New Law Tossed Grenade into Bezos & Thiel backed Startups

The passage of the 21st Century ROAD to Housing Act (“Act”) tossed a grenade into all but one of the 79 known real estate fractionalization startups.  The sole survivor, which has a model that is NOT applicable to the Act, is Brix Financial Technologies (“Brix”).  The fractionalization companies include the two below that are backed by iconic billionaires.

• Arrived, Amazon founder Jeff Bezos
• Ember, Facebook seed investor Peter Thiel

All of the companies had been competing to become the leader of Fractionalized or Tokenized real estate.  The winner will be in position to become the  NASDAQ for the newly emerging fractionalized category  within the real estate asset class. 

The new housing Act prohibits any business, entity or institution which holds, owns, or has control of 350 or more, single family homes from purchasing any additional properties. The Act effectively erected a gate which prevents institutions and corporations from growing their revenue streams and profits by making acquisitions.  The Act also prohibits mergers and acquisitions for entities that would result in the surviving entity having more than 350 homes. 

The two largest publicly traded single family home REITS have become bear fodder.  The shares of both have been and will continue to be under short selling pressure.

A market for fractionalized real estate (“FRE”) only became possible because of the development of the block chain and the passage of the JOBS Act in 2013.  The JOBS Act, enables issuers and funds etc., to purchase real assets and then to fractionalize them into securities that can be purchased by the masses.  It also afforded issuers with the opportunity to create a secondary market for holders of their securities. 

Despite the Act, the “residential real estate fractionalization genie” is not going back into the bottle.  The supply to fulfill the demand for investing in fractionalized and liquid residential real estate investments can still be provided by sole survivor, Brix.  The company was projected to be the leader of residential, including multi-family dwellings, prior to the Act becoming the law.  Brix has an organic model, which is much more highly scalable and viral, when  compared to the model of any existing competitor. 

Brix is able to circumvent the Act because of its extremely unique property acquisition model.  Under the model Brix does not purchase a property.  Brix instead, provides its proprietary mortgage elimination or reduction service to the existing owner or landlord of the residential rental property.  Brix then provides the secondary market for those investors, who acquire a minority stake, in each of the properties it fractionalizes.  Additionally, Brix enters into a evergreen property management contract with each of the properties which it fractionalizes.  Brix is a First Mover that is ideally positioned to become:

• largest manager of real assets in the US, if not the world
• The exclusive exchange, or the NASDAQ, for the secondary market trading of all fractionalized real estate securities.  

• largest manager of real assets in the US, if not the world
• The exclusive exchange, or the NASDAQ, for the secondary market trading of all fractionalized real estate securities.  

Residential is the key for Brix or any other competitor to have the foundation to dominate the fractionalization of all commercial real estate.  It’s the prized sector, and the first for commercial real estate to be targeted for fractionalization, because it’s the largest.  The sector is also the easiest for John Q. Public to understand and to invest in.  Residential, to the entire commercial real estate asset class, is akin to what books were to Amazon.  The books first strategy enabled Amazon to become the online consumer products retailing juggernaut. 

The new FRE asset class has been projected to become among the world’s largest by two leading market research firms:

• $3.0 Trillion by 2030, Boston Consulting Group
• $4.0 trillion by 2035, Deloitte

The projections by the two firms are realistic.  According to Clarion Partners Global Research, as of June 30, 2025, the investable universe for commercial real estate in US was $26.2 trillion. Therefore, Deloitte’s 2035 fractionalization projection would account for only 15% of all investable commercial real estate.  Housing’s portion equates to approximately $11 Trillion.  

The chart below was produced by Market Data Forecast.   It depicts that the US Commercial Real Estate market, consisting of sales and rentals, etc., will grow from $1.67 trillion in 2025 to $2.18  trillion by 2034, a compounded annual growth rate of 2.98%.

Residential real estate is an ideal sector for investment by both individual and institutional investors.  From 1940 to 2026, the median monthly rental income for a single family house in the US increased to $2100 per month as compared to $27.00, a compounded 5.19% annual growth rate.  The chart below is a great example.  It depicts that rents have steadily increased, and even, during the major 1974, 2008 and 2020 recessions.

AlphaTack’s chart for the period of 1963 to 2026 below depicts the median performance for the prices of  single family houses versus the S&P.  Note that during the S&P’s double digit correction periods single family houses were safe havens.

The majority of the trillions to be invested  into fractional real estate will be from institutional investors. The demand by professional investors to invest into fractionalized real estate and other investment categories that are not correlated to the S&P 500, has begun and will continue to accelerate.  The chart below is from Bain’s August 2024 report.  Bain projects that private assets held or managed by institutional investors and wealth managers, which include real estate, will reach $65 Trillion by 2032.  For perspective, the value of the S&P 500 as of July 30, 2026 was $67 Trillion.

The paragraph in italics below is an excerpt from the 10/01/2025 report “Fractional Ownership Platforms Compared: A Comprehensive Analysis for Institutional Investors” by REITX.   The report, even though it preceded President Trump’s announcing his plan to eliminate the big buyers,  is highly recommended.  It explains the role that fractionalization or tokenization has been, and will continue, playing for institutional investors, including pension funds.  Institutional investors are desperate to increase their real estate allocations to real estate.   The only way for a liquid market for real estate to be established is via  fractionalization. 

“For institutional investors, REITs, and property portfolio managers, navigating the expanding ecosystem of fractional ownership platforms requires detailed analysis of their structural differences, performance metrics, and strategic advantages. The tokenization of real estate assets—powered by blockchain technology and innovative financial structures—has created new paradigms for liquidity, transparency, and cross-border investment that were previously unattainable in traditional real estate markets.”
Source: Reitx

Brix has developed a system that will enable millions, if not billions, of investors throughout the world to acquire small portions of commercial real estate.  Brix’s establishment of a ubiquitous marketplace will result in the  percentage of assets that are allocated to commercial real estate by  institutional investors, including pension funds, to increase substantially.

The Act, has all but eliminated Brix’s potential competitors.  A moat has been effectively created for Brix.  The company is well positioned to become the largest provider of fractionalized real asset investment opportunities in the world.  Brix is the front runner to own and operate the world’s largest  real estate exchange.

The supply of residential properties that can be fractionalized by Brix is massive. The table below is from Brix’s Executive Summary.  It depicts that in 2024 there were approximately 17.5 million residential properties owned by individuals and limited partnerships.  87% of all residential rental properties in the US are held by individuals or limited partnerships. The vast majority of the property owners will want to utilize Brix.  A contraction for the US economy would only add fuel to the Brix fire.

Brix’s roots were planted during the Pandemic.  Its founder, Julio Caceres, found himself in a bind when the Governor of Florida issued a moratorium.  The edict prohibited landlords from evicting tenants whom were not paying the rent.  To save his properties from foreclosure Caceres solicited his friends and family to help pay off the mortgages for his properties. 

Brix was born out of necessity.  The story is similar to UBER, which was founded by Travis Kalanick after he was unable to hail a taxi in Paris on a frigid New Years Eve.

To date, Brix has fractionalized 29 properties.  The fractionalizations enabled it to gain valuable experience and insight to develop its fully automated systems and intellectual property.  The automated and SEC compliant system that has been under development enables:

• Property owner to reduce or eliminate the mortgage without the need for an appraisal
• Investors to legally own a portion of the property
• Liquidity for all stake holders

Brix’s model is highly scalable and profitable, which positions the company for exponential growth.  Unlike all of its now fledgling  competitors, Brix does not have to outlay cash to process or add a property.  Brix receives a  monthly cash fee from each of the properties which it processes.

Brix is wreaking havoc on the financial services and real estate industries.  It has the potential to be the most disruptive disruptor ever.  The commercial real estate industry is among the world’s oldest.  Mortgages have been in existence since the 12^th Century.  The Brix model eliminates or reduces the following:

• Available new real estate loans to be made by banks, etc.
• Interest income and revenue generated by banks and other financial institutions from making and servicing real estate loans
• Revenue and profit margins for property managers
• Real estate agent population
• Revenue for ancillary all real estate service providers:
  –  Law firms
  –  Appraisers
  –  Title companies
  –  Escrow agents

Brix has a growing backlog of properties.  The company will begin to process them as soon as the development of its automated and SEC compliant system is completed.  Viral growth is projected to begin by end of 2026 or early 2027.

Brix’s model produces positive cash flow.  However, the company has no intention to steadily grow its profits and cash flow.  Instead, Brix intends to fully leverage it first mover status.  Even though, the company is confident that its intellectual property can be protected, Brix’s plan is to take no prisoners.  Thus, the best defense to protect its first mover advantage is OFFENSE.

The plan is for Brix to raise an aggregate of $872 million via six funding rounds at increasingly higher company valuations through November of 2027.  The majority of the amount is to be used for marketing and advertising.  The spend for sales and marketing can provide the foundation for Brix to be valued for a projected $100 billion by 2032 and $1.0 trillion by 2035.

Brix is a cross between Airbnb and UBER.  The rideshare leader spent a significant amount of the funds that it raised via its private offerings for sales and marketing  activities.  The chart below depicts UBER’s multi-billion dollar annual advertising spends from 2016 to 2018.  See “Uber blew as much as $3.2 billion on advertising alone in 2018 on its way to one of the biggest US IPOs on record”, Business Insider 05/13/2019.

The majority of the cash to finance the ad spends came from UBER’s Series G, the last round prior to its IPO, which netted $5.8 billion.  At the IPO’s price, UBER had a valuation of $82.4 billion.  At 07/31/2026 UBER was valued for $155 billion. 

My research of UBER and the three other digital companies in the table below has been extensive.  Without having conducted the research, Brix would have never been identified by me.  The four were researched because a small investment in each of them enabled the investor to make fortune.  A $10,000 seed round investment in each of them from 2008 to 2012 increased to between $7.4 million for Snapchat and $570 million for UBER  by 2025. 

My career has been defined by researching the EXTREME positive and negative events that occur, or have occurred, such as the crash of 1929, etc.  Upon the cause being found an algorithm is then developed to predict and to profit from the next possible extreme event.  My research of Enron’s financials, the 7^th largest US company in June 2001,  after its infamous collapse into bankruptcy in December 2001, is a great example of my capabilities. 

The discovery of Enron’s cause of death enabled the  prediction for the collapses of Lehman and the four other brokers to be made.  The prediction was published  in a magazine, which was on newsstands, throughout the U.S.  See “Have Wall Street’s Brokers been Pigging Out?”, Equities Magazine, September 2007. 

The research of the four digital companies enabled the discovery of their shared common denominators.  The findings enabled Brix and three other digital companies that share the common denominators to be identified. 

The hundreds of millions that Brix intends to raise quickly will be from the utilization of a perpetual financing strategy (PFS).  The table below contains the projected valuations and time frames for the raises through November of 2027.  In Q4 of 2027, Brix is projected to reach a valuation of $10.8 billion.  Beyond 2027, Brix is projected to steadily increase, and to a valuation of $2.0 Trillion, through 2040.

The probability is high for Brix to raise almost  $900 million over the next 17 months while minimizing dilution.  The PFS is the same  strategy that was utilized by both Airbnb and UBER to support their viral and exponential growth.  The table below depicts that UBER in its early stages raised an aggregate of approximately $400 million from its B and C funding rounds within an 11 month period. 

Under the PFS a venture, or early stage company, architects a plan or a road map to automatically sell equity or shares at increasingly higher valuations.  Upon a round becoming fully subscribed, the funding activities automatically commence for the subsequent planned round.  A perpetually financed company, is always in the process to raise cash and, never sleeps. 

The PFS  is ideal for especially companies, which offer digital or downloadable applications, that are very disruptive to large and well established brick and mortar industries.  Digital companies are brutal competitors as they have little to no cost of goods or receivables.  They also have high gross margins.  Their models are the optimum for producing viral and exponential growth.     

Uber, the world’s largest transportation company does not own a vehicle.  Airbnb, the world’s largest lodging company  does not own a bed.  Brix has a high probability to become the largest manager and owner of US commercial  real estate.  Yet it will likely never be the sole owner of any one rental property.  For the record, Brix’s multi trillion addressable market is much larger than UBER’s.  The US ride share market is projected to reach $96 billion in 2030.

 The potential for brick and mortar industries to be digitally disrupted became possible after two things happened:

• Internet became commercially available in 1986
• Apple launch of I-Phone in 2007

The PFS is much more efficient than the traditional venture capital method for financing early stage companies with viral growth potential.  The biggest risk for a digital disruptor is not having the capacity to scale upon the its application or service having ignited viral demand.  The PFS anticipates the capital needs.  The  cash is provided much faster than even a just-in-time financing strategy. 

My experience with the PFS dates back to the 1980s.  It was utilized for the venture stage IPOs that were underwritten by me during my seven year stint as an  investment banker.  

The chart below is for Senior Service.  The venture stage company surfaced as an extremely lucrative investment opportunity through my research of prior extreme events.  Those investors who purchased its IPO and held the shares  until it was acquired by United Healthcare booked a gain of 1700%.

Adult day care provider Senior Service was identified because it possessed the same common denominators as Kindercare.  The child day care first mover was among the  250 companies that I had researched which had multiplied by a median 19 times from 1974 to 1983.

The PFS, which was constructed for Senior, enabled the company to raise the aggregate of approximately $24 million at valuations ranging from $5.4 to $41.4 million.  The cash laden  Balance Sheet enabled Senior’s  share price to never decline to below the IPO price throughout its history as a public company. 

The table below contains the PFS for EmotionTrac, another digital company, in AlphaTack’s stable, utilizing a PFS.  EmotionTrac, which is not a disruptor, was the first company that was identified after the common denominators for the researched digital companies were discovered.  The PFS has enabled valuation and share price to  increase by seven times since seed round.

Upon the model for a digital disruptor app being perfected the valuation of the disruptor can almost instantly increase to $10 billion.  There are three key reasons:

• The profit margin for a digital disruptor app increases incrementally for each new user installed.
• Apps that disrupt can spread by word of mouth and go viral.
• Utilization of a PFS enables momentum to be maintained

The June 13, 2026 video “Realty Brix, Real Estate’s UBER!” below is highly recommended.   It explained what was required for  UBER to perfect its rideshare app.  It  resulted in UBER  reaching a double digit billion  valuation within four years after it was founded.  Brix is projected to exceed the $10 billion threshold within five years of its founding.  The clip also includes an interview of Brix CEO and founder, Julio Caceres.  Mr. Caceres, during the interview, explained Brix’s perfecting its model.   

Realty Brix, Real Estate’s UBER! – MOTM June 13 2026

https://share.vidyard.com/watch/ZDYrXybKJ8sn1AzRP2PLUL

The table below contains the valuation projections and timetables for the four digital early stage companies that have been identified.  Each of the companies, including Brix and  EmotionTrac, have achievable valuations ranging from $500 Billion to $2.0 Trillion.  The company that has the potential to become the most valuable in the world is RYPPLZZ.  See “Passing of TEST Locks in $10B Valuation for RYPPLZZ”.

Please note.  The achievable valuation projections for the companies in the above table are determined by AlphaTack and not by the management of the respective companies.   A video that covers the addressable markets of the companies and most recent interviews of the management of each of the companies is available at https://savechangeworld.com/lhgs-information/  

Investment opportunities in Brix and the three other companies are available via the following:

• Direct investment
• Fund deploying a Liquid Hyper Growth Strategy (LHGS). LHGS enables investor to receive their original investment back by 2027 and remaining stake can be sold or held for gains that could potentially equate to 100 times or more return on original amount invested.    View video about LHGS.
• Fund deploying AlphaTack’s defensive growth strategy. Under strategy, monies are invested into assets that are un correlated with S&P 500.  This includes bonds (40%), hedge funds (15%), precious metals (15%), venture capital (20%) and real estate (10%).   Table below contains projected nominal values at 2035 per each $1.00 invested in 2026.   Table also includes nominal value of 10 year investment in S&P 500 at end of 2025.  For more about AlphaTack and defensive growth strategy view video.  

The report “HALF MILLION to BILLION by 2033?” is a highly recommended read.  It covers the Liquid Hyper Growth Strategy (LHGS).