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The auction has received fewer than 100 views and there has been no bid yet.
In recent times, there has been a growing interest in non-fungible tokens (NFT) by crypto enthusiasts. The crypto sector has enjoyed tremendous support and it has also witnessed a spike in the number of its transactions. Another indication that this sector is here to stay was given by Ivan Malpica, an investor who listed a property in St Louis on the NFT Mintable market – a first of its kind in the history of real estate and the crypto space.
Available details show that this was done yesternight and the property would be going for around 43 units of Ethereum which is currently around $76,000. According to the listing, whoever purchases the St Louis home NFT gets “fractional ownership (50%) of this fully emptied rehab home.” The house is valued at around $138,000 as of 2020 and it is able to generate over $1000 in monthly revenue presently.
Malpica notes that using an NFT would allow the property to be paid for in crypto, however, the sale would still be legally supported by forming a limited liability company between him and the buyer showing that the property is evenly owned by both parties. In his words, “NFT does not actually state that you are the legal owner of the property, but it will be once we draft the operating agreement which is registered”.
The real estate investor went on to add that:
“Selling as NFT and half will make the LLC transaction easy. Some banks / securities firms probably wouldn’t accept full payment in cryptocurrency. At the moment, you can’t just buy an actual rental property with 100% crypto way, by selling half as a partnership, it allows that.”
The property manager said he is experienced in 50/50 partnership agreements with other 30 previous rentals owned through this method. He mentioned that his interest in NFTs was piqued after he heard the words of Gary Vaynerchuk, CEO of Vaynermedia.
Interestingly, the auction has seen fewer than 100 views and there has been no bid, yet, for the property. However, Malpica is undeterred as he says he would expand the concept to allow more gracious ideas in the future.