First Ever NFT House Sale Opens Route to Easily Fractionalize and Collateralize Real Estate

A three-bedroomed house in South Carolina has just been purchased by a real estate investor through the OpenSea non-fungible token (NFT) marketplace. The NFT was sold last weekend for $175,000 in USDC tokens.

NFT house in South Carolina sold for $175K

The purchase of this NFT house was enabled by Roofstock OnChain, a web3 subsidiary of Roofstock. Roofstock is a company that specializes in listing single-family rental properties. The company, created in 2015, has been behind more than $5 billion worth of investment transactions since it was founded, making it one of the largest players in the real estate sector.

The buyer of this NFT house is Adam Slipakoff, a real estate investor. Slipakoff said that he was able to buy this house in a single click. The house was fully title-insured and rent-ready. The ease with which Slipakoff made this purchase highlights the efficiency of the technology supporting web 3.0 & crypto projects.

The sale marks the first NFT deal the real estate company has made. The chief blockchain officer at the company, Geoff Thompson, commented on this sale, saying that it was a “major milestone” that gives buyers a simple way to buy rental properties.

The initiative has bridged the gap between the virtual and the real world. Every buyer holding an NFT of a house listed by the company will instantly have ownership of the actual property.

The rental properties sold on the platform through the NFT are owned by an individual single-purpose Limited Liability Company (LLC) registered in the state of Wyoming. The sold NFTs are linked with the sole ownership of this LLC.

The buyers’ names must be revealed to the public because of legal requirements. There is a process that is followed by the buyers that want to join the site. The setup process requires that the buyers mint a non-transferable membership token.

The membership token will be accompanied by a “verified buyer” flag that allows the buyers to connect to an NFT marketplace and buy a Home OnChain NFT in one click. This will result in the sale and settlement of the property.

A spokesperson from the company commented on this innovative approach to real estate sales, saying, “The sale of the NFT results in a change in the ownership of the LLC, and thus the underlying property.”

Roofstock brings NFTs into real estate

Roofstock secured $1.9 billion in a Series E funding round conducted earlier this year. The series of funding rounds conducted by the company have provided Roofstock with the resources needed to transform the traditional real estate market.

Roofstock has also partnered with the Origin Protocol to unveil an innovative real estate project that relies on tokenized technology. The Origin Protocol and Roofstock have launched an NFT marketplace focused on physical real estate. The company claims it lowers seller fees by up to 50% while giving more value than traditional real estate.

According to the chief blockchain officer at Roofstock, Geoffrey Thompson, tokenizing the real estate sector created frictionless transactions that simplified the process and made information readily available. “The whole ecosystem exists for one purpose: for the buyer and seller to have a trusted relationship,” Thompson added.

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