BlockFi CEO Zac Prince Makes a Pivot to Real Estate Tech
Zac Prince, former CEO of BlockFi, enters real estate technology as his failed crypto lending company moves towards a secure recovery.Ex-BlockFi CEO reveals new career move and resolves lost bet on his company’s bankruptcy.
📅 Published March 11, 2024 🕑 2 min read
⭐️ By Andrew Throuvalas
Zac Prince, the former CEO of BlockFi, the crypto lending firm that faced a turbulent period but is now on a safe path to recovery, has made a surprising move into the real estate tech industry. In a statement to X, Prince revealed that he is now the CEO of Re Cost Seg, a firm that specializes in providing cost segregation studies to real estate investors.
Understanding Cost Segregation Studies
Cost segregation studies involve meticulously surveying each element of a property and identifying items that can benefit from accelerated “depreciation.” This allows renovators to claim tax benefits by accelerating depreciation on specific elements such as plumbing fixtures, carpeting, and sidewalks.
- Eclipse Labs Raises $50 Million Funding for Ethereum Scaling Solution
- UAE adopts Cardano Blockchain to boost security in criminal investigations.
- 💥 Massive Unlock of Arbitrum (ARB) Tokens to Shake Crypto Market on March 16 💥
🔍 Related topic: How cost segregation can save real estate investors money
Prince emphasized the benefits of Re Cost Seg, stressing that due to lower price points and streamlined processes, this valuable tax-saving tool is now accessible to a broader range of real estate investors. Previously, it was primarily limited to larger commercial properties.
While the focus will still be on serving institutional clients, Prince mentioned that the company will also work with some single-family clients who were priced out of similar opportunities elsewhere.
From Crypto Lending to Real Estate Tech
Prince’s transition from leading a retail-oriented crypto lending firm, like BlockFi, to the real estate tech industry marks a significant pivot. BlockFi allowed average investors to earn a yield on their BTC and take out loans against their coins. Their business model involved rehypothecating these coins to institutional clients, allowing them to earn higher yields. However, the company suffered a setback when one of its largest counterparties, Alameda Research – FTX’s sister trading firm, faced a collapse.
🔍 Related topic: The rise and fall of BlockFi: Lessons learned
After over a year of dealing with the fallout from the bankruptcy, Prince feels comfortable moving on, with estate distributions in progress and positive trends in the FTX estate recoveries. He expressed that he has finally achieved the closure needed to explore new professional endeavors.
Settling One Last Bet
In the midst of this transition, Prince faced some playful criticism from his followers regarding an outstanding bet he made in public. In 2021, he made a bet with popular Bitcoiner @americanhodl8 on X, wagering 1 BTC on whether or not BlockFi would remain a functional company over the next 37 years. Unfortunately for Prince, BlockFi’s collapse within a year meant that he lost the bet and owed 1 BTC, which is now valued at over $72,000, to his Twitter adversary.
Prince, showing good sportsmanship, acknowledged the bet and committed to “get it sorted.”
Q&A: Addressing Readers’ Concerns
Q: Why did Zac Prince pivot from the crypto lending industry to real estate tech?
A: Zac Prince’s transition to real estate tech came after BlockFi faced challenges due to the collapse of one of its largest counterparties. With the company stabilizing and positive trends in the FTX estate recoveries, Prince felt it was an appropriate time to explore new professional opportunities.
Q: What are cost segregation studies, and how can they benefit real estate investors?
A: Cost segregation studies involve identifying elements of a property that can benefit from accelerated depreciation for tax purposes. Real estate investors can claim tax benefits by depreciating specific elements such as plumbing fixtures, carpeting, and sidewalks, resulting in potential tax savings.
Looking Ahead: Opportunities and Investment Recommendations
Prince’s move to the real estate tech industry reflects his adaptability and willingness to explore new avenues. The potential of cost segregation studies to revolutionize tax-saving strategies for real estate investors is immense. With the accessibility of this tool expanding to a broader group of investors, it presents exciting possibilities.
Investors seeking to diversify their portfolios should consider exploring real estate-related technologies and innovations, as they offer unique opportunities for growth and potential returns.
References
- How cost segregation can save real estate investors money
- The rise and fall of BlockFi: Lessons learned
- More related topics
- Follow Us on Google News
That’s all for now, folks! Let us know your thoughts on Zac Prince’s move from crypto lending to real estate tech, and be sure to share this article with your friends on social media!
📣 Remember to follow us on Twitter for all the latest updates and news in the blockchain and financial world! 🌐@YourTwitterHandle
We will continue to update Blocking; if you have any questions or suggestions, please contact us!
Was this article helpful?
93 out of 132 found this helpful
Related articles
- ETH Surges Above $4,000: What This Means for Crypto Investors
- zkLink Nova Launches as the First Aggregated Layer 3 zkEVM Rollup Network
- Unizen promises immediate reimbursement for victims of $2.1M hack and pledges to enhance security measures.
- Beware of Crypto Phishing Scams on Social Media! 😱🚫
- MakerDAO Proposal Seeks Emergency Rate Adjustment to Address Market Challenges
- Major Russian Companies Will Be Forced to Accept Digital Ruble Payments, While CBDC Reluctance Persists
- K Bank, the South Korean Crypto Success Story, Aims for IPO