Latest / The Paul Barron Crypto Show / Propy Real-Estate Tokenization & Transactions | CEO INTERVIEW

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Propy Real-Estate Tokenization & Transactions | CEO INTERVIEW · The Paul Barron Crypto Show

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One of the biggest categories in crypto has been tokenized assets, and today is
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going to be a show that breaks down what the real estate market might look
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like with tokenization. I think you guys are going to love it. Money
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with small bear will come back in the tech path. Let's just jump right
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into it. I want to go to a clip that's a little bit older,
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but it gives us an insight as to where the future is going.
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Take a look. A Panella's County realtor is selling a house as an NFT
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at auction. It's a first of its kind in the country. I think
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this could very well be where real estate transfers go in the future. But
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it's going to be fascinating to see if they actually sell it as an NFT,
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and I know we're going to be following it. Let everybody know,
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well, the golf cour house up for sale as an NFT or non fungible
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token is now off the market. It's a first real estate transaction as an
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NFT in the United States. Two anonymous bidder has made offers in the online
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auction, but one came out on top. The household for about two hundred
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and ten ethereum, a type of cryptocurrency. With one down, now it's
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on to the next. The next big thing for our industry will be automation
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of the transaction. So four years ago I moved here in Silicon Valley to
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make the change. Propy is a real estive marketplace that is utilizing blockchain to
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automate real estate purchases. How big a deal is cryptocurrency. So the cryptocurrency
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market today is three hundred sixty billion dollars. We believe it can get up
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to several trillion dollars market quite soon. All right, As you can see,
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that was the CEO of Propy, Natalie Kara Yaneva, and she pretty
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much kind of hit it on the head in terms of where the market was
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going. If you just look at the Propy website, Florida was the home
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of the first US real estate NFT. If you look at their website you
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can kind of see has a very similar feel to a Zillo. Today's going
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to be an interesting episode. I want to welcome in the CEO of Propy.
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Hey, Natalie, how are you, Hi, Paul, Hi everyone,
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thank you so much for having me. Yeah, I want to make
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sure I get your name right. It's Natalia Cara yah Neeva. So let's
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get into proppy a little bit. And first of all, I want to
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just talk about that experience because you kind of hit it on the head.
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We went back several years on that video clip that we just played and you
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were talking about the future of crypto. Clearly that's where we are now.
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A lot of insight to that when you look at the real estate market and
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the potential for it obvious, but the challenges that you're going to be facing
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in general, What do you think is the biggest issue we've got to deal
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with right now? I think the biggest issue in the real estate owned chain
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direction is really the adoption and the awareness of both the industry players as well
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as consumers. This way of transacting provides us the opportunity to safe and transfers.
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Right now, we lose about ten percent of home values and transferring this
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asset class twenty five billion dollar is the title insurance business itself. But not
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many people are aware of this way of transacting. Just like when bitcoined was
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too early or other blockchain projects. Now they are on the path to mass
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adoption. Coin Base has over one hundred million users, so it's just about
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the timing when we will get to that kind of scale. What's the transaction
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number right now today? It's a great question because we transact in two ways.
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One way is the closing through our license title and escrow company that are
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traditional dollar paid transfers, but we utilize our prietory technology or platform that is
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enabled by AI and smart contracts. There we did about four billion dollars in
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transacting recording DIDs on chain, recording transactions on chain, and then those NFTs
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have been only four so far. But we're about to scale it this year
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because we will be offering one innovative solution for loans for mortgages that would definitely
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enable this path. And I like to compare those two tracks of business to
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Netflix. When Netflix introduced their business, it was basically competing with offline blockbuster
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company that was focusing on penalizing the consumer, and Netflix introduced online CDs.
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Now we are introducing those title of chain, but it's still kind of this
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feel of the CDs or a little bit out the dated way of transacting.
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While the NFT is it's the streaming ownership or chain track for us. And
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even though we have invented only a couple of those This will absolutely transform the
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industry. You know, most people are kind of you know, they're customed
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to Zelo, redfin et cetera. What would be the key to draw them
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into a Propy experience. The way we're similar and different from Zelo is that
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eventually Propy will become a transactional marketplace, and a marketplace that business model is
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applicable to other countries, so it has the potential to become global. Zerlo
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cannot be global because the business model is very tuned to the US market and
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it's also transactional. They have the ambition to become but without this transformative technology
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is such a settlement vismart contracts. In my opinion, it's not possible to
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fully automated transaction. What aspects of property are decentralized? That's a great question,
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and centralization is key to what we do because real estate really behaves as
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a digital asset. What we move is not the wall, So we are
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moving the record of ownership because we're not relying on a government to keep the
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records. We should not be relying or when the settlement happens. Also,
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why are we relying on so many about twenty people in a transaction are involved
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in one closing, where instead we could rely in a secure settlement protocol and
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records on a decentralized blockchain. But as we have more projects integrated the Web
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three projects such as parcel and so on, we have more awareness and chain
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link as well. We have more awareness about the deals in real estate as
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well as the closing, and if the closing is cure with open data,
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then we would save to the consumers between five to ten percent of home values
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when they purchase those properties. And another very important point is that the new
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generation are afraid of bureaucracy. They would invest more in real estate if it's
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a simpler and more enjoyable process. They love buying NFTs, buying crypto because
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it's fun. Secure is the new generation. So if we provide this user
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experience to a new generation, which we've seen with some of our NFTs,
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then obviously consumers will definitely be more interested in this wealth creation and the liquidity
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of the real market would increase. Right now, we're seeing about five to
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seven million homes sold annually in the US. I would predict this number to
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double or triple as this new generation are moving from one city to another city.
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And if the housing transactions specifically is more affordable, then why not instead
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of renting those consumers to acquire homes as they move. The other part that
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I'd like to point out is that many states actually are describing in laws that
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the blockchain records could serve as an evidence in courts. So when consumers put
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their deeds on chain through propy and proper keys, they can get to the
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court and I prove the ownership if something happens with the county records, because
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unfortunately, every single year there are deed fraud cases county hacks over four hundred
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million dollars or lost last year in that kind of cases. Yeah, and
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I look at, you know, the ramp of first time home buyers.
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If you go back to twenty nineteen, it was a very small percentage,
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twenty twenty, growing a little bit, continue to grow in twenty one.
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That's coming from redfin of people who are using or increasingly scelling crypto to help
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with they're now payment. So I'm just kind of curious that transaction. Obviously,
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if properly comes in and opens up an opportunity there, they don't need
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to sell it, right then you're just using it in terms of the transaction.
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Do you have any numbers on where the market is today for say twenty
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two to twenty four in terms of those kinds of transactions. Last year probably
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it was a slide decrease in that and this year we'll see another spike.
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What about Okay, So I'm looking at the real road assets here and you
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obviously we see private credit there, use treasury, stable coins, commodities,
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and then real estate coming soon is probably going to maybe be added to this
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tracking mechanism. Yeah, we're talking to the steam. They're doing fantastic job.
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So currently we're working on adding the deed so that we have tokenized the
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rnfts. Overall, this real estate real world asset trend is growing. First
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of course the stable coins, private credit, bonds and bills to bit zed
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and the next big category is a real estate on chain, which it will
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be very quickly growing part of the RWA overall market size. What it would
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look like in the next three years? Where do you do you have any
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anticipation where the market's trending? Absolutely so. Currently real estate is the largest
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asset class in the world, with three hundred trillion dollars being locked in real
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estate obviously with some big players, not only Propy, but a couple of
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other great projects where we're working with institutions, and institutions are more than ever
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open to collaborate with Web three companies. I think this category will grow.
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Currently probably there are one to two billion dollars recorded on chain. Probably this
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would grow into twenty fifty billion dollar or market morein twelve months, and then
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hopefully to a trillion dollar very fast, giving into account of having those institutions
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that I know that are in conversations with companies like Proppy. I'm looking here
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at the proper Keys and walk us through this. You can go in and
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mint the address on chain, kind of walk me through this. Proper Keys
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is the new ecosystem project within Propy. It allows to mint a home address.
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You can see here Tier one, mint an address on base and just
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get your home address or your friend's address and your wallet, which is very
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fun layer to engage and own anything from PfP to domain and now to your
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address. You can mint your favorite coffee shop and event and so on.
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But the main utility really is coming on Tier two and Tier three. That's
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the most innovative part in my opinion, with jier one, you play,
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you do daily challenges, you can rent it out back to the protocol with
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the dt NFT, and we're having an increasing number of people that are willing
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to put their deed on chain in their crypto wallet. This allows another secure
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way to store your ownership. And the rw A n FT, that's the
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one that you show the videos about in the beginning, where you can actually
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sell your property within hours on chain or use your property as a collateral in
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a DeFi protocol that are still evolving. They're being built and that's what we're
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about to announce very soon. Are these the ones that have been minted so
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far? Absolutely, around one hundred and fifty thousand home addresses have been minted
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since March thirteenth, that was the official law lunch of this protocol. And
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you can see that Miami has probably about one thousand of NFTs, New York
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has a lot, Singapore, it's all over the world, all right.
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I want to get into the utility side of the property token. I'm looking
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here on propy for buyers and sellers. Then you've got the agent side,
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and then even all the way into crypto transactions. Talk to me a little
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bit about utility how this is going to work with the token. So whenever
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we close a transaction on chain, whether it's the NFT form or a longer
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thirty day closing where people are paying in dollars using a traditional mortgage, there
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is a settlement that is being done by smart contracts, and there is a
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settlement fee in profit tokens. With every single transaction, there is a fee
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in profit tokens that is adding to the security of the protocol. And then
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the second the utility is those meanting of a can happen only with pro token
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payment. And finally, the third utility is the loyalty program. Where agents
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are inviting consumers or other agents, they are receiving proper tokens as a reward
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as well as when they perform transactions the way we are seeing the industry with
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more transparency and providing more control to the consumer, then we also incentivize them
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with proper tokens, and most likely we'll launch other projects in our ecosystem that
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will use proper tokens for different activities. We had a partnership with the coin
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based wallet team and right now you can get the wallet app, not only
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the coin based app where you can earn one dollar in proper token. Yeah,
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that's the one. So you're learning what is proper, what is dton
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chain, what's the mission of propy and then you earn one dollar in propy
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talking. Then you get the coin based wallet, and the wallet guides you
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to meant a home address and then to put your deed on chain. And
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the deed on chain is automated, so you pay in proper talk and then
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within twenty four hours we get your deed from different databases that we are integrated
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with, we verify the data. You have to be the owner, thus
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you have to pass the a QYIC process. Yeah, that's exactly it.
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And then it's automatically storting your wallet with encryption, so this private and sensitive
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data is actually encrypted. It's visible for you, and you can unlock it
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for authorities or for whoever you need to prove your ownership to. So this
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could get a little bit viral here, I mean if you get enough people
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kind of coming into it, because there's really very low cost to be able
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to go through that process all the way up to minting the deed itself.
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Absolutely, that's the goal. We start with the top the funnel minta address,
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and eighty thousand home buyers already minted their homes and claimed that they are
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the owners. Now they're we're guiding them to put the deed where we verify
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the owners themselves, the deed themselves will know everything about this home, and
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then we guide them further to put it on chain and then sell it as
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an n F T as r W A NFT. And we actually are launching
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about ten properties soon as NFTs from this funnel that further, hopefully will will
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scale. This property that you showed in the beginning, it has Yeah,
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these are the numbers. This property that you showed allows for instant transfer of
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a property without a LIN with our mortgage on it. Now we're inventing the
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process for properties that have lins, and then we will also add a loan
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for prospective buyers. Well, I think that's going to be the key obviously,
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when you start to tie into the loan industry, that's going to really
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open up some minds, I think, and how this potentially could work.
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Let's talk about the agent side of it, the certified agents. I'm looking
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here at your website Crypto Feral State here now, so you've got the certified
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agent process how to sign up. We are recommending them if they want an
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agent, they should pick an agent from those that are certified because they understand
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the security of wallets and the whole process is the meta agent side of this,
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just the avatar or the NFT of the certified agents. Is that how
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that works. So these are the METAPFP avatars that have two utilities. One
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utility is access to a metaverse class, so it's the next level of education
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where we have more three D models education and how it ties to Web three
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And then the second utility was accessed two summits that we're having here in Miami,
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Web three AI and real Estate Summit. Are we going to need real
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estate agents in the future or would this be something that's just available on an
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Amazon or other marketplaces out there, even if you went down to where it
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was on propery itself. I like the fact that you mentioned Amazon because I
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potentially see the evolution of automated transactions not to be on zero but on Amazon
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or coin base or some bigger marketplaces that are selling other types of assets.
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Broader assets would have a proper enabled marketplace within it in terms of who will
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remain in terms of the middleman in the industry. There will be jobs for
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all because as the technology evolves, or are more opportunities and kind of more
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skills that we need, security, data collection and whatnot. With anyr Commission
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lawsuits that consumers are pushing against the size of the commission, we know that
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many low producing agents will be pushed out and the most professional will remain.
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And as I mentioned, if we have instead of five million home sold,
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will witness twenty million homes sold in the US. Agents will probably remain in
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the industry, especially the seller agents when they need to help the consumer to
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prepare a home for sale, such as inspection reports. So again, other
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things will yeah, a little bit different kind of services. Yeah, they
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may help with negotiations, staging, helping with the agregations, and if the
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consumer is moving to a different state, they may want somebody, a human
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to hold their hand. So again, it's not our job to really disrupt
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agents. We work with agents, but we hope that only professional ones will
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remain in the industry, not the part time agents that are serving their friends
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or family. Yeah, no, I understand. Let's get into the roadmap
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a little bit here, because this is important. I think I was looking
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at your roadmap. You've got a lot happening. Anything specific out of this
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that is really ramped up and on schedule or that you can share with us
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today. I think the most important innovations here our next version of propery AI.
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Last year we definitely were the first mover in the proper tech space with
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our AI too understanding and reviewing, that's the video reviewing purchase agreements and other
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transaction documents. It allowed the transaction to be a self driving for the consumer.
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So now we have buyers starting the process during the weekend on the holidays,
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the transaction starts on its own. The consumer gets online banking instructions,
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they can their account in the bank, and they transfer the deposit right away
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on the weekends in the evening, and then the seller knows okay, the
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deal is happening. So that was a big aha moment for our consumers and
21:11
agents. And then the next step would be reviewing all the reports, title
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reports, the history and closing documents. So we read slack in advance and
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help the closing team to be ahead of all the reviewing process. That's a
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big one that will help us to really streamline the settlement protocol because all our
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AI tools are feeding the accurate data to the settlement produocol. That is better
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than the human interaction with documents in your Q four the r Toba era through
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your red partnerships. That's kind of unique and new. Is that on track?
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Yes, this one is on track. We're currently talking to three reads,
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so hopefully one of them will close by Q four. That's our goal
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is so far, we're on track. Eventually the settlement protocol will be the
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Bloomberg like terminal the office for it. I want to run over to a
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clip real quick. This is a clip on ar VR around home buying in
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the near future. Take a look. We'll see how that's enter ther mode.
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One bedroom that's available right now. There are five hundred four three listings
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available in this area. Hello Olivia, welcome to the Hooper. Hello.
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This loft is just over a thousand square feet. It has two bathrooms.
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I love this kitchen. Hmmm, oh my art looks perfect there. So
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I wish I could do this right now, you know, being able to
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rather than going out have to look at all the properties and being able to
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kind of really get a full understanding you look at do you is this something
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that you see coming down the line for what you guys are going to try
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to do. Absolutely all those innovations are available today. They're like lego pieces
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that are already they have been invented. Now it's this inflection time in the
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history of real estate where somebody needs to connect those lego pieces. So,
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besides Metaport that has been doing a fantastic job in three D mapping and three
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D creation of this huge I think they have about five million homes already digitized
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in this form, there is another startup here in Miami also competing with Metaport.
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It's a matter of who will be the winner and who will do this
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settlement. On my opinion, who will execute the settlement because the transactional marketplace
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comes with its beauty that you can incentivize the community members, including agents that
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will have the incentive to put those three D models in the marketplace. Zilo
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does not do that. They kind of tried. You can find some tours,
24:22
but still not there. So imagine if we motivate agents and consumers to
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put those three D models in a marketplace with tokens, and then the quality
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in the user experience for the consumer will be much better, so they can
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do all those things in the video, and then the final step will be
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click, get the mortgage approved and transact by this whole now, So I
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don't think we're that far from that future. Well, I think anytime you
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add value to it, it's the whole map to earn concept. We talked
24:52
to the over Reality over the Reality project before they're kind of going in this
24:57
direction. I just want how many of other of these kinds of technologies are
25:03
going to continue to grow, so especially when you start to lay it into
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real estate, which is one of the biggest opportunities out there, just because
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look at just what matterport has been able to do so man a lot of
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it. And there is just one more point because even the regulation is on
25:18
our side in the real estate innovation because last year Freddie mac and other mortgage
25:26
corporation government corporations, they approved the waiver for appraisal. So if you use
25:34
one of eight apps that analyzes your home with AI similar to what you have
25:42
just shown in the Matterport video, then your appraisal could be waived. And
25:48
obviously it's another layer for the settlement. If the appraisal is there, you
25:53
even don't need the inspection reports. It's all built in and reviewed by AI.
25:59
Yeah, I could see this being a huge opportunity, especially being an
26:02
open concept around real estate, because it does, you know, for the
26:06
buyer and seller, you know, unless you're a nefarious seller, you know,
26:10
that's out there trying to get things over on people, which is good.
26:12
That's going to kind of clean out the bad guys in the industry,
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which will be a good that's a good thing. So, Natalia, it's
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been great having you on the show today. Thank you so much for coming
26:22
in. We appreciate it. Thank you, Paul, you bet all right.
26:26
So you guys are maybe tuned in on the podcast, make sure and
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jump over to the YouTube channel. It's a great place to get additional content.
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Paul Barron. We'll catch you next time, right, here on tech Path two,