Author Topic: [ANN] Introducing Kexcoin - BitShares Powered Real Estate Crowd Funding Project  (Read 7998 times)

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Offline fav

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what turned me off is the 15 year buyback cap. real estate is a long term investment, yet after 15 years you just stop buyback and own everything.
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Offline paliboy

1) We are based in the UK and governed by UK law
Name of the company? Link to the public registry so that we can verify?

2) We have been successfully providing student accommodation for almost 40 years (winning multiple awards) why would we need a business plan now?
Because this is a new company. Although the experience of team is very valuable, we would like to see revenue projections, cost projections, risk assesment.

3) Why would we leave the company after 1 year? The idea it to build up the company to generate more profits and increase the size of the portfolio? The company is the value not the Kexcoin that we receive in payment for many, many, years of work?
You never know why you might leave... We all are mortals and your kids might not be interested in running this business or you might not have kids or...

4) The core team get 10% (prorata) of the funds raised not 15% and nothing else. No salaries for the full time. If anything it's too little.
If it's too little, why are you doing it?  ;) It's up to investors to decide if your compensation is fair, not you.

5) We aim to be as transparent as possible and everything will be accounted for and audited for public viewing. We will be using a well known international firm for this.
Name of the company? How often will you report back to investors? Montly? Quarterly? Which channel will be used for reports?

6) We expect the first buyback to be performed in 3-6 months.
Are you really able to start generating revenue that fast?

7) I'm unsure why it's a flawed buy back or why the price would go down? As we buy back and destroy the Kexcoin they become more finite? With regular buybacks from regular profits we expect the price to increase. As you know you can set your sell orders on the exchange at higher prices and wait for them to be filled.
Because we already experienced it with other buybacks ;(

8 ) Core team receives 10% of tokens, what will be other 5% used for? Contractors? What if you need to hire a new full-time employee?

9) What costs are associated with your business? How big are they?

10) Is Kexcoin company 100% decoupled from Kexgill? What guarantee do we have that you won't be buying properties from Kexgill?

11) You mentioned that Kexgill has 120m GBP in assets, you forgot to tell use how much it has in liabilities. I would expect it to be highly leveraged.

12) It tool you 39 years to build a company with 120m GBP in assets, now you want to build similar company with about 70m GBP in assets in couple of months. Isn't it too ambitious?

13) Are you able to use these 70m GBP to buy properties in reasonable time (1-2 years?)

14) Since you already have a successful company, why didn't you bring also some fund to Kexcoin? When this ICO is successful, Kexcoin will have debt to assets ratio 100%.



Offline kexcoin

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Fav, how would you have done it differently? Longer buy back?
Our modelling showed that using the 50% net profits a 15 year period was long enough.

Offline kexcoin

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After careful consideration and feedback from multiple sources, we have taken the decision to increase the length of the buy back process to 30 years!
 

Offline pc

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1) We are based in the UK and governed by UK law


IANAL, but according to https://www.fca.org.uk/consumers/crowdfunding, FCA regulations apply to your offer. Did you register your project with them? Was there an independent review, possibly publicly accessible, that confirms that you meet the regulatory requirements?
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Offline kexcoin

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Take a look at the website www.kexcoin.com
If you read the white paper and terms and conditions all of the information is there.
We've done our due diligence and have worked closely with a specialist legal team specific to crypto.
 :D

Offline pc

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Can't find anything relevant. Deep link?
Please vote for my BitShares witness "cyrano" and for my STEEM witness "cyrano.witness"!
Bitcoin - Perspektive oder Risiko? ISBN 978-3-8442-6568-2 http://bitcoin.quisquis.de

Offline MarketingMonk

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[member=38641]paliboy[/member]

You can just search for Kexcoin Ltd on the UK company registry:
https://beta.companieshouse.gov.uk/

Offline MarketingMonk

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Quote
8 ) Core team receives 10% of tokens, what will be other 5% used for? Contractors? What if you need to hire a new full-time employee?
That 5% is for unforeseen expenses, this is quite typical in an ICO.
We also plan to use this for marketing and incentives i.e. social media competitions etc

The Kexcoin team is lean because we only have to manage the crowdfund, reporting and the buy back process. Kexgill will be providing the labor to source and administer the properties.

Thus there is no situation that I can see where Kexcoin would need a new full time employee.
The leaner we keep it the more funds we have left for buy backs.

Offline MarketingMonk

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9) What costs are associated with your business? How big are they?
Referring back to my previous reply, the costs associated with Kexcoin are very lean because it's main purpose is to administer the buy back and burn process.

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10) Is Kexcoin company 100% decoupled from Kexgill? What guarantee do we have that you won't be buying properties from Kexgill?
They are separate legal entities yes. They are each their own private limited companies.

We did think about buying properties that Kexgill already own to speed up the acquisition process and start the buy back asap, however the sale of the asset would attract the significant expense of capital gains tax, which is just money that is instantly drained out of the system. Not good.

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11) You mentioned that Kexgill has 120m GBP in assets, you forgot to tell use how much it has in liabilities. I would expect it to be highly leveraged.
Kexgill post their financials on http://kexgillgroup.com/

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12) It tool you 39 years to build a company with 120m GBP in assets, now you want to build similar company with about 70m GBP in assets in couple of months. Isn't it too ambitious?
The growth was not linear it's more exponential.

Imagine what 39 years of continuous improvement does to the process of sourcing, negotiating, buying and managing properties.

This is the 'secret sauce' in the project, the highly refined formula Kexgill have developed over nearly 4 decades. You don't get that from a startup.

Kexcoin is starting from year 39 if you think about it.

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13) Are you able to use these 70m GBP to buy properties in reasonable time (1-2 years?)
Richard Stott, Kexgill Group managing directory is always researching new deals and will waste no time after the ICO in putting the money to work.

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14) Since you already have a successful company, why didn't you bring also some fund to Kexcoin?
Kexgill have put up all the working capital. That's how we have financed this whole thing so far.

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When this ICO is successful, Kexcoin will have debt to assets ratio 100%.
Could you expand on that i.e. how do you see this as a problem?

Offline CryptoBrit

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Hi,
Can you please tell me.
1. If the Gross Yield will be 8-12% What you expect the profit % to be (to calculate buy back value)?
2. If a property is disposed of, will the money go back into the fund for buying new property?

Thanks

Offline kexcoin

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Hey CryptoBrit,

1) Gross Yield - we have purposely been very conservative on this figure in order not to mislead. Gross yields are generally from 8% to 15% depending on the type of property purchase (PBSA or HMO) and can be higher in certain circumstances. As we are not using bank funding you could expect the net profit to be around 25-30% less than the gross. Please also note that this is now. Over time and as rents increase, both the gross and net figure will increase substantially.
2) We are unlikely to dispose of property however, if we did sell property (say for strategic reasons) the funds would be used to purchase more property - so yes!

Offline CryptoBrit

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Hey CryptoBrit,

1) Gross Yield - we have purposely been very conservative on this figure in order not to mislead. Gross yields are generally from 8% to 15% depending on the type of property purchase (PBSA or HMO) and can be higher in certain circumstances. As we are not using bank funding you could expect the net profit to be around 25-30% less than the gross. Please also note that this is now. Over time and as rents increase, both the gross and net figure will increase substantially.
2) We are unlikely to dispose of property however, if we did sell property (say for strategic reasons) the funds would be used to purchase more property - so yes!

Thanks for that reply (x2)

What is a reasonable figure to use as a % year on year rent rise?

Offline kexcoin

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There are too many factors that effect the rental prices to give you an accurate figure.
Looking back over the past 15 years, rents have trebled in price.

Offline crypto_taurus

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Hi, this project is very interesting to me (As such, I have a lot of questions)!

I'm sorry people have been so negative so far :(
There's always reason to be cautious and ask thorough questions, but there's no need to jump to conclusions and start spreading distaste!

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10) Is Kexcoin company 100% decoupled from Kexgill? What guarantee do we have that you won't be buying properties from Kexgill?
They are separate legal entities yes. They are each their own private limited companies.

1.) How will the interaction of these two work in regards to property ownership and finances?
  • A) Will Kexgill or Kexcoin own the properties purchased from the ICO?
  • B) Kexgill will be managing the properties, so how will the profits from the Kexcoin properties be distinguished from Kexgill's properties' profit?
  • C) Are there checks in place to ensure that the costs towards managing Kexcoin properties are not inflated? i.e. unreasonable employee salary boosts, which would decrease the amount of profit generated from the Kexcoin properties, decreasing the amount of Kexcoins bought back from the community? (While still benefiting Kexgill)
  • D) Where are the profits that are not burned held? (until they can be reinvested) In a bank account in Kexcoin's name?

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11) You mentioned that Kexgill has 120m GBP in assets, you forgot to tell use how much it has in liabilities. I would expect it to be highly leveraged.
Kexgill post their financials on http://kexgillgroup.com/

2.) Anymore details available than what is in that 2016 Financial Brochure thing?
I'd love to see a company breakdown of expenses, liabilities, and revenue. I also understand that you guys are a private company and may not provide that information (if that's the case just tell me I'm SOL )

3.) Say the ICO does really well; you guys acquire a healthy $80+ million in real estate. The money starts coming in, and things look stable. Would you guys consider doing another coin offering and starting the process anew? If you did that, you would have to do a new, different coin correct? Otherwise the Kexcoin market would get flooded with new coins, defeating the purpose of burning.

4.) Follow up to 3: if it really takes off, are there plans to expand outside the UK?

That said, I'm very interested in the project. I really like how, you're basically just bypassing the banking system with a crowdfunded loan (where the payments are dictated by the market, NOT THE BANK!). Excited to see where this goes!

« Last Edit: August 18, 2017, 12:58:55 am by crypto_taurus »