Canter Companies, a financial and advisory investment firm based in San Diego, is betting that the future of real estate lies in cryptocurrency, and Bitcoin specifically. By listing two high-priced, luxury properties on the market and accepting Bitcoin as a form of payment, Founder and CEO Andrew Canter is hoping to tap into a demographic which thus far has been underserved when it comes to real estate sales.
Those who prefer to deal in Bitcoin haven’t always had the option to do so, as adoption of the cryptocurrency is not as widespread as many would prefer. This has proven to be even more true when it comes to high-priced purchases, real estate included. Canter Companies and a select few other brokers are working to change that, and Canter is leading the charge by putting his own $11.8 million beachfront smart home on the market, and encouraging the use of Bitcoin as tender.
The move is one that is forward-looking, but also one that is targeting a demographic which has seen their fortunes grow in the past year-plus. Those who struck it big with Bitcoin are able and willing to put those funds to work for themselves, and Canter wants to make sure that his brokerage isn’t missing out on opportunities by overlooking a prime demo.
“We realized there is so much new wealth in the crypto space,” Canter said. “There are a lot of new buyers and a lot of people that have seen their wealth fluctuate over the last year.”
But, the cost of Canter’s Marine Lair home at 6653 Neptune Place overlooking Windansea Beach means that purchasers will have to unload a fair amount of Bitcoin to attain the smart home, which has a rooftop pool and is considered an achievement of modern architecture.
It’s one of two properties which Canter Companies has listed with Bitcoin as an option for payment. Alan Ezeir, a client of Canter’s, also listed his property at 1257 Silverado St., dubbed the Arc House, for $7.8 million.
Canter knows that the price is not fit for the tight-pocketed, and he also understands that those he is primarily targeting, the crypto-rich, have the money to spend. Bringing awareness to a wider user base that may not be completely familiar or comfortable with the safety of dealing in cryptocurrencies is also part of Canter’s goal.
“Our job is to make sure our clients are aware of emerging technologies and trends. After carefully studying this industry, it’s clear there is an entire new class of wealthy individuals which are underserved and our mission will be to help bridge that gap between them and our real estate clients. This won’t be a one-time campaign. We’ll continue to research and implement different strategies to gain access,” Canter said.
As a financial and advisory investment firm, Canter Companies is in a prime position to help integrate a form of exchange that is steadily gaining popularity, adoption, and understanding into the San Diego real estate market. That said, the two Canter properties aren’t the first to be listed with a Bitcoin payable option in San Diego, as that distinction belongs to a 2.32-acre property located at the end of Boundary Street in North Park. It’s a trend that is steadily becoming nationwide.
In September of 2017, a property in Austin, TX was sold using Bitcoin as the medium of exchange, thought widely to be one of the first real estate purchases using cryptocurrency. Since then, when Bitcoin was valued at $3,429, the price of the coin has risen significantly, changing the dynamics and proposition of trading a high-priced property in exchange for Bitcoin.
Regardless, buyers and sellers who purchase or flip a property using the popular cryptocurrency need not be concerned about the daily changes in the price of Bitcoin once terms are agreed upon. Utilizing a futures contract via a third-party bank, the price of the coin will be locked in depending on its value at the time of sale. Those terms, and whether or not somebody is a candidate for a Bitcoin-centered purchase or sale will depend largely on how they feel about the coin’s future, for better or worse.
“It’s a personal preference when it comes down to it,” Canter said. “I don’t think we can speak to a financial benefit here or there. Obviously, the chance [bitcoin’s value] goes up is just as much as it goes down right now.”
Considering the fluctuations of the Bitcoin price, there’s no doubt that such an arrangement involves a certain level of speculation. But for those looking to invest their Bitcoin in an ultra-modern property, sinking some crypto into one of the two Canter properties – or both, for that matter – isn’t a bad way to start.
