Blocktech

FAQ’s

Find quick answers to the most common questions about our platform, features, and services. Whether you’re exploring our solutions or need support, we’ve got you covered with detailed insights.

What are royalties in the context of real estate crowdfunding?

Royalties are recurring payments distributed to clients based on property performance, such as rental income or resale profits. Unlike traditional returns, royalties offer a predictable and consistent revenue stream tied directly to the property’s success.

What are property blocks, and how do they work?

Property blocks represent fractional ownership of a property. Each block corresponds to a percentage of the property’s value and potential income. Clients can buy these blocks to participate in property performance and earn royalties proportionate to their ownership.

Are there risks involved with this investment model?

As with any investment, there are risks, such as property devaluation, vacancy periods, or market fluctuations. However, Block Tech’s model mitigates risks by allowing diversification across multiple properties, transparent performance tracking, and clear terms for clients.

Is this model subject to financial regulation?

No, our royalties-based model is designed to stay within the boundaries of real estate regulations. It does not classify as a financial instrument, meaning it avoids the complexities of financial licensing, allowing partners to operate under standard real estate regulations.

How does the royalties-based model work? Can you provide an example?

In the royalties model, revenue generated by a property (e.g., rental income) is distributed to clients based on the number of blocks they own. For example, if a property earns $10,000 in monthly rental income and an Clients owns 10% of the blocks, they would receive $1,000 as their monthly royalty.

What is crowdfunding in this context, and how does it apply to real estate?

Crowdfunding allows multiple clients to pool funds to finance a property purchase. Through Block Tech’s platform, properties are divided into blocks, enabling fractional ownership. Clients buy these blocks, allowing real estate professionals to fund multi-million-dollar properties quickly.

Who owns the property in this model?

The property is owned by the entity managing the investment platform or a designated legal structure, such as a Special Purpose Vehicle (SPV). Investors do not directly own the property but hold fractional rights (blocks) that entitle them to royalties based on the property’s performance, such as rental income or resale profits.

What is a white-label platform, and how does it work?

A white-label platform is a fully customizable software solution that you can brand as your own. With Block Tech, you can create your own investment platform with your logo, colors, and unique features, giving your clients a seamless experience while operating under your brand.

How can real estate professionals use this model to grow their business?

Real estate professionals can leverage Block Tech’s platform to offer fractional ownership, attract more clients, and create recurring revenue streams through royalties. The platform simplifies operations, enabling them to focus on scaling their business and building clients trust.

How does Block Tech ensure compliance with crowdfunding and real estate regulations?

Block Tech’s model operates entirely within the scope of real estate regulations, avoiding classification as a financial instrument. This ensures partners can focus on property investment without requiring complex financial licenses or navigating strict financial compliance.