Greetings to our audience! Today we would like to become closer to you and share the answers to the questions that you have always wanted to ask. We can observe the work that is going on behind the scenes every day and view the future plans of the LandOrc team. By the way, they are now listed on Bitforex. Read the article till the end to find the link. Enjoy your reading!
1. What are the most essential problems that can be observed in the real estate and decentralised finance market nowadays?
The real estate industry is facing a deep liquidity crunch. In recent years banks and debt funds have reduced their exposure to real estate sectors and the pandemic has fast-forwarded the process even further. As a result of this high-interest markets are seeing liquidity up to USD 500 billion per annum. The absence of liquidity is increasing the financing cost for real estate developers and impacting their profitability.
On the other hand in the decentralised finance market, there is an increasing amount of liquidity. It is currently sized at USD 137 billion. Complex lending and other financial products are being launched and generating high interest from investors. However, the underlying assets on which these financial products are being built are digital assets and are prone to high volatility. A probable reason why only 1% of Ethereum wallets have still participated in decentralised finance activity.
2. What motivated you to start your company? Do you remember where and when you discussed the project’s foundation for the first time?
We the founders of LandOrc have come from different industry experiences — blockchain, real estate, finance, business strategy, legal…They wanted to use their collective experiences and knowledge to bridge the real estate funding with the capital available within the growing decentralised finance space. Offering collateralised lending using NFT so that decentralised finance lenders have real-world collateral on the blockchain and property developers have a lower cost of capital.
In keeping with their vision of merging the off-chain world to on-chain, the founders have named the company LandOrc, from the technology term oracles. In blockchain development, oracles bring data from off-chain to on-chain.
3. What are your long-term and short-term goals? What are you planning to achieve next year?
LandOrc is targeting to process USD 2.5 billion of lending on its platform within the first 3 years of operations. This represents only 0.5% of the total annual real estate activity in the high-interest markets, which is sized at a total of USD 500 billion per annum. In the first 12 months, it is primarily focused on Asia, Australia and parts of the U.S. Over the coming years adding opportunities in Europe and Africa. Thus enabling the scaling of the lending by Year 3 to USD 2.5illion. Based on revenue from interest arbitrage and fees on the platform that would deliver platform revenues of USD 145 million and a valuation of USD 1.1 bn based on 8x revenue multiples. This does not include the projected revenue from NFT technology licensing to Proptech players, which is estimated to generate additional revenue of USD 100 million by the 3rd year.
As a first step to the above plan, the operations of LandOrc have already been started in India, a USD 1 trillion real estate market in the making. Focussing on Tier 2 and 3 cities that are experiencing the fastest growth and offers interest opportunities up to 20% per annum. LandOrc has an operating team on the ground three projects are already available on the LandOrc platform for stacking and a pipeline of projects in place.
As a secondary market, Australia offers a real estate market size of USD 8 trillion with a healthy growth rate and a funding gap, especially for smaller developers. Australia has a low prevalence of alternative lending options and is relevant for LandOrc’s solution.
4. What’s the most important thing you’re working on right now?
LandOrc dApp and platform are already operating and you can check it out https://app.landorc.io/auth/login and an initial set of projects is lined up. LandOrc’s staking token LORC is already listed on exchanges www.coinsbit.io and www.bitforex.com allowing for greater liquidity.
Hence the focus for us in the LandOrc team currently is to scale the venture beyond the initial base. Bringing in new investors to widen the capital available, accessing new project and property developers and further engaging with Proptech players to get wider usage for the NFT technology developed. This scaling will jump-start the venture.
5. What rules or tools help you keep the momentum for the project ?
Since we are operating in the space of technology and finance, both industries with rapid pace and innovation we ensure that we have the right mindset and methodology to keep the momentum.
At LandOrc we use agile methodologies both for development and go-to-market, using test and learn projects to try out multiple alternatives to learn and scale. This fast fail approach has allowed us to learn and bring in the learnings to the project.
The teams are lean, cross-functional and nimble with a high level of autonomy to take collective decisions and move forward.
6. Take me through the skills of your top team members. What is each person best at?
The LandOrc team comes with very deep experience in the corporate sector, cumulatively we have in the team a few hundred years of corporate experience covering real estate, blockchain and information technology, finance, operations, legal, business strategy and operations
Damo our CEO has 20+ years of experience running large multinational IT companies, Murthi our CTO has personally developed multiple complex blockchain projects ground-up, Navonil our principal advisor comes with 25 years of strategy experience across technology companies, Prakash our financial advisor 30+ years of experience in multi-national real estate acquisitions, Peng Yew teaches real estate investment at Post Graduate level, Raymond has legal experiences in multiple jurisdictions, Greg has business development experience across multiple geographies and industries, Manoharan has 40+ years experience of real estate experience in India and the list goes on across the management team.
7. What’s the hardest decision you’ve made so far?
Focussing on a business opportunity that is at the intersection of two industries. The real estate industry lending space is very structured and regulated and has operated in its current form for centuries.
The decentralised finance industry is fast-paced and operating in a purely digital and decentralised world.
The toughest decision has been to marry these seemingly very different worlds.
While the use of blockchain technology has allowed bringing transparency and pace to this different world, the process of changing mindsets and getting the community from crypto and real estate industries to see the value and participate in larger numbers continue to be part of the LandOrc journey. Getting more members of the community to engage and share the project and its benefits remain an area of focus.
8. How do you see the world of real estate and decentralised finance world in next 10 years ?
In the next 10 years with the rise of blockchain and other Web 3.0 technologies, we see the real estate world to be much more transparent and dynamic. Operating in a more democratic manner allows individuals globally to participate in lending and other financing activities in a trusted and fast-paced manner. Operating in a more profitable manner based on a reduced cost of capital and making real estate more affordable to larger masses.
Decentralised finance in the next 10 years would have matured to focus on more real-world assets and realistic expectations of upsides. Offering sustainable business opportunities to investors who are in it for a longer-term perspective.
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