After spending a weekend in Batumi I decided to take a closer look at the booming, but somehow stagnating Batumi real estate market.
At the start, I couldn't believe that there are real estate offers starting $750 per square meter. Now I have a feeling if I would look more carefully, and bargain a bit I could get something even for $500 in the new development projects.
After contacting a few real estate developers in Batumi I was getting quite interested in buying an apartment under construction to sell once finished.
Here I made a YouTube video: Invest in Batumi real estate in Georgia?
I got a few offers, from several companies, and I focused on a small studio 26.6 m2 apartment with a price of $680/m2, with a downpayment of 30% and the rest in 24 months.
The total cost would be $18,088 once finished. For me, it doesn't seem much for an apartment, yes small, but an apartment in a seaside resort. And I believe I could sell it at $25,000 - $30,000 if there are buyers, or in the worst case to let it out. The only problem - there are zillions of such projects in Batumi and seems there are no buyers. the other question we should ask - will there be buyers in 2 years? 3 years or 5 years?
I believe, there will. As I have some interest in Batumi Real estate development I decided to crowdfund or buy together one such small unit with co-investors, and now looking for business partners/investors.
I'm looking to issue a crypto token, most likely on the Ethereum network - issuing 100 new coins, with a set value of $200 per coin. Total supply of 100 coins, a total value of $20,000. Each coin represents 1% property rights of the apartment. Investors who will buy at least 20 coins ($4,000) will have a chance to register their share of the property in their names.
If we will be able to collect for the downpayment until June 1st, 2022 - we will proceed with making a contract with the developer. If we won't be able to collect for the downpayment - funds will be released and returned to investors.
To keep up skin in the game - I will invest 20% myself and will have 20 coins.
Bounty program available - bring a friend who will invest at least 20 Coins and you will get one coin - or buy yourself 20, pay for 19
Also for the early sale - offering a 10% discount for investors who will invest in at least 5 coins (if you are buying at least 20 coins you will pay for 19 + will have a 10% discount)
We will be able to realize our profit after the project will be finished when selling the apartment. The planned term: end of 2023
In case we are selling at $25,000 - the value of one coin will be $250, in case we are selling at $30,000 value of one coin will be $300. In case we don't find a buyer, I will personally buyback 2 coins per month starting January 2024 for a set price $210
My aim with this offer is not to make a quick buck, but to make connections with like-minded investors, realize this project on smart-contract and if successful, grow this into something much bigger than just one apartment in Batumi
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