Crypto and Real Estate/ Its happening
Any investors or Realtors like me looking to get educated on the world of Crypto and how its going to affect our industry? I have some great resources. Would love to open up dialogue and get the conversation going.
It’s come up a few times here in the forums. I think the consensus is, we still don’t know. Having looked into it and previously invested in crypto, I just don’t see the benefits right now. Transfer fees are generally more expensive than Western Union, and if they can’t beat that, then the only thing it’ll be good for is Russian oligarchs, hackers, pyramid schemes, and laundering drug money.
I think the impact will be huge. Just the prospect of simplifying the chain of title by registering the deed on the blockchain as an NFT will eliminate any uncertainty and the need to do any extensive title searches, obtain title insurance, etc. as it will all be public on the ledger. No possibility of any rogue transfers or unregistered deeds.
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@Aaron Reynolds
While this sounds great, good luck convincing rural counties in every state to let go of the person who has been there for 40 years because deeds will be recorded on block chain. There are still many counties today who do not allow e recording. In major cities - same thing try reducing staff in a major city.
While this is an easy use case for it, reality is it will happen most likely not happen In our lifetime due to politics.
Quote from @Aaron Reynolds:
I think the impact will be huge. Just the prospect of simplifying the chain of title by registering the deed on the blockchain as an NFT will eliminate any uncertainty and the need to do any extensive title searches, obtain title insurance, etc. as it will all be public on the ledger. No possibility of any rogue transfers or unregistered deeds.
I suspect you have little to no experience in searching and examining chains of title or an understanding of what causes the vast majority of title disputes or an understanding of what losses a title insurance policy indemnifies against. IMHO blockchains are unlikely to replace the current system in your lifetime.
Crypto real estate purchases are happening but they are very rare. Every once in awhile I will see a news blip about a property selling in LA, Miami or elsewhere using crypto. Its rare. I am not even sure how the nuances would work with the title company but that is a question to the title company. Financing is not possible, to my knowledge with crypto so its a non starter, at this point. Once there becomes a market for crypto backed loans then I can see the possibilities. I see that hedge funds are buying crypto positions so maybe it will happen soon. As of right now, its a rarity event for a real estate purchase to be pulled off with crypto. Its interesting
I think it's going to affect real estate in a big way and in a much shorter time frame than people think. Yes, real estate tends to move on the slower side when it comes to innovation but I will never bet against tech and its ability to strive toward eliminating inefficiencies (we can all admit real estate has a lot of them). As soon as we invent something that is better, safer, and easier to use...we will never go back to what we had before. Don't forget the MLS used to be a big book and consumers had very little info. The internet opened up the marketing and selling side of real estate and this next wave of web3 will open up and expand another layer of it.
It's my personal opinion that the use cases for blockchain in real estate will make themselves the most valuable in commercial real estate first and then trickle down towards residential. All real-world assets in the very near future will be digitized and investable via nft's and tokenization. Change is on the way and it will definitely happen much sooner than later. Look at how much has changed since the Iphone was introduced in 2007?! AI and Blockchain will be changing everything including how we buy, sell, analyze, and market real estate.