📘 Understanding SecondaryDAO Property Metrics: A Complete Guide

Last updated: July 11, 2025

📌 Overview

SecondaryDAO’s financial model is built on a simple but rigorous principle: real estate tokenization is based on actual acquisition cost plus all setup and reserve expenses, not just the seller’s asking price or estimated valuation. Each metric displayed in the dashboard reflects real-world underwriting, enabling investors to evaluate offerings with confidence.

Token supply is determined by this formula:
Total Capitalization (acquisition + reserves + setup) ÷ Token Price

For example, the following costs are typically included:

• Seller’s Proposed Asking Price – $50,000

• SD Listing Fee – $3,500

• Vacancy Reserve (2%) – $1,000

• Initial Maintenance Reserve (5%) – $2,500

• LLC Setup Fee – $600

• Appraisal and/or Inspection – $600

Total Investment Raise: $58,200
Token Price: $50
Total Token Supply: 1,164 tokens

Every financial and yield metric on the platform flows from this foundation.

🏗️ Property Lifecycle & Data Evolution

Phase 1: Pre-Launch
The property record is initialized with basic metadata (name, address, type, image). Metrics will display as “Not Set.”
Badge: NEW PROPERTY

Phase 2: Simulated Metrics
Data is imported from underwriting spreadsheets. The platform calculates token supply, CoC%, yields, and IRR based on defined costs.
Badge: USING ESTIMATES

Phase 3: Smart Contract Deployment
Tokens are minted based on fixed supply. Escrow is created.
Badge: READY TO LAUNCH

Phase 4: Active Trading
Tokens become tradable on the secondary market. Real rent collection and distributions begin.
Badge: TRADING ACTIVE

📊 Core Financial Metrics

Token Price
Typically set at $50, this represents the base unit value used to derive token supply from the total capital stack. It may remain fixed or adjust in future offerings.

Token Supply
Calculated from total acquisition + reserve + setup costs, not valuation.

Formula:
Token Supply = (Acquisition + Setup + Reserves) ÷ Token Price

Example – 123 MainST17050

• Asking Price: $50,000

• SD Listing Fee: $3,500

• Vacancy Reserve: $1,000

• Maintenance Reserve: $2,500

• LLC Setup Fee: $600

• Appraisal/Inspection: $600

• Total Raise: $58,200

• Token Price: $50

• Token Supply: 1,164 tokens

Market Capitalization
Token Price × Token Supply
Example: $50 × 1,164 = $58,200

Net Asset Value (NAV)
Reflects current or projected appraised value. NAV can diverge from market cap when token price is based on cost rather than market valuation.

📈 Yield & Return Metrics

Cash-on-Cash Return (CoC%)
Measures net income return on total raised capital.

Formula:
CoC% = (Annual Net Cash Flow ÷ Total Investment Raise) × 100
Example: $12,102 ÷ $58,200 = 20.79%

Gross Rental Yield
Represents rent relative to property value.

Formula:
(Annual Gross Rent ÷ Property Price) × 100
Example: $18,000 ÷ $50,000 = 36.0%

Token Yield
Reflects what tokenholders receive annually relative to their $50 token.

Formula:
(Annual Distribution ÷ Token Price) × 100
Example: $10/year ÷ $50 = 20%

Projected Internal Rate of Return (IRR)
Incorporates rental income, appreciation, and exit assumptions. Example: If $121,020 is the modeled sale price after 5 years, the implied IRR is ~10%.

🏷️ Badge System

Badge Condition Meaning NEW PROPERTY Data score < 3/5 Only basic details entered USING ESTIMATES Mock data imported Simulated metrics visible READY TO LAUNCH Token supply set, escrow ready Smart contracts deployed TRADING ACTIVE Trading live Market activity and price visibility RENTAL INCOME Rent collected and distributed Real returns flowing to tokenholders

📊 Data Source Integrity

Data Type Source Accuracy Update Frequency Property Info Admin input High As needed Token Economics Derived from cost structure High At listing Pre-Launch Financials Spreadsheet import Moderate Pre-listing Rental Income Property managers High Monthly Trading Data Blockchain Immutable Real-time

🎯 How to Interpret the Metrics

For Pre-Launch Properties
Metrics such as CoC%, IRR, and token yield are derived from pro forma projections based on hard costs and expected income. These are useful for modeling investor returns but not guarantees.

For Active Properties
Metrics reflect actual operating performance. Rental income and tokenholder distributions update monthly. Token prices may adjust based on supply/demand in secondary markets.

⚠️ Red Flags to Watch For

• “Calculating…” remains unresolved → Data may be missing

• Unrealistically high returns → Check expense/reserve inputs

• NAV differs sharply from market cap → Token price may need review

• No rental income on active listing → Possible vacancy or reporting lag

🧠 Investment Decision Support

Compare Properties Intelligently

• Favor high data quality scores (3–5)

• Ensure reserve and setup costs are clearly defined

• Match CoC% and IRR with your investment goals

• Consider diversification by asset type and geography

Understand Risk Profiles
Lower Risk:

• Documented reserves

• Strong rental history

• Multi-unit or diversified tenant base

• Conservative leverage

Higher Risk:

• No reserves included

• Speculative IRR assumptions

• Single-tenant properties

• High reliance on appreciation to justify returns

🔄 Transparency & Update Frequency

Metric Type Frequency Token Trading Data Real-time Rental Income Monthly Property Valuation Quarterly/Annual Mock Data Updates On-demand

All changes are logged, versioned, and transparently disclosed to stakeholders.

📞 Support Channels

• General Info: SecondaryDAO Help Center

• Property Questions: Assigned property manager via support chat

• Metric Inaccuracies: Email [email protected]

• Investment Advice: Consult a licensed financial advisor (SecondaryDAO does not provide financial advice)

🚨 Reporting Issues

To report data issues:

1. Screenshot the page or error

2. Identify the property and metric

3. Submit via chat or email
   Guaranteed response within 24 hours

📌 Final Note

All SecondaryDAO property metrics begin with real-world, line-item costs—not hypothetical values. By tokenizing the actual acquisition, reserve, and onboarding expenses, investors receive a more accurate, cost-based stake in each asset. Use these metrics as tools to assess risk, measure performance, and make smarter real estate investment decisions.

Disclaimer: This guide is informational and does not constitute investment advice. Always review our Risk Disclosures and consult qualified professionals before investing.