1. Innovative. Like the digital twin
Innovative. Like the digital twin. However, easier to pull off in a regulatory laden environment. I worry that some will have the incentive of doing off chain repairs. Just like people take their car in for a repair and do not report to insurance company. More info on the specifics of the blockchain implementation would be good too. Very nice.
87/100

2. Team 6 Nandita Beri, Kevin Gannon, Diya Mathew, Hunter Rudd
PROPCHAIN
Team 6
Nandita Beri, Kevin Gannon, Diya Mathew, Hunter Rudd

3. The market for selling existing homes is large and inefficient
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.
CAGR = 4.8%

4. Current purchasing process puts the sellers and buyers at risk
Ownership Transfer & Escrow Payments
Steps in Purchase
Hire a real-estate agent
Find the right property
Draft a contract
Inspection & Appraisal
Post Sale Issues
Players Involved
Buyer
Agents
Buyer
Agents
Buyer
Agents
Lawyer
Notary
Buyer
Seller
Agents
Inspector
Appraiser
Buyer
Seller
Agents
Insurer
Lawyer
Buyer
Insurer
Lawyer
Misaligned incentives
Superficial knowledge of house
Time consuming
Insufficient information
> $300
Hidden problems undetected
Major Inefficiencies
Managed by 3rd party escrow account
Faults uncovered
Insufficient information for repairs

5. Keeping track of home improvement, repairs and maintenance is very inefficient
Home owners are expected to maintain a timeline of events, with accurate records of receipts, scheduled maintenances and materials used, but there 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.
When purchasing a house, the buyer might not get full details on the repair and additions done, which might cost them in the future.

6. Inspectors & Appraisers
Solution: Private, Permissioned Blockchain
Propchain
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
Property Owners
General Contractors
Real Estate Agents
Permissioned, multi-party verification and security
Material Providers
Inspectors & Appraisers
Sub-contractors

7. Example: Private, Permissioned Blockchain
Propchain
Publicly Visible
Property ID or Address
Private, Permissioned
Registration of Title
Real Estate Agents
Ownership Change
Property Owners
Permissions to General Contractor
Permitting for project
General Contractors
Sale
Cycle
Multiparty Verification
Account Setup for project
Sub-contractors
Materials Billing
Permissions to Sub-contractor
Material Providers
Installation Services Rendered
Inspectors
Verification of work
Valuation & Sale Preparation

8. Example: Private, Permissioned Blockchain
Propchain
Property ID or Address
Property ID or Address
Publicly Visible
Private, Permissioned
Registration of Title
Registration of Title
Ownership Change
Encrypted; Hash to Validate
Permissions to General Contractor
Encrypted; Hash to Validate
Permitting for project
Encrypted; Hash to Validate
Owner
View
Account Setup for project
Encrypted; Hash to Validate
Materials Billing
Sub-contractor View
Encrypted; Hash to Validate
Permissions to Sub-contractor
Permissions to Sub-contractor
Installation Services Rendered
Installation Services Rendered
Verification of work
Verification of work
Valuation & Sale Preparation

9. Blockchain technology provides the best solution
Home ownership details & Price consensually shared and synchronized across network. Home inventory details shared with permissioned users.
Distributed Ledger
Remote independent writers
Existence in absence of trust
Disinter-mediation
Economic Benefits
Builders: Reduced cost due to lower wastage
Buyers/Sellers: Better info. for decision making
RE Agents: Quick and transparent negotiations
Cryptographically secured transactions by builders, home owners etc. benefit RE agents, home buyers in future.
Degree of inspection needed reduced greatly.
Some administrative staff for builders and suppliers no longer required.
Consensus network with immutable transactions and timestamps to serve as evidence in case of disputes.

10. Economic incentives for partners & consumers will get their buy - in
Business Partners
Consumers
Material Suppliers
Government
General Contractors
Home Owners & Agents
Losers
Administrative Staff
Lawyers & Appraisers
3rd Party like Escrow office
(in the long term)

11. Monetization Strategy
General Contractors / Builders
Real Estate Agents
Inspectors / Appraisers
Subscription Fee
Decreases admin fees
Reduces expenses attributable to overages
Fee per property
Accurate Pricing
Accelerate deal flow
Reduces time and effort spent on valuing the property
Value Proposition

12. Inspectors / Appraisers
Revenue Projections
Annual Subscription Fee
Contractors
Top 280 contractors in US earn an average of $30M annually.
Average small contractor earns $1.2M.
There are 650,000 registered contactors in US.
GOAL: Capture 1% of the market and charge 0.1% subscription fee  ~ $7.8M
Fee per property (commission-based)
Real Estate Agents
Most real estate agents earn a median salary of $36,000.
Top producers sell at least one home a month and earn around $150,000.
ARELLO* estimates 2M active real estate licenses in the US.
GOAL: Capture 5% of the market and charge 0.1% commission fee per property  $3.6M
Fee per property
Inspectors / Appraisers
Average home inspector/appraiser earns $70,000 annually.
There are 96,000 inspectors and appraisers in US.
5M homes were inspected in 2015.
GOAL: Capture 5% of the market and charge them 0.1% fee  $340k
Total revenue expected in Y2 of operation ~ 12M, expected to grow at CAGR of 4%
*Association of Real Estate License Law Officials

13. 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.)

14. 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.)

15. 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.)

16. Government / Policy Makers
Long Term Strategy
Ability to transfer title - Simplifies a cumbersome legal process, saving significant time and money
Sellers & Buyers
More accurately reflects value of property additions (for tax monitoring purposes)
Government / Policy Makers