{"id":9510,"date":"2025-01-24T14:01:52","date_gmt":"2025-01-24T14:01:52","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9510"},"modified":"2025-01-24T14:01:52","modified_gmt":"2025-01-24T14:01:52","slug":"real-estate-firm-propy-is-rolling-out-crypto-backed-loans-to-buy-houses","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9510","title":{"rendered":"Real Estate Firm Propy Is Rolling Out Crypto-Backed Loans to Buy Houses"},"content":{"rendered":"
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What if you could put up your bitcoin (BTC<\/a>) or ether (ETH<\/a>) as collateral to buy a house?<\/p>\n

That\u2019s essentially the idea behind real estate firm Propy\u2019s upcoming sale, a condominium located in Honolulu, Hawaii, which is being sold at a starting price of $250,000. If they so choose, the prospective buyer will be able to take out a loan from Propy to acquire the property \u2014 as long as they provide 100% collateral in bitcoin or ether, and pledge the property as well.<\/p>\n

\u201cIt’s a great proposition for bitcoin holders,\u201d Natalia Karayaneva, CEO of Propy, told CoinDesk in an interview. \u201cIt’s not a taxable event. They get a loan and buy real estate with it, instead of exiting bitcoin, paying taxes, and then buying real estate.\u201d<\/p>\n

It\u2019s a two-year loan, and it comes with 10% yearly interest. If the given cryptocurrency\u2019s value drops more than 50%, the buyer will face a margin call; in a worst-case scenario, the crypto holdings may end up getting liquidated, and the real estate resold at an auction. However, if the cryptocurrency doubles in price, the buyer could end up paying the loan back simply through their gains. The interest payments, and loan itself, can be paid back in bitcoin, ether or USDC.<\/p>\n

Another important aspect of the deal is that the property has been tokenized. Launched in 2017, Propy aims to bring real estate transactions on-chain, thus speeding up settlement times and liquidity. In the case of the Hawaiian property sale, slated for January 29, a potential loan would be processed immediately, and upon completing repayment, a buyer would automatically be able to reclaim their crypto. <\/p>\n

\u201cThis isn\u2019t just a milestone; it\u2019s a glimpse into the future of real estate,\u201d Karayaneva said. \u201cWe\u2019re demonstrating how blockchain technology can simplify home buying, replacing the traditionally lengthy loan approval process with an instant, efficient solution.\u201d<\/p>\n

Buying real estate on-chain<\/h2>\n

Based on Ethereum layer 2 solution Base, Propy hasn’t tokenized properties on a regular basis, at least as of yet. More often that not, the firm simply uses smart contracts to make real estate purchases quicker and reduce attorney fees. \u201cThe main business is coming from normal consumers. They even don’t know that we use smart contracts on the back-end, but they love how quickly and transparent the whole process is,\u201d Karayaneva said.<\/p>\n

When it tokenizes a property, the firm sets up an LLC for the property in the county register and then creates a token, a process that takes roughly two weeks. Upon acquisition, the LLC is amended to reflect the change of ownership, and the property\u2019s token is transferred to its new owner.<\/p>\n

As of right now, pure crypto native deals only account for roughly 5% of the company\u2019s volume, according to Karayaneva. One of these deals, for example, involved TechCrunch founder Michael Arrington turning his apartment <\/a>into an NFT. Propy also auctioned a 17th-century Italian mansion<\/a> on the blockchain back in 2017. \u201cWe haven\u2019t done many of those transactions yet because we needed the loan product in order for us to scale,\u201d she said. \u201cPeople need a mortgage or a loan to get real estate exposure.\u201d <\/p>\n

Propy also provides escrow services in collaboration with Coinbase, the goal being to support the crypto community in making real estate purchases in crypto. For example, the escrow service helps bitcoin holders avoid wrapping their holdings in ERC-20 tokens like wBTC.<\/p>\n

Once a property has been tokenized, nothing prevents the buyer from eventually selling it to another crypto native without necessarily going through Propy. If the token is sent to a new wallet, the buyer will automatically be given a link to provide Know-Your-Customer (KYC) information; their name will subsequently appear in the LLC as the property owner. And the buyer can also unwrap the property from the LLC and own it the traditional way \u2014 a process that Karayaneva called \u201cun-chaining.\u201d<\/p>\n

\u201cOur premier goal is really to on-chain as many real estate assets as possible,\u201d Karayaneva said. \u201cImagine making an on-chain swap between a real estate on-chain asset and bitcoin asset, or another crypto asset. \u2026 It’s a $300 trillion market. Imagine if it becomes liquid.\u201d<\/p>\n

Read More: Propy Teams With Abra to Offer Property Purchases Backed by Crypto<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What if you could put up your bitcoin (BTC) or ether (ETH) as collateral to buy a house? That\u2019s essentially the idea behind real estate firm Propy\u2019s upcoming sale, a condominium located in Honolulu, Hawaii, which is being sold at a starting price of $250,000. If they so choose, the prospective buyer will be able […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-9510","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9510"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9510\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}