Investor Ivan Malpica recorded a share in a property at 5828 Wise Avenue in St. Louis on NFT marketplace Mintable last night for approximately 42.43 ETH — worth almost $76,000 at the time of writing.
The listing promises”NFT fractional ownership (50 percent ) of the fully gutted rehabbed home,” imagining the home was appraised for $138,000 last year and now generates $1200 in monthly rental income. The list concludes:
Talking to Cointelegraph, Malpica said the use of an NFT enabled the property to be bought with cryptocurrency, but it would be legally backed up with the formation of a Limited Liability Company between the purchaser and him showing 50/50 ownership.
“The NFT does not actually state you own the property legally, but it will once we write up the operating agreement that’s listed,” said Malpica, who works as a Enterprize Risk Management Lead at Verizon,.
Some banks/title companies likely wouldn’t accept a complete cover out in cryptocurrencies. At this time you can not just buy a genuine rental properties with 100 percent crypto. This way, selling half as a venture, it helps for this,” he explained.
“Title work is already in place and the new buyer and myself will create a new LLC and finish what is called a’quick claim deed’ having an operating agreement.”
Given that the lawful rights and ownership conferred by NFTs are something of a grey area –not forgetting to reality Malpica only created the notion yesterday — Cointelegraph strongly urges anyone considering due diligence and consult a lawyer before investing in real estate via non-fungible tokens.
Malica described himself as a long-term home investor who has entered into 50/50 venture arrangements on 30 previous rentals.
“The investor had to dive head first. I never wish to be left behind”
Malpica said that if this sale has been a success he would expand the idea.
“I believe if this is really a success – I will do fractal shares/NFT to allow several owners of an asset to own REAL income generating leases,” he explained.
The founder of MyEtherWallet, Kosala Hemachandra, recently told Cointelegraph that NFTs will slowly evolve to cover ownership of real estate.
“I feel this present version of non-fungible tokens will continue to evolve to larger and broader use cases. Things like property and proof-of-ownership of tangible property; where NFTs can help perform legal activities. That’s when things will begin to get really interesting.”
Commercial outfits are offering tokenized property, like RealT.