Category: Real Estate Market

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Sell Your Home and Buy Bitcoin

Who Wants to be a Billionaire?

Selling homes, buying Bitcoin and owning more homes — Why would the trusted L.A. Loft Blog go off the deep end here and tell people to sell their property and buy cryptocurrency? That’s nuts!!! Or is it?  #bitcoin #realestate

Well, first of all, even though the real estate market is softening at the moment, that’s not exactly what this article is about. This is about owning more lofts, not fewer. This is to help more people benefit from being educated about the shape of money to come, and thus end up with MORE real estate as a result.  Because Bitcoin has proven to be the most promising investment of the past 8 years, more people need to know more about it. Bitcoin has already created more wealth faster than any technology ever — with market cap growing by more than $65 billion in the last 5 years.  First of all, we must clarify that not everyone should sell their home and buy Bitcoin. Some, however, have already done just that. The jury is still out on whether it was a mistake for the Yolo Bitcoin Family to sell everything they owned to buy Bitcoin. Was it an extremely smart move? Will the Bitcoin Family get rich or go broke?

This article will explain what makes the difference.  What will make it a mistake versus what will make it a super successful plan to liquidate a house or condo in order invest in a blockchain asset? Selling a home for the purpose of buying cryptocurrency is NOT recommended for most homeowners, so DON’T do it without first reading every word in this L.A. Loft Blog post!

Before we talk about how to turn one home into many homes, lets first review a cautionary tale about the Yolo family.  They were last spotted about a month ago, living in a treehouse.  The treehouse did have a swimming pool, and they appeared to be eating well.  The family did say that they are very much enjoying living a temporarily minimalist lifestyle (otherwise known as poor, and they are also asking for donations). They may really need a lot of help if the current Bitcoin price plunge lasts for much longer. Meanwhile, they are  peddling their Bitcoin knowledge to help make ends meet as Bitcoin is currently in its longest protracted plunge yet.

BITCOIN KNOWLEDGE IS POWER

Corey Chambers Your Home Sold GUARANTEED or I'll Buy It*
Corey Chambers

I like my own Bitcoin knowledge even better than Mr. Yolo’s because I’ve made substantial income from working with both real estate and Bitcoin.  But I’ve got an unusually extensive background in all facets of Bitcoin fundamentals:  economics, computer programming, information systems and investing. The only so-called “Bitcoin experts” whom I recommend listening to are Satoshi Nakamoto (mysterious creator of Bitcoin), Hal Finney (deceased co-creator), Gavin Andresen (trusted keyholder of the Bitcoin code), Craig Wright (a controversial founder) and those who have done significant original coding of Bitcoin.  Others deemed 100% worthy of my trust are esteemed Bitcoin guru author Andreas Antonopoulos, along with Blockchain.com founders Peter Smith and Nicolas Cary.  For me, it was an easy and wise decision to put lots of my money into Bitcoin AFTER I researched it thoroughly.

Now, lets compare and contrast the most successful bitcoin scenarios with the least successful.  Those who sold a $300,000 Downtown Los Angeles loft to buy Bitcoin at 97 cents in 2011, would today have about $1.18 Billion. That’s Billion with a “B”. Yes, mind-boggling, so let’s that reiterate that.  It’s a simple, yet astonishing fact that $300k of Bitcoin purchased in 2011 is today worth more than $1 Billion. In other words, the seller of a typical loft in 2011 could today buy more than 1,427 lofts today had they placed their money in Bitcoin over that 8 years. Of course that number is likely a bit high after considering taxes and other costs, but we can still get the picture. Owning a loft is a uniquely wonderful thing, but just think about what it might be like to own hundreds of them instead of just one.  |  INVESTMENTS

Sophisticated investors already know, and new investors must be aware, that past performance is no guarantee of future results. That being said, recent performance is one of the key indicators that investment professionals use to determine investment worthiness. For Bitcoin and other blockchain technologies, risk is a major factor. Cryptocurrencies have high volatility, are relatively new, intangible, subject to hacking and therefore more risky than real estate. Other factors of investment decisions are interest rates (the cost of borrowing); economic growth (changes in demand), confidence/expectations, technological developments (productivity of capital), availability of finance depreciation, wage costs, inflation, taxes and government policy, opportunity cost and competing opportunities etc.

What NOT to do:

Bitcoin growth leaps beyond astounding, but the extreme downturns have been equally dramatic.  Bitcoin easily drops by 20% very rapidly, and has occasionally dropped by about 80%. Because of the inherent risk of Bitcoin and other cryptocurrencies, I recommend that nobody sell any of their primary assets to buy substantial Bitcoin.  Do not sell your primary residence to buy Bitcoin unless you don’t mind losing your home. Do not sell your retirement funds to buy Bitcoin unless you don’t mind losing your retirement. One sad scenario might be that the Yolo family sold their home along with many of their belongings, put it all in Bitcoin, then say that Bitcoin permanently drops to zero or near zero because a new technology instantly replaces it. The Yolo family said that is a risk they are willing to take.  They said they will successfully start over.  |  COMMENT

So we need to use our imagination to conceive the worse possibility.  Let’s imaging a retired couple hears good things about Bitcoin in ten years, sells their only home, along with al of their retirement funds, and they buy Bitcoin in the year 2029 at $300,000 per Bitcoin (after hearing that it was a sure thing because half the people they know seem to be getting rich trading Bitcoin), and they have no backup plan.  To make matters worse, let’s say they borrowed money that they don’t have from a loan shark so that all of their social security must go to pay the loan shark. Then Bitcoin has its big crash. Multiply that by millions and we get a doomsday scenario that very well might occur in the future, mega-depression, maybe World War 3.  Let’s avoid that.

How to Own Lots of Homes

We want you have more money to own more real estate. Now we kind of know what makes the difference between financial heaven and total crypto meltdown hell when it comes to Bitcoin and real estate. If you’ve weighed the risks and rewards for yourself according to your own needs, and you’re ready to take the plunge, here are some helpful Bitcoin Do’s and Don’ts:

DO:

  • Buy as much Bitcoin as you can afford to lose (Know the basics: Bitcoin.org).
  • Buy Bitcoin during a flat, low cycle (LIKE TODAY).
  • Sell a property to buy Bitcoin if you really don’t need that property.
  • Buy one Bitcoin or more if you have lots of money.
  • Buy less than a full Bitcoin if you can’t afford much (GET FREE BITCOIN).
  • Print and keep your Bitcoin addresses offline on a paper wallet, with one copy in a bank safe deposit box. Protect from hackers, scammers and thieves.
  • Cash out when the time is right (fill out the form below and you will get free updates that you need).
  • Use the gains to buy much more real estate.

DON’T:

  • Buy more Bitcoin than you can afford to lose.
  • Buy Bitcoin during an extremely exciting, frothy, high peak (LIKE 12/15/2017).
  • Sell your only home to buy Bitcoin if you may have nowhere else to live.
  • Fail to buy at least one Bitcoin even though you have lots of money (Get some FREE).
  • Buy too much Bitcoin when you can’t afford much.
  • Keep all of your Bitcoin in online account controlled one company.
  • Be careless with Bitcoin addresses, passwords and logins
  • Sell more than once from the same Bitcoin wallet address.
  • Hold on to Bitcoin permanently (it will eventually have a DISASTROUS CRASH, so fill out the form below and you will get critical updates at no cost).

Here’s hoping that this post helps to create lots of new awareness and wealth by revealing the risks, rewards and appropriate actions so you may take full advantage of today’s surprising and rewarding duo of Bitcoin and real estate.

Get a free list of Downtown Top 10 Best Investment Property Listings and you will automatically free updates about when to buy and sell Bitcoin.  Fill out the online form.

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. This is not an offer to buy or sell securities.  Check with a certified financial advisor before investing in Bitcoin or other cryptocurrency. Selling a home for the purpose of buying cryptocurrency is NOT recommended for most homeowners. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.  |  COMMENT

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Real Estate Market vs The Everything Bubble

Downtown Los Angeles — More signs appear that the strong housing market has begun to butt up against the bursting of a major economic bubble.

The L.A. Loft Blog recently reported that December brought the biggest U.S. stock market drop, along with the slowest Downtown L.A. real estate market since 2008. December loft and condo transactions numbered only 22 in 2018, compared to 63 properties sold during DTLA’s peak December in 2014.  The measurable weakness now shows increasing negative impact in DTLA real estate as public opinion begins to head south. #dtla #realestate

MARKET FRAGILITY

Experts who predicted the 2008 crash, permabears like Mike Maloney and free-market economists like New York Times Best-Selling author Doug Casey are all in agreement with Casey Report chief analyst Nick Giambruno in warning that the Federal Reserve is set to pop the “everything bubble.” They say it will trigger a market collapse of epic proportions. Take a look at what the Buffett Indicator says about stock and real estate markets in Mike Maloney’s Market Fragility video. #everythingbubble   |   Blog Video

VIDEOThe Federal Reserve’s current rate-hiking cycle, which started in 2015, is set to pop “the everything bubble.” If the Fed does not pop it, then something else will. #recession

James Stack also warns of inflation risk, which could cause interest rates to rise, and home prices to fall.

2018: The “Everything Bubble”

Casey Research and many others believe that another crisis is imminent…

As you already know, the Fed responded to the 2008 financial crisis by creating unprecedented amounts of easy money. Think of the trillions of dollars in money printing, but done electronically, called “quantitative easing QE 1, 2, and 3”. The Fed effectively took interest rates to zero, the lowest they’ve been in the entire history of the U.S.  Free market economics says that this radical monetary policy must eventually lead to an equally radical punishment to the U.S. economy by free market forces, just as it has for Europe and Japan. The L.A. Loft Blog agrees that there is no way to stop free market forces because, if they cannot occur openly and legally, they will happen covertly and illicitly as Venezuela has most dramatically proven every day for years.

Now, the Fed has created enormous, unprecedented economic distortions and misallocations of capital. It’s all going to be flushed out one way or another. Because of the size of the financial meddling, the result must be an even bigger crisis than 2008. The trillions of dollars the Fed “printed” created not just a housing bubble or a tech bubble, but an “everything bubble.”

For perspective, the Fed inflated the housing bubble with about two years of 1% interest rates. So it’s hard to fathom how much it distorted the economy with seven years of 0% interest rates. The Fed Will Pop This Bubble, Too.  The Casey Report predicts that this rate-hike cycle is going to pop the “everything bubble.”

The Fed has encouraged malinvestment by suppressing interest rates lower than their natural levels. This leads companies to invest in plants, equipment, and other capital assets that only appear profitable when borrowing money is cheap.  This leads to misallocated capital, along with economic loss when interest rates rise, making previously investments uneconomical. This misallocation has extended to everything, including real estate.

Casey Research sees multiple warning signs that this pop is imminent:

WARNING SIGNS

Earlier this year, the Turkish lira lost over 40% of its value. The Argentine peso tanked a similar amount. China is experiencing a dramatic slow-down, which, by some measures, shows the slowest growth since 2005. The weakness of China is also locally visible when taking a close look at slowing sales at Downtown’s Chinese-built condo projects Metropolis, along with construction delays at Oceanwide Plaza caused by a delay in funding from China..

Trillions of dollars in easy money have fueled the second-longest economic expansion in U.S. history, as measured by GDP. If sustained until July 2019, it will become the longest in U.S. history. By historical standards, the current economic expansion will likely end before the next presidential election. Recessions are inevitable. Longer expansions can fuel greater recession potential just like overfilling a water balloon creates a bigger (and unpredictable) explosion of wetness. #meltdown

Earlier this year, the U.S. stock market broke the all-time record for the longest bull market in history. The market has been rising for nearly a decade straight without a 20% correction.

Meanwhile, stock market valuations are nearing their highest levels in all of history.

The S&P 500’s CAPE ratio, for example, is now the second-highest it’s ever been. (A high CAPE ratio means that stocks are expensive.) The only time it was higher was right before the tech bubble burst.

Every time stock valuations have approached these nosebleed levels, a major crash has followed.

Preparing for the Pop

The U.S. economy and stock market are overdue for a recession and correction by any historical standard, regardless of what the Fed does.

But when you add in the Fed’s late rate-hiking cycle – the same catalyst for previous bubble pops – the likelihood of a stock market crash of historic proportions, before the end of Trump’s first term, is very high.

That’s why investors should prepare now. One way to do that is by shorting the market. That means betting the market will fall.

Simply put, the Fed has warped the economy far more drastically than it did in the 1920s, during the tech or housing bubbles, or during any other period in history.

The Casey Report expects the resulting stock market crash to be that much bigger.

Swiss Bank UBS says that many markets are already overvalued including Los Angeles, San Francisco and New York, while Vancouver is at the greatest bubble risk reports Visual Capitalist. Toronto has already been cooling for more than a year.

LIQUIDATE EVERYTHING AND MOVE TO CASH

In a panic, stock owners can now hit one button to liquidate everything and move to cash.  This works for big Wall Street firms who execute trades automatically in microseconds, but the typical small-time stock owner will experience delays and other costly setbacks during a major market drop.

All markets, including real estate, are affected by recessions.  Selling a home is a process, not an event.  Because selling a property usually takes many weeks or months, cautious homeowners must consider cashing out or downsizing early, before a panic can knock down home prices.

Get a free list of the best DTLA investments, including Mills Act Lofts and just listed properties. Fill out my online form.

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | Popular | Luxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Silicon Valley / San Francisco Price Cuts Spike
Silicon Valley / San Francisco Price Cuts Spike

Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com  Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.