There is an extremely lucrative real estate trick that you can do very similar to the one mentioned above. Anyone who wants to make a killing can do this although its not entirely fair to buyers and sellers. Its called "double escrow" not to be confused with double deposit. Basically, in real estate you offer a listing an exclusive option in exchange for a dollar or whatever they accept. The option agreement might give you a few months to decide to execute. Then you secure an escrow company to find a cash buyer. You underbid on the house you optioned (like a 1 million dollar house you offer 900,000). THEN you find a the cash buyer who wants a 1 mil house for 950!

Next part is easy, you set up two escrows and pocket the difference. This amazingly is legal! It doesnt even need to be disclosed in some states which is totally ridiculous since most RE transactions require disclosing things as ridiculous as a ghost being on the property! (like how could you prove that)... Anyways, the difference in net is zero risk for the person securing the escrows. They make 50,000 on a deal they were never involved in. Double escrow was one of the many reasons for the real estate crash because of inflated prices and the ease of the deal.

Now consider that there is another deal much more effective since it eliminates you completely and you operate 100% as a silent middle man. You do the same, underbid on a million dollar house at 900,000 but maybe do it to 100 houses getting the options as cheap as possible. Then you shop the underbid portfolio to buyers and their real estate agents. This is called "find and assign". The find and assign technique is just literally options and selling the actual piece of paper since you add a clause in the contract to make the option assignable. Now you are an invisible middle man who can net anywhere from 1-50 thousand dollars per assignment depending on how awesome you got the bid. (Imagine if you bid on a hotel or a bulk amount of land, the assignment becomes extremely valuable if the bid was good).


These are examples sidhujag just like you mentioned above. Good business models but totally contrary to a realtors fiduciary responsibility. Find and assign is more ethical than double escrow since the lack of disclosure is a little unfair to the parties involved. As a realtor, I am forced to disclose double escrow here in california but in some states i think its still okay. In fact, these deals not having a license is better than having it since there is absolutely no fiduciary responsibility. Knowledge of the law actually hinders you.

Traditional real estate is totally corrupt. Especially zoning laws which have basically zoned off grid living out of existence and is a direct infringement on the freedom of mankind.

Anyways, sidhujag you are actually correct in your assessment that people will take a very long time to warm up to smart contracts since it requires them to think differently about everything they do. Also it moves consumers from a "trust" society to a "trustless" one. Of course its superior, but it takes time for people to adjust. I hope they wake up sooner than later. Hopefully one day people will decide they have had enough of middle men jacking up prices of everything.