Zac Prince, previously known for his role as CEO of the now-recovering crypto lending firm BlockFi, has ventured into the real estate technology sector as the new CEO of RE Cost Seg. This company specializes in offering cost segregation studies, which are pivotal for real estate investors looking to leverage tax benefits through accelerated depreciation on their properties.

Introduction to Cost Segregation

Cost segregation studies meticulously analyze the components of a property to identify elements that qualify for accelerated depreciation. This tax strategy allows property owners to reduce their tax liabilities by expediting depreciation on specific parts of their property, such as plumbing, carpeting, and sidewalks. RE Cost Seg aims to democratize access to this tax-saving strategy, traditionally reserved for larger, commercial properties, by offering it at more accessible price points and through streamlined processes.

From Crypto to Real Estate

Zac Prince’s pivot to real estate marks a significant transition from his previous focus on retail-oriented cryptocurrency lending with BlockFi. BlockFi’s business model involved offering yields on Bitcoin investments and providing loans against cryptocurrency collateral. However, the firm’s operations were heavily impacted by the downfall of Alameda Research, a key counterparty, leading to substantial losses for BlockFi and its clients.

Despite the challenges faced by BlockFi, Prince is optimistic about his new venture in real estate technology. He emphasizes that while RE Cost Seg will cater primarily to institutional clients, it aims to also serve single-family property investors who were previously unable to access such tax benefits.

Transition and Closure

Prince’s decision to move on was influenced by the progress in resolving BlockFi’s bankruptcy issues and the positive direction of FTX estate recoveries. He expresses a sense of closure and readiness to embark on new professional journeys, signaling a fresh start in the real estate tech industry.

Settling Unfinished Business

Amidst his transition, Prince addressed a pending obligation from a public bet made with a notable figure in the Bitcoin community, promising to fulfill his commitment. This gesture not only settles his last bet related to BlockFi but also marks the end of an era as he fully embraces his new role at RE Cost Seg.