Topic: Real Estate Investments in Bitcoin (Read 2067 times)

https://a.radikal.ru/a08/1806/54/94c95868b076.png

not yet but if you find info about it please let me know!

I heard from a non-bitcoiner about a time-share business based on Bitcoin. Has anyone heard about this?

Another problem with the exchange is lack of investor info. But I think I can fix that with a different system.

The deed would not be in my name, It be under a LLC. name of some sort and all property would be deeded under that.

You seem possibly to be implying that Mircea Popescu's Options Emporium is not usable for this task?

-MarkM-

This is why bitcoin needs some kind of options/futures market that can properly enforce contracts (such as via escrow).

Ok people this was a Idea but THIS IS GREAT FEED BACK!

Ok First off never will I work with mortgage unless it was a Hard Money Loan. They usually have an early pay off charge, AND WILL NOT FINANCE IF THEY KNOW YOU ARE FLIPPING. For the simple reason houses bought on auction do not usually have time to be inspected and all that for the lender to be approved.

About housing prices here, The house I grew up in was purchased for 30,000 dollars in 76, We we sold it in 09' sold for 74k when it was sold 2 years latter it sold for 127k.


Read the whole post or don't comment please.....


Holding unless the power or water was on would be 0, unless held for over a year then taxes.
Depends on the house usually water, electric, and not about to fall over lol
That depends again on the house, but there are things we can do to prevent this. 1 Private inspection before auctions, this will run about 150-250 dollars. If this moves forward ill pay out of pocket to take a inspectors class at the community college so we will not have to pay any more. 2 Keeping the cost well below tax value, The vast majority of houses in the area sell for about 5-10pct depending on the area.

No one addressed the idea of renting them out? like dislike this?

This is a bad idea. Borrowing 10k BTC at BTC interest rates is foolish when you get a loan from a bank for less than 4% per year. Loaning 10k BTC to some random person with no real estate experience for the purpose of starting a real estate business is also foolish.

Yes it can of course. My point was you need to be  careful where you buy property but done right its one of the legitimate ways to make a decent return on investment. Even better is if the house is your primary residence you dont pay capital gains tax when you sell.

Australia is better for real estate investment simply because we dont have property taxes only local council rates so you only pay $1000 on a property worth $300 000 each year which goes toward council services.

A friend of mine bought a house for 520,000.  Walked away from the mortgage 3 years later, the bank sold it at auction for 260,000.  It can go down too

In my area about 2 hrs from a major city people are moving out here to get away from massive house prices.

I first moved here and you could buy a house for $30 000 and 2 years later the same house sold for $80 000

Our last house we paid $80 000 and sold for $160 000. Depending on the area you buy in it can be massively profitable. If you pay in cash its a lot better.

What happens when only part of the funds are raised, which is what will happen..  The plan will then morph into using funds for a down payment on a mortgage..  

Edit: Which is even worse then a mortgage backed security, its a security backed by a mortgage in the operaters name .

I agree with your edit, there should be a lien on the title or Deed of Trust held by the Security shareholders.

It might work, but its a bit of a stretch for GLBSE

The easier way is to find a few real life partners and go in together if you don't have enough funds to buy fixers on your own.  You really don't want a bunch of partners in the flipping/fixer business, it can be a real pita, btdt.

The problem was that the mortgage lenders didn't properly rate the risk involved with the underlying loans. The fact that the loans were grouped together, and sold to others had little to do with the fact that he loans were bad. In fact, it is not much different from any other asset backed security.

Where do you see mortgage in the plan other than the possibility the property is cheap due to some else having reneged on a mortgage? (I thought it was renege on taxes offhand but maybe you think it was mortgage?)

I had the impression this was a buy houses with cash and sell them for cash deal?

EDIT: Ah maybe you are saying this deal itself is something akin to a mortgage (and thus implying maybe a real lien on the properties would be a good idea as part of verification)?

-MarkM-

So your suggesting a mortgage backed security on GLBSE??

Didn't we just have the biggest financial crisis in the last 70 years or so because of a melt down in mortgage backed securities??

Just sayin..

That problem keeps on coming up, that is part of why I made tables using different assets as the one to express values in; the idea was to try to get an idea which assets seemed least volatile so as to be able to pick such an asset rather than a rapidly appreciating asset or a rollercoaster up and down in value asset to denominate things in when wanting to use a less volatile unit of account. I actually only recently bothered to add "expressed in bitcoins" to the tables simply because I figured I already knew bitcoin was one of the more volatile ones. The tables I made so far are at http://galaxies.mygamesonline.org/digitalisassets.html

-MarkM-

Any ideas how to fix that?

The only problem I can see is BTC > USD and USD>BTC. If the exchange rate shifts you could still make a profit on the house but still take a loss on the BTC Investment.

Taken From JDnews.com

This is a example of what we would be going after.

9 Westminister Drive, Jacksonville, NC 28540
http://www.zillow.com/homes/9-Westminister-Drive,-Jacksonville,-

NC-28540_rb/

Our goal would be to buy this at auction on the court house steps

for Min 35% below tax value.

Tax Value for this house would be 125700.00

Houses in the area selling for 134,000 with same sq. ft. This house

is listed on zillow and is in short sale status.


Inital Strategy To buy houses at acuction on the court house steps Sell these houses for a profit, With the profit pay investors profit and grow the business.

What will be the growth plan? For every houses sold keep part of the money in reserve. When amounts are reached to buy 2 Properties one will be sold and one will be kept as a rental.

Here is how it would work.

Take the Property listed above, with what we know we can assume they paid about 15 years of payments, at 12 months a year. I would value that property at about 75,000 In 97. I gave them a Interest Rate of about 5% total comes out to 144,941.84 for 30 years. Minus the payments they made for 15*12=180 comes out to 72360 paid in. Which leaves there balance of around 73k. The bank may or may not go after the intrest not gained yet. So that could or could not be in the factor. The house is purchased at 35% below market value, we then fix the house enough to be sold "Under V.A. Standards". The Investors are paid 80% of the profit and 20% is put aside for growth. After this process happens so many times and we have enough funds for 2 properties, we will buy 2 properties selling 1 and keeping 1 as a rental. 75% of the rent will be paid as Dividends, 20% will be put aside for repairs and 5% for property handling fees to the real estate company.


Where I got the idea from


When I got out of high shool in 2004, I was sitting around my friends house chatting with his father. I knew he was into real estate and just thought he was a well off from sales. He actually only makes around 25k a year as a property manger. But he had been buying homes at auction since he was in his middle 20's. By this point he had around 20 or so rentals. He offered me and his son a job painting his rentals and the rentals for Coldwell Banker. Thats where my first business was born painting rental houses. As I got to know his dad better, He started telling me how he did it, and that was the only real way to make money in this town. Living in Jacksonville, NC has a couple of advantages that other towns don't. A 3 year rotating population, from the United States Marines. The standard Marine is restationed every 3 years, thus making the rental industry in the town a BOOMING business.


My question is would anyone be want to invest in something like this? Never seen anything like this on here before.

Keep posts constructive and on topic please