Unlocking Real Estate Equity Using Crypto with Mike Waters
“They're always different ways of doing things that no one ever thought of. Sometimes they work very well, and sometimes they don't work at all.”
Mike is a Veteran CTO with 24 ++ Years of experience Energetic, motivated, and very creative in offering solutions. I have been an executive-level Business/IT Leader with vast amounts of practical experience and knowledge. Providing leadership and planning for IT & web development projects for small and medium-sized companies. Working on complex projects with multiple teams in multiple countries on a singular project. Working with pre-funding venture capital and fundraising.
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Brett:
I’m excited about our next guest for over 20 years, he’s been an executive-level business it leader with a vast amount of practical experience and knowledge, providing leadership and planning for it and web development projects for small and medium-sized companies working on complex projects with multiple teams and multiple countries on a singular project, working with pre-funding, venture capital, and fundraising, and so much more. But at the end of the day, he’s all about finding ways to unlock your capital or your crypto to purchase real estate please welcome to show with me, Mike Waters. Mike, how are you doing?
Mike:
Doing great.
Brett:
Glad to have you on the show. Where are you calling from today?
Mike:
Salt Lake City, Utah.
Brett:
For our listeners getting to know you for the first time, would you give us a little bit more about your story and your current focus?
Mike:
Well, I’ve been 20 years in the IT world. I’ve also been involved my whole life in real estate investing because I was been a high-paid IT Executive for a very long time, and one of the best tax shelters known out there is real estate. I’ve always had a love of real estate, and when I discovered cryptocurrency, that’s when the light went on, and I realized there was a real solution there to merge the two, and tax deferral is one of the great words I love to use when we talk about what I’m doing.
Brett:
I’m excited to dive into this conversation, your brother, we’re talking about all things unlocking real estate equity, using crypto, and or building your wealth with real estate and crypto. Mike, before we go too deep into the geeking out here, because I’m excited to do that, to have this conversation with you. I want you to help us to get helped me and our listeners get to know you a little bit better. I want you to picture it’s the high school days, maybe the university days, the earlier younger days. I believe we’ve all been given certain gifts in this life. Some people call them superpowers, some people call them strengths, and I believe these gifts have been given to us to be a blessing and help to others. I’m curious, what are those one or two gifts that you believe you were given? How does that help how you help and bless people today?
Mike:
Well, it’s interesting, because growing up, one of the things that I just always seemed to gravitate towards was not how do I get permission to do things, but finding ways that normally you couldn’t get permission to do something, but then doing it anyway, my whole that describes my high school career to a tee. I know you said I had to have it done this way. But if I do it this way, is it the same thing, and I get shut down more often than I would be allowed to. But I always gravitated to that, that process and thinking.
Brett:
That’s fantastic, and that’s I think that’s timely to understand that for this conversation. I may make sure I can at least encapsulate that. Basically, finding a way to do something better or different and not necessarily feeling like you have to ask for permission for it just going for is that a fair summary?
Mike:
Go for it and, doing it, everything. The thoughts I’ve come out with over the years are always unconventional. They’re always different ways of doing things that no one ever thought of. Sometimes they work very well, and sometimes they don’t work at all.
Brett:
Let’s dive right into unlocking real estate equity using crypto. Mike, what’s the number one secret to doing just that?
Mike:
Well, so real estate is a complicated issue because it’s it has a value that tends to start low and then over time go up and in fact Real Estates. The only investment that consistently always goes up over time. But crypto is this volatile, goes up, goes down, goes up goes down, and so the two of them merging was very, very difficult. Because I didn’t want someone’s house to be worth a million dollars one day $2 The next day, and $10 million. The next day, I wanted it to reflect real-world values. I knew I had to start with a stable coin and work from there because a stable coin wouldn’t work either. Because a stable coin would just be worth $1 and a home value goes up. that’s the basis of where we were starting
Brett:
Let me make sure I understand that. First of all, it’s the kind of the worldview of both the performance of both investment classes of one being in real estate, generally speaking consistently goes up. The other one is a cryptocurrency, which is extremely volatile, highs and lows, very high highs and some really low lows, and basically merging those two together, and but the foundation of that is starting with a stable coin, or maybe one that’s a little more consistent. Is that a fair summary?
Mike:
Yes, absolutely.
Brett:
Then we’re step number two.
Mike:
Well, step number two is, what we did was we went from a stable coin. Then after you have the stable coin, we merged it into a token per property. What we do is in our system, we create a token per property, and then we attach that per property token to the value of the property. We have what’s now called a stable plus token. If you buy say equity in a house, that’s worth a million dollars, and let’s say you bought all $1 million on those tokens, and then the house next year was worth 1,100,000 all your tokens are worth $1.10 apiece based on the value climb of that house.
Brett:
Let me see if I got that. Say you’re merging the stable coin into a token or coins? I don’t know if it’s plural or one and per property, and I guess instead of it being a USD it’s owned in, in coins perhaps I don’t know if I’m correct. Correct me if I’m wrong, am I following so far?
Mike:
Yes.
Brett:
Cool. Where’s the USD going?
Mike:
The USD got traded for my coin. Got it?
Brett:
You exchange that and so it’s and and and as a seller, I sold with Bitcoin, whatever kind of coin.
Mike:
You could have bought USD you could have taken, whatever, Dogecoin or whatever, and traded it for USDC, which is the stable coin. Then you go in and you buy my coins, and then that enables you to buy coins into any piece of equity. If you could spend, say, $100, you can take $100 and buy $50 in a property in California, and $50 in a property in Arizona?
Brett:
Well, I kind of instantaneous because you’re basically getting little mini shares in each property. That’s very cool. What’s step number three.
Mike:
Step number three is at that point, the person that has the house that they’ve sold the equity in, they get the USDC, and then they go off and do what they want with the USDC. If you had to tokenize your million dollar property for a million quest coins, and then people had bought them and traded the USDC for it, you now have a million USDC coins in your pocket.
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