Real Estate
BlockEstate – Tokenized Real Estate Fund
Securities.io maintains rigorous editorial standards and may receive compensation from reviewed links. We are not a registered investment adviser and this is not investment advice. Please view our affiliate disclosure.
With tokenized securities becoming more popular by the day, BlockEstate is one of the latest companies to join the fray. Through a partnership developed with Polymath (POLY -66.9%), the BlockEstate Alpha Token (BEAT) has been launched.
What do they do?
Through the use of AI, BlockEstate will invest in United States-based real estate. The AI provides BlockEstate with a predictive market analysis based on various factors. These factors include the following and more:
- Demographic Change
- Economic Development
- Migration Patterns
- Climate Change
This market analysis provides BlockEstate with opportunities to invest within a variety of real estate categories. These include:
- Short Term Rentals
- Multi-Family/Mixed Use
- New Construction
- Retail
- Industrial
By utilizing AI in this fashion, BlockEstate will maximize profits for its shareholders. Investments will be educated ones, based on sound rationale.
As the value of real-estate investments made by BlockEstate grows, so does the value of BEAT.
Token Buyback
In addition to the expected value growth of company assets, BlockEstate will look to reward its token-holders through a buyback program.
They have stated on their website that on a quarterly basis, between 50-100% of net profits will be used to, “repurchase tokens from the token holders on the open market…each token bought this way will be “burned” and permanently removed from circulation. This method will reward investors, reduce the total token supply, and increase each remaining token’s percentage share of the market cap. BlockEstate will use the remaining net profits to strategically re-invest into additional properties, with the goal of increasing the fund’s overall profitability.”
BEAT Security Token Offering
Through their STO, BlockEstate is hoping to raise $50 million USD. They state that 90% of the funds raised will be allocated towards purchasing real-estate.
The remaining funds will be utilized for administration and legal fees.
The Team
The people behind this endeavour are a diverse and established few. Those listed below have enjoyed successes in a multitude of positions throughout their careers.
- Brad Galbraith – Chief Advisor / Market Connection
- Rusty Pulliam – Property Development / Real Estate Acquisition
- Steven Skinner – Senior Management / Leadership
- Colby Harris – Industry Connections / Real Estate Acquisition
Speaking on the goals of BlockEstate, Brad Galbraith stated, “One of the things that excites me and makes me most enthusiastic about what BlockEstate is doing is its using the blockchain mechanism to allow many more people to participate in the real estate investment world…What BlockEstate is endeavoring to do, and where I think they’re going to be extremely successful, is broadening that platform for multiple people to participate in a variety of real estate investment arenas, and making it so they won’t be tied to a particular deal structure for getting in and out of those investments, which mitigates risk.”
OpenFinance Network
While their partnership with Polymath will facilitate the launching of their token, BlockEstate is turning to another company to facilitate trading.
OpenFinance Network is a trading platform dedicated solely to providing investors safe access to tokenized securities. They are striving to be United States regulated, and have been in operation since 2014. BlockEstate will be utilizing their services to bring BEAT to interested investors.
