The most powerful and established form of digital currency, bitcoin is rapidly making its mark in the realms of finance, investing and online commerce. Now, the popular cryptocurrency is even exerting its considerable influence on the real estate industry.
As an example, one Florida homeowner is willing to accept nearly $6.5 million in bitcoin for his house in Coral Gables, which is just outside Miami. Industry analysts in real estate and digital currency believe home listings that are friendly to bitcoin payments are about to become much more popular.
As one of the most innovative real estate entrepreneurs in South Florida, Samuel Strauch, the principal at Metrik Real Estate, is keeping a close eye on the developing bitcoin trend.
Based in Miami Beach, Strauch is perfectly positioned to capitalize on the growing acceptance of bitcoin in the real estate world. The Miami area is home to a diverse community of investors and potential real estate buyers from Asia, South America, Central America, Canada, Eastern Europe and the Middle East. With its international flavor, the Miami market is highly likely to increasingly embrace bitcoin in its real estate transactions.
One of the greatest strengths of bitcoin is its ability to facilitate financial transactions in a manner that is quick, smooth and seamless. In contrast to traditional forms of payment, bitcoin can rapidly cut through multiple forms of red tape. There is essentially no need for notaries, conventional financial institutions or other intermediaries. The speed and ease of bitcoin transactions are particularly appealing to global real estate investors moving large sums of money internationally. Of course, Miami is a hot spot for international real estate commerce.
The advantages of using bitcoin in real estate deals are magnified in an extremely sophisticated market like the Miami area. Mike Komaransky was well aware of bitcoin’s tremendous appeal when he put his home in Coral Gables on the market for approximately $6.5 million. As one of the requisites for placing the listing, Komaransky insisted on stating that bitcoin was an acceptable form of payment for the home. In fact, Komaransky said he hopes the eventual buyer does choose to pay in bitcoin.
According to Komaransky, any issues involving legality and taxes with a bitcoin real estate deal are straightforward and easy to handle. As he sees it, a bitcoin transaction actually carries less risk than a traditional cash contract.
Komaransky should know. As an experienced bitcoin trader himself, he has a degree of expertise in the field. He made a name for himself in the business as the chief of the trading desk at Cumberland Mining, a major digital currency firm. He bought the Coral Gables house in 2014 for $4.6 million. Situated in an upscale community and featuring tropical landscaping, the home encompasses 9,500 square feet and includes seven bedrooms, a custom pool, a game room, an outdoor kitchen, a wraparound balcony and a saltwater aquarium.
Although he is still one of a small group of people selling property for bitcoin, Komaransky predicts the number will soon grow substantially. The list of advantages offered by bitcoin is impressive. For example, many banks require thousands of dollars in fees for a real estate transaction involving an upscale property. By relying on bitcoin, the parties in a real estate deal can pay just a tiny fraction of the typical fee structure. As the use of bitcoin becomes more widespread, real estate agents, investors, speculators, title firms, appraisers and brokerages are expected to come on board.
Cosmopolitan cities like Miami, with thriving global business interests driving a hot real estate market, will be at the forefront of the bitcoin movement. At Metrik Real Estate, Strauch and his team will be meticulously tracking bitcoin’s influence on real estate to ensure their clients stay ahead of the curve.
About Samuel Strauch
Samuel Strauch has used his creativity, management skills and strong business sense to forge a successful career in the highly competitive Florida real estate market. After earning a bachelor’s degree in business administration with a concentration in international business from Hofstra University in 1994, Strauch went on to study at Harvard University and Erasmus University. At Harvard, his focus was on executive education in real estate and capital markets. At Erasmus, he studied international finance and international marketing.
After completing his formal education, Strauch embarked on a career in banking before opting to join his family’s Florida-based real estate firm. In 2002, Strauch achieved a longtime dream by launching his own company. The company expanded consistently through the years, and Strauch now serves as the principal of Metrik Real Estate, a comprehensive real estate brokerage, management and development firm. With headquarters in Miami Beach, Metrik Real Estate serves the entire Miami area, Fort Lauderdale and a handful of Latin American countries. Metrik skillfully integrates real estate acquisitions, equity sourcing and traditional management.
From the inception of his career, Strauch has established an extraordinary reputation for his innovative thinking and his ability to visualize the future. In Miami, he was able to predict the city’s evolution from a mere vacation spot to a fully mature metropolis. Using his talent for building business relationships, Strauch launched his company by bringing together a formidable lineup of clients and investors from throughout the world.
For more information on the Miami real estate market, visit Samuel Strauch’s website.