Chinese Investors Buying Real Estate with Bitcoin

Source: https://thinkrealty.com/chinese-investors-buying-real-estate-with-bitcoin/

Chinese bitcoin tycoons are actively working to sell off their cryptocurrency in the United States in order to use the cash to purchase real estate investments. For example, one early adopter recently sold 500 bitcoin in the U.S. (that value is just under $3.8 million at time of publication), then used the money to purchase a 100,000-square-foot mansion about 90 minutes from San Francisco. He explained, “After selling bitcoin, you can just buy anything you want.”

The advantage for …

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Are you contemplating investing in real estate? But you do not have enough cash to do so. In this article is a tip you may use as long as the property seller is willing to negotiate with you.

To be fair, not every seller will be interested (or even understand) the concept outlined. Your best guess is to locate a property that the owner has great interest in selling, whether because they are moving, divorce, or they are frustrated with tenants.

Actually, if you are currently renting and considering using this strategy perhaps the owner would be happy to assist you! There are some variations that can be used depending upon you and your vendor. Do they desire the market price or are they just desperate to get out from the monthly payments – perhaps facing foreclosure?

The simplest way is to take over their mortgage payments – called ‘assuming’ the mortgage. You will need to be approved by the first lender to assume the mortgage. If you can’t get approved for an assumable mortgage you could also try a ‘subject to’ assumption where you merely make obligations while the property stays in the seller’s name.

You take over the original mortgage and get a 2nd mortgage on the remaining cost of the property with the seller. Offer a high, interest-only payment for a short time period – 2 or 3 years. Instead of having the money stay in a bank they could be getting a high interest over two or three years with the remainder due in full at the end of the investment term.

When the term ends you ought to be able to refinance the cost, or perhaps you could sell. Unless you hit an actual bad market the value of the house should have risen by then.

Most mortgage lenders merely want to make a good investment. While your local bank could still be lacking confidence there are plenty of financial lenders that would want to make a deal. Financiers prefare property investing. The mortgage is usually around 60-70% of the value of the land, so as long as they know they get their money back in the value of the estate if you default, they don’t care what kind of money you make. Complete the deal with a second mortgage created with the seller. In case you default they can eventually foreclose on the property and sell it, paying off the existing mortgage in the proceeds.

Now you can observe the whole picture. It is better that seller and buyer may work hand in hand. In the event that they can’t wait for a sale, you may still give them their asking price with a little versatility on their part.

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