Would you sell a house for Gold or Bitcoin and how?

Question

Looking for some constructive investment community discourse as I've had a few clients reach out recently about settling transactions in 'alternative' currencies or trading for real property.

This is not intended to be a discussion about the options for investment, rather how to conduct real estate settlements in non fiat currency.

It is (or should be) evident by now that the status of the USD as the world's reserve currency (or at least our exorbitant privilege) will continue to be marginalized in the coming years (and decades) and that investors are factoring in elevated risks of currency inflation and debasement into and onto their portfolios.

Does anyone actually believe the reported inflation rate or that US denominated debts (worldwide) will ever be repaid?

The harsh reality is that deficit spending to meet interest obligations will accelerate, further reducing the purchasing power of existing USD in circulation and USD savings. In short, the best savers and investors will lose most.

With that said, are there any investors or real estate professionals that would or have settled real estate transactions in alternative assets such as Bitcoin or Gold?

And if so, how did/would you coordinate the transaction?

My understanding is that the the mechanics of the transaction would occur much like a conventional transaction with a third party title company. The primary challenges would be about the safety of settlement transfer for a physical currency transfer (like gold) and the specificity of timing and valuation of transfer in digital assets.

Robin Simon · Answer

I am a believer in Bitcoin for sure - but this is an unnecessary gimmick - Bitcoin (and gold) is very liquid at this point so there is no real reason to make sure the actual transaction is denominated in bitcoin or gold instead of just converting it for the sale. There would still be the transaction (tax) effects if using it to purchase the property

A non-gimmick situation however would be borrowing against your BTC in dollars so that you don't have to sell anything and see the tax/transaction effects. There are a few companies offering this

A non-gimmick situation however would be borrowing against your BTC in dollars so that you don't have to sell anything and see the tax/transaction effects.  There are a few companies offering this

Jason Park · Answer

Hey AJ,

I think maybe you and/or your clients are a bit early. Most of the transactions between gold and/or BTC is converted from USD or converted from USD to purchase; therefore it makes it a bit difficult. Also with the volatility of BTC I wonder how feasible it may be to transact 100% in BTC at a current state. Also, as Account Closed mentioned, Gold can be very slow moving and transferring can be a bit a job all in its own.

My personal opinion is that having savings in hard assets such as Gold, Silver, and BTC may be a good idea but I have not heard of any companies that would do that transaction.

I would assume they would have to be a third party escrow company that holds the USD convert it Into BTC or gold and transfer back into the sellers account? But then again BTC being a high vol asset, what does that look like if it goes up/down 20% when its time to convert?

Fascinating thought, hope this helps!

Andrew Postell · Answer

@AJ Wong this is way simpler than you are thinking.  If I wanted to sell my home for a feather....could I do it?  Yes, 100%.  You can buy or sell properties for any commodity...and you can certainly transfer title without commodities too.  If the buyer and sell agree to the terms then a contract can be provided that can accommodate their wishes. All the "title company" is in any of these real estate transactions is a third part that obeys the legal, binding contract that the two parties have setup.  The transaction is not "funded" until the exchange of the assets have taken place. Meaning, the ownership does not convey until it's "funded".  So, the real question is where do you find a title company or attorney's office that can accommodate such a closing?  And yes, they do exist.

This forum is mostly for financing...this is more of a legal scenario really.  And that's fine that you posted here.  If you do have clients that fall in this world then just find a title company that can provide the assistance here.  You can ask this type of a scenario question in some of the real estate facebook groups in your state.  And keep it simple...just ask "who knows of a title company that can help buy/sell with bitcoin" - and that's it.

Hope all of that makes sense.

Would you sell a house for Gold or Bitcoin and how?

Most Popular Reply