Even though most cryptocurrencies are still finding their footing, it is increasingly clear that they are not going anywhere. With that in mind, real estate investors are exploring new ways of including crypto among their buying options.
Magnum Real Estate Group is the first of many New York institutions looking to introduce cryptocurrency into its circuit. As of early 2022, the group has placed three condos onto the market in exchange for $29 million worth of Bitcoin.
Finding Home Sweet Home
The properties Magnum Real Estate Group has on the market are nothing to sniff at. Based out of upper East Manhattan, these condos are new construction. They include over 9,000 square feet of usable space. They are also are based above properties leased by bankers and healthcare moguls.
Magnum Real Estate Group has worked with the crypto market before. In 2018, the group broke into the world of crypto by offering residential properties for $15.3 million – only accepting Bitcoin as payment.
The Benefits of Bitcoin
Bitcoin and other forms of cryptocurrency are not always easy to understand. It is easiest for some to consider these currencies like transactional stock market investments.
Investors can exchange cryptocurrency with ease and without the waiting periods usually associated with substantial sums of money. Groups like Magnum Real Estate do not have to accept the crypto as artificial funds but can immediately transfer that investment into cash.
It is the speed with which these exchanges take place that makes Bitcoin as a real estate aid so appealing. Not only can investors rapidly diversify their investment portfolios, but real estate agencies can move through the existing market at a much faster rate.
The Future and Bitcoin and Property Sales
One of the reasons Magnum Real Estate Group is focusing on crypto sales is the market's swath of opportunity. Ben Shaoul, one of the group's managing partners, noted the lack of real estate opportunities for the biggest names in crypto. In turn, he and Magnum Real Estate Group strove to meet that need.
That said, the future of Bitcoin and property sales varies on the Bitcoin market. Like other forms of cryptocurrency, Bitcoin's value rises and falls with the whims of the blockchain. The value of a person's Bitcoin portfolio today may not reflect its dollar value tomorrow.
However, the opportunity to purchase property lets parties who have invested in cryptocurrency cement the value of their gamble. When participants can walk away from the blockchain with a condo in Manhattan, they can more easily transfer their investments to cash flow opportunities. They can also elaborate on their varying financial interests with a real estate attorney.
Discuss Bitcoin Purchases With Real Estate Lawyers
As cryptocurrency becomes a more prominent part of the real estate industry, it may impact foreclosures, mortgage payments, and buyers' overall sense of security. Fortunately, the team with Monachan Law is ready to help everyone understand the role crypto can take in real estate.
Whether Monachan Law can soothe mortgage concerns or explain cryptocurrency legislation, our skilled real estate lawyers onsite are ready to help. For more information, contact us online or at (347) 389-1682.