Market Overview
Real Estate is a 280 trillion-dollar market. Unfortunately, most of this capital is locked, i.e. it is not returning any interests. Today, accessing this market as an investor requires using an investment vehicle. The universe of Real Estate investment vehicles is vast and diverse, reflecting the tremendous variety in real estate itself and offering varying degrees of risk profiles, active vs passive management, investor access, and diversification.
There are certain patterns across the drawbacks to these various investment vehicles, and each one presents tradeoffs regarding key matters such as liquidity, diversification, cost, and access. These overarching challenges include:
- 1.Ownership: Investors are not actually owning a property. On top of that, they are delegating their governance rights to the investment vehicle which keeps them away from good property management with the possible consequence of seeing their investments losing value.
- 2.Transparency: The management team can have substantially more information on the true risk/reward profile of the assets/properties than do the investors. None of the current vehicles allow investors a complete view of the underlying property portfolios, forcing them to invest without truly knowing if the vehicles are fully consistent with their risk/reward profiles and investment objectives.
Our platform addresses these challenges. Buyers become actual owners of a property that is minted into NFTs and they are given access to a set of tools allowing them to oversee their portfolio where they can choose whether to keep an asset or sell it in the secondary marketplace. All things considered, BlockPark will drive a major change in Real Estate where prosperity also means social impact.