RealOpen is a new innovation that brilliantly fuses cryptocurrency and real estate.
Those that know me, know I’m passionate about selling real estate, but also learning and fusing new technologies into the practice in order to improve and evolve the work that real estate agents do on a daily basis. Netflix’s Selling Sunset star Christine Quinn recently launched a new company, RealOpen, which allows individuals to buy and sell real estate with cryptocurrency. But how exactly does it work? In this article, I’m going to briefly delve into the process behind this new achievement in the real estate world.
Firstly, RealOpen allows anyone to buy a home using cryptocurrency. That means that when a buyer wants to submit an offer on a property, RealOpen must first check the buyer’s assets in crypto to ensure they have the appropriate funds to put an offer as it will be submitted fully in crypto.
RealOpen does all of the work in regards to verifying assets. Once sufficient assets have been proven, they will allow the buyer to make an offer. All assets remain as crypto until the offer is accepted. Once an acceptance is confirmed, RealOpen will assist in converting just enough crypto (about 3%) into cash so an escrow deposit can be made. The remaining balance stays as cryptocurrency to allow the funds to potentially grow leading up to closing day.
Finally, when closing day arrives, RealOpen will convert the remaining balance of cryptocurrency into cash to complete the offer.
RealOpen's Major Benefit
The major benefit of using RealOpen for buyers wanting to use crypto is that they will avoid having to liquidate their assets before submitting an offer. An average buyer who on their own decides to use their crypto balance to purchase property must first obtain a proof-of-funds letter from the bank before even submitting an offer. This penalizes the buyer, as a tax event would be triggered upon conversion, before even knowing if their offer will be accepted or not. RealOpen allows individuals to keep their money in crypto form as long as possible and only triggers a taxable event after closing is successfully completed.
The Bottom Line
If you are a buyer looking to take the leap and purchase real estate using cryptocurrency, RealOpen may be the perfect place to start.