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Why You Should Consider Offering a VTB When You’re Selling Your Property



When economic times are good (real estate sells quickly, employment is rising as are incomes, all is well), you often see fewer VTBs. This is because the access to credit (getting loans/mortgages/lines of credit) is often “easier” and houses are selling at a steady to fast pace. Vendors are not as willing to carry financing because it is not as difficult to sell their house. BUT, and this is a BIG BUTT, when the economy is slowing, access to credit is more difficult, and properties are not selling as quickly, Vendors may be willing to get more creative in order to unload that property.

What is a VTB some of you may be asking? In a nutshell a VTB is a Vendor Take Back mortgage or loan. It is simply where the seller (Vendor) of a property is willing to provide some or all of the mortgage financing on that property.

But – if you’re selling a home – a potential VTB holder, it’s important to understand there are plenty of other advantages to holding a VTB that make it attractive whether the housing market is hot or cold.

You will often see investors more likely to hold VTB’s than a regular homeowner just trying to sell their house. This is because investors “get it”. They will likely know what a VTB is and know the advantages, both for themselves and for the buyer. In tough times, a VTB might make it easier to unload a property. But at any time, a VTB can allow a seller to make some additional money on the house by charging interest on the loan, as well as potentially defer some taxes.

Why earn 2% in a “high interest savings account” at your bank when you can earn 7% or more on your VTB?

But, there is risk involved with carrying “paper”.

VTBs are usually in 1st or 2nd position as a mortgage. If you, the VTB holder, are in first position you will get your money out first (assuming they don’t owe the government anything – because the government gets their taxes first!). You also are often able to get closer to your asking price when you offer a VTB. This is because the purchaser has fewer hoops to jump through, lower costs involved with purchasing (no appraiser is required, no lending fees to pay, less time involved seeking financing), and will often be willing to pay a higher price.

Second position has a few more risks. If you sell your property and your purchaser either assumes the current mortgage or brings in their own new lender but the purchaser wants to have higher leverage (increase the loan to value), they may want a VTB in 2nd position (behind the 1st mortgage lender).

Now, if you (the Vendor) are willing to hold that VTB in 2nd position, that means that you ONLY get your money back AFTER the 1st position Lender gets ALL of their money out first. This is only really an issue in the case of default, and foreclosure, but it certainly can happen! So, you need to think carefully whether you want to put yourself at risk.

So, why would you hold a 2nd position VTB?

  • You cannot sell your property any other way (i.e. the property is “ugly” and needs a lot of work, banks aren’t lending, purchaser can’t qualify for enough financing)
  • There is enough equity in the property even after holding a 2nd that you are somewhat “safe” and can earn a nice return
  • You know the property – because you used to own it – and feel comfortable making a loan secured to that asset
  • In second position you can charge a higher interest rate because there is more risk in the second position. So, instead of charging 7% in 1st position you can often ask for 8, 9, 10 or more percent interest. Of course it all depends on the other terms but you should be earning higher interest than the 1st position mortgage is charging
  • You would rather loan to a qualified Purchaser at a nice interest rate than put your money in a crappy low interest bond, GIC, or unpredictable stock/mutual fund
  • You want to delay Capital Gains taxes until the VTB is paid in full (you don’t pay Cap Gains taxes on any VTB loan amount until it is paid in full – but of course – I am not a tax accountant so be sure to consult your accountant for the nuts and bolts on that subject!).

So, you can see, there are many reasons why someone may hold a 2nd mortgage as a VTB.

And in some markets where people are struggling to sell it might be something to consider offering.

Of course the lowest risk for you holding a VTB is in 1st position, but the challenge with that is unless you own the property free and clear from any current debt you probably won’t have enough equity to offer the buyer a mortgage large enough to put you in 1st position. Which means you’ll often have to be happier with the riskier but more lucrative second position.

VTB’s aren’t the solution for every seller, but many folks are looking for ways to reduce their tax bill and still be rid of a property. Others would like to find a way to bring in secured income every months. And for some other sellers it is just a way to sell an otherwise tough to unload property. Vendor take backs provide an excellent solution for these types of sellers. And of course, they are a wonderful thing to find as a real estate investor – so always ask the sellers if they will carry any financing!


Famous Futuristic George Gilder Weighs BSV Over BTC at Summit



Bitcoin (BTC) Prices Hold Steady After a Severe Turmoil
  • The Summit is held annually to help investors discover new market trends.
  • Gilder highlighted the advantages of BSV over BTC to the current issues.

As per renowned futuristic George Gilder, a “dynamic Bitcoin” that has “really created a miracle in recent months,” BSV is on the verge of becoming the de facto standard for all global currency in the next five to ten years. The Famous futurist gave an online “Six Predictions Summit” presentation to a group of financial experts, highlighting the advantages of BSV over BTC as the answer to the current economic and technical issues.

Framework for New World Order Required

According to Gilder, “immutable, unhackable” Bitcoin and the blockchain have produced freedom from political control currency. “Dual hacking crises” (technology hacking and economic hacking) affect today’s globe. Still, they may be addressed by establishing a new global economy and laying a framework for new world order.

The Six Predictions Summit is held annually to help investors discover new market trends. Due to current travel and other constraints, this year’s event was hosted online instead of in person. Renowned investing trend spotters Jim Rickards, James Altucher, Ray Blanco, Zach Scheidt, and Alan Knuckman joined hosts Doug Hill and Matt Insley on the show.

George Gilder has referenced Bitcoin’s “digital gold” myth at several points. Aside from noting that “the original Bitcoin, BTC” and Bitcoin Satoshi’s Vision or BSV are distinct, he reaffirmed gold’s usefulness as a long-term store of wealth.

Gilder said:

“Bitcoin Satoshi Vision has really created a miracle in recent months, rather than the static Bitcoin, which people hold on for dear life. It’s a dynamic Bitcoin that moves with the advance of technology.”

Despite the fact he called BTC “Bitcoin”, “the original Bitcoin” was not the answer he was talking about. The asset was regarded by him as being of no use to anybody except speculators, terming it as static.

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Is the Future of Real Estate in the Metaverse?



Is the Future of Real Estate in the Metaverse?

Although the metaverse is not a new concept, it has recently gained much more attention. Many are now becoming familiar with the idea, and are looking into what its future offers and how they can be a part of it. The metaverse will completely transform the current way of life for the average individual, affecting work, trade, entertainment, leisure, exercise, social interactions, and everything in between.

Apart from the retail players, big tech companies are also getting into the space. Facebook, the world’s most popular social media platform as of 2021, has recently rebranded to “Meta”, showing its commitment to this new space. According to an official announcement, rebranding was necessary because the company is shifting its focus to bring the metaverse to life. Footwear and apparel giant Nike is also preparing for the metaverse and has signified interest in creating its own space, as well as Adidas, another powerhouse brand.

The metaverse will transform many aspects of life by improving interpersonal interactions, establishing communities, and helping businesses grow. The climate required to create and operate a successful business will also change considerably. Firstly, the metaverse will allow businesses, regardless of size, to establish digital stores for their goods and services. A significant advantage of these capabilities for the average company is that opening a physical store is no longer necessary. This could significantly reduce overhead costs without having to sacrifice customer reach. In a virtual world, a company can tap into wider audiences beyond the physical boundaries imposed in a real-life setting.

There are also multiple metaverse use cases for the entertainment sector. For example, entertainment brands could use metaverse locations to preview music to excite virtual fans, holding mega concerts to listeners around the world. Furthermore, fans may also get the chance to meet and interact with their favorite celebrities, an opportunity rarely possible in the real world.

Additionally, people can gather for leisure activities in virtual parks to play or bond over shared interests and ideas. These locations could replicate attractions available in the real world, engaging all different types of users in the process. For instance, people can build teams based on varying activities, including everything from traveling, virtual combat, or playing chess. The metaverse will offer a slew of new opportunities for individuals and brands alike.

One of the less obvious but very promising advantages of the metaverse is the opportunity to capitalize on virtual real estate. Regardless of sector or industry, the shift to the metaverse still requires individuals and businesses to establish a presence on the metaverse; this is where virtual real estate comes in and plays its part.

All metaverse offerings, including commerce, healthcare, entertainment, and other sectors, must set up shop somewhere in the metaverse to reach their desired base. Individuals can also invest in virtual properties for various reasons, In parallel to the traditional real estate market, Investors can earn profit by purchasing properties and leasing them to businesses and other franchises. Investors can also simply buy virtual properties, hold them into the future, and later flip them for a potential profit. With 500 million dollars sold just in real estate in the metaverse, last year projections state that it will double this year!

The key to making the best out of a real estate investment is getting in early. As with everything else, early buyers catch on quicker and are in a better position to make a profit if and when the value increases. Investors are able to pick their property at floor price in a strategic approach that will allow the potential for a larger profit as well as an easier sale just as investors do in the traditional real estate setting. Users looking to get into digital real estate in the metaverse can start their virtual portfolio and begin with Ethereum Towers.

Ethereum Towers

Ethereum Towers is a community-centric vertical megastructure set in the Ethereum Worlds metaverse. Consisting of 4,388 separate apartments, Ethereum Worlds is a major player in the space available to investors interested in taking an early chunk of the metaverse real estate market as it grows. The apartments in the structure are in two identical towers, each with 101 stories. Each apartment is an NFT on the Ethereum network and is available as an ERC-721 token.

All owners in the Ethereum Towers can use their apartments however they please. Each owner can personalize their space how they wish, giving them full autonomy over their digital real estate asset. For this, the Ethereum Towers offers a marketplace with a wide range of accessories, furnishings, and ornaments that owners can purchase and set as preferred. Since each apartment is available on the Ethereum blockchain as an NFT, ownership is guaranteed and easily verifiable.

Due to the deliberate design, Ethereum Towers apartment owners and guests can explore the social benefits of a large community with similar interests. All residents partake in a virtual social experience supported by meaningful interpersonal interactions. Each tower possesses communal areas where owners can meet and interact, regardless of any preconceived boundaries that would limit interaction in the physical world. Through these interactions, users can build a strong sense of belonging and establish friendships along the way.

Perhaps the most significant advantage to Ethereum Towers is the investment opportunity it offers. In the metaverse, unlike in the real world, digital property assets usually have a much lower entry barrier, making it much easier for interested investors to get involved before the masses. The value of the apartments are projected to increase over time as meta living becomes more popular, providing early adopters a chance to capitalize on being first movers.

Getting In Early

Investors that have been able to identify ideas that dramatically impact the functionality of the future have always prospered. Those who understand the impact and utility around the metaverse too will have a major headstart within the benefits that this realm will offer. With Facebook being one of the largest and most successful companies taking action to rebrand itself as “Meta,” this should give investors a clear idea that a new significant era is on the horizon.


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Popular Analyst Predicts Major Breakout for Ethereum (ETH) on the Cards



Ethereum To Reach $20 Trillion by 2030 as per Ark Invest CEO Cathie Wood
  • Ethereum’s price has rebounded from a two-month decline in the last week.
  • Partisans are bullish on ETH 2.0 and are targeting a price of $8,000 shortly.

Since its January lows, the price of Ethereum has risen almost 50%. The Ethereum blockchains native token, Ether, has recently shown indications of resurgence. The altcoin is benefiting from several fundamental factors.

ETH/USDT: Source: TradingVIew

Ethereum’s price has rebounded from a two-month decline in the last week and has already reached the $3,000 mark. Cryptocurrency analyst Benjamin Cowen predicted a significant breakout for Ethereum (ETH) this week. According to him, the ETH price range between $2,000 and $4,000 represents a major re-accumulation zone for a medium-term runway of higher prices.

Upcoming ETH 2.0 Crucial

It’s also predicted that the network’s different offerings would show greener candles. Additionally, Partisans are bullish on ETH 2.0 and are targeting a price of $8,000 shortly. As the price of ETH continues to rise steadily, the fear and greed index for Ethereum weighs more heavily on the greed side of things.

Every obstacle on its path to the $3,200 mark on the daily chart has been overcome by Ethereum. Bulls are fully expecting the next price drop to be taken out by them. Aiming for the $3,600 level, investors have successfully crossed the 50 SMA and the bearish sloping line.

More than 45 percent of Ethereum’s value has been wiped off since its all-time high on November 10. Since its November high, Bitcoin, the world’s most valuable digital currency, has fallen by more than half. However, prices reversed their downward trend in February.

However, if pricing fails to hold above $2,800 in the next few trading days, we might witness a further decline below $2,400. According to CoinMarketCap, the Ethereum price today is $3,195.23 USD with a 24-hour trading volume of $13,485,593,739 USD. Ethereum has been up 3.84% in the last 24 hours.

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