Connect with us

Real Estate Technology

The future is now: Invest in real estate using cryptocurrency

(TECHNOLOGY NEWS) Real estate is going on trend and through REAL, investors can now use cryptocurrency to invest in real estate.

Published

on

real cryptocurrency

Real Estate Asset Ledger

The cleverly acronymed Real Estate Asset Ledger (REAL) is important, because it’s one of the first instances ever of a seamless platform for investing cryptocurrency in real estate. Blockchain solutions have been nibbling around the edges of the real estate market for a while. That’s still a big deal. We’ve reported on it.

bar
But involvement has been limited. We’ve noted limited applications of blockchain tech to specific real estate issues like listing databases or mortgage payments. There’s been no large-scale attempt to buy into the real estate market as a whole.

REAL solution

Meet REAL. REAL is interested in the big show: making it possible to invest in and even purchase real estate with cryptocurrency. That’s new.

In fact, it’s new two ways. Not only is it, y’know, using a completely new form of money, it’s doing it in a way that’s still drawing open-mouth stares from Realtors and commentators alike when it’s being done with normal dead-tree/president money. That would be low-equity investment.

TL;DR on low-equity investment, or to use REAL’s term, “real estate crowdfunding,” goes like this. Instead of a single party owning a given piece of real estate and selling it to another via a structured series of payments secured with collateral (or “mortgage”; you may have heard of it) a group of investors, not necessarily connected, buy shares in real estate like any other investment and profit from any rise in value.

REAL is a real estate crowdfunding platform.

It lists properties interested in being crowdfunded, accepts investments in REAL Tokens, its in-house cryptocurrency, and pays out in Ether, a more widely used cryptocurrency, to be spent on cars and sandwiches and things.

So the REAL offer is twofold: cryptocurrency and crowdfunding. Rad. Who cares?

Pro cryptocurrency

REAL’s argument for cryptocurrency is pretty much the same as NAR’s, as explained here: real estate requires investment, and cryptocurrency is a giant pile of value no other investment space has seriously leveraged yet.

Investors with limited options get a huge chance to profit, real estate gets committed investors – win-win.

Their argument for crowdfunding, however, goes a step beyond. I have previously waxed lyrical on the benefits of distributed risk. That’s always been the problem with mortgages as a financial tool: failure sucks, hard, for everyone. Having multiple investors rather than a single mortgage means a bunch of people benefit when things go well, and one person isn’t left holding the bag when things don’t. That provides means to forego conventional foreclosure, since all investors, occupants included, have a vested interest in the property getting more valuable and don’t lose everything if things go south.

That’s good news both for the P&L sheet and the soul. Due respect to our Dickens villain readership, most real estate professionals don’t actually like making people homeless.

REAL identifies a plus that didn’t occur to me, because, for once in my digital life, I wasn’t thinking in terms of blockchain. Crypto plus crowdfunding equals international.

Being peer to peer, cryptocurrency values are determined between people directly.

They don’t care about borders. There’s no difference between an American REAL Token and a Chinese one. Real estate crowdfunding alone was worth $3.5 billion last year. Forbes estimates the global crowdfunding industry as a whole at $300 billion by 2025. That’s a lotta tokens.

What’s to come

Whether REAL’s model is the best way to take advantage of that is an open question. What isn’t is that both crowdfunding and cryptocurrency will be a part of the real estate market in the coming years. Plan accordingly.

#REALinvestment

Matt Salter is a writer and former fundraising and communications officer for nonprofit organizations, including Volunteers of America and PICO National Network. He’s excited to put his knowledge of fundraising, marketing, and all things digital to work for your reading enjoyment. When not writing about himself in the third person, Matt enjoys horror movies and tabletop gaming, and can usually be found somewhere in the DFW Metroplex with WiFi and a good all-day breakfast.

Real Estate Technology

IBM’s first commercial quantum computer means the future is HERE

(TECHNOLOGY) IBM announcing they’re selling quantum computing means technology innovation is about to accelerate at a breakneck speed.

Published

on

ibm q-system-one

IBM unveiled the first commercially available quantum computer at CES 2019 last week and our brains are exploding!

Named the IBM Q System One, this is the first approximate quantum computing system available for business enterprises and scientific research. The arrival of a workable quantum computer has been expected for some time, and this announcement proves the future is here. Buckle up.

Quantum computing is vastly more powerful than the classical computing we’re used to in our phones, tablets, and laptops. In short, classical computers use a binary system of 0s and 1s to express information.

Quantum computing uses qubits that are able to be in multiple states at any given time that increases processing power exponentially. Since systems in the natural world are based in quantum mechanics, having computers that can also work compatibly with those systems will make a huge difference in fields like pharmaceuticals, transportation, finances, and artificial intelligence.

IBM Q System One is a 20-quibit system combining both quantum and classical computing components. Although 20-qubits is short of predicted capabilities, it would give companies the means to run complex experiments outside of a research lab.

It has the capacity to upgrade as IBM releases new developments. If other companies are able to use this tech, then it will also speed up the possibilities/need to add improvements. We can expect to see exciting tech news in the coming years.

Previous glimpses of quantum computers in development have shown large and bulky monstrosities tangled in wires and connected to cooling systems. IBM Q System One is designed as one sleek, compact package: a black case hanging from the ceiling of a sealed 9’ x 9’ case of borosilicate glass. Clearly IBM isn’t messing around—anyone having flashbacks to the iPhone announcement of 2007?

Companies will need to work with IBM directly in order to buy their own IBM Q System One. We can only wait and hope for the day when this big boy is more widely available. Seeing as how computers haven’t been around long in the first place, our wait will likely be shorter than you think.

Continue Reading

Real Estate Technology

FCC rule change should make you want to stop text messaging

(TECHNOLOGY) The rules have changed when it comes to text messaging and your privacy is now at risk – time to reconsider your habits.

Published

on

text messaging

Most of us take for granted that we can send and receive text messages with whomever we want, and that these messages are private and secure. But a new rule change prompted by the Federal Communications Commission (FCC) gives your wireless company the right to monitor and even block your text messages.

The rule change is the result of an FCC vote that took place at the end of the year, which reclassified SMS and MMS text messages as “information services” instead of “telecommunication services,” and thus, subject to different rules under the Communications Act.

This change is comparable to the FCC’s earlier reclassification of broadband internet providers as Title I information services, a change that stripped the FCC of its ability to provide oversight to ensure net neutrality.

And indeed, this latest rule-change has brought up similar concerns over neutrality, privacy, and the downside of giving corporations unchecked power over our communications and access to information.

The FCC and its chairman, Ajit Pai, are celebrating the change as a positive step towards reducing SPAM and robotexting.

Pai told CNET, “we shouldn’t allow unwanted messages to plague wireless messaging services in the same way that unwanted robocalls flood voice services.”

When the FCC reclassified broadband carriers, critics argued that this threatened net neutrality by giving ISPs the ability to block content and create paid “fast lanes.”

These concerns are echoed in regards to the text messaging rule change.

In a letter to Pai ahead of the vote, Democratic senators wrote that wireless carriers would be able to force customers “to pay for more expensive short code system or enterprise text messaging to reach their audience.” Democrats also say that the rule change gives wireless providers the power to curb free speech by censoring or blocking “legal text messages if they believe that the content is controversial.” For example, in 2007, Verizon blocked NARAL Pro Choice America from sending messages to its supporters.

As only three percent of text messages are classified as SPAM, critics of the rule change feel that the sacrificing free speech and messaging neutrality for the sake of reducing unwanted messages is too high a price to pay.

Senator Markey of Massachussetts condemned the decision, saying that the FCC was failing in its “obligation to promote competition and freedom of speech over telecommunication networks.”

Iphone users texting one another using iMessage will be unaffected, as iMessage does not use SMS or MMS.

All other text messages are potentially subject to the rule change. Gizmodo recommends using the Signal app, which encrypts messages and isn’t subject to the same rules as wireless providers.

Continue Reading

Real Estate Technology

Hackers target associations – how to protect your brokerage, yourself

(TECHNOLOGY) Hackers are increasingly targeting associations, and while they set their own policies to protect themselves, here’s how to do the same for you and your company.

Published

on

associations hackers

It all seemed so routine. For officials of both the Henderson (TX) and Boulder Valley(CO) public school districts, the email that they received from an existing construction vendor asking them to update their automated payments to new bank information was nothing seemingly out of the ordinary.

Only when vendors began to inquire about the status of payments that the districts had sent did the districts come to realize that the routine change had made themselves the victims of a scam known as a BEC, or a Business Email Compromise.

In each case, the losses ran into the hundreds of thousands of dollars before being discovered. Henderson ISD lost approximately $610,000 to the hackers and Boulder Valley Public Schools lost approximately $870,000. The fiscal hit was accompanied by reviews of and changes to their operating procedures to ensure that such a loss wouldn’t happen again in the future.

While the districts tied their losses to public transparency, with information about the vendors and the scope of work that each was involved with available on their websites, government officials said that such schemes are typically quite sophisticated and ongoing long before any request for money, in order to establish a level of trust with their victims.

Secret Service Agent Bill Mack, speaking to the Tyler Morning Telegraph, noted that “[w]e’ve seen an uptick in the number of cases…Contact is often made long before the request for money. Criminals will use a compromised network to gather information about the target. Then, appearing to be a legitimate representative of the vendor, they will often request a simple change in account numbers.

With FBI estimates as to the annual cost of cybercrime reaching over $2 billion dollars annually, and those losses only partially recovered through either the efforts of law enforcement or insurance, it’s important to recognize the fact that as scammers and hackers expand beyond the tired trope of the 419/Nigerian Prince, they’re now targeting new avenues, such as governmental entities and private associations (perhaps even your local real estate board/association).

While professional associations have been the targets of hackers since at least 2010, according to Ed Schipul, they’re coming under increasing levels of attack.

As a professional member of an organization, we depend on their advice, counsel, and information about upcoming trends and events. We rely on the communication that we receive from them to be timely, accurate, and most importantly, not be harmful to us, professionally or personally.

Assuming that the associations themselves are taking steps to protect their cybersecurity, how do we, as members protect ourselves from hackers?

The Federal Deposit Insurance Corporation (FDIC) has tips on staying safe from hackers in an ever-connected world:

• Be suspicious if someone contacts you unexpectedly online and asks for your personal information.
• Only open emails that look like they are from people or organizations you know, and even then, be cautious if they look questionable.
• Be especially wary of emails or websites that have typos or other obvious mistakes.
• Verify the validity of a suspicious-looking email or a pop-up box before providing personal information.
• Don’t immediately open email attachments or click on links in unsolicited or suspicious-looking emails.
• Install good anti-virus software that periodically runs to search for and remove malware.
• Be diligent about using spam (junk mail) filters provided by your email provider.
• Don’t visit untrusted websites and don’t believe everything you read.
• Criminals might create fake websites and pop-ups with enticing messages intended to draw you in and download malware.

In the case of officials at the districts, one measure that was implemented in each is worth remembering in a click-and-send era; they promised to have their respective staffs pick up the phone and call the vendor when any type of banking information was requested, to verify the request before providing information.

When dealing with our associations, if we receive an email or other outreach that seems out of character for them, it’s a good reminder to call and ask them if they’d intended to send it out before we take electronic action.

Continue Reading
Advertisement

Our Parnters

Get The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox!

Emerging Stories

Get The Real Daily
in your inbox

subscribe and get news and EXCLUSIVE content to your email inbox