The concept of using crypto to buy and sell real estate has been discussed for some time. On October 18, The Block announced the purchase of a beautiful South Carolina home via an NFT marketplace. The acquisition was facilitated by Roofstock onChain, the web3 arm of the well-known real estate organization Roofstock.
Real estate investor Adam Slipakoff bought the three-bedroom home in Columbia, SC, for $175,000 USDC. This is the first NFT sale by Roofstock. The house at 149 Cottage Lake Way was put on the market as a rent-ready property. Roofstock, founded in 2015, specializes in such rental properties and has orchestrated more than $5 billion worth of investment purchases to date.
While this company is not new to real estate purchases, this was the first NFT sale for the real estate veterans. Geoff Thompson, Rootstock’s chief blockchain officer, deemed the transaction a “major milestone” in establishing a simpler way for investors to buy rental properties.
The process is simple. Each rental property sold by Roofstock onChain via a non-fungible token (NFT) is owned by an individual LLC (limited liability company) that is registered in Wyoming. Each NFT sold is tied with the single ownership of each of these LLCs.
Anonymity is not an option in these transactions. Due to legal requirements, the names of buyers must be made public. There is a setup process on the platform that requires potential buyers to mint a membership token that cannot be transferred. This token symbolizes a verified buyer, and those looking to purchase can then connect to an NFT marketplace to purchase their choice of Home onChain NFTs.
When an NFT is purchased, it means ownership of the LLC and affiliated property transfer to the buyer. In this case, Adam Slipakoff just got a bargain for the $175K price tag. The elegant yet contemporary 1,495 square foot home boasts three bedrooms and 2.5 bathrooms, was built in 2006, and recently underwent over $25,000 worth of renovations.
The return on investment looks quite promising for this sleek home. Perhaps it is only a matter of time before Roofstock onChain and similar companies become the norm rather than a niche for rental real estate transactions.
