Bitcoin Forum
September 24, 2018, 08:28:01 PM *
News: ♦♦ New info! Bitcoin Core users absolutely must upgrade to previously-announced 0.16.3 [Torrent]. All Bitcoin users should temporarily trust confirmations slightly less. More info.
 
   Home   Help Search Donate Login Register  

Warning: Moderators do not remove likely scams. You must use your own brain: caveat emptor. Watch out for Ponzi schemes. Do not invest more than you can afford to lose.

Pages: [1]
  Print  
Author Topic: Real Estate Investments in Bitcoin  (Read 1940 times)
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
September 22, 2012, 11:44:17 PM
 #1

Taken From JDnews.com

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

Quote
AMENDED NOTICE OF FORECLOSURE SALE NORTH CAROLINA, ONSLOW COUNTY 11

SP 760 Under and by virtue of a Power of Sale contained in that

certain Deed of Trust executed by VICTOR STEVEN GATEWOOD and

Annette Victoria Gatewood to Frank W. Erwin, Trustee(s), which was

dated October 28, 1997 and recorded on November 3, 1997 in Book

1408 at Page 199, Onslow County Registry, North Carolina. Default

having been made of the note thereby secured by the said Deed of

Trust and the undersigned, Trustee Services of Carolina, LLC,

having been substituted as Trustee in said Deed of Trust, and the

holder of the note evidencing said default having directed that the

Deed of Trust be foreclosed, the undersigned Substitute Trustee

will offer for sale at the courthouse door of the county courthouse

where the property is located, or the usual and customary location

at the county courthouse for conducting the sale on October 4, 2012

at 10:00AM, and will sell to the highest bidder for cash the

following described property situated in Onslow County, North

Carolina.

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

1537820881
Hero Member
*
Offline Offline

Posts: 1537820881

View Profile Personal Message (Offline)

Ignore
1537820881
Reply with quote  #2

1537820881
Report to moderator
Einax Airdrops and Bounties made easy! List your ERC-20 token
FREE
ETH markets launching soon!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1537820881
Hero Member
*
Offline Offline

Posts: 1537820881

View Profile Personal Message (Offline)

Ignore
1537820881
Reply with quote  #2

1537820881
Report to moderator
1537820881
Hero Member
*
Offline Offline

Posts: 1537820881

View Profile Personal Message (Offline)

Ignore
1537820881
Reply with quote  #2

1537820881
Report to moderator
1537820881
Hero Member
*
Offline Offline

Posts: 1537820881

View Profile Personal Message (Offline)

Ignore
1537820881
Reply with quote  #2

1537820881
Report to moderator
RandomQ
Hero Member
*****
Offline Offline

Activity: 826
Merit: 500



View Profile
September 23, 2012, 12:01:29 AM
 #2

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.
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
September 23, 2012, 12:16:31 AM
 #3

Any ideas how to fix that?

markm
Legendary
*
Offline Offline

Activity: 2100
Merit: 1000



View Profile WWW
September 23, 2012, 12:17:42 AM
 #4

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.

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-

Browser-launched Crossfire client now online (select CrossCiv server for Galactic  Milieu)
Free website hosting with PHP, MySQL etc: http://hosting.knotwork.com/
silverbox
Legendary
*
Offline Offline

Activity: 966
Merit: 1000


View Profile
September 23, 2012, 12:21:09 AM
 #5

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?? Wink

Just sayin..
markm
Legendary
*
Offline Offline

Activity: 2100
Merit: 1000



View Profile WWW
September 23, 2012, 12:23:41 AM
 #6

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?? Wink

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-


Browser-launched Crossfire client now online (select CrossCiv server for Galactic  Milieu)
Free website hosting with PHP, MySQL etc: http://hosting.knotwork.com/
puffn
Full Member
***
Offline Offline

Activity: 126
Merit: 100


View Profile
September 23, 2012, 12:29:34 AM
 #7

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?? Wink

Just sayin..

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.

Looking for safe diversification? YABIF: Good Returns, Low Fees, Low Risk.

GLBSE
Bitcointalk Page

I hold significant interest in
Bitcoin Mining Investments
silverbox
Legendary
*
Offline Offline

Activity: 966
Merit: 1000


View Profile
September 23, 2012, 12:31:11 AM
 #8

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?? Wink

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-



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 Wink.

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 Wink

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.
Bitcoin Oz
Hero Member
*****
Offline Offline

Activity: 686
Merit: 500


Wat


View Profile WWW
September 23, 2012, 12:51:43 AM
 #9

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.

silverbox
Legendary
*
Offline Offline

Activity: 966
Merit: 1000


View Profile
September 23, 2012, 12:55:14 AM
 #10

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 Wink
Bitcoin Oz
Hero Member
*****
Offline Offline

Activity: 686
Merit: 500


Wat


View Profile WWW
September 23, 2012, 01:03:15 AM
 #11

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 Wink

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.

odolvlobo
Legendary
*
Offline Offline

Activity: 2254
Merit: 1143



View Profile
September 23, 2012, 04:18:13 AM
 #12

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.

Buy bitcoins with cash from somebody near you: LocalBitcoins
Buy stuff on Amazon at a discount with bitcoins: Purse.io
Join an anti-signature campaign: DannyHamilton's ignore list
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
September 23, 2012, 01:28:10 PM
 #13

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.

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.

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

If the properties that go to auction could be quick flipped, they would be.

What are the costs of holding onto a place while waiting for a sale?
How much do you anticipate it would cost to bring a place up to standards so it could be sold "Under V.A. Standards".
Could these costs produce a profitless situation / put you in debt?

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?

Shadow383
Sr. Member
****
Offline Offline

Activity: 336
Merit: 250


View Profile
September 23, 2012, 02:15:53 PM
 #14

Any ideas how to fix that?
This is why bitcoin needs some kind of options/futures market that can properly enforce contracts (such as via escrow).
markm
Legendary
*
Offline Offline

Activity: 2100
Merit: 1000



View Profile WWW
September 23, 2012, 02:26:02 PM
 #15

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

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

-MarkM-

Browser-launched Crossfire client now online (select CrossCiv server for Galactic  Milieu)
Free website hosting with PHP, MySQL etc: http://hosting.knotwork.com/
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
September 23, 2012, 02:31:59 PM
 #16

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.

cbeast
Donator
Legendary
*
Offline Offline

Activity: 1736
Merit: 1000

Let's talk governance, lipstick, and pigs.


View Profile
September 23, 2012, 02:53:46 PM
 #17

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

Any significantly advanced cryptocurrency is indistinguishable from Ponzi Tulips.
BitcoinINV
Sr. Member
****
Offline Offline

Activity: 448
Merit: 250



View Profile
September 23, 2012, 02:54:36 PM
 #18

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

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

myops
Newbie
*
Offline Offline

Activity: 98
Merit: 0


View Profile WWW
June 04, 2018, 01:15:48 PM
 #19

https://a.radikal.ru/a08/1806/54/94c95868b076.png
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!