Does Owning USPC Make You A Landlord?
The economy is in a mess at the moment. Stocks are in free-fall, inflation, currently at 8.2%, is at 41-year highs, and the US International Investment Position for the 2nd Quarter of 2022 was negative $16.31 trillion.
As all indicators point to an incoming recession, one of the best ways to crawl through this financial sewer and emerge at the other end smelling like a rose is to find a rock-solid investment that will ride the storm—real estate.
Real estate has always been an excellent investment vehicle. A study shows that over the past 100 years, the housing market matched equity and, in some instances, surpassed it.
However, real estate has a high barrier to entry, locking out many potential investors. That’s where United States Property Coin (USPC) token comes in.
USPC is a cryptocurrency token that grants real estate entrepreneurs a stake in a diverse portfolio of American commercial real estate assets, including hotels, multifamily housing complexes, and commercial properties.
So, does that make USPC investors landlords? Keep reading, as that’s what this article seeks to find out.
What is the United States Property (USPC)
USPC coin is a form of cryptocurrency backed by real estate property in the US. Unlike other coins tethered to volatile fiat currency, USPC is backed by real estate, which enjoys a lengthy history of appreciation in value.
That makes USPC essentially an inflation-resistant medium of trade, as well as an excellent store of wealth during uncertain economic times. Moreover, real estate might increase in value over time, so your investment in USPC also grows.
Will Investing in USPC Make Me a Landlord?
Yes and no.
Technically, you will become a landlord as owning USPC makes you a fractional owner of a real estate portfolio overseen by Primior, a prominent real estate developer with over $1 billion in successful real estate development.
However, that does not literally make you a landlord, as you won’t have to conduct duties customarily associated with landlords, such as tenant management and property maintenance.
In short, you get the best of both worlds when investing with USPC: The potential upsides of owning real estate (rental income, rental appreciation, asset appreciation over time) without the drawbacks of managing a real estate portfolio.
Benefits of Investing in Real Estate Using USPC
Some of the main benefits of investing in USPC include the following:
1. Low entry point to real estate investment
USPC utilizes a fractional ownership model, which means you get to own a small piece of the pie of a real estate property. That makes it way cheaper to own a property than if you were to purchase it as a whole. The blockchain-based system secures your part ownership of the real estate asset.
2. Receive rental income and appreciation of rental income
Owning USPC means you technically become a landlord. That means you enjoy the cash flow from the rental income produced by the property you and other investors own. Further, rental income tends to appreciate over time, so you also enjoy the increased rental income.
3. Automated processing
Unlike other digital assets that require you to take some time to manage, USPC has a fully automated distribution function and governance. It means it is a set-and-forget system requiring little intervention on your part.
4. More liquid
While USPC has its backing in real estate, it is not as rigid. You can sell it much faster than real estate as it is a low-cost digital token that you can trade easily.
5. Diversified portfolio
There have been other attempts at backing crypto with real estate, but most only use a single property as their backing. Not USPC. With USPC, we securitize an entire portfolio of assets, such as commercial, hospitality, and multifamily units.
That means your token enjoys a diversity of investments, offering more predictable and stable returns.
6. Investment growth over time
The US real estate industry enjoys a long history of stability and effectively perpetual growth. Since USPC has its backing in the real estate industry, we expect that investors will enjoy the benefits of this growth.
7. More stable than stablecoins
Stablecoins were on the rise and typically pegged to fiat currencies like the US dollar. Its owners promised that they are pegged at 1:1 against the dollar. Turns out that wasn’t true.
Not so with USPC. Primior, the backer of USPC, pegs USPC on tangible real estate properties in high-demand markets across the US. Your investment should thus enjoy the stability of a relatively stable portfolio of tangible assets.
Moreover, you will receive dividends in USPC, further shielding you from the ravages of a volatile fiat currency.
8. No management of property
While you are technically a landlord when you own USPC, you are not taking control of a tangible asset. You don’t have to grapple with the hassle of tenant management or property maintenance as other landlords do.
An experienced asset management company specializing in maximizing property values manages the properties.
How USPC can Technically Make You a Landlord
When you invest in USPC, you get fractional ownership of a tangible real estate portfolio, which technically makes you a landlord. For that, you get to benefit from rental income and the stability of a real estate investment.
That said, you receive none of the drawbacks of owning real estate, such as property maintenance or management.