Some counties have begun to utilize blockchain to record title transfer, but it’s still a couple of years away.
Blockchain will appear earlier in the real estate world to help generate a protfolio to generate more granular recording of all the components inovolved in a real estate asset especially in the operation of commerical real estate.
- 1.2 million realtors hundreds of thousands of others
- Half of brokers in US are independent, small organizations
- Barriers to entry to become a realtor are not very high
- Took 10 years to get 800 MLS systems around the country to work together
- 3000 counties in the United States where recording takes places
Desoto Inc is focused on title and proparty in emerging countries. In those areas property ownership may not have been. How does blockchain provide a solution to recording ownership in the developing world. 3 main things:
- Breaking down siloed information. The abilty to have a shared database that everyone can see breaks down barriers between pockets of
- Transactions. More effecient, frictionless transactions.
- Blockchain provides a way to uniquely represent an asset so that ownership can be asserted.
Integra Ledger wants to use blockchain as a trust layer and data integrity layer. Real Estate is an ocean of legal documents. They want to blockchain real estate meta data – identity as well management of physical assets. They don’t want to change behavior or software instead they want to add an additional layer to the existing software ecosystem to bring a layer of integrity.
There are many actors in the real estate ecosystem – owners, suppliers managers. The distributed, trusted nature of a blockchain ledger let’s all participants access and trust data.
In urban areas it’s becoming more difficult (expensive) to affort down payments. National association of realtors is looking at tokenizing the down payment to allow investors to participate in the down payment on a home and then allow investors to paricipate in the appreciation of the asset.
Event models – break down the real estate asset into more granular pieces so that the property could display asspects of itself on demand to permit 3rd parties access to information about that property. “Carfax for Real Estate”. This brings down the risk profile for lenders.
Realtors will survive as information and trust agents that provide guidance through the process where the role of the broker is more limited. Agents will need to increase the volume of transations to maintain their level of income.
</p>Tokenization of real estate will mean the democratization in investment of in real estate. Every income producing property on earth could be tokenized to allow for small investors to make investments in commercial property bringing a large number of of new investment opportunities.
“Globalization of real estate investment”