New Section Of Landlords Emerges With The Explosion Of Crypto

The next phase of the crypto economy has arrived. In this phase, the rental properties are allocated into digital tokens that are sold around the globe. It disrupts how landlords work as the token-holders convert the business of being a landlord into a series of online pools. A system tenants are necessarily aware of.

Among many tech startups, Lofty AI is changing the real estate world by creating a new kind of investment in real estate. They contribute to the trend of distributed autonomous organizations, or DAOs which promote ownership and cooperation.

Real estate investing is not something new to an average individual. Websites like RoofStock and Fundrise are providing the opportunity to purchase shares of homes and commercial developments in faraway places, for years now, however, they need at least an investment of $1,000 or more and also have restrictions attached to the withdrawal of cash by users.

Lofty AI is bringing a revolution in this system and building an unregulated online marketplace in which any individual around the world can make an investment of as little as $50 for purchasing a digital token equivalent to a stake in a single-property rental business. With each token representing a share of ownership in a limited liability company based in Delaware.

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Desiree Fields, who works as an assistant professor of geography and global metropolitan studies at the University of California, Berkeley, points out that historically it is seen that the Real estate which resists change but today it is experiencing all “kinds of tech and real-estate ventures.”

She points out the new real estate marketplace is emerging which in turn indicates how popular has the housing market become, pricing out several to-be homeowners while attracting even more investors.

Fields adds that you can become a landlord of 1/50th in case you can’t afford to buy a home for yourself.

Lofty AI is still in its development. Its online marketplace, which began last year, has approximately 90 rental properties posted so far, most of which are in Rust Belt states including Illinois, Michigan, Missouri, and Ohio. The day-to-day rental activities are handled by property management businesses.

Gipson, who is 24 years old, is not some traditional Memphis property manager. He is a student in the San Francisco Bay Area who also owns tokenized shares of rental homes in Chicago, and he votes on issues that affect his properties regularly such as the new ceiling fan, which was approved by the owners.

He says that he feels like “a landlord making those decisions.” His plan is to eventually sell his tokens for a down payment in exchange for a home of his own.

The buying and selling of tokens are registered on a blockchain, a system in which many nodes contribute to a shared database or ledger that is not controlled by a central authority. Chu said the blockchain ledgers are perfect for replacing old-fashioned record-keeping in real estate since the transactions are transparent.

Further, he said there is no trust between the buyers and sellers, and because of it he says “you have this whole escrow and settlement process.”

However, it’s unclear whether the notion of democratizing rental property investing would be well received in a restricted housing market that is already undergoing significant change as a result of other tech businesses.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing