Buying RE with Bitcoin

165 Replies

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

Originally posted by @Jerry Shen :

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

Originally posted by @Daria B. :
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

Most popular Crypto Currency.

Originally posted by @Daria B. :
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

Originally posted by @Jerry Shen :
Originally posted by @Daria B.:
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

Good luck explaining that to a seller and the Title Company. I completely understand, but most people are clueless as to what you are saying..  There are still people out there who only deal with cash, and are queasy about using credit or debit card to make purchases. 

Why not liquidate your investment in small chunks, and wait for market to adjust rather than in one lump sump of $1MM.  May require some patience, but trust me, this stuff is not easy for some people to follow... 

Originally posted by @Chinmay J. :
Originally posted by @Jerry Shen:
Originally posted by @Daria B.:
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

Good luck explaining that to a seller and the Title Company. I completely understand, but most people are clueless as to what you are saying..  There are still people out there who only deal with cash, and are queasy about using credit or debit card to make purchases. 

Why not liquidate your investment in small chunks, and wait for market to adjust rather than in one lump sump of $1MM.  May require some patience, but trust me, this stuff is not easy for some people to follow... 

My issue with that is I would have to liquidate before I would like to. A lot of deals fall through in due diligence and if I have to liquidate early I could lose out on significant gains. For example, even if I liquidated by bitcoin just a month ago, it would have lost 50% of its value.

I understand this is not easy, but this is the creative financing forum so trying to think creatively here =)

Originally posted by @Jerry Shen :
Originally posted by @Chinmay J.:
Originally posted by @Jerry Shen:
Originally posted by @Daria B.:
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

Good luck explaining that to a seller and the Title Company. I completely understand, but most people are clueless as to what you are saying..  There are still people out there who only deal with cash, and are queasy about using credit or debit card to make purchases. 

Why not liquidate your investment in small chunks, and wait for market to adjust rather than in one lump sump of $1MM.  May require some patience, but trust me, this stuff is not easy for some people to follow... 

My issue with that is I would have to liquidate before I would like to. A lot of deals fall through in due diligence and if I have to liquidate early I could lose out on significant gains. For example, even if I liquidated by bitcoin just a month ago, it would have lost 50% of its value.

I understand this is not easy, but this is the creative financing forum so trying to think creatively here =)

I'm afraid you are assuming that Bitcoins is not going to crash tomorrow, right? lol..  

I think you have no choice but to convert to cash yourself.....no one is going to take the risk/hassle of converting afterward. The sale of $1m is not nearly enough to interrupt the market, particularly over a couple of weeks.

Why can't you cash out your bitcoins and get the money into a bank account. You won't have any trouble from there.
Originally posted by @Brad Carrier :
Why can't you cash out your bitcoins and get the money into a bank account. You won't have any trouble from there.

 He already explained why he doesn't WANT to do it.. Its not the question of whether he CAN or not.. He knows he CAN. 

I agree that a sale of $1M is not enough to move the BTC market.

I also suggest that you cash it out and then buy properties once you're liquid.

@jerry shen bitcoin was recently used to buy a house in Austin, TX. Might be worth it to call up the brokerage and find out which title company facilitated the transaction. It does seem like the crypto market would still get rocked if the seller does do a mass conversion though... but, it’s probably a good time to move BTC, considering LTC is where it’s at! ;-)

https://www.google.com/amp/s/futurism.com/bitcoin-was-just-used-to-pay-for-a-new-home-in-texas/amp/

Originally posted by @Chinmay J. :
Originally posted by @Jerry Shen:
Originally posted by @Chinmay J.:
Originally posted by @Jerry Shen:
Originally posted by @Daria B.:
Originally posted by @Jerry Shen:

I've got some bitcoins that I would like to use to purchase real estate. Are there any institutions that will accept bitcoin as downpayment for a loan? 

 Admittedly I’m not up on the new craz...what is bitcoin?

It's a decentralized digital currency. Basically a way to transact and store value without any middlemen (banks, governments, etc). It's been on a tear this year (my initial investment grew 2000% in 8 months) so I'm looking to cash some of it out into RE but I would rather pay in bitcoin directly than cash out to dollars because cashing out large amounts of bitcoin can move the markets (if I sold $1M of bitcoin I would get a lot less because the entire market would see my sell order and it would drive the price down) than if I just used it directly in a transaction.

Good luck explaining that to a seller and the Title Company. I completely understand, but most people are clueless as to what you are saying..  There are still people out there who only deal with cash, and are queasy about using credit or debit card to make purchases. 

Why not liquidate your investment in small chunks, and wait for market to adjust rather than in one lump sump of $1MM.  May require some patience, but trust me, this stuff is not easy for some people to follow... 

My issue with that is I would have to liquidate before I would like to. A lot of deals fall through in due diligence and if I have to liquidate early I could lose out on significant gains. For example, even if I liquidated by bitcoin just a month ago, it would have lost 50% of its value.

I understand this is not easy, but this is the creative financing forum so trying to think creatively here =)

I'm afraid you are assuming that Bitcoins is not going to crash tomorrow, right? lol..  

 Correct, I'm bullish on bitcoin long term.

Originally posted by @Brad Carrier :
Why can't you cash out your bitcoins and get the money into a bank account. You won't have any trouble from there.

 Because from the time I liquidate to when I actually close on a property the value of that bitcoin could have gone up significantly. 

Originally posted by @Brian Garrett :

I agree that a sale of $1M is not enough to move the BTC market.

I also suggest that you cash it out and then buy properties once you're liquid.

True, but it could move the price on a single exchange.

Originally posted by @Jerry Shen :
Originally posted by @Brian Garrett:

I agree that a sale of $1M is not enough to move the BTC market.

I also suggest that you cash it out and then buy properties once you're liquid.

True, but it could move the price on a single exchange.

 That would be minimal and temporary.

@Jerry Shen I'm not sure what platform you use, but I know Coinbase sets sell limits, so for me, I couldn't liquidate my entire position in one fell swoop even if I wanted to. Once I reached the sell limit, I would have to wait a week before being allowed to sell again. Something to consider, if you haven't already. 

Points taken, the price movement is probably not as big of an issue as liquidating before I need to (at closing). I've bought 2 commercial properties so far and it took about a year from getting the liquidity to closing. In hindsight I wish I could have parked my capital somewhere besides cash in the interim, and I'd like to avoid making the same mistake twice.

@Jerry Shen the problem with Bitcoin is that it is not money. Not by government standards, so you cannot buy real estate with it. Cash out $100K every day for the next ten days to avoid moving the market. Cash out now that the craze is hitting main stream. Yes there may be some room to run up, but at some point smart money is going to sell. You don't want to be left with nothing. Real estate is a physical asset. If you can transfer your profits from Bitcoin to real estate, that is a great success story. Congratulations.

Congrats on the significant gains. No reason you can't sell the day before closing if you're bullish. Most people here are more conservative investors and would advise you just sell, but if you're set that the price will continue to rise, just sell a few days before closing.

Wired $ US funds only from US banks only and only.

There are specific websites that specialize in exchanging Bitcoin / Litecoin / Ethereum for Real Estate. [Easy to google]. Kudos on getting in early!...

Originally posted by @Charles Kennedy :

Congrats on the significant gains. No reason you can't sell the day before closing if you're bullish. Most people here are more conservative investors and would advise you just sell, but if you're set that the price will continue to rise, just sell a few days before closing.

If I could do that I would (sell day before close). But my understanding is banks need to see enough cash for a down payment when you begin the loan process. Would they take cash equivalents like bitcoin and stocks? That's part of my question.

Title companies are not going to accept Bitcoin as good funds at this time.  The only way I could see it happening is if you deal directly with the owner and they are willing to accept Bitcoin.  However, you would not be able to get title insurance

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