Photo - Jointer.io
40070

Jointer.io

Safe alternative to CRE syndication and investment

USA, California
Market: Financial services, Blockchain, Crypto currency, Artificial Intelligence
Stage of the project: Prototype or product is ready

Date of last change: 07/18/2019
Min investment
$  500.000
Total required
$ 10.000.000
Rating
equalizer 246 из 1000
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Idea

Where most solutions tokenize individual assets, presenting scalability issues, limited liquidity, and unnecessary risks for investors, Jointer democratizes Commercial Real Estate tokenization by making investing simple for all. With a single check, Jointer creates a Joint Venture partnership with property owners as the Master LP investor, which removes the need for syndication. On the other side, Jointer allows the general public to become sub LP investors by buying Jointer tokens that are pegged with leverage to the Global All REIT Index.

Current Status

Jointer is currently holding the Pre-Auction round

Market

Global Commercial
Real Estate Market
Global
Average
Debt by LTV
Total Addressable Market
(Available equity)
$33.3 Trillion USD
Source: Commercial Real Estate Lending Trends 2017,
National Association of Realtors
58%
Source:
Savills World Research, Dec. 2017
$13.98 Trillion USD
Amount of global locked equity

Problem or Opportunity

Current Tokenization Solutions
When developing Jointer, current tokenization solutions were investigated to determine their viability and benefits, yet highlight where they fall short and how Jointer brings true solutions to very old and painful problems.

There is a public misconception that tokenization as a concept can help syndicate funds to purchase new assets or to unlock equity by selling a fraction of ownership or an income stream to the crowd. Even though many tokenization companies have raised tens of millions of dollars, none are feasible syndication solutions for properties not currently owned by the issuer. Regulation restricts future owners from offering equity in an asset they do not yet own. (Unless the future owner is also acting as a licensed Broker-Dealer offering other people’s security.). This means current tokenization solutions cannot solve the syndication problem like Jointer does and therefore, do not constitute direct competition to Jointer. Furthermore, it is accurate to say that there is a possibility that Jointer will partner in the future with those tokenization solutions offering to their clients the complementary solution they need.

In spite of all these shortcomings, tokenization solutions can allow existing owners to tokenize existing equity or income streams, yet sourcing investment through syndication still falls solely on the owner. This means to syndicate a property using current tokenization models, the same costly practice of marketing and soliciting to many investors must occur in addition to any fees due to the tokenization company.

The Jointer model offers existing owners a true solution, providing an end-to-end service for free, with one check at zero effort.

Furthermore, Jointer believes there is no logic for existing property owners to use tokenization as a syndication solution for re-cap investment because when owners see the risks and costs associated with tokenization, they may lose incentive to use the concept.

Also Jointer believes that current tokenization solutions expose investors to risk of fraud and loss of funds. Here are examples of weak spots that current tokenization models cannot overcome:

Vulnerable to scams
Owners may scam investors by offering tokens for properties they do not own.
False claims
Owners of properties may make false claims about property’s financial status and/or value.
Over-leveraged
Owners may scam investors by selling them tokens for properties with no equity available.
Limited transparency
Owners could take advantage of unsophisticated investors who are unaware of how to properly underwrite a property. An example of this would be if an owner misrepresented a property by selling tokens representing a $10MM value when the property is only worth $5MM.
Must trust dividend distribution
Owners may not honor dividend distributions, a situation which leaves investors with no recourse.
No Principal
Owners may sell 100% of their equity in the property and leave it without any principal in place.
Risk disclosure
Investors could be misled through non-disclosure of the risks of a distressed or completely vacant property, which is also a property not generating income.
Conflict of interest
Owners naturally have a conflict of interest with investors and may benefit from misleading them.
Limited liquidity
Investors may have an issue with liquidity because there is no guarantee that secondary marketplace exchanges will welcome every token. For example, they may only support tokens with high daily trading volumes.
Restrictive selling
One of the biggest hindrances for owners who wish to tokenize their properties is the inability to sell a percentage to more than 100 investors (or shareholders) unless: 1) they are qualified purchasers; or, 2) the owners turn their property into a public company; or 3) the company is registered with the SEC under a Reg A+ exemption. All these factors are necessary to address, as well as costly and time-intensive.

Until these issues are addressed, the Commercial Real Estate industry cannot scale using tokenization solutions and investors risk exposure to fraud and scams.

Solution (product or service)

After taking into account all of the serious issues associated with current tokenization solutions, Jointer’s approach provides a true alternative to Commercial Real Estate syndication, even for re-cap investment. Jointer provides property owners one check to buy available equity or to cover the needed down payment. On the other side, Jointer allows investors to minimize their risk by receiving cross-collateral and returns based on 2X leverage pegged to the proven Dow Jones Sel ect All REIT Index.

The Jointer Tokenization approach levels the playing field in the Commercial Real Estate industry by offering investors from all walks of life the opportunity to participate in the commercial market without the barriers or risks associated with the current tokenization models and traditional solutions, mentioned above.

Jointer presents investors instant diversification while improving their returns and minimizing risk. Investors who invest through JNTR/x tokens benefit fr om an investment vehicle that is pegged to the diversified Global Select REIT Index with 2X the leverage and are backed by cross-collateral.

Jointer’s diversification means there is zero exposure to any one specific property risk. Investment distributions and returns are managed by a smart contract, which ensures full transparency and a trustless process. Income and investment streams serve as cross collateral and the index performance is based on fully-disclosed public information.

Furthermore, JNTR/x is an intangible asset, carrying capital gains tax benefits. This means unlike with REITs, JNTR/x investors do no need to pay income tax on their profits. Investors will only pay capital gains taxes based on the country they associate with. In some countries, investor’s JNTR/x underlying profits may end up with zero taxes.

In addition, Jointer acts as a market maker with a buyback program as JNTR/x tokens are redeemable to Jointer for a fixed value of $1 per token plus the percentage increase of 2X leverage on the Dow Jones Global Select All REIT Index. The Jointer tokenization solutions offer investors the liquidity, security, and transparency that Jointer believes no other model can offer in the Commercial Real Estate marketplace.

Competitors

A comparison chart is located at jointer.io

Advantages or differentiators

Current tokenization solutions cannot solve the syndication problem like Jointer does and therefore, do not constitute direct competition to Jointer. Furthermore, it is accurate to say that there is a possibility that Jointer will partner in the future with those tokenization solutions offering to their clients the complementary solution they need.

Finance

JNTR is a utility token that serves as a bridge to transfer of value between JNTR/x and the cryptocurrency market. (1 ETH : 10,000 JNTR)

JNTR/x is a SAFE Note that is pegged with 2X leverage on the Global Select REIT Index aiming to provide ~20% returns a year. ($1 USD)

JNTR/e is preferred stock in Jointer, gaining value as the company grows. ($100)

Business model

How Jointer Earns Value
Jointer as a company has a few ways of sourcing income.
Management fee
Jointer receives 2% of JNTR tokens as management fee on top of the ongoing daily token supply.

Example
If day X has supply of 10,000,000 JNTR the smart contract will mint total of 10,204,081 JNTR tokens, 10,000,000 will go to contributors and 204,081 JNTR will go to Jointer

* Since Jointer invests 100% of the daily contribution in commercial real estate, the management fee is needed to maintain the day to day operational costs. Jointer maintains the right to adjust to management fee if needed. Jointer will be transparent with the community about this change if it will take place.

Unclaimed JNTR/e Bonus

Everyday that Jointer is fundraising, any uncollected JNTR/e bonus increases the value of JNTR/e by increasing the overall wallet value and not minting the allocating JNTR/e.

Example
https://www.dropbox.com/s/8ofgdxa8b3kfm95/JNTR-e%20Valuation.xlsm?dl=0

Carry
Jointer earns a carry by subtracting 10% from Investor’s index returns.

Example
If the index performs at 10% a year after 2x leverage, the investor would make 20% and minus Jointer’s 10% carry, the net profit for investors is 18%
Property Investment
Jointer earns dual profits on the property appreciation plus retains the down payment investment (the principal). On top of appreciation, Jointer will also benefit monthly from the income streams those properties generate. Income streams from properties will be converted to stablecoins.


JNTR Token Purchase
Jointer uses 10% from the daily contribution to purchase JNTR tokens from the reserve buyback program. When JNTR’s face value increases it will empower Jointer’s value as well.

Money will be spent on

The proceeds that are received during the Jointer Auction set up a robust ecosystem to benefit Jointer investors. Jointer puts 100% of the invested dollars to work through Commercial Real Estate investment and the liquidity reserve.
90% Commercial Real Estate Property Investment
Jointer invests in thoroughly underwritten deals that meet a stringent standard
10% Liquidity Reserve
Jointer distributes funds directly to the reserve powered by Bancor to support redemption

Offer for investor

Early adopters will have the chance to earn JNTR and JNTR/e tokens up to a 6X value before the Auction begins.
Value
The JNTR baseline value starts at 1ETH : 10,000

JNTR & JNTR/e Bonus Structure

Investment
Bonus
$1 - $50,000
2X
100% JNTR (50% discount)
$50,001-$1,000,000
4X
200% JNTR + 200% JNTR/e (74.36% discount)
$1,000,001 - 5,000,000
5X
300% JNTR + 200% JNTR/e (79.08% discount)
$5,000,001 - $10,000,000
6X
400% JNTR + 200% JNTR/e (equal to 81.45% discount)

Example: an investment of $10M will be eligible for $34,000,000 JNTR + $19,900,000 JNTR/e equal to total of $53,900,000
For the first $50,000: $100,000 of JNTR
For the next $950,000: $1,900,000 of JNTR + $1,900,000 of JNTR/e
For the next $4,000,000: $12,000,000 of JNTR + $8,000,000 of JNTR/e
For the next $5,000,000: $20,000,000 of JNTR + $5,000,000 of JNTR/e

Downside Protection During Auction
Jointer is presenting investors downside protection on their investments during the Auction.

90% of the investment along with the JNTR tokens will be locked on a smart contract
After one year, 90% of the investment will automatically return to the investor and the tokens will return to the company
At any time before the year ends, if the investor is satisfied with Jointer’s performance and the tokens’ market value, the investor has the option to cancel the insurance and the tokens will release to the investor.
During the pre-Auction the Downside Protection will start from 80% form $500K and 90% for $1M and above,the investment minimum to qualify for Downside Protection during the Pre-Auction is $500,000

Become a Jointer Venture Partner
Investors with a $500K+ investment will be eligible to act as Jointer’s partner and solo manage one of Jointer’s funds that equals 2X their investment. The Fund Manager can choose the properties for Jointer to invest in as long they met Jointer’s investment criteria.

Team or Management

Risks

Risk Factors
As with any digital/cryptocurrency, purchasing Jointer tokens involves a high degree of risk. Those who cannot risk losing their entire purchase should not buy these tokens.
The ability to transfer the coins is subject to a secondary market for digital securities functioning. If there is no secondary market in which to sell the coins, investors could be left holding them in perpetuity.
The tokens have no voting rights or ability to direct the company or its actions.
Government changes to the current regulations or tax code changes could impact our results. It’s also possible that regulators from the jurisdictions in which a purchaser of Jointer tokens reside may—after the purchase of the coins—conduct investigations and take regulatory action. Additionally, it could become prohibited for the secondary market to sell or purchase Jointer tokens.
Residents of certain jurisdictions may not be permitted to purchase cryptocurrencies or digital tokens. In some cases, even participating in a purchase may be illegal in certain jurisdictions. New or revised legislation, regulations, guidelines, and directives may be introduced, which may affect the Jointer marketplace or other platforms in which the Jointer token is used.
There is always the possibility that our burn rate will increase to support changes and operating costs, so we may run out of capital before reaching the next significant milestone. This could change our plans and force us to earmark more funds to fill the gaps.
When deciding whether or not to purchase Jointer tokens, you must rely on your own examination of the issuer and the terms of the offering, including the merits and risks involved. The Jointer tokens have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon any information regarding the accuracy or adequacy of this document.
The U.S. Securities and Exchange Commission does not decide on the merits of any securities offered or the terms of the offering. Nor does it make a decision on the accuracy or completeness of any offering document or literature.
Jointer tokens are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

Incubation/Acceleration programs accomplishment

Comeback Capital VC Event Participant

Won the competition and other awards

EDGE196 Competition Winner

Photos

Photo 1 - Jointer.io
Photo 2 - Jointer.io

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address