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How do I buy real estate with CryptoCurrency?

Got it, thank you!

With a market cap over $1 Trillion, Crypto is here to stay. Can I use it to buy real estate, the answer is YES.

By Chris Sauerzopf, SafeWire CEO + World Class Title Co-Owner

Preaching to the choir... 

If you’re reading this article, you’re likely already a convert to the digital currency revolution. So, I won’t waste time convincing you why this is here to stay. 

Simply put, all transactions, including real estate, will be massively underserved if consumers don’t have an option to transaction with digital currencies like Bitcoin.

The law of the land.

First, it’s important to understand that real estate transactions are governed by the state the property is located in. Each state has their own laws regulating real estate, title insurance, good funds, etc. Some states have more laws in place than others, so it’s important to understand there may be additional constraints in place than appear on the surface. 

How do I do it?

There are 3 ways to transact real estate using Bitcoin. 

1. Cash Out
   Transfer your Bitcoin to cash and bring cash to close. I know, this isn’t really the answer you’re looking for. But, it’s still technically an option. Let’s move on to the better options. 

2. Peer to peer 
   When looking for a property to buy, one option is to find a seller willing to accept their funds in Bitcoin. The transaction can be done peer to peer and closing costs can be paid with cash to facilitate costs like title insurance, conveyance, etc. It’s similar to an all cash transaction. 
   
   This type of transaction is a bit complicated. You’d want to make sure the title company you’re working with understands the situation and that they have underwriter approval. Also, in markets with low inventory, finding a seller who wants to accept funds this way while competing with multiple offers may prove challenging. 
   
   Lastly, every market is different. Some markets the seller is usually driving the title company decision, other markets it's the buyer. This can create more complication for a buyer trying to buy real estate with Bitcoin. 
   

3. CryptoClose with World Class Title
   I don’t know many, if any, title companies outside of World Class Title that accept Bitcoin as payment. There are several reasons why. General fear and misunderstanding of cryptocurrency and its business applications permeate real estate transactions. 
   
   Second, the demand is small, yet growing. 
   
   Lastly, most don’t understand how to do it or why they would need to. 

World Class Title operates in 6 states. Ohio, Pennsylvania, New Jersey, Michigan, Florida and Kentucky. We can accept Bitcoin for any transaction amount in those states and create a clean, simple experience for buyers and sellers. A seller would see nothing different on their end. They could receive funds in a traditional manner. It would be no different than if a buyer was paying with cash or financing. 

Your real estate agent or attorney can advise you on how to structure the purchase contract disclosing your intent to purchase the property with Bitcoin. But, it is critical the title company is consulted early on in the process. 

Most will pass on these types of transactions. 

For more information about using Crypto to purchase real estate, visit www.worldclasstitle.com/bitcoin.

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Chris is the co-founder and creator of SafeWire. As a licensed title agent and co-owner of World Class Title, in 2016 Chris recognized the potential threat of real estate wire fraud and created SafeWire. He is an industry leader on the topic of wire fraud, blockchain, Bitcoin and real estate technology. 

He can be reached at chris@worldclasstitle.com.

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