Conventional real estate investment funds continue to operate in both the private and public sectors, challenges such as restricted access, high fees, and misaligned incentives between fund managers, investors and even tenants can get in the way of bigger profits. The number one key issue in my opinion is how company assets are being managed within a corporate structure. Our primary focus at BlockPark is to provide transparency to investors by making decentralized property management governance the core of our entire ecosystem. Let me explain…
The key to real estate investment is making sure a property is well taken care of in order to maintain total control and optimize its performance. Property management is the primary factor on whether or not an investment property will be a solid performing asset. A great deal of trust is placed into the hands of private and public fund managers to maintain and get the most out of your investment. Therein lies the problem. To no fault of their own, the bigger a company grows the more disconnected they get from the actual assets they manage. What was once a few investors who purchased an 8 unit apartment building that averaged a 12% APY, has now turned into a 120,000 unit venture fund that yields between 5% and 8% in a booming economy.
What happened to the money? If anything, the yield should be going up with the more assets and leverage a company has at their disposal the bigger they get. The answer is the money disappears within the cost variable that is used to pay the additional managers, micro managers, assistants, and every other expense necessary to operate the company. (And I’m only talking about the staff)
The BlockPark real estate investment and listing platform is a solution. Our decentralized property management provides 100% transparent access to each investor by creating a community staker pool for each property acquired. The staker pool becomes a DAO (decentralized autonomous organization) which now has the ability to govern their own assets using a permission based platform to monitor, manage, and monetize its performance.
The bigger we get is no longer a conflict of interest; instead, the bigger we get grows our community and increases the market of asset ownership made available to buy, sell, and trade on our platform. Similar to Gamefi, where community members are vested in minting / creating their own NFT’s that may or may not look like a middle earth orc from Lord of The Rings that carries a pickaxe, each community staker pool is going to want to make their property portfolio the best performing and most dominant asset(s) on the platform to maximize its value and increase their profits. To compete is what drives human nature to advance. When the playing field is even, everybody wins.
By Daniel Ricberg – CEO & Founder of BlockPark Technologies