NFTs for CRE - possibilities and downfalls for developers
Hey Guys,

I ve been working the last 7 years in residential re development. I m currently trying to get into NFTs for RE Developers. As my starting point I ve worked out a couple of different use cases and want to use this platform to discuss with different people about the possibilities and downfalls of these tokens for RE projects.

My thoughts so far are the following scenarios:

1) link the direct ownership of a property to a single NFT to sell the NFT to a single person and therefore the ownership of that specific property 
I think this is suitable for smaller properties like apartments but I see a problem in the lach of legal infrastructure in the way of linking the ownership directly to a token 

2) link the direct ownership of a property to multiple NFTs  and sell them to different people - in the way that the ownership is divided between the different owners of the tokens 

This can be suitable for bigger properties like an apartment complex especially if you can link single apartments to the tokens - I see the same legal problems as before and i see problems in finding transparent ways for split decision making 

3) link the ownership of a legal entity that owns a property to a single or to multiple NFTs - the nft owners therefore become shareholders in the company that owns a property and are involved in decision making and distribution of income 

The legal framework and money laundering laws can be a problem here i guess 

4) use NFTs as a financial vehicle to gather equity for RE dev or construction projects 




I think revenue for the NFT owners could be either via the right to get part of the rent from tenants in a holding strategy project or via the right to get profits linked to nft ownership in dev or construction projrcts with a fix and flip or classical dev and sale or dev build and sale strategy. 



I see a lot of potential in this technology - fundings can be separated into small amounts and an international group of small investors can invest easily in a certain market. Re becomes quickly and easily tradable via this strat and standardization can be implemented. 

I also see a potential of overwriting RE deals early in the market as nft s are a hype product and investment can be small - like buying a 100 dollar nft that is backed by a 80 dollar value equivalent in real estate therefor ramping up re prices 



What are your thoughts about this ? Where do you see different strategies problems advantages and disadvantages ?
[{"id": "i57xugm", "text": "You can\u2019t tokenize the properties themselves. That would require a lot of changes in legislation. What my company does is tokenize the LLC of company that owns the property. Someone can then purchase the tokenized LLC and acquires the property in doing so. Its quite new, but that\u2019s essentially how real estate and NFT are merging.", "replies": [{"id": "i5b49i0", "text": "You can\u2019t tokenize an LLC. That would be a security. Make a C-corp.", "replies": [{"id": "i5b5w84", "text": "Private placement security exemption.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i59a5c5", "text": "Huh?", "replies": [{"id": "i5d09pi", "text": "Huh what ?", "replies": [], "depth": 2}], "depth": 1}, {"id": "i5bhj8o", "text": "I thought about the lack of a legal franework for a direct ownership via a token. \n\nIs your llc model us based ? \n\nI m thinking about european or more specific german market - ownership of a llc has to be registered via a notary and written into a governmental register - is it the same for us? How do you technically do that ? \n\nThere is something similar to a c corp here - you can become associate via a private contract and then the ceo can register you via a notary - this sounds easier to me", "replies": [], "depth": 1}, {"id": "i5jqord", "text": "There's always been a lot of chatter about blockchain and real estate transactions.\n\nIt's very clear that the American system of titling and registration is shambolic, inefficient, and extortionately expensive, but that's all by design thanks to our friends in Title insurance an industry that is relegated to the sidelines in most countries.\n\nAlmost all countries in the world use a variation of the excellent Australian Torrens Title system, which sadly has been roundly rejected in America due to determined lobbying from title insurance companies and a general desire to not change things up. \n\nThe same forces that keep good changes at bay will also keep dumb changes (nft) at bay.\n\nBut hey, I'm just talking rubbish.", "replies": [{"id": "i5lkk35", "text": "I see the problem that you are pointing out. For the situation here in germany it is similiar - there is a torrens title system in place that is highly regulated slow and expensive run by the govt via official registers and notaries that are able to change entries in that register. \n\nWhy do you see nft s as a dumb change ?", "replies": [{"id": "i5mc1ya", "text": "Blockchain doesn't offer any comparative benefit to the existing title system, apart from being obscenely power consuming and rigid. It's not like using blockchain to record data is any quicker than using word/excel or whatever database management systems they may have in place.\n\nIf a title office is slow, it's not because the technology they're using is slow, it's because their staff are backlogged. \n\nAgain maybe in America where most things suck and people worship snake oil could be a successful location for blockchain, but again no benefits over existing systems that are used everywhere else.\n\nEdit, the fact that you keep saying 'NFT' instead of blockchain (being the underlying technology) tells me that you're either drinking cool-aid or selling snake oil. Either way, be careful.", "replies": [{"id": "i5nit0x", "text": "I d say that there are benefits over the existing system - just imagine buying berlin based partial property without any problems right from your us based home ...\n\nStaff is backlogged that s true - but i think there won z be a way soon to solve this problem \n\nAs for the energy consumption for the underlying blockchain tech - that should be solvable in the future via a prrof of stake concept not proof of work ? I d say the energy consumption is still cheaper than the fees \n\n\nI say nft because in my opinion that usage of the blockchain tech is the most suitable \n\nI m always sellibg snake oil not so keen on the kool aid though ....", "replies": [{"id": "i5r11yo", "text": "You remind me of me 10 years ago when I was convinced bitcoin was going to change the game lol.\n\nThe sooner you move on from this rubbish the sooner you can join the real world.\n\nWhether you realise it or not, you're peddling BS, which is totally fine, some of the richest people on earth got there by ignorance and deceit. Though I think you should study up on real estate and property more, nobody will take you seriously if you're trying to sell a bad solution to a problem that literally doesn't exist.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5r1a4l", "text": "What would you recommend studying on ?", "replies": [{"id": "i5r55r2", "text": "Firstly the history of bitcoin/blockchain/crypto/nft etc etc as you'll soon realise the revolutionary technology that you believe in is just a rebranding of that exact same failed shit from over a decade ago.\n\nSecondly determine what the actual problem is that you think that your magic, expensive, slow, basic and energy consuming technology is solving.\n\nThirdly learn about the conveyance process, land registration, title transfer and title insurance.\n\nEdit: not having a go at you, like I said I understand you I was once like you! You'll figure it out just like everybody did in your own time.", "replies": [], "depth": 2}], "depth": 1}]