The Stealthy Rich

Sold another house. This one we held for 10 years. Happy to be done with it. Took all the proceeds and saved some for taxes and rest went to bitcoin. Q4 is going to be lit.

This one averaged like 8 percent t gain a year which happens to be the actual inflation rate over the years. Makes sense! Means we have basically treaded water.

Sold house 59.

It more than doubled in value over 8 years in dollar terms, but lost over 84% in bitcoin terms.

Remember that stupid tree I was telling you about? Well part of it decided to come down in a crazy Windstorm yesterday. My goodness. It hit this house but not too bad. Missed the AC by a foot. Lucky. Trying to get the whole thing down in next few days. Probably about 3k. repair was done in a few hours and cost 1150.

Trees are bad ummmkay

Houses for sale in South Padre Island, Tx. Crazy inventory. Is it an AirBnb bubble? An insurance skyrocket nightmare? I’ve never seen this much inventory come online at once. For now it seems location specific across the country.

This should be fun. 1.7 trillion or 1.2 trillion in interest expense in a year. Our revenue is 4.8. So that’s about 33ish % to interest alone. Yikes!

Well, the housing market is officially frozen. Mortgage apps down to almost 30 year lows. Who would want to trade a 3% mortgage for a 7.5% one?

How long do you think we will be on ice?

This right here should be enough to make people see the power of BTC. Over last 10 years we’ve all felt real estate get “more expensive” in dollars. Home ownership seems out of reach for most people if they aren’t already an owner.

However, if you look at real estate through the lens of bitcoin, homes have gotten less expensive. Wild right? Of course most people didn’t have Bitcoin in 2016, (Including me) but if you bought some over the last few years you are in the black in a big way. No doubt bitcoin is very volatile as we will show, but overtime it will go up. (Just like real estate has historically). This is due to more and more people adopting it and that the supply of bitcoin is capped at 21 million. Right now we are at about 1% adoption, so like the internet in 1997.

So why are people buying a digital asset you can’t m see or touch? It’s because the other side of the equation, the “dollar”, is being debased at a rapid rate, thus pushing the value of real assets up even more. People don’t want to see their time, their productivity be devalued in a currency that is trending to zero.

When dollars become plentiful, all the things you care about become scarce.

It’s true… we’ve been out of the system for a bit. It’s truly cause we are in the most complicated and rewarding parts of our family lives. Graduations, college apps, teaching kids to drive, broken bones, family trips, boat days, sport practices. The lists seems endless and magical.

However, our real estate empire continues to creep forward. We have some stories to share since we’ve last been on, but largely we have just had the whole thing in autopilot and it has been glorious.

However in the meantime I’ve also spent hundreds of hours researching and adopting bitcoin. This isn’t to say I’m now anti real estate. I just want to make sure I understand what I think is coming next, and bitcoin is definitely not going away. So I’m in for the long term. I can’t leave an appreciating asset alone! So you’ll probably being see a meld of the two asset classes from us going forward. I’ll take all your comments about it, but I’ve been officially “oranged pilled” for a while now…

Just watch the dollar and the fed over the next 6 months, and you’ll learn more and more how it’s going to be an attractive life boat.

Here’s an update through November. Pretty much on autopilot now. We sold a house in q3 (hence the lower principal payment) it will really start to crank over the next couple years as we get to the middle and latter part of the amortization curve. In real estate Boring is good!

“Not great, Bob!”
This is showing consumer spending over time. We trending in the wrong direction. No way a “soft landing” is in the cards now. I just hope our renters can survive what is coming. Selfishly I hope in about 18 months the Fed reverses course and brings rates back down to something “normal” to us. We will see!

What do you all think is going to happen?

Let’s go! Time to mail again. We want to go nuts. Been a long time. Time to start the fire again.

These yellow letters have made us so much money over the years. Let’s hope we got a little left in the tank for one last hurrah…