Company to offer real estate brokers to pay in cryptocurrency as part of ‘natural progression’
Major athletes and musicians have been paid in cryptocurrency – and now real estate agents can too.
A specialized finance company called RLTY Capital is the first to offer brokers the option to charge their commissions upfront, in crypto, underscoring how digital coins are becoming a more common part of financial transactions.
“As crypto has become more widely used, we decided it would be a good option to offer agents and is most likely the way of the future,” said Briggs Elwell, CEO and co-founder of RLTY Capital, to Yahoo Finance in an interview.
“We’re expanding the ways our clients can get paid or invest, and we want to make the process as easy as possible,” Elwell added.
Crypto allows for a quick and easy checkout process, he said, and allows agents to cut out middlemen while avoiding the payment processing fees associated with banks and wire transfers.
Ryan Serhant, CEO and founder of the real estate brokerage firm bearing his name, has invested in RLTY. According to the entrepreneur, many real estate agents in luxury markets like New York and South Florida (which RLTY serves) want to be paid in crypto.
“[They] deal with buyers who buy either in cryptocurrency or through cryptocurrency; so it’s just a natural progression,” Serhant said.
“I think it’s going to be huge for us and the agents we work with,” he added.
As more and more institutions get into crypto…everyone is going to be more and more inundated with crypto in front of them, whether it’s using it to make purchases at the grocery store, on Amazon or switch to Netflix subscription.Ryan Serhant, real estate entrepreneur
Currently, RLTY’s services are available in New York and Florida, and are expected to go national within the next six to eight months.
RLTY, which works with industry professionals to acquire pending real estate commissions for residential and commercial properties, purchases commissions directly from agents and does not go through a brokerage. This makes it transparent and allows agents to reinvest in their business — something Serhant says most 1099 entrepreneurs struggle to do.
The company has handled traditional dollar transactions, but is just starting to offer crypto. Elwell says what sets RLTY Capital apart is that it has no cap on the commissions it will buy, whereas most of its competitors cap commissions at around $10,000 to $15,000.
Elwell estimates that 5% of repeat customers will try.
“RLTY Capital buys commissions from agents and gives them access to capital in minutes, hours or days at most, when these agents would otherwise sometimes have to wait months to get paid for their work,” Serhant told Yahoo Finance.
“They have no salary or benefits. We give them as many choices as possible to get their hard work into cash as quickly as possible – and if they want it and cryptocurrency, we’re here for them,” he added.
The ability for real estate agents to earn commissions in crypto comes as real estate purchases begin to be made in crypto on both the residential and commercial side.
Previously, Serhant predicted that over the next five years, 50% of real estate transactions in the United States would be done in some way with cryptocurrency.
“Cryptocurrency is no longer just an alternative asset class, it’s now just another asset class,” he explained.
“As more and more institutions get into crypto…everyone is going to be more and more inundated with crypto in front of them, whether it’s using it to make grocery purchases, on Amazon, or put their Netflix subscription there,” Serhant predicted.
For more information on cryptocurrency, see:
Dogecoin, what is it? How to buy it
Ethereum: What is it and how do you invest in it?
Top 21 Crypto Leaders to Watch in the Second Half of 2021