Epic Real Estate Investing - How Will Blockchain Affect Real Estate | 1231

Episode Date: August 30, 2022

Almost every day, technology is giving us new opportunities and possibilities in doing the things we do. How to grab them? Well, in the field of real estate, it gave us the innovative program, blockchain. Now, how can blockchain bring about change or affect real estate? Stay tuned and listen to Matt showing that to you in this episode. Are you ready? Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. How will blockchain affect real estate? Well, it's going to transform the industry by unrecognizable proportions, and the innovation is far from over. But there are some things we know right now. I'm going to share them with you. You ready? Let's go.

Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs, your source for housing market updates, creative investing strategies, and everything else you need to retire early. Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, Epicurei.tv. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to reiase.com.

Here's Matt. All right, so by the time we're done here, you'll know what the blockchain is and how it's destined to impact the real estate industry to links that we couldn't have imagined just a few years ago. You know, it was just last year, the mayor of Miami proposed allowing people to pay property taxes or city fees with cryptocurrency. Then shortly after, a Miami penthouse sold to an anonymous buyer for $28 million, paid entirely in cryptocurrency, making it the most expensive known, residential crypto real estate transaction in the U.S. to date.

And when people hear blockchain, they immediately think cryptocurrency, yet that's a very small part of what makes up the blockchain and its currently countless use cases. A blockchain, it's a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Now, blockchains, as I mentioned, are best known for their crucial role in cryptocurrency systems such as Bitcoin for maintaining a secure and decentralized record of transactions. The innovation with the blockchain is that it guarantees the fidelity and security of a record

of data and generates trust without the need of a trusted third party, potentially making it a huge disruptor to the real estate industry in a number of ways. The first example, automated transactions. Blockchain platforms associated with the real estate industry provide an answer in terms of speed and safety that can considerably reduce the risk of fraud. And it doesn't stop there. I mean, all stages of the real estate transaction are concerned by this innovative technology and its implications for simplifying the transmission of data and reducing the time between

the signing of the preliminary sales agreement and the deed of sale before the notary. If this new digital architecture undoubtedly allows the automation of real estate transactions, you should know that its use has already gone beyond the project state. This is extremely interesting in terms of places where corruption or lack of transparency complicate the question of who owns a piece of real estate. We can consider blockchain a tool to visualize the status of properties and deeds, granting full access to the history of the property or land. It can be consulted at any time and without limit by banks, real estate agencies, buyers, and sellers. Second, the creation of real estate smart contracts. The blockchain offers unparalleled speed via the establishment of smart contracts,

which do not require the intervention of third parties. These digitalized contracts are equivalent in some ways to paper contracts. However, they allow parties to secure all the information contained and to prevent their modification. In practice, the majority of smart contracts are used in the automation of value exchanges in the form of virtual currencies, the crypto assets. All the accounting entries corresponding to these exchanges, of digital values are automatically recorded in the blockchain, making the transfers visible and immutable. The conditions of these smart contracts leave no room for doubt or the interpretation

that's present in our everyday transactions now. And then third, buying real estate. This advanced digital technology could facilitate future real estate transactions such as the acquisition of new properties via cryptocurrencies. In fact, some startups are now banking on buying and selling homes and cryptocurrencies as a means of payment. The arrival of new kinds of funding means that platforms dedicated to buying and selling goods online are being created. It's happening right now. If buyers are in need of guidance and certainty in the face of these extremely volatile currencies, some investors see in these new payment methods an alternative to bypass the limits imposed on the amounts of international transfers enforced

in some countries. Fourth, investment accessibility. Real estate investing has long been exclusionary and time consuming. You know, whether you're investing in In a single-family home or a multi-unit property, you need to involve multiple parties in the due diligence process. You also need capital and frequently a lot. With blockchain technology, multiple people can buy tokens of a particular property and co-own the building. This is the tokenization of a property, allowing fractional or partial ownership of that asset.

tokenization also allows real estate to be a more liquid commodity, meaning that owners can easily buy or sell their shares cheaper and fast. Therefore, this process attracts more potential investors and buyers in the real estate market by democratizing and decentralizing it. The fifth example, property listings. You know, most property listing services available today are privately owned and don't have a centralized database for cross-referencing. You know, real estate is historically a pen and pencil business, often relying on old and inefficient methods to keep track of transactions and records.

Even worse, those services often require users to pay hefty subscribers. description fee. However, moving those property listing services to a single decentralized, blockchain-based server creates a uniform and secure database accessible to everyone. For example, prospects can use decentralized finance, also referred to as defy. They can use those types of services to make unbiased investments or purchasing decisions. Also, since the data is vetted and stored securely, third parties can't interfere with it by inflating the price or listing fraudulent information. And there is certainly more innovation. to come driven by the objectives of blockchain for real estate.

So if at present time smart contracts could allow real estate transfers to be made, it is also possible to imagine that they could be programmed according to the assets and the different stakeholders, such as transfers could be carried out in an automatic way according to the conditions previously defined in that contract. One could also imagine automatically paying the attorneys, appraisers, brokers, and all-involved parties when a property is sold. Just happens automatically. blockchain significantly accelerates the usual processes of the real estate market,

as users have access to all the information stored in the blockchain. They will save a considerable amount of time and obtaining data relating to a property or land. Title deeds, land registry, technical information and surveys, co-ownership information. I mean, all of it becomes available 24-7 with real-time data and instant validation. This technology is a real revolution for real estate professionals and investors alike. I mean, if the Internet has revolutionized the commercial sector in recent years through the development of marketplaces, the blockchain stands to change the real estate sector in terms of fluidity and distribution of information and transactions. As the blockchain could shake up entire sectors of our global economy, all real estate professions are now concerned with the blockchain,

from recording and funding to transactions, from real estate investment to appraisals to asset management. There are some hurdles to adoption, however. transparency is at the core of every transaction. So while we try as much as possible to incorporate it in everything that we do, eventually the current, obscured way of buying and selling homes will be a thing of the past. But it's not the answer to all the problems in the real estate business. However, with blockchain technology, we now have a system that increases trust and reduces real estate broker dependency, while improving cost efficiency,

accelerating transfers of homes, and most importantly, opening up avenues for networking by creating a digital platform other services can tie into. I am pretty certain that a decade from now, we will look at the current purchase process and wonder how we transacted without smart contracts. The same way we wonder right now, how did people ever get along without a cell phone? And even if this seems a bit far away still,

there is reason to believe it will soon be a norm for the real estate industry much sooner than one might have thought. In the real estate market, the advice, knowledge, and know-how of real estate professionals will remain crucial to commercial buyers. However, the processing of securities, liability management, document processing,

and accounting will inevitably change. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them.

God loves you, and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Yeah, yeah, we got the cash flow You didn't know home for us, we got the cash flow This podcast is a part of the C-suite Radio Network For more top business podcasts,

visit c-sweetradio.com