marsrobertson
commented
4 years ago Berkshire Hathaway can issue 0% bond: https://www.sec.gov/Archives/edgar/data/1067983/000119312520064645/d853116d424b5.htm
I'm thinking about the 1️⃣ land ownership company to issue 2% bond for 100 years.
(money will be earned through charging rent to building owner company)
Assuming $1m island sale price (round number), someone who will invest $1m will receive $20k annually.
Realistically, this is low yield. The stock market on average returns more. In the current economic situation, impossible to predict the consequences of quantitative easing. We cannot compete with the stock market or cryptocurrencies when it comes to ROI, instead we can offer stability and predictability.
If you are a person who has experience issuing corporate bonds and structuring deals - please let us know.
Corporate bond
https://www.investopedia.com/articles/investing/062813/why-companies-issue-bonds.asp
The interest rate that companies pay bond investors is usually less than the interest rate available from banks.
One of the more interesting options companies have is whether to offer bonds backed by assets. These bonds give investors the right to claim a company’s underlying assets if the company defaults.
Four entities
1️⃣ Land ownership 2️⃣ Building ownership
If all the buildings are portable, they can be moved to another location, company that owns the land is a different company that owns the buildings.
3️⃣ Maintenance / repairs / cooking / cleaning 4️⃣4️⃣4️⃣4️⃣ Operating companies
Events, seminars, conferences, activities, day to day customer service. There will be multiple operating companies from all over the place.
I can totally imagine one of the companies to be totally officially the DAO. Members doing presale in ETH and once the activation threshold is reached, the smart contract will do the booking.
Rationale
Someone prefers "boring and stable" land ownership business. Absolutely zero excitement here. Charging the ground rent to the company that owns the buildings.
Someone is into the construction business:
Me - the person - I'll probably have shares in all the companies - see also #11 the personal incentives to avoid conflict of interest.