Property Owner Benefits
Property owners all over the United States will have the ability to mint NFTs from their property using BlockPark's Minting Factory. However, should a property owner choose not to sell, there are still many benefits a property owner receives by minting NFTs from his or her property. The following benefits are listed below.
- 1.Verify all property records and history on blockchain
- 2.Increase multiple seller and financing options
- 3.Lower monthly payments
- 4.Earn passive income and build wealth
Let's breakdown these benefits one by one...
#1 Verify all property records and history on blockchain
Owners will be able to store and verify property records on an immutable ledger validating its operating history such as title, maintenance, liens, exc..
When financial institutions such as lenders and insurance companies finally adopt distributed ledger technology to verify property information it will make the borrowing process and insurance valuations much quicker and more accurate. 🎯
In addition to 3rd party financial services, an owner can now verify all the upgrades and maintenance that had been done to the property when listed on the open market. The asking price is now backed up by the actual condition the seller kept the property in incentivizing a seller to take good care of the property now while also being able to attract a higher offer price.
#2 Increase multiple seller and financing options
Once a property has been minted into NFTs, fractional ownership is created giving the owner multiple options to sell all of, or a fraction of the property.
An owner has a choice as to how much of the property they choose to sell. They also open themselves up to outside financing in web3 where much more favorable terms may be available. When such finances programs become available, owners will not have to go through the same hoops a conventional lender requires. In web3 the NFTs can be held as collateral and recorded on chain in a matter of minutes as opposed to weeks compared to conventional lending practices. 👍
#3 Lower monthly payment
As part of the minting factory process, owners transfer ownership to their property into a separate entity in which the NFTs represent. Owners now become tenants in a property that they own and get to choose how much rent they will pay. The amount they choose to pay will set the cap rate and cash on cash return shall they list the NFTs in the secondary marketplace.
Due to the property now considered an "investment property" the owning entity can now write off expenses such as maintenance and depreciation that they were unable to do when it was their primary residence.
#4 Earn passive income and build wealth
Once property owners mint NFTs from their property they can sell ownership. With the money acquired they can now purchase other NFTs in the secondary marketplace and start building a portfolio of NFTs backed by real property and start earning additional passive income.
In conventional real estate, an investor needs to put down 20% of the purchase price to acquire an investment property. On the BlockPark platform an investor can start acquiring investment properties for as little as $100 per NFT. And unlike conventional real estate where all the money is tied up in one property, an investor on the BlockPark platform can acquire multiple NFTs representing different properties. An investor can also choose to move in and out of each NFT to maximize their returns as they see fit.