BlockEstate is a tokenized real estate fund using predictive analytics to drive returns for investors.
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To maximize the market’s potential you need to understand things as broad as migration patterns, changing demographics, economic trends, and even the impact of climate change. Its less about finding a single good deal and more about positioning yourself ahead of where the market is going. That’s where BlockEstate comes in. We’re leveraging predictive analytics and big data to model and identify upcoming market hot spots and mega-trends. We are providing investors access to the real estate market through tokenized equity in the BlockEstate holding company, and our investors will be rewarded through our “buyback & burn” program.
We’re partnering with experts in big data and analytics to create a high performing real estate portfolio.
We’re partnering with Polymath & CoinList’s ComplyAPI to issue one of the first ST-20 regulatory compliant security tokens.
As a ST-20 token, Blockestate will have first mover advantage with any number of the upcoming security token exchanges.
Our model progressively reduces the total token supply, increasing each token’s percent stake of the market cap.
As an asset class, U.S. real estate is significantly larger than stocks, bonds and other forms of securitized debt. It has enjoyed a stable annual average increase since the 1960’s. Just like gold, silver, and other limited supply assets, real estate has historically performed as an excellent hedge to inflation. As inflation inevitably affects fiat currencies, property typically reflects the changes in the value of these currencies very quickly. Even at its baseline, real estate represents a smart investment.
*Bloomberg, NCREIF and NAREIT 20 Years Ended December 2016
Commercial real estate at its baseline has a strong year-to-year rate of return relative to other asset classes. BlockEstate is looking to outperform the market.
% Annual Income Return
*Bloomberg, NCREIF and NAREIT. Direct commercial real estate is represented by the NCREIF Open-End Diversified Core (ODCE) Index, an equal weighted, time weighted index representing a blended portfolio of institutional-quality real estate reported net of management and advisory fees (with the exception the direct commercial real estate income data shown, which is reported gross of management and advisory fees). Real estate return data should not be used to estimate the return of BlockEstate investments.
Many of the best real estate properties are never actually sold to the public. These off-market deals are only available to individuals well connected to the real estate industry, and BlockEstate fully intends on utilizing the unique market relationships that its incredibly well connected advisory board and team have access to.
Some private funds charge their asset management fee based on the total assets held, not the net total assets held. This can result in a conflict of interest to incentivize the manager to be highly leveraged to earn a higher fee. Our fee will not increase, regardless of leverage, which positively shapes our motivations.
Traditionally, the fund manager charges a 1.5-2% fee to cover the costs related to the acquisition and disposition of a property. BlockEstate will instead utilize its real estate network to source properties, bypassing these additional fees.
Most real estate fund managers have an arrangement that, after investors recoup their initial investment, the fund manager is able to participate in the income and capital gains of the fund, typically at ~20% of its yearly profits. BlockEstate will only have a 10% stake in the company, and will not share unfairly in the profits.
Administrative fees of .1%-.2% are common. We have kept our structure simple and transparent, without hidden fees.
BlockEstate tokens represent a proportional share of the BlockEstate Alpha Fund. Tokens will be issued as a Polymath based ST-20 (Security Token) built on the Ethereum network, which will be sold to investors during BlockEstate’s token sale event. 90% of the funds raised will go to acquire U.S. real estate properties that will generate income streams. The remaining 10% will be allocated and held for fund administration, management, legal, and advisor fees.
The overall goal of the fund is to produce maximum annual returns on assets under management. Once a quarter, BlockEstate will use, on average, 50-100% of those net profits to repurchase tokens from the token holders on the open market at NAV (Net Asset Value) through our buyback program. Each token bought this way will be “burned” and permanently removed from circulation. This method will reward investors, reduce the total token supply, and increase each remaining token’s percentage share of the market cap. BlockEstate will use the remaining net profits to strategically re-invest into additional properties, with the goal of increasing the fund’s overall profitability.
Minimum Raise: $5 Million
Target Raise: $50 Million
Check back soon for more pre-sale details.
Post offering, BlockEstate will generate a 10% token performance allocation stake. These tokens will be unissued and locked until the team hits its performance goal.
90% Real Estate Property Acquisition
5% Legal and Advisor Fees
5% Administration and Management
As a sign of its commitment to investors, the BlockEstate team’s 10% token allocation will be contingently locked. These tokens will be released to the team only after the fund achieves a “high-water mark” of a 20% increase in value based on opening NAV (after the funding round closes and initial fees and costs are cleared), and only after an 24 month minimum from the time asset purchases begin. BlockEstate will always put the investors first before any team disbursement of tokens are made.
Security Token Offerings will revolutionize the traditional finance world through Tokenized Securities. Security Tokens are digital assets subject to federal security regulations. In layman terms, they are the intersection of digital assets (tokens) with traditional financial products — a new technology improving old things. If cryptocurrencies like Bitcoin are considered “programmable money” then you can consider Security Tokens a version of “programmable ownership.” This means that any asset with ownership can and will be tokenized (public & private equities, debt, real estate, etc).
Many fees associated with financial transactions are due to middlemen. Security tokens bypass much of this, reducing fees.
Security tokens enable immediate settlement on trading exchanges, allowing investors to act quickly and efficiently.
Most investment transactions lack exposure to a global investor base, but with security tokens you’ll have worldwide access 24/7.
Chief Advisor | Market Connection
• VP of Biltmore Farms
• Manages $125 million in assets, with $50 million per year in revenue
• Serves on the Board of Directors for the Asheville-Buncombe County Economic Development Coalition, and previously as President of Asheville Board of Realtors
• 30+ years experience in real estate development and marketing
Property Development | Real Estate Acquisition
• President & CEO of Pulliam Properties
• Has managed over $500 million in property development
• 30+ years experience in real estate brokerage, development and management
Senior Management | Leadership
• CEO of Dream Think Imagine
• Former COO of MPG Futures and Commodities Group
• 20 years experience in C-level positions, compliance, portfolio management, and contract negotiations
Industry Connections | Real Estate Acquisition
• Private wealth manager, who helps oversee over $20 million worth of assets
• 12+ years experience in residential & commercial real estate
• Masters and undergraduate degrees in leadership and construction engineering and management
• Extensive leadership experience, coordinating multiple teams across the country
• 10+ years experience in executive leadership
Market Research | Real Estate Consultant
• Member of one of the highest performing real estate groups in North Carolina, which sold over $60 million worth of real estate last year alone
• 10+ years experience in residential and commercial real estate
Solution Architect | Blockchain Advisor
• President of SolutionBase & ESZPlay
• Early adopter and advocate of crypto, with deep connections in the space
• Critial advisor for Gochain, helped facilitate their successful $15 million raise
• 10+ years experience with tech startups
Solution Designer | Blockchain Advisor
• Marketing & branding expert for numerous successful international & national capital raises, both in and out of the crypto space
• Clients include the DOD, YMCA, Big 12 Conference, Discovery, Chick-fil-a, Energizer, DataBridge, and Bigcloud
• 15+ years experience in design and development
Managing Director at Polymath / Matador Advisory
• Managing director at Matador – provides guidance for successful token offerings
• Hedge fund and private equity background, experienced investment banker for Morgan Stanley
• Co-managed a multi-billion dollar portfolio of public equities and special situation private investments for a Middle Eastern-based sovereign wealth fund
Head of Strategy & Business Development at Polymath
• Leader of strategic partnerships for Polymath
• Background in bank GMP Securities and bulge bracket BMO
• 7+ years experience in investment banking and M&A
Riveles Wahab LLP | Partner
• Simon represents alternative investment funds, venture capital funds and their sponsors
• Clients include the SEC and state registered advisers, commodity pool operators, broker dealers, and managers based in foreign jurisdictions
• 17 years of legal experience
Rivels Wahab LLP | Partner
• Experienced corporate and securities attorney, who represents hedge and private equity funds, investment manager startups, and technology companies
• Advisor on corporate, commercial, investment management, cryptocurrency and securities law
• 18 years of legal experience
Co-Founder Nordic Blockchain Association, CEO AmaZix
• Instrumental in hundreds of successful token sales, including Bancor, HDAC, BANKEX and Sharpe Capital
• As CEO of AmaZix, leads global team of over 100 multilingual, fintech experts
• 20 years commercial management experience working with some of the world’s largest brands
CEO Digital Asset Management Ltd
• Private advisor on numerous successful capital raises
• Chartered Banker in the UK, entrepreneur, and investor. Extensive experience in Equities, Fixed Income, Structured Products, Commodities, FX and Digital Assets
• As an Equity Analyst on the Investment Challenge Team at TVA, outperformed the S&P 500 in 2013 with a return of 44.15%
• Sam’s research on venture creation and crowdfunding has been officially recognized and published by Bangor