You Can Now Invest in Real Estate Using Bitcoin - Canadanewsmedia
Connect with us

Real Estate

You Can Now Invest in Real Estate Using Bitcoin

Published

on


LAS VEGAS–(BUSINESS WIRE)–Prime Trust, a technology-driven trust company, announced today that it
has released new technology which enables real estate syndicators and
securities issuers to accept funds from investors in the form of Bitcoin
and Ethereum, frictionlessly and with zero crypto-market risk to the
syndicator or issuer. This enables holders of these virtual currencies
to invest in real estate, crowdfunding and other private and public
securities offerings without having to go through the cumbersome and
often confusing process of liquidating tokens and then wiring funds in
USD to an escrow account at Prime Trust.

With Prime Trust’s transaction technology, real estate syndicators,
portals, platforms, brokers and direct-issuers can now accept
investments with minimal friction, regardless of whether the investor is
remitting funds to escrow via wire, ACH, check, credit card, Bitcoin or
Ethereum.

How it works: Historically in Prime Trust’s standard escrow
business for the securities and real estate industries, funds could be
remitted via ACH, wire, check or credit card. The firm’s transaction
technology presents the investor with funds delivery instructions
specific to the method they chose to send funds. Bitcoin and Ethereum
work the same way. Prime Trust’s systems present BTC/ETH delivery
instructions, including a unique wallet address and QR code for the
specific transaction (see attached example photo).

Using these straightforward instructions, the investor can easily and
securely complete the transaction. Prime Trust’s platform keeps the
syndicator or issuer informed by updating the accounting records for the
offering to note the investor’s funds have been received, including the
net amount, and automatically sends email notifications (customizable by
the issuer) to the investor.

“Demand for people to be able to use digital currency as a method of
remitting funds for investments they make in real estate, as well as
traditional Reg D, Reg A, Reg S, and Reg CF offerings has been
dramatic,” said Scott Purcell, CEO of Prime Trust. “After years of
leading the crowdfunding and real estate industries with
technology-driven escrow, compliance, KYC, AML and other services,
adding Bitcoin and Ethereum is a natural extension of what we provide
our portal, broker, real estate syndicator, adviser and direct-issuer
customers.”

The technology is now out of beta and released for select Prime Trust
customers. It is available both via API’s and via the Prime Trust
“Invest Now” plug & play transaction engine. It is highly scalable and
can be used for both initial (primary) offerings, as well as for escrow
and clearance of secondary transactions by exchanges.

More information about Prime Trust’s products and solutions is available
at www.primetrust.com.

About Prime Trust

Prime Trust is a chartered Nevada trust company that as a Qualified
Custodian provides custody of cash, tokens (aka “coins”), stocks, bonds,
private business interests and other assets. It also provides compliance
and specialized services relating to funds processing, AML/KYC
compliance, and transaction technology for the new digital economy. As a
blockchain-driven trust company, its mission is to provide portals,
platforms, brokers, real estate syndicators and direct-issuers with
best-in-class solutions to seamlessly meet the needs of their securities
offerings and of exchanges and secondary markets. As a trust company,
Prime Trust provides a wide array of account types, including simple
custody, IRA’s, asset protection trusts, health savings accounts and
college savings solutions, all of which are designed to hold any asset
class.

Let’s block ads! (Why?)



Source link

Continue Reading

Real Estate

Second mortgage brokerage firm tied to real estate developer Fortress Real Developments shuts down

Published

on

By


A second mortgage brokerage firm that raised money to finance projects for Fortress Real Developments Inc. has closed its doors, marking another setback for the troubled real estate developer.

FDS Broker Services Inc. filed for bankruptcy effective Sept. 17, according to licensing information filed with the Financial Services Commission of Ontario, the province’s mortgage industry regulator.

FDS, initially known as Fortress Distribution Services Inc., was owned by its chief executive Zafar Khawaja, a licensed mortgage broker. Mr. Khawaja could not be reached for comment on Monday and FDS’s main phone number went straight to voicemail.

Story continues below advertisement

Mississauga-based FDS was one of three brokerage firms that were dedicated to raising syndicated mortgage funds from investors to provide loans to real estate developers for new projects being co-ordinated by Fortress, a real estate consulting firm based in Richmond Hill, north of Toronto.

Another of the three firms, FMP Mortgage Investments Inc., told clients in April it was surrendering its mortgage brokerage licence and suspending business operations. A third firm, FFM Capital Inc., is still in business.

Fortress raised a total of $920-million from investors between 2009 and 2017 to help finance new real estate developments, including many condominium construction projects.

Much of the financing was arranged by mortgage brokers at FDS, FMP Mortgage and FFM Capital. In 2016 alone, FDS raised $67-million from 1,174 syndicated mortgage investors, according to regulatory filings.

FDS reported having 102 brokers and agents as of Dec. 31, 2016, including 23 who worked full-time, according to its filings with FSCO. The firm’s bankruptcy filing lists liabilities of $550,453 and assets of $16,000 as of Sept. 12.

Many of the Fortress development projects financed by syndicated investors have faced long delays and investors have not been repaid their principal or accrued interest payments, spurring many complaints to regulators.

The RCMP searched Fortress’s head office location in April, and also executed search warrants at the offices of FDS, FMP Mortgage and FFM Capital. The search warrant application said the force is investigating alleged syndicated mortgage fraud. No charges have been laid.

Story continues below advertisement

Story continues below advertisement

FDS, FMP Mortgage and FFM Capital were founded between 2011 and 2013 by former employees of mortgage brokerage firm Building & Development Mortgages Canada Inc. (BDMC), which was based at Fortress’s head office location and co-ordinated all syndicated mortgage financing for the real estate projects. An affidavit filed in court by FSCO in April said BDMC’s owner directed employees to leave and set up the companies to “provide some degree of separation” between the brokers helping investors lend money for Fortress projects, and BDMC, which represented Fortress and the project borrowers.

FSCO reached a settlement agreement in March with the four brokerages following an investigation into syndicated mortgage investments. Under the voluntary settlement, FDS, FMP Mortgage and FFM Capital agreed to pay $235,000 each and BDMC agreed to pay $400,000. The principal brokers for FDS, FMP Mortgage and FFM Capital had their mortgage broker licences revoked, while the owner and principal broker for BDMC agreed to surrender her licence.

Since March, senior lenders on many Fortress projects have filed court applications to take control of the projects because the loans are in default. Among the development projects in Ontario that are under the control of a receiver are Fortress Brookdale and Harmony Village Sheppard in Toronto; Union Waterfront in Port Dalhousie; and Glens of Halton Hills.

Let’s block ads! (Why?)



Source link

Continue Reading

Real Estate

Longtime real estate figure Marshall Bennett dies

Published

on

By


Marshall Bennett, an industry godfather to many of Chicago’s commercial real estate moguls and a pioneer of the modern industrial park, died yesterday of natural causes at his Gold Coast home, according to his daughter Bija. He was 97.

Bennett teamed with Louis Kahnweiler in 1946 and with financial backing from Jay Pritzker launched Centex Industrial Park in the 1950s on 2,250 acres in Elk Grove Village west of O’Hare International Airport. They went on to amass a portfolio of 26 industrial parks around the country, many with airport-side locations that capitalized on the postwar boom in air freight.

“He had the biggest Rolodex of anybody in the industry, and they would be glad to talk to him. Nobody would say no to Marshall,” says Gerald Fogelson, a co-developer of the South Loop residential project Central Station and a benefactor of the Marshall Bennett Institute of Real Estate at Roosevelt University.

Bennett helped raise $11 million to start the school in 2002 as a training ground for real estate professionals. It has graduated about 325 in two master’s degree programs before beginning a bachelor’s program this fall. “He continued to weigh in and check in until a couple of months ago,” says executive director Collette English Dixon.

Bennett and Kahnweiler split in 1982 on good terms, he told Crain’s last year following Kahnweiler’s death at 97. “I wanted to do different things,” he said, and those things included diversifying into office brokerage and property management, pension fund advising and syndication.

Goldie Wolfe Miller credits Bennett as being the catalyst for her leaving Rubloff after 20 years to start a real estate brokerage firm in the late 1980s.
 
“He said, ‘Why work for somebody else when you can do it for yourself?’ ” Though Bennett backed her financially, she says, “It wasn’t the money. It was he was there, saying it was the right thing to do.”

On a ski lift at Sun Valley in the 1960s, Bennett had a chance encounter with Steve Wynn, the future casino mogul, and learned they were neighbors at the Idaho resort. According to Bija Bennett, the friendship proved fateful a decade later when Bennett suffered a head injury in a kayaking accident and later was evacuated in a Wynn jet for treatment in Evanston.

“Steve Wynn saved my dad’s life, in my opinion,” she says. Bennett and his wife, Arlene, helped endow a chair in brain surgery at NorthShore Evanston Hospital.

Bennett was born in Hyde Park, grew up in South Shore and graduated in 1941 from the University of Chicago. During World War II he captained a U.S. Navy submarine chaser in the Aleutian Islands.

Another Bennett cause was international relations. He joined the board of the East-West Institute and co-founded the Chicago Ten, a group of Chicago-area Christian, Jewish and Muslim leaders promoting economic-based efforts for Middle East peace. 

Services are set for 2 p.m. tomorrow at Congregation Solel in Highland Park.

This story has been updated to correct information pertaining to the degree programs at the Marshall Bennett Institute of Real Estate at Roosevelt University.

Let’s block ads! (Why?)



Source link

Continue Reading

Real Estate

Vancouver leads Canada's first home sales decline in five months

Published

on

By


While home sales dropped in Vancouver in September, they rose eight per cent in the Fraser Valley.

Canadian home sales declined for the first time in five months as activity in Vancouver and Toronto weakened.

Sales in Vancouver fell by 1.5 per cent in September and benchmark prices declined 1.2 per cent, the Canadian Real Estate Association said Monday. In Toronto, the nation’s biggest city, sales fell 0.5 per cent and benchmark prices rose 0.1 per cent.

Activity across the country fell by 0.4 percent, bringing the 12-month decline to 8.9 percent, according to the Ottawa-based realtor group. Sales fell in about half of the country’s real estate markets, with buyers and sellers still being influenced by rising mortgage rates and tougher qualification rules introduced at the start of the year, CREA President Barb Sukkau said.

Some markets nonetheless saw sales increase in September, including an eight per cent rise in the Fraser Valley.

CREA president Barb Sukkau says rising mortgage rates and the new mortgage stress test will continue to influence the balance between supply and demand with most markets expected to “become even more restrictive” in the months to come.

The group’s chief economist Gregory Klump adds that time will tell how these factors will play out for certain cities.

“In markets with an abundant supply of homes and slower sales activity, buyers have the upper hand when it comes to negotiations over price,” he said in a statement.

“However, in places where buyers are keen to make a purchase but there’s a shortage of homes for sale, sellers are in the driver’s seat when it comes to price. It will be interesting to see how supply and demand respond to rising interest rates amid this year’s new mortgage stress-test.”

The new mortgage stress test came into effect in January, adding downward pressure on property values that were still adjusting to other newly introduced measures such as a 15 per cent foreign buyer tax in Ontario.

TD Economics says the report points to a more “moderate pace” for the Canadian housing market in the coming quarters.

“This is consistent with our forecast calling for resale activity to rise at a more moderate pace in coming quarters, as increasing borrowing costs and stretched affordability conditions in key markets keep a lid on demand,” bank economist Rishi Sondhi said in a note.

The association says the national average price for a home sold in September was just under $487,000, up 0.2 per cent compared with a year ago.

Excluding the Greater Toronto Area and Greater Vancouver Area, the average price was just over $383,000.

Related

Let’s block ads! (Why?)



Source link

Continue Reading

Trending

Copyright © 2018 Canada News Media

%d bloggers like this: