The CO-OP Environment

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2022-11-17 03:18

The CO-OP Environment

How much do I need to invest?

  • P&Z CO-OP fractionalizes each property into $50 tokens, making the minimum investment $50.
  • P&Z CO-OP limits single investor purchases to 15% of any individual property
    • This encourages diversification ensuring that investors are not simply tied to one property
    • Keeping any one member of the investment club from being the majority member and ensuring the democratic governance of each property

How Does the P&Z Marketplace work?

  • P&Z is a space created for small investors to join Real Estate CO-OPs. Each CO-OP is organized as an LLC created to purchase a single property for the purpose of renting.
  • P&Z does not have a fund, does not purchase properties, does not flip properties, and does not sell properties.
  • The P&Z CO-OP environment consists of buyers and sellers.
    • P&Z finds and vets sellers in 2 ways
      • We find and contract with local builders who build quality single and multi-family homes to rent
      • Our team researches and finds existing homes and contracts with the owners to list their home in the P&Z marketplace
  • P&Z CO-OP step by step process
    • The seller submits their property to be sold in the P&Z CO-OP environment.
    • P&Z confirms that the property is suitable for the CO-OP investors.
    • Once approved, the property is put into contract by a newly formed LLC, the LLC is tokenized into $50 tokens on the Polygon (MATIC) blockchain.
    • A property inspection is completed to confirm the quality of the property. If repair or punch-list items need to be completed, the seller completes the tasks before closing or provides credit to the LLC.
    • The property is listed in the P&Z CO-OP Environment. When the property is fully funded the LLC closes on the property and the deed is transferred to the CO-OPs LLC.

How do I purchase Tokens? – Complete this section once the Demo is up and the tutorials are completed

  • You purchase tokens by utilizing our easy to navigate website
  • Here is some information…
  • For more information visit our tutorial page (link)

How many tokens can I purchase in each property?

  • Each owner can purchase up to 15% of the tokens in a property. The percentage is limited for governance purposes, to decrease single party control, and ensure a fair voting process.

Can non-US Residents Participate?

  • Yes, non-US residents can participate
  • Citizens of a sanctioned country will not be able to purchase tokens on the P&Z Investments platform due to restrictions by the Office of Foreign Assets Control.
  • Sanctioned countries include Balkans, Belarus, Burma, Côte D’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe.

Do I have to submit my ID before I can participate?

  • Yes, US law requires us to Know Your Customer (KYC) on every investor before they are allowed to purchase tokens.
  • Although you may be anonymous to the rest of your CO-OP and your tenants, we must know who you are for the purposes of
    • Preparing the proper LLC reporting documents
    • Ensuring any revenue generated by your account is sent to the right place.
  • We use Blockpass to perform all ID verification

Why do I need to fill in personal information, and is it encrypted?

  • Since you are part of a real estate owning CO-OP formed as an LLC, we are required by US law and regulation to collect your name, address, date of birth, citizenship, and Social Security number to create your account.
  • All personal data is secured on our website with SSL.
  • Personal data is stored on encrypted non-public storage
  • All personal information collected is for legal and regulatory purposes only.

Why is my ID verification taking so long?

  • We use Blockpass to perform identity verification
  • US Citizens will easily be able to use their Driver’s License or other government issued ID
  • non-US citizens will use their proper legal ID

Do you have 2 Factor Authentication (2FA) available?

  • For security purposes P&Z requires 2 Factor Authentication (2FA).
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