To get started, browse through available properties here. You can view the property and financial information provided for each property to help you make an informed investment decision. Once you have selected a property you want to invest in and decided on your desired investment amount, you can purchase unique NFTs (non-fungible tokens) representing your ownership amount in that property. That’s all there is to it!
What is an NFT and why is Closin using NFTs?
An NFT is a non-fungible token, which is a unique one-of-a-kind unit of data on the blockchain. Because of this nature, they are non-interchangeable and cannot be reproduced. Each NFT is unique and the NFTs representing your property ownership cannot be duplicated by someone else, offering security and peace of mind that your ownership stake will always belong to you.
Closin is using NFTs to represent investors’ property ownership mainly due to these security and ownership benefits. Additionally, there are several established NFT marketplaces on which you can sell your NFTs, such as https://opensea.io/ and https://crypto.com/nft/marketplace. These marketplaces provide liquidity for your NFTs, allowing you to sell your NFTs at any time and realize gains immediately.
How do I purchase an NFT?
You first need to connect your crypto wallet to the Closin portal in order to make an investment. You can connect your MetaMask wallet here. If you don’t already have a MetaMask wallet, you can sign up for and create through their website at https://metamask.io/. Once your wallet is created, you will need to fund it with the cryptocurrency that is being accepted for that property. After your wallet is connected and funded, you are ready to select a property and purchase NFTs for that property.
Each property has its own NFTs representing the ownership interests in that property. In order to purchase NFTs for a property, you must first select an available property here. Once you have selected a property to invest in, simply click the Invest button for that property and you will be provided with step-by-step directions on how to purchase your NFTs.
How do I mint NFTs?
After you make your investment in a property and purchase the corresponding amount of NFTs, you will not immediately receive the NFTs. You must wait until either the funding percentage threshold or time limit has been reached, which is set by the seller of the property and which you can view on the property details page.
Closin uses a process called soft minting to mint the NFTs. This process is in place because the funding percentage threshold or time limit must first be reached before the investment is considered as closed. Immediately upon making your investment in a property, you will receive vouchers to mint the corresponding amount of NFTs. Closin uses a smart contract to receive and hold your invested funds and to issue and process the redemption of your vouchers. This adds a layer of security and privacy as we do not rely on a third party to hold funds and process vouchers. Once the funding percentage or time limit has been reached, you will receive instructions on how to redeem your vouchers and mint your NFTs.
What if the funding percentage threshold is not fulfilled?
If the funding percentage threshold is not reached, the property investment will be canceled. Your vouchers will be canceled and you will automatically receive a full refund from the smart contract of the exact same amount of currency that you deposited.
How is a property legally owned?
Each property will be legally owned by a limited liability company (an “LLC”) that is set up by Closin. By investing in a property and purchasing NFTs, you are purchasing an equivalent membership interest in the LLC. Additionally, you will receive a proportional number of NFTs, which corresponds to your investment amount. Closin does not have any ownership interest in any property, whether directly or indirectly.
Do NFTs represent real ownership of the property?
Yes, each NFT is legally tied to a certain membership interest in the LLC that owns the property. The LLC agreement, which is a legally binding document, will list each NFT and its corresponding membership interest. The entire set of NFTs for a property will correspond to an aggregate 100% membership interest in the LLC.
How much of the property do I own with one NFT?
Each NFT will correspond to a certain membership interest in the LLC and the underlying property. Each NFT will have an initial set dollar value. For example, one NFT could be equivalent to a $100 investment. The price of the property available for investment will determine how many NFTs will be minted. Assuming 100% of the property is available for investment, if the property’s price is $100,000, there will be 1,000 NFTs minted and you will own 0.1% of the property with each NFT (1 out of 1,000 total NFTs). If the property’s price is $200,000, there will be 2,000 NFTs minted and you will own 0.05% of the property with each NFT (1 out of 2,000 total NFTs).
How do I sell my NFTs?
You can sell your NFTs at any time on any NFT marketplace that allows them to be listed, such as https://opensea.io/ and https://crypto.com/nft/marketplace, allowing you to immediately realize your profits from appreciation of the property at any time. These secondary marketplaces are not governed or controlled by Closin in any way.
How do I receive rental income?
Your account dashboard will show all rental income that you have accrued. Each day at midnight PST, you will receive a notification in your account indicating the amount of rental income you have accrued that day for each property that you own. You can cash out your accrued rental income for any or all of your properties at any time, as long as you have accrued the minimum amount required for withdrawal.
How do I see the value of my NFTs?
Your NFT values will be displayed on your account dashboard, including the estimated value per NFT and aggregate value of your NFTs. The estimated value per NFT for each property is updated daily based on the last daily trade on https://opensea.io/. However, Closin does not guarantee the value of your NFTs, including the price that you would be able to sell them for on OpenSea or any other secondary NFT marketplace.
Can my property and NFTs decline in value?
Although the real estate market is generally considered a safe investment, it can also be volatile at times. We cannot guarantee that every property and corresponding NFTs will increase in value or not decrease in value. You are responsible for your own investing decisions and Closin is not responsible for any loss on your investment. The value of your NFTs may reflect any increase or decrease in value of the property.
Who manages and makes decisions regarding the properties?
Our founders will handle all property management decisions (such as selecting tenants, setting rental amounts and handling repairs) so you don’t have to worry about anything other than collecting your rental income. They have extensive experience with rental properties and maximizing return on investment, and have good working relationships with local property managers. The property manager for each property will be entrusted with day to day operations regarding the property, including making repairs, collecting rents and other similar matters.
As a holder of NFTs for a property, you are a part owner of the property and you will have a say in the important decision of when to sell the property. Any NFT holder can propose a sale at any time. Once an NFT holder proposes a sale, all other NFT holders of the property will receive a notification via our platform and an email to vote in favor or against a sale. If a sale is approved by a majority of the ownership interest in the property, we will list the property for sale. All offers to purchase the property will be presented to the NFT holders for a vote. If an offer is approved by a majority of the ownership interest in the property, the offer will be accepted. If multiple competing offers are approved, the offer with the highest approval percentage will be accepted.
Will I be personally liable for any incidents or issues related to a property?
No, the property will be legally owned by an LLC, as noted above. You will have a membership interest in the LLC proportional to your investment amount. Because the property is owned by the LLC and not you directly, you will not have any personal liability with respect to the property.