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You are on your way to understanding the stepwise conversion process of real estate equity to bitcoin.

As you know, equity in real estate is the difference between the market value of a property and the amount owed on the mortgage. In other words, it is the amount of money you would receive after paying off the mortgage if you were to sell the property.

For example, if the fair market value of a property is $200,000 and a balance of $150,000 remains on the mortgage, the equity would be $50,000 (less costs at closing).

Investment real estate equity is "parked" or "dead" capital, exposed to market risks and the effects of out-of-control inflation and the latest governmental interventions.

Traditionally, equity in a property is considered safe, yet it is not without risks, and history tells the tale.

For example, not so long ago, during the economic crisis of 2008-2009 many property owners lost billions of equity.

Market conditions can lead to periods of steep gains or losses in equity. Rapidly rising property prices can contribute to significant equity increases for property owners shown on their balance sheet, while plummeting property sale prices can dissolve apparent equity.

The true value of a real estate investment is established by measuring cash flow, and the terms by which you control the property.

When rental income does not increase at a proportionate rate with respect to inflation, the "equity" calculated is not accessible because the income from the investment will not support a refinance loan. This may be called "trapped or locked down" equity.

When interest rates fluctuate, your investment property equity "wealth" becomes less and less accessible. All indications are that rates will most likely go up. Raising rates is a financial tool the Federal Reserve central bank uses to attempt to curb inflation.

It's important to carefully consider the potential risks and benefits before relying solely upon real estate equity as a store of wealth. Yet, many are holding onto the idea that the safest path to a legacy of wealth is the "American Dream" of owning real estate.

How safe and accessible are the billions parked in empty shopping malls, office buildings, and under-market rent rate investment properties?

The advantages of converting real estate equity to bitcoin (BTC) as a wealth preservation strategy and legacy asset are:

• BTC has demonstrated the ability to outperform most assets in the legacy system over the past decade and it is likely to continue doing so.
• Bitcoin exhibits the qualities of sound or "hard" money as a transferable asset —
  • scarcity,
  • durability,
  • divisibility,
  • portability,
  • and fungibility — the intrinsic ability to exchange an asset with other individual products or assets.

As DIGITAL PROPERTY bitcoin is like no other monetary asset in history.

Accumulating bitcoin as a legacy asset means choosing to leave an inheritance behind as "digital property." This is a strategy that can solve many wealth transfer problems for those who are left behind.

1. Bitcoin is accessible worldwide and instantly transferable without having to wait months to gain access to frozen accounts.
   
2. It is important to engage the heirs of your family estate in the custody of bitcoin.
   
3. With a bitcoin legacy plan you will empower your family to approach the evolving financial landscape with confidence about your family's future
   

Lesson Summary

In this course, you have learned introductory benefits for conversion of real estate equity to bitcoin (BTC). Equity in real estate is the amount of money that a person would receive after paying off the mortgage as they sell the property.

Real estate is generally considered safe but carries some historical risks:

• Unexpected insurance and property tax increases
• Special assessments
• Destruction from natural disasters 
• A decline in the surrounding location area
• The impact of inflation on construction and replacement costs
• Rising interest rates making a refinance for an equity withdrawal unaffordable and inaccessible
• Excessive tenant repairs or vacancies coupled with ongoing maintenance costs

Converting real estate equity to BTC has several advantages:

• BTC has a track record of outperforming most assets over the past decade and is likely to continue doing so,
• It displays the qualities of the "hardest" money, such as scarcity, portability, and durability,
• As digital property, it holds more value than other money and can be effective as an inherited asset,
• It is accessible and instantly transferable.
• It is the only decentralized digital currency ever created, free from corruption by criminals and uncontrollable government policies and actions.

Engaging heirs with the custody of bitcoin can educate and empower families to explore new financial options.

Congratulations! You are near the completion of your lesson.

Now, take the short, fun review quiz below, and then you are on to your next lesson.