We've been banging the table for our real estate clients to add BTC to their lives for years now. And as we all know it's tough to get people to understand Bitcoin initially.
Anyway we may have cracked this a tad by using what they understand.
We started to share this example and the feedback has been good.
Let's say you have a rental property worth about $750K (yes, that's really a standard CAD fiat price for one in the Greater Toronto Area) that generates $475 in positive cash flow.
Now remember, these investors do not want to sell their real estate (yet!) .... they consider it risky. So we're presenting this:
Take the $475 in cash flow and use it to get a credit line secured against the rental. At 5.7% rate here in Canada that gets you $100K, then buy Bitcoin with it.
You now have a $750K property.
And $100K in BTC.
After 10 years:
Property Value at 7% CAGR (historic rate) = $1,378,844
Bitcoin value at 24% CAGR (low 4-year rolling CAGR) = $693,098
Combined Value = $2,071,943
After 20 years:
Property Value = $2,712,395
Bitcoin Value = $5,956,786
Combined Value = $8,669,181
So for $475/month that they property paid for they totally changed the return on the one rental property.
You almost double the CAGR of property from 7% to 13.75% over 20 years with a simple $475/month credit line payment invested in BTC.
The feedback by some of our most serious investors has been instantly profound, almost like they finally "get it".
Anyway just sharing in case this is useful. @Leon it's basically a take on what you've been presenting just reworked a tad for a smaller single family home rental that is kicking off some positive cash flow. So thank you for the inspiration here.
We'll have 1,100 investors or so out to a client event in April so we'll test out the messaging further there.
