How to use cryptocurrency in Real Estate?
- Apr 15, 2022 - Pure Living News
- Apr 15, 2022 - Pure Living News
Real Estates are seeing an exponential demand of potential crypto buyers. However this is yet a very unknown sector with a lot of questions to be answered. Today, Megan Nilsson, expert in Cryptocurrencies and NFT will help us understand a more of how to trade Real Estate with crypto. We will talk about what crypto are, how to use them, their implication in real estate and possibility to purchase a property with them . We will also discuss on NFT´s, Metaverse and how real estate is getting evolved in all of this much quicker than expected.
JAVIER: Hi, Megan. Hi, how are you? Thank you for coming. We are very excited to know a little bit more of this Crypto that’s happening all over the world. I know you have been in Dubai.
MEGAN: Yes, it’s been incredible. And first of all, thank you for having me. It’s really exciting to be here. And yeah, we’re going to do like a world tour for crypto and attend all the major conferences. And it’s very important for me, working in the field to be at the cutting edge of everything that’s happening. We just came back from Dubai. We’re here in Marbella for a couple of days and then on to Miami.
JAVIER: Can you tell me when you started, why you started, why you feel like you have to be in this world?
MEGAN: Yeah. I’ve always been interested in investing and finding ways to earn passive income and make the money grow. And at first, I was interested in kind of like growth stocks when I first started out. And I read and listened to so many audio books, I mean, hours and hours and hours trying to figure out what it was that I liked and what caught my attention and sparked my passion. Right. So I came across Bitcoin in one of these audio sessions that I was listening to many years ago. And that started to Pique my interest as a new way of doing things and new opportunity that was much, much more lucrative than anything else I’ve ever seen. And I also did a master here in Madrid in 2009. And we had had a reunion for the first class. It was presented by Google. So it was a master for Google digital business. And they flew someone over from the block chain, a major developer, and he gave a talk at this reunion. And that was what really got me going after he gave this talk. And plus, after having heard about it and read a little about it, and after I started to get to know a little more about it, I never turned back. It was like something clicked and my whole world was just different from that point forward.
JAVIER: I remember meeting you, I think it was two years ago, and you start talking about crypto and we talked for hours.
MEGAN: That sounds like me. Yes. I am really passionate about it. So I could talk for days, really about this. It is my whole world now. It’s my 1s dedicated to crypto and everything inside of the crypto world.
JAVIER: So why don’t you tell us, for someone who’s new at crypto and doesn’t really know how it works. Tell me something that people that don’t know nothing at all.
MEGAN: Yeah. I mean, actually, it’s the majority of the world is still very new to crypto, and people who work in crypto, we think that everybody knows what we know, and everybody is aware of what we’re learning, and it’s just not that way. On the adoption curve, the technology adoption curve, we’re about 3.5%. And in order to incur mass adoption, we need to get to about 16% to 17% when it starts. So we are still early adopters. We’re still in the early adopter phase. So for everybody who’s watching, who is not aware of what cryptocurrency is the most basic way to explain it and how Satoshi Nakamoto, the creator of Bitcoin when it was first launched in 2009 in January, just after the recession, he envisioned it as a peer to peer payment network that we would be able to transact with our money on our own accord, without a banker having to verify the transactions. So everything was autonomous, and it was on a ledger that everybody could look at very transparent, and that would allow us to exchange money peer to peer, with no central entity, no centralized banker approving the transaction. So it was meant for us to be able to have financial sovereignty, and that was how he first envisioned it. So a peer to peer payment network. Since then, Bitcoin has transformed a little bit into more of a store of value, more than a payment network, as he originally envisioned. But there are many cryptocurrencies that are actually working, working as forms of technology that do many different things. And within this whole ecosystem, Bitcoin is more like digital gold now, where people store their wealth when they want to preserve their wealth within crypto.
JAVIER: With a lot of people that talk about the crypto and what is happening. Most of them really don’t know how to act. And really they are very afraid of investing in crypto and knowing if it’s safe, not safe and how the future will bring us. I mean, it sounds very good, but what can you say to these type of people who are still a little bit afraid?
MEGAN: Yes, 1s the majority of people now probably are a little bit hesitant. And that’s one of my missions as a professional in this space is to kind of create awareness and educate people on what actually crypto is and how it can actually change and revolutionize their lives and their financial freedom and their financial situation is such an opportunity now, and it’s normal to be afraid of something that’s new and that you don’t understand. But I would say to those people that if you’re going to wait until Bitcoin is kind of a sure thing and for Bitcoin to reach incredible heights until you decide, OK, now I want to do it until everybody around you is investing in this, then a majority of the opportunity is already passed you by. So the move to be doing now is to look to professionals who you trust, to teach you about it, to learn as much as you can, and to go 100% on this now so that you understand what it is. And then it takes kind of the fear away when you’re when you build that understanding.
JAVIER: There’s so many crypto currencies, most popular are Bitcoin. Can you tell us something which ones can we trust more, which are new but could be in the future a good investment?
MEGAN: Yeah. I mean, there’s so many cryptocurrencies. And just like in any space when there’s lots of opportunity to be had, there are also coins that are kind of scams or that aren’t doing positive things for the community. And , I work as a consultant for high end portfolios of crypto and NFTs, as well as for people who want to learn on a basic level. And you need to actually do your research and get that education on what are the coins that are actually building in this space from people who have vetted those coins, who have talked to the team and the founders and coins that have been around for a really long time that are doing revolutionary things. Some of those other coins Besides Bitcoin and Ethereum is Cardano, which is a smart contract coin, kind of like a theorem in a similar space. We’ve got so many coins that are doing so many different things. And I would consider them more like technology even than coins because they’re all solving different problems. So in order to filter through all of those coins would be important to do a lot of research or to learn from somebody who has done that research good.
MEGAN: Yeah. So NFTs are very important, especially for what we’re going to touch on today about real estate. And you know, the Metaverse and digital land. Nft stands for nonfungible token. And the most easy way to envision what an NFT is. 2s You are the owner of digital currency or digital identity. So basically on the blockchain, you can verify your digital ownership of a unique token. So unlike Ethereum or Bitcoin or fungible tokens, which are all the same, there is never one NFT that’s the same as the next. They’re all completely unique. And that’s what makes NFT so special is that that’s your unique digital ownership. So even though there can be a picture of art, music, a gift, even a tweet, it’s what’s behind that picture that matters. It’s your digital key to the ownership of that asset. And that asset can even be a real world assets, such as a home or an apartment.
JAVIER: So you’re saying that it be possible that people buy houses or whatever, cars with NFTs?
MEGAN: Yeah. So the question usually comes in is how can I purchase a home with crypto? And the better question or the better answer to that is actually crypto and NFPs are going hand in hand in this case, that you can purchase a home through an NFT with your crypto and the NFT acts as an added layer. So this is a really cool concept in that the NFT acts as the ownership title to the home. So imagine if you could actually do a transaction as quickly as you would transfer through Venmo or Revolut here in Europe, a revolution transaction and own the title, the deed of a home that quickly anywhere in the world.
JAVIER: How do you think that governments are going to be handled all of this? Say that you want to purchase this apartment of €4,195,000 in NFD or Bitcoin. I understand that you have to set that into Euros
MEGAN: Right. The owner of the property would then decide what they wanted to accept as the digital currency, whether that be Bitcoin Ethereum or whatever the currency they choose. And then through the smart contract that is written to transfer the deed, the title deed of the house, then they can set the parameters. So if the house is worth €4,100,195, then you can set that in a smart contract that will execute the equivalent of the cryptocurrency of choice. And so when everything has been cleared and all of the conditions have been met, that smart contract can execute and then the deed will be transferred to the new owner.
JAVIER: And then you will have to go to the notary if you are in Spain. And then you will have to pay taxes. That will have to be in Euros, obviously.
MEGAN: Mainly in the jurisdiction that you’re working with. So the only issue here and this is because we’re so new, is that government regulation is different in every area. And a lot of times the government regulation hasn’t been so set forth or laid out yet. We’re so new that a lot of the regulatory concerns around this type of transaction and crypto and all of that isn’t so set in stone yet because we’re new and they’re still coming up with new regulations every day. In fact, the US just announced that they’re looking into making new regulations for crypto, which isn’t actually a bad thing, because then it allows for people to be able to do these transactions and know that, but they’re completely within the scope of the law.
JAVIER: Okay, so let’s say that we have somebody that wants to buy this unit and the buyer is paying in crypto or NFT. However, he doesn’t accept crypto, he will accept euros. That could be changed. How fast and how safe or what value do you give? You give the right moment of the market or you set up a price for value.
MEGAN: So you’re asking if the owner wants to accept Fiat currency and the buyer wants to pay in crypto.
JAVIER: Yeah. You want to buy it in crypto, but I only have set your euros and then you have to exchange from crypto to Euro.
MEGAN: Yeah. I suppose that would require a payment gateway that would convert those in the moment.
JAVIER: That could be possible?
MEGAN: It could be possible, yeah. But the real goal or objective there is to actually do the entire transaction in crypto or NFT’s in both. So that way we wouldn’t have to do those conversions because the whole point is that you’ll be able to pay in that crypto and then the other person will be able to accept in that crypto as well. But yes, there could be that. There could be a conversion of those. Of course.
JAVIER: Who can do that. You are doing this process or other professionals in the area?
MEGAN: processing payments?
JAVIER: yes, or exchange the cryptocurrency into Europe or dollar and then all those process, I don’t know if it costs you a fee or Commission because this is so new that everyone. Can you can pay me in whatever you want?.
MEGAN: Right. Okay. So now I think I understand the question. So more than actually converting it in the moment, what you’re asking is if I am the owner of the property and I receive the crypto, how can I exchange that back to Euro?
JAVIER: Or you can exchange it just before transforming my crypto into Euros.
MEGAN: Right? Well, that would be done through a payment gateway, most likely. But if you receive the crypto and you want to then trade it for a stablecoin or actually a Fiat currency, there are many different exchanges that can be used. I also have a broker that I use for myself and my clients in Australia who process these transactions instantaneously. And they’re very fast and it’s very easy because a lot of times when you try to do crypto transactions here in Spain, for example, the banks, they block the transactions to the exchanges because crypto is so new and the banks haven’t yet found a way to be able to coexist with that. So what I recommend my clients is they use a broker, and this broker, for example, in Australia, charges a 3.5% fee for the conversion, but you can transfer the money, the Fiat currency, back and forth with no issue seamlessly to your bank. Whereas if you were to convert that money on an exchange and try to get it back to your bank, a lot of times the banks block the transaction.
JAVIER: One of the things that happened pan in here, and they’re very strong with it is the money laundry. So let’s say when you come with your crypto, do you prove where you get it? Did that happen to you before?
MEGAN: Well, I mean, everybody is working. Crypto is basically just like when you sell it, it’s capital gains tax. So everybody just like in the real world has the duty to report that to, to their tax authority wherever their jurisdiction is, and that’s their prerogative. So, yes, you, of course, can prove where you have received those funds from, and your accountant should be able to account for that on your balance sheets and all the transactions that you’ve done. So that’s up to that individual to report their taxes, as is any kind of tax
JAVIER: I have another question. If I want to open an account of crypto, NFT for someone that really doesn’t know anything about it, how do you do it? How can I open crypto account?
MEGAN: Yeah. So there are many different exchanges you can use in the US. One of the most popular and most known ones is Coinbase And that one is a lot of people like it because it’s easy for it’s user friendly. For beginners, it’s a little bit higher fees, but it’s very good exchange to use, especially for US investors here in Europe. I also like finance quite a bit. And they actually just announced their headquarters in Dubai, which is becoming a very crypto friendly environment. And also the broker that I discussed in Australia, they’re called Caleb and Brown, and you can open an account with them and they can transact directly. So what that means is they can buy the assets, the digital assets, over the counter. And that means that on exchanges, for example, when there’s high volume, a lot of times the exchange shuts down completely and you can’t get your order filled, you can’t get your money out because the exchanges, they do these kind of things when the volume is high. And also they can freeze your account out because they are centralized entities. So if something happens or a new law comes out and you have your money on the crypto exchange, they can just freeze your account if they need to because of whatever happens. Whereas an over-the-counter broker always has access to these assets and always has liquidity to sell the assets in the moment. So those are kind of like the pros and cons of using both an exchange and a broker, but they both work. And then as far as wallets, there’s a lot of online storage, which is meaning we call it a hot wallet, which is connected to the Internet. It’s online, for example, the coin based wallet.
MEGAN: A lot of people use that one, Meta Mask, which is very popular, to buy NFTs on the most popular marketplace called open-class based wallet. And then to keep the assets extra safe, I would recommend a ledger hardware wallet that is a wallet that is never connected online. And it’s an added layer of security.
JAVIER: So there’s no access to that account. You can block it, right?
MEGAN: Well, the account is never connected online, but it’s safer if you have that one just to store your assets and another one to buy and sell. So that would be where you transfer of the money to store it, to keep it safe. And then if you want to transact or you want to buy something or sell something, then you can transfer it to another wallet. That’s what I recommend to my clients anyway.
JAVIER: And what type of cost or fees do these companies take to keep your money. Do you have cryptocurrency fees to buy and sell?
MEGAN: Yeah. Just to keep your 1s amount of fees that the traditional banks are giving you in Spain are very high. Yeah, that is an issue. And as I mentioned before, I do consult for high end portfolios. And my clients tell me that they have to even pay to keep their money in a bank, which is absolutely insane. So you can keep your crypto in any crypto wallet absolutely free. But it’s much better than that, actually. You can earn lots of interest on that money through all of these crypto wallets, anywhere from five to 20% to 30%. In fact, this is a little bit more of a concept. But you can also provide liquidity for trading pools. And you can earn I’m earning for some of the coins that I’m staking up to 110% API. So imagine the kind of power you have now. You have access to tools that before only institution investors had access to. And institutional investors, accredited investors are people who have millions of dollars. And now anybody has access to these tools, and anybody can do that with their money. So it’s really powerful.
JAVIER: And if you have to choose or a country that is advanced with the cryptocurrency. Dubai?
MEGAN: Yeah, actually, we were just in Dubai, and I really love Dubai for many reasons. But the crypto atmosphere fear there was incredible. There were a lot of people building in that space there. It’s kind of like the hub now of cryptocurrency. Another crypto friendly place is Portugal that just announced recently that they want to be also on the forefront of this movement. So Dubai is a 0% tax, which is amazing. The only tax there is in Dubai. If you have a company is a 5% VAT. If you are actually transacting in Dubai with other companies in Dubai or the Emirates. At this moment, it will be easier to buy a house with cryptocurrency in Dubai than any other place, most likely. It’s always easier when there’s more established regulation. It’s harder in countries where that regulation still hasn’t come yet, because we’re kind of working around it and trying to understand it as we go.
Javier: Do you see people over there more open-minded about crypto?
MEGAN: Yeah, much more open-minded. But as I said before, the space is so small that the people that are interested in crypto is such a small group. We’re not anywhere close to mass adoption yet. So actually, what I wanted to talk about was some examples of land that has been purchased through crypto. One of the examples was in Florida. Actually, it was the first documented case there in the US that a house was sold for $650,000 through an NFT. And actually both the buyer and the owner, as far as I’m aware, of, both women, which is really cool because I’m also an advocate for women in crypto.
JAVIER: What age?
MEGAN: I don’t know the specifics, but I know they were both women, and it was pretty cool to see. So they put the house on an auction, and they put the title of the house, a deed as an NFT, and people on it until the owner decided to accept. The bid. So that was one of the first documented cases. And actually, this is going to be the future. Our whole lives are going to be run off NFTs. We’re going to get in our car.
Javier: My son will love this. Yes.
MEGAN: We will get in our cars, will open our houses. Everything will be done through NFTs, even the owners club here at Puente Romano that we’re both members of. We will actually be able to get into that member’s club through an NFT because just take a piece of art, for example. How is the process to be able to verify that that piece of art is real and is authentic? It’s a lot of money and time, and you have to hire an art specialist. In NFT, anybody can look on the blockchain and verify that you’re the digital owner of that.
JAVIER: So if you buy an NFT, then you will get a title. What do you get that meaning that is yours?
MEGAN: Yeah. So in the case of a house, you would get actually the deed to the house, the ownership of the house
JAVIER: And the NFT?.
MEGAN: The NFT is just a representation of that digital ownership. So the NFP might even be a visual representation of the house or in some cases, which is really cool. Actually, there’s a project I haven’t vetted this project or looked a lot into it. It’s more about the concept. But there’s a project that came out recently that’s called Satoshi Island. It’s like a Bitcoin Island located between Fiji and Australia that they decided, okay, this is going to be an island for crypto people, and they’re selling now deeds to houses that you can buy that actually act as your key to the Metaverse as well. So you’re buying a plot of land with a house on the plot of land, but you’re also getting that plot of land in a digital world so you can visualize your house and be in your house in the Metaverse as well. So supposedly they have sold 500 deeds already. Whether or not this project succeeds, it’s the concept behind it that’s the future know, the future of real estate is all digital.
JAVIER: Are there other companies already working with the Metaverse? Let’s say that certain people wanted to sell properties at the Metaverse or land or apartments or villa, How does it work? How can we have access to this type of properties?
MEGAN: Yeah. Well, first I can explain, you know, what goes through. Somebody’s had, for example, I’ve invested in the Metaverse and I bought a plot of land next to the Board Ape Yacht Club. And my neighbor is Dead Mouth, the Artist and my other neighbor neighbors House Kitchen. So when I invested in the Metaverse, I was thinking I want to be in the Malibu of the Metaverse or the Beverly Hills of Los Angeles. Right. So there are different areas within that Metaverse and different Metaverses. The one that I’m referring to is called the Sandbox. That’s where all the major players are right now. And so if you have a client, for example, who has a company who wants to be in the Metaverse to get people to the traffic, the foot traffic, because the whole goal is that wherever you’re located in the Metaverse, you get the traffic from that area and it’s going to be more or less quality depending on who are the neighbors, just like in real life. Right. So, for example, if you have a client that has some kind of brand and wants to be able to be seen in the Metaverse, then you could advise that client on where to buy based on their needs and also based on the size, because there are different sizes of plots. For example, Snoop Dogg, he has an estate. It’s like twelve plots put together. And the bigger your plot, obviously, the more attention you call and the more traffic you can.
JAVIER: They’re already companies selling?
MEGAN: Yeah. So actually, one of the companies is our other neighbor. It’s called Every Realm. Every Realm. Yeah. And they are specializing in being brokers for people who are looking just for what we just discussed in the Metaverse to have a presence there and where best would suit them. So they are one of the only ones that I know of that are doing that now. So there’s a huge demand and very little companies involved in this sector right now because I think largely because people don’t understand the significance. But the funny thing is this generation, the upcoming generation, most of their first purchases of land are going to be digital. So it’s an upcoming sector that needs to be explored. So, for example, Pure Living, could have a plot in this Metaverse as your space where people can come and visit you in your digital office and you can help offer different plots of land within the Metaverse.
JAVIER: I think that Pure Living has a new era coming.
MEGAN: Yeah. Especially for these beautiful, sunny, Southern Marbell apartments that you’re 1s selling now and things you could also have a digital representation in the Metaverse. There are so many things you can do. There are different Metaverses now. So there’s one based out of Asia that are more popular in Asia. But the biggest one that’s happening now is it’s more US oriented and it’s the sandbox. There’s also one called the Central Land that is very popular, also more US oriented, but it will be expanding. One of the coins in my portfolio actually just launched a huge metabolic called Metropolis. So there was will be many developments happening, but it’s just a matter of being able to identify where are the best locations and the most traffic.
JAVIER: And how will you recommend someone to buy in one Metaverse or the other one? Meaning it will be like different areas, like, say, like buying and Marina and Romano or buying in Guadalmina.
MEGAN: Yeah. So like I was saying, it all depends on right now who your neighbors are, because obviously the land is not the same. There’s not like, okay, the oceans here. And it’s more based upon the type of traffic that’s going to be going around that area. And it’s hard for people to understand what a Metaverse feels like until you actually try augmented or virtual reality. I don’t know if you’ve tried it before, but it’s a very insane experience. And until you actually do it, and right now, we’re just in the beginning of it. But you can go on a small plot of land just like this size and feel like you’re traveling the world. So I think until people actually try it, it’s hard to envision the possibilities.
JAVIER: So you will have people living in the Meta verse where you can buy clothes, watches, and restaurants.
MEGAN: You’ll be able to order your McDonald’s or go to the pharmacy, the Matrix, you’ll be able to order your medicine from the pharmacy there. You’ll be able to do everything there. There’s been so many developments happening, and Bill Gates says within three years we’ll do all of our meetings in the Metaverse. I also believe that within three to five years, it’s going to be much more developed than now and much more mainstream. So those positions themselves now to be able to be at the forefront of this movement are the ones who are going to be established when it’s time. So I see that as an excellent opportunity for pure living and also me being involved in the crypto space.
The people who are interested in buying right now in crypto are mainly people who have been in crypto for a while, and they want to be able to spend their crypto somewhere. So those contacts are mainly gained through people in the crypto community, which is how real estate agencies like yourself can position yourself through contacts and people who are involved in this space. But within some years, it’s going to be much more mainstream. Like I said, NFCs are going to run our lives.
JAVIER: I guess that people have to be there.
MEGAN: You have to be there as one of the top real estate agencies here in Spain and Marbella, and it’s necessary to have a presence in the digital world.
JAVIER: We have to be there. We need, obviously, your help.
MEGAN: Absolutely. Yes.
JAVIER: We’re very happy to enter in a new area that we’re all learning especially myself. I have a lot of conversations with my son about the cryptocurrency and an NFT. I’m starting to understand it a little bit more, and we’re very happy to have you too. I would like to carry on with other interviews so you can explain our clients and anyone who has really any doubts about crypto with you.
MEGAN: Absolutely. As I mentioned before, it’s what I do for a living. I am a crypto consultant and NFT consultant, so I have private clients in a platinum group. Which actually brings me to another point. You’re in a wonderful position because actually, here in Marbella just a couple of years ago, several years back, I had a friend involved with a real estate agency here for which they offered Bitcoin to pay for a $4 million apartment just like this one in Bitcoin when it was around $10,000. And I told her, accept it, just say yes and don’t look back and you will never regret it. And of course, it was earlier then, and they were a little bit nervous about it and they didn’t do it. But that $4 million would have been worth $26 million today. What I do is I help people consult for them to be able to allocate their investments partially to real estate as well. So I think there’s some excellent collaboration that you and I can do
JAVIER: For sure.
MEGAN: I would love to help out with that and do further interviews where we go more into detail on topics like tax and government authorities and more how the transactions themselves will take place.
JAVIER: At the moment, we do not have any owners or buyers who wanted to offer or sell their property directly in cryptocurrency, However I believe that maybe after this interview, people will start to be a little bit more interested.
MEGAN: Yes, it’s my hope.
JAVIER: Maybe we will see on the webpage more interest for Cryptocurrencies
MEGAN: Absolutely. Yes. And, you know, setting up a wallet to receive cryptocurrency for Pure Living would be an excellent next step as well. Actually, they have a thing called ENS domain, which is you can choose domain . ETH. So actually, people can search for Pure Living Properties. ETH and send you directly just through your name. They don’t have to know all of your long letters and numbers wallet. They can just search for you for your name. And just to touch on how the actual property is appreciating in the digital world. When I bought my plot of land near Bored Ape Yacht Club, I bought it for around 1.7 Ethereum, and that was back in October. And I thought, you know, I want to get a second plot that’s attached to it because I want to make a bigger plot and develop an office and a business there for the Bored Ape Yacht Club members. I remember it was like a month later to buy the plot next to me, and it was already announced for like 25 Ethereum. And that was a couple of weeks later. And then all of the plots, if you go into the sandbox near Bored Ape Yacht Club, they’re announced for 50 Ethereum, 100 Ethereum. I mean, people are really valuing this land. And so we’re still early, and there’s still opportunities. But just to give you an idea of how much this is going to be worth someday, so it’s an excellent investment now both in digital and physical real estate. And I think you’re in a great position.
JAVIER: Megan, thank you so much. It was so interesting. So many questions still in my mind. And obviously, I think all the people that will see this interview will have more questions. We will probably receive them. And I hope to see you very soon after your trip, and carry on can carry on with this conversation, which is very interesting.
MEGAN: Yeah. Like I said, we can get more into detail on the tax part of it and more into the details of the transactions themselves. But for now, I think it’s great that people just start to visualize and try to understand the meaning behind all of this before we go deeper into it, because there’s a lot to process, that’s for sure. But thank you for having me. It was amazing to talk about something I’m so passionate about out, and I look forward to the next one.
JAVIER: Thank you so much.