USDC.homes - Crypto Mortgages for the Future
Every day it's becoming easier and easier to live off your crypto wealth.
USDC.homes
I'm a huge supporter of any project or company that's trying to make it easier to live off your crypto. We've got Coinbase and Bitpay (plus a number of other companies) offering crypto debit cards. We've got collateralized loans from DeFi platforms, and companies like Strike using Bitcoin's lightning network as a payment rail to replace credit cards. There's so much good shit going on in the cryptocurrency space that it's hard to keep up. It's also hard to not be blinded by the scams and other bullshit.
USDC.homes is a company that is bringing cryptocurrency to the real estate game via uncollateralized crypto loans. This allows users to take out loans based solely on their credit scores and crypto holdings. One major key here is that you can borrow up to 80% of the purchase proce of a home, up to $5 million and your down payment is staked. The staked down payments earns interest and that offsets the 5.5-7.5% interest. This is decentralized finance meets real estate. Truly bridging crypto into the real world. Mindblown.gif
This creates an opportunity to put your crypto to work by getting a loan to purchase a house without selling the crypto. Now you have avoided paying the capital gains taxes and you're able to pay the loan back in either crypto or fiat. Imagine buying a rental property with crypto without having to pay taxes on it and then renting it out to pay back the loan. That's like the ultimate cheat code. Then rinse and repeat.
This also creates a more inclusive option for people that might not qualify for traditional mortgages. Have bad credit but a good amount of crypto? Cool. You can still get a mortgage by paying 20% down on the total of the loan in crypto. Living outside of the US and don't qualify for traditional mortgages but want to invest in real estate? This project enables you to do so.
The first ever home purchase with a USDC.homes mortgage recently happened in Texas. We've started to see things like this happen, with an $8 million loan issued with NFTs as collateral. Yet another way someone can take advantage of their crypto wealth without the insane tax implications of offloading a large amount of crypto. The only major problem I see with USDC.homes is... What if someone pays the 20% down and defaults on the loan?
Is it going to wreck their credit? Will the property be liquidated? I'm sure there's some things in place to prevent people from abusing the system. These are just some of the things that come to mind because we live in a reality where people are going to abuse systems until they can't. Currently this only exists in Texas, but I could see it expanding rapidly with the right kind of marketing and enough businesses becoming lenders.
This is really a great option for anyone looking to use their crypto to enter the real estate market. Buying a personal home is one thing, but taking advantage of this to buy investment properties is the real cheat code. Fuck taxes, pay with crypto and use the rental income to pay off the loan. Plus the downpayment is earning interest in the background. It's a win-win situation really.
What do you think?
Thanks for reading! Much love.
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Posted Using LeoFinance Beta
I wouldn't want to be an early user of this as I would like to see a string of success first, but the concept is genius
Oh yeah. They have to prove themselves before a ton of onboarding happens.
Posted Using LeoFinance Beta
Still a crazy thing to think about, I hope they find some success, I'd get involved down the line if they do
It'd be irresponsible not to get involved at some point, at least if it works out.
Posted Using LeoFinance Beta
Agreed, I'll be keeping an eye on how things develop on that
https://twitter.com/LeoAlpha2021/status/1519456202539024384
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This sounds too good, let’s see how sustainable it’s going to be
That's the first thing I said. I'll be watching.
Posted Using LeoFinance Beta
This is the key.
Investing in income generating digital assets and living off what they generate.
Never actually selling your underlying investment.
Posted Using LeoFinance Beta
This is awesome. Soon this will become commonplace.
I can't wait until the day when the deed to your real estate is an NFT.
Posted Using LeoFinance Beta
Now that will be fucking awesome. One day!
Posted Using LeoFinance Beta