May 8, 2023
Blockchain Coming To Your Block
Joseph Bizub, Justin Peralta and I wrote the lead story for latest issue of N.Y. Real Property Law Journal, Blockchain Coming to a Block Near You: How FinTech is Changing Real Estate Investing. You can find it on page 5: . It argues, bit.ly/BlockchainStory
Until recently, real estate with a small footprint – one-to-four-family homes as well as small retail, office, and industrial buildings – were generally within the purview of small investors who invested locally. Today, because of technological advances, these owner-occupants and investors face competition from an emerging class of decentralized finance (DeFi) investors. Fintech companies are presenting DeFi investors with new approaches to the challenges that real estate investing traditionally poses: illiquidity, high capital requirements, lack of diversification, and opaque markets. This article focuses on how fintech companies are meeting those challenges and suggests that while much of their vaunted innovation is simply old wine in new bottles, there is good reason to think that they will be driving a lot of investment in small real estate transactions in the future, in no small part because people like shiny new bottles.
You can also find the draft on SSRN and BePress.| Permalink