Blockchain Integration For Major Property Portals

Blockchain Integration For Major Property Portals

RECBL - Real Estate News

CryptoProperties LLC – or “CPROP” for short – is aiming to deliver “unprecedented levels of trust and transparency” in the sector by removing “unclear and disjointed processes” that generate anxiety and frustration for buyers and sellers alike, such as repetitive paperwork that lead to unexpected delays and costs.

At present, the company claims paper-driven, offline closing processes are the norm worldwide. These “inefficiencies” can cause delays and in some cases, cause transactions to fail altogether.

CPROP plans its plug-and-play platform will be used by leading property portals and brokerages websites, with users guided through every step of buying a new home.

Blockchain technology will be used at key points in the process, such as when buyers are usually required to “hold” a property with a good faith deposit during the due diligence phase. CPROP says its platform would use smart contracts to establish an escrow – providing users with “maximum protection and peace of mind.” Blockchain would also be used to authenticate documents generated during a transaction, including deed-related records to provide a back-up to government property registries.

CPROP will also offer a feature called Critical Path, which enables all parties involved in a transaction to focus on tasks that need to be completed so a deal can be closed “in the shortest period of time.”

“Ideal marriage of convenience”

When prospective homebuyers are perusing a property portal, they would be given the opportunity to start using CPROP’s service through a “Help Me Buy This Property” button. This leads them to a free onboarding process where they will be given the option to select user-rated service providers such real estate agents and lawyers, with guides and FAQs providing information and assistance every step of the way.

CPROP says real estate agents also stand to benefit from its platform because it will be configured with standardized document templates appropriate for local jurisdictions and a user-friendly task management system. As a result, the company says these professionals will have more time to focus on the activities which generate the most revenue: acquiring new clients and listings.

Other providers such as contractors, inspectors, mortgage brokers and decorators could also gain an additional sales channel through CPROP – as favorable user reviews left for them on the platform would be used by remote and international buyers to find a trustworthy, local service. Overall, the platform will provide all service providers with a cost-efficient way to gain visibility to prospective buyers they would not normally be able to reach.

The company says its plan to establish partnerships with existing portals and brokerages could amount to an “ideal marriage of convenience.” While CPROP would benefit from portals’ existing web traffic and listings, these companies would retain their relationship with buyers through the closing, positioning for additional revenue opportunities while having the chance to “differentiate their brand with a practical blockchain offering.”

The company’s initial revenue would be generated through membership fees, which are paid for using the specially created CPROP token. Other potential revenue streams for the future include archiving and retrieving data, advertising, and administrative fees when property deals are closed.

Positive reviews for demo platform

CPROP says a recently launched demo website has been “enthusiastically received” by property portals and brokerages – with the platform’s development continually shaped based on feedback the company is given. Beta testing is planned with “multiple parties” this year, paving the way for a commercial rollout in 2019.

While its initial demo is designed for the US, where real estate transactions are “complex, legally intensive and costly,” the company believes its platform can be easily adapted to other markets – and “active discussions” are underway with property portals in Europe and Asia.

One of CPROP’s leaders, Adam Koehler, has enjoyed past success as a co-founder of Dotloop, another property tech company. That company automated real estate purchase agreements – and it was sold to Zillow, a “major world player,” in 2015.The company’s ICO is planned for May 21 to June 10.


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Jason Grace is AZ Social Realty's content editor. Email him your real estate news ideas at jason@cashbuyerslists.com.

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Cryptocurrencies Gaining Traction in Real Estate...A Blockchain Future?

Cryptocurrencies Gaining Traction in Real Estate...A Blockchain Future?

RECBL - Real Estate News

Bitcoin started out as blockchain technology with an innovative ideology for a more secure monetary future, and is now taking hold in the real estate world. Bitcoin and other cryptocurrencies, although not yet mainstream, show promise in an industry that typically prioritizes buyers who can provide secure funds for a property in a short amount of time.

Widely misunderstood, cryptocurrencies work through blockchain technology that creates a linear series of blocks of code, which are then used to create a record of each transaction and its access point.

The technology uses unique access codes that can be used from nearly anywhere in order to share data in a transaction. Essentially, Bitcoin and other forms of blockchain currencies cut out a central authority, using varying individuals to authorize the payment in order to ensure an impartial and secure transaction.

Some alternative blockchain currencies have wavered in price steadiness, but Bitcoin has consistently gained since its initial unveiling in 2009. Bitcoins value skyrocketed to nearly $20 million between July and December, and has now leveled off to around $16 million.

Bitcoin boasts the following advantages (on its website):

• Freedom to make or receive payments from anywhere in the world and at any time
• Fees are not tied to the transfer amount and can be chosen at the discretion of the user.
• Transactions are more secure because they do not contain sensitive customer information.
• Users can protect their funds with added backup methods and encryptions.
• The Bitcoin supply is transparent and cannot be manipulated because it is cryptographically secure.

More and more real estate businesses related to Bitcoin and other cryptocurrencies are beginning to form. One, the International Blockchain Real Estate Association, is a trade organization that was founded in 2013 and implements blockchain in real estate. The association states that using cryptocurrencies in a real estate transaction can "reduce costs, stamp out fraud, speed up transactions, increase financial privacy, internationalize markets and make real estate a liquid asset," according to its website.

But the technology is not without its vulnerabilities. While the unique codes provide some measure of security, they alone cannot prevent cyber fraud. Just last month, a Youbit heist in North Korea made international headlines as one occurrence in a series of events to try and steal from cryptocurrency exchanges and individual investors. Even Bitcoin is aware of its own challenges; its website cites that the degree of acceptance is low, currency volatility is an issue and the software is still undergoing development in order to make it more secure and accessible to the masses.

Bitcoin also needs to compete against multiple popular cryptocurrencies if it wants to stay on top. Here are the biggest contenders:

• Ethereum
• Ripple
• Litecoin
• Dash: Digital+ cash
• NEM
• Monero
• Zcash

While some luxury homes are listed with a Bitcoin price tag, the industry is seeing a lot more rental opportunities welcoming the blockchain technology. For example, ManageGo is a New York-based company that allows renters to pay with virtual currency-whether that be Bitcoin, Ethereum or Litecoin-all from an app. With this technology, landlords can eliminate the chance of bounced checks and receive funds by the next day. The app also works as an all-in-one support platform that allows renters to create and track maintenance requests. This is a way to attract renters that may be unsure about paying with Bitcoin, but now have the bonus of timely building maintenance and support to convince them.

Additionally, while buyers, especially home investors, are more willing to invest their cash in Bitcoin and other cryptocurrencies, sellers are wary of accepting a form of payment they are unfamiliar with. Many online marketplaces, such as Overstock.com, Namecheap and Reddit, are now accepting Bitcoin purchases, but it is not yet widespread enough to become a regularly accepted form of payment in a real estate transaction. Most agents are also unfamiliar with blockchain technology, and may decide to forgo working with sellers or buyers who say Bitcoin or other cryptocurrencies are the only payment method they will use.

As Bitcoin gains popularity, and, if more businesses begin to accept it as standard purchasing power, only then will the real estate industry begin to really consider the technology. Its use may also largely depend on location. Will it be used at the national level, or will it be relied on mainly for international transactions in order to avoid other volatile currencies?



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Pay your rent with bitcoin. Here's how it works

Pay your rent with bitcoin. Here's how it works

RECBL - Real Estate News
Diana Olick | @DianaOlick
Originally Published on by CNBC

​While you still can't buy a meal at many restaurants with bitcoin, you can now pay your rent with it.

ManageGo, a Brooklyn, New York-based rental platform which offers landlords and tenants payment and maintenance scheduling services through online and mobile applications, is now adding bitcoin to the list. Starting early next year, a tenant can pay in bitcoin through the mobile app.

Here's how it works: The tenant uses bitcoin and then ManageGo converts the bitcoin to dollars using Coinbase, a digital cryptocurrency broker.

The landlord gets the rent payment in dollars. Since bitcoin is extremely volatile, the value is locked in at the time of the payment.

There has not been a lot of demand for this service, but executives at ManageGo, which has been around for seven years, say it is only a matter of time.

"We lead in innovation, so we saw bitcoin was something that's going to happen and become a standing currency sometime in the future," said Chaim Lowenstein, vice president of business strategy at ManageGo. "Right now there are types of clients we have, their tenants fit the profile, and we wanted to offer it as the new amenity beyond a fancy gym or a new couch in the building."

Lowenstein said he has already received interest from landlords, if not yet from tenants. The company is marketing the idea nationwide, hoping it will catch on as quickly as the currency has.

Toby Bozzuto said he learned of it this week at a real estate conference. Bozzuto is CEO of The Bozzuto Group, an apartment development and management company with more than 70,000 units nationally in its portfolio.

"Currently we have had zero interest in paying rent through bitcoin," said Bozzuto, who is still skeptical about cryptocurrencies in general. "You don't know who owns it, and that's the knock on it. It's been considered black market with a dirty reputation.

That said, he is not exactly closing the door on the option.

"If this becomes a consumer shift, like Apple Pay, we are always looking for ways to increase the ease of rent payments. I'm not closed-minded enough to say it's off the table," he added.

Appeals to a specific type of renter

ManageGo has approached the American Apartment Owners Association, but representatives there said they have not heard of any demand from renters or landlords for bitcoin options.

Alexandra Alvarado, a representative of the association, said property management companies and landlords have moved only slowly into online payments and tend to be quite cautious and conservative. They will not consider trying something until it is widely established in the market.

That could be years or months, given bitcoin's incredible rise and the expansion of other cryptocurrencies right behind it. To start, it will likely be a very specific type of renter."It's someone who is maybe in technology, somebody in finance, somebody who sees this as very exciting," Lowenstein said. "They got in, and this makes it real that they could pay their rent with bitcoin."




Pay your rent with bitcoin. Here's how it works from CNBC.

For more information about Bitcoin please visit Bitcoin.org, Coinbase, and CNN.com



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