Mike Majlak uses NFT to buy $4.1m LA mansion
Mike Majlak has officially bought his first home in Los Angeles, California, worth $4.1 million. Even better, he used his Bored Ape Yacht Club NFT as leverage to buy the house.
In April 2022, Majlak bought his Bored Ape for a whopping $700,000, a figure that stunned even avid NFT collector Logan Paul.
While the entire crypto market may be crashing at the time of writing, seeing the Bored Ape floor price drop dramatically, there is still some inherent value in the NFT, and Mike used that to his advantage.
Claiming to be the “first person to leverage an NFT to buy a house,” Majlak even gave a tour of his new place, and it’s just as impressive as you would imagine.
Majlak explained the process of using his BAYC NFT to help him buy the house, which involved putting it on a separate platform that then offered him a loan.
“The deal went like this,” he explained. “I would lock my Bored Ape NFT into Arcade’s [the name of the platform] protocol. They would then give me a loan of USD Coin against it, then convert that USDC into American dollars to help pay my downpayment on my mortgage.
“They were about to make the transfer when the unimaginable happened… Yeah, the crypto and NFT market sh*t the f**king bed, but because Apes are such a strong project, I was still able to make the loan happen. I was able to pull a $200k USDC loan against it, which was enough to scrape together the $1.2m downpayment to secure my mortgage.”
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He then showed a few of the highlights of the house, including a big pool in the garden, the huge open-plan living area, views of Los Angeles, and even a climate-controlled wine room.
While Majlak may be down a lot of money on his Bored Ape, he’s been able to use it to help buy an incredible LA mansion worth over $4m — so he definitely won’t be too worried about the investment.