Discover Block Tech’s Unique Crowdfunding Royalties-Based Platform: Transparent, Scalable Solutions to Revolutionize Real Estate Investments and Maximize Returns.
What is Crowdfunding? A Game-Changer for Real Estate Investments
Crowdfunding in real estate pools resources from multiple investors to fund property projects. It allows anyone to invest in real estate without owning entire properties, offering accessibility and diversification.
The different Crowdfunding Models in Real Estate
|
Aspect
|
Equity Crowdfunding
|
Debt Crowdfunding
|
Royalties Crowdfunding
|
|---|---|---|---|
|
Accessibility
|
High investments for entry &
complex Management |
High investments for entry &
complex Management and Paperwork |
Low entry investments with
Easy Process & Management |
|
Diversification
|
Across property shares.
|
Across loan types.
|
Across properties rental yield.
|
|
Liquidity
|
No resale or at very High Fees
|
Locked until repayment
|
Easy to resell, moderate liquidity
like real estate |
|
Transparency
|
Unclear & complex fund
management |
No transparency on borrower risks
|
Clear income forecasts, real-time
fund flow tracking |
|
Scalability
|
Efficient for large capital
investment |
Scalable with large capital only
|
Flexible & all capital sizes
|
|
Regulation
|
Strict financial regulations required
|
Strict financial regulations required
|
Real estate regulation, no financial
compliance required |
|
Risk
|
Very high risk & slow returns
on investments |
Moderate risk, depends on borrowers
loans repayments |
Very light risk, backed by assets
|
|
Returns
|
High fluctuations returns
|
Fixed & moderate returns
|
Stable & secured recurring returns
|
Discover how Block Tech leverages the royalties-based model to overcome these challenges and deliver unparalleled value in real estate crowdfunding.
What is the Royalties Model in Real Estate Crowdfunding?
The Royalties Model in real estate crowdfunding allows clients to earn a share of rental income generated by properties, rather than owning equity or providing loans. Clients contribute small amounts to projects and receive periodic payments based on rental performance, offering consistent, passive income with lower risk compared to equity investments.
The royalties model typically falls under contract law rather than securities or lending regulations, simplifying compliance for platforms. However, operators must adhere to local property management and rental income laws. This lighter regulatory burden makes the model accessible, though it still requires clear agreements to protect clients interests and ensure transparency.
Royalties Model is Simple, Compliant, and Profitable
Earn Recurring Commission—Real estate Focused No Financial Regulation Required
Our Royalties Model is not classified as a financial instrument, eliminating the need for complex financial regulation or licensing. Instead, it operates as a simple revenue-sharing model tied to user transactions on the platform. This ensures a seamless, compliant, and efficient way to generate recurring income while focusing on growing your business.
Users engage with the platform by making purchases, accessing services, or investing in property blocks, all within a simple and regulatory-compliant framework.
Each transaction is processed securely, following a real estate-first approach, ensuring seamless payments and property-related operations without financial complexities
Earn royalties—calculated as a percentage of transaction value—directly tied to property activity. This keeps your revenue aligned with real estate practices, not financial speculation.
Royalties are calculated based on platform transactions, following a structure that respects real estate standards and ensures compliance with non-financial regulations.
Royalties are distributed to your clients automatically, creating a steady income stream without requiring financial licensing or regulatory oversight
Track your platform’s performance, royalty earnings, and transaction volumes through real-time analytics—all built with a focus on supporting your real estate business growth
You Operate as a Real Estate Professional, Not a Financial Firm Simplify Crowdfunding with No Financial Regulation Hassles.
Block Tech’s royalty-based model is uniquely designed to keep you operating as a real estate professional, free from the complexities of financial firm regulations. According to MiFID II (Directive 2014/65/EU), royalty rights are not considered financial instruments (Article 4(1)(15) and Recital 27). Additionally, under the European Crowdfunding Service Providers Regulation (EU 2020/1503 – ECSP), our technology is exempt from financial regulations because it does not involve equity or debt offerings, which are subject to stricter oversight.
This means you operate under real estate laws, not financial regulations. Our royalty-based model focuses on generating recurring income from property performance without offering shares or loans. As a result, you don’t need to register as a PSCP (Platform Crowdfunding Service Provider) or submit complex documentation, saving you time and resources.
Why is this important? A valid real estate license, combined with liability insurance and secure fund management, ensures compliance with EU standards while maintaining investor trust. By eliminating the need for equity or debt structures, you can scale your business faster, attract more clients, and avoid unnecessary regulatory burdens.
Take Your Real Estate Business to the Next Level with Our White-Label Solutions
Join the Future of Real Estate. Our white-label platform helps you create your own solution, attract clients, and unlock new streams of revenue. Let’s shape your success together
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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:
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.
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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