All Forum Posts by: Jerry Shen

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.

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

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

 Correct, I'm bullish on bitcoin long term.

@Ian Tvardovskaya makes sense so buy based on cap rate? What do most cashflow investors target in terms of cap rate?

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 work with some large property management companies on the front range and I asked them about this recently. They all say most of the smart money is staying on the sidelines waiting for a correction. One large PM company in Denver hired a VP of acquisitions and he hasn't bought anything in 2 years. These companies serve some of the largest individual investors in the front range so I'm inclined to agree. I bought a property in the Springs this year and I'd love to own in Denver but I'm personally waiting for a correction. A lot of signs are pointing that way including flattening rents and increasing vacancies.

I've heard of 1% rule for buying rental properties (1% of purchase price in monthly rental income). Does that apply all the way up to large multifamily as well?

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.

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?