The ad promises NMT a share (50%) in this fully renovated home and mentions that the home was valued at $138,000 last year and currently generates a monthly rental income of $1200. The list is complete:
Let’s make history with the first ever NFT for REAL ESTATE!Half of this home at 5828 Wise Avenue in St. Louis, MO. Louis is for sale as an NFT.
Speaking to Cointelegraph, Malpika said that the use of NFT has enabled the purchase of crypto-currency assets, but this is legally supported by the establishment of a limited liability company between the buyer and him, showing 50/50 ownership.
NFT does not claim that you legally own the property, but that will happen after an operating agreement is drafted and registered, said Malpika, who works for Verizon as director of risk management at Enterprize Risk Management.
The sale of NMT and half will allow for an easy transaction with the LLC. Some banks/securities companies are unlikely to accept full payments in cryptocurrencies. Currently, you can’t just buy a rental property with 100% crypto. Selling half as a partnership makes this possible, he said.
The title work is already underway and the new buyer and I will set up a new LLC and enter into what is called an express claims act with an operating agreement.
Given that the legal rights and ownership offered by NFT are a grey area – not to mention that Malpica only came up with the idea yesterday – Cointelegraph strongly recommends that all interested parties do their due diligence and seek legal advice before investing in non-dilutive token ownership.
Malika described herself as a long-term real estate investor with a 50/50 partnership on 30 previous leases. He says he developed an interest in NMT after Gary Vaynerchuk, CEO of Vaynermedia, mentioned it.
The investor had to dive head first into me. I never want to be left behind.
At the time of writing, the auction has less than 100 views and no bids received. Malpika said he would expand the concept if sales were successful.
I think if the project is successful, I can create fractal shares or ETFs to allow multiple asset owners to own real income rents, he said.
MyEtherWallet founder Kosala Hemachandra recently told Cointelegraph that NFT will gradually evolve to include real estate properties.
I think this current version of unencrypted tokens will evolve into larger and more widespread cases. This includes real estate and ownership of tangible assets; anywhere NFT can assist in litigation. This is where it really starts to get interesting.
Commercial Apparel currently offers tokenized properties such as RealT.