PROPCHAIN Team 6 Nandita - PowerPoint Presentation

Slide1

PROPCHAIN

Team 6

Nandita

Beri,

Kevin Gannon,

Diya

Mathew,

Hunter

Rudd

The market for selling existing homes is large and inefficient

https://

www.nar.realtor/topics/existing-home-sales

http://

finance.yahoo.com/news/homeowners-regrets-buying-a-house-redfin-163113390.html

CAGR = 4.8%

5.5 million houses sold

last

year; market expected to grow

at 4

%.

1.1 million home buyers

wish they had better inspection, prior to purchase.

Repair after moving in can be

costly

and

inconvenient

.

Current purchasing process puts the sellers and buyers at risk

Hire a real-estate agent

F

ind the right property

Draft

a contract

Inspection & Appraisal

Ownership Transfer & Escrow Payments

Post Sale Issues

Superficial knowledge of house

Misaligned incentives

Time consuming

Insufficient information

Steps in Purchase

> $300

Hidden problems undetected

Managed by 3

rd

party escrow account

Faults uncovered

Insufficient information for repairs

Major Inefficiencies

Players Involved

Buyer

Agents

Buyer

Agents

Buyer

Agents

Lawyer

Notary

Buyer

Seller

Agents

InspectorAppraiser

BuyerSellerAgentsInsurerLawyer

Buyer

Insurer

Lawyer

Home owners are expected to maintain a timeline of events, with accurate records of receipts, scheduled maintenances and materials used, but

t

here is

NO

official file or form.Without records, contractors and repairmen won’t be able to provide the exact materials that were originally used

for the job.

Keeping track of home improvement, repairs and maintenance is very inefficient

When purchasing a house, the buyer might not get

full details

on the repair and additions done, which might

cost them in the future

.

Solution: Private, Permissioned

Blockchain

General Contractors

Property Owners

Inspectors & Appraisers

Sub-contractors

Material Providers

Real Estate Agents

Permissioned, multi-party verification

and security

Parties to a transaction verify and publish to the chain

Third-parties validate through cryptography to ensure immutability through nested transactions

Trustworthiness provided by consortium members having competing interests and civil and criminal liability

A single

blockchain

is created for each property thereby serving as an immutable record of relevant activity related to that property

Propchain

Example: Private, Permissioned

Blockchain

General Contractors

Property Owners

Inspectors

Sub-contractors

Material Providers

Property ID or Address

Publicly Visible

Private, Permissioned

Ownership Change

Real Estate Agents

Permissions to General Contractor

Permitting for project

Account Setup

for project

Materials Billing

Installation Services Rendered

Permissions to Sub-contractor

Registration of Title

Verification of work

Valuation & Sale Preparation

Multiparty Verification

Sale

Cycle

Propchain

Propchain

Property ID or Address

Publicly Visible

Private, Permissioned

Ownership Change

Permissions to General Contractor

Permitting for project

Account Setup

for project

Materials Billing

Installation Services Rendered

Permissions to Sub-contractor

Registration of Title

Verification of work

Valuation & Sale Preparation

Property ID or Address

Encrypted; Hash to Validate

Encrypted; Hash to Validate

Encrypted; Hash to Validate

Encrypted; Hash to Validate

Encrypted; Hash to Validate

Installation Services Rendered

Permissions to Sub-contractor

Registration of Title

Verification of work

Sub-contractor View

Owner

View

Example: Private, Permissioned

Blockchain

Blockchain

technology provides the best solution

Distributed Ledger

Remote independent writers

Existence in absence of trust

Disinter-mediation

Economic Benefits

Cryptographically secured

transactions by builders, home owners etc. benefit RE agents, home buyers in future.

Consensus network with

immutable

transactions and timestamps to serve as evidence in case of disputes.

Degree of

inspection

needed

reduced greatly

.

Some administrative staff for builders and suppliers no longer required.

Builders:

R

educed cost due to lower wastage

Buyers/Sellers:

B

etter info. for decision making

RE Agents:

Quick and transparent negotiations

Home ownership details & Price consensually shared and synchronized across network. Home inventory details shared with permissioned users.

Economic incentives for partners & consumers will get their buy - in

Business Partners

Losers

Material Suppliers

Government

General Contractors

Home Owners & Agents

Consumers

Administrative Staff

Lawyers & Appraisers

3

rd

Party like Escrow office

(in the long term)

Monetization

Strategy

General Contractors / Builders

Real Estate Agents

Inspectors / Appraisers

Value Proposition

Revenue Projections

Total revenue expected in Y2 of operation ~

12M

, expected to grow at CAGR of 4%

*Association

of Real Estate License Law Officials

Risk Analysis

RISKS

STEPS TO MITIGATE

Success of platform contingent upon reaching a critical mass of users

Offer

services free to

buyers

Free access to government/policy

makers

Limit to details that can be provided (cannot solely reply upon)

80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps

Complexity of inputs / technology intimidating to inexperienced users

Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)

Risk Analysis

RISKS

STEPS TO MITIGATE

Limit to details that can be provided (cannot solely reply upon)

80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps

Complexity of inputs / technology intimidating to inexperienced users

Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)

Success of platform contingent upon reaching a critical mass of users

Offer

services free to

buyers

Free access to government/policy

makers

Risk Analysis

RISKS

STEPS TO MITIGATE

Limit to details that can be provided (cannot solely reply upon)

80/20 rule: adequate to capture 80% of the information within a home on PropChain, allowing traditional inspectors to fill in gaps

Complexity of inputs / technology intimidating to inexperienced users

Implement a highly user-friendly, scalable interface (customizable views, filtering capabilities, etc.)

Success of platform contingent upon reaching a critical mass of users

Offer

services free to

buyers

Free access to government/policy

makers

Long Term Strategy