8 Things Investors Need To Know About USP

United States Property Coin (USP) is one of the best ways to invest in the US real estate market, as it combines the unique features of blockchain with the attributes of regulated securities.

The current economic situation is precarious, as the Fed is forced to increase the pace of monetary tightening to contain high inflation – a difficult measure that could lead to recession. In times like this, investors should get exposure to reliable assets, and real estate has proven to be one of the best investments. It can deliver high returns in the long run, offering predictable cash flow.

United States Property Coin (USP) combines the unique features of blockchain with the attributes of regulated securities.

Here are the most important things you should know about USP before investing in it:

1. USP Is A Security Token

USP is a security token backed by an income-producing real estate portfolio. Technically, the token resides on Ethereum, but legally it acts as a security.

In finance, a security is a tradable financial asset. It is a fungible financial instrument that represents some form of financial value. Company shares, bonds, exchange-traded funds (ETFs), and options are all examples of securities.

While pure bricks and mortar are not treated as securities, many forms of financial instruments giving exposure to the real estate market are securities and thus regulated accordingly.

USP is a security token that provides investors with fractional ownership of a real estate portfolio owned by United States Property Inc. (dba. USP).

2. USP Must Comply With Federal Securities Laws & Regulations

USP is a new security token project based in the U.S. and as such, all offerings of USP must comply with federal securities laws and regulations.

In the US, securities must be registered and regulated based on the Securities Act of 1933, which has two main objectives:

  1. Require issuers to provide investors with financial or other meaningful information regarding the securities offered to the public;
  2. Ban any form of misinformation, deceit, and any fraud in the sale of securities.

The securities act was drafted and passed into law as a response to the stock market crash in 1929 and has ever since prevented countless fraudulent operations and scams.

Investors can have peace of mind knowing that, as a security, offerings of USP must comply with those same laws and regulations.

3. USP Is Not A REIT

At first glance, USP shares similarities with a real estate investment trust (REIT), and it might well do so. However, USP is different.

REITs are publicly traded companies that own or finance income-producing properties, including office buildings, apartments, hotels, shopping malls, resorts, warehouses, as well as mortgages or loans. It’s worth noting that a REIT doesn’t develop properties to resell them. It only buys and develops real estate properties as part of its own investment portfolio. In this way, individual investors have the opportunity to earn a share of the income while owning part of the portfolio without actually buying the properties.

While USP is also backed by an income-producing portfolio of properties, REITs are not regarded as competitors, as USP is a blockchain-based security token that comes with additional privileges, such as increased liquidity due to global access to U.S. real estate and the peer-to-peer nature of blockchain technology, compound returns by reinvesting earnings, and unmatched security thanks to decentralized ledger technology.

4. USP Is An Ethereum-Based Token

What makes USP distinct from regular securities is that it resides on a blockchain. Specifically, the token is hosted on Ethereum, a decentralized public network that supports so-called smart contracts and has no single point of failure. Smart contracts are self-executing programs that settle when certain predetermined conditions are met, which enable the creation of independent tokens and other applications on a blockchain.

USP leverages the ERC 1400 standard, which is a token standard on Ethereum that was created by Polymath to meet the specific needs of security tokens, which relate to compliance, documentation, controls and permissions, etc.

5. USP Has Inherent Value

Unlike regular cryptocurrencies and utility tokens, which have a volatile price and whose value derives from demand that can fluctuate significantly by the minute, USP has inherent value as it’s backed by a real estate portfolio. Even though USP is similar to other tokens from a technical perspective, it acts as a security in legal terms. Therefore, it has value in itself as it provides holders with ownership rights over its property portfolio.

USP’s status and approach enable it to reduce potential volatility to a minimum while simultaneously generating passive income in the form of additional USP tokens for qualified investors.

6. USP Is Backed By A Real Estate Portfolio

USP is a type of security token referred to as an asset-backed token, and it is backed by an income-producing real estate portfolio. It focuses on core and core-plus multifamily properties in key growth markets. The seed asset is a $10 million multifamily home located in Venice Beach, California.

USP is sticking to a strict acquisition strategy. Specifically, it buys Core and Core+ properties that can generate income and increase in value over time. The team focuses on stability rather than speculative growth. In this way, token holders can rest assured that their investments are being put to work in the most effective way.

Token holders become fractional owners of USP’s real-world, income-producing real estate portfolio.

7. USP Could Provide Yield And Act As A Hedge Against Inflation

Inflation in most developed economies is getting out of control, and there are few assets that can both provide stability and act as a hedge against accelerated money devaluation. The unprecedented stimulus measures implemented by central banks, including the US Federal Reserve, have supported economic growth amid the pandemic but also triggered massive inflation. With the US consumer prices index (CPI) at over 8% in annual terms as of October 2022, the Fed is forced to tighten its monetary policy, but that might still not be enough to contain the inflationary pressure.

While economists and politicians are debating the best way to bring down prices while avoiding recession, investors need exposure to reliable assets, and USP is positioned to become one of those assets as it leverages the blockchain features while being backed by a well-balanced, income-producing real estate portfolio that can hedge against inflation due to the underlying real estate portfolio it represents.

8. USP Represents A Passive Income Opportunity

USP’s foundation in distributed ledger technology allows investors to receive the financial gains of being a landlord, without the stress of managing the property themselves.

Investing in USP means you are a fractional share holder of a corporation (United States Property Inc.) that owns and manages an income-producing real estate portfolio. All rental income + property value appreciation (to the extent realized) would be reflected by the net asset value of the company’s real estate portfolio, which represents the book value of USP tokens.

Conclusion…

USP is about to revolutionize the real estate industry by enabling investors to get exposure to an income-producing property portfolio on the blockchain. Token holders can become owners of a piece of a well-diversified portfolio of commercial real estate assets including multifamily housing complexes, healthcare facilities, and hospitality properties.

By leveraging blockchain features, including security, transparency, liquidity, and fractional ownership, USP merges innovation with a proven successful business model.

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Necessary Disclosures
Informational Purposes for Discussion Only

This general analysis is for general informational purposes only and does not constitute a prospectus, an offer document, an offer of securities, a solicitation for investment, or any offer to sell any product, item, or asset (whether digital or otherwise). The information set out in this general analysis is for community discussion only and is not legally binding.

No Responsibility or Obligation Regarding the Provision or Maintenance of Information

USP and its affiliated persons and their respective shareholders, members, officers, directors, managers, employees, counsel, advisors, consultants, and agents (“Representatives”) reserve the right, in their sole and absolute discretion with or without notice, to alter any and all of the information of this general analysis.

You acknowledge that: (1) the information contained in this general analysis is subject to change without notice, and no one shall assume from the lack of any updates to this general analysis that the contents of this general analysis have not changed since the date of this general analysis; (2) this general analysis could become outdated due to changing circumstances; and (3) USP or any of its Representatives does not hereby obligate itself in any manner to periodically or otherwise to update the information in this general analysis or to maintain the availability of any information in this general analysis.

No Advice

Nothing in this general analysis constitutes business, finance, legal, or tax advice. You agree to consult professional advisers before engaging in any activity related to the information provided in this general analysis.

Not an Offer for Any Securities or Investment

This general analysis does not constitute an offer of securities, a prospectus, an offer document, or solicitation for an investment of any kind. Information contained in this general analysis is not an offer to sell securities or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

You acknowledge that: (1) this general analysis and the information shown herein is not an offering of any securities nor a solicitation of an offer to buy any securities and (2) this general analysis and the information herein shall not be construed as any description of the business of USP or any of its Representatives in conjunction with any offering of securities.

Nothing Legally Binding

This general analysis does not constitute or imply a contract or an offer to enter into a contract. This general analysis is provided solely for informational purposes only and does not constitute any binding commitment by USP or any of its Representatives. No person is bound to enter into any contract or binding legal commitment in relation to anything in this general analysis.

No Liability, No Representation and Warranty Regarding Information

Neither USP or nor any of its Representatives shall be held liable for any use of or reliance on the information described and/or contained on this general analysis. USP and its Representatives do not and do not purport to make, and hereby disclaims, all representations, warranties or undertaking to any entity or person (including without limitation warranties as to the accuracy, completeness, timeliness, or reliability of the contents of this general analysis, or any other materials published by USP or its Representatives). To the maximum extent permitted by law, USP and its Representatives shall not be liable for any indirect, indirect, special, exemplary, incidental, consequential, or other damages or losses of any kind, however caused and on any theory of liability, whether in contract, strict liability, or tort (including, without limitation, any liability arising from default or gross negligence on the part of any of them, or any loss of revenue, income or profits, and loss of use or data) arising in any way from the reading of this general analysis, including but not limited to the reliance upon or the use of the general analysis (including, without limitation, inaccurate information, errors, omissions, outdated data, etc.) or otherwise arising in connection with the same.

No person has been authorized by USP or any of its Representatives to give any information or make any representation or warranty regarding the subject matter hereof, either express or implied, and, if given or made in this general analysis, in other materials or verbally, such information, representation or warranty cannot and should not be relied upon nor is any representation or warranty made as to the accuracy, content, suitability or completeness of the information, analysis or conclusions or any information furnished in connection herewith contained in this general analysis and it is not to be relied upon as a substitute for independent review of the underlying documents, available due diligence information and such other information as you may deem appropriate or prudent to review. USP and its Representatives expressly disclaim any and all liability for express or implied representations or warranties that may be contained in, or for omissions from or inaccuracies in, this general analysis or any other oral or written communication transmitted or made available to you.

Any historical information or information based on past performance included herein is for informational purposes only and has inherent limitations and is not intended to be a representation, warranty, or guarantee of future performance. Projected performance data shown constitutes “forward-looking information” which is based on numerous assumptions and is speculative in nature. Actual results may vary significantly from the values and rates of return projected herein.

Your Responsibility to Verify Information

You will have the sole responsibility for verifying the accuracy of all information furnished in this general analysis. There shall be no recourse against USP and its Representatives in the event of any errors or omissions in the information furnished, the methodology used, the calculations of values or conclusions.

No Affiliation

USP or its Representatives does not imply any affiliation with, or endorsement by, any third party. Such references in this general analysis are for illustrative purposes only.

Regulatory Approval

No regulatory authority has examined or approved, whether formally or informally, of any of the information set out in this general analysis. No such action or assurance has been or will be taken under the laws, regulatory requirements, or rules of any jurisdiction.

Legal Compliance

You will and shall at your own expense ensure compliance with all laws, regulatory requirements and restrictions applicable to you.

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Requirements for listing a property:

Property Type

Property Type: Must be either rental housing, or commercial real estate (multifamily, student housing, coliving, etc). We do not list single family rental properties.

Location:

Location: Property must be in a high-demand urban area.

Market Analysis

Market Analysis: Demonstrated investment potential.

Minimum Valuation

Minimum Valuation: Property must meet our minimum valuation standard of $3M.

Leverage

Leverage: No more than 70% leverage will be accepted.

No Legal Disputes

No Legal Disputes: Free from legal disputes or encumbrances.

Maintenance Standards

Maintenance Standards: Well-maintained with certain aesthetic and functional standards.

Financial Records

Financial Records: Detailed financial records for the past years.

Environmental Compliance

Environmental Compliance: Meeting local environmental regulations.

Safety Inspections

Safety Inspections: Up-to-date safety inspection reports.

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We are committed to transparency with our community, and our USP Token Buyback Guarantee is designed to help you have faith in your investment.

Your trust is paramount to us. We stand ready as your safety net, committed to buying back any USP Tokens issued by us at the original price the tokens were issued at. For more information, reference page 26 of our whitepaper.