INEL: solving real estate market problems - INEL company
INEL solving real estate market problems INEL company


One of the technologies that have the greatest impact on real estate is blockchain. The decentralized and unchanging properties of the blockchain allow for more efficient investments and structured work processes, and the number of companies and governments creating blockchain-based real estate platforms is currently growing.

What kind of problems does real estate market have?

Land conflicts are a critical issue in many developing countries. Faulty documents, damaged documents, and corruption cause complex disputes about property and do not allow the use of land. For example, in Haiti, the 2016 hurricane destroyed so many records that land is still unallocated and unused.

Blockchain-based smart contracts offer a new alternative for recording land rights. Moving all documentation to a decentralized and secure registry can be the most effective way to manage and own land, help avoid disputes, and ensure that records are not changed or lost.

It is well known that real estate companies find it difficult and expensive to check all the important details of real estate before renting or acquiring. By providing the ability to store all building data, such as repair records or floor plans, in a digital and safe place, blockchain can greatly facilitate investors to check all details of real estate thoroughly. This technology can even be used to track the movement of building materials throughout the life cycle of a building, from the factory to the demolition and disposal of parts, making it easier to track the origin, quality, and age of each part.

One of the main disadvantages of real estate as an asset is its low liquidity. Transferring ownership of the blockchain book, dividing it into small fractions, and ensuring the availability of digital fractions in the form of tokens (i.e. tokenization) creates a new path to investing in property. It allows owners to sell their shares on the open market without the need to sell the property. Thus, tokenization also helps with another shortcoming of real estate: a high threshold for entering investment for small market participants.

When we think about moving the real estate investment market into the digital realm and about codifying agreements in smart contracts, the first question we ask is land ownership and transfer agreements. However, even complex issues such as project management can be managed through the blockchain.

Think of the project as a long list of transactions between different parties. These transactions may constitute an agreement of any type regarding the stages, payments, or goals achieved. All transactions can be encoded into a series of smart contracts that can be automatically executed after each specific step.

If you have taken a mortgage at least once in your life, you probably know that this is a complicated process. The average mortgage application is 500 pages and takes from 30 to 60 days. Blockchain technology reduces the need to rely on paper and individual lines of communication, saving not only money but also time. Such elimination of intermediation will benefit not only borrowers but also those financial institutions that can offer more competitive conditions for a more economical lending process.

Blockchain technology offers management and service companies with new ways to track user information and improve customer service. Smart contracts are structured for automatic rental payments, and you can even foresee that property management fees can be automatically calculated and charged using data from IoT devices and utility bills.

In recent years, real estate investment has grown by several hundred billion dollars. With the growth of investment, it has become necessary for international buyers to avoid deceitful transactions and operate in a transparent environment. According to the FBI, some Americans lost $ 150 million in real estate fraud in 2018.

How does the INEL Company solve these problems?



Source link