Investment Process

Use case 1: crowdfunding of a managed asset

This is our primary use case: 90% of all listings.

1. Once an attractive asset is found by DREM, its NFT is created on the blockchain and listed on the marketplace.

2. Its NFT is then marketed and sold to investors on our portal.

3. When fully funded by the public, (i.e. when DREM has received all funds from individual investors) the property is purchased by a DREM subsidiary (codename D-REIT). Although the asset is formally owned by D-REIT on the balance sheets and in the cadastre/property registry, Algorand's smart contracts distribute its ownership (and risk) to the investors in the same proportions as their investment.

4. Management of the project, in this use case, is transferred to a management company partnering with DREM.

5. During the property's lifetime, all rental profit is distributed across all NFT owners in accordance with their share.

6. At the project's closure, revenue from the sale is distributed to all NFT owners.

Use case 2: DREM pre-buys the property

1. DREM selects properties to purchase with an interesting investment vs rental payout ratio.

2. The property purchased by DREM itself.

3. A project NFT is created by DREM.

4. The project is offered to public investors.

5. Rental profit is distributed to all project NFT owners in accordance with their share.

6. At the project's closure, proceeds are proportionally distributed to all NFT owners.

Use case 3: REC recommends opportunity, REC owns the property

1. REC suggests investment opportunity.

2. Project NFT is created by DREM.

3. Project NFT is sold to small investors.

4. Property is purchased by DREM notary, owned by REC in balance sheets and property registry. DREM has the deed in the property registry and a pre-buy right.

5. Rental profit distribution is split to all Project NFT owners by their share.

6. At the project closure, profit from sale is distributed to all Project NFT owners.

Use case 4: REC issues NFT

This use case is for third party NFT issuers who seek to request help with the liquidity of their tokens and money distribution to NFT owners.

1. REC issues NFT and does the money collection.

2. Project is in live phase, rental income is distributed to the DREM Project buffer.

3. Liquidity is ensured by the market liquidity rules and open marketplace.

4. At the project closure, REC splits profit from sale to NFT owners.

Use case 5: Debt financing - Fixed interest

1. REC suggests investment opportunity with fixed interest.

2. Project NFT is created by DREM. Agreement is signed between DREM and REC to ensure processes if there are any missed payments from REC.

3. Project NFT is sold to small investors.

4. Interest distribution is split to all Project NFT owners according to their share. Because the price changes, the interest rate is subject to change. The exact IRR is re-calculated from the daily payouts and the current price.

Use case 6: Social value NFT

1. DREM issues social value NFT for money collection for areas affected by floods, volcanoes, hurricanes, tornadoes, etc.

2. NFT is issued by DREM.

3. NFT buyers collect funds.

4. There is no rental profit from these type of projects. Immutable record of an NFT purchase may be used by buyer to promote his social impact.