Concierge · Chapter 09

Exit Options & Liquidity

How and when an investor can convert a fraction back into cash.

How can I exit my investment?

Two exit routes are contemplated: resale of your fraction through an internal marketplace, and a full exit through sale of the entire property (where applicable, and typically requiring alignment among fraction holders or a triggering event defined in the FHA).

Is there a secondary market where I can sell my fraction to another investor?

An internal marketplace for resale of fractions is part of the intended exit infrastructure. The maturity, liquidity and mechanics of this marketplace (for example, how a buyer is matched, how pricing is determined, and what fees apply) should be confirmed at the time of investing, as marketplace liquidity in fractional real estate is inherently more limited than in listed securities.

Is fractional real estate a liquid investment?

No. Real assets, including fractional real estate, are generally less liquid than listed securities such as stocks or bonds. Investors should treat Blockx Fractional investments as medium- to long-term commitments and size their allocation accordingly, rather than assuming they can exit on short notice.

Do I need approval from other fraction holders, or from Blockx, to sell my fraction?

The FHA defines your right to transfer or exit, including any procedures, approvals, or rights of first refusal that may apply. These transfer procedures are set out specifically in each Fraction Holder Agreement and should be reviewed before investing.

What determines the price at which I can resell my fraction?

Resale pricing is generally a function of the asset's current market value, its income performance since acquisition, and prevailing demand for fractions in that asset at the time of sale. Any specific valuation methodology used for internal marketplace transactions should be confirmed in the offering documentation.

What triggers a full exit (sale of the entire property)?

Full exit triggers — whether a fixed investment horizon, a supermajority vote of fraction holders, an unsolicited offer above a defined threshold, or another mechanism — are defined per offering in the FHA and should be reviewed and understood before committing capital.