In any given year, the real estate industry is presented with a host of technologies that promise to make your life easier, to manage your transactions more effortlessly, and to help you work smarter, not harder. Some achieve a portion of what they promise, but most fall short. Yet we know with the uptick in purchasing power by the millennials, the first generation to grow up with computers, we MUST embrace technology and learn new ways to make the home-buying process a transparent, secure, online experience.
Propy’s Founder and CEO, Natalia Karayaneva, saw a need for a new way to conduct business when she worked as a real estate developer for 15 years. Some clients wanted to invest in properties remotely but had fears about doing that. Karayaneva looked at how easy it was to buy anything online but not real estate.
For a new technology to work in the US real estate market, she knew it would have to:
- Save both the homebuyer and the agent time and effort.
- Provide an easy-to-use platform to complete a transaction.
- Provide a fraud-proof method for wire and title transfers.
Venture capital investor, Tim Draper, Draper Associates, partnered with Propy to help bring Karayaneva’s vision to life. Draper shared,
“Propy has the potential to transform Real Estate, making transactions and titles simpler, more secure, and less expensive through innovative use of blockchain technology. The Propy team is the first mover in using the blockchain for real estate and looks to automate the home-buying process and transfer of title using innovative technology.”
The traditional process of purchasing a home has been brought into the 21st century and the digital age through this innovative technology and is being utilized by a number of the most forward-thinking brokerages and real estate firms in the country. Propy has developed a user-friendly platform that allows clients to make an offer, sign a purchase agreement, make secure wire payments, and receive the title deed through its streamlined, compliant platform. Brokers can now use this cutting-edge technology for remote closings, and offer their clients security and peace of mind. Draper says,
“Propy’s solution for property sales eliminates fraud and makes the closing process more secure, effective and streamlined. We are thrilled to be backing this innovative team, and we look forward to Propy automating and simplifying the real estate industry.”
Draper has a deep understanding of blockchain and has been an early investor in tech companies such Tesla, Docusign, SpaceX, and Robinhood, and thus is a great fit for such an untrivial mission of Propy. “Tim Draper is an outstanding motivator and he truly believes in the founders and startups he invests in,” says Propy’s CEO, Natalie Karayaneva. “As a legendary investor who has backed some of the world’s most revolutionary tech companies, Tim was the perfect investor for us. My vision for Propy is to bring self-driving real estate transactions to the world, with all of the logistics seamlessly executed on the back-end. With Tim’s support, we are excited to bring much-needed change to the industry, satisfy consumers, and empower real estate professionals all over the world.”
Other investors at Propy include Second Century Ventures’ REACH program, Michael Arrington, EAJ (Escrow Agent Japan), and prominent angel investors. For more information on Propy, or to request a demo please visit: propy.com.
About the use of blockchain technology
You’ve undoubtedly heard of cryptocurrency and Bitcoin, and know that blockchain is somehow connected to those, but why does this technology matter in the real estate space?
Today, smart contracts have been fully utilized, and electronic signatures have been accepted. Soon, ownership will automatically be transferred at closing (Read: Property Settlement on Smart Contracts Eliminates Manual Work)
Propy was able to build a novel software that handles the entire paperwork process between participants, as well as wire payments and e-recording. Every single step of the transaction is a part of the underlying settlement product. With Propy, the system knows instantly and securely when the parties sign paperwork, when the wire transfer gets initiated and finished, and when the ownership is recognized as clear. Thus, smart contracts can enforce e-recording and the release of the funds. This is all possible because of blockchain technology.
Over $400m total volume of real estate transactions was processed via Propy closing software. Every single transaction was recorded on the blockchain, with sensitive data encrypted. No fraud cases. Every smart contract is unlocked by tokens. Read more about the technology here.