Rental Property Investor · Greer, SC · Member since 2017 · 51 posts · 33 votes
Honest question, why lockup your money in real estate when over the past decade crypto (bitcoin) has better returns and you can now earn passive income and are much more liquid than buying a home? I am moving more and more of my money into crypto and selling homes to accumulate crypto assets, I can make 8.6% interest on a digital dollar that is paid monthly, doesn’t fluctuate and compounds. I also make 6% on Bitcoin and my interest is paid in bitcoin. I don’t have to deal with repairs and the other stresses of managing a property. I would love peoples thoughts on this.
You can't leverage bitcoin, you can't improve it and you have no control over it. Can't BRRR it either. REI is a lot of work, takes a long time, it's messy - so I can see the appel of something that is quick and easy!
To me in many ways crypto reminds me to my first stock investing days back in 1999, it's great until it's not.
I have a very particular skillset as a real estate investor. I select unusually well-built properties and carefully maintain them while I self-manage them as C-class rentals.
If there's money to be made in Bitcoin it's going to be made by people with far more technological savvy and understanding of identity theft than the likes of me. If I were to buy into Bitcoin, I am absolutely sure that I'd be the first guy to get disappeared and waterboarded for my keys. If they didn't find me floating up the Mon in the end.
The more you think about it, the more obvious it is that the first rule of investing in Bitcoin is NOT TELLING PEOPLE you invest in Bitcoin. You guys are going to bring abduction and torture for profit right back.
It amazes me how the compounding of REI is lost on people. More important than that, it is shocking how the ability to buy on 20% or less of face value, then compound the returns on top of that, is completely lost.
Also, one of the greatest advantages of REI is the fact you are NOT locking up your money. You can get your money out within a year if done correctly, and reinvest it, over and over again, and keep the original property. This is simple math...or at least it should be.
If not BRRR or refi, do you mean the cash flow pays off your down payment?
It amazes me how the compounding of REI is lost on people. More important than that, it is shocking how the ability to buy on 20% or less of face value, then compound the returns on top of that, is completely lost.
Also, one of the greatest advantages of REI is the fact you are NOT locking up your money. You can get your money out within a year if done correctly, and reinvest it, over and over again, and keep the original property. This is simple math...or at least it should be.
If not BRRR or refi, do you mean the cash flow pays off your down payment?
Cash flow is one way, but there are many other ways too. Way too many to even attempt to discuss in this limited format. Just focus on putting yourself in a financial position where you will be getting cash back (equity isn't the same thing, but it can be converted into the same thing) ASAP. Refinancing isn't your cash coming out. REFI is teh banks money they are selling to you. If it was your money, you wouldn't have to pay for it (interest).
I hear what people are saying but it seems that there's is some viability here when it comes to crypto. A simple analogy. Many states have legalized marijuana not necessarily because it may serve a medicinal purpose....but its about money. I feel crypto is the same thing. Banks/politicians don't like competition but whether your for it or against it, if money can be made then it will sustain the ride. Lets be honest...govt just wants their piece of the pie. If certain political factions,. special interest groups, banks, etc see a way to make money off crypto they will find a way to make it work.
"Investing in crypto" is as meaningless as "investing in stocks" or "investing in real estate." Some investors in each category will win. Some will break even. Some will lose everything. Investing is about particulars. What are you buying is usually interesting. What space you are buying in - not at all. Good night and good luck.
I hear what people are saying but it seems that there's is some viability here when it comes to crypto. A simple analogy. Many states have legalized marijuana not necessarily because it may serve a medicinal purpose....but its about money. I feel crypto is the same thing. Banks/politicians don't like competition but whether your for it or against it, if money can be made then it will sustain the ride. Lets be honest...govt just wants their piece of the pie. If certain political factions,. special interest groups, banks, etc see a way to make money off crypto they will find a way to make it work.
Thoughts?
It is a new asset class and it will have new tax revenue. The it's going to be deemed illegal stuff or you are going to get kidnapped is total nonsense at this point. It is probably further along in acceptance than legal weed but I get your point, it's about the new money for government now.