Frequently Asked Questions

Is Whimsy offering securities?

Yes, the fractionalized shares are considered securities. This is why we are officially registering with the SEC and reporting order and asset data to the FINRA agency.

Do I need to provide "Know Your Customer" (KYC) personal information to purchase on Whimsy?

Yes, KYC is a requirement as we are recognized as a fully regulated entity with both the U.S. SEC and FINRA. The process will be similar to opening an account on a stock exchange platform.

How are property prices determined?

Part of our list of broker partners we are pulling data from historical real estate analytic API solutions such as ZillowGroup, MLS Router, Walk Score, Census, Google Maps and many more. As part of the data ZillowGroup and MLS Router provide market evaluations that are recalculated monthly.

I live outside the USA, can I still invest in real estate even though I am foreign?

Yes, as long as you have a valid Passport. Both US and Non-US residents can participate.

Who can't access or invest on the platform?

If you are from a sanctioned country, you will not be able to purchase tokens due to restrictions by the Office of Foreign Assets Control (OFAC) which reflects our AML policy. Sanctioned countries include Balkans, Belarus, Burma, Côte D’Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Russia, Sudan, Syria, and Zimbabwe.

How do taxes work?

Individuals: You will receive a 1099 tax form that aggregates all of your rental income, capital gains/losses, and staking income across all the different properties your've purchased in.

Business Partnership: Corporate entities (property holding companies) must produce a 1065 Form and submit it to the U.S. Internal Revenue Service (IRS), but is not sent to other countries or international agencies.

Non-US Residents: If you are located outside the US, you will be subjected to withholding taxes when you try to sell your tokens for a gain or withdraw your rental income. Some countries have Tax treaties with the USA, so if your country has one and you don’t want to pay withholding taxes, you will need to complete a Form W-8BEN, for individuals, and Form W-8BEN-E, if you invested as a business entity, and send the document to support.

This process is only available for foreign entities or individuals who have a SSN or ITIN within the USA. If you do not possess one of these numbers, you will have to be subjected to foreign withholding taxes.

How do I divest my tokens?

1. Every 6 years an asset under management will get a market review. The review will take into consideration what the property is generating yearly in rental income and comparing this to appreciation potential if sold. The great that appreciation the more likely a sale would occur. Other factors like location, rental rates, state of the economy, etc will also be part of the decision making for these assets. If a decision to sell is made then an exchange of funds for your shares will be completed after the close of sale.

2. Whimsy is seeking legal registration as an ATS. Once this is secured Whimsy will offer a secondary market where investors can buy/sell amongst each other from within the Whimsy platform.