Bitcoin and real estate - how to use bitcoin as a financing vehicle.

Bitcoin and real estate go well together. Both are attractive assets. And both can serve as collateral for financing. Get an attractive source of financing with Bitcoins and benefit from the double appreciation of your assets. 

Bitcoin and real estate - how to use bitcoin as a financing vehicle.

Whether you're looking to finance an entire home long-term or just the down payment short-term, crypto financing is a great option for people who need to access the value of their digital assets but don't want to miss out on the potential future appreciation. We're also talking about equity release here. And thanks to the blockchain, it's never been easier to do an equity release. Find out how to do it and which providers are available in this article.



This article is not about solutions like security token offerings within a distributed ledger. These solutions are not yet regulated and are therefore so far, in my opinion, merely interesting constructs, but only in theory. Not in practice. Many countries, including the US, China, South Korea, Saudi Arabia, Russia, the Philippines and Singapore prohibit their citizens from participating in ICO's.


And if you want to avoid stress with the German tax office, you'd better keep your hands off STOs in German real estate. Luxembourg is already further ahead. I will be happy to discuss this issue in an upcoming article. Readers should refer to a white label portal in Serbia, which deals with the technology and in my opinion offers a very favorable pricing model for the tokenization of a property: TokenMint. Unfortunately, I am not allowed to link to this provider, because according to my lawyer, this is problematic. As I said, crypto is still new in Old Europe. STOs would be an optimal way to raise debt capital. But it's still not regulated today.


So after this short digression, back to the question of how you can use Bitcoin as a financing vehicle.


Bitcoin as a guarantee of value?

We are talking about "regular Bitcoins" here. You already own Bitcoins and are happy with them? You are happy about the price development and don't want to sell, but still like to cash out profits (Cash Out) and therefore use Bitcoins for your real estate financing? Or you would like to finally buy Bitcoins but also realize the real estate dream? My friend Markus Miller has set up an ATM in Palma de Mallorca where you can deposit money and get Bitcoins easily. Just look in Son Rapinya, coming from Palma going to Son Vida. There you can find his Bitcoin ATM.


So now you own Bitcoins and you want to get credit on them.


In 2018, there were many providers. But the market was still totally wild, totally unregulated. Anything but trustworthy! Even if you are looking for a loan: the most important thing is security and seriousness. After all, you want to deposit YOUR Bitcoins as collateral. But if the custodian is unsafe, what happens to your deposited assets? So it's best to look for established providers. 

As an Affiliate, I have two contacts for you here, one in the EU, the other in the USA. 


The best thing right from the start: loan approval and disbursement happen automatically, thanks to the blockchain. This ensures that the contract with the bank is clean and transparent. Of course, not only your Bitcoins are considered as deposited collateral. But you can also use Ether and Litecoin to buy a house, pay off debts or even finance your business without having to sell your cryptocurrency. Start your application and get your loan in just 90 minutes. And a European provider with EU approval will even approve you for an instant loan!


Home loans are complicated, complex and slow. Not so for cryptocurrency holders. For them, using Bitcoin (BTC), Ether (ETH) or Litecoin (LTC) is a great way to put money into a home without having to sell it.


But beware: for many banks - maybe even your local bank - cryptocurrencies are "the devil's stuff." If the bank gets wind that you are holding cryptocurrencies, they will often even terminate your bank account! This is no joke!

So be sure to check before you apply if your bank can deny the loan just because you own crypto assets like Bitcoin or Ether.

Once you've cleared that up, the crypto loan goes the same way as a traditional Lombard loan on mutual funds or stocks: you put your cryptocurrencies as collateral for a FIAT loan and get your assets back once the loan is paid off. It's that simple. Click here to learn more about how BlockFi loans for USA real estate work.


CoinLoan is probably the first port of call for most in Europe when it comes to financing. Unfortunately, CoinLoan is not cheap. There is a processing fee of 1% per loan application. One knows that from classical FIAT banks. But there is no limit on the amount of the loan. My tip: apply for maximum amount and maximum term.


Advantages of CoinLoan:


  • Instant loan, no processing time. This means immediate payment to your account.
  • Loan in various currencies, including FIAT EURO.
  • LTV up to 70%. That's an excellent loan-to-value ratio. And the best: you can lower the LTV at any time, even if your loan is still running.
  • Long maturity up to 3 years. After that, you can apply for a new instant loan.
  • Interest Only Loan on demand: you pay interest only each month, so you already own a low monthly charge.
  • Interest rate record low, starting at just 4.5%.

Here you find my Affiliate Link there you can calculate your loan.



BlockFi is a US wealth management provider. Learn more about this financial services provider here (Affiliate Link)


Diversify your investments


The advantage of BlockFi is that you can also earn money with your coins by lending them to BlockFi. You will then get up to 8.6% interest. Or you just take out a loan. Then you pay interest from 4.5%.