Construction Investment is a feature on Binaryx Platform that allows you to invest in real estate at the construction phase.
Investing in properties at the construction stage can bring significantly higher returns than buying an already built property. This is possible because the construction companies offer to buy properties at a large discount when investing at an early stage.
Users buy shares (tokens) in the object for any comfortable amount before or during construction. Upon completion of construction, the object will be offered for sale on the marketplace.
How construction investments work on Binaryx Platform
1. Binaryx Platform selects the construction company among real estate developers with a reliable and proven reputation in the local market.
2. Construction companies sign a partnership agreement with Binaryx Platform and are thoroughly audited.
3. The collection of investments begins. It is divided into three phases:
- Collecting the down payment to start the project,
- Collecting the remaining amount to complete the construction,
- Selling the facility and exiting the investment.
4. In the first phase, investors begin to raise a down payment by purchasing fractions of the property in the form of digital tokens. The down payment is needed for the construction company to build the property. Once the down payment is collected, Binaryx transfers the funds to the construction company.
The initial deposit must be collected within a fixed period of time — usually 30 days from the start of public sale. If funds are not collected within this time, all the money is returned to the investors.
5. In the second phase, construction of the property begins, and users can continue to invest in it by purchasing fractions (tokens).
6. In the third phase, the company completes the construction by a set deadline and the object goes into secondary for sale on marketplace at a set market price. Each investor will be offered 2 exit strategies - selling tokens at the market price or receiving rental income. If the first exit strategy is chosen, the proceeds from the sale of the object will be distributed among the holders of shares (tokens). More details on the exit strategy can be found in the corresponding section "Exit Strategy".
7. While the property is for sale, it is rented out and generates income for its investors.