MakerDAO Community Collateral Onboarding, 14 Apr 2021

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From YouTube: Collateral Onboarding Call #30: SolidBlock - April 14, 2021

Description

Collateral Onboarding Call #30: SolidBlock

Intro by @JuanJuan
SolidBlock - https://solidblock.co

MIP6: [SB-LDB] MIP6 Application: SolidBlock Democratizes Real Estate with London Digital Bonds - A Smart & Tradable Property Investment

Agenda: https://forum.makerdao.com/t/collateral-onboarding-call-30-solidblock-wednesday-april-14-17-00-utc/7052/1

Governance Forum:
https://forum.makerdao.com/

Disclaimer: These calls and the summaries are produced and hosted by MakerDAO community members. Content produced by the community are not the statements or views of the Maker Foundation.

A

Hi, everyone welcome to make a doculator called number 30.. Today is april, the 14th 2021 uh 5 pm utc and yes, my name is juan I'm here with a bunch of people interested in real world finance and and real world assets on chain, and today we're joined by solid block so uh yeah. It is with us and we'll be explaining a bit more about the project and if you guys have any questions as always feel free to to interrupt uh yeah, they want to tell us who you are and what is solid block.

B

Yeah we've, uh if you also enable my screen, that will be helpful, immensely screen sharing that should work, okay, okay, so solid block. Our goal is to enable liquidity for illiquid assets like real estate.

B

We are known for our for the first ever commercial real estate, tokenization, in fact, which was done by elevated returns, and they brought us in to do the technical part so we're first and foremost the technological platform, uh but we're also usually partnering with issuers now with them, bringing their real estate experience and us bringing the blockchain and real estate financing experience.

B

So we um you know in 2019 we were developing a platform in 2020. We were picking different projects, and this was the first project that we picked and I'll tell you why, um specifically, we were looking for a project, that's able to compete in terms of return with uh just simple crypto.

B

um You know uh just just returns that you get on crypto on coinbase or binance. You know by just holding your crypto in a vault. You know in a vault right, so we're looking for an asset that will be high yielding enough, um and that will uh you know that will kind of work for both crypto and real estate investors and the reason why this specific asset, the way we structured it, is able to give 10 to 15, there's no magic behind it. It's just basically the science of buying uh assets at a low price.

B

uh You know at a distressed state from people or you know, sellers that really need to sell selling them at a higher price and then distributing the profit and when we do this at a high scale, we're able to give 10 to 15 returns. So without further ado, let me tell you about the asset itself, how it's structured and then I'll explain how we actually tokenize and uh like what? What are the legal and the compliance considerations behind it and where um and where we also took precautions to protect investors.

B

So our partner, solid blocks partner, um is london chelsea. They have an extensive track record in doing exactly that, working with a single family residential asset class. They have a huge network of brokers, and you know foreclosure agencies just a way to find um these gems that you can buy, and usually these these assets don't stay on the market for very long they're bought within a few days. So you kind of have to keep an eye out for them.

B

So they've been doing this for a decade made a lot of money for investors with this, and so um you know the business model that we're using for this fund is the same business model that they've been using for previous um operations right, so london chelsea they have about eight people. Eight partners in london working on this, some are managing properties. Some are sourcing properties, some are flying. Some are selling and solid block. You know we are.

B

We are the tech platform behind the project, um so the investment strategy, as I mentioned, is to source great properties to target properties that are 20 30 below the market value and, of course, we work with appraisers who quickly appraise the property and tell us that, yes, it is below right, so properties acquired from distressed sellers um cash offers and buy properties quickly right. So they were not going to a bank and asking them. You know to finance that would take too long right.

B

So that's why it's another reason why what we're doing here is extremely uh attractive to this model right. uh We need to buy and sell properties quickly, there's slight refurbishment and fix up um and we're targeting to earn about a hundred thousand pounds per property right. So we buy. Let's say it's 300 solid 400, something like that.

B

um We're using uh london zones, two six, where people are moving out right now because of covet and other considerations, they're moving out of the center and a little bit on the outskirts, buying bigger houses, maybe adding a room which is converted to an office.

B

uh London prices have been increasing, you know partially because of brexit- and uh you know people are um you know, london is the top 10 or maybe even higher, but its property market is is very, very strong and now the the taxes are also very favorable, so we're we really like this market, so I will by the way I think this presentation is shared in our materials on the on the platform.

B

So I'm not going to go through everything here, but I encourage you to kind of go through and kind of learn about our investment methodology here. um So another great fit and synergy here is number one. We, uh this is a five-year bond and that's the reason why we could give such high returns 10 to 15 returns. It's a five-year. This london chelsea has other products that are one year two-year and their returns are much lower.

B

Now take the five-year bond combine it with the liquidity that we provide and you get a perfect product right, because you still can offer high returns, but you can offer liquidity as well uh in terms of financial overview.

B

The soft cap for this product is one million pounds, that's the minimum that we need to raise and then we'll be distributing um distributed tokens to investors. um It's a cash flowing fund. We every three months. Every quarter we distribute it into investors, wallets or investors bank accounts, whatever they select right.

B

um I mentioned our partners and the london chelsea team andrew thompson is the ceo is the most experienced um in real estate has been done. You know has done it for over. I think uh several decades he said 20 years on. Our last call, I believe, ramon vega is a very, very interesting partner. You know he's uh well-versed with institutions an asset manager for many years. Also he owned uh he's a professional footballer right in the uh I think he he owned.

B

One of the football teams, chris lynn, is managing all the property he's also extremely experienced uh in this industry.

B

uh I put some examples here but, like I said these assets, I can't really list assets that we're going to buy because they will disappear within the next few days right, um but there's some some just basically for anybody to go through this deck and look at the homes that were bought right um in terms of our team myself.

B

I am on the finance side, the capital markets experience. I worked. You know, wall street at 18, at a broker dealer moved to m a private equity financial engineering uh structured. Several real estate funds on the financing side did ipos for realistic companies.

B

My co-founder yuval is on the product and I.t side, and then we have a very talented technical team. We have very talented real estate team and compliance and law, so I promised to mention about the structure which isn't in this deck, but it's in our ppm. We wrote a private placement. Memorandum, like I said, like compliance is our biggest you know both compliance and investor protection, our biggest goals um as solid block.

B

uh So with compliance we created an spd special purpose vehicle in delaware in the united states, which will buy all the properties will hold. All the properties will hold the titles to the properties. Of course. Now that spv is issuing a security in the united states um under an exemption from prospectus rule um 506 c. That's one way that we're going to offer securities to accredited investors for retail level investors.

B

We will offer it through republic we're actually in the process of launching on the republic crowdfunding website, and we also have a few institutions interested right now outside of the us. We can offer uh these securities to major you accredited investors and majority of other countries without extensive marketing uh in the uk. Right now, we're limiting to many. You know direct sales to institutional investors and accredited investors that you know uh we're connected with from the beginning.

B

So that's our regulatory strategy in terms of maker, of course, things are working a lot differently, but for the comfort of of the maker community, this is a fully compliant uh unregistered security in our smart contract. You can see well in our ppm and both our ppm and the smart contract.

B

You can see the entity that we opened. It's called lcre london chelsea real estate llc. You can also see the registered cusif number. A qcip number is similar to an item. Eisen is when you go public. You list on a stock exchange. Accusip number is an unregistered security uh with this q-sip agency, which does require does due due diligence, does require all of the documents for reviews all of the agreements. So we have to submit our llc agreements, organizational structure ppm, all the documents for them to verify that.

B

Yes, this is the entity that is going to be um issuing this unregistered security. When I say unregistered, it just basically means that we are going under an exemption. We are not going to do a public offering right which is a registered offering. So that's, I think, that's what I wanted to share with you guys.

A

That's that's great yeah.

A

um You have any any questions, especially the the real world finance people that have a more extensive knowledge than me on this.

B

For sure guys do you hear music on my background or we're good.

A

Very very low: it's fine.

B

Good there's a huge party right outside my car with like a hundred children. Okay, go ahead.

C

Okay, um so thanks yael, I guess um what is the state of the market right now, um as um uk is coming out of lockdown, and I know talking with andrew before there was a window of time in which a lot of great deals would be available right. um Do you see that where, where where are we in that window, do you think.

B

I mean the window will provide an additional income right. We structured this product even before covet hit right. So we, you know this is the 10 to 15 is expected, in any case right any scenario, but I think that right now this year we're going to earn much more because um right now, they're the the prices are extremely low and, after covet we're expecting a big shot up in the value of prices as well.

B

As you know, things go a little bit back to normal right and with uh with london turning you know, going back to being this tourist empire right, so people will return to buy apartments for airbnb, and you know right now all the airbnbs are for sale. So um you know you can imagine, and this window is going to last for another at least six months. In my opinion,.

C

A

Yeah, how do you see the the collaboration with maker? How do you see the dynamics or the or the amount of uh of money that would be needed.

B

So in terms of the amount of money that's needed, I believe that we can use maker as an underwriter in a way where will, like phil said we'll, be able to take advantage of this amazing opportunity of being buying uh assets even at lower prices than usual right and then, as as we catch up with our investment strategy, we can, um you know, repay the the financing, the leverage and then go go to the next asset. So that's one way that we can.

B

We can collaborate and the other way is in general, since the you know we're getting 10 to 15 return.

B

um You know, let's say without maker: perhaps our race capability is only 10 or 20 million and maybe maker will be able to give us an additional push and that will enable us to buy even more apartments and faster right, so we'll be able to make more money for investors at the end of the day when you get, you know like, as I said, we're not able to go and get leverage for apartment because it doesn't make any sense, but by the time we get bank loans we'll be.

B

uh The apartments are going to be gone, but this is providing everybody with an opportunity to get a higher level uh return right. All that all our investors on your side, you're, getting a a great, stable product that um you know is relatively low risk because we are, it is spread across a high number of of assets. It's an asset class that usually is not available to institutional investors or to like kind of larger investors, because it's so small right.

B

Each apartment is 200 000 pounds so, but in this case it's available because of the way we structured it. And finally, when we're done with raising funds and deploying this one, you know there's so many other cities in the world that we can. We can work with, and I think it will create kind of a mechanism for us to to work with similar developers to andrea and listing.

A

Interesting and if you had to give a more concrete numbers on on how much yeah, how much money or the interest uh well, I.

B

Don't know the.

A

Interest rate right, but uh you know at least the ballpark of what would be looking at.

B

Of interest that we deliver to our investors or interested, we deliver to your investor.

A

So I mean potentially you mentioned already that 10 to 15 percent, so I would expect that you're asking to borrow money at something less than that. Hopefully.

B

Yeah, hopefully I mean when I started working with you guys with your team. I uh I had an understanding that there is a um an actuary or some sort of a process that determines the the risk level. So this is something that's up for discussion right like if we were to go to an entity, an institution and borrow money.

B

um You know we could easily find uh a lender that will land at around eight to nine percent. So that's something we it's easily available in the market, so we'd be we'd, definitely be looking for less at less than that. But it's something that you know. If I I did do such work in the past, I haven't done it for this product. You know on the lender side, uh you know, if you I'm, I'm sure you guys have some sort of models and if not, we can develop them together.

A

Seb, do you want to maybe comment a bit on the on the process.

C

Yeah so the process, it really depends at the end of the risk, and this is the rates depending on the risk yeah.

B

C

One piece I'm not following completely because it's field that is working on this topic more closely is: what is the loan to value for in this spv, because the spv have all the assets yeah and you issue loans against those assets. But what is the ltv.

B

I think that in general, you're looking at I mean real estate, ltv is somewhere between 50 and 17. right so uh for for riskier assets, you're looking at 50 or less or less you know for this one.

B

You know if you're buying a residential if you're buying a home as an institution you're looking at 75 percent ltv, sometimes right so um you know because it's a residential property in the city. However, you know so it's somewhere in between those two. I don't think we'll need that much money. Frankly, um you know.

B

However, that said you know we haven't raised funding yet so I don't know how we're gonna, what we're gonna base the ltv on on a potential value, uh or you know the the way that we're we're talking to you know we're we're talking to centrifuge and we're talking also to reno um and their trust. So there's several different ways to do this, and one way is of course you know for us to buy a property and then deposit. You know that title and get I don't know 65 70 of that right.

B

So that's one way to do this another way, and I don't know if you guys do that or not, but you know, get a loan before to buy a property and then and then deposit it. You know um because it is backed by our token, so it really depends on how we structure it at the end of the day, it's up to you guys to tell us how, but we are open to whatever makes sense.

C

Yes, that will be something to discuss you're completely right, and there is a lot of opponents because opportunities, because we are open to almost anything if it makes sense it's okay. For us, we are exploring the space, but my question was so you ask you: try to raise the 20 million dollars for tokens which back your notes and what is the value of the notes compared to the value of the real estate in gspv.

B

I mean the way it works in the in our industry. Is that if there is trading, it is a bond. So, let's think about this, it's a bond it has. uh uh The value is going to go up as it approaches its maturity of five years. There's a distribution at um every quarter right so january, 1st april 1st, and um there is also annual additional distribution of additional income.

B

If the fund is doing really well or if the market is there well, that's getting 10 base and another five if we've done really well, so we expect the value of uh you know the supply and demand in base value of the bond to go up when it gets close to the distribution um and annual as well right and then, of course, we'll keep going up as we near the five-year mark.

B

So, um however, you know, if we didn't have the whole trading component, then you would defer to like a net asset value of the fund. So that's that's you know, but this this this price is going to fluctuate.

C

Okay yeah, but let's say you are making the first balance sheet of the spv delaware spv at the end of the year, you have, let's say 20 million of the for the new note and how much equity do you expect to have on the balance sheet.

B

C

B

Of equity, um that's a great question, so we do have a provision in the ppm to be able to leverage uh bigger assets. uh You know, there's a bigger asset, we could go and leverage it. um I think we post if we put a limit on the leverage it's in the ppm, but I don't remember what it is. I think that we put a leverage of 25 percent but don't hold me to it. I'm gonna go back to the epm and I will I will look we actually.

B

That was a requirement by um I I think either by maybe even by maker. I I have to go in the back and locate or by republic. It was a requirement by some platform too, to go and put that on. For that.

B

C

Let you guys know yeah sure, perfect. Thanks.

B

Yeah that was actually created so that we wouldn't be able to over leverage.

B

We can put more, we can always issue more. You know if, if, if we see that something needs to be done, like that's a big problem in the industry and that's why I'm also just in general concerned with the deep industry because of because of this. So if we need to make more limitations and more adjustments I'll be happy to make them things that make sense. Okay,.

C

C

Yeah and how is it going with um centrifuge.

B

So we had a few phone calls. It seems, like jason, has found a way for us to do this.

B

uh It's a little bit more complex because they're doing like they're they're more geared towards um smaller, you know, working with a property by property and something very specific that they created for that project, they're doing with new silver and in general, with invoice. You know financing it's a little bit different. I I think so we can work with centrifuge. That's one way we can all. I also got in touch with reynolds and they're almost done with setting their trust.

B

um So you know we'll we'll do whatever is available first, I think that's what we'll do.

C

B

But the centrifuge will require for us to like the way jason likes to refer to it as to take a car. Take a cow to go to the supermarket, to buy milk, um so basically do a little bit of jag. We call it jerry rigging, yeah.

C

Yeah, um so the trust model is also possible. Okay, all right um yeah. Well, regardless of those mechanisms I mean, could you describe a little bit about your token.

B

Yeah, I mean our token is an erc20 modified with a white list. The whitelist is managed by solid block with the north capital api, which are checking kyc and aml globally, and for american investors. We're also checking the accreditation.

B

We are limiting some countries, obvious uh offenders um that usually are limited, and I mean like rogue countries like south, like north korea, stuff like that. But america is obviously included. um Accredited investors in the majority of the world are included.

B

What else about our token? It's yeah? It expires after five years right. So at five years we burn it's open, we distribute the profit. It should be noted that we will have an administrator in case of default that will take care of investors, we'll try to fix the um you know, whatever needs to be fixed for six months, and then it will sell the properties distribute, and since we don't have a senior lender and and this on this project, the investors are actually in good shape, uh so they'll they'll be able to get some.

B

There are some of their investments back right in case that happened.

C

C

And you were, you were also trying you were getting the token listed on secondary markets. Is that right.

B

Of course, yeah 100 it's going to be listed on inx. First of all, it's going to be listed on t0 and you know we're we're looking into what what will happen with our tracks when they're gonna start operating and lift uh there as well.

B

Possibly we have we partner with 10 exchanges right now and we're building our own solution kind of to gauge liquidity on those exchanges and then also to be able to to control inventory in between, so that we can list them different places, um so that should come out by the end of the year. So we might be able to list it on a few, but at least we'll list it on two or three and of course it's going to be tradable on solid block as well in a bulletin board form right. The otc.

C

A

Any any other calls or anything we're forgetting guys.

B

I mean I'm here if anybody's forgetting anything be available and what's up.

C

Just sort of curiosity, it seems like a lot of the projects. Solid block is brought to maker, so far are like regional specific. Is there interest in looking at like broader.

B

A regional specific: what do you mean by that.

C

Oh just like this, for instance, being like the uh london um commercial area like, um is there any interest in developing like a wider portfolio um to utilize, with maker.

B

So I believe that it's for now it's better to go project by project just because people that's how people invest like some people do invest in reits, for example, so we are planning to do indices and etfs, and that's going to be super interesting for maker. I think, but we're about a year away from that we're actually so we're working on. Let's say we'll, have five different residential, let's say residential properties.

B

Let's say we'll have london, berlin, new york, san francisco, whatever right we'll combine them into an etf, and then we can use that um you know an index fund as a basis and to leverage so that will come and um uh we have also by the way we have a fund right now. That could be super interesting for you guys, which is a medical facilities in florida, so advise uh and invest in medical facilities there and for detox for opium and alcohol.

B

There are a few projects like we're kind of invested heavily in this one in the london digital bond. For several reasons I mentioned, and one more reason is super flexible.

B

So you know when you go and you have to buy an asset, you have like very specific requirement, but when we have a portfolio of assets to buy and it's uh you know and it's a big spread from a million to 26 right, we'll be successful anyway. It's not like we have to now raise 20 million, build something. You know the risk. The risk is relatively low. So that's why we love. We love this one. You know uh and also another cool reason is in the us.

B

You have all these rules and regulations for for crowdfunding, and one of those is that your spv has to hold 100 of the asset.

B

So this is one of the very few projects where we have that, because otherwise we usually buy a part of the asset and not the whole thing, because it's either leveraged, then we only tokenize equity.

B

So we don't own the whole thing we will tokenize apart, like 20 30 40, like the other project, we brought to you guys by the way our plan is to bring you a new asset every month, so like by the first of every month. We'll give you a new asset, we just kind of took a break this month to see if we can actually do it and pull it off.

B

But if we see that it's possible, we have, you know uh a pipeline of a few billion dollars right now and by the way the assets that we want to bring next are there are bigger and more. You know we have a town in california, we have um a commercial triple net lease portfolio in vegas, so we we have very, very interesting things to bring, and uh but we want to see how it works and I'm sure you guys want to see how it works too right.

B

So we kind of have to pass this pilot together, and um you know also make sure that we address all the issues uh in advance and that's why I actually really enjoy this process um initial process of the back and forth of different requirements, because also kind of you know, you think ahead. You're structuring a perfect um structure that we can use forward going forward.

A

Yeah, I thought that the token was kind of like a pool of different assets, and then you say that you're bringing a new asset into going to the protocol, but is it? Is it added to the same pool or is it a different pool? How does that work.

B

No, so this token is representing an interest in the llc that buys and sells properties this llc. uh According to our business plan, the llc is going to take a spread of about a profitability of about 60 to 70 percent. Now solid block, london, chelsea and our investors are all going to take a third of that spread. So you know, therefore, it's the expenses associated with the fund right. So after the expenses we will and by the way investors are getting preferred right, so they're always getting 10 percent.

B

If there is income, follow block and london chelsea have less, and so the investors are getting theirs first, so they're getting ten percent and then they're getting up to five more if the fund did really well right, so you're getting you're getting participation rights in the income of the llc.

B

So, uh however, your loan, the bond that you that that you bought when you invested in this in this project, the bond that you bought is collateralized or backed by the properties. What does that mean? It means for some reason the bond is not paying you back. You know something is wrong, whether it's because the fund itself is not functioning then, like.

B

I said that there is an administrator that will go and and fix the functioning of the fund, or maybe the market is not going well, then again the properties will get sold and you know whatever is left is distributed.

B

So that's what it means that the bond is backed by the actual assets, it's backed by a hundred percent of these assets right because they're mainly not leveraged and like I said there is a possibility for some leverage within the bpm and have to go back and check, but it's it's limited, and it's also as a as a bond holder, you're entitled to quarterly reports. If there is any loan that was taken uh against these properties, it will show up on on the report right.

B

So there's also another way to trace uh to to control these things.

A

Sounds good hello.

C

A

Yeah hi uh y'all.

C

uh Hi thanks thanks for coming and sharing um your presentation and your company, uh your company's outlook, which some of it sounds super exciting. um So I kind of missed the beginning and I got distracted because the coinbase you know ipo just went off. uh Oh.

B

C

So yeah it's quite.

B

A complication.

C

Yeah, so uh I might have missed this and you might have mentioned it and I apologize, but uh I know on your mid-six application. You mentioned that you guys were going to um do the republic listing, I believe, and I'm not sure if you already went over it but uh how's. That going. Is that something you guys are close to um putting up to the public.

C

And if you are, are you going for the one million race or the five million uh new allowance that they're allowing americans.

B

To do so, we are very close, we're at the final requirement stage and um we're going for 1 million at this point, and it's going to go up to 5 million. You know we just kind of took the 1 million first and then we'll convert convert it to 5 after we raise.

C

Right so you're going to reapply for the extension. So um are the republic uh participants going to get just uh the same token that the accredited investors get or got it? Okay and.

A

Can you expand on.

C

uh Real life, I think, you're, a real t right. Somebody's called real, like tv.

B

C

B

We're not on realty, oh.

C

Sorry, it's t-zero zero.

B

C

B

Don't know if you spoke.

C

About that already, with the same regis, aspen ski resort, yeah.

B

C

That something that's still going on is t-zero still a working product, yeah.

B

C

B

Is ready to go and they actually brought a bunch of new investors and that's why there's so much trading on the aspen coin, some days, there's like 3, 000 trades, I think even more um like in dozens of thousands of trades like can go up very high in terms of trading so yeah they. But the reason why is because they only have maybe four products right now, it's not that much to trade, but it's going really well. So I think the market is going to be very favorable.

C

B

C

uh The so I guess the aspd token is an erc20 correct.

B

C

B

Is that something.

C

That um so, is that what you're offering to the republic investors or is it.

B

Yeah, it's the same type of token. Actually, we would follow the same. The same standard we created with the.

C

Okay got it sounds good and um what I don't know if you went over this also, so I apologize again it. So what do you um what's? uh What type of return have you guys shown if you have a track record, say going back five years? um Is it a return of double digits? I mean. Can you just go over that and I apologize again if you did.

B

No, I didn't go over that and that's a great question. We have that somewhere in the materials. I don't have the on this deck, but we have a track record. Let me try to find it on my computer. We have a track record for london for the london chelsea team, uh showing you know this 60 70 profitability um like going back seven years is that annually was that.

C

uh The five years I.

B

Think that's over a period of time. I don't think that they do it anyway, but anyway, I'm gonna I'll, look for it some other time and all uh and I'll send back to you. Okay, yeah yeah.

C

If you could put that on the forum, that'd be great, but uh all.

B

Right cool, thank you. It should be there by the way. I think somebody asked us.

B

Oh wait. I found it give me a second I'll share. My screen.

B

B

All right, so this is basically where they bought, uh where they bought properties in london, and this is uh what they, what they purchased, what they sold and I don't I guess they didn't put the dates on it, but all the properties that they that they uh that they bought and they sold and on the profitability.

B

So that, basically, is six million. Seven, we um around six, seven million worth of uh pounds worth of property and uh and then the profitability.

C

B

C

Managed right sorry.

B

Not anymore right, so they sold them all.

C

A

Is there any type of uh I don't know, uh remodelation or or maintenance? That's done to the properties.

B

Yeah yeah, there is a little bit of an investment, but just very cosmetic fixes, not a lot but kind of to maximize the value like you can see that they, like they purchased for in this area. They purchased it a million 100 and they sold like almost double right.

A

Yeah I was wondering what the gross profit was and, if that.

B

A

Included or not.

B

A

Yeah, exactly that was a hundred percent.

B

Profit right not everywhere right, but in most places that's what they got. Obviously I think it was before tax. They have to pay some taxes but, like they said the same duties or duties lower so yeah, so they made a hundred percent profit, probably before tax for expenses right. So then, when you subtract that it goes to a 70, 80 percent, if I remember correctly, so that's basically how much they were ready to make, and that was in the last seven years, which are like normal.

B

You know: thri, regular years of property prices going up, it's just a matter of buying a matter of finding these. These undervalued props.

A

A

Are there any other questions for you guys.

C

I got one that's kind of more for seb.

C

I was curious if you had like a preferred way in terms of figuring out the onboarding for these like. Is it kind of whatever's going to work best or like? Do you prefer using centrifuge or like it's kind of? What's our.

B

Outlook yeah, I prefer I prefer using our token rather than our title and the reason being, I just had a call with our lawyers and they're saying wait. We have to check if this is even legal in the in the uk and in london.

B

If we uh that we can deposit the uh the title right with uh with a different company, so we have to go out and check the legality. I'm sure I will work it out in different ways, but in general, for the sake of defy, and also for your sake, guys like um they're, going to be many more companies like solid block and there are right, there's obviously there's reno.

B

I just actually met another company that we're gonna and everybody by the way wants to work with solid block to a certain extent, because we are the source of the deals like we're really extensively focused on finding realistic partners, but there's another player called accrue. I like them a lot um and then, of course, there's reno and there's uh well. Reality has their own and d5 but which I think is you know I have to look into compliance.

B

I, like you guys specifically because it seems like you all, have thought it through in terms of regulation and compliance and how you know how to do this in line with what's in the real world. So that's really important for us. uh So what's in the real world right now for tokenization is we are doing this work to create a token and there's so much behind it. um So many legal and regulatory processes behind it, then you know just taking a title and putting it somewhere um might be a little bit complicating things now.

B

That said, like, I want to work with centrifuge, in any case with one of the projects just to make sure to see how that's going to work, because it definitely is easier for us. You know, here's a title and uh you know go go, go! Do the work that we do um so. Let's say this is a very long-winded answer and I'm sorry for that. uh I'm gonna try to work it out with centrifuge and parallel with a trust and see which one do.

B

I need some more investigation, which one is going to be faster, but I think the most appropriate solution for us is the trust.

C

Yeah, I would say that as well, because uh you already have token you already find out the legal details on the securities aspect. So why do you do it again, another wrapper of legal stuff? On top of that, so it doesn't make much sense. At least I think so so.

B

C

B

A hundred percent sebastian- and I I told uh jason, will you know we can structure the next one in this way that we can do it through you guys, like we have a lot of uh a lot of um developers that can come and deposit titles and do things that way. So you know we're open. There is a way to do it with centrifuge. You know we figured it out with jason. If we have to do it that way, we'll do it that way.

B

If we can, if we can fast, do it, do it relatively fast with a trust we'll do it that way, so we're.

A

A

Any other last questions before we reach the top of the hour guys.

A

All right, yeah.

B

A

Where can people find you and uh and contact you if needed? Oh.

B

Sorry I just found the the hold on. I'm gonna give you um in the ppm which you have access to on page, I'm actually not looking at the last version, but I'm going to show you on the screen.

B

What you should be looking out for in terms of the leverage.

B

As a part of a strategy, we may borrow funds against certain properties which loans will be secured by the relevant property. If we default on such loans, investors will have the remedy. That's disclaimers, so we're saying.

B

um Sorry, maybe that's not what I was looking for. If I saw the 51 I got excited, but that's something else. This is uh uh never I'll, find you that uh sorry about that I'll find you that about the limits on the on the leverage. Now, uh sorry, you were saying.

A

Oh sounds good. I I was going to ask you: where can people find you and and what's the best way to contact you if you need it.

B

uh They can find me absolutely anywhere. You can come to my house and hang out if you want, but uh I mean the best option is probably to email me yael solidblog.co, and they can also whatsapp me and my number is somewhere.

B

um I mean I put it here in the chat but you're intending to post this recording.

B

So yeah, so that's my number and you can watch me. I go occasionally on telegram. If you alter our uh twitter yeah linkedin postal.

A

That's great anything else. You would like to say before we close the call.

B

um And I want to say thank you, everybody is coming here.

A

B

You see my screen because um I stopped sharing my screen. My phone number, um no, I just wanted to say just my phone number. I just want to say thank you for evaluating us and we appreciate this big team coming on the call you know giving suggestions, asking great questions, so you're all pleasure to work with.

A

Sounds good, so thank you very much for for coming out. It was really nice having you and thanks.

B

A

For for the nice, thank you thank you.