Michael Flight is one of the few real estate investors that is actively using blockchain technology in his business.
As a blockchain technology enthusiast, Michael is helping educate the industry about the impact that blockchain has on how real estate is financed.
He has also taken steps to implement one of the most exciting features of blockchain – tokenization.
Watch as Michael talks about tokenization real estate and security token offerings.
Watch the full episode of How Will Blockchain Technology Impact the Future of Real Estate: https://youtu.be/srBWp3vyhK0
Transcript:
Chris Bounds 00:02
How soon do you think it’ll be when we have the platform and not just the platform. Because there are a few folks and we had some of them on to earlier that have a platform and have a well integrated platform or so they claim. How soon do you think it’ll be for the secondary market to mature enough to where we start seeing the theoretical liquidity that blockchain is going to provide real estate that we start seeing that in real time?
Michael Flight 00:33
Well, first, I don’t think that you’re going to have instantaneous liquidity for every asset, just like for publicly traded companies right now, you don’t have a bunch of liquidity in really small companies with pink sheets, they’re thinly traded. I believe that more than likely is going to be the same thing with any type of real estate investment unless it’s a really large fund, unless it’s a worldwide fund, or it’s something that you can-there’ll be liquidity makers, and there’ll be people that will participate in actively trading it.
Probably what you’ll probably see is that the liquidity that you’re going to get, is that you can take your share unlike in a current paper syndication, you could take your share, and potentially trade it to somebody else. If I had $50,000 of your deal, I could come in, go to somebody else, like Chris and say, Chris, are you interested in buying a share of this? And if he says, yes. We can trade directly, you could list that with a broker dealer, then you can list it with these things called automatic trading systems, which are ATS is.
They’re a step down from exchanges. Then I think if you get a large enough asset, those will be listed on security token exchanges. More than likely at some point, security tokens will also be traded on crypto exchanges, like Coinbase, and Kraken. You’re just going to have a lot more options for liquidity, it’s not necessarily going to be super huge, instantaneous liquidity.
The other thing that security tokens will allow you to do is you’ll have the ability to have liquidity because you’ll be able to borrow against your share. So at some point, if a lender gets comfortable with the net asset value of the fund or the net asset value of the property, you could potentially put your share up, and borrow against that which is insanely difficult right now to do in a normal syndication. Then There’s a lot of stuff that my imagination can’t come up with, but the guys in the defi world, the guys in the women in the defi world will come up with.
Chris Bounds 02:59
Yeah, they’ll figure it out.