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.

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LEGAL DISCLAIMER

Block-Tech.co operates as a royalty-based crowdfunding software provider, specializing in fractional real estate investment. Our platform enables licensed real estate professionals to offer royalty rights to their clients via white-label solutions, focusing on real estate rather than traditional financial investments. Unlike platforms offering equity or loans, our model is not subject to financial regulations such as:

  • MiFID II (Directive 2014/65/EU): Royalty rights are not considered financial instruments under Article 4(1)(15) or Recital 27.
  • European Crowdfunding Service Providers Regulation (EU 2020/1503 – ECSP):Block-Tech.co’s revenue-sharing agreements are excluded from equity- or loan-based oversight under Article 3(1)(a).
  • Provision of Services for Financial Products (PSFP): Royalty rights do not qualify as securities under EU and French regulations, ensuring exemption from related financial rules.

Block-Tech.co and its white-label platforms operate under common contractual and consumer law. Clients must hold valid real estate agent licenses compliant with Directive 2005/36/EC, ensuring legal operation, liability insurance, and secure fund management in their jurisdictions. Since royalty rights do not qualify as financial instruments, neither Block-Tech.co nor its clients are required to submit a prospectus to ESMA or comply with MiFID II regulations related to securities or debt instruments. Block-Tech.co is registered as N.L.G. Consulting in Israel (Reg. No. 558528998), with its headquarters in Tel Aviv.

WARNING

Investments made through Block-Tech.co-powered platforms carry risks, including potential loss of capital. Our robust technology does not eliminate investment risks. Past performance does not guarantee future results, and property-specific risks may arise. Block-Tech.co does not offer financial or investment advice. Clients and users are strongly encouraged to seek independent legal, financial, tax, or accounting advice before engaging with our platforms. Investments through Block-Tech.co solutions are royalty-based and not classified as securities.

Block-Tech.co assumes no liability for direct, indirect, or consequential damages arising from platform use. For questions regarding risks, our support team is available for clarification.

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