The Minting Factory

The Real Estate Revolution starts by people who want to sell their investment properties by minting them into NFTs and selling it off in fractional ownership. In the Minting Factory, properties are evaluated and broken down by cash-on-cash return, cap rate, and estimated return over a 5-year holding period. Each property will have supporting financials, home inspection, and an appraisal completed by a neutral third party. A seller can sell their primary residence and continue residency with a leaseback option. The amount of rent they choose to pay on the lease will determine the cap rate for investors and the over all value of the property being listed.

Setting the purchase price

The purchase price is chosen by the seller. However, the estimated value is automated based on the going cap rate where the property is located. A seller can sell the entire property or a percentage of it. However many NFTs the seller decides to sell will be offered to the BlockPark community in the secondary marketplace where buyers can see the total value of the property and the value of each NFT (property / number of NFTs). NFTs are minted in multiples of $100 when they are first brought on to the platform. ($1,000,000 = 10,000 NFTs). Buyers are given access to rent roll, P&L, and occupancy reports verified using distributed ledger technology that allow users to make an informed decisions on whether or not they want to purchase the NFT backed by real property.

Fractional ownership

For each property made available on BlockPark, multiple NFTs will be minted. Each NFT represents fractional ownership of an LLC that is backed by the property and exclusive to that property only. With partial ownership now being made possible, participants can become shared owners of properties with NFTs that represent tangible, income producing assets.

Ownership rights

Each NFT will come with 4 ownership rights.

1. The right of ownership to the NFT backed by real property

2. The right to receive a dividend equal to the property revenue

3. The right to govern the property as part of a DAO

4. The right to access property data on the BlockPark property management platform

Investing in Real Estate is easy as NFTs can be purchased using USDC tokens which are stable coins pegged to the US. Dollar, or by using PROP tokens; BlockPark's native token that gives the buyer a discount on the NFT at the time of purchase.