Those who have been in real estate for a while, who have a few houses/apartments that they have been renting for years, they believe in the future of real estate.
Those who gotten into bitcoin and cryptos. Who bought bitcoin for $100, or even for $1000. These people believe that bitcoin is the future of money.
Is either one right? Is either one wrong?
The future is certain, but the now, is a bit tricky.
Real Estate as an investment
Right now, while fiat and mortgages still exist, real estate is a great tool to leverage your money. It is also one of the best ways to lower your tax burden at the same time. When you borrow money to buy a house, the borrowed money is not earned income. And the interest payments can be deducted. The entire real estate package is really good, well laid out in the IRS manuals, and it is like the govern-cements want their friends to avoid taxes.
The banks love to lend on real estate. Its like they can just print money to hand to you, or something. All you have to do is show that you can positive cashflow the rentals you want to buy.
And that word, cashflow, is the best thing about real estate. When you got it all working, you get a check every month. You get money every month, where so few other investments do that (without selling your assets for cash each month)
Bitcoin as an investment
Except for the huge increase in value, bitcoin has been a sucky investment.
Getting in and out of bitcoin. Getting your bitcoin onto the exchanges, selling it. Getting the exchange to send money to your bank, waiting for the transfers. It is a logistics nightmare. And then, the tax implications are scary.
However, can you name another class of investment that has 10x, 100x? There is nothing even close. And the biggest moves seem to still be in the future.
But, this is all based on today. Tomorrow, bitcoin might be money. Meaning, you can just spend it. Making it, the most liquid and best performing asset.
Right now, you have to sell some off, if you want a check each month.
Bitcoin is just a difficult investment right now.
The future - real estate
This is where everything breaks down.
It doesn't matter how bad bitcoin does, real estate is going to do worse.
Suburban house are going to go to zero. Not much longer will you be able to rent houses. However, if you set things up correctly, in a corporation/LLC, when everything goes to shit, all the bank can do is take what is in your corporation. If the real estate market crashes 50%, just give the bank back all the houses. Hopefully you took our your equity through loans or loan restructuring.
Things are going to get bad in cities. Expecting rent to continue, is a fools gamble.
But, if you have everything in an LLC, there is no reason you shouldn't ride this thing into the scene of the crash. It is almost to late to get out now.
The future - bitcoin
Bitcoin will probably outlast the IRS and the govern-cement. So, at that time, and you can wait, you will have money that will be worth A LOT, in a world where fiat has gone away. It will be the BEST INVESTMENT EVER, in this scenario.
But, before then, as we get more clarity about what bitcoin means, in IRS terms, (come on Clarity Act) it will become a more mainstream asset.
We will see methods of borrowing against your bitcoin, without really giving it up. So, you can get monthly payments while selling off the increase in value of the bitcoin. This will by YUGE! As long as fiat exists and banks can just print money.
And, after fiat crashes, bitcoin will still be money. Which is a really good reason to stash some of your money in bitcoin. When stocks, bonds, fiat all crash and burn, bitcoin will be what is left.
If you are in real estate right now, you may want to get your LLC set for the coming housing crash. Pull out all your equity. But, if you figure you should sell some houses to get into cash, you will probably find that you need to drop the price 20-50% to get the house to sell.
If you are not already in real estate, i would stay far away from it.
Bitcoin will continue to outperform all the other markets. And you don't have to deal with the headaches of renters and repairs. So, why would you invest in real estate, when you will lose money and have more headaches, when bitcoin will just sit there in cold storage.
Bitcoin will win, as real estate goes to the matt in the 5th round. But, what will you do in this immediate time? If you can find good property for cheap, and fix up the place, and buy it with credit, you can still get that beautiful cash flow. But, but, we do not have long now. And then we see houses vacant everywhere.
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