June 9: I’m in a hotel room in NYC: I stare nervously at the screen of my tiny, rose gold-colored computer. Thankfully, the WiFi is working well, – which is always unknown in a hotel. In an hour, an irrevocable online auction will begin. To be honest, I don’t know what will happen.
It all started in April of this year, when I wrote an article sharing the idea that real estate is the perfect asset to turn into a non-fungible token (NFT). This led to a life-changing collaboration with other innovators who came together to create something transformative.
I argued at the time that a real estate property was a perfect candidate for NFT because it was already behaves like a digital asset in a number of wayss. NFTing one offers a number of benefits, such as instant settlement, and a simpler overall transaction process – exactly the same young people who grew up with smart phones. Real estate transactions are long, tedious and archaic. I was hoping to show that it is possible to change this.
We have already seen a new generation of home buyers looking for other solutions beyond the status quo. Accustomed to the costly and lengthy, drawn-out process of home-buying, with a reliance on old-fashioned methods of business and multiple middlemen, they are demanding a transparent, “one-click” process that is quick, efficient and reflective of the era. in which they live. They wouldn’t want to buy a home, instead being involved in a horrible process.
After the article was published, I received numerous inquiries from real estate investors, agents, homebuyers, venture capitalists and coders about how they could get involved. I believed that consumers were ready for this innovation, just as they were ready to buy art on the blockchain. So I decided it was time to find out how to NFT an asset.
We have been working on this for years but there were some challenges left that we needed to solve:
- creating real nfts
- Wrapping up NFTs within the US legal framework
- Inventing “Know Your Customer” Process Because Most of the Art NFT Transactions Are Anonymous
We resolved NFT creation issues by changing property ownership from individual ownership to a US-based legal entity. By doing this we can easily transfer the ownership of the entity through NFT, which automatically transfers the ownership of the asset. And, as an added benefit, because the entity had title to the property, there was no need to record the title again in the county—saving significant time and money.
We then developed a protocol that would transfer assets from one wallet to another, collect personal names, and complete simple background checks – all of which ensured transaction integrity.
After addressing all the challenges, we found the right property for NFT – a studio apartment, owned by a US-based legal entity. It was also the first cryptocurrency asset purchased through smart contracts in 2017. Purchased by Michael Arrington, founder of TechCrunch and Arrington Capital, the NFT consisted of apartments and a piece of art by Chizz, a well-known local street artist.
With the creation of NFTs, we have scheduled a 24-hour auction on June 9, 2021. While I was worried at first that we would not have bidders, there were over 40 bids placed in the Ethereum cryptocurrency. The winner was a first-time home-buyer—a millennial from Silicon Valley. After a tense extension of 24 hours and six, 15-minutes, sitting in the same hotel, ordering room service not to miss a minute from the online miracle, I was relieved—it was all a success. The technology worked. People wanted this property.
The new NFT owner was thrilled with the process – it took only 22 minutes to transfer ownership – a far cry from his experience buying homes in the Bay Area, a process he found too complicated, so he never did. I came to know about his experience when he agreed to make a Zoom call after the sale. He shared his plans to rent the apartment historically, and told me he was prepared to pay double the price for this property.
NFTs or not, Millennials and Gen Zs are already buying expensive avatars, or high-value assets like automobiles, online. They expect equal ease and transparency while buying real estate. However, such transactions generally require a higher level of security and greater data integrity to prevent wire and other forms of cyber fraud. Real estate settlement on an immutable blockchain using NFT technology could be the solution to these new generation demand.
Ripple CEO Brad Garlinghouse, speaking at the Milken Institute’s 2021 Global Conference, said that “compromises on blockchain apply in many industries, including real estate, for any transaction that requires someone to reduce trust between transactions.” Is” [ participants],
Those who help consumers to NFT their homes may be entitled to royalty fees automatically paid to their digital wallets. These “NFT miners” (similar to cryptocurrency miners) can receive small royalties for every future purchase as compensation for making all data and assets transferable (title reports, inspection reports, disclosures ect).
Can NFTs revolutionize the real estate industry? I say absolutely! We are not just seeing interest among young buyers and sellers and tech-savvy crypto enthusiasts looking to diversify their portfolio.
Agents and brokers who are interested in setting themselves apart from the competition are actively learning and engaging in the crypto/NFT/blockchain space. When I asked his opinion about real estate NFTs at the recent Inman Real Estate Connect conference, the agency’s CEO Mauricio Umansky shared with me, “As clients become more educated about NFTs, NFTs Real Estate There is a growing interest in making Property. Changes in technology always align with changes in the real estate industry and, at the very least, it is a novel marketing tool to reach an audience interested in the metaverse. On the other hand, it could revolutionize our concept of real estate commodities and what customers would expect in a transaction. I am confident that NFTs will bring about a significant change in our industry.”
Once it is possible to NFT assets, NFTs will become collateral in the crypto world that unlocks crypto-enabled staking, where crypto holders pool liquidity to secure peer-to-peer decentralized lending markets for real estate. will be able to participate. For the current popular DeFi lending protocol for cryptocurrency. NFT, DeFi, crypto title insurance protocol, and crypto valuation solutions will form a full circle for the new era of liquid real estate. At the end of the day, the concept of homeownership is a social consensus Like NFT art.