A 100 Billion Dollar Value Game


By deploying Intangibles, The Ingenesist Project offers a simple Value Game worth upwards of 100 billion dollars.  This value is currently underwritten by the insurance industry as water damage risk that can be reassessed at pennies on the dollar and transformed to liquidity in the real estate market.

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The Problem: 

The condominium maintenance and reconstruction industry is enormous.  Condominium associations are challenged to manage modern maintenance and construction practices. The insurance industry covers perils such as water damage through the roof, building envelope, ground water, or plumbing system.  Many of these critical systems are coming of terminal age. 

Magnitude of the problem:

In 1990, there were about 4.5 million condominium units in the US.  41% were built before 1980.  The US has added approximately 1,000,000 condominium units per decade.  Water intrusion failures can cost up to $10.00 per square foot per exposure.  The insurance industry covers over 10 billion square feet – a $100 billion risk pool.   

Innovation:

The vast majority of water failures can be avoided with minimal and timely engineering interaction for a wise and engaged community.   Unfortunately, this is not the natural course of events in shared asset communities.

The Value Game can help the condominium community to self-manage as a collaborative social network instead of a collection of competing interests.  This may eliminate negligence, substandard maintenance, construction defects and associated litigation. Arguably, these are the most significant cause of water intrusion failures.

Technology:

The Value Game, in essence, creates a social network for the building.  The Game creates a system of incentives where stakeholders are rewarded for acting in the best interest of the shared asset.  Players include residents, engineers, maintenance personnel, insurance carriers, bankers, real estate market, as well as the larger neighborhood community.  All collaborate to preserve the asset.  The Value Game is infinitely scalable using existing Internet technologies. 

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100 billion dollars is the amount of money on the game table being adjusted, pooled, and diversified against risk exposures.  The value game causes the “plays” to be modified by any of the players.  When hedged with Real Estate valuation, liquidity can be substantial for all of the players changing incentives strongly in favor of collaboration rather than competition.

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