Blockchain and how it’s changing the future of Real Estate

Posted on June 25, 2021. Filed under: First Time Buyer help, Informed Investor Alliance, International Properties, Lenders & Loan info, Los Angeles Real Estate, Making Life Easier, Orange County Real Estate | Tags: , , , |

Tuned in to an interesting webinar this week hosted by Dan Smith with Eric Bryant from First American Data & Analytics; they were talking about real estate on the blockchain. Personally I can’t wait for this to happen, I spend half my life ‘grown up babysitting’ to maintain timelines and accountability during the escrow process. I know the blockchain will eliminate quite a bit of that.

Fibree is one of the first adopters, and they are now in 70 regions. They are a real estate technology platform that works with blockchain – keep an eye on them. Rather than talking about too many companies…let’s talk concept first.

What is Blockchain, and how does it affect real estate?

Blockchain defined: Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and traded on a blockchain network, reducing risk and cutting costs for all involved.

https://www.ibm.com/topics/what-is-blockchain

Now that you understand what blockchain is, here are a few specific ways it can positively affect the real estate industry as a whole:

  • Decreases time necessary to close property transactions (from 30-45 days down to possibly just minutes or hours)
  • Offers security, trust, and transparency to the transaction
  • Creates an unhackable public record
  • Reduces potential for real estate fraud or data entry errors
  • Streamlines the escrow process
  • Upholds accountability

Question? Will real estate transactions on the blockchain eliminate escrow agents? Transaction coordinators?

Notice we say “how does blockchain”, not “how can blockchain” affect the space. Blockchain is already starting integrations with real estate transactions, and it is likely the future of our industry, similar to the way the Internet disrupted the status quo (in a good way) many moons ago.

Fractional Property ownerships and Tokenization using Blockchain

Tokenization is simply digital fractionalization – it allows you to own a piece of something. Ever wanted to own a piece of a property? Or maybe you already own a traditional timeshare. Bet that was fun to buy, LOL. But what about finding your next investment from the comfort of your own home? RealT based in Detroit is currently selling real estate on the blockchain, and there are many others in the space expected to follow.

Investor groups and investment firms are already successfully selling STO (Secure Token Offering) properties and this opens doors for thousands of new buyers to enter into investing. Want to see? Check out SolidBlock – it looks like any normal property search site…BUT… you can pay with wire, check, or crypto. Soon enough, property search platforms like this will be popping up all over the world.

Another place you can buy land, the entire plot of it, is Fabrica, which allows you to buy or sell your land completely digitally with blockchain technology.

Smart Contracts and Real Estate Transactions

Smart contracts are digital transactions being coordinated on the blockchain, and they will help maintain timelines and accountability. Smart contracts are very similar to paper contracts, working on ‘if –> then’ scenarios, but everything is done virtually instead of with paper. Smart contracts have a higher level of security and they always report and record progress honestly…which does NOT happen all the time with our current escrow process.

One thing I found interesting is our local board of Realtors has over 10,000 members, and there were less than 50 of us watching this webinar. As usual, it seems like the real estate industry tends to cling to their ways. As a techie, I embrace new technology and try to help my clients ride the wave.

Crypto loans – Something to keep an eye on

One thing that could completely change the mortgage space is cryptocurrency loans. Wallets like Celsius and others use actual data to digitally approve loans, much better than the ‘preapprovals’ that lenders offer today. I would personally love to see more of this, because it eliminates loan discrimination and assures the seller a buyer is qualified. Plus, a crypto loan will close much quicker than the traditional big banks. Less headaches will equal more people in the space, and more homeowners, which makes my heart smile to think about.

If you’re sitting on a pile of crypto from the bull run and would like to ‘take profits’, we can help with escrow companies who are familiar with cryptocurrency closings. If you’d like to cash out crypto to buy a home, OR just transfer crypto coins for a home purchase without cashing out first, we can help with the proper referrals or team. Feel free to reach out and text Angie at 949-338-7408 or comment here anytime you’d like to talk tech & real estate!


Read Full Post | Make a Comment ( None so far )

Recently on Orange County Real Estate Success…

First Time Seller? Prepare Your Home for Sale – Our Top 5 Suggestions!

Posted on June 22, 2021. Filed under: First Time Buyer help |

Women finding freedom through the sharing economy of AirBnB

Posted on May 31, 2021. Filed under: Accessory Dwelling Units, AirBnB, FHA loans, First Time Buyer help, Homeownership, Informed Investor Alliance, Making Life Easier, OC Property Management, Orange County Real Estate, Property Mangement, Real Estate Stories, Summer fun | Tags: , , , , , |

Buying Property in South America: Ecuador, Columbia, & Argentina

Posted on April 15, 2021. Filed under: Buying in South America, Informed Investor Alliance, International Properties, Summer fun | Tags: , , , |

Building affordable housing on church properties and faith based campuses

Posted on March 13, 2021. Filed under: Accessory Dwelling Units, ADUs, Building, Construction, Making Life Easier, OC Charities, Real Estate Stories, Senior Communities | Tags: , , , , |

Find Your Next Home in Panama!

Posted on March 1, 2021. Filed under: First Time Buyer help | Tags: , , , , |

AirBnB Cancellations – What to Do?

Posted on January 30, 2021. Filed under: First Time Buyer help | Tags: , |

AirBnB Cancellations – What to Do?

Posted on January 30, 2021. Filed under: First Time Buyer help |

Where is YOUR happy place? Homeownership Day 2021 is going virtual, nationwide, & global.

Posted on December 23, 2020. Filed under: FHA loans, First Time Buyer help, Home Seller Tips, Homeownership, Homeownership Day, Informed Investor Alliance, International Properties, Los Angeles property, OC Home Fair, OC Property Management, Orange County Real Estate, Property Mangement, Real Estate Stories, Selling for top dollar, VA Loan | Tags: , , |

2021 Real Estate Market Predictions for Orange County, CA

Posted on October 28, 2020. Filed under: First Time Buyer help, Home Seller Tips, Informed Investor Alliance, Orange County Real Estate, Selling your home fast |

4 Ways to Decorate with Upcycled and Repurposed Items

Posted on October 17, 2020. Filed under: First Time Buyer help | Tags: , , |

History and Current Rules of Fair Housing

Posted on October 15, 2020. Filed under: First Time Buyer help, Home Seller Tips, Homeownership, Informed Investor Alliance, Making Life Easier | Tags: , , , , , |

Endorsed by NAR for Foreclosures and Short Sales

Posted on June 16, 2020. Filed under: Divorce, Foreclosure Assistance, Home Seller Tips, Homeownership during divorce, Lenders & Loan info, Making Life Easier, Orange County CA Foreclosures, Orange County Real Estate | Tags: , , , , |

New Property Trends: Modular Net Zero Homes

Posted on May 12, 2020. Filed under: Accessory Dwelling Units, ADUs, AirBnB, Building, Construction, First Time Buyer help, Homeownership, Informed Investor Alliance, International Properties, Smart Homes, Vow2Save Orange County Real Estate Registry | Tags: , , , , , , |

Need to Improve Your FICO Score? Women’s Credit Connection Can Help!

Posted on May 3, 2020. Filed under: First Time Buyer help |

Global Real Estate – Hot Spots & Tips to Buy in them

Posted on April 23, 2020. Filed under: AirBnB, Costa Rica Real Estate, First Time Buyer help, Homeownership, Informed Investor Alliance, International Properties | Tags: , , , , , , |

California Mortgage & Rent Help During COVID-19

Posted on April 6, 2020. Filed under: Homeownership, Informed Investor Alliance, Lenders & Loan info, Making Life Easier, Orange County CA Foreclosures, Orange County Real Estate, Property Mangement | Tags: , , , , , , , |

5 Things We’re Focusing on During COVID-19

Posted on March 24, 2020. Filed under: Home Improvement Ideas, Homeownership, Informed Investor Alliance, Orange County Real Estate, Orange County things to do, Organizing | Tags: , , , , , , |

Down Payments Holding You Back? Home Buying Hack: Silent Investors!

Posted on February 15, 2020. Filed under: First Time Buyer help, Homeownership, Owning Despite Student Debt |

Looking to Buy or Sell a Home? See You January 18th!

Posted on January 10, 2020. Filed under: First Time Buyer help, Home Improvement Ideas, Home Seller Tips, Homeownership, Homeownership during divorce, Making Life Easier, OC Home Fair, Organizing, Renting |

    About

    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

    RSS

    Subscribe Via RSS

    • Subscribe with Bloglines
    • Add your feed to Newsburst from CNET News.com
    • Subscribe in Google Reader
    • Add to My Yahoo!
    • Subscribe in NewsGator Online
    • The latest comments to all posts in RSS

    Meta

Liked it here?
Why not try sites on the blogroll...