Fabrica Technical Briefing

About Fabrica

Fabrica offers simple, online real estate transactions. Technical briefing by Federico Pomi & Daniel Rollingher.

Overview of briefing

00 – 1:00

Federico opens by explaining that Fabrica makes real estate programmables and the difficulties of buying and selling real estate. Its still managed through paperwork and it takes forever. Fabrica turns real estate properties into digital assets NFTs. 

1:00 – 1:37

Federico goes into how Fabrica turns these real estate properties into digital assets. They first create a Trust and mind a Digital Asset (NFT) for each property added to Fabrica. Second, the Title of the property is granted to the Trust. Third, the possession of the Digital Asset establishes control of the Trust. You can then operate that property on a token – you can trade it, borrow against it, sell it, collateralize it, fractionalize it, etc. 

1:37 – 3:11 

Federico begins the live demonstration. He explains that their first version of the product is serving land customers – people buying and selling plots of land in the United States. He is going to show us how easy it is to perform a transaction. He begins by showing us a list of properties for sale. When he clicks into the property page, it shows you the coordinates of the property, the boundaries, the legal description, the legal documents and the transaction history. 

3:11 – 4:20

When he clicks to buy a property, it shows you the checkout process. There is information about the seller. It explains how purchasing this property works including the fact that they are buying directly from the seller, the property is held in a trust, the piece is final will all fees included and the property taxes. It then goes into payment where you can buy it in full or with financing. Once you choose the payment option, you are then prompted to link your bank account through Plaid to complete the transaction. There is a final review page for the buyer to see the transfer agreement, nominate a successor for the trust and e-sign. 

4:20 – 5:00 

Federico explains what is happening under the hood after the buyer has completed the transaction. The transaction agreement is being signed, the money is being moved from the buyer to the seller and the NFT token which represents the ownership of the property is being transferred from the seller to the buyer. He points out that this real estate transaction took three minutes and it could have actually been done faster. 

5:00  – 6:49

Federico transitions to explain things from the NFT side of things. He opens up OpenSea which is an NFT marketplace. You can then see the transaction and all of your properties on OpenSea. You can inspect your transactions including the value or unit price, the date purchased, etc. He clicks on a property and shows how the information and documents are the same on both the OpenSea platform and on the Fabrica platform. 

6:49 – 7:45

Federico clicks on the Formation Document. He explains that this is stored on IPFS. The Formation Documents is the legal document or trust instrument that holds the title. It explains that whoever holds the token that is on the blockchain, that is the person who controls and owns the underlying asset. He explains its like owning a property directly where the trust is the passthrough element that connects ownership to the token.

7:45 – 8:31

Federico then pulls up the Deed Document which is the document that was set up the moment that the property was initially bought. The deed is the proof that that trust is up and running in the county for the property. You see that the deed tracks the token as well. 

8:31 – 9:20

Federico transitions back to Frabrica’s platform to the transaction history for this property. He clicks in to inspect one of the transactions for the property. It shows all of the properties that have been tokenized thus far. You can see all the transfers and the previous holders for each of those properties.

9:20 – 10:20

Federico explains why this is so important and where we go from here. We help people close a transfer from a seller to a buyer, but what you can do with as NFT is tap into other NFT projects. You can sell it, you can use as collateral, borrow against it, and you can refinance mortgages in a matter of seconds with it on the blockchain. You can create fractional ownership of this token. You can use them to earn interest on the property you already own. These are just a few of the creative use cases we will continue to see. 

10:20 – Fin

Fabrica is currently operating in four states – California, Colorado, New Mexico, and one other. In state they need to be licensed to tokenize the property and they need to fine tune the  legalize methods for the properties. The goal is to expand abroad. They want their customers to be able to tap into properties worldwide and tokenize those properties from anywhere.