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Author Topic: BTC for First Deed of Trust 20% LTV  (Read 103 times)
realpropertybtc
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June 02, 2018, 03:40:10 PM
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We are a private party that has several $4M+ properties on the West Coast of the USA. We are looking for BTC in exchange for First Deeds of Trust for $1M to 1.4M. This can be done through a 'normal 'escrow process but it can also be done private party without reporting requirements. We will agree to a 3/5 year ballon payment at which time the loan will be paid off.

If you value your privacy this may be a good way to move from BTC to the 'real world'.



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ThatRandom8543
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June 02, 2018, 03:54:12 PM
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We are a private party that has several $4M+ properties on the West Coast of the USA. We are looking for BTC in exchange for First Deeds of Trust for $1M to 1.4M. This can be done through a 'normal 'escrow process but it can also be done private party without reporting requirements. We will agree to a 3/5 year ballon payment at which time the loan will be paid off.

If you value your privacy this may be a good way to move from BTC to the 'real world'.





Why not just take out a second mortgage on the property or a HELOC and buy bitcoin with that? Imo youre better off doing this locally because there is a lot of cost into even using a property as collateral.
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June 02, 2018, 06:00:20 PM
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I would advise anyone considering engaging in this kind of transaction to engage with an attorney competent in local real estate laws.

The requirements to make a valid Deed of Trust that creates an enforceable lien are complex and vary from state to state (and even locally in some instances). If there are mistakes in the DOT, if it is not properly executed or recorded, then you may find out years from now if/when the borrower defaults that you have no way of recovering the collateral.   


The use of crypto also somewhat complicates things as borrowers can claim they never received loan proceeds -- normally, this is easily resolved by proving a copy of the cancelled check payable to the borrower (or the borrowers benefit), along with relevant bank records. To my knowledge, there is not any precedent on how to successfully defend yourself against this kind of claim -- maybe funds could be transferred via an exchange. 

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realpropertybtc
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June 02, 2018, 08:26:01 PM
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We are a private party that has several $4M+ properties on the West Coast of the USA. We are looking for BTC in exchange for First Deeds of Trust for $1M to 1.4M. This can be done through a 'normal 'escrow process but it can also be done private party without reporting requirements. We will agree to a 3/5 year ballon payment at which time the loan will be paid off.

If you value your privacy this may be a good way to move from BTC to the 'real world'.





Why not just take out a second mortgage on the property or a HELOC and buy bitcoin with that? Imo youre better off doing this locally because there is a lot of cost into even using a property as collateral.


I don't necessarily want the BTC. I will likely just cash the BTC in. What I am offering is mutually beneficial for those who have BTC and want to turn it into fiat funds and get a return in the meantime.
realpropertybtc
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June 02, 2018, 08:34:26 PM
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I would advise anyone considering engaging in this kind of transaction to engage with an attorney competent in local real estate laws.

The requirements to make a valid Deed of Trust that creates an enforceable lien are complex and vary from state to state (and even locally in some instances). If there are mistakes in the DOT, if it is not properly executed or recorded, then you may find out years from now if/when the borrower defaults that you have no way of recovering the collateral.   


The use of crypto also somewhat complicates things as borrowers can claim they never received loan proceeds -- normally, this is easily resolved by proving a copy of the cancelled check payable to the borrower (or the borrowers benefit), along with relevant bank records. To my knowledge, there is not any precedent on how to successfully defend yourself against this kind of claim -- maybe funds could be transferred via an exchange. 

This can be done as complicated or as easy as the lender wishes. A contract is drawn up between the parties explaining the process and in fact the trading can be done in person (or at an attorney or CPA or other 3rd party if so desired) so proof of the transaction is obtained simultaneous with the transfers. Once the BTC has changed hands a DOT is recorded at the County recorder. Again - this can be done in person and then verified with a title search or title insurance if the lender wishes. In most states a standard language DOT is actually a part of their state Code (for instance California uses standardized DOT language and just refers to it on the recorded DOT)
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June 03, 2018, 12:45:08 AM
 #6

Have you tried to apply for a loan via a traditional lender on similar terms? If so, why were you denied?

The cost of engaging in this kind of transaction will be much greater if a lender is making one loan verses if a lender regularly makes these kinds of loans because the costs associated with researching how to do this properly cannot be spread out over multiple transactions.

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realpropertybtc
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June 03, 2018, 02:15:34 PM
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We have no issues getting traditional loans. The offer here is for a mutually beneficial trade. Lender turns their coins to Fiat and gets Fiat interest. We get a slightly below market APR.

The paperwork on this is minimal and the costs are negligible. We already have our trading accounts and OUR compliance done. This enables the lender to remain private if they wish.
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June 04, 2018, 11:36:49 PM
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Given all the risks, I think someone would want 10x collateral to even engage in this type of transaction. Can't even imagine how challenging it would be for someone who lent BTC in exchange for a deed of trust to actually foreclose, evict the tenant or owner, and then sell the property. California laws are exceptionally friendly to the property holder, and make doing that all but impossible particularly if any aspect of the loan process was not done by and agreed to by attorneys. The fact it is done in crypto alone might invalidate the lien.
realpropertybtc
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June 07, 2018, 03:14:23 PM
 #9

This entire post is incorrect. The Deed of Trust would be for USD NOT BTC. Foreclosure is a standard process. Yes it takes time but (4-6 months) but on at 20%LTV who cares. If there is an interested party I'm happy to explain how this works. People are chiming in who do not understand how a DOT works. (Deed of Trust).
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