Caviar will issue tokens in a one-time token sale event, and will invest in fast appreciating crypto-assets and crypto-currencies, allowing investors to capitalize on the high upside of digital currency markets, while achieving diversification and profit sharing from a less volatile and more traditional income-producing short term loan portfolio secured by real estate in the United States and other countries.
For investors, this type of lending presents a unique opportunity. U.S. real estate assets are considered to be among the most stable, yet currently available investment vehicles such as REITs are expensive to set up and maintain, have a high minimum investment threshold, and provide slow or no liquidity. Furthermore, buying, improving and selling real estate assets is a very lucrative business. In 2013, according to USA Today3 , an American newspaper, investors bought and sold over 158,000 properties, for an average profit of over $58,000. In some states, profits exceeded $100,000 per project. Given the average time it takes to buy, improve and sell a property is six months, and investors can undertake multiple projects simultaneously, investors can earn hundreds of thousands or millions of dollars per year.
The rise of blockchain markets produced a number of funds that invest in cryptocurrencies and assets. Some of these funds offer their investors profit-sharing options and promise diversification by keeping a portion of their assets in Bitcoins. However, in highly volatile crypto-markets, monthly or quarterly profits are not guaranteed. Although Bitcoin is arguably the least volatile and most liquid crypto-currency today, it is still part of the same asset class and is prone to volatility. Caviar provides investors with an opportunity to diversify their portfolios beyond cryptocurrencies and tokens via the fund’s exposure to lower-risk real estate markets. Caviar is in a unique position to be able to shift funds from crypto-markets to real estate and vice versa in order to modify allocation, maximize returns and minimize risk. Caviar’s business model takes a more balanced approach to investing through a combination of fast-appreciating crypto-assets and stable income-producing real estate. This is a proven systematic method for achieving growth and income via dual market exposure in a single token.
Dual purpose with strong upside
We diversify crypto-currencies and crypto-assets with income producing real estate loans, resulting in a risk-sensitive portfolio
Downside protection backed by stable assets
In case of a bear market in real estate or crypto, we can shift investments to maximize upside
Our token holders receive 75% of quarterly profits via smart contract
Stronger predictive power and more effective asset allocation
A proprietary Intelligent Predictive Model for Crypto Asset and Crypto Currency price forecasting backed by real data science
Transactions and investments are visible on blockchain Strong historical performance 5 years of previous real estate loan investment experience
Years of fixed income, equity, debt, crypto-markets and academic experience
Low minimum entry compared to traditional funds
No minimum investment during the crowd sale
Token value growth
20% of profits are reinvested Liquidity Capital set-aside quarterly to buy back and burn tokens to provide liquidity
Caviar is fully compliant under international KYC/AML rules
AUDIT AND SECURITY
Caviar will utilize CAView, a proprietary set of monitoring tools that allows investors to verify funds’ activities including loan payments, trading histories, balance, etc. It guarantees full transparency and honest and anonymous profit sharing and distribution. Caviar will use the highest security standards, including multi-signature hardware, cold storage and secure wallets. The fund will also undergo an accounting audit post token sale, by KPMG or a similar reputable firm.
Caviar intends to comply with all applicable regulations before, during and after the token sale. All applicable laws as well as KYC/AML will be applied.
COMPANY HISTORY AND PROFILE
Caviar is the successor to Caviar Capital LP, a real estate debt fund operating since 2013. Over the past five years, Caviar Capital successfully financed over 20 redevelopment projects. With a 0% default rate, 0 late payments and an average IRR (internal rate of return) of 16% per annum, Caviar Capital provides its clients and investors a stable, income-producing and dependable vehicle for financing and investments. Since its inception, Caviar Capital has consistently outperformed S&P 500 Real Estate1 and S&P 500 Bond2 indices by over 300%
WHAT IS PRIVATE REAL ESTATE LENDING?
A private real estate loan is a broad term that generally describes a short-term loan made at a higher interest rate. It provides real estate developers with what is sometimes known as bridge financing. This type of financing helps close the gap between the date when money is needed and the date when either long-term funding or a buyer for that investment becomes available.
WHY USE PRIVATE REAL ESTATE DEBT?
The reality of this type of loan is that it is often the best financing option when a bank loan is not available. These types of loans are secured by personal guarantees and real estate as collateral.
THE BENEFITS OF PRIVATE REAL ESTATE LENDING ARE:
Fast access to capital for borrowers • Higher LTV • Construction financing
Traditionally, if an investor wanted to invest in real estate, they had two options: either purchase the real estate directly, or invest in a REIT (Real Estate Investment Trust). However, both of these options have a number of downsides. The first option, buying real estate directly, is a cumbersome and protracted process, requiring specialized expertise, time, and an established ecosystem of service providers. The second option might seem more attractive, until a deeper look reveals REITs often have high investment minimums and long periods of illiquidity. Most importantly, the returns on these investments have been poor according to The Wall Street Journal4 . It has become clear that traditional funds such as REITs are inferior in key areas where Caviar’s tokenized approach excels. According to Professor Stephen McKeon from the University of Oregon5 , tokenizing traditional investment funds solves many challenges.It lowers the cost of fund management, lowers the administrative costs of friction for investors to enter the fund, and removes the “illiquidity barrier” that keeps investors’ equity locked up for years. All of these factors elevate the real returns from Caviar’s real estate investments and allow Caviar to capture additional “alpha”.
|Goal Raise Amount||$25 million|
|Token Type||ERC20, Ethereum Blockchain|
|Maximum token supply||375,000,000|
|Price per token||$0.10|