The Future Relevancy of Crypto in Real Estate

In early 2021, Miami legislators floated the idea of permitting residents the option of paying their property taxes and other city fees via cryptocurrency. Just months after this historic advancement, a luxury property was acquired by an anonymous buyer in a $28 million cryptocurrency exchange—the priciest crypto real estate deal in the country to date. All signs point to crypto playing an increasingly prominent role in all sectors of the economy—real estate included. Here is a closer look at some developing trends in the crypto space to help you stay ahead of the game.

Putting Transactions on Autopilot

Integrating blockchain platforms into the real estate industry offers a viable solution in terms of drastically enhancing the efficiency and security of future transactions. Crypto can be leveraged at all stages of the transactional process to prevent fraud and streamline the interchange of data, making the closing process a much simpler and hassle-free process. Nothing worries potential buyers more than unforeseen title issues arising after they’ve found their dream property. Blockchain adaptations could soon be used as a fool-proof method for banks, real estate agencies and buyers alike to effortlessly verify land ownership and quickly resolve issues associated with deeds or titles.

Contractual Innovations

Crypto technologies provide unrivaled efficiency utilizing what is now being referred to as ‘smart contracts’—which eliminate the need for third-party involvement. These digital agreements are comparable to traditional contracts, but they enable parties to securely memorialize all the details of the exchange and prevent any unwarranted alterations. From a practical standpoint, the majority of smart contracts integrate blockchain to securitize the financial details of the exchange. All currency transactions are automatically digitally recorded in the blockchain, creating a verifiable and permanent record. This eliminates any concern for disputes related to payment that may arise with conventional real estate contracts.

Purchasing Real Estate Assets

Cryptocurrency will increasingly be used as the primary method of paying for a piece of property. The development of new funding methods has led to the creation of several online platforms geared towards transacting goods in the digital space, including the buying and selling of property. For buyers looking for guidance and reassurance in using these volatile new currencies, investors now have the opportunity to use crypto as a means of circumventing the regulatory caps of international transfers imposed in some jurisdictions—allowing for the creation of a virtually borderless investing marketplace. This will significantly alter the real estate investment industry, empowering investors to securely and efficiently source income-producing assets across the globe regardless of where they physically reside.

Enhanced Efficiency

The continued integration of blockchain technologies will reduce the amount of time required to accomplish routine tasks associated with real estate investing. All parties to every transaction will eventually have instantaneous access to all the pertinent information of the deal stored on the blockchain, allowing them to reference everything from title deeds to payment history. When it comes time for payment, smart contracts could automatically disburse the appropriate funds to affiliated lawyers, property appraisers and real estate agents that took part in the deal. Put simply, crypto is an unprecedented revolution for the industry for all individuals involved.

A Partner You Can Trust

While the real estate investment industry is undoubtedly evolving, and will continue to do so in the future, there is one thing that will remain constant: you need a lender you can trust for efficient and innovative funding solutions. That is exactly what Express Capital Financing delivers. We have the experience and insight to assist you in adapting to the changing marketplace, allowing you to maximize your returns and stay ahead of the competition. Contact us today to learn more about how we can assist you in reaching your investment goals.