Purchase Real Estate with Bitcoin

By | Buyers, Economy, Sellers, Sonoma County info | No Comments

Image source https://www.flickr.com/photos/100239928@N08/

An article on August 8 in WSJ online caught my eye: Lake Tahoe Property Sells for $1.6 Million in BitcoinsBitcoin is a software-based online payment system, a digital currency. Here is other article about this transaction in Martis Camp’s Lodge Estates. The transaction was paid using the bitpay service. 

At first it looks unusual but from a transaction perspective it is  more like a cash transaction. Instead of dollars, euros or yens, bitcoins are used. Similar to when paying with ‘foreign’ currency, an exchange rate is used. The property in Lake Tahoe sold for 2,739 BTC which was at the time appr $1,6 million.Dutch Euro

What currency or method is used to pay for property is something to agree upon between the buyer and the seller. Whether a buyer uses a mortgage, pays cash, uses a digital currency, or even an exchange -for instance an other property of equal value- doesn’t matter as long as the  parties involved agree and the method of payment is legally acceptable. Of utmost importance is to check with a CPA/financial advisor for tax consequences and an attorney as to possible legal consequences.

Bottom line: whether or not paying in bitcoin does not make a whole lot of difference to a transition as a whole. Buyers do their due diligence – the standard time for inspections etc in our local contracts is 17 days-, sellers do their due diligence -in this case whether the method of payment is acceptable – and upon agreement the deal closes.


Refinancing your home – beware of scams

By | Mortgage, Sonoma County info | No Comments

How many letters with offers to refinance your homeMailboxes did you receive in the mail last week? Was one of them from the bank your current mortgage is with? The last one seems like a good option to refinance your loan. There is the promise of an easy process and you would think there would be less paperwork involved… NOT.

Recently I am hearing more and more homeowners frustrated by their bank: the promise of less paperwork, less hassle is an empty one. You will end up working with a junior loan officer who quite frankly doesn’t have the wherewithal to help you with the process.

BETTER option: contact your favorite mortgage person, or if you don’t have one, ask your realtor. First of all, working with a lender who knows what he/she is doing is not more expensive – I have done the math- but more important, you are sure you have the best mortgage product that suits your situation. Besides this, the whole process less frustrating, as a matter of fact it will be a pleasant experience.

Locally, yours truly can highly recommend a few local lenders who are really good at what they are doing, one of them is Darren Seliga, he is a Mortgage Broker. Just give him a call and tell him I told you to do so. His phone no: 707-577-8737.