And if you did… Did you think it would shake up the Real Estate Industry??
Let’s talk about a very real shift in our reality that will affect the future of Real Estate and therefore you, – your current and future homeowners and real estate investors.
What does NFT Stand for? Non-fungible token.
That doesn’t make it any clearer does it? Right, sorry. Non-fungible more or less means that it’s unique and cannot be replaced with something else. NFT is a unique token on a blockchain that certifies the ownership and uniqueness of a digital asset. NFTs are designed to give you something that can’t be copied. In terms of physical space, anyone can buy a Picasso print, but only one person can own the original.
So how can this online world of NFT move into the Real Estate World? Well, some NFT properties are being sold with actual, real-life buildings. To demonstrate how NFT and real estate in the real world can mesh beautifully, Techcrunch Founder, Michael Arrington sold his apartment in Kiev using NFT through a company called Propy. Shout out to Propy by the way, which is an Automated Real Estate Transaction Platform making waves! This NFT application I believe will be the first of many real estate transactions to come . The apartment was auctioned online but fully digitized because the transaction was secured online (just like you would say the escrow process) and it was paid for not with a currency like dollars but rather cryptocurrency. The reality of this transaction is now that it worked, you will probably see more NFT auctions coming to you through Proppy and you will begin to hear about the financing of real estate NFT rather than just traditional mortgage lending, allowing ownership of both the NFT and the physical property. Remember you can’t purchase NFT with your cash or stocks, but rather you need to buy a cryptocurrency and use that to purchase NFT. Essentially what I’m saying is begin to think about your digital wallet… This is just one of many applications I will share with you and it’s just the beginning. Hang on tight, the future is coming! If you want to see how to maximize the profit of your real estate assets using NFT strategies let’s talk!
Other real-world applications being tested right now are happening in California, Texas, and Florida. On the West Coast, in San Francisco, a living space called 20Mission has 41 rooms and is allowing people to bid for the right of 75 years to rent a room using NFT. This is the property of Jered Kenna, who is the first Bitcoin millionaire to do so. In other words, investors are purchasing the right to collect leases on those apartments and the right to sell their investment. In Houston a new condo building called 50 Briar Hollow, was sitting 70% empty and now is selling through Bitcoin and NFT. One of the great benefits of NFT is the original owner may receive royalties as it transfers hands in the future. So every time that property resales it could create a profit for the original owner and subsequent as well.
Regardless of where you stand with this NFT real estate craze, one thing is certain: Technology is driving the future of the real estate. As you may know, real estate is one of the longest-standing industries, and it’s not going anywhere anytime soon. As long as humans are inhabiting the world, there will be a need for real estate. It is why it’s the best place to invest here on Earth and the future may even hold space for digital real estate investing- who knows?
