Roofstock is best known for enabling individuals to invest in real estate online. Roofstock is an online investment platform that has gotten really big very quickly, having enabled over $5 billion in transactions. It also provides services like property management as well as portfolios of investments.
Last year, a company offshoot, Roofstock onChain, a Web3 subsidiary – completed the first house sale via a Non-Fungible Token or NFT, thus entering a new business line.
Today, Roofstock onChain is announcing another sale for an Alabama rental property that was sold using Ethereum, built by Origin Protocol, and paid for with stablecoins.
According to Sanjay Raghavan, Head of web3 Initiatives at Roofstock onChain, the second sale proves the model is scalable, adding that “buyers and sellers can benefit from instantaneous sale and settlement of rental properties.”
Roofstock onChain binds home ownership to NFTs by holding each property in a limited liability company which is wrapped in an NFT on Ethereum, The company explains that from financing to title ownership, the entire transaction happened peer-to-peer on Ethereum.
An investor may seek a loan for up to 80% loan-to-value of the sale price of the NFT with USDC Homes. Once the loan is funded, the USDC Homes protocol permissionlessly uses funds to purchase the LLC NFT. The NFT is then transferred to a smart contract escrow vault until the borrower pays back the entire loan plus interest.