We provide services to anyone involved in real estate looking to use modern technology to upgrade their existing process. The internet (web1) made properties searchable online. Online marketplaces (web2) allowed buyers and sellers to find each other. Now, blockchain (web3) makes it possible to automatically add listings to new marketplaces and allows buyers and seller to play a more active role in the transaction. Every web2 property can become a web3 property and we can help.
Every real estate broker immediately adds value by adding a web3 component, which makes their listing discoverable by any web3-enabled marketplace. It’s also a way to attract new clients, retain existing ones, and a reason to revisit past clients. The following is an example of an existing broker listing where we’ve added an NFT.
Where:
Upwey, Victoria, Australia
What:
Modern Unit with land
Price:
A$640,000-A$704,000
Bed/Bath:
1/1
Characteristics
BENEFITS: Firstly, creating an NFT for a property listing immediately opens it up to prospective crypto buyers around the world. You gain a new marketing channel (one that may get bigger than existing ones): the blockchain. On your existing listing pages, simply add a new link to the NFT (like the Fractal, OpenSea and Rarible buttons above).
NFTs enable cryptocurrency as a form of payment. If purchased with cryptocurrency, the buyer simply sends the cryptocurrency as payment and gets the NFT as their signed contract. It’s exactly the same as how real estate is transacted now except the two items exchanged are digital. If purchased via fiat, the NFT can simply be sent to the buyer as a keepsake.
Being the original creator of an property’s NFT ensures future transactions involves you. So your client relationship doesn’t end when a sale happens! If you were the buyer’s agent, you can immediately become the selling agent by relisting the property at a higher price. If you were the seller’s agent, you gain a relationship with the new buyer as the NFT creator (and potentially holder). When they sell, you can help.
Finally, NFTs give you a reason to contact all your past clients and ask them what price they would sell their current property for. Then, create the NFT for it and “put it on the market” for that price. It’s a way for the property for be “active” on NFT marketplaces even if they aren’t on traditional ones.
Our Services
NFTs are valuable in marketing, product & technology development and as entry to the next dominant ecosystem. Like social media (web2) and the internet (web1), early adopters were rewarded with a more complete product offering, a community and access that later adopters paid heavily for. NFTs and web3 will be no different.
On the marketing side, firms instantly attract more real estate buyers by making their existing portfolio open to crypto buyers worldwide. This can be done by simply creating an NFT or fractionalized into a series of NFTs for your properties (email info@fractalprop.com). On the product side, NFTs have built-in capabilities that can enhance almost every product offering – like a secondary market, auctions and royalties that can accommodate any fee structure.
Firms with established technology frameworks can easily integrate NFTs, even as a redundant system at first. Those still building their tech should consider building it with blockchain. Unlike its predecessors, web3 is protocol-driven and largely open-source, making it much more cost-effective to outsource tech development and maintenance to the crypto community than doing it all in-house. And it can be done with no disruption and completely behind-the-scenes. Buyers never even need to hear the letters N-F-T.
As the crypto-real estate market matures, platforms will interoperate with each other to produce a “members-only” ecosystem. The next iterations of MLS, Airbnb and Zillow, as well as New York stock exchange and NASDAQ will all speak the same language. Your company is going have to speak that language to join the club.
To illustrate all these points, consider the following property sourced from Pacaso, a fractional vacation home investment platform. It’s a proprietary marketplace built on web1/web2 technology and has no association with Fractal. Yet we/anyone can create NFTs for it, turning it into a web3 asset, and putting into dozens of platforms (we only list 3 below). If anyone buys the NFT, the NFT creator can use those funds to purchase this property from Pacaso. It makes far more sense for Pacaso to be the NFT creator.
Platform:
Pacaso
Asking Price:
$626,000
Shares:
Characteristics
Our Services
The following property is listed as an NFT by an investor of an individual property. It’s occupied by a renter, generating investment income. The owner of this unit purchased it as an investment property and is experimenting with different ways to share ownership and more efficiently use the property.
Number of NFTs:
100
Price per NFT:
$1,000
Annual rent per NFT:
~$60
Characteristics
ConstitutionDAO showed us the power people have to pool resources and buy something completely unique (i.e. a copy of the Constitution). It’s possible to do it better by creating a series of NFTs. If the purchase is made, each NFT represents a share. If the purchase isn’t made, the cryptocurrency can easily be sent back to the owner and the NFT is simply a keepsake.
In a crowdfunding project, the terms will be set by a project owner and added to the listing page so others will know what they could expect by participating in the investment.
The following property was originally found by a prospective buyer of a massive historic ranch/farm, interested in developing it for commercial purposes. Each NFT represents a share of the purchased property if the sale is completed.
Massive Historic Ranch
Where:
California, US
Plot Size:
15,000 acres
Total Price:
$43,000,000
Shares:
8,000
Price Per Share:
$5,000 – $5,500
Type:
Crowdshare
Characteristics
Services