An agent’s crash course in crypto transactions

“Can you accept crypto?,” asked a client Denis Smykalov, broker/owner of Wolsen Property in Miami. Smykalov had two options. He could say no and lose business. Or he could say yes – even if he didn’t fully understand the process – and find out.

“I heard about crypto in 2018. Back then I tried to do a crypto transaction, but when I approached the seller and asked if they would accept crypto, they said ‘No’. But after a few years, when crypto was on the rise, I did my first transaction with a client who bought an apartment, and he paid with crypto.”

Denis Smykalov became an agent in Miami in 2012. Since then, he has gained a reputation across the industry for his cryptocurrency transactions.

Smykalov is a self-described early adopter of technology. He used DocuSign while colleagues still asked to fax documents. Now he completes sales in cryptocurrency, while some question the currency’s legitimacy and legality, about 15-20% of his business, he says.

Despite the drop in value, cryptocurrency such as Bitcoin is still being used for real estate, especially with buyers from Europe, Latin America, Russia and Ukraine, all countries with buyers and investors Smykalov has worked with.

If your buyer or seller wants to use cryptocurrency in a transaction and you don’t have the experience, Smykalov has two pieces of advice.

Don’t panic, it’s not that hard

“Even if you don’t know anything about cryptocurrency, you can still make a sale. You don’t have to be a professional,” said Smykalov.

According to Smykalov, there is no difference between a crypto transaction and a regular transaction. It simply changes one step, out of the ten steps a normal transaction takes. And there are professionals out there who can guide you through the process.

Find a lawyer

A lawyer who specializes in cryptocurrency transactions is ideal for buyers and sellers working with cryptocurrency. Not only will Smykalov say that a lawyer will walk the walk through the process, but they will be crucial every time an agent makes a sale in cryptocurrency.

“Don’t be afraid to learn about cryptocurrency, it’s not rocket science,” Smykalov said.

By following these two steps, staying clam, and working with the right attorneys, Smykalov has been able to close several cryptocurrency-based sales, including a resale at Marina Blue for $465,000, pre-construction at the Waldorf Astoria for over $2.5 million, and a villa sale on Hibiscus Island for $19 million.

Two types of transactions

“There are two different types of transactions. You can buy with crypto if the seller accepts it and simply transfer the crypto to a lawyer’s escrow wallet, he says. In many cases, buyers will exchange Bitcoin, for example, for Stablecoin, which is 1:1 with the US dollar.

“Or, the crypto can be converted into US dollars. For the sellers, there is no difference. It’s like a regular transaction,” Smykalov said.

From Smykalov’s perspective, cryptocurrency transactions are going to become more popular across the country. That means multiple agents could get the same call he got and they’ll have a decision to make. “It will always be in the big cities, because big cities attract people from all over the world. In my opinion, crypto will become more mainstream. Maybe it will take 20 years, but as long as the currency becomes more regulated, it will become more mainstream .”

While the cryptocurrency market fluctuates every few years, it can scare away those who are in the game for a quick payout. Meanwhile, investors who are knowledgeable about the industry will understand how to leverage their investments and may be interested in buying real estate using cryptocurrency. As an added bonus, mortgage rates do not affect cryptocurrency transactions. So, in a market like this – with rising interest rates – cash buyers can become crypto buyers.

As a veteran or up-and-coming agent, being confident enough to take on these clients can give you an edge in a competitive market.