All Forum Posts by: J. Martin

@Michaela G. , you always have the most interesting questions!

I'll start by disclaimer that I do own some BlTCOlN (BTC) and a warning:
**** This is a highly speculative and highly volatile commodity /cryptocurrency/medium of exchange - whatever you want to call it. Every second you hold it, it can be gyrating wildly in value. There are also risks regarding storage and the "wallet." I do not recommend holding any funds in BTC that you cannot afford to lose completely at a moment's notice.***** Having said that, I own some and am buying some relatively small amounts of other "cryptocurrencies" with some highly speculative funds I have on the side, since I haven't been to a casino in a while.. if you're interested, look up litecoin, ripple, and the rest.. I'm very interested in this idea! - thanks for the mention @Troy Fisher .

Can you accept it for rent? Of course. You can accept whatever you would like: US dollars, goat's milk, BTC, 30hrs of work, etc etc. Is it a good idea and are there enough people to have it make sense? Maybe a different answer.. But it apparently has already been done! (See link at bottom). You may have to be able to show where you got it from when your bank sees large transactions from BTC to USD - and you might get a lot of questions. The Senate had a hearing on it a couple weeks and all regulators noted it's legitimate purpose, while expressing the need to ensure it is not used for illicit purposes. Many BSA/AML concerns are similar to cash. Hard to trace. But the legit exchanges all ask for identity documentation now. You can buy and sell it just like a stock. If you constantly changed the BTC rent payment based on the then-asking price for USD, you could theoretically accept the payment and IMMEDIATELY exchange for USD. But transaction costs and timing risks there too.

For buying property, it would be very difficult to find someone willing to accept BTC. But, you could of course sell your BTC for USD on one of the exchanges (BTC-e, Coinbase) and purchase the property in USD (again you may have the Bank asking you all kinds of questions about where these funds came from, ESPECIALLY from another bank if you are getting a loan also.) Branson announced they'll be accepting BTC for Virgin space flights next year, but beyond that and a few restaurants, it's mostly just accepted at certain online retailers you've never heard of (although you could get most anything you would need probably - see link)

Regarding a Ponzi Scheme and its (un?)usefulness for transactions, is that it is more like gold. It has value today because of it's somewhat limited supply (21 million bitcoins maximum ever, currently ~12MM. Gold is difficult to find and extract), and because people believe that someone is later willing to purchase it for a similar or greater amount because it is viewed as a store of value. (Sometimes referred to as the "greater fool" principal). Neither have much usefulness beyond that (but gold is physical and shinier..) Both are traded on multiple exchanges with private parties (in fact the decentralization of BTC is one of it's favored properties - making the Ponzi difficult..)

But a big difference!: BTC hasn't been used as a medium of exchange for thousands of years across the world! My play here (again, with very speculative money), is that investment advisers and the Winklevoss twins are rushing to set up investment funds to buy the stuff and it's just getting on the public radar. If it gains any sort of small foothold, the value could be in a different universe from what it is right now. Plus China and India love it, and there's lots of people in those countries (and only 21MM bitcoins for the rest of time!). Or everyone could forget about it next year, like the Dutch tulip bulb craze from centuries ago and be worth zero!! But that's why you have to use your play money..

This link is straight from the people promoting its usage, so probably has a positive spin, but very informative. Plenty of criticism out there too online.
http://bitcoin.org/en/faq#what-is-bitcoin

..and the property manager accepting BTC..
http://www.prweb.com/releases/2013/4/prweb10608334.htm

..shops accepting bitcoin
https://www.spendbitcoins.com/places/

Michaela, if you're really interested, skip going out to dinner one night, transfer $20 to coinbase.com, and purchase a fraction of a BitCoin! But remember my warning.. Only with play money! Have fun!

I love the smell of curry. But not everyone! But I think the question here was regarding the smell when the unit is vacated.. My good friend bought an owner-occ sfr and spent $10k plus ripping up carpets, cleaning HVAC, etc. One thing that helped him a lot in the end though was the new febreeze fabric odor eliminator. Check out the commercials and try it out! Cheap investment!

Welcome to BP Steve!

We're going to be meeting in the east bay on the 10th in Oakland if you'd like to come out, say hi, and meet some fellow investors. The link to the details is just a bit higher up on this page under East Bay Meetup. Great things on this website too! Enjoy! And hope to see you put there..

Steve, Troy and others bring up good points about leverage, CF, etc. If you have that down, have reserves, I would LOVE to be able to do another FHA deal on a 4-unit. You are right regarding the mortgage insurance. Can't get rid of it like that on new FHA loans.

Regarding the marraige, should be OK, but you HAVE to talk to your lender, as they will be the only one who can tell you for sure. I used a loan broker on my FHA deal, and he was able to call several FHA lenders for me to answer all my detailed questions. Get a local referral on an experienced FHA loan broker or officer and run it through them to be sure. Sometimes they want both spouse signatures depending on property rights in your state, which may lead to your 2 signatures on 2 FHA mortgages..

Can anyone recommend a reliable, affordable handyman who knows a little of everything at an affordable rate in the Silver Spring Maryland area? I have a good friend with a fixer who needs a bit of everything. They are also great people! and very reasonable..

Thanks in advance from a West Coast investor trying to pass on the handyman love... I have an awesome handyman in the San Francisco Bay Area if anyone is looking for one! Thank you!

keywords: handyman, Rockville, Bethesda, Silver Spring, Maryland, rehab, contractor

Michaela had a good link for rent control ordinance (and has a foothold in the Bay). Here's a plethora from the planning dept regarding their thoughts on housing and changing units. Scroll down if you get bored with their background/reasoning. City goals regarding housing are at the bottom. Being great friends with high-up officials doesn't hurt either on a project like this!..

http://www.ci.berkeley.ca.us/contentdisplay.aspx?id=1986

Michaela is right to caution you about the tenants - especially about tenants rights regarding eviction rather than rent control. Presumably you are trying to take rent control units off market. Berkeley does not like that. Look up 'just cause eviction' , 'Ellis Act' , and be familiar with the logistics of the condo conversion process in Berkeley. I've seen $15-30k plus per unit for tenant buyouts in SF and Berkeley. Also look up 'protected tenants' and determine if you have any. They have extra special rights in this area. Have a great - not good - lawyer. Or it could cost you very dearly. Mistreating tenants in Berkeley can come with BIG consequences and future commitments. You also need to consider if they will force you to sell a unit below market rate (BMR). Good luck, and be careful!!

Hi Dennis.

Saw you found the East Bay meetup forum also, and looking forward to seeing you there!

I didn't see Sarah Lam yet though! Hope you can join us Sarah! PS my cousin who did materials engineering at Cal Poly said she recognized your name, but didn't know you..

Small world!

Looking forward to meeting and Dennis, and to see you again Ralph. See you all then!

Bill, Jessica, and Andy, it will be nice to hear more about what you are all on working on. Only

a limited chance to chat last time..

Joe C, hopefully you'll be able to make it next time. Andy was thinking about starting something on Saturdays if that works for some who aren't able to attend..

Amit, glad you could make this one and look forward to meeting you in person!

Last but not least, welcome to BP and to the East Bay Meetup group Tiffany! Should be a good time! Looking forward to meeting you and hearing about your goals.