It’s mind boggling that in the US alone, the top wealthiest 1% possess 40% of the nation’s wealth, while the bottom 80% own 7% – exhibiting wider disparities of wealth between rich and poor than any other major developed nation. According to National Bureau of Economic Research data, over the past three decades, there has been an acute problem of wealth inequality that continues to worsen. America’s most affluent families are increasing their net worth, and those at the bottom are living with debt exceeding their assets. A big reason for this gap is the inability to own property.
As a co-founder, Yael Tamar, CMO and Partner at SolidBlock, is trying to solve her own problem. She was born in the Soviet Union where there was no concept of ownership or growth of wealth. It was always a dream of hers to start investing one day in different asset classes but she encountered barriers to do so. One of the most common ways to create wealth is through real-estate, and yet very few people have access to these projects.
This morphed Yael’s life goal in creating a more just and equal world where everybody has the same opportunity to grow their money. In doing so, she structured SolidBlock to enable people to increase wealth through real-estate since it is a gateway asset class.
SolidBlock is here to make real-estate work for everybody. Historically, it has been the lowest risk asset class. Therefore, people with a little money on the side could put that to work through various development projects. Investors with limited education in investing can go in and start building wealth. Yael & Yuval, CEO at SolidBlock, are trying to build a much more liquid real-estate industry.
“Regulators and legislators should work towards a single standard of global trade. You have this on the public company level, but when we are talking about private assets that haven’t yet gone public, there are so many complexities to trading on the secondary market, especially with different countries and jurisdictions. We’re looking forward to solving a way to trade real-estate assets globally.”
How does it work? If you take a big asset, such as a fund for single-family homes or a multi-family development project that you need to invest $50M, you can either be one large investor or you can bring in a lot of smaller investors. With SolidBlock, you can invest in projects getting a 6-7% annual return instead of having your money receiving low returns in traditional investment vehicles. It carries a lot less risk than putting it in the stock market.
To learn more about SolidBlock, visit their website!