RLTY Capital CEO Briggs Elwell and SERHANT CEO Ryan Serhant join Yahoo Finance Live to discuss crypto’s role in real estate as RLTY says it will pay crypto brokerage commissions. cash.
JARED BLIKRE: Leading athletes, musicians and now real estate agents are now paid in crypto, highlighting how crypto is increasingly becoming a part of the payment system. Here with more is Jennifer Schonberger from Yahoo Finance. And Jen, I know you watched this with some interesting personalities here.
JENNIFER SCHONBERGER: Hi, Jared. It’s true. A company called Realty Capital is the first to offer real estate agents the option of getting their commissions paid up front in crypto. And a first and exclusive to Yahoo Finance, I spoke with CEO and Founder of Realty, Briggs Elwell, as well as his biggest investor in the business, Ryan Serhant, CEO and Founder of Serhant Real Estate Brokerage. , on why they offer real estate agents the option of getting paid in crypto. Listen.
BRIGGS ELWELL: We are a specialist finance company, and our goal or principle is to be able to provide compensation to a variety of different people in the real estate world. And for us, it’s just about giving customers another option. Frankly, if a client told us that he wants stability and that he wants to be compensated in gold, we would find out how do we get him gold? And so for us, that just provides them with another layer of access.
JENNIFER SCHONBERGER: Ryan, you have invested in this business. Why support this? And do you see the demand for realtors to get paid in crypto now?
RYAN SERHANT: Yes a lot. Most realtors now, if they’re in luxury markets like the two Realty Capital finances in, like New York and South Florida, deal with buyers who buy or through cryptocurrency. And so it’s just kind of a natural progression. Just as real estate agents deal with people who buy in US dollars, they receive commissions in US dollars.
If someone is buying cryptocurrency, it’s almost a natural thought process to say, oh, well, if this very successful person has figured that out, then maybe I should too. And I’m going to reinvest in myself, that’s what attracted me so much to Realty Capital when we first started the conversations. Most Loan Companies – Most commission buying companies are real loan companies. They are like loan sharks.
They give loans to agents. Realty Capital is the opposite of this. Realty Capital buys commissions directly from agents. It does not go through brokerage. This makes it incredibly transparent, very straightforward, and allows agents to reinvest in their business when most 1099 entrepreneurs really struggle to do so. And so it all makes a lot of sense. And I think it’s going to be huge for us and the agents we work with.
JENNIFER SCHONBERGER: Briggs, tell us how it works and what the result is. I mean, Ryan kind of described investing in yourself. But why not just go into a cryptocurrency exchange and trade that commission for Bitcoin or whatever?
BRIGGS ELWELL: I think the answer to that is that, A, a lot of our clients may not necessarily have direct access. I think we all know in this conversation that it’s easy to potentially open an account and start investing in it. But from Ryan’s perspective on whether to consider how much capital you take out of your commission, it’s just a more seamless transition for that. We could potentially just hand over the cryptocurrency equivalent to them at their request.
JENNIFER SCHONBERGER: Ryan, the last time you and I spoke a few weeks ago you made a bold statement. You told me that you believe that 50% of real estate transactions could be done in crypto in some form or another over the next five years. And it certainly seems to relate to that narrative – crypto is starting to infiltrate not only the real estate industry, but it seems to be iconic to simply infiltrate our payments system. Your thoughts?
RYAN SERHANT: Cryptocurrency is no longer just an alternative asset class. It is now just another asset class. And as more and more institutions get into crypto, whether it’s big banks taking Bitcoin off the books or whatever, retail investors, retail buyers. and everyone is going to be more and more inundated with crypto in front of them, whether it’s using it for shopping at the grocery store or deli or through Amazon or upgrading their Netflix subscription through it. this. It’s just a natural progression. And any fear that exists will eventually go away once things are more commonly adopted.
And that’s important to us, with a company like Realty Capital dealing money directly because we buy commissions from agents and give them access to capital in minutes, hours, or days at most, whereas those agents otherwise would have to wait months sometimes. to get paid for their work – they don’t have a salary – they don’t have benefits – that we give them as many choices as possible.
JENNIFER SCHONBERGER: And real estate services are available in New York and South Florida with plans to expand nationwide over the next six to eight months. Watch the full interview online at finance.yahoo.com. Back to you.