So let's just say I own a strip mall in Denver Colorado that I purchased for $4 million into 2008. Now it's 2017 in that strip mall is completely full of stores has great cash flow and a lot of national brands like King supers, Subway, Applebee's, cost cutters, and other retailers.
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The commercial real estate value would value that same strip mall in 2017 at $12 million. So using your system I could borrow against the $8 million of equity and not have to pay interest?
Well, if you tokenize let's say 50% of your asset in 2007 - it is valued at 4mln$. 50% is 2mln$. You put that on our platform with a 10-year set buy back. Investors buy your tokens and you sell 50% of your asset getting 2mln$ cash.
10 years go by it's 2017. Now you have to buy back you asset. After valuation it is concluded that your asset costs 12mln$. And you need to buy back 50% of that. That is 6 mln$. You will need to pay that amount to buy back your asset.
There is no interest inolved only the change in market price.