Real Estate NFT as Collateral

Propy, NFT's & Helio Lending

Helio has partnered with real estate Transaction Platform Propy to enable property/real estate NFT’s to be used as collateral for loans, similar to a cryptocurrency backed loan. This new type of financing allows NFT property owners to leverage their assets as they would if it were physical property with a traditional bank or financial institution.

Propy is a leading real estate innovator in the automation of transactions using blockchain technology that just made history selling the world’s first Real Estate NFT with ownership transfer.  To see more, head to this article.

Real Estate NFT Loan - How it works

Use Real Estate NFT as Collateral for a Loan

Propy Inc. just made history selling the world’s first Real Estate NFT. Helio Lending is now allowing this new world of Real Estate to meet the new world of finance by allowing Real Estate NFT’s to be used as collateral to receive US Dollars up to 70% of the NFT value.

You can use the Real Estate NFT as collateral to borrow up to 70% against your RE NFT value and SKIP the mortgage process.

Read more about the Propy x Helio Lending partnership here

Real Estate NFT used as collateral

Another Option

Crypto backed loans for purchasing real estate

If you have cryptocurrency to use for collateral, another option is to use those assets as collateral to receive funds to purchase a property NFT. For example, say you have $130k USD worth of BTC/ETH/XRP/LTC etc. to use as collateral, you can receive 70% of the value in cash, using the Bitcoin as collateral with Helio Lending. The benefits of this loan include no margin calls, interest as low as 4% p.a, no rehypothication, no credit checks, non recourse and no tax event is triggered by the transaction.

Use the loan funds to purchase a Real Estate NFT

Using the $100k borrowed against your Bitcoin, you purchase a $100k Real Estate NFT to own wholly and debt free.

Use Real Estate NFT as Collateral

You now own a $100k unencumbered property via an LLC in an NFT, which is able to be borrowed against as a business loan through Helio Lending. You can leverage up to 70% of the Real Estate NFT value to receive up to $70k USD.

Summary

You still own $130,000 in BTC with $100,000 debt.

You now also own $100,000 in property with $70,000 debit

The extra $70,000 now available via the NFT loan you can use for home improvements, to buy more BTC, pay down some of the BTC loan or deposit for next real estate purchase.

Assets Debt
BTC Or Other Crypto $130,000 $100,000
Real estate NFT $100,000 $70,000
US Dollars $70,000
Totals $300,000 $170,000

Reduce your initial debt

You can now choose to pay down the initial debt with Helio using the $70k from the NFT. Reducing your debt for the BTC loan from $100k to $30k, with the existing $100k outstanding taking your total down to $130k. You then have $130k BTC, $130k debt and a $100k property.

Appreciation and income generation

You’ve now got an income generating asset with your property, you can use rental income to pay down the loan owed against the property, and you also have your BTC, which looking at historical data will have appreciated somewhat over the term of the loan. If it hasn’t appreciated in value, one of the major benefits of our loan product allows you to walk away from the loan with no recourse if your BTC value is less than when you initially staked your asset. If it has appreciated, you can choose to pay off the loan to receive your BTC back plus any upside.

Crypto Loan for Real Estate Purchase

Contact us to find out more

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    Frequently Asked Questions

    Yes, we welcome your call or email. You can contact us on:

    Yes, we have various loan providers but for some providers, while you have an active loan with Helio Lending, you still own your crypto. It is stored in your name in a cold storage wallet, where it is insured, and cannot be traded.

    We completely understand that our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

    Yes, for many of our loan providers your crypto is secure during your loan. Your crypto is secure because:

    it is stored in a cold wallet;

    it is insured; and

    no-one can trade your crypto.

    We completely understand that our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

    Yes, your crypto is insured during your loan. Also, we keep it in a cold wallet where it cannot be traded.

    We completely understand that our borrowers want to know their crypto is safe and secure during their loan. So we make sure it is safe and secure.

    Full FAQ's