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.”
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