According to the developer, buyers would be able to access instant cash flow because the units are entirely built out and currently earning money. Managing partner of Magnum, the New York-based real estate firm with a $4 billion portfolio, Ben Shaol stated:
The Michigan-based mortgage company confirmed to CNBC that it's aiming to start by accepting bitcoin, though UWM is in the process of evaluating ether and other cryptocurrencies as well.
"We are evaluating the feasibility and requirements in order to accept cryptocurrency to satisfy mortgage payments," said Ishbia in a tweet via the company's account.
UWM – the nation's second-biggest mortgage lender after Quicken, the Detroit-based lending giant owned by Rocket Companies – works solely through wholesale channels, meaning that the company employs a fleet of brokers who then connect clients to home loans.
Real estate hasn’t escaped blockchain disruption either. Previously, transacting high value assets such as real estate exclusively through digital channels has never been the norm. Real estate transactions are often conducted offline involving face-to-face engagements with various entities. Blockchain, however, opened up ways to change this. The introduction of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and be traded like cryptocurrencies like bitcoin and ether.
Brokers, lawyers, and banks have long been part of the real estate ecosystem. However, blockchain may soon usher in a shift in their roles and participation in real estate transactions, according to a report by Deloitte.1 New platforms can eventually assume functions such as listings, payments, and legal documentation. Cutting out the intermediaries will result in buyers and sellers getting more out of their money as they save on commissions and fees charged by these intermediaries. This also makes the process much quicker as the back-and-forth between these middlemen gets cut.
By allowing fractional ownership, blockchain also lowers the barriers to real estate investing. Typically, investments would require significant money upfront in order to acquire property. Alternatively, investors with could also pool their money to acquire bigger ticket properties. Through blockchain, investors would simply have to access a trading app to buy and sell even fractions of tokens as they see fit. In addition, fractional ownership would also help them avoid managing the properties themselves such as maintenance and leasing.
Upkeep alone can add up to significant costs and dealing with tenants may be a troublesome effort. This also affects related activities such as lending where property owners often have to put their properties as collateral for loans in order to get quick access to cash. Depending on the terms, property owners may also continue enjoying use of their property.
Real estate hasn’t escaped blockchain disruption either. Previously, transacting high value assets such as real estate exclusively through digital channels has never been the norm. Real estate transactions are often conducted offline involving face-to-face engagements with various entities. Blockchain, however, opened up ways to change this. The introduction of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and be traded like cryptocurrencies like bitcoin and ether.
Revamped crypto tax rules are a part of the $1 trillion infrastructure bill, and financial authorities like Treasury Secretary Janet Yellen, SEC Chair Gary Gensler, and Fed Chief Jerome Powell have all spoken recently on the topic of whether to regulate cryptocurrency.
It is unclear is whether UWM will hold the cryptocurrency it accepts or convert it to fiat at the point of transaction. The company did not immediately get back to see.
FOHO Haus is a blockchain-based residential real estate marketplace wherein people can buy and sell fractions of residential property. FOHO Work is like FOHO Haus with the only difference being, while FOHO Haus is involved with residential properties, FOHO Work deals with commercial properties like office spaces, warehouses, plantations etc. It enables people to own fractional commercial real estate assets through cryptocurrency. FOHO Club is where people come together to share usage of an asset or experience. Lastly, FOHO Coin is a utility token and enables participation in the FOHO ecosystem. Jason Fernandes, a renowned personality in the crypto space and a member of the FOHO advisory board says “FOHO is to the crypto space, what Uber is to the car-rentals industry. FOHO is enabling the fractional real estate ecosystem of the future and FOHO Coin is the first step to entering this shared economy."