Prime-Ex is a decentralized platform designed to take control and change today’s inefficient real estate process from the start till the end for the better.
The platform’s main goal is to create an environment where properties are built, sold, and financed within a single, fair ecosystem. This is a massive change to the current real estate industry as new solutions are brought into an area with many issues in recent years.
Prime-Ex achieves this objective by controlling the whole process from start to end which includes the sales, construction, financing, and even the maintenance responsibilities of homes under the platform.
Prime-Ex brings a paradigm shift to the existing real estate ecosystem (which is laden with problems) by fundamentally changing how residential real estate are developed, sold, and financed.
How does this change actually happen?
As mentioned earlier, Prime-Ex maintains efficiency by managing the real estate process as a whole which results in higher profits; these profits are then distributed fairly to PEX (the platform’s official cryptocurrency) token holders which increases the inherent value of the tokens. Aside from token holders, users also enjoy the benefit of better buyer financing arrangements. This is extremely important as it solves the problem of residential buyers today where buying a house is more often a stressful experience rather than a memorable one.
This positive experience can be delivered to the average buyer as Prime- Ex minimizes (and overcomes them outright) inefficiencies in the traditional system such expensive collection costs and legal disputes that take longer than actually buying the house. PEX token holders are rewarded even more as Prime-Ex provides flexible borrower financing terms to users who use PEX tokens to pay for mortgages instead of fiat.
To put the cherry on top, PEX transactions are further incentivized with a mortgage rate discount.
What Problems Does Prime-Ex Seek To Solve?
Prime-Ex seeks to solve several inherent problems in the real estate industry, particularly the ones that are major pains in Panama. The common problem, however, is that the team feels there is a lack of cohesion and mutual understanding between parties involved in the industry.
In today’s real estate industry, properties are developed starting from the developers themselves; these developers build properties by first finding cheap land, developing that land, and selling the assets for at least double the original price.
Once a land is sold, landowners are out of the equation and they don’t play a part anymore in future processes. Home builders who buy these land then cut corners by cheapening out on essential materials in an effort to reduce costs throughout the building process. As a homeowner, you would not feel confident living in a house where materials are less sturdy or secure than it should just because a party wants to save money. This situation is even worse in Panama to the point where home buyers should feel fortunate if they can find a 2-year warranty on a new property; most homes, however, have a warranty period less than that.
After all of that is done, banks play the final and most important role—providing financing to the landowner, home builder, as well as the buyer. Like all loans, there is a collateral which is the property itself in this case. Having such a valuable collateral means that the bank gets a zero-risk investment at the expense of three different parties which brings three different channels of profit to the bank in the real estate process.
Prime-Ex identifies a major flaw in this system: everyone loses except the bank. This leads to more expensive land, lower quality houses built, as well as unsatisfactory living (and financial) conditions for the homeowners.
With the blockchain, Prime-Ex believes that they can change the situation for the better and provide an alternative that is equally fair to parties involved.
Here is what customers and users can expect when they use the Prime-Ex platform:
- Easy selection of properties
- Building the property itself
- Flexible and easy borrower financing
- Maintenance on the platform.
As proof that their concept will work, Prime-Ex is launching an initiative in Panama.
Prime-Ex will be primarily targeting expats from North America and European countries who want to build properties and live in Panama, a country often deemed as a retirement haven thanks to its wonderful views and breezy lifestyle.
They do this by providing extremely simple real estate purchase solutions to these expats who are currently living in Panama or are looking to move there but with one caveat: they need to possess significant proven assets after an initial down payment or deposit.
Why Panama, anyways?
Panamanian homebuilders have always faced entry barriers and challenges related to home financing in Panama—a low-hanging fruit that Prime-Ex wants to capitalize on.
Their objective is to build, market, sell, and finance a sizable portion of houses within the vicinity of Panama City which will earn the platform a significant ROI, hence benefiting investors.
Prime-Ex’s elegant solution elegantly minimizes the bureaucracy involved with providing home financing while at the same time, provide security measures to minimize homeowners’ risks as much as possible to maximize future profits.
Prime-Ex will use funds raised from the token sale to run the business’ operation while fairly distributing up to 80% of real estate profits to token holders annually.
Tokens are also used to reward mortgage applicants by granting discounts to buyers who pay for mortgages in PEX tokens.
Here are the details of the upcoming PEX token sale:
Token name: PEX
Token base: Ethereum (ERC-20)
Token supply: 30,000,000
Token sale duration: 15th November, 2017 – 30th November, 2017
Token sale target: $25,000,000 (hard cap)
Token exchange rate: $1 = 1 PEX