Crypto real estate has arrived in Florida as the industry prepares for a wave of cryptocurrency investments.
It is no surprise to many real estate agents who think the real estate industry needs a shake-up. However, potential buyers and sellers must be warned that using crypto in a real estate transaction comes with inherent liability risks.
Anyone looking to use crypto for real estate in Florida should do so with the help of a Florida real estate attorney.
Florida’s Crypto Wave
Leading the Way
Florida is quickly becoming a national hotbed for crypto, particularly in South Florida and West Florida. Across the state, there are stories of investors and real estate firms using the quick and potentially money-saving tactic.
The first real eye-catcher was America’s largest-known cryptocurrency real estate deal to date. A Miami Beach penthouse was sold for a crypto equivalent of $22.5 million. Located just one floor down from where Ivanka Trump and Jared Kushner had been staying, it was a headline grabber.
‘Poised to Upend’ the Industry
Over the following year, Florida has seen a crypto real estate boom. Described by Forbes as “poised to upend the essential financial foundations which the whole industry is transacted,” it has opened the door to more significant, more powerful buyers than ever before.
For example, in Sarasota, a $25 million waterfront estate developer stated they’ll “entertain offers in Bitcoin.”
Denis Smykalov’s real estate firm, located outside Miami, has already completed multiple real estate transactions with digital currencies. He told Businessobserverfl.com,
“Crypto transactions are not as complicated as they seem, especially if you are working with an experienced seller. As it becomes a more accepted form of payment, you will find more companies willing to share the steps to open a wallet.”
People Are Overcoming Crypto Fear
Naturally, when an industry has been working successfully for hundreds of years, new concepts are met with fear. That’s what happened with crypto and real estate.
But now, as crypto grows in popularity and basic understanding (nearly 1 in 4 Americans have owned cryptocurrency as of 2022) the fears are being overcome.
Forbes says that as this leads to new financial frameworks, the “implications for real estate writ large are huge.”
Camilo Miguel, Jr., Founder and CEO of the real estate firm Mast Capital said,
“It’s clear that cryptocurrency is the next generation of wealth and will become a significant factor in real estate transactions in the future. Next generation buyers are individuals who want the ability to diversify their investment portfolio into real estate quickly and easily, and the combination of blockchain and crypto allows them to do that.”
As an example of how much smoother things are becoming in the Florida crypto world, take a look at the crypto exchange FTX.
With connections to South Florida (think the FTX Crypto Miami F1 Grand Prix), their app makes real estate crypto exchanges a breeze.
You can convert digital currencies such as Bitcoin or Ethereum into U.S. dollars in a second. With one touch of a button, the fears of complicated transfers are eradicated.
Any buyer in the world can put a deposit down on a Florida property, in any cryptocurrency in seconds – all while meeting anti-money laundering and ‘Know Your Customer’ SEC regulations.
Pinellas County, The NFT Pioneer
In more local news, back in February 2022, Pinellas County became host to the first-ever NFT-based residential real estate sale in the U.S. It was a great success for the buyer, who paid 210 Ethereum (worth $632,000 at the time). But less so for the seller. Ultimately, the seller admitted she had higher cash offers but took the risk for a chance at potentially cashing in on a cryptocurrency rise.
To convey how volatile crypto can be, let’s compare that with another Ethereum sale:
In North Florida, a five-acre estate was recently bought for 74.6 Ethereum. That translates to $1 million. The listing of the six-bedroom residence in a gated community was headed by Premier Sotheby’s International Realty.
The sale was described as “a challenging feat as crypto real estate transactions are just beginning to gain momentum.”
Big Dogs Already Emerging
Those ahead of the game are already making a big splash. Property Markets Group (PMG), for example, may be a 30-year-old real estate development, but they’ve already taken crypto deposits for over 75 condos in South Florida.
PMG’s Managing Director, Ryan Shear, said,
“We saw an opportunity to allow people to diversify their cryptocurrency assets and easily transfer funds into stable, physical real estate.”
“Accepting crypto offers buyers a more accessible way to do that and purchase units. Blockchain and digital currencies expedite the purchasing process and reduce barriers international buyers face, which is a key tool for us when developing in a growing international city such as Miami.
International buyers in particular, can quickly purchase a condo while avoiding international fees and bank wires, and crypto allows for the opportunity to quickly move assets from international banks and exchanges to secure American investments.”
A Wider Market
Virtual currencies also help bring new, younger people to real estate.
A Naples-based real estate advisor, Jamie Chang, partnered with a local artist to create an NFT to promote a condo listing.
And it worked, big time! It caught the eye of a wider range of buyers, including one who eventually paid $3.1 million for the condo in May. The sale was paid entirely in crypto.
That sale was a big eye-opener for local real estate firms, but not for Chang ho says,
“Folks [in South-West Florida] are getting a little hipper, a little younger,”
What’s Next for Crypto Real Estate in Florida?
Much of this article has surrounded real estate development firms and the deals of the super-rich. But that’s mostly because they can take the risk to open the crypto door.
But what it shows is that blockchain technology in real estate works. And if it continues to work and provides alternative benefits that regular transactions can offer, it will spread into the life of the everyday Florida resident.
Within the next few years, homeowners could secure deals with crypto – gaining a bunch of benefits such as rapid ownership transfers, privacy, reduced costs, extra listing buzz and much more.
- How to Buy Real Estate With Cryptocurrency in Florida
- The Future of Cryptocurrency in Commercial Real Estate
Contact a Real Estate Lawyer in Florida for Cryptocurrency Commercial Real Estate
If you need legal assistance with cryptocurrency-related commercial real estate transactions in Florida or real estate ownership decisions, then our Florida real estate lawyers can help.
Whether you’ve received cryptocurrency offers or need support closing a sale, you can receive a free consultation.
Our St Petersburg and Riverview real estate attorneys at Battaglia, Ross, Dicus & McQuaid, P.A. will review your circumstances and ensure your transaction goes smoothly.
Contact us today to schedule a free consultation.