Real estate is one of the largest asset classes in the world, yet technology adoption lags other major economic sectors
Consequently, it is ripe for technological advances that will deliver extreme value to all parties involved in the a transaction–buyers, sellers, their respective service providers, mortgage lenders and government registries.
Why is this necessary?
First of all, there is a huge need to improve workflows and reduce costs in the real estate industry.
This is because current practices are inefficient and costly; for example, documentations are not fully standardized while transactions are very slow as they often operate based on physical documents.
In addition, the many intermediaries and service providers involved in any given transaction, each doing their own thing, drives inefficiency when each party does not have good information on critical path items.
What happens, in the end, is that fees can make up 10% or more of the total transaction value while the time taken to complete the entire closing process can be extremely long which adds risk to the transaction.
These problems are amplified even further in long-distance and international transactions where distance, poor communication and differing language and culture can make things much, much worse.
The blockchain also enables data to be securely stored and verified which is what CPROP is using to address common and major challenges happening in real estate markets in the world with a focus on solving inefficiency and the lack of security.
CPROP’s blockchain-enabled transaction management platform has the advantage of being built by a highly experienced team which features Adam Koehler, who was a co-founder of Dotloop that sold to Zillow for over $100 million.
So, what’s the project all about?
CPROP aims to make the process of transacting with real estate more efficient, auditable and protectable from negative aspects such as contract tampering, fraud, corruption and human errors. CPROP’s platform will also allow all parties to a transaction to see where all the bits and pieces stand at any point in time, so critical path items can be readily flagged to avoid delays in closing.
The platform also allows property investors to research, make transactions with cryptocurrencies, and have a reliable record ownership of their domestic and international property investment, all in one app.
Instead of competing with more established businesses, CPROP aims to integrate with existing real estate portals around the world that already have rich databases of listings and are well-known to the public. CPROP’s integration with these platforms will make the process of buying and selling real estate, especially over long distances, easier and faster.
The CPROP platform will offer the service of tokenizing deeds and mortgages. One might argue that there are other blockchain companies already in the process of developing a tokenization solution when it comes to deeds. CPROP will offer this service too but will seek to include other blockchain companies on its platform, including companies offering deed tokenization.
CPROP introduces several benefits to users:
Make transactions in Bitcoin and other cryptocurrencies
CPROP aims to partner with various payment providers to facilitate the conversion of cryptocurrency into fiat (cash) currency.
If transactions are priced in the seller’s fiat currency, the payments provider can facilitate the conversion of cryptocurrency into fiat currency on the date of closing at the exchange rate prevailing on that day.
This feature should be helpful to real estate investors located in countries with capital flow restrictions.
Using cryptocurrencies also allow users to remain anonymous which maintains a high level of privacy for everyone involved.
Trade real estate securely and remotely
CPROP plans to partner with e-signature firms to allow documents to be confirmed and executed digitally without the need for buyers to be physically present for a contract to become effective.
This saves time, money, and makes transactions all the more efficient, especially for international trades.
Expand market reach for existing listings
By integrating and partnering with existing real estate portals (like Zillow, for example) which are usually only aimed at local or regional markets, CPROP allows these portals to extend their reach globally.
By supporting portals connected on the platform, CPROP hopes to help to increase the traffic and revenue of these portals, hence creating a mutually beneficial relationship.
Automate the closing and documentation process
By automating the generation and execution of transaction documentation, CPROP is able to create a standardized documentation package based on the requirements of each legal jurisdiction which substantially reduces errors resulting in more reliable closing documents.
The process is also 100% transparent as all involved parties are informed of the status of the transaction constantly.
In the future, CPROP plans to add more features to the platform including multi-language translations of the above mentioned standardized documents as well as enable crypto-based mortgages in partnership with cryptocurrency lenders like Lendoit and SALT Lending.
CPROP’s utility (ERC-20) token will be the backbone of the platform. Real estate agents and other service providers can purchase CPROP tokens to pay for annual memberships giving them access to the CPROP platform and increasing their market visibility with a profile listing in CPROP’s searchable database. Tokens used to pay for memberships will be placed in a Locked Wallet removing them from circulation until tokens in circulation drop to approximately 21 million.
Token name: CPROP
Token base: Ethereum (ERC-20 compliant)
Token supply: 100,000,000
Token sale duration: TBA
Token sale target: $35,000,000 (hard cap)
Token exchange rate: TBA