THE FUTURE OF Real Estate & Blockchain?
Bitcoin, Ethereum, LiteCoin, and countless other cryptocurrencies have gained massive popularity over the last year, but what is the technology behind these cryptocurrencies? The technology is known as blockchain, the Digital Gold of technology. It allows digital information to be distributed but not copied and this single element, the blockchain, not only could be the backbone of a new internet but has the potential to impact almost every facet of our lives.
An application to Real Estate
The real estate industry is ready for innovation and is worth over $217 trillion globally. People have always owned or rented properties, but they rarely have had custody or control over the information associated with them, photos, floor plans, property data, historical data, inspections, 3D models, etc. There are many businesses out there that are controlling and accessing this information for free. Imagine if there was a way to digitally manage this information to mirror the physical world. Information related to a property is always owned by the owner and owners should have the right to share this information to relevant property agents, Real Estate Partners such as limited partners in commercial real estate, renters, businesses and applications that add direct value to their lives. Validated users, high quality information, decentralized control,transparency, and security are the new pillars of technology that the real estate sector can certainly benefit from.
Financial Transactions Application
Through blockchain we can imagine a world where every office rental payment can be verified with a click of a button. You can always have access to a verified accurate history of a property and its financial background, giving you transparency and peace of mind. In the Secondary Market for Commercial Real Estate, blockchain technology could also have the potential to deliver highly efficient investment valuations using anonymized, comparable data. Complex, independent property valuations could become the exception rather than the norm, with elaborate financial due diligence and valuation procedures being replaced by a simple blockchain ledger. The fact that blockchain can cut down on transaction costs and provide a preserved history of properties presents a theory that it can eventually deliver gains to property values in the future and as a result, should be implemented into real estate as soon as possible.
MarketSpace Capital, LLC is a Houston, Texas-based private equity real estate development firm focused on ground up developments and value-add investments throughout the United States.
Disclaimer: *For sold properties, actual sales price is reported. For active investments, the Estimated Current Value is based on the Managing Member’s estimate of current value. Recent acquisitions are generally valued at the acquisition price. Values may be internally prepared. This web-page/website is for informational purposes only and is qualified in its entirety by reference to the Confidential Private Placement Memorandum (as modified or supplemented from time to time, the “Memorandum”) of any offering of MarketSpace Capital.