Supply Partners

Brokers

While many real estate blockchain companies are aiming to eliminate the need for a broker, we at RealBlocks believe that brokers add definite value to real estate transactions. Therefore, we are working ‘with’ the brokerages instead of ‘against’ them. Firstly, RealBlocks provides brokers a way to access capital on the blockchain that has previously been inaccessible. Brokers can leverage our platform to transact more deals. Already the brokerages in Texas, New York, California, and Florida have been creating an edge over their competitors by enabling cryptocurrency holders to transact. Secondly, as all the transactions on the platforms are carried out in fiat currency, the processes and workflows from the broker’s perspective remains the same. Finally, our commission structure sits on the top of the broker’s commission, thereby avoiding cutting into their margins.

REITs

Or Real Estate Investment Trusts, give individuals the ability to own shares of income producing real estate without having to purchase entire assets. RealBlocks is assisting REITs raise capital through a fund of funds approach. This will enable users to invest in micro shares of REITs resulting in lower minimums and the ability to build incredibly diversified portfolios across different geographies and asset classes. In general, publicly traded REITs can be liquidated on public exchanges, however, non-traded REITs tend to be longer term investments with limited ability to liquidate. Non-traded REIT holders will be able to take advantage of liquidating their holdings on our platform.

Family Offices

Traditionally, private placements in real estate are an illiquid market limited only to accredited investors. There are high minimum investments ranging from $50,000 to $500,000 and no secondary market to exchange interest. Family offices have the ability to raise capital on our platform through private placements for individual properties or a portfolio of properties. Owners will be able to dilute their equity stake with the optionality of selling percentages of equity. This grants owners more liquidity of their holdings to an increasing investor base of accredited and non-accredited investors (depending on the security offering) who can participate at lower minimums and exchange on a secondary market.

Online Investing / Crowdfunding Platforms

Developers typically raise capital through debt and equity markets comprising of individual(s) or investment fund(s). Raising capital from individuals can be a time consuming process and results in directing focus away from the project at hand. As a result, developers will opt to raise capital from larger investment funds as it is more timely. However, developers are then sacrificing controlling stake in the project and focus may be forced to increasing investor returns rather than original intentions. Online investing/crowdfunding platforms increase exposure for developers and allow investors to deploy capital into projects in an efficient manner. Our value adds another layer on top of this as we provide a seamless way to unlock capital they don’t traditionally have access to. On RealBlocks, developers can leverage the platform to raise capital for projects as well as dilute equity stake in properties they own and manage. These options provide developers further flexibility and increased exposure to capital.

Bringing It All Together

The United States is the most stable and secure country for real estate investment. However, a majority of the country, and world for that matter, never considers owning investment properties because of the high capital requirements. Providing lower investment minimums makes it possible for lower to middle income earners to invest in real estate at their discretion. Cryptocurrency holders are another underrepresented demographic in the real estate market. On the RealBlocks platform, these investors will be able to seamlessly buy or sell real estate by converting their crypto to USD. These features of RealBlocks provide suppliers access to the $400 B of capital on the blockchain as well as lower to middle income earners.

RealBlocks Social

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RealBlocks Supply Partners was originally published in RealBlocks Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

RealBlocks is a two-sided platform for investing and raising capital for real estate by utilizing fiat and cryptocurrencies via blockchain technology. Our platform will allow anyone in the world to instantly buy, sell or trade interest in United States Real Estate Assets. By providing access, liquidity and accountability, both real estate and cryptocurrency investors will be able to share in mutually beneficial transactions.

Linking Digital and Real Assets

The market value of cryptocurrency currently sits at $400 Billion and there are very few options for diversifying these currencies among other asset classes. As has been experienced by many people, the extreme volatility of cryptocurrencies can be nerve-racking. Diversifying your crypto portfolio among different types of cryptocurrencies (transactional coins, platform coins, stable coins, utility tokens, security tokens) or dollar cost averaging are often-exercised strategies to hedge risk. However, RealBlocks presents an innovative option that allows cryptocurrency holders to diversify into real estate — the world’s largest physical asset class.

RealBlocks is the pipeline between the vast pool of traditionally inaccessible funds on the blockchain and the real estate industry. With access to hundreds of billions of dollars of new capital, players in the real estate industry will be afforded increased opportunities to raise capital and transact with new participants. For cryptocurrency holders to transact, they will be required to convert their cryptocurrency to USD, or to receive a loan against their cryptocurrency in USD — both of which can be done on the platform. Entities raising capital will be paid in USD. This protects all parties transacting on the platform from the volatility of the cryptocurrency market.

A Marketplace Model

The platform consists of users on the supply and demand side, creating a marketplace for efficiently investing and fundraising for real estate. On the demand side are foreign and domestic real estate investors and cryptocurrency investors. On the supply side are REITs, funds, brokers, developers and family offices.

Unprecedented Liquidity

A prevalent hurdle in real estate is its illiquidity, especially among foreign investors. The traditional buying and selling process would certainly benefit from an expedited transaction timeline. RealBlocks aims to increase the liquidity of real estate by introducing tokenized investments on the platform. Tokenizing provides a way for a real estate assets to be represented in the digital world, as a token. The benefits of investing in real estate on RealBlocks include a lower barrier to entry, near instant liquidity, and the ability to create and trade fractional ownership of assets. Members can choose to buy entire assets or tokenized fractional interest in assets via REITs or private placements for lower minimums than have ever been possible — starting at just $50.

A New Age Standard for Transparency

A considerable benefit of leveraging blockchain technology is the unmatched transparency, which is ensured by the validity and traceability of the immutable ledger. RealBlocks requires a satisfactory completion of both Anti-Money Laundering (AML) and Know Your Customer (KYC) screenings before users are able to credit their wallet. This process ensures that all users are properly vetted and that we are in compliance with regulatory requirements. Another degree of transparency will be implemented through property-specific smart contracts, which will provide passive income to purchasers on a monthly basis. Smart contracts are automatically executed when specific conditions are met, further implementing autonomy, trust and accuracy.

Leveraging Blockchain Technology for Real Estate Investing

At RealBlocks, we have created a bridge between cryptocurrencies and real world assets. By leveraging the blockchain and smart-contracts, users will have the benefit of global access, improved liquidity, and a transparent process — all for minimums never possible until now. The RealBlocks platform and its tokenized system of fractional ownership has many applications. As the platform grows, RealBlocks will bring best-in-class investments from additional markets to investors — thereby extending its value proposition to other types of assets beyond real estate.

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Blockchain Based Real Estate Investing

RealBlocks was originally published in RealBlocks Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.