Latest / The Paul Barron Crypto Show / $100 Million Real Estate Power Play🔥Propy's Master Plan + $PRO Buybacks! CEO INTERVIEW

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$100 Million Real Estate Power Play🔥Propy's Master Plan + $PRO Buybacks! CEO INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Today we're going to be diving into crypto back loans.
• 0:02
  Speaker 1: When it comes to real estate and what you should
• 0:04
  Speaker 1: be looking out for, we'll get right into it. I
• 0:06
  Speaker 1: do want to thank our sponsor, and that is Coinbase.
• 0:08
  Speaker 1: Coinbase is where you guys can begin your crypto journey
• 0:11
  Speaker 1: and one of the ways you can do it is
• 0:13
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• 0:16
  Speaker 1: whether you're a business or an individual, check it out.
• 0:18
  Speaker 1: All you have to do is use our link. The
• 0:20
  Speaker 1: future of money is here. It does help us out,
• 0:22
  Speaker 1: so get to it all right. You guys have probably
• 0:23
  Speaker 1: seen us cover properly before and I want to introduce
• 0:27
  Speaker 1: and bring back.
• 0:27
  Speaker 2: To the show.
• 0:28
  Speaker 1: Natalia, who's the CEO over there?
• 0:30
  Speaker 3: How are you hi? Paul, Great to be back, Very
• 0:32
  Speaker 3: very very excited about our news.
• 0:35
  Speaker 1: Another one hundred million in terms of an expansion. This
• 0:38
  Speaker 1: is around an aiscro officer which is going to modernize
• 0:42
  Speaker 1: your home closings. Explain to me a little bit about
• 0:45
  Speaker 1: what you guys are doing here.
• 0:46
  Speaker 3: Absolutely So, we've just launched our news about one hundred
• 0:51
  Speaker 3: million dollar AI let roll up strategy, and I think
• 0:56
  Speaker 3: we have identified the biggest opportunity in real estate in
• 1:00
  Speaker 3: today's market, and it's where it matters the most, the
• 1:04
  Speaker 3: transfer of ownership the title and escrow. The US title
• 1:08
  Speaker 3: industry is a twenty five billion dollar industry and it's
• 1:11
  Speaker 3: very fragmented, yet it's a very profitable build business. So
• 1:17
  Speaker 3: I don't know, Paul, if we covered that before, but
• 1:21
  Speaker 3: probably many of you have heard that. Probably had been
• 1:23
  Speaker 3: building this AI and smart contract powered platform for eight years.
• 1:29
  Speaker 3: But the interesting fact is two years and a half
• 1:33
  Speaker 3: ago we bought the first title company license in Colorado
• 1:39
  Speaker 3: and Arizona. Back then, I just moved to Florida and
• 1:43
  Speaker 3: we expanded these title operations to Florida, got our license,
• 1:47
  Speaker 3: got our sales team. That's where our profitable journey started
• 1:53
  Speaker 3: because we were able to finally utilize our platform at
• 1:58
  Speaker 3: full and start generating revenue and growing very fast quarter
• 2:04
  Speaker 3: to quarter. So now with this AI led roll up strategy,
• 2:09
  Speaker 3: we're acquiring more title companies with only one multiple to
• 2:14
  Speaker 3: their annual revenue, increasing the margin, increasing the productivity of
• 2:20
  Speaker 3: the closing team, and expanding nationally.
• 2:23
  Speaker 1: Interesting and part of this is of course built around
• 2:26
  Speaker 1: your AI. We'll talk about that in a second, but
• 2:28
  Speaker 1: before we roll into that, So this could be a
• 2:31
  Speaker 1: big unlock for you guys in general.
• 2:34
  Speaker 2: Let's take a look at the crypto back.
• 2:36
  Speaker 1: Loan side of it, because this is something that is
• 2:39
  Speaker 1: somewhat new to you guys. So you've got one hundred
• 2:41
  Speaker 1: percent crypto back loan capability here some of the key benefits.
• 2:44
  Speaker 1: You guys have probably seen some of this out there,
• 2:46
  Speaker 1: and this seems to be an area that is growing.
• 2:49
  Speaker 1: How are people using this right now to be able
• 2:51
  Speaker 1: to kind of leverage into real estate with crypto.
• 2:54
  Speaker 3: Yeah, well, obviously, in the past years of crypto booms,
• 2:59
  Speaker 3: the majority of crypto investors wanted to exit some of
• 3:04
  Speaker 3: their profits in real estate, but at the same time
• 3:07
  Speaker 3: they don't want to exit their bitcoin or other crypto positions.
• 3:11
  Speaker 3: So there is an appetite, a huge demand for utilizing
• 3:15
  Speaker 3: crypto as a collateral and then entering the more predictable
• 3:19
  Speaker 3: risk averse investments like real estate, but there has been
• 3:24
  Speaker 3: nothing available on the market besides small players. We're at
• 3:29
  Speaker 3: this stage of the market where traditional mortgage companies are
• 3:32
  Speaker 3: warming up towards crypto utilizing it as a collateral, especially
• 3:37
  Speaker 3: with the summer FHA announcements, and then the crypto lenders
• 3:42
  Speaker 3: they're becoming more prone to accept real estate as a
• 3:46
  Speaker 3: collateral or provide loans backed by crypto for the real
• 3:52
  Speaker 3: estate purchase purpose. So it's yet to evolve, but we
• 3:57
  Speaker 3: are at the very early stage. So you can imagine
• 4:00
  Speaker 3: that a bitcoin holder could lock their bitcoin holdings and
• 4:05
  Speaker 3: get a used DC or stable coin loan and acquire
• 4:10
  Speaker 3: a property on the spot on chain automatically instantly.
• 4:14
  Speaker 1: Right now, it's bitcoin and ethereum as collateral.
• 4:17
  Speaker 2: Is that correct?
• 4:18
  Speaker 3: Bitcoin Ethereum XRP. But the majority of our deals, well,
• 4:24
  Speaker 3: the first deal we did was in bitcoin, that was
• 4:26
  Speaker 3: earlier this year, and now we're collaborating with other partners
• 4:30
  Speaker 3: like Morfo, like mile that is also they're accepting bit
• 4:36
  Speaker 3: premierly Bitcoin. We're open to different other types of assets
• 4:41
  Speaker 3: such as Solana XRP, but again it's yet to scale.
• 4:47
  Speaker 3: It was a very interesting breakthrough beginning, but at some point,
• 4:53
  Speaker 3: probably within the frame of five years, we'll see it
• 4:57
  Speaker 3: as a normal standard practice.
• 5:00
  Speaker 1: Well do you think banks offering these kinds of loans
• 5:02
  Speaker 1: will help the industry and help you guys overall or
• 5:06
  Speaker 1: is this something more of a competitive landscape now?
• 5:09
  Speaker 3: I think overall it uplifts the whole industry. So if
• 5:14
  Speaker 3: those banks, and they're one of the biggest lenders for
• 5:18
  Speaker 3: providing mortgages. If they embrace cryptocurrency and the cryptography that
• 5:26
  Speaker 3: we've built in the right way, then it could be
• 5:31
  Speaker 3: an add on partner. But we are hearing that currently
• 5:36
  Speaker 3: some of the regulations that have been introduced are being
• 5:39
  Speaker 3: altered or there is a willingness to alter it. So
• 5:43
  Speaker 3: bank has a better and stronger competitive advantage over the
• 5:49
  Speaker 3: crypto native companies. So I think we yet to see
• 5:52
  Speaker 3: and evolve how two worlds will overlap or the new
• 5:57
  Speaker 3: generation technology will disrupt again the status school.
• 6:02
  Speaker 1: The other area that I think obviously starts to separate
• 6:05
  Speaker 1: you guys, is what you're doing on the AI front.
• 6:08
  Speaker 1: I'm looking here at your agent Avery. I was listening
• 6:12
  Speaker 1: to the phone call that is a sample here and
• 6:15
  Speaker 1: I would recommend you guys going on looking at it's
• 6:17
  Speaker 1: over on propery dot com for slass Avery. But is
• 6:21
  Speaker 1: that the only use case that is kind of going
• 6:24
  Speaker 1: through minutia of the title company is being able to
• 6:27
  Speaker 1: pull off loan balances, et cetera. Or do you see
• 6:30
  Speaker 1: this becoming much more integrated into the entire real estate deal?
• 6:35
  Speaker 3: Oh? I think the agenic world is changing a number
• 6:39
  Speaker 3: of verticals, including real estate, and I feel that AI
• 6:44
  Speaker 3: agent Avery potentially will become this licensed as screen title
• 6:49
  Speaker 3: agent that will operate alongside humans licensed experts and potentially
• 6:55
  Speaker 3: will element all the human prone mistakes and human prone inefficiencies.
• 7:02
  Speaker 3: So she is currently executing on two roles. One of
• 7:07
  Speaker 3: them that you've heard on our website. It's properly the
• 7:12
  Speaker 3: slash Avery. You could actually talk to her. It's a
• 7:16
  Speaker 3: more kind of a sales role. She can explain everything
• 7:19
  Speaker 3: about propy, about real estate on blockchain, how to get
• 7:23
  Speaker 3: a loan against your bit, going to buy real estate,
• 7:26
  Speaker 3: what is a proper talk, and how smart contracts are
• 7:29
  Speaker 3: useful for crypto transactions in real estate crypto wallets, how
• 7:33
  Speaker 3: AI is useful for realisted. However, the main breakthrough is
• 7:38
  Speaker 3: through her second role and is the role of an
• 7:44
  Speaker 3: ESCRO officer. Our AI agent Avery is aware of every
• 7:49
  Speaker 3: single transaction. Our ESCRO officers work with her as a
• 7:53
  Speaker 3: co pilot in every single transaction. They ask, for example,
• 7:58
  Speaker 3: how many deals do you have today, how many escredcosits
• 8:01
  Speaker 3: have live today, and then she can also act as
• 8:06
  Speaker 3: for their requests. She calls our lenders to get mortgage payouts.
• 8:11
  Speaker 3: She calls hoas to get informations for closings.
• 8:15
  Speaker 2: I like it.
• 8:16
  Speaker 1: I wish she could call my HOA because I'm always
• 8:18
  Speaker 1: having to deal with them. Maybe this will become a
• 8:21
  Speaker 1: retail product soon. Let's talk about the growth of crypto
• 8:26
  Speaker 1: closings for real estate. It has been slow moving, obviously
• 8:29
  Speaker 1: for regulatory reasons, but that is of course over the
• 8:32
  Speaker 1: past year has really opened up. Now we're seeing collateral
• 8:36
  Speaker 1: being utilized. Crypto kind of earmarked as a collateral now
• 8:40
  Speaker 1: for almost any bank loan out there. Do you think
• 8:42
  Speaker 1: this is going to accelerate into the real estate market?
• 8:46
  Speaker 1: Where would you put this market in a year from now?
• 8:50
  Speaker 3: And I like to make a comparison to the spike
• 8:54
  Speaker 3: huge instance Spike and the fate of the NFT hype
• 9:00
  Speaker 3: as a remember when we had this interest towards ours
• 9:05
  Speaker 3: and buy artists work for NFT and all the celebrities
• 9:08
  Speaker 3: we're getting on board, and it was suddenly billions of
• 9:12
  Speaker 3: dollars support into the industry real estate on chain. I
• 9:16
  Speaker 3: feel like even though it took years to get to
• 9:21
  Speaker 3: those early adoption signals that were experiencing today, it will
• 9:27
  Speaker 3: further accelerate and grow. So it did not experience any
• 9:31
  Speaker 3: huge spike in the past years, but gradually it built
• 9:35
  Speaker 3: on the momentum in a very healthy way, which is
• 9:39
  Speaker 3: signaling to us that it's here to stay. And so
• 9:43
  Speaker 3: within one year we would see stable coins bitcoin to
• 9:48
  Speaker 3: be accepted as a norm in a real estate transaction process.
• 9:53
  Speaker 3: During the last bull run, eleven point eight percent of
• 9:57
  Speaker 3: first home buyers use cryptocurrency to fund their down payment.
• 10:02
  Speaker 3: So obviously the new generation making money in crypto, they
• 10:06
  Speaker 3: want to reinvest in them into their biggest dream, which
• 10:10
  Speaker 3: is ownership American dream to own a home in America.
• 10:14
  Speaker 3: So within one year I see even bigger adoption. After
• 10:21
  Speaker 3: the Clarity Act was introduced this summer. The next month,
• 10:26
  Speaker 3: our developer clients, real estate developers, suddenly saw a huge
• 10:32
  Speaker 3: spike of transactions in stable coin, which was surprising to
• 10:36
  Speaker 3: us because we never marketed it. I needed developers, but
• 10:40
  Speaker 3: as soon as it was introduced as an option, they
• 10:44
  Speaker 3: had doubled their number of sales in high quality luxury
• 10:50
  Speaker 3: buildings here in Florida, where numerous buyers would use their
• 10:54
  Speaker 3: stable coins to buy real estate.
• 10:57
  Speaker 1: Interesting, well, I showed a tweet here This was in
• 11:00
  Speaker 1: reference to one of your reports here the leads jump
• 11:03
  Speaker 1: twenty five percent. Yet ninety four percent of buyers now
• 11:06
  Speaker 1: US base led by Florida obviously California, Texas, but there
• 11:10
  Speaker 1: are some of the closings right there with stable coin, Bitcoin,
• 11:14
  Speaker 1: Ether and even XRP. So interesting times ahead. Now, I
• 11:18
  Speaker 1: know you're looking to increase the pro token utility.
• 11:22
  Speaker 2: What will that utility look.
• 11:24
  Speaker 1: Like in the future for the Propery token.
• 11:26
  Speaker 3: Yeah, propit token is the major utility talken that is
• 11:31
  Speaker 3: fueling bringing real estate on chain. It brings a lot
• 11:36
  Speaker 3: of attention to propy by the global property market participants.
• 11:43
  Speaker 3: So as you know, it acts as a gas fee
• 11:46
  Speaker 3: for every single transaction and Propy then we also utilize
• 11:50
  Speaker 3: it with our partner coinbase that you have just mentioned,
• 11:54
  Speaker 3: where last year a lot of coin based users were
• 11:57
  Speaker 3: able to learn about proper Title and earn properit talkens.
• 12:02
  Speaker 3: So it has been a tremendous value for proper Bread
• 12:07
  Speaker 3: brand recognition for bringing real estate participants to the market.
• 12:11
  Speaker 3: And now this week actually we are launching our next
• 12:16
  Speaker 3: white paper on upgraded talking economics for pro pr which
• 12:22
  Speaker 3: is again listed on pinbase. Recently also on cracking, as
• 12:26
  Speaker 3: I mentioned, we have launched the news about one hundred
• 12:30
  Speaker 3: million dollars all up. So the fascinating part of it
• 12:34
  Speaker 3: is that we're using the funds from private credit funds
• 12:39
  Speaker 3: as well as on chain lending. And what I refer
• 12:45
  Speaker 3: to is our partner morpho where we're able to get
• 12:51
  Speaker 3: a loan against our crypto holdings, and when we utilize
• 12:57
  Speaker 3: our funds that are bagged by crypto holdings, and when
• 13:03
  Speaker 3: we're acquiring our next title company, part of the profits
• 13:07
  Speaker 3: from these operations will be utilized to buy back proper tokens,
• 13:13
  Speaker 3: so that will further build our treasury towards going public.
• 13:18
  Speaker 1: All right, So that's that's interesting and interesting flywheels. So
• 13:21
  Speaker 1: taking loans out on crypto holdings leverages that in to
• 13:25
  Speaker 1: purchase businesses and then of course that gives you the
• 13:29
  Speaker 1: capacity on cash flow to go out and buy rebuy
• 13:33
  Speaker 1: property tokens and then get ready for an IPO. Wow, nice,
• 13:37
  Speaker 1: nice moves. I like that process. How long before we
• 13:41
  Speaker 1: would see an IPO for you guys.
• 13:44
  Speaker 3: Well, it all depends how quickly we will execute on
• 13:47
  Speaker 3: our one hundred million dollar roll up strategy, and I
• 13:49
  Speaker 3: will share why it matters. So it could be from
• 13:53
  Speaker 3: twelve months to forty eight months and then six months
• 13:57
  Speaker 3: for preparation for the IPO itself. So let me explain
• 14:02
  Speaker 3: how it works. When we acquire one hundred million dollars
• 14:06
  Speaker 3: worth of businesses. These are about ten tile companies nationally
• 14:11
  Speaker 3: in different markets with ten million dollar revenue each. So
• 14:16
  Speaker 3: you could imagine that there are two benefits to acquire
• 14:21
  Speaker 3: those title companies. First, they're profitable, they have great teams,
• 14:26
  Speaker 3: and second, it allows us to grow to one hundred
• 14:29
  Speaker 3: million dollar revenue faster than we do organically. And in
• 14:34
  Speaker 3: the tech world, with one hundred million dollar revenue, the
• 14:39
  Speaker 3: evaluation multiple is normally between seven to twenty x. That's
• 14:45
  Speaker 3: where a company reaches the unicorn status and is ready
• 14:48
  Speaker 3: to go public.
• 14:50
  Speaker 2: Well, I think this is a strategy.
• 14:51
  Speaker 1: It's been used, you know in Silicon Valley for a
• 14:54
  Speaker 1: long time in terms of buying up you know, doing
• 14:56
  Speaker 1: acqui hires as they call them in the valley. But
• 14:59
  Speaker 1: to your point, you're getting into revenue generating businesses which
• 15:02
  Speaker 1: only build the balance sheet for you guys, and then
• 15:06
  Speaker 1: you have the integration tools that obviously from the crypto
• 15:09
  Speaker 1: side of things that could really change on the backside
• 15:12
  Speaker 1: in terms of opportunities. So kudos to you guys in
• 15:16
  Speaker 1: terms of stable coins, you look at the expansion that
• 15:20
  Speaker 1: we've seen with just USDC, most likely we're going to
• 15:24
  Speaker 1: see other stable coins make their way in, maybe even
• 15:27
  Speaker 1: some bank stable coins. How do you think that is
• 15:30
  Speaker 1: going to play out? In use case for everyday real
• 15:34
  Speaker 1: estate agents, etc. To start utilizing stable coins more efficiently.
• 15:39
  Speaker 3: The stable coin is the new rails for the new
• 15:44
  Speaker 3: generation banking system, for the new financial world. You could
• 15:50
  Speaker 3: imagine that instead of sending wires, we would transfer stable
• 15:55
  Speaker 3: coins when we're closing transactions for earnest money deposit for
• 16:00
  Speaker 3: the final payment. It allows us our smart contract enabled
• 16:04
  Speaker 3: platform to fully execute the whole transaction on chain. And
• 16:09
  Speaker 3: there are a number of emerging banks that are utilizing
• 16:15
  Speaker 3: stable coins. Some of them are partnering with coinbase. The
• 16:19
  Speaker 3: recent one that made a lot of noise in the
• 16:23
  Speaker 3: tech world is airbor So they want to use the
• 16:27
  Speaker 3: stable coin rails to rebuild the banks the way we
• 16:31
  Speaker 3: know it. For real estate, this is important because we
• 16:36
  Speaker 3: will avoid wirefraud, which is a huge risk in the industry.
• 16:40
  Speaker 3: But also it allows us to fully settle a transaction
• 16:45
  Speaker 3: on chain. What is a real estate transaction everywhere in
• 16:49
  Speaker 3: the world. It has the same pillars. There is a
• 16:52
  Speaker 3: purchase agreement or there are terms that will feature small contracts.
• 16:56
  Speaker 3: There is a payment, whether it's stable coin or bank,
• 17:00
  Speaker 3: it's better to be on the new cryptoil stable point.
• 17:03
  Speaker 3: And then finally, when conditions are met from this purchase agreement,
• 17:07
  Speaker 3: we have the settlement, and the settlement is dispersing the
• 17:11
  Speaker 3: funds in the end, So you could imagine stable coin
• 17:14
  Speaker 3: disperse to realtors, the seller and the lender and recuit
• 17:20
  Speaker 3: ownership simultaneously. Today. Ironically, some states first record the deed
• 17:28
  Speaker 3: and then they disperse the funds. Other states do it
• 17:30
  Speaker 3: in an opposite way. But in this tech world, it
• 17:35
  Speaker 3: should be instantaneously, it should be secure, immutable. That's what
• 17:42
  Speaker 3: we've built at prop and hopefully it will be the
• 17:44
  Speaker 3: new standard that is fraud prone industry to change forever.
• 17:51
  Speaker 3: So yeah, we're very satisfied with the current Genius Act
• 17:56
  Speaker 3: and Clarity Act about to be in acted to change
• 18:01
  Speaker 3: the way institutional players understand the blockchain innovation and then
• 18:07
  Speaker 3: be ready for this adoption, be ready where real estate
• 18:12
  Speaker 3: fully moves on chain. So stable coin also is being
• 18:18
  Speaker 3: used by our partners real estate developers because normally they
• 18:23
  Speaker 3: need to hold funds during the duration of their construction process,
• 18:31
  Speaker 3: and historically they've been holding those funds in their ESCRA
• 18:36
  Speaker 3: accounts that are in custody of banks and title companies
• 18:41
  Speaker 3: like ours, and they would yield anywhere between three point
• 18:46
  Speaker 3: five to four percent in the today's market. Stable coin
• 18:51
  Speaker 3: on Coinbase, who is our partner, so we act as
• 18:55
  Speaker 3: an ESCRO license company. Then Coinbase is our custodian, holding
• 18:59
  Speaker 3: the funds in our account instead of a bank, and
• 19:02
  Speaker 3: then it yields higher. So for a longer than one
• 19:06
  Speaker 3: here it's six point one percent, which is very appealing
• 19:09
  Speaker 3: to real estate developers that in the past month or
• 19:13
  Speaker 3: two I've received so many cold emails from real estate
• 19:17
  Speaker 3: developer owners to get on board with stable coins, to
• 19:21
  Speaker 3: accept bitcoin, even to do fractional ownership.
• 19:24
  Speaker 1: Yeah, which is that's where I see some of the
• 19:26
  Speaker 1: growth opportunity. As we start to really kind of see
• 19:30
  Speaker 1: this play out with stable coins, there's going to be
• 19:32
  Speaker 1: so many opportunities in terms of vaults and stable coin yields,
• 19:36
  Speaker 1: all that playing in provided that the DC guys don't
• 19:40
  Speaker 1: get in there and mess this up, which is what
• 19:42
  Speaker 1: they're kind of going against right now. In terms of
• 19:45
  Speaker 1: fighting against the banks wanting to retain those yields. We're
• 19:50
  Speaker 1: going to be watching what's happening with you guys very closely,
• 19:53
  Speaker 1: So thank you so much for coming in today.
• 19:55
  Speaker 2: We appreciate it.
• 19:55
  Speaker 3: Nazalia, thank you, Paul, Thank you always for featuring our
• 20:00
  Speaker 3: or major news.
• 20:01
  Speaker 2: You bet all right, you guys.
• 20:03
  Speaker 1: Of course can catch more of this out there on
• 20:06
  Speaker 1: our Diamond Circle. It's our own private group that we
• 20:08
  Speaker 1: send out updates, insights to stuff that even we don't
• 20:12
  Speaker 1: cover here on the show. We leave a link down below.
• 20:14
  Speaker 1: You can catch it there, and of course follow me
• 20:16
  Speaker 1: out there on X at Paul Baron. We'll catch you
• 20:18
  Speaker 1: next time right here on The Paul Baron Show