Episode 43: Shannon Conradi — How Crypto Is Transforming Real Estate Closings

00:00:00:00 - 00:00:13:08
Nate Carver
Hey, everybody. It's your favorite mortgage guy, Nate Carver. And today, if you've ever had a question about crypto, buying a home and using your crypto to do it, you're in the right

00:00:13:08 - 00:00:29:20
Nate Carver
spot. Realtors, you are going to love this. Everybody has cash buyers. And when they say cash buyers, we know they mean crypto. I would like to introduce you all to Shannon Karate and IL coo over at property.

00:00:29:22 - 00:00:31:05
Nate Carver
Property.com.

00:00:31:05 - 00:00:50:05
Nate Carver
And we're going to jump into this, this is fantastic. I'ma learn as y'all are learning because I've got a list of questions and I love crypto. And this is amazing what you're going to now be able to do with your crypto when it comes to homeownership and real estate agents, which you can leverage with this is going to be, amazing.

00:00:50:08 - 00:01:11:00
Nate Carver
Hey, I'm Nate Carver and welcome to Between Two Doors.

00:01:11:00 - 00:01:14:04
Nate Carver
All right. Hey, Shannon. Hey. How are y'all?

00:01:14:04 - 00:01:16:11
Shannon Conradi
Great. Happy it's Friday.

00:01:16:13 - 00:01:30:07
Nate Carver
I made Friday. I think it's over here. Hey. Tell me. Okay, so give me your your 30,000ft view of property and what y'all are doing. For realtors.

00:01:30:09 - 00:01:50:21
Shannon Conradi
Awesome. So I'm going to go ahead and start off with we've been in business for eight years. We do have digital earnest money on the weekend. So how that works is if you're a client wants to go under contract on a Saturday or Sunday, they're able to reset record from contract. EMD was four minutes. You guys work 24 hours, seven days a week.

00:01:50:21 - 00:01:53:20
Shannon Conradi
We transact that way.

00:01:53:22 - 00:02:35:20
Nate Carver
Nice. That that's awesome. Tell me, tell me when it comes to to bitcoin and crypto, when a homeowner or a buyer says that they're, you know, that they're a cash buyer, what would that mean to a realtor? Just that they can treat it just as a cash buyer, regardless whether you have somebody who wants to use U.S. dollar bank account, or maybe they have Canadian dollars or coming over from Euro, maybe that have some of, you know, stocks that they want to sell and invest in real estate.

00:02:35:22 - 00:03:16:02
Nate Carver
You we you can treat the same thing with crypto is just another form of, currency. Problem is that there is a lot of stigma around it. A lot of people are afraid talking about it. Not many know how to handle that. And we do. So yeah, it's don't turn your back on opportunities. So as a lender when I, I've had buyers with crypto and they want to use that in the transaction and from going from their crypto account to clear to close, there's quite a lengthy process.

00:03:16:04 - 00:03:41:05
Nate Carver
Old school, the old way of doing things, to where that cryptocurrency is actual deposited, and accessible U.S. dollars. Right. That's all way. What are what tell me what property is now doing that makes this so exciting for realtors and their clients when it comes to crypto in purchasing a home?

00:03:41:07 - 00:04:09:08
Shannon Conradi
Absolutely. So if you have a client who wants to purchase a home in cryptocurrency, we have our site w property.com/kyc. That's the no. Your customer. They'll go through and put their information their first name last name, their address, all of the information that is needed. And they'll go through an eight step process. And once they complete that process, if they have passed it, that's when we're able to turn the cryptocurrency into US dollars.

00:04:09:10 - 00:04:16:14
Nate Carver
Awesome. In that timeline to do that. Is that part of the closing?

00:04:16:16 - 00:04:41:22
Nate Carver
No. You would usually have this done before you even send an offer like, I don't know of a realtor who would really go ahead and send an offer if they haven't seen a proof of funds from a bank account. Just the same, you have a potential crypto buyer or even you working with a potential buyer. And during you know, the conversation, he just drops the bomb.

00:04:41:22 - 00:05:12:08
Nate Carver
Hey, can I use crypto for my deposit? This is where you can qualify you. We can qualify that buyer for you and issue you a proof of funds that you can use in your offer cash, all of that. This is essentially a qualified letter, maybe even. Yeah, that's essentially a qualified letter or pre-approval letter, that you would be able to produce for your for your crypto buyers.

00:05:12:10 - 00:05:46:03
Nate Carver
Remember. Well, as a title company, we are heavily regulated. You know, it is a we and it's paramount important for us to stay compliant not with local and federal rules and regulations. So our title team will not get involved before your buyer completes the identification process. So we know who are we working with. So this allows us to protect ourselves but protect you as a realtor protect your seller and buyer.

00:05:46:05 - 00:06:07:24
Nate Carver
Right. And so as a lender, when I'm talking to realtors, when they tell me that they have, they have a lot of cash buyers, usually that's the end of it for a lender because they're like, well, I can't do anything for the cash buyer. But for me, this I see this as a tremendous value add to a realtor in their portfolio and being able to take care of their clients.

00:06:07:24 - 00:06:23:02
Nate Carver
Ultimately, the home buyer and your, your vet, your qualification process that you talked to, I forget what the the letters are, what you call it, that defines it. The. Yeah. Say it again.

00:06:23:04 - 00:06:24:15
Shannon Conradi
KYC.

00:06:24:17 - 00:06:59:20
Nate Carver
KYC. Yes. So you qualify your customer, you know, your customer. So you call on them with the no, your customer that the realtor can use in making offers in crypto. And then you all can get them closed is fantastic. Not only that, now with the with the with that flow where we do a identification check, we not only make sure that that person actually has the funds that they claim they do, but also we make sure that they're not on the FBI most wanted list.

00:06:59:22 - 00:07:28:11
Nate Carver
We verify that, no, it's a really legit, problem. Most people associate crypto with dirty money, with drug money, trafficking money. And we make sure that we run AML, anti-money laundering. And we verified the source of funds. We make sure that really, like, when you send that offer and sign the deal, you are dealing with a legit buy, right?

00:07:28:12 - 00:07:54:15
Nate Carver
So when when a realtor has a client that says, hey, I want to use crypto, the very first thing they need to do is send them over to property and get their KYC taken care of so that they have that piece laid out. How would that not exactly what I really try to educate our agents is how to feel comfortable talking with potential buyers like this.

00:07:54:20 - 00:08:18:10
Nate Carver
Don't explicitly just absolutely. So keep that conversation mean you don't have to run away. Be like, no, my broker doesn't do that, or my seller doesn't accept that. So causation asks, am I get I get random questions in in lending all the time about lending all kinds of I mean, there's there's so many different types of mortgages out there.

00:08:18:12 - 00:08:46:18
Nate Carver
And instead of getting afraid when they ask me about a DeCarlo, for example, and getting deer in the headlights, I'm like, awesome. Yes. And then I go do some research. So for realtors, my next question was to you is can you explain crypto closings to us? Or how would a realtor explain crypto closings to someone who might be hesitant?

00:08:46:20 - 00:09:21:19
Nate Carver
Yes, it's simple. It just like you have a cash buyer, it's just like you have a spa. That's it. I mean, legally, if you're representing the buyer, you typically you don't have to disclose, especially in the beginning, that the buyer wants to use any digital assets. Sure. That is because there is nothing different on the seller side. On the seller agent side that they will do that they will sign other than when they have a cash buyer.

00:09:21:21 - 00:09:46:08
Nate Carver
When you send us that sign contract, that accepted offer, we will work with the buyer. When I say we, I mean property title and we will receive those funds. We will convert in house. And I'll tell you why is that important? But by the time the funds hit the escrow account already knew US dollars. Yeah. No difference.

00:09:46:10 - 00:10:15:21
Nate Carver
There will be no right nos. As if you have a cash buyer. If you're, you know, on the sell for. So the buyer's realtor, what would you tell them? What couple of reasons why they need to be excited about crypto and what property is now doing. Open up your opportunities to a whole new market of high net worth crypto holders.

00:10:15:23 - 00:10:52:06
Nate Carver
And that if literally like nobody pays attention to that, you have a vast asset value locked in crypto wallets that there is no reason there will be no investments within real estate. So you're going to be open to conversations like that. Listen to opportunities. Nate, have you heard of the Red car theory? No. Have it like, when you.

00:10:52:08 - 00:11:16:21
Nate Carver
What, are you working off of, an office or your home? Me? Yeah, I work home or wherever on that. And you do occasionally go outside, right? Yeah. Go to the store. Like if I tell you, like, I'll give you 50 bucks. Even better, I'll give you 50 Pro tokens for every red car that you seen today. How many did you see?

00:11:16:23 - 00:11:41:08
Nate Carver
Oh, I'm going to see a bunch. We're looking for all in today. Oh, have I seen today? One. Yeah, exactly. But if you go out tomorrow, I bet will see every single red car that you will pass your way because you will keep an eye on that opportunity. Yeah. Just a little bit. Like, keep an eye open up to conversations.

00:11:41:10 - 00:12:12:04
Nate Carver
Don't let this pass you by I love it. So y'all told me earlier in the first play that since y'all start since the crypto entitle, as long as y'all been doing this today, zero loans have failed. Or purchase not loans. Zero crypto purchases of homes that build with y'all. Tell me I'd love to hear some stories about crypto buying of homes and what y'all have done for clients in the past.

00:12:12:06 - 00:12:42:09
Nate Carver
Maybe price points, price ranges, upper and lower end just to let people know what's do possible. I'd love to hear that. Well, I like your, mistake that you made, like crypto loans. Beginning of this month. It was, I believe, right after the bank holiday. It was like the fourth, I believe. Was it the. For the first business day of the month, we got ill.

00:12:42:11 - 00:13:17:17
Nate Carver
That was supposed to be a buyer with a crypto deposit. And, and a traditional loan. So it was challenging. I'm telling you, it was challenging to get the the the lender track the deposit, the funds, of of that buyer. Yeah. Everything was done like we pushed it through. It was challenging, but we made it. And the day of the closing turned out that the buyers were in the middle of the Atlantic on the week.

00:13:17:19 - 00:13:43:02
Nate Carver
And I told them, you can't do that. You're working with a traditional lender. It can be outside the US and expect like an online closing. So they had to scrap the loan and they funded the deal with it. You know, purely by crypto like cash. It wasn't their intention to me, but we managed to close so we can I see what the gap was between not being able to close or discovering that.

00:13:43:02 - 00:14:09:15
Nate Carver
And then when y'all closed with the crypto, how long of time that took? How long? Yeah, took two days for the sellers. No no no I'm sorry. Hold on. Two days. The seller were not sure if they want to sign the addendum because they didn't know. They were wondering if they really now have the funds. They didn't believe that it was going to close.

00:14:09:21 - 00:14:38:01
Nate Carver
So we took us two days to, to get them to sign the addendum to change it to a cash, and then they transfer the funds literally within five, six hours, everything was signed and closed. Oh, that's amazing. That to me, in comparison, the best I've ever done when someone has brought me a, a loan that has fallen apart at another lender.

00:14:38:03 - 00:15:07:24
Nate Carver
Seven days, seven days, and you did it in five hours. That's amazing. Handling crypto payments is really quick. Yeah. Last year we had a buyer, traditional buyer that were in Paris. It took us seven days for that wire to hit up the US bank and that that was for the deposit. And then when they fund it, they convert it into stablecoin.

00:15:08:01 - 00:15:22:12
Nate Carver
We had the funds within within 30 days. Our is there a cap on the amount or a minimum on the amount that one would be able to use crypto to purchase?

00:15:22:14 - 00:15:29:01
Shannon Conradi
I think he might be pulling up. The chart? Yeah, the token.

00:15:29:03 - 00:15:52:11
Nate Carver
Can you can you specify. What do you mean? Minimum I don't know. So most many lenders, they don't like to go below 70,000 or maybe a 100,000. It's because the, the the cost of the loan, ends up not being profitable or feasible. And then on the other end, you know, you've got to have jumbo loans.

00:15:52:11 - 00:16:12:17
Nate Carver
There's no cap there. But you got you have, you know, county loan limits on FHA and conventional loans, no limit on VA loans. But I was you know, it's a cash buy. So I guess you could as long as you got push towards the loans. And I will be happy to tell you how we can incorporate like crypto bank loans into it.

00:16:12:17 - 00:16:39:14
Nate Carver
But most of the cases you'll have a cash deal. Yeah. So buyer coming in and sellers getting their proceeds in U.S. dollars. Right. And funding the if there is a mortgage on the home with funding, you know, the mortgage. This is something that, you know, there is a probably, a whole new episode that we need to do is how we use a automation because.

00:16:39:14 - 00:17:06:23
Nate Carver
Right. And, well, Shannon, I'm not sure we should disclose this because we haven't made the official announcement yet, but we do, mortgage pay offs completely. By agents, I mean, the mortgage broker would not even know they're talking to an AI. That's amazing. And I mean, think about all the time savings, all the, how how much quicker we can process traditional.

00:17:06:23 - 00:17:49:10
Nate Carver
I'm not even talking about crypto traditional deals. Right? It's all about technology. How you leverage the technology to be more efficient and to provide a better service for your clients. Because, face it, we leave in times where same day delivery. Yeah, next day deliveries accessible. But yeah the contract and you know on a Friday and waiting three days to get the welcoming letter and the one instruction get it understand why the lending world there's the guidelines and limitations for each loan type.

00:17:49:12 - 00:18:12:19
Nate Carver
But whereas when you're coming at it with the cash in hand, in crypto to close, I guess I was just trying to identify or point out the fact in a Realtors mindset, how do I help my clients best? And if there's no you can, you can. But let's say you're an investor and you see a piece of property that you want to buy.

00:18:12:20 - 00:18:42:15
Nate Carver
Maybe it's a fixer upper. You know, there's very limited loans available for that. But as a crypto option, y'all would be able to fund that deal through his crypto or his or her crypto and make that purchase happen. And I guess that's what I was trying to, I just point out, from a realtor perspective, as a lender, I'm going to always say loans, but that's just because I live Breeden live the breed loans.

00:18:42:17 - 00:18:57:02
Nate Carver
I absolutely love this. What? Looking ahead. Well, tell me you're. What states are y'all operating in currently? And then maybe a little teaser on where you're going next?

00:18:57:04 - 00:19:15:10
Shannon Conradi
Yeah, I can answer that one for you. So we are currently in Florida, Arizona and Colorado, and we should be getting California within the next week or two. And a little sneak peek of where we're headed next towards the end of the year, Texas.

00:19:15:12 - 00:19:41:04
Nate Carver
Nice. I'm not I'm licensed in a few of those states. So, one of the reasons I got really excited about this, is the states that I have licensed, I carry a license in that I can those realtor partners that I have about one more thing to introduce them to. I've already teased it to a couple of realtors down in Florida, and, they they are very clear.

00:19:41:05 - 00:20:01:09
Nate Carver
The feedback. What what is the feedback? What are you they're excited that I like. Look, hey, I know you do a lot of cash buys and and you've always every time I talk to them, they're like, oh, I got a buyer, but it's a cash buyer. And but now I've got a great follow up, so usually I just cheer them on.

00:20:01:10 - 00:20:26:22
Nate Carver
I celebrate my realtors wins, period. And, and, now I've got a follow up to that and I'm like, look, I've got the two. The two realtors that I've shared this with in Florida. Like, look, there is a product out there that will help you cash buyers in when they're using their crypto. You're going to love. And, we had even talked about what y'all do with realtors.

00:20:26:22 - 00:20:43:06
Nate Carver
If y'all want to, we can do that. The incentives in in programs that y'all had that, that make this amazing for realtors. I'd be happy to talk about that because I hadn't talked to them about that either. So I was like, that's y'all's I need to hear from y'all.

00:20:43:08 - 00:21:10:16
Shannon Conradi
Yeah, definitely. So I know Nate, last time we spoke, we went over our platform. So it's just another way to see another pool of buyers and kind of get your listings out there to potential crypto buyers as well on our platform. And also we do have our property coin, where when you refer a realtor to this platform, you as a lender are earning 20 pro coins, which eventually turn into US dollars.

00:21:10:21 - 00:21:34:05
Shannon Conradi
So there's an opportunity for you to make prochains while you're using this website. The same thing for realtors when they're referring other Realtors, they are earning pro coins as well, which is really cool that we have. Also, you set up your profile, the realtors linked to the animals. All their listings are linked to our platform, so they're able to go on there and complete everything.

00:21:34:05 - 00:21:57:09
Shannon Conradi
AI is incorporated throughout the process. And then also, once you drop your contract, AI abstracts the information and puts together a timeline of when your deal is going to close. Every escrow officer will be on that file, so you're able to email them or call them as well. And the buyer and seller can communicate in one place instead of traditional escrow going back and forth and losing emails.

00:21:57:09 - 00:22:04:05
Shannon Conradi
It's all in one place. It acts as a transaction coordinator for the realtor, which is amazing. We also.

00:22:04:05 - 00:22:04:18
Nate Carver
Yeah.

00:22:04:20 - 00:22:21:20
Shannon Conradi
We also offer free marketing as well. And we have AI headshots. If people don't want to spend money on photos, there's a lot of really great perks with our company. We want to save you guys time as well as money. So that's why we have all of this in place.

00:22:21:22 - 00:22:47:22
Nate Carver
This is fascinating. So let's put some links to this conversation. Whether you're listening to this on Spotify or YouTube, we're going to have some links down below. Next step actions for realtors and is to, for them to pursue this, I'm going to introduce this to the realtors that I know. I just think this is a fascinating thing.

00:22:47:24 - 00:23:14:19
Nate Carver
Realtors hang on your hats. There's so many good things coming in our industry, from AI to with crypto blockchain. When you talk about pertaining, there's just more interest rates are coming down. Not if y'all care about loans in this conversation, but market is going to be fantastic in the end of 25, 2026. I'm super optimistic about that.

00:23:14:21 - 00:23:15:12
Nate Carver
Last word.

00:23:15:15 - 00:23:17:12
Shannon Conradi
On blockchain. If you want.

00:23:17:14 - 00:23:18:11
Nate Carver
Was that.

00:23:18:13 - 00:23:25:19
Shannon Conradi
Doco can definitely tell you a little bit about blockchain as well. I put together the link for you do it.

00:23:25:21 - 00:23:55:10
Nate Carver
Yeah. I mean we can have a whole separate conversation about how you can, you know, bringing your lending experience into really servicing those crypto buyers. Because right now nobody really wants to liquidate their their digital coins. Everybody wants to hold on to them. Although the Bitcoin is, you know, the all time high. Everybody believes it's going it has so much more potential.

00:23:55:12 - 00:24:24:22
Nate Carver
So think about you servicing all this cash offers that usually have nothing to do with a loan. But now they can use their coins as a collateral. Invest in real estate. And it's a great, great benefit. Great talking point especially for realtors how to engage with with a tech savvy buyer is that they have an option to mitigate capital gains tax.

00:24:24:24 - 00:24:53:20
Nate Carver
Because we use your crypto as a collateral, it's not a taxable event. Okay. So let's we're going to come back and have a conversation about property for the buyers. Definitely. And and what this means to homebuyers and any any last words before we wrap this one up? This has been a educational for sure. And I I'm going to have more questions for sure.

00:24:53:22 - 00:25:03:22
Nate Carver
But I don't think you have to have all the answers. If you're a realtor, this is going to be a huge value add to your portfolio.

00:25:03:24 - 00:25:09:03
Shannon Conradi
As we always say, don't get sloppy. Utilize property.

00:25:09:05 - 00:25:43:15
Nate Carver
Oh, I like that. Well, don't be afraid. Ask questions. Take good. Take advantage of any opportunity that you know comes your way. Know how to stay safe. There's still a lot of froth associated with crypto and real estate, especially in the luxury segment. But there is like just three simple steps that you need to do whenever you talk to somebody who wants to use a new form of payment, you just ask them what kind of crypto they want to use.

00:25:43:17 - 00:26:10:20
Nate Carver
Send them to property to complete the identification process that KYC. And the third one is just do what you would usually do, like sign a very traditional typical cash contract. That's it will take care of the rest. All right. Thank you everybody for being with me on between two doors. Realtors. If you've got questions please reach out. Links down below.

00:26:10:20 - 00:26:15:10
Nate Carver
Contact information will be down below and I look forward to talking soon.

00:26:24:14 - 00:26:32:16
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