Many believe cryptocurrency will change the way people invest in commercial real estate for future generations. It is an easy way to hand over a large amount of currency to the party you purchase a property from. Considering the use of cryptocurrency with commercial real estate is still a relatively new concept, very few people know they can purchase commercial real estate with it. In order to do this, the investor must find a commercial real estate brokerage that accepts this type of currency.
Finding a Commercial Real Estate Brokerage That Accepts Cryptocurrency
If your goal is to pay with cryptocurrency, without having to convert it to cash, you must find a brokerage that accepts cryptocurrency as a form of payment. There is a very limited number of commercial real estate brokerages in the United States that accept cryptocurrency, but it is possible to find one.
How a Commercial Real Estate Brokerage Accepts Cryptocurrency
For a commercial real estate brokerage to accept cryptocurrency, they must set up a virtual wallet. Every user of cryptocurrency must have a virtual wallet in order to store and receive the cryptocurrency. This is why you cannot purchase a commercial real estate property with cryptocurrency from any random brokerage. Virtual wallets vary in price and can even be free depending on the company chosen by the user.
Once the commercial real estate brokerage has obtained a virtual wallet, they also need to download a special app to their phone or computer. These apps are payment processors to complete the commercial real estate transactions. They generate unique quick response (QR) codes to transfer the payment. Just like the many options for cryptocurrencies, there are many options for these apps. Some come with fees for monthly use or take a percentage of each transaction, so be careful about which app is used with your transactions.
The Benefits of Using Cryptocurrency With Commercial Real Estate Investments
You will find many advantages to working with a commercial real estate brokerage that is willing to process your cryptocurrency payment.
As described above, cryptocurrency transactions are fairly easy to do. If you are able to pay for a property in full at the time of payment, there is no need to go through a bank to purchase your property. All you have to do is own one of the payment processing apps and scan the QR code from the seller.
Cryptocurrency transactions are much more secure than transactions with standard currencies. With a transaction using a cryptocurrency like Bitcoin, a blockchain is used to securely transfer your data and money. Blockchains are blocks of data that are linked through the use of cryptography, so they are very secure.
A Great Investment Tool
Cryptocurrencies like Bitcoin and Ripple rose in popularity because people recognized their investment benefits. The exchange rate of cryptocurrencies is constantly changing, which is great if you know how to invest well. Also, you can buy commercial property when the cryptocurrency’s exchange rate is high so you get a great deal. You can also sell your property in return for cryptocurrency to continue benefiting from the exchange rate.
International Payments Made Easy
Many commercial real estate owners make a point to own property outside of their country. Purchasing a commercial real estate property in a different country can be very difficult with standard currencies. Working with banks from different countries can result in hefty charges and long wait times. With cryptocurrency, a transaction between the United States and Australia [for example] can be done in minutes.
As you may know, working with a bank to get a loan on a property can result in even more money spent. This is because of the high interest rates charged by banks. As mentioned above, cryptocurrency transactions do not require the use of a bank, credit card loans, or a credit score check. This can save thousands, and in some cases, millions of dollars for the buyer. Most cryptocurrencies and payment processing apps have no service fees, and if they do, they are very low.
Using Cryptocurrency to Purchase Commercial Real Estate Properties
Cryptocurrency is a great option for purchasing investment properties. From its high security, low-cost, and easy transactions, it is most likely going to change real estate. If you would like to purchase a property with a form of cryptocurrency, be sure to verify the brokerage you are working with accepts it as a payment. In most cities, you will have no problem finding a brokerage to work with.