Author Topic: [ANN] Introducing Kexcoin - BitShares Powered Real Estate Crowd Funding Project  (Read 7995 times)

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Offline paliboy

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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.
How big is an average deal?

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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?

It's not a bad thing per se, just investors should be very cautions when investing to such a project. Basically you have nothing at stake (except of you time/effort). In the worst case scenario the company bankrupts, you sell all properties and split the money among kexcoin holders. Investors loose and you get either nothing (if you had sold all your 10m kexcoin) or some small amount (if you still own kexcoin). This is very unbalanced. You should understand it after doing business for 39 years ;)

15) Are you keeping BTC until the very last moment or will you exchange it to fiat immediately after ICO? Will you use DEX and OpenLedger fiat gateway for this exchange?

Offline kexcoin

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Thanks for your interest. We like questions as it helps get our message across.  :)

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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?

1A) Kexcoin will own the properties from the ICO. Kexgill will have no ownership of the funds raised, they will be providing management services.
B) Kexgill will charge a management fee to Kexcoin (as it already does with a small portion of managed properties). These fees will be published on the website for transparency and will be the general market rate so could not be inflated.
C) As above, everything will be published to keep things transparent.
D) Yes - they will be held in a bank account in Kexcoins name. Kexcoin and Kexgill will be ran as two separate businesses except for management services.

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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 )

Detailed accounts can be obtained at https://beta.companieshouse.gov.uk/

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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.

We have no plans to do this however, hypothetically, if we did any other project it would be set up independently from Kexcoin. There are currently 10m Kexcoin in existence and this will only go down. At no point will any more be created.

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

Kexgill already have property in Germany (not shown on the government accounts site above). There are no plans to buy outside of the UK with Kexcoin.


Offline kexcoin

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How big is an average deal?

There isn't an average deal size. Recent deals with Kexgill have ranged from £100k to £13m

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It's not a bad thing per se, just investors should be very cautions when investing to such a project. Basically you have nothing at stake (except of you time/effort). In the worst case scenario the company bankrupts, you sell all properties and split the money among kexcoin holders. Investors loose and you get either nothing (if you had sold all your 10m kexcoin) or some small amount (if you still own kexcoin). This is very unbalanced. You should understand it after doing business for 39 years ;)

We actively encourage participants to be cautious and to do their due diligence. There are so many scam coins out there that it is easy for people to loose money. We believe that those of you that do your research will see us as the safest and best option.
I don't see how the worst case scenario would be going bankrupt. Usually this could only happen if the banks foreclose on you and as you know we are not using the banks. My personal opinion is that the worst case scenario is, a property does not perform as planned for some reason. If this was the case we could dispose of it and reinvest the funds back into new property?

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15) Are you keeping BTC until the very last moment or will you exchange it to fiat immediately after ICO? Will you use DEX and OpenLedger fiat gateway for this exchange?

We will exchange to fiat, to purchase property, as soon as possible and to ensure the preservation of value. We will not hold in the hope of increased value or to play with participants money. We will be using a specialist law firm to do this to ensure it is done at "arms length" and again to ensure transparency.

Offline paliboy


1A) Kexcoin will own the properties from the ICO. Kexgill will have no ownership of the funds raised, they will be providing management services.
B) Kexgill will charge a management fee to Kexcoin (as it already does with a small portion of managed properties). These fees will be published on the website for transparency and will be the general market rate so could not be inflated.
C) As above, everything will be published to keep things transparent.
D) Yes - they will be held in a bank account in Kexcoins name. Kexcoin and Kexgill will be ran as two separate businesses except for management services.


How will you prevent conflict of interests? E.g. when you find a good property that you would like to buy... how can we be sure that you will buy it for Kexcoin and not Kexgill?

Offline MarketingMonk

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How will you prevent conflict of interests? E.g. when you find a good property that you would like to buy... how can we be sure that you will buy it for Kexcoin and not Kexgill?

That's scarcity thinking. There are more property opportunities than we can ever take advantage of even with £70m. If we had £100m or £200m we could still find enough property deals to put it to work.

As I think I said in another thread, Richard (managing director) is not so much limited by opportunities but by the amount of capital that is available.

Offline kexcoin

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How will you prevent conflict of interests? E.g. when you find a good property that you would like to buy... how can we be sure that you will buy it for Kexcoin and not Kexgill?

Both companies will be purchasing property going forward. There are lots of factors as to who would purchase but let me first point out, there are more than enough properties for both companies.
Should the token sale be successful then the main aim would be for Kexcoin to spend the funds as quickly as possible, while still being diligent and mindful of a good deal.
The main restricting problem is finance. Financing property through banks is a very slow process. As an example a recent large transaction made by Kexgill took almost a year to finalise and complete on. This being the case, if a deal was time dependant then it is likely that Kexcoin would take it as we could move quickly. Also cost of the property being sold would be a factor. Potentially Kexcoin will be able to purchase much larger projects or even companies, where as Kexgill are limited as to the amount that they can borrow from the bank. Later down the line this would likely be the inverse as Kexcoin would only be able to buy smaller projects from generated profits.

Offline kexcoin

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We're looking at the idea of offering a bounty at the end of the 30 year buyback. Is this something that the community would approve of? I would assume so but I'd love to hear your feedback?

Offline crypto_taurus

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We're looking at the idea of offering a bounty at the end of the 30 year buyback. Is this something that the community would approve of? I would assume so but I'd love to hear your feedback?

Can you elaborate on this?

Offline kexcoin

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Can you elaborate on this?

Over the 30 year buy back period we expect all/most of the property to appreciate substantially in value with inflation etc. What if we split this property price inflation 50/50. It would be one huge payout. Makes the token sale more appealing?

Offline fav

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Can you elaborate on this?

Over the 30 year buy back period we expect all/most of the property to appreciate substantially in value with inflation etc. What if we split this property price inflation 50/50. It would be one huge payout. Makes the token sale more appealing?

As a last bagholder payment? Sounds good
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Offline CryptoBrit

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A few more questions..

1. The buyback ends after 30 years but 30 years from when?.. the ICO, the first buy back etc. Will there be 120 buybacks in total?
2. Is ALL the money from the ICO put into property purchase or will there be other expenses that come from it?
3. 50% of profit is put back into buying property, but how long on average does it take for that profit to start generating revenue?

Thanks in advance.

Offline kexcoin

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A few more questions..

1. The buyback ends after 30 years but 30 years from when?.. the ICO, the first buy back etc. Will there be 120 buybacks in total?
2. Is ALL the money from the ICO put into property purchase or will there be other expenses that come from it?
3. 50% of profit is put back into buying property, but how long on average does it take for that profit to start generating revenue?

Thanks in advance.

1. The 30 years would start from the end of the ICO on the 14th October. We aim to perform the first buy back within 3 to 6 months so there would be somewhere in the region of 120-119.
2. No, that's unrealistic / impossible. There will be other costs such as legal fees, searches, property improvement and other business expenses that will need to be covered before profit is generated. This being said, these costs would be regarded as small / minor compared to the bigger picture.
3. This all depends on the property that we purchase and the size of it. If it is tenanted when we make the purchase then it generates income immediately.

Offline CryptoBrit

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2. No, that's unrealistic / impossible. There will be other costs such as legal fees, searches, property improvement and other business expenses that will need to be covered before profit is generated. This being said, these costs would be regarded as small / minor compared to the bigger picture.

Are these costs included in the 25-30% of gross figure you gave me earlier?

Offline kexcoin

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Are these costs included in the 25-30% of gross figure you gave me earlier?

I think you have some confusion as to the day to day running costs against the actual set up.
In order to begin the project we need to purchase the properties. There are a number of costs to doing this such as legals ect. We would regard these as set up costs and should be seen as one off costs.
Once the properties are purchased they then start to generate a profit and require management / costs which we referred to earlier. These costs are ongoing as you would expect.
The percentage return that we generate on a certain property will depend upon both of these costs (set up costs and ongoing costs). Gross profits would take into account the one off costs and net profit would take into account the management / reoccurring costs.

Offline CryptoBrit

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Are these costs included in the 25-30% of gross figure you gave me earlier?

I think you have some confusion as to the day to day running costs against the actual set up.
In order to begin the project we need to purchase the properties. There are a number of costs to doing this such as legals ect. We would regard these as set up costs and should be seen as one off costs.
Once the properties are purchased they then start to generate a profit and require management / costs which we referred to earlier. These costs are ongoing as you would expect.
The percentage return that we generate on a certain property will depend upon both of these costs (set up costs and ongoing costs). Gross profits would take into account the one off costs and net profit would take into account the management / reoccurring costs.

Thank you for the clarification. Would you be able to give a rough estimate of that setup cost either as % of the ICO receipts or a £ figure?