment model that brings together the benefits of both traditional real estate investment vehicles and modern decentralized finance.
YieldStone’s Hybrid Model: Blending REIT and Private Equity Real Estate Dynamics
Real Estate Investment Trusts (REITs): REITs are entities that own, operate, or finance income-producing real estate. They are mandated to distribute at least 90% of their taxable income as dividends to shareholders, providing regular income and liquidity similar to stock dividends. REITs offer investors access to a diversified portfolio of real estate assets with relatively low entry barriers.
Private Equity Real Estate (PERE) Funds: PERE funds pool capital to invest directly in properties, focusing on long-term capital appreciation through strategic property improvements and effective asset management. Unlike REITs, PERE funds reinvest most of their earnings to enhance the value of their properties, allowing for higher potential returns. These investments typically require significant capital and are primarily accessible to institutional investors and high-net-worth individuals.
Introducing YieldStone REID I: The Real Estate Investment DAO
YieldStone introduces a unique, structured high-yield investment vehicle onto the blockchain. With our innovative approach and model, we are launching the first-of-its-kind Real Estate Investment DAO: YieldStone REID I. YieldStone REID I is structured as a Decentralized Autonomous Organization (DAO), supported by an "off-chain" investment entity responsible for holding real estate assets. This organizational structure allows the DAO to acquire properties globally, aiming to yield substantial returns for investors through effective asset management and operational strategies.
Our approach offers several key benefits:
Stable Yield: YieldStone acquires and manages properties that generate stable rental income, providing regular distributions to investors similar to REIT dividends.
Capital Appreciation: Like PERE funds, YieldStone actively enhances property value over time through strategic upgrades and efficient operations, targeting significant asset appreciation.
Accessibility: Our DAO structure lowers entry barriers compared to traditional PERE funds, making it possible for a broader audience to participate in high-value real estate investment opportunities.
Governance and Transparency: YieldStone ensures that operations and investments are conducted with integrity and alignment with investor interests. Our blockchain-based platform enhances transparency and accountability.
Enhanced Liquidity: YieldStone offers greater liquidity than traditional PERE funds through blockchain-based tokenization. REID shares can be traded in our secondaries marketplace, allowing investors to access their capital before the end of the investment period.
Investor Alignment and Performance Incentives: YieldStone structures its investments to align management's interests with those of the investors, including performance-based earnings and profit-sharing mechanisms that incentivize the management team to achieve and exceed targeted returns.
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