Frequently Asked Questions
PROPERTY MANAGEMENT
How do I know each property is being kept up?
Zack Dane is our CEO and head of Revolve real estate operations. His years of property management experience has created an acute understanding of the process.
SECONDARY MARKET
How can I pay for my fractional ownership: Cash or Crypto?
Our easy to use digital marketplace is the perfect thing for our customers to do. In many cases, there will be people from around the world making offers on your pieces.
✓ Easy to Use
✓ Purchase With Cash or Crypto
Have more questions?
Questions like: How do I buy real estate from Revolve?
Our pieces of property are for sale exclusively on our fractional marketplace. Onboarding is as simple as creating a login and completing a KYC (know your customer) verification. Step by step guides help users through the process and offer tips and educational resources. Our user interface is straightforward. Unlike stacks of mortgage docs, it’s simple.
How do I buy real estate from Revolve?
Our pieces of property are for sale exclusively on our fractional marketplace. Onboarding is as simple as creating a login and completing a KYC (know your customer) verification. Step by step guides help users through the process and offer tips and educational resources. Our user interface is straightforward. Unlike stacks of mortgage docs, it’s simple.
How do I sell the real estate I own?
One great feature of an NFT supported by blockchain is that self custodial ownership offers liquidity through secondary market sales. Without the lockups of REIG/REITs, your ownership is available to sell as needed. Through cutting edge technology, our marketplace offers peer to peer trading. Solid price floors are built from the historical stability of real estate markets.
What is a NFT?
A Non-Fungible Token is a verification of ownership, through a digital record on a blockchain ledger. NFTs utilize computer programs acting as automated smart contracts. Contracts are executed only once all conditions of the deal are met – funds from one wallet arrive in another for the completion of a purchase. Once minted, they are permanent public records. True to their name, each is unique, verifiable, and non-fungible.
How are profits paid out to members?
All profits remaining after costs are deposited directly to token holders at the end of each month. Funds are distributed to owners at a specified time on the final day of the month. This alleviates accounting burdens for partial month payments. Our payday is always the same day.
Who manages the properties?
The responsibility of management falls on the managing member of the DAO. It is highly advised that a managing member uses a professional management service, like Revolve, to oversee the operations of the property. It is also highly advised that members do their due diligence before electing a new managing member.
What is a DAO LLC?
Decentralized Autonomous Organization Limited Liability Company is a business designation set forth by the state of Wyoming. It exists on top of current LLC laws and regulations. This distinction allows ownership by managing members acting as a DAO. This provides companies owned by token holders the ability and responsibility to vote on the direction of the company. By regulation, 51% of members are required to actively vote on at least one or more provisions within a 12-month period to maintain DAO status.
What does Member Managed stand for?
Member Managed or Managing Member designation exists within the DAO LLC framework. Each DAO LLC is structured with a managing member who is required to uphold fiduciary duties on behalf of the members. This ensures legal compliance and transparency, as each LLC has a responsible representative.
What financial responsibilities do managing members have?
The managing member has fiduciary duties to members of the DAO. Honesty, transparency, and accountability are required in all business dealings. Managing members are financially responsible if something happens to the home (i.e. property is damaged and the MM did not upkeep the insurance policy), if members are not paid out, or if members feel they have been wronged by the managing member.
How are the properties selected?
Properties are purchased based on selection factors including cap rate, neighborhood, school ratings, and the likelihood and cost of future repairs. Experienced and licensed real estate agents use metrics to weed through the market. Revolve only acquires properties we believe will bring consistent returns, require relatively minimal upkeep, and provide residents a quality home that makes their lease renewal an easy decision.
What happens when a managing member is voted out?
When a manager is voted out, a predetermined incumbent takes their place, by majority vote. A transfer of authority occurs and the keys are, literally and figuratively, handed off to the elected MM. Record of new leadership is filed with the secretary of state.
How is property ownership recorded in the real world?
Property ownership is recorded with the county assessor’s office, legally documented like all standard real estate transaction. The property is titled under the DAO LLC (typically using the address as the LLC’s name “123 Main LLC”) the same way a real world investor would title an income generating property. All legal records are available to all tokenholders at any time.
How are repairs and upgrades decided and executed?
An escrow account exists for minor repairs. With major repairs and upgrades which exceed authority limits given to the management company (typically $500), a vote occurs between members of the DAO. If the majority votes for the upgrade, it’s done. If not, it isn’t. If a repair is required to maintain habitability for tenants, as required by lease agreements, legal obligation takes precedence over voting.
Who pays for upgrades or repairs which exceed escrow?
Revolve offers loans to DAOs to cover repairs of this nature, repaid through rental income. Dividends resume once loan repayment is fulfilled. Appreciation from repairs will be factored into future BPOs. This is an important question when deciding on replacing the MM. If a MM hires a company or decides to manage it themselves and does not have the funds to cover an upgrade, they can be in legal trouble for not complying with the DAO’s vote. Externally managed properties are encouraged to maintain sizable escrow accounts for unexpected events.
If there is a major repair, will I still get a monthly payout?
Most likely not. If the cost of property maintenance or repairs exceeds the monthly rent for any given month, all proceeds, after management deductions, go towards paying off any outstanding cost. Fulfilling debt obligations first helps a property return to profitability as quickly as possible by minimizing interest paid. Repairs often add valid to a home. This is accounted for.
Still have more questions?