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3 Ways Blockchain Technology is Changing the Face of Real Estate

blockchain real estate finance

Real estate can be a lucrative investment, but up until fairly recently, only institutional investors could participate in the ownership of major projects. The passage of the 2012 JOBS Act made it possible for companies to offer formerly private investments to the public, helping small businesses and startups to raise the capital that they need to operate. The legislation has also opened the door for peer-to-peer lending platforms to grow as an alternative to traditional avenues such as banks in the coming years.

Peer-to-peer lending makes it possible for professionals and laymen to invest in commercial real estate projects that were formerly only realistically available to businesses and other institutional investors. Blockchain technology is making it easier than ever for individuals to invest in properties, helping to solidify the fast-growing foothold that P2P lending is developing on the real estate market. There are several reasons that investors are switching to cryptocurrencies to trade real estate.

Get Rid of the Middlemen

Historically, investing in real estate has meant including many more parties than just buyer and seller. Transactions also involve brokers, lawyers, bankers, and other professionals, all of whom charge commissions that eat into potential profit from the equity of your home. Blockchain eliminates the need for many of these middlemen in real estate deals so that you save both time and money on your investments. You also won't have to worry about additional hidden fees such as inspections costs, registration fees, and some taxes.

Easily Liquidate Assets

Real estate is not considered to be a liquid asset, but blockchain could help to change this in the coming years. Through traditional avenues, it can take months or even years for the sale of a house to go through and families to get paid. Using cryptocurrencies, however, you can immediately sell your property and access your profits. Blockchain also makes it possible to sell real estate more quickly, as property owners don't have to wait for a single buyer to proceed with a sale thanks to peer-to-peer lending platforms.

Make Secure Transactions

While banks are accepted as financially trustworthy institutions, a lack of transparency can make real estate sales complicated and even somewhat risky. Blockchain, on the other hand, is a decentralized technology that makes financial data readily available and completely transparent. Buyers, sellers, and others can easily verify information when conducting transactions to reduce the risk of fraud.

Peer to Peer Lending and Private Lending Info