if you have a lot of your wealth tied up
in crypto and you wanted to buy home up until
now, you basically have to cash out of your
crypto and then get cash and then you could go
through the regular process of applying for a mortgage,
but there's now new companies, new startups that enable
you to get a mortgage with your crypto. Can
you explain how that works? Right? So as
you said, you would normally have to convert your
crypto into dollars, which a lot of crypto enthusiasts
don't want to do because you have to pay capital
gains on that money. And you know, people
who are really all in on crypto are convinced,
you know, hold on for dear life that it's
gonna keep rising and so they want to keep their
coins and they're betting on the, you know that
this is the future. So what this product does
is allows the holder to simply put up their digital
assets as collateral and they get to keep their coins
the lender, the one we profiled as one called
Milo credit and um keeps it a custodial account.
But the crypto holder essentially, you know, hangs
onto the coins, doesn't have to put down a
down payment. They continue to make monthly payments as
they would with a regular mortgage with crypto or dollars
, but they're essentially getting what they see as the
best of both worlds is getting to hang onto crypto
while also buying real estate and potentially, you know
, capitalizing on the rising value of real estate as
well just in the last 40 seconds that we have
with you. What happens if the value of the
asset just crashes Bitcoin. Yeah the krypto that's backing
up this mortgage right? The borrow borrow will have
to put up more money. So there's a loan
, you know, crypto value to loan ratio amounted
to about 65% that the person, the person will
have to put in more money to the lender milo
. And you know, if all your money is
tied up in crypto and that money has fallen in
value, then that's gonna be a problem. So
you know, they want to make sure you have
extra cash on hand. But yes, the potential
is if it's a fallen value, you're going to
have to keep putting more into the lender before they
eventually seize the assets. So it's kind of,
you know, it's meant to be a mentor the
diversification plans to put it all in on crypto.
Okay, so we said what could go wrong And
that that's one thing that could go wrong. You
mentioned Milo credit as the start up that offers this
kind of mortgage, what did they do on their
end to make sure that they spread out the risk
they are funded with venture capital. They have money
to start doing this but there, you know um
still getting paid when these mortgages like a traditional lender
so they'll get monthly payments. So that would be
, you know money that's coming into the company.
Um and that money could be in dollars, or
it could be in crypto. So it's, you
know, the the idea is that, you know
, through the more borrowing that they do, the
more money they'll collect and they'll have enough of a
cushion to um protect against these declines if they happen
. Well, it's certainly a piece that it got
us thinking today.