Luxury Real Estate is Starting to Welcome Crypto to Its Doors

For many of us, “crypto” is a form of currency we don’t quite understand, but hear about more every day. While the idea for an alternative, digital currency has been talked about since 1983, it wasn’t until 2009 we saw the first modern cryptocurrency take shape.

While you might still be wondering what the hype is all about, many businesses are moving forward accepting cryptocurrency as payment for things you might not expect.

For example, the fine art world has embraced NFT (non-fungible token) sales through digital art, making it difficult for most patrons to purchase these NFTs with traditional fiat.

Another example is how news/media publications have started to accept crypto payments for their native subscriptions, while other Web2 tech brands, like Microsoft, have also accepted crypto as a form of payment for their tech sales.

Indeed, real estate has become another promising example of how crypto can be applied – either to the sale itself or for obtaining real-time information as to which digital assets to leverage.

In August, Selling Sunset star and luxury real estate expert Christine Quinn and her husband, Christian Dumontet, revealed to TechCrunch their latest innovation from their RealOpen brokerage firm’s product line – RealScore, a crypto credit scoring system that allows buyers and sellers of luxury real estate to leverage when deciding the parameters of their purchasing power.

Miami luxury realtor, Denis Smykalov, has helped sell over $20 million (USD) in luxury real estate over the past 3 months, with buyers expressing their desire to pay using cryptocurrency.

Smykalov built his career in the real estate industry over the last nine years by following his passion for being innovative, people and bringing the two together in the ideal environment. He opened an office in Sunny Isles Beach and became the owner of Wolsen Real Estate. Smykalov can attest to the rapid growth of Miami’s property market, as more crypto-centric businesses have begun moving to the state.

“More builders are accepting this type of payment and find it to be easier,” Smykalov told Luxe Beat Magazine, adding that there are “no concerns with rising interest rates or completing loan documents – to then wait and see if you will be approved for a loan.”

“Miami is home to residents from all over the world,” he explained. “As people begin relocating from other countries, they are also finding it easier to pay using digital assets.”

Smykalov shared a few ways he has seen digital currency come into the real estate picture, along with his tips for those buyers looking to purchase a home in crypto:

1. Find an attorney who handles crypto transactions

All real estate sales require an attorney, regardless of how the property is paid for. In the case of a crypto transaction, you will want to find someone familiar with all legal documents needed for this type of sale.

“While the state of Florida does not mandate the need for an attorney for a real estate purchase, having one offers an array of benefits,” noted Smykalov. “All real estate sales come with contracts. You will want to make sure the one you are signing has no pitfalls.”

2. Find a Payment Processor or Set Up a Crypto Wallet

“You may already have a Robinhood or Coinbase account, which allows you to trade currencies – but make sure you have a crypto wallet that allows you to pay for the necessary items you need.”

If you can’t find a suitable wallet, looking for a payment processor that is compatible with certain wallets, including Coinbase Wallet, may also help.

3. Do Your Own Research On Which Asset to Leverage

Like any traditional stock or asset, do your own research. When determining which asset to leverage in a particular transaction, look to see which assets you currently hold versus what the market looks like around that particular asset.

“Not all crypto is alike, which makes it increasingly important to know which crypto the seller is willing to accept, prior to putting down any offer.”

Referencing Quinn’s recent RealScore technology, the patent-pending technology looks to factors such as the diversity of the basket of coins used to fund the offer, buyer-held crypto in excess of the offer price, and escrow donation.

A RealScore, according to the company’s press release, enables a buyer to determine if they should diversify the mix of digital assets that make up their offer, and the proper time to extend an official offer. The platform currently accepts Bitcoin, Ethereum, Solana, and the USDT/USDC stablecoins in providing its real-time cryptographic analysis on market volatility.

4. Consult With a CPA to Determine Your Tax Liability

Having your CPA review your real estate purchases can be beneficial from a tax liability standpoint.

“If you are an investor, you will certainly want to consider having a CPA on board,” states Smykalov. “They understand capital gains laws along with following long-term cycles and trends.”