RealBlocks Supply Partners

Roderick Gill
RealBlocks Blog
Published in
4 min readMay 23, 2018

RealBlocks is a blockchain-based real estate marketplace for parties to raise and invest capital. Our focus is on providing quality inventory and intriguing opportunities for the investors on our platform. This inventory will come from our partners — brokers, REITs, family offices, and crowdfunding platforms. Whether these inventory partners are looking to increase property exposure, access capital on the blockchain, dilute their stake in a property or portfolio, or raise money for a property or project, RealBlocks is able to deliver value for all of the above participants. By lowering minimums to invest and enabling cryptocurrency holders to convert to USD and transact on our platform, we are significantly expanding the accessible pool of capital.

Supply Partners

RealBlocks 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.

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