All Forum Posts by: Jonathan R.

Here is how cryptocurrency can change real estate. What if many investors can go in on a rental property with cryptocurrency and rather than have to sell the property to get your investment back you can sell your percentage stake for more cryptocurrency. There is no reason to formalize all the paperwork because the cryptocurrency uses a recorded ledger. 

 It’s competitive advantage is it was the first to market. It’s got the branding. It started it all. People believe if it fails it all fails. It was the first big fu to our worldwide broken financial system. It looks cool on a t-shirt.

It is slated to be a store of value in the industry, the digital gold with utility.

 Glad the conversation is getting more lively. I own gold and silver too. I long for the day I can play in more ponds. For now I have my toe in the Bitcoin water. I think it might be a mistake not to. Like I mentioned though, wait for a nice pullback, blood in the streets is ideal... and play around a bit. Now isn’t the time perhaps but an internet video or two is free. The market has already proved 19k, it can get there again (and I speculate fairly easily, pretty small market cap). I think you trade it for now and play around with small cash you don’t care about long term.

Will it perform like digital gold? That is the question. Someone mentioned in a previous post- what will happen to it when the economy pulls back? Will people be rushing into Bitcoin, or will they be selling their Bitcoin to have some cash? Or both. Physical gold is hard to beat when it comes to the level of security people feel when they own it during a crisis, at least for now.

For the record, I have a Coinbase account and have been in and out of crypto over the last couple years. Now is probably not the time to fomo (fear of missing out) into Bitcoin, wait for a pullback. There have been many pullbacks, there will be many more. Buying at year long highs right now is dumb. I like @Dave DeMarco approach of staggering in every few weeks, but right now the space seems more like trading than long term investing, at least with any meaningful amount of money. Right now if you have money in I’d ride it, when the next disaster is announced I’d take money off the table, when it stabilizes near what you think is a bottom get back in, if another disaster is announced sell and take a small loss, rinse and repeat. You have to keep your eye on the total market cap and compare that to news that is being announced in real time, it can be exhausting. It’s a very small asset class right now for any feeling of safety. It may get big or stay small for a long time... I for one can’t wait to see how the next financial crisis (which I think is coming fairly soon) impacts the Bitcoin/crypto market.

@Jay Hinrichs yes, you are supposed to pay taxes on gains, though it’s like the wild Wild West. How hard is it to determine where you are at when you sell one crypto and move into another, then sell that one and move into another and another. Coinbase (the major US crypto exchange) did send some kind of notice to me but I don’t think it was very specific. And I don’t know whether I’m up or down to be able to report properly... lol.

PS it does appear there is a trend that many are turning into what is called a Bitcoin maximalist, meaning Bitcoin is the big dog crypto and all or most of your investment in the space should be in Bitcoin. Though I do also like the platform crypto’s like Etherium, Stellar Lumens, etc. They allow other crypto currencies to build and launch on their platform (like Facebook in that businesses build their businesses on Facebook). You want to learn what you can about what you are buying, just like you would any other investment.

 Besides your comfort level and financial statement/ability to go big right out of the gate, I think it also depends on what you can find in the market. At the McCurdy auction in town before this most recent one they had three 12 unit complexes next to Newman University near Kellogg (three quadplexes per complex) and all three went for $450,000 plus a buyer’s premium. The tax appraisal was 1/3 of that. Unreal. That is $37,500 a unit before the buyer’s premium. You can find duplexes and single family homes on a per unit cost for that or less than that depending on area. Why go big when going small pays better? Perhaps large multi family will get less overheated here soon, but right now there is next to no inventory and it’s overpriced.

 Engelo,

You might consider pointing your turnkey company in the Wichita direction. We are one of the 7 most recession-proof cities in America. Shameless plug. :)

https://livability.com/topics/careers-opportunities/the-7-most-recession-proof-cities-in-the-us

@Derek Ackerman welcome to BP. It's not a good time to buy anything right now. It's hard to figure out what to do with money right now. Stocks are ridiculous, bonds are a hot potato that I don't want to own with little upside benefit. The blog from the real estate dingo that came out on the 4th of this month says it's not a bad time to sell some real estate and move some cash to a money market and wait for the recession to hit, but I don't even like that. I hate the dollar (can't put it to work fast enough); too much quantitative easing (money printing), rate cutting and deficit spending to even sit comfortably in a money market account for a potentially small return while waiting. I certainly like gold and silver, but I don't like to sell it and it needs to do some decent moving to cover the few bucks paid above spot to own the physical. I guess that's why I'm just continuing to buy real estate, perhaps the cleanest shirt in the dirty laundry (I figure if I hold long term it will come back around-or my kids can have it when Dad kicks the bucket). Best of luck.

 I’d probably check out the Fort Worth or Oklahoma City market, some place within a couple hours and buy single family homes for 40k if I were you, cash deals, no leverage till you’ve done many of them and are more comfortable. Utilize the 401k, perhaps unsecured loans from a credit union to help you get going.

And yes, find a smoking hot female real estate investor. It’s all about networking. :)

 I’d check out a dating website for a woman that owns an apartment complex, and then fall in love. :) 

Just keep grinding. It will take time. Don’t over leverage.

@Jimmy Dang Lawrence Dumont Stadium is getting completely rebuilt. It is supposed to change the walking flow of downtown to support the local bars and restaurants better. Hadn’t heard about the final four but the downtown area did great recently with the round of 32 when KU was in town (large outdoor themed bars/gaming environments). The  new companies we are getting are smaller in size, no big announcements recently that I’ve heard of. Several of the companies we have currently are solidifying their positions here, Cargill built a brand new building downtown and Fidelity Bank has a large building operation underway right now. WSU is making large investments to try to make us more marketable to tech companies.