I would put real estate against bitcoin any day, every day!

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I would put real estate against bitcoin any day, every day!

Adam Adams
Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
I would put real estate against bitcoin all day, every day! There is more power in rental real estate than people realize. For example: Everything I bought this year I did it with just 40k out of pocket and I am grossing 10,350/mo! I dare you to top that with bitcoin, it’s not possible! That’s over 121k every year, for the rest of my life... and I'm just getting started. By the end of next year I'll have this same portfolio double in size with no more than the original 40k. This is accomplished because 1) you can buy real estate with pennies on the dollar, 2) the power of financial leverage (being able to refinance out your entire down payment) I currently own: -5 plex in Massillon -2500/mo -4 plex in St. Louis -2200/mo -3 plex in Alliance -2100/mo -3 houses in Youngstown -1500/mo -2 houses in St. Louis -1300/mo -1 house in Cleveland Heights -750/mo Don't underestimate real estate! #bitcoin #realestate #rentalrealestate #powerofleverage #happinessispassivecashflow #respectthehustle #investor (For the record, the truth is that I did all of this with none of my own money, I brought in partners who had the 40k. They are making half the profits and I am making half the profits.)
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Stephen Moore
Real Estate Investor · Lake Charles, LA · Member since 2009 · 271 posts · 52 votes
8y

how u finding partners in all those areas ?

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  • Stephen Moore
    Real Estate Investor · Lake Charles, LA · Member since 2009 · 271 posts · 52 votes
    8y

    how u finding partners in all those areas ?

    2Reply
  • Account Closed
    Investor · Miami, FL · Member since 2014 · 80 posts · 32 votes
    8y

    @Adam Adams

    3 appartment buildings and 6 houses with 40k in hand

    121k gross income at say 10% annual that's 1,2m worth of real estate 

    That's a 30:1 leverage...or 97% LTV

    I want the name of your lender

    Honestly after the subprime crisis mess, i thought they would ban that kind of excessive leverage but it seems it is back to business as usual

    2Reply
  • Adam Adams
    OP
    Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
    8y
    @Cedric My average LTV is probably around 55% The part you missed is that I have never paid market value I pay between 30% & 70% My lenders are local private lenders. Let me give you some history, Step One: 40k in the bank Step Two: Purchase 100k worth of property which grosses 18k/yr. My purchase price is 28k. Step Three: Finance the property with a private lender. The loan is 40k (AKA 40% LTV) Step Four: 52k in the bank Step Five: keep doing the above
    0Reply
  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    8y

    No doubt real estate is baller.. I own gobs of it, but nothing wrong with BTC. Bubble or not, if you had bought 10k a year ago today, it would have gone up in value by 1,326.92%.. That's $132,692.00 in cash value!! I'd move that off the table, and go buy 1 million worth of deals,  then enjoy a cool $5,566 net per month, and go buy some more BTC and forget about it. Have your cake and eat it too!

    2Reply
  • Adam Adams
    OP
    Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
    8y
    Originally posted by @Account Closed:

    @Adam Adams

    3 appartment buildings and 6 houses with 40k in hand

    121k gross income at say 10% annual that's 1,2m worth of real estate 

    That's a 30:1 leverage...or 97% LTV

    I want the name of your lender

    Honestly after the subprime crisis mess, i thought they would ban that kind of excessive leverage but it seems it is back to business as usual

    My average LTV is closer around 55% *NOT 97% 

    The part you missed is: I'm not paying market value: 

    To be clear, my lenders are private lenders.

    For example:

    Step One: 40k in the bank

    Step Two: Purchase 100k worth of property which grosses 18k/yr. My purchase price is 28k.

    Step Three: Finance the property with a private lender. The loan is 40k (AKA 40% LTV)

    Step Four: 52k in the bank

    Step Five: keep doing the above

    This makes LTV (loan to value) <55%. Even though LTC (loan to cost) is closer to 97% 

    (when you did the math and got LTC @ 97%)

    0Reply
  • Zach Quick
    Investor · Bentonville, AR · Member since 2014 · 759 posts · 379 votes
    8y
    I’m assuming you are trying to get some extra clicks/votes by this title. If someone put $100 in BTC in 2011 their gains would kill yours. While obviously I invest in RE and prefer it too, check the stats. Regardless, congrats on the success.
    2Reply
  • Account Closed
    Investor · Miami, FL · Member since 2014 · 80 posts · 32 votes
    8y
    Originally posted by @Adam Adams:

    @Cedric

    My average LTV is probably around 55%

    The part you missed is that I have never paid market value I pay between 30% & 70%

    My lenders are local private lenders.

    Let me give you some history,

    Step One: 40k in the bank

    Step Two: Purchase 100k worth of property which grosses 18k/yr. My purchase price is 28k.

    Step Three: Finance the property with a private lender. The loan is 40k (AKA 40% LTV)

    Step Four: 52k in the bank

    Step Five: keep doing the above

    18k per year for 28k gives a 0,64 GRM; congrats, that's the kind smoking deal i have never seen in real life; maybe in some rust belt cities, but you'd still have to find decent tenants, and they wouldn't pay 1,5k a month

    However, the net operating income would be better used in this case

    Cheap properties tend to have as much or even more operating expenses than more valuable ones, and you still have to take vacancies, high property taxes and the 12% for your private lender in consideration

    0Reply
  • Sam Josh
    Sunnyvale , CA · Member since 2017 · 373 posts · 362 votes
    8y

    I fail to understand the merit of this argument. Bitcoin is a new emerging investment vehicle which at this time is running on pure speculation. No one quite knows how to make of it. Real Estate on the other hand is a time tested investment vehicle. The only similarity I see is BitCoin was an investment vehicle which until recently was the domain of the professionals who understood it well but now its become a mass market casino where everyone with $200 in his pocket thinks he can partake and make it big. I hope that does never happen to RE. The last time it happened, a lot of people lost their shirts in a very big way.

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    8y

    I invest in what I understand. Investing in stuff you do not understand is asking for a shark in that sector to take you to the cleaners for their own gain and your losses.

    Podcast Guest on Show #47
    NNN Invest53 Reviews
    WebsiteView Page
    0Reply
  • Adam Adams
    OP
    Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
    7y

    @Sam Josh that’s fair!

    0Reply
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