Whether cryptocurrencies are the next big thing or another fad remains to be seen, but as agents and brokers, it is important to be able to provide the best information to clients considering selling or buying property using the currency.
Los Angeles real estate agent Tony Giordano specializes in high-end real estate and has become well-versed in cryptocurrencies because it is fast becoming his business.
Over the last year or two, the crypto craze has made new millionaires, many of whom are looking for ways to reinvest their gains. Real estate is a logical, more stable asset.
In a CNBC report, Giordano offers tips to agents about the best ways to deal in cryptocurrencies.
“What I’m trying to teach agents is, do your research if you want to invest in it, but regardless of the investment side, this is a real currency and you’d better learn it and understand it. They’re not realizing, it’s here now as a currency to be used in the purchase and sale of a property.”
In his business, Giordano has already closed several cryptocurrency home sales. As a matter of practice, he now asks every listing client of a high-end property if they are willing to accept any currency. This gives more options for the buyer and creates a larger pool of potential buyers. Because cryptocurrencies are mostly unregulated, Giordano buyers of high-end real estate still can fly under the radar and avoid tax issues.
“That’s our job in marketing property, especially luxury real estate. Never assume where the buyer is going to come from. Make sure we get this property out there and say we are open to all currencies and crypto being one of them.”
Among Giordano’s tips:
Sellers must research cryptocurrency and take the time to learn and understand it.
Second, in understanding it, they must stop thinking only about the investment side of it. It’s a real currency regardless of its value (bubble or no bubble) that people can buy or sell real estate with.
Third, Giordano also said it is imperative for sellers to have an agent who is very familiar and experienced with a crypto transaction. If you work in high-end real estate, it will become increasingly important for you to have a firm handle on this part of the transaction.
Next, the old axiom of practice, practice practice applies. You can download a cryptocurrency app (like Coinbase) and buy $20 of a bitcoin to start to understand how to buy it and then sell it back and exchange it to USD again.
Finally, keep up to date with all the main cryptocurrencies. Not just bitcoin. You want to watch bitcoin cash, ethereum, lite coin, ripple, etc.