You’ve been in the flipping business a while now, thanks to your New York fix and flip loans. But as you look at the possible trends in New York fix and flip loans, you start to wonder about Bitcoin.
“I mean, if tech is on the rise, why not Bitcoin?” If you want to know how Bitcoin and cryptocurrency will fit into your investment future, read on.
Before we get into how Bitcoin or any cryptocurrency factors into New York fix and flip loans, lets first go over the basics.
Bitcoin is a type of digital currency. This means that unlike paper money and metal coins, Bitcoin only exists online. But that’s not the only difference. Bitcoin is also decentralized.
How? Think of it this way:
Let’s say you’re going to buy some paint for a house your flipping. You hand over bank info at checkout, and if you have enough money, the transaction is completed and recorded on your account’s ledger.
It’s the same with Bitcoin with one huge difference. Instead of being recorded on one ledger, the transaction is recorded on many copies of the same ledger. That way, any odd activity in one ledger is compared to the others. If the ledgers don’t match, the odd activity is rejected.
This is only one of the reasons why Bitcoin is gaining popularity.
While not a lot of brick and mortar business accept Bitcoin right now, that is rapidly changing. According to market website FXCM, McDonald’s, Walmart, Amazon, and even British Airways are planning to use cryptocurrency payment systems in 2019.
But Bitcoin could change more than just retail markets. According to a Forbes article by Matthew Murphy, cryptocurrency could cut out the middleman.
Real estate deals are often finalized in person at the escrow or lender’s office. But because Bitcoin’s transaction recording software (called Blockchain) is seen as un-hackable, you wouldn’t need any third parties to finish the deal. In fact, using Bitcoin could avoid more than middlemen.
Last year China installed capital controls so Chinese nationals couldn’t invest in real estate properties overseas. They assumed this would bolster their economy and stop China from being one of the largest foreign real estate investors in the U.S. It didn’t.
Instead, investors turned to cryptocurrencies because it’s currently unregulated. By using Bitcoin, people in China have circumvented the law to invest in American real estate.
On March 31st, 2018 the NY Post reported that Ben Shaoul, of Magnum Real Estate Group, finalized the sale of two condos using Bitcoin. The sale was completed using BitPay. BitPay then paid the appropriate parties in cash.
Millennials make up about 34% of home buyers.
While this seems exciting, it’s important to remember that Bitcoin is still new to the real estate industry. So if this is your first time getting New York fix and loans, it’s best to wait until you’ve completed a few flips.
However, if you’ve got experience and want to see what Bitcoin can do, millennials are key. Real estate news outlet The Real Deal reported that millennials make up about 34% of home buyers. And millennials are getting interested in cryptocurrencies like Bitcoin.
So if you’re using fix and flip loans to flip a house with younger home buyers in mind, consider mentioning you’re OK with Bitcoin contracts.
If you want to get New York fix and flip loans, look no further than Gauntlet Funding.
Gauntlet Funding offers the most competitive rates in the market for prime borrowers with no prepayment penalties. We have an organized, transparent system that will get you funded in little time after you have undergone the approval process! Contact Gauntlet Funding today at (631) 465-2161.
Is Cryptocurrency the Future of Real Estate Investment?| Gauntlet Funding – Melville, NY