All Forum Posts by: Matt R.

60 day seasoning of cash in the bank seems the safest route at the moment. Even though it is fairly straight forward to demonstrate custody through Coinbase now. It also brings a sense of legitimatcy now that they are public.

There are several doing the loans. Check a few perhaps. Nexo is one. No seasoning required. Good luck.

1 Vote

Originally posted by @Jay Hinrichs:

Originally posted by @Doug Spence:

Two different ALE reps have contacted me in the last couple of days through my Zillow ad interested in my property. One family has 5 dogs and a cat and wants a 3 month min lease, and the other wants a min 6 month lease. I checked airbnb and vrbo and there are very limited options there for such long leases over the summer in Pensacola.

Has anyone had success negotiating a premium that is comparable to the local rate for airbnb's/vrbo?

we have done 3 with Ale.. 2 in Indianpolis area that were C class homes were they paid double rent for 3 to 6 months and houses were OK when they left I have a fully furnished town home in Vegas were I am getting more than double rent started at 4 months is now going on 9 months .. Will see condition when they leave.. although the house is all tile floors and furniture is not high end or anything. But kitchen is new with high end appliances.

Nice. In metros perhaps there is always enough water damage, mold outs, fire damage etc to leave a limited supply of these props. It might be one of the better games in town. Its guaranteed by the insurance so if they mess it up you might get a free update. But typically these are already home owners so it may be a better than average tenant base as far thrashing the property.

These might extend longer as most are waiting on contractors to complete their real home repairs and we know how that goes sometimes.

Of course Jay is already inside this semi secret.

1 Vote

Originally posted by @Andres Vanegas:

@Taylor L. - yep that is the plan! In my initial property purchases I have had to source where the down payment funds have come from. Since it would be coming from a crypto exchange (Gemini, Coinbase, Kraken) - services which may not be typical for a traditional bank, I was hoping to catch someone that had had some experience doing so and see if there were actual issues or not. I hope that makes sense.

One option might be is to take a loan out it to skip the tax hit. You can get upto 50% or so. Good luck!

2 Votes

Originally posted by @Scott Farey:

This is my first post, I have been looking for a duplex for a couple years. I’m a bartender that was closing on a duplex last year when COVID hit and lost my loan. I have been thinking about just buying all in cash my issue is most my money is tied in with crypto (200k) banks won’t loan me out on my crypto.. any other routes I could take?

You can get a collateral loan on it. Maybe around 50% or so I think. Not with a bank but with one of the top btc collateral lenders.

Good luck!

0 Votes

Originally posted by @Tucker Cummings:

I'm still not entirely convinced about Crypto/Bitcoin, but the growing popularity certainly has me interested in another asset class outside stocks and real estate.

I'm looking for good education material (podcasts, youtube channels, books, etc) that I might be able to do some research and learn more about the asset with. Anybody have good recommendations? Anybody invested in it that wants to share their experience?

A couple youtube channels I have found useful:

Dave Levine

Benjamin Cowen

Adam Meister

Mitch Ray ( trading analysis )

It is quite the large endless rabbit hole still and I left out the rich dad, mark cuban and kevin oleary TV types but they are down for the btc too now.

Good luck with your search!

2 Votes

Originally posted by @Joe Villeneuve:

Originally posted by @Matt R.:

Originally posted by @Joe Villeneuve:

Originally posted by @Kevin H.:

@Joe Villeneuve

Hi Joe, I’m not part of any affiliate group, nor am I shilling specific cryptos as Bitcoin is way to main stream for me to move the needle. I will give you numbers though and pardon me if my math is wrong, as it should be close though if it is. First off you’re right blockfi isn’t fdic backed, I feel like the risk is worth it as I have done my own research and am comfortable with the risk. Let’s go into my scenario. I invested into btc in may of 2020, we’ll say after I bought, I put it into blockfi and haven’t sold. This is what my returns are:

Blockfi pays a 6% APY, monthly payout that is able to be compounded and my interest is paid out in BTC:

May 1st 2020 - purchase price: 1 BTC = $87771.57

June 1st 2020 - BTC price $9564.95: 1.005 BTC, .BTC interest = $47.82 and my total holdings = $9612.77

July 1st 2020 - BTC price $9153.95: 1.01 BTC, BTC interest = 45.77 and my total holdings = $9245.72

Aug 1st - BTC = $11354.16: 1.015 BTC, BTC interest = $56.77 and total holdings = 11582.95

Sept 1st - BTC = $11964.21: 1.02 BTC, BTC interest = $59.82 and total holdings = $12205.29

Oct 1st - BTC = $10626.6: 1.025 BTC, BTC interest = 53.13 and holdings = $10894.93

Nov 1st - BTC = 13662.97: 1.03 BTC, BTC interest = $68.81 and holdings = $14181.05

Dec 1st - BTC = $29391.78: 1.035 BTC, BTC interest = $146.96 and holdings = $30436.05

Jan 1st - BTC = $33543.77: 1.04 BTC, btc interest = $167.72 and holdings = $34909.24

Feb 1st - Btc = $45159.5: 1.045 btc, btc interest = $225.8 and holdings = $47232.8

Interest alone I’ve made $872.6 for 10 months, I accumulated.045 more btc which is now worth $2032.18 and my initial investment is up 438%. Again I’m not saying I am done with rei, I just feel at the moment if I $100k today and was looking to invest it, real estate has too many risk and is less attractive (excessive government printing, unemployment, high housing prices, eviction moratorium’s, etc) I personally feel it would be hard for me to yield a nice return on my money and don’t want to deal with the headaches. As stated, I can put that 100k and earn 8.6% compounded yield and can borrow on it. Yes I miss out on the appreciation of the home and tax benefits, but at the moment bitcoins roi is way better than what real estate could do for me.

OK, first, REI has far less risk than this...mainly because you have enough control to be able to input risk controls with REI, but with this you don't.

OK second, and this is going to be fun. Take the same $10k you invested here and multiply it by 10 to equal that $100k starting point. Now multiply your interest return by that same 10 then extrapolate it out to cover a full 12 months, and you would get a projected interest return of around $10k. That would be the same type of return as cash flow from REI.

You would end up after 1 full year of (if I'm reading this correctly) of about $45k in value, starting from $10k...or $450k starting from $100k.

OK. Now, I can take that same $100k, and by RE at 20cents on the dollar (20% down), which means my PV starts out $500k, and my CF would be around $6k/$100k DP per year....that's starting our at $30k/year in CF. So, if after 1 year my REI appreciated only 5% in value, my holdings would be worth $525k..which is an increase of $25K.

Let's compare: Both starting at $100k in cash.

.     Coins    REI
Cash at start    $100k $100k
STarting Value of Investment $100k $500k
Cash Flow/Interest 1st year    $ 10K $25k
Note: this means it takes 10 years to recover your cost, but I can do it in 4, so from year 5 - 10 (6 yrs) my CF is pure profit equal to $150k, but you haven't actually made a profit yet since you're still recovering your cash/cost until year 10.
Apprec/increase value 1 yr $472k $525k
...and after that, with the reinvestment of the cash income, REI leaves BC in the dust.

Joe you do realize btc has returned over 80,000% over the last 7 years?

To one person?

To more than one person. The entire btc asset is at 80k% appreciation last 7 years. There is an immutable record of those exact numbers of individual wallets on the btc ledger. Many are public and most remain anonymous. It is in the 1000s. If you are beating btc with rentals that is quite the accomplishment. Hats off!