(REVADD), a real estate investment crowdfunding service based on the Real Estate Specified Joint Enterprise Act (hereinafter referred to as the "Non-specialized Act"), has launched a dedicated website and started accepting applications for its first project.

REVADD" stands for Real Estate Value ADD, which means adding new value to real estate.

■Participation Features

• 1.Disclose all processes from property selection, acquisition, operation and management, to disposition
  Disclosure of all processes allows the entire investment process to be reviewed.
• Disclose all cash flows, including revenues and expenses
  The cash flow can be determined as if you had purchased the property yourself.
• 3. Disclose all progress of the project, including the status of renovations
  Through photos and videos, you can experience how a property is transformed with added value.
• 4. Property tours are available
  As Japan's first participatory crowdfunding program, we will guide visitors to the site if they wish to tour the property.
• 5. Bulletin board for members.
  Exchange of opinions on renovation proposals and naming rights for new properties proposed by the Company is possible.
• 6. Granting preferential negotiating rights for real estate
  After the fund is redeemed, the right to purchase a property selected by a real estate appraiser will be granted to the REVADD® member with the largest investment. They can acquire a property of their choice while participating in crowdfunding. The first fund will create opportunities for purchase by granting negotiation rights to preferentially purchase the target properties of the first fund in order of the amount of preferential investment from January to May 2011. If there is no purchaser, we will aim to sell the property on the market.
  
  

■Why do we start real estate crowdfunding with a participatory approach?

We view the real estate investment industry to date as follows
＜The real estate investment industry to date

• Many companies in the real estate investment industry are still focused on pursuing their own profits.
• There have been cases in which real estate appraisers intentionally prepare high appraisal reports, solicit investors to invest based on these reports, and then sell the properties at high prices to gain unfair profits.
• There are real estate companies that I don't trust, and even if I wanted to invest in real estate, I can't.
• Real estate crowdfunding firms have avoided dialogue with investors, preferring quiet investors. They have also withheld information that was unfavorable to them.
• Until now, crowdfunding has only been a one-way service: once you invest in a project, all you have to do is wait for distributions and fund redemptions (i.e., maturity of the fund).
• In addition, in order to attract customers, some real estate crowdfunding companies use Amazon gift certificates to attract attention, dare to claim high yields, and then sell investment condominiums and other properties to make a profit on investment condominiums.

In this industry, we aim to create a participatory crowdfunding system that allows investors to make their own decisions and voice their opinions on real estate renovations.

■Future Prospects

Of the ¥2,100 trillion in personal financial assets, cash and deposits remain approximately ¥1,100 trillion. The government, at its "Conference on Realizing New Capitalism," has decided on a plan to double asset income and nurture start-ups (emerging companies). We, REVADD®, together with our members, experienced real estate investors and those who are just starting to invest in real estate, will contribute to increasing financial asset income through crowdfunding.

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