As the cryptocurrency craze shows no sign of slowing down, people remain curious about how they can leverage cryptocurrencies and related technologies in the housing and real estate industries.
In addition to an increase of cryptocurrencies being used in real estate transactions, more companies and real estate professionals are now incorporating blockchain technology, the ledger tech that cryptocurrencies use, in their real estate transactions.
One of these newcomers is Engelo Rumora, who said he recently closed a real estate deal that used a cryptocurrency as a down payment. The excerpts below are from a blog post detailing the transaction.
So we didn’t close the entire transaction in crypto, but this is what we did do. We approached our title company and said we had someone who wanted to buy a property from us using crypto. We said we were happy to accept the first deposit on that property, around $10,000 in cryptocurrency, and then the rest could be processed through traditional means. We asked the title company how we could get the deposit in cryptocurrency—but understand, our title company is not educated on how to close via cryptocurrency.
From there, Rumora explained he set up a cryptocurrency wallet to receive $10,000 in Ethereum tokens. While he was cautious about using cryptocurrency, Rumora explained he believes it could change real estate in a big way.
There is actually very good technology behind the cryptocurrencies that makes a lot of sense. I didn’t want to jump on board early on, but I had no choice because I realized that it was too big to fail and there are too many people and companies that are adopting this. I honestly think that real estate is going to be changed in a big way, so stay tuned for what’s to come.
In the future, expect to see more of this as the industry decides what to do with cryptocurrencies. There may not be a blockchain or crypto revolution, but the way things are going, you may see an increase in both blockchain's ledger technology and cryptocurrency technology in real estate.