$100 Million Real Estate Power Play🔥Propy's Master Plan + $PRO Buybacks! CEO INTERVIEW

The $100 million consists of a mixed financing package integrating private credit with blockchain-based DeFi loans. It will allow Propy to acquire title firms that it plans to upgrade to faster, safer and fully digital closings, powered by Propy’s on-chain model.

~This Episode is Sponsored By Coinbase~
 Buy $50 & Get $50 for getting started on Coinbase➜ https://bit.ly/coinbasePBN

Guest: Natalia Karayaneva, CEO of Propy
Propy website ➜ https://propy.com/home/

00:00 intro
00:05 Sponsor: Coinbase
00:22 Propy $100mil Expansion
02:29 Crypto Backed Loans
04:58 Threat To Banks?
06:00 A.I. Real Estate Agent - Avery
08:42 Growth Outlook
11:16 $PRO Token Buybacks & Utility
13:39 Propy IPO
15:15 Stablecoins in Real Estate
19:49 outro

#Crypto #Bitcoin #Ethereum
~$100 Million Real Estate Power Play🔥Propy's Master Plan + $PRO Buybacks! CEO INTERVIEW~
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Episode Transcript

Speaker 1 (00:00):
Today we're going to be diving into crypto back loans.
When it comes to real estate and what you should
be looking out for, we'll get right into it. I
do want to thank our sponsor, and that is Coinbase.
Coinbase is where you guys can begin your crypto journey
and one of the ways you can do it is
signing up. If you haven't already opened a Coinbase account,
whether you're a business or an individual, check it out.
All you have to do is use our link. The
future of money is here. It does help us out,

(00:22):
so get to it all right. You guys have probably
seen us cover properly before and I want to introduce
and bring back.

Speaker 2 (00:27):
To the show.

Speaker 1 (00:28):
Natalia, who's the CEO over there?

Speaker 3 (00:30):
How are you hi? Paul, Great to be back, Very
very very excited about our news.

Speaker 1 (00:35):
Another one hundred million in terms of an expansion. This
is around an aiscro officer which is going to modernize
your home closings. Explain to me a little bit about
what you guys are doing here.

Speaker 3 (00:46):
Absolutely So, we've just launched our news about one hundred
million dollar AI let roll up strategy, and I think
we have identified the biggest opportunity in real estate in
today's market, and it's where it matters the most, the
transfer of ownership the title and escrow. The US title

(01:08):
industry is a twenty five billion dollar industry and it's
very fragmented, yet it's a very profitable build business. So
I don't know, Paul, if we covered that before, but
probably many of you have heard that. Probably had been
building this AI and smart contract powered platform for eight years.

(01:29):
But the interesting fact is two years and a half
ago we bought the first title company license in Colorado
and Arizona. Back then, I just moved to Florida and
we expanded these title operations to Florida, got our license,
got our sales team. That's where our profitable journey started

(01:53):
because we were able to finally utilize our platform at
full and start generating revenue and growing very fast quarter
to quarter. So now with this AI led roll up strategy,
we're acquiring more title companies with only one multiple to

(02:14):
their annual revenue, increasing the margin, increasing the productivity of
the closing team, and expanding nationally.

Speaker 1 (02:23):
Interesting and part of this is of course built around
your AI. We'll talk about that in a second, but
before we roll into that, So this could be a
big unlock for you guys in general.

Speaker 2 (02:34):
Let's take a look at the crypto back.

Speaker 1 (02:36):
Loan side of it, because this is something that is
somewhat new to you guys. So you've got one hundred
percent crypto back loan capability here some of the key benefits.
You guys have probably seen some of this out there,
and this seems to be an area that is growing.
How are people using this right now to be able
to kind of leverage into real estate with crypto.

Speaker 3 (02:54):
Yeah, well, obviously, in the past years of crypto booms,
the majority of crypto investors wanted to exit some of
their profits in real estate, but at the same time
they don't want to exit their bitcoin or other crypto positions.
So there is an appetite, a huge demand for utilizing

(03:15):
crypto as a collateral and then entering the more predictable
risk averse investments like real estate, but there has been
nothing available on the market besides small players. We're at
this stage of the market where traditional mortgage companies are
warming up towards crypto utilizing it as a collateral, especially

(03:37):
with the summer FHA announcements, and then the crypto lenders
they're becoming more prone to accept real estate as a
collateral or provide loans backed by crypto for the real
estate purchase purpose. So it's yet to evolve, but we
are at the very early stage. So you can imagine

(04:00):
that a bitcoin holder could lock their bitcoin holdings and
get a used DC or stable coin loan and acquire
a property on the spot on chain automatically instantly.

Speaker 1 (04:14):
Right now, it's bitcoin and ethereum as collateral.

Speaker 2 (04:17):
Is that correct?

Speaker 3 (04:18):
Bitcoin Ethereum XRP. But the majority of our deals, well,
the first deal we did was in bitcoin, that was
earlier this year, and now we're collaborating with other partners
like Morfo, like mile that is also they're accepting bit
premierly Bitcoin. We're open to different other types of assets

(04:41):
such as Solana XRP, but again it's yet to scale.
It was a very interesting breakthrough beginning, but at some point,
probably within the frame of five years, we'll see it
as a normal standard practice.

Speaker 1 (05:00):
Well do you think banks offering these kinds of loans
will help the industry and help you guys overall or
is this something more of a competitive landscape now?

Speaker 3 (05:09):
I think overall it uplifts the whole industry. So if
those banks, and they're one of the biggest lenders for
providing mortgages. If they embrace cryptocurrency and the cryptography that
we've built in the right way, then it could be

(05:31):
an add on partner. But we are hearing that currently
some of the regulations that have been introduced are being
altered or there is a willingness to alter it. So
bank has a better and stronger competitive advantage over the
crypto native companies. So I think we yet to see

(05:52):
and evolve how two worlds will overlap or the new
generation technology will disrupt again the status school.

Speaker 1 (06:02):
The other area that I think obviously starts to separate
you guys, is what you're doing on the AI front.
I'm looking here at your agent Avery. I was listening
to the phone call that is a sample here and
I would recommend you guys going on looking at it's
over on propery dot com for slass Avery. But is
that the only use case that is kind of going

(06:24):
through minutia of the title company is being able to
pull off loan balances, et cetera. Or do you see
this becoming much more integrated into the entire real estate deal?

Speaker 3 (06:35):
Oh? I think the agenic world is changing a number
of verticals, including real estate, and I feel that AI
agent Avery potentially will become this licensed as screen title
agent that will operate alongside humans licensed experts and potentially

(06:55):
will element all the human prone mistakes and human prone inefficiencies.
So she is currently executing on two roles. One of
them that you've heard on our website. It's properly the
slash Avery. You could actually talk to her. It's a

(07:16):
more kind of a sales role. She can explain everything
about propy, about real estate on blockchain, how to get
a loan against your bit, going to buy real estate,
what is a proper talk, and how smart contracts are
useful for crypto transactions in real estate crypto wallets, how
AI is useful for realisted. However, the main breakthrough is

(07:38):
through her second role and is the role of an
ESCRO officer. Our AI agent Avery is aware of every
single transaction. Our ESCRO officers work with her as a
co pilot in every single transaction. They ask, for example,
how many deals do you have today, how many escredcosits

(08:01):
have live today, and then she can also act as
for their requests. She calls our lenders to get mortgage payouts.
She calls hoas to get informations for closings.

Speaker 2 (08:15):
I like it.

Speaker 1 (08:16):
I wish she could call my HOA because I'm always
having to deal with them. Maybe this will become a
retail product soon. Let's talk about the growth of crypto
closings for real estate. It has been slow moving, obviously
for regulatory reasons, but that is of course over the
past year has really opened up. Now we're seeing collateral
being utilized. Crypto kind of earmarked as a collateral now

(08:40):
for almost any bank loan out there. Do you think
this is going to accelerate into the real estate market?
Where would you put this market in a year from now?

Speaker 3 (08:50):
And I like to make a comparison to the spike
huge instance Spike and the fate of the NFT hype
as a remember when we had this interest towards ours
and buy artists work for NFT and all the celebrities
we're getting on board, and it was suddenly billions of

(09:12):
dollars support into the industry real estate on chain. I
feel like even though it took years to get to
those early adoption signals that were experiencing today, it will
further accelerate and grow. So it did not experience any
huge spike in the past years, but gradually it built

(09:35):
on the momentum in a very healthy way, which is
signaling to us that it's here to stay. And so
within one year we would see stable coins bitcoin to
be accepted as a norm in a real estate transaction process.
During the last bull run, eleven point eight percent of

(09:57):
first home buyers use cryptocurrency to fund their down payment.
So obviously the new generation making money in crypto, they
want to reinvest in them into their biggest dream, which
is ownership American dream to own a home in America.
So within one year I see even bigger adoption. After

(10:21):
the Clarity Act was introduced this summer. The next month,
our developer clients, real estate developers, suddenly saw a huge
spike of transactions in stable coin, which was surprising to
us because we never marketed it. I needed developers, but
as soon as it was introduced as an option, they

(10:44):
had doubled their number of sales in high quality luxury
buildings here in Florida, where numerous buyers would use their
stable coins to buy real estate.

Speaker 1 (10:57):
Interesting, well, I showed a tweet here This was in
reference to one of your reports here the leads jump
twenty five percent. Yet ninety four percent of buyers now
US base led by Florida obviously California, Texas, but there
are some of the closings right there with stable coin, Bitcoin,
Ether and even XRP. So interesting times ahead. Now, I

(11:18):
know you're looking to increase the pro token utility.

Speaker 2 (11:22):
What will that utility look.

Speaker 1 (11:24):
Like in the future for the Propery token.

Speaker 3 (11:26):
Yeah, propit token is the major utility talken that is
fueling bringing real estate on chain. It brings a lot
of attention to propy by the global property market participants.
So as you know, it acts as a gas fee
for every single transaction and Propy then we also utilize

(11:50):
it with our partner coinbase that you have just mentioned,
where last year a lot of coin based users were
able to learn about proper Title and earn properit talkens.
So it has been a tremendous value for proper Bread
brand recognition for bringing real estate participants to the market.

(12:11):
And now this week actually we are launching our next
white paper on upgraded talking economics for pro pr which
is again listed on pinbase. Recently also on cracking, as
I mentioned, we have launched the news about one hundred
million dollars all up. So the fascinating part of it

(12:34):
is that we're using the funds from private credit funds
as well as on chain lending. And what I refer
to is our partner morpho where we're able to get
a loan against our crypto holdings, and when we utilize

(12:57):
our funds that are bagged by crypto holdings, and when
we're acquiring our next title company, part of the profits
from these operations will be utilized to buy back proper tokens,
so that will further build our treasury towards going public.

Speaker 1 (13:18):
All right, So that's that's interesting and interesting flywheels. So
taking loans out on crypto holdings leverages that in to
purchase businesses and then of course that gives you the
capacity on cash flow to go out and buy rebuy
property tokens and then get ready for an IPO. Wow, nice,
nice moves. I like that process. How long before we

(13:41):
would see an IPO for you guys.

Speaker 3 (13:44):
Well, it all depends how quickly we will execute on
our one hundred million dollar roll up strategy, and I
will share why it matters. So it could be from
twelve months to forty eight months and then six months
for preparation for the IPO itself. So let me explain
how it works. When we acquire one hundred million dollars

(14:06):
worth of businesses. These are about ten tile companies nationally
in different markets with ten million dollar revenue each. So
you could imagine that there are two benefits to acquire
those title companies. First, they're profitable, they have great teams,
and second, it allows us to grow to one hundred

(14:29):
million dollar revenue faster than we do organically. And in
the tech world, with one hundred million dollar revenue, the
evaluation multiple is normally between seven to twenty x. That's
where a company reaches the unicorn status and is ready
to go public.

Speaker 2 (14:50):
Well, I think this is a strategy.

Speaker 1 (14:51):
It's been used, you know in Silicon Valley for a
long time in terms of buying up you know, doing
acqui hires as they call them in the valley. But
to your point, you're getting into revenue generating businesses which
only build the balance sheet for you guys, and then
you have the integration tools that obviously from the crypto
side of things that could really change on the backside

(15:12):
in terms of opportunities. So kudos to you guys in
terms of stable coins, you look at the expansion that
we've seen with just USDC, most likely we're going to
see other stable coins make their way in, maybe even
some bank stable coins. How do you think that is
going to play out? In use case for everyday real

(15:34):
estate agents, etc. To start utilizing stable coins more efficiently.

Speaker 3 (15:39):
The stable coin is the new rails for the new
generation banking system, for the new financial world. You could
imagine that instead of sending wires, we would transfer stable
coins when we're closing transactions for earnest money deposit for

(16:00):
the final payment. It allows us our smart contract enabled
platform to fully execute the whole transaction on chain. And
there are a number of emerging banks that are utilizing
stable coins. Some of them are partnering with coinbase. The
recent one that made a lot of noise in the

(16:23):
tech world is airbor So they want to use the
stable coin rails to rebuild the banks the way we
know it. For real estate, this is important because we
will avoid wirefraud, which is a huge risk in the industry.
But also it allows us to fully settle a transaction

(16:45):
on chain. What is a real estate transaction everywhere in
the world. It has the same pillars. There is a
purchase agreement or there are terms that will feature small contracts.
There is a payment, whether it's stable coin or bank,
it's better to be on the new cryptoil stable point.
And then finally, when conditions are met from this purchase agreement,

(17:07):
we have the settlement, and the settlement is dispersing the
funds in the end, So you could imagine stable coin
disperse to realtors, the seller and the lender and recuit
ownership simultaneously. Today. Ironically, some states first record the deed

(17:28):
and then they disperse the funds. Other states do it
in an opposite way. But in this tech world, it
should be instantaneously, it should be secure, immutable. That's what
we've built at prop and hopefully it will be the
new standard that is fraud prone industry to change forever.

(17:51):
So yeah, we're very satisfied with the current Genius Act
and Clarity Act about to be in acted to change
the way institutional players understand the blockchain innovation and then
be ready for this adoption, be ready where real estate

(18:12):
fully moves on chain. So stable coin also is being
used by our partners real estate developers because normally they
need to hold funds during the duration of their construction process,
and historically they've been holding those funds in their ESCRA

(18:36):
accounts that are in custody of banks and title companies
like ours, and they would yield anywhere between three point
five to four percent in the today's market. Stable coin
on Coinbase, who is our partner, so we act as
an ESCRO license company. Then Coinbase is our custodian, holding

(18:59):
the funds in our account instead of a bank, and
then it yields higher. So for a longer than one
here it's six point one percent, which is very appealing
to real estate developers that in the past month or
two I've received so many cold emails from real estate
developer owners to get on board with stable coins, to

(19:21):
accept bitcoin, even to do fractional ownership.

Speaker 1 (19:24):
Yeah, which is that's where I see some of the
growth opportunity. As we start to really kind of see
this play out with stable coins, there's going to be
so many opportunities in terms of vaults and stable coin yields,
all that playing in provided that the DC guys don't
get in there and mess this up, which is what
they're kind of going against right now. In terms of

(19:45):
fighting against the banks wanting to retain those yields. We're
going to be watching what's happening with you guys very closely,
So thank you so much for coming in today.

Speaker 2 (19:55):
We appreciate it.

Speaker 3 (19:55):
Nazalia, thank you, Paul, Thank you always for featuring our
or major news.

Speaker 2 (20:01):
You bet all right, you guys.

Speaker 1 (20:03):
Of course can catch more of this out there on
our Diamond Circle. It's our own private group that we
send out updates, insights to stuff that even we don't
cover here on the show. We leave a link down below.
You can catch it there, and of course follow me
out there on X at Paul Baron. We'll catch you
next time right here on The Paul Baron Show