Crypto in the Real Estate Sector

It becomes clearer daily that the commercial real estate ecosystem is undeniably an integral part of global economic asset and transaction activities. As per recent reports, the real estate investment management market boasted an $8.5 trillion valuation, and this value has been on a geometric rise to date. However, even with the limitless possibilities embedded within this space, the real estate investment market is riddled with a great deal of siloed and independent networks, as well as transactional friction. Not to mention the opacity and lack of transparency that has become the sad reality between existing frameworks. Fortunately, the emergency of crypto and blockchain offers a pragmatic solution to this raging concern. These solutions can help the real estate investment market reach its maximum potential by offering a plethora of benefits. Now, the question is how?

How Can Crypto Work With Real Estate?

The most compelling avenue is via data securitization of properties. This is what we generally know as tokenization. Blockchain allows us to represent real-world assets with digital assets, including real estate funds, governance rights, real estate, revenue streams, among others. Once tokenized, these assets can be further broken down into granular pieces, with unparalleled accessibility to a sizable investors’ pool. Besides, tokenization of these assets facilitates security and compliance in digitizing transactions as well as activities that surround the relevant assets, including trading, cycle/ownership management, asset issuance, among others. Once your real estate property is tokenized, the following benefits follow naturally.

Benefits of Crypto in Real Estate

An ecosystem devoid of intermediaries

Bankers, brokers, and lawyers have long been the intermediaries associated with the real estate space. However, with blockchain, a change in roles and participation is imminent. The network can assume the functions of these intermediaries, and as such, buyers and sellers can cut out the exorbitant charges that accompany their services. Besides saving more cost, this also facilitates a faster and ecosystem devoid of opacity and insincerity.

Innovative marketplaces and platforms

Conventionally, every real estate technology primarily focuses on listing and linking sellers to buyers, and vice versa. However, cryptocurrency and blockchain technology, via assets tonnovative marketplaces and platforms tokenization, is ushering us into an entirely new approach to trading in real estate and creating a more comprehensive approach to trade. This instance could be seen in Überstate, where every real estate stakeholder can cohabitate in an ecosystem with quite a unique real asset trading functionality.

Decentralization

The security and trust attributable to the blockchain are large as a result of its decentralization. As a Decentralized technology, data stored on this network is visible to every peer on the chain, thus establishing a sense of transparency and immutability. In a nutshell, this builds trust into the framework and confidence in transacting real estate assets. With smart contracts, potential fraudulent intentions can be truncated, breeding a safe ground for both buyers and sellers alike.

Minimized costs

The level of transparency attributed to blockchain networks can also considerably cut down costs related to transactions. Besides costs of intermediaries and commissions, other charges such as loans, taxes, registrations fees, and other costs related to real estate can be brought to the barest minimum, depending.

Fractional ownership

The support for fractional ownership is yet another way crypto is lowering the barrier and serving as a bridge linking to real estate investment. Usually, investments need significant upfront to buy properties. However, by tokenizing real estate properties, investors can easily access their trading app to purchase or sell fractions of their tokens according to their discretion. Besides, this would also help them steer clear of needless demands and costs such as maintenance.

Liquidity

As you probably know, the real estate sales conclusion typically goes on for an extended period. So, real estate has always been widely regarded as an illiquid asset. However, the reverse is the case with crypto. In theory, crypto assets are readily transacted and exchanged into fiat via exchanges. By tokenizing real estate assets, we can deduce that real estate assets can also be readily traded. As a seller, you no longer have to wait for buyers that can purchase the entire property before you start accessing values from your property.

The Current State of the Real Estate Investment Market

The real estate space is typically an ecosystem where minor paper-dependent and slow activities can result in significant setbacks in ownership transfer. The presence of several stakeholders, sizable amounts, and unending regulations have always resulted in frictions, which has always been the sad reality of the framework. Besides, the lack of reliable data results in records duplication, redundancy, and opaqueness in the traditional system makes it relatively daunting to access a real-time overview of ongoing processes. Furthermore, as much info is stored offline, keeping property titles and recording them appropriately can be somewhat difficult. Usually, there are concerns relating to mortgage authenticity and documents, as well as data relating to property titles. Not to mention the daunting, time-consuming, and unreasonably demanding processes involved in finance processing.

But today, the current real estate landscape is experiencing a potentially disruptive evolution with crypto and blockchain as the primary driver. In a nutshell, crypto is on a steady course of slow penetration into the space. What we used to refer to as a pencil-paper-dependent process has started extending to markets globally with more robust and long-term results. As such, more and more investors have started nurturing interests in understanding blockchain concepts pertinent to real estate. While it could be said that blockchain is still in its infancy, it has, over the years, introduced several compelling and exciting possibilities into the real estate market. Today, numerous projects, such as Überstate, are already revolutionizing the real estate sector, and ushering it into the new digital realm.

The geometric traction of cryptocurrencies such as BTC and ETH has made more and more individuals buy and sell properties with crypto assets at the core of exchange. Especially, BTC real estate transactions keep rising daily. And today, several sellers are leveraging this space to facilitate more buzz and deprive more attention to properties they own.

All in all, cryptocurrencies and blockchain technology have done pretty well in correcting and addressing the inaccuracies and setbacks attributable to the industry. It has been quite able to facilitate real-time settlements of recorded transactions with satisfactory records on friction removal and risks minimization. Today, two parties can directly communicate and carry out transactions with one another. The p2p distributed ledger keeps a public record of every transaction and holds the evidence that they ever occurred. This, in itself, is a very pragmatic solution to preventing manipulation, abuse, and fraud.

How Überstate Transforming the Real Estate Sector

Überstate is essentially a platform introducing the benefits of blockchain and decentralization into the traditional or legacy real estate industry. In a nutshell, Überstate is an abbreviation for Uber Real Estate, which is a blockchain project that created the first scalable Defi cryptocurrency that real estate stakeholders may utilize for sales, purchases, as well as real estate leases worldwide. Überstate boasts a plethora of compelling products that would undoubtedly cater to various real estate intents, extending across investors, tenants, owners, as well as other stakeholders involved in the investment. At the core of this project is the RIT20 token, which is the primary driver of every activity associated with the platform.

Since its inception, Überstate has strived to nurture a thriving decentralized ecosystem, where everyone - who wants to relish the perks of holding digital assets while investing it – can access immense benefits as well as revenue-generating avenues that sees to their long term profitability. With RIT20, as a buyer on the platform, you can purchase security tokens that can signify limited partnership shares on the distributed ledger. The Überstate economy is pretty unique! Everyone is welcome, Investors, owners, tenants, etc. can all cohabitants, buy, sell or lease properties, with RIT20 as the primary driver of these processes.

To further facilitate its attractiveness to investors and buyers globally, Überstate holds the promise to create an ecosystem to manage properties by utilizing its native token for every nation, and at the same time, introducing sets of bots that are always ready to help and guide you in the real estate business. This is a pretty unique feature only a handful, if any, real estate project offers you. With this, you can streamline and optimize your processes and time as bots are available to cater to easier yet significant tasks.

With the Public Ethereum Blockchain as the core, Überstate pursues large-scale monetization and tokenization of real estate and as well, transforming investments into a more flexible and less opaque process via the distributed ledger. With this, it becomes almost indisputable that the real estate economy is about to witness something different with Überstate.

WWW.UBERSTATE.IO