Can bitcoin be utilized in real estate?

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

I'm just wondering if there's a way that bitcoin could ever be utilized in real estate?

Maybe accepting rent payments in bitcoin?

Selling a property with bitcoin?

While I've never done anything with that currency, I know someone who started investing when they were $ 77 and now they're $ 1,000

What do you think?

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John Rooster

Denver, CO · Member since 2013 · 409 posts · 105 votes

12y

You know a bubble has reached its peak when...

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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
I think I made it too complicated. I will keep my first premise, that this real estate transaction is attorney (or title company) closed. The attorney can do all the deed prep work, search title, etc. In the simplest form, the buyer and seller do just as @J Martin says. They get together at the closing table, agree to use an exchange (e.g. coinbase vs. BTC-e...) and do the BTC transaction right there (in front of the attorney/closer) at deed signing, leaving the recording to the buyer to do at their convenience after closing.

Your rent example is similar to what I described (or tried to describe) earlier, and there my be exchange risk. $1K USD in BTC is a lot different IMO than $100K USD in BTC. Example: tenant pays rent yesterday at, say 8:30PM, at 531/USD and as you awaken, you realize the tenant paid at the then current exchange rate. Your converted $700 USD rent payment is now worth $834 USD because of the now current 633/USD exchange.
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Account Closed
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
Using escrow and title for a bitcoin real estate transaction is still a sticking point for me. A US title/escrow company would require a USD cash deposit into escrow. They will disperse USD. And they will keep their fees in USD. They will report the sale to the IRS in USD. They would remove themselves completely from the exchange rate issue.

You can sell RE and use a bitcoin escrow service. And perhaps buy title insurance separately. Maybe in states where attorneys do typically do escrow and title you could build in the exchange issue. But not in a standard CA RE escrow.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
12y
one more article on Bitcoin:

http://moneymorning.com/2013/12/20/bitcoins-five-big-advantages-gold/
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J. MartinPro Member
Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
12y
@David Krulac , the points he makes in this article are the main thesis behind owning it, especially the finite supply and distributed (decentralized) nature of it, among other reasons. But the very first heading at the top stating that it is the only investment with cryptography is incorrect. There are many, including several others of which I personally own.. LiteCoin, PeerCoin, FeatherCoin.. etc etc

And it's true that there is much more liquidity than gold as far as converting it quickly. But the BTC market fluctuates a lot more because it has nowhere near the depth or history of the gold buying market. Just like it does not have the depth or history of the stock market.. Any big players jumping in could cause big swings up or down..

@K.

@Account Closed , I think you are both right that the escrow would be difficult or impossible right now until a trust-worthy bitcoin escrow shop opens up because there is demand for it.. We might be years off still, but early creators of bitcoin exchanges made a killing as the movement developed. I think we're still closer to the "bleeding" edge than the leading edge on the BTC topic, and there might be a lot of money to make in the BTC industry (and a lot to lose!) before we hear the last of it..
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Pete T.
Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
12y
I would avoid it all together. Do you really want to put that much trust in something like bitcoins and risk them being unusable? Also, the issues mentioned above. I have a hard enough time keeping faith in accepting our dollar.
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Account Closed
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
You have no recourse against Bitcoin because they operate in another country and one in northern California that operate out of apartment. I think it is a Ponzi scheme. Have anyone who bought ever visit their office or talk to them in person?

Joe Gore

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Daniel Kowal
Eastern NC, NC · Member since 2013 · 34 posts · 5 votes
12y
I did not read all six pages I am sorry, but I have been around Bitcoin since early 2012. I know for a fact bitcoin works with real estate and has funded at least 3 deals on the public bitcoin forums.

https://bitcointalk.org/index.php?topic=215230.0

https://www.havelockinvestments.com/fund.php?symbol=RENT

Think they have raised over 180k in under a year from bitcoin investors.

If you have any questions about bitcoin feel free to message me, or ask here.
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John Rooster
Denver, CO · Member since 2013 · 409 posts · 105 votes
12y
Originally posted by @Daniel Kowal:
I did not read all six pages I am sorry, but I have been around Bitcoin since early 2012. I know for a fact bitcoin works with real estate and has funded at least 3 deals on the public bitcoin forums.

Unless you can provide property addresses and Title/closing company names it didn't happen.
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Daniel Kowal
Eastern NC, NC · Member since 2013 · 34 posts · 5 votes
12y
Give me a couple of minutes Ill dig it all up for you, I went after the guy for the same thing thought he was a "con" but after I used my wholesale tracking skills I was happy with what I found. The guy uses bitcoin to fund a overseas business that invest into the USA market under a LLC. Legality of it I do not know...

Business LLC

http://www2.sos.state.oh.us/pls/bsqry/f?p=100:7:0::NO:7:P7_CHARTER_NUM:1383929

http://pickaway.iviewauditor.com/Data.aspx?ParcelID=A0530660001500

129 mill street, Centerville ohio
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Daniel Kowal
Eastern NC, NC · Member since 2013 · 34 posts · 5 votes
12y
He does have one under his exact business llc I just can not find it, I had it written down.

https://www.facebook.com/MidOhioRentals

http://www.midohiorentalhomes.com/

His Business plan notice the phone numbers match.

https://dl.dropboxusercontent.com/u/9427554/Public%20release%20for%20RentalStarter.pdf
1 Reply
Account Closed
Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
12y
I prefer shrute bucks
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Daniel Kowal
Eastern NC, NC · Member since 2013 · 34 posts · 5 votes
12y
If you can get them to work for you go for gold lol
0 Reply
Alison Michel
Real Estate Investor · Silver Spring, MD · Member since 2014 · 62 posts · 6 votes
12y
Or now do you say, go for bitcoin?
0 Reply
Matt Schelberg
Rental Property Investor · Baltimore, MD · Member since 2013 · 281 posts · 257 votes
12y
So the bitcoin bulls have kept this thread alive even with the events of the past 30 days? Wow, that is true faith! I'm going to even things out with some words of caution from "Margin of Safety" author Seth Klarman.

"Only in a bull market could an online “currency” dubbed bitcoin surge 100-fold in one year, as it did in 2013. The phenomenon spurred The Wall Street Journal to call it a “cryptocurrency” craze, with dozens of entrants. Bitcoin now has an estimated market “value” in excess of $6 billion, leaving alphacoin, fastcoin, gridcoin, peercoin, and Zeuscoin in its wake. Now most sell-side firms are rushing to provide research on this latest fad, while “bitcoin funds” are being formed. Recent recruitment e-mails to staff such a platform reassure that even though experience is preferred, it is not required."

http://www.zerohedge.com/news/2014-03-08/seth-klarman-born-bulls-bitcoin-truman-show-market
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Steven Gesis
Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
10y
Originally posted by @Michaela G.:

I'm just wondering if there's a way that bitcoin could ever be utilized in real estate?
Maybe accepting rent payments in bitcoin?
Selling a property with bitcoin?
While I've never done anything with that currency, I know someone who started investing when they were $ 77 and now they're $ 1,000
What do you think?
Michaela, I see this is an older post, but I thought it was time to wake it up from its dormant state. Yes, you can use bitcoin for real estate, you simply need ot operate through an intermediary - We are now accepting bitcoins for acquisitions from global & domestic clients. Very cool stuff!
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Steven Gesis
Investor · Miami, FL · Member since 2015 · 1k+ posts · 390 votes
10y
Originally posted by @Matt Schelberg:

So the bitcoin bulls have kept this thread alive even with the events of the past 30 days? Wow, that is true faith! I'm going to even things out with some words of caution from "Margin of Safety" author Seth Klarman.
"Only in a bull market could an online “currency” dubbed bitcoin surge 100-fold in one year, as it did in 2013. The phenomenon spurred The Wall Street Journal to call it a “cryptocurrency” craze, with dozens of entrants. Bitcoin now has an estimated market “value” in excess of $6 billion, leaving alphacoin, fastcoin, gridcoin, peercoin, and Zeuscoin in its wake. Now most sell-side firms are rushing to provide research on this latest fad, while “bitcoin funds” are being formed. Recent recruitment e-mails to staff such a platform reassure that even though experience is preferred, it is not required."
http://www.zerohedge.com/news/2014-03-08/seth-klarman-born-bulls-bitcoin-truman-show-market
Matt, I wanted to chime in (2) years later, yes, we saw some funny stuff happen with bitcoin instability, now the currency is much more stable and rationale for lack of a better term, we are now accepting BitCoin at our company for Real Estate investing! Wow thats cool and modern, welcome FREE globalization! :)
1 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
10y
The Mt Gox debacle took a lot of steam out of bitcoin. The exchange closed on 2/24/2014 so ironically Joe's post was the last one prior to the collapse of the largest bitcoin exchange. Problems were visible before 2/24/14, and interest in btc as a 'currency' for real estate activities (like paying rent) has fallen in the past few years, probably because of Mt Gox and maybe Silk Road.
1 Reply
Ed LeGrand
Investment Property Specialist · Santa Clara, CA · Member since 2015 · 90 posts · 16 votes
9y
RealEst. Coin allows you to invest in U.S. commercial real estate with Bitcoin.
1 Reply
Mike Jordan
Real Estate Investor · Prosper, TX · Member since 2016 · 17 posts · 4 votes
9y
Hello team. What if we were to look at the Bitcoin in a different light. What if there were a vehicle utilizing Bitcoin and it's growth as a source of funds to enable a person to invest in real estate (or even a non-real estate cause for that matter)?
A friend of mine introduced me to a CROWDFUNDING PLATFORM where you can spend 0.10 of a Bitcoin (around $150 one time depending on what Bitcoin is selling for) and ACCUMULATE BITCOIN on a MONTHLY basis!
Here is a look at historical bitcoin growth: http://www.coindesk.com/price/
If you don't know much about Bitcoin, here is some great information about Bitcoin and the funding platform. As mentioned in one of the previous posts the bitcoin proceeds go into your personal wallet to be used as you see fit. Why not another revenue stream???
http://teamallbitcoin.com/ You can reply to this post with your feedback or PM me. Regards

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Amy Wan
Attorney · Los Angeles, CA · Member since 2016 · 284 posts · 314 votes
9y
The problem with all this isn't the tech itself. It's that there's still a whole regulatory framework around usage of cryptocurrency, for which compliance is costly, so the real question is--once you factor in cost of compliance, is it still worth it? The tech is fancy-smancy and "nice to have", but the value proposal has to take all this into account.
I keep seeing folks now who want to apply ICOs (initial coin offerings) to real estate--which is fine, except that you're still selling a security. The coin is merely a digital stock certificate, if you will.
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Account Closed
Professional · Brooklyn, NY · Member since 2017 · 624 posts · 147 votes
9y
Originally posted by @Michaela G.:
I'm just wondering if there's a way that bitcoin could ever be utilized in real estate?
Maybe accepting rent payments in bitcoin?
Selling a property with bitcoin?...
You just have to understand the risk involved. Bitcoin has similar characteristics to a stock in that the value can increase or decrease almost daily. If you were selling a property, and got paid in stock, the value of the proceeds could increase or decrease in either direction. With bitcoin, the 'currency risk' can affect your net earnings based on when you wanted to access the funds.
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Matt Snow
Rental Property Investor · Santa Cruz, CA · Member since 2016 · 39 posts · 25 votes
8y
Originally posted by @Michaela G.:

Would this be a way to sell properties to foreign investors, who might have some difficulties getting funds out of their countries? I understand that that is a reason why so many properties are being sold to Chinese with cash these days.
Germany has given bitcoin legitimacy
Cryptocurrency is a great way to sell properties to foreign investors. When combining it with a smart contract, it can actually be really easy too. I just sold a vacant lot to a guy in Norway through BitBay's smart contracts, and the whole process only took a couple of days.
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Matt Snow
Rental Property Investor · Santa Cruz, CA · Member since 2016 · 39 posts · 25 votes
8y
If you look into the limitations of bitcoin, you will quickly see that it's best designed as a store of value, and not an everyday currency. This makes it great for purchasing other cryptocurrencies (altcoins) and nothing else.
For a stable cryptocurrency, I would recommend something like BitBay markets (BAY). They have a platform where you can create trustless smart contracts, that's seemlessly integrated with their own currency. Their cryptocurrency (BAY) has "dynamic peg", so it's not as volatile as bitcoin. You can use their templates to custom design a contract any way you wish, and use any currency you want. I just sold a vacant lot to an international buyer using this method. Definitely worth checking out.
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Engelo RumoraBusiness Member
Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
8y
I would sit tight on this anything crypto right now.
It will explode (In a bad way)
Just like during the Dotcom bust. There where a few survivors with the likes of Amazon and Ebay.
Wait it out and let's see who the winners of the crypto bust will be
Bitcoin or whoever else.
Just my opinion.
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Antoine Martel
Rental Property Investor · Miami, FL · Member since 2017 · 2k+ posts · 911 votes
8y
Originally posted by @Matt Snow:

Originally posted by @Michaela G.:
Would this be a way to sell properties to foreign investors, who might have some difficulties getting funds out of their countries? I understand that that is a reason why so many properties are being sold to Chinese with cash these days.
Germany has given bitcoin legitimacy
Cryptocurrency is a great way to sell properties to foreign investors. When combining it with a smart contract, it can actually be really easy too. I just sold a vacant lot to a guy in Norway through BitBay's smart contracts, and the whole process only took a couple of days.
You're right the smart contracts make everything work.
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