All Forum Posts by: Tom Conant

I see what you mean Matt. What I don’t get though is what’s stopping me from selling jars of air for 10,000 or anything for that matter. It seems to me like someone just ‘invented’ what would be the ideal currency in a globalized world and the market is taking hol if it. Idk though, perhaps this is a ‘if I told them they needed a faster horse, they would have told me to screw’ situations... anyways, love all these theorheticals. I love macro Econ and like to talk about it so if anyone wants to connect let’s chat!

Thanks guys!

Tom

Here’s a different way to phrase my discussion point in response to the other comments. Love this thread.

Let’s say we’re all just investors. Not RE investors but investors. We look for true sources of value in things, pay for ones that have yet to reach that value in hopes of seeing appreciation of some sort or any value add. Or we best against an asset or investment vehicle that we believe will lose value. With that said, I see NO actual value in Bitcoin. Where is the actual value?

To everyone saying that bitcoin is like all the other actual fiat currencies out there, I don’t think it is. Those currencies, while literally just pieces of paper (or other assets that may be collateralized by these pieces of paper), hold value in relation to other products services or expenses. That’s why people don’t mind being paid in  US dollars. But Tom, you just answered your own question. Fiats don’t hold any value. Butttttt that’s whats missing in this discussion, Fiats hold value in relation to the government that backs them. Look around at capex rates and you’ll see. 

A real estate investment has intrinsic value because the land that the home sits on is always worth SOMETHING. The real estate market, stock market blah blah blah market call all go down but not realistically to 0. 

There is literally nothing to a bitcoin. No value that I can see other than future appreciation in value. The only underlying metric for that value is demand for the coin. But why do people want these things? A bitcoin does nothing but allow me to buy things without having a political affiliation to the consideration I am handing over for a product  or whatever. 

While some may say that the possibility of a newfound way to transact, I just cannot see this happening until we literally have a globalized government. There would be no ability to manipulate currencies for good reasons and countries in economic disparity would have extremely hard time getting out of depressions and what not.

Let me ask the Bitcoin army people this (I also don’t want to hear, ride the appreciation! That’s speculation.) I want to know if there is any underlying value other than supply and demand. I think that limited supply will be the coins fatal flaw.  Here is my final question.

What makes bitcoin, a coin with no determinable intrinsic value, ‘better’ than the gold standard?

Thanks,

Tom

To further convo, do any RE attorneys know how the Fannie law apply a here? Do fed backed banks not allow cash outs before 1 year? Thanks Tom

Hey everyone, Question pretty much says it all. This is in relation to multi resident properties. Could buy multi building or one building. Does this purely depend on the market and the expenses involved? Thank you, Tom

Matt R. Thanks for the awesome feedback. See I think that then the only real value lies within the transferable fiat money right? Unless the relation to other currencies gets so large that it becomes the value of the coins themselves. And totally didn’t know about the govt thing with the criminals. Idk tho, they’ll be coming after out cash pretty soon. Didn’t they just shut down the 500 dollar bill somewhere? Tom

I’m not a psychiatrist or anything but if you offer someone and offer and they don’t have any other offers, even if they’re lying your either 1. Submitting a calculated real estate offer and or 2. Being the only offer submitted. Right? I mean, would knowing the agent is lying or not change your offer price? In my opinion is shouldt but I’ve never actually bought a house sooooo idk?

To answer your question, I look for a lot of the same things as you. Buttttt I like you said there is not right or wrong answer. What I would say is, look at the market you are analyzing, and see which statistical benchmarks you’ve chosen have the most impact on your financials in that particular market. Then you can assess your risk, but like you said, there is no steadfast way to do it 🤷🏻‍♂️ Tom

Yeah Chris Seveney and David. I totally agree. I also don’t really understand the intrinsic value of said bit coins. What I mean is, I thought that the value of a bitcoin was directly related to the number of bitcoins in the market; like demand was irrelevant to the value of the coin. That was because these coins are mined through computer algorithms that ‘find’ coins. The more coins, the more cash on the table. Idk. I can’t explain it on here I guess. Think of it this way. What happens to inflation when there is no fluctuation in the value of a singular fiat currency? It stagnates doesn’t go up doesn’t go down. What happens to everyone’s ‘investments’ when the market no longer grows or shrinks. I am no economics professor (I studied macro, micro, intermediate macro and international all undergrad so nothing special here) but the smartest people in the financial world (including banks - corps are people too lol) only LOSE money when the money isn’t moving. Idk, I just don’t think the banks or the governments will let it happen. Don’t even get me started on how I actually think the whole bitcoin thing could give Donnie and the rest of the Capital Hill cronies the perfect opportunity to shatter the stock market that’s held up on glass stilts. The only asset class will left will be REAL estate. Everything else was propped up by the bailouts in 2008. I’ll be waiting in my arch I’ve been tirelessly building since this bitcoin nonsense broke on CNN or whatever. Should have bought the damn thing at $650.00 😂😂 I’ve lost it, Tom

Hey BP, Here is my scenario. I think that I can purchase and build property, fully managed at almost 10% CoC return with 50% downside risk. I want to own the property in 30 years and can ride out a mortgage for that long. The summer rentals would pay for all of this cash flow. I also think that where this house is located is becoming much more attractive to tourists. Any input would be great! Thank you, Tom

Newsflash. 3/4 of the entire thing is organized crime and illegal money. When governments try to regulate and some succeed and others don’t then the value will crash. A govt looses a TON of power when they cannot manipulate their monetary policy and honestly they simply won’t allow their to be an international currency. Look what it did to Europe. Only a matter of time. The bigger the coins get the harder they’ll fall I guess 🤷🏻‍♂️ where can I short bitcoin?