Ehh.. you seem to have thought of this deeply enough, and I'm pretty sure you already understand the risks anyway. While I'm personally not a fan of using my bitcoin as collateral for anything, you do you. In the first place, only you yourself understand your knowledge, expertise, and how good/bad you are in general with real estate so we really can't encourage/discourage you.
Personally, I prefer starting(and growing) small, low-initial-capital businesses. But then again, that's just me, and the "best" ways of earning wealth is going to differ from person to person.
So low-initial-capital businesses would be like online reselling, youtube channel/streaming, 3D printing trinkets, shit like that? Giggish stuff?
Using cryptocurrencies as a collateral to get a loan and buy real estate seems like a very risky and stupid idea to me.I don't know about websites,that accept crypto collateral for fiat loans.Do you know any?
1.Cryptocurrency prices might crash.You need a collateral that has a really stable price/value.
Getting a mortgage is a better option.
2.Everything in the real estate business is all about one thing-location.Buy a property at the wrong location and you are done with this business.Real estate isn't that easy and you will have to learn.
Yea, there actually alot of companies that offer that service. Salt is the only I can think of off the top of my head but they exist. Also, this loan would happen years in the future when crypto has basically proven itself or failed. Only in the former would I get the loan and it would be much more stable then...and Real Estate isn't easy by any means and I'll be spending money on education for that as well but it seems like the lowest risk with the highest reward as far as financial strategy is concerned.
I would not take loans using cryptocurrencies as a collateral. Especially not if I'm expecting to get a property using loaned money because I might end up getting loans for loans rather than paying my first one and owning the coins and a property.
Fiat is more unstable than it looks. If you look at how fiat moved along the years, you'd see that some of the national currencies are falling, some are standing.. but in the end, your money is only going to only keep losing value. I can't call it a safe bet to get loans when you never have the safety that someone will actually rent your place. And when, during a crisis, you won't have the place rented no more, how will you pay the money you owe?
We're quite close to a big, big crisis and that puts real estate under risk. I would actually rather count more on something new such as Bitcoin than real estate because I know that, as a matter of fact, during recessions a lot of people will lose money and have no more budget for rentals.
Now.. why should you purchase rather than borrow? Here's the trick: the chances of ending up with both are actually quite slim! Otherwise, banks would run out of business. When you think about borrowing money from criminals (banks), you should be already contemplating how you'll be able to pay it back not only today, tomorrow or 1 year from now. Are you sure there will never be an unfortunate event until the end of the loan that will make it impossible to pay it back, hence making you lose?
I hate loans. I hate banks, and I will never agree that loans are good ideas tbh. The main tip I have for you is, think about it over the longer term.. is it worth the double-risk? Giving collateral a very unstable asset to borrow money for a property you're not 100% sure you're going to actually own in the end?
"....during recessions a lot of people will lose money and have no more budget for rentals."
Then where are they going to live? RV's? Their cars? Like we have a homeless problem sure, but if people go into debt for one thing consistently, it's housing.