be_ixf;ym_202210 d_07; ct_50

Select Page

Real Estate Is Getting a Crypto-Fueled Upgrade

Real Estate Is Getting a Crypto-Fueled Upgrade

Last month I attended Miami NFT Week, a three-day conference on NFTs and cryptos.

On the first day, before I could even make my way into the building, I got swarmed by a group of people.

They handed me brochures and cards in which they called themselves “crypto-realtors.”

My first thought was, “Since when do you need a realtor to buy virtual property in the metaverse?”

Once they got into their sales pitch, I realized they dealt in traditional real estate.

They are “crypto-realtors” because they cater specifically to people involved with crypto.

As I listened to them, they explained exactly how they were serving their crypto clients.

That’s when I realized the real estate market is getting a crypto-fueled upgrade.

There’s a New Type of Real Estate Customer in Miami

These days the things you’ll see in downtown Miami are murals of NFT art and sky-high property prices.

These things are a result of Mayor Francis Suarez’s efforts to turn the city into a crypto hub.

There are crypto developers and investors moving to Miami.

The problem is most of these people are crypto rich and may not have much in the way of liquid capital.

It makes no sense to sell these cryptos before their valuations mature.

And it certainly makes no sense to trigger a huge taxable event by realizing these crypto gains.

Until now, the solution was to get a collateralized loan against their crypto holdings.

Except this is an unattractive option since interest rates for these loans can be as high as 14%.

Some startups in Miami tackled these problems by creating a next-generation mortgage product.

There’s Also a New Type of Mortgage Loan in Miami

This new crypto-backed mortgage looks very much like a traditional mortgage.

For example, it can be a 30-year mortgage secured by your bitcoin holdings with no down payment required.

The best part is the interest rate is between 3% and 6%. This is in line with the going rate for traditional 30-year mortgages right now.

And once you have secured the mortgage, you can make monthly payments in either cash or crypto.

The only way in which it’s different is the issue of tackling the volatility of crypto.

According to the loan terms of one startup, if your crypto-to-loan amount drops below 65%, you need to put up more crypto or cash.

Aside from that aspect, it’s designed to be a familiar and comfortable product for most people.

But this is just part of the story when it comes to real estate.

Cryptos are a growing part of everything from down payments to the transfer of property rights.

With the increasing utility of cryptos, now is the time to get involved.

And the best way to do that is with the “Next Gen Coin.”

Click here to watch Ian King’s presentation about this revolutionary coin.

Regards,

text

Andrew Prince

Research Analyst, Strategic Fortunes

Morning Movers

From open till noon Eastern time.

TransMedics Group Inc. (Nasdaq: TMDX) engages in transforming organ transplant therapy for end-stage organ failure patients. The stock is up 29% after several analysts raised their price targets on the stock following its strong first-quarter results and improved full-year guidance.

 

CarParts.com Inc. (Nasdaq: PRTS) is an online provider of aftermarket auto parts and accessories. The stock rose 26% after the company reported first-quarter results with record-breaking sales figures.

 

Super Micro Computer Inc. (Nasdaq: SMCI) develops and manufactures high-performance server and storage solutions. It is up 25% after the company reported third-quarter results that exceeded analyst expectations for the fourth consecutive quarter.

 

Bright Health Group Inc. (NYSE: BHG) is a health care company that provides health insurance policies in the U.S. The stock is up 22% after delivering a great first-quarter report that was helped by the growth in its virtual and in-person clinical care segment.

 

Livent Corp. (NYSE: LTHM) manufactures and sells performance lithium compounds primarily used in lithium-based batteries. It is up 21% after it reported strong first-quarter results that were driven by higher demand and prices for lithium products.

 

Superior Industries International Inc. (NYSE: SUP) designs, manufactures and sells aluminum wheels to original equipment manufacturers and aftermarket distributors. It is up 20% after achieving strong first-quarter results despite a challenging supply chain environment.

 

EHealth Inc. (Nasdaq: EHTH) operates a health insurance marketplace that provides consumer engagement, education and health insurance enrollment solutions. The stock climbed 20% after the company reported first-quarter results that were in line with plans to return the company to profitable growth.

 

Kimball International Inc. (Nasdaq: KBAL) manufactures and sells furniture products under several brand names internationally. It is up 15% after the company reported third-quarter results that put it on track to achieving the guidance it set out for the year.

 

BlueLinx Holdings Inc. (NYSE: BXC) distributes residential and commercial building products. The stock is up 16% after the company managed to beat first-quarter estimates and announced a $100 million share repurchase program.

 

A10 Networks Inc. (NYSE: ATEN) provides cybersecurity protection for 5G and multicloud networks and applications through automation and machine learning. It is up 12% after the company reported better-than-expected results for the first quarter that were driven by high demand for its cybersecurity and infrastructure solutions.

Share This