Investor · Oakland CA & Las Vegas NV · Member since 2019 · 72 posts · 112 votes
Milo, a US-based lender is now offering bitcoin-backed mortgages with no downpayment, no credit requirement, no DTI, no bank statements, and 100% financing. This is the start of exciting disruption and innovation as the digital assets space matures and further melds with traditional and antiquated finance.
Stack sats, use them to fund real estate without sacrificing the appreciation, invest the gains from real estate to stack more sats, repeat.
Bitcoin is the most pristine collateral asset that exists today.
@Rob Kishi that's a very deceptive graphic. Either you know it is and choose to share it anyway, or you haven't spent enough reviewing the information yourself to understand how ridiculous your conclusion is.
Can someone explain to me how a "pristine" collateral asset collapses ~60% in 6 months?
Also folks, please read the fine print on "milo"
Homebuyers don't have full control of their asset. If they wish to sell their property, they'll have to pay off their loan in full — in US dollars — to Milo before the company releases a lien and transfers the bitcoin back. Plus, to qualify for the mortgage, a buyer must own a value of bitcoin equal to the total sale price of the home.
mmmm, I think I prefer government oversight of banks, clearly defined laws and regulations designed to protect citizens, and FDIC Insurance...even with all that, shady stuff still happens...without it, pure chaos and volatility
The blend of RE and crypto in lending is going to to be a major disrupter, eventually smart contracts are going to replace the need for escrow and transactions will move much quicker.
The Supply/Demand model of bitcoin does allow it to be an asset used to mitigate risk from a lenders perspective (via diversification).
I think institutional money will take many years to adopt this, but private money firms who adopt this are going to be setting themselves up for success.
Regarding the previous thread, I am personally not a fan of Milo as they require you to put both 100% of bitcoin balance AND the property you are buying as collateral.
You are better off just using a flash loan from AAVE for 25-30% of you BTC value, and using a Non QM loan to qualify.
Yes, you will pay more interest but you'll also reduce the amount of risk tremendously, worth the trade off.