in the real estate market
One of the latest trends in the US real estate market is the popularization of the use of cryptocurrencies as an alternative currency when paying for real estate transactions.
Back in 2018, the first ever such real estate transaction with bitcoin payment took place in the United States.
And already in 2021, Florida Governor Ron DeSantis proposed a number of programs that make the state more friendly to cryptocurrency innovations. A similar position is taken by the mayor of Miami.
Florida real estate agencies believe that the turnover of cryptocurrencies entails a significant expansion of the real estate market in the region, contributing, among other things, to attracting foreign investors from various regions, such as Asia, South America, Canada and others.
The real estate company Vera Realty (Florida, USA) offers owners of an alternative currency the opportunity to make cryptocurrency transactions to purchase real estate in the United States.
Upon request, Vera Realty will help you find any real estate in Florida and other states, in the primary, secondary housing market, as well as in the commercial real estate market, which can be purchased using bitcoin and other cryptocurrencies.
Transactions are carried out through official escrow accounts opened only to licensed brokerage companies.
The cryptocurrencies that can be used for payment are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Shiba Inu (SHIB), Dogecoin (DOGE), Litecoin (LTC) and 5 USD-pegged stablecoins (GUSD, USDC, PAX, DAI, and BUSD).
In our case, all cryptocurrency transactions go through BitPay as a payment service provider and intermediary for such transactions. The fee for processing payments is 2% of the value of real estate using one of the above cryptocurrencies.
The confirmed level when converting cryptocurrencies into dollars for our company to perform Tier 4 transactions: from 100,000 to 5,000,000. US dollars.
Thus, both residents of the US and foreign residents will be able to purchase real estate.
How does the purchase process work?
The owner of the cryptocurrency who wants to make a purchase of real estate provides Vera Realty with information indicating the purchaser's full name, the main address, the purchaser's ID card with a photo (state driver's license or passport), the address of the public wallet containing funds that will be used to pay the invoice, as well as, the cryptocurrency report.
If the object of purchase has already been found, then all the necessary documents are drawn up, where the cryptocurrency is indicated as the main means of payment.
A contract for the purchase of a real estate object will be concluded, which specifies a period of 2-3 weeks for the KYC procedure (Know Your Client) - the process of establishing and confirming the client's identity by the company and the procedure for making an objective presentation of the object of purchase - Due Diligence ("due diligence").
Questions for KYC:
1 reason for purchase
2 addresses of additional properties
3 documentation confirming the source of funds
4 current employer or companies owned by the buyer
5 LinkedIn profile (if applicable)
6 any other documentation or public records that will confirm who the purchaser is, and how the buyer purchased the used cryptocurrency
During the inspection of the purchaser's documents, it is important to obtain information about the initial appearance of the cryptocurrency from the client.
If the amount of the purchased property is less than 500,000 US dollars, then KYC and Due Diligence procedures can be carried out by the financial and legal service of Vera Realty.
If the amount of the property is over 500,000 US dollars, then the company conducting the appropriate comprehensive assessment of the information of the planned transaction is BitPay.
During a certain 2-3-week period, the buyer deposits cryptocurrency funds to the escrow account. The conversion of funds into $ (USDT) takes place at the same moment. The buyer's funds remain on this account until the transaction is completed.
At the time of the completed sale, the amount in dollar equivalent is transferred from the escrow account to the account of the title company, or to the seller's account upon request.
Vera Fund investors who are holders of cryptocurrency will also be able to use it as planned joint investments.
Dealing with a brokerage company with experience in conducting cryptocurrency transactions, such as Vera Realty, the transaction process will not seem like a complicated procedure to you.
Forecasts of the appearance of real estate purchasers, who want to make transactions with cryptocurrency, are the most favorable.