Buying a House with Crypto-Currency
Updated: Jun 22
I've worked with clients before that have made a lot in crypto, but sadly most of the encounters that I have had where someone supposedly made a lot of crypto & wanted to purchase property using me as their agent was when they were not a legitimate buyer. Those who are sellers may have also been targeted by crypto scams of various kinds before, and so there is a lot of reason not to mention crypto at all if you are a legitimate buyer until much later on in the conversation unless your buyer's agent asks you a question that would bring it up after you have already demonstrated through various means that you are a legitimate buyer.
What illegitimate buyers (catfish buyers) stating that they are using crypto & agents being targeted by buyers supposedly using crypto should know
Here is more details on Catfish Buyers targeting real estate agents, including how to spot them and how to respond:
https://www.adambgarrett.com/post/catfish-buyers-targeting-realtors
If the conversation continued long enough, sometimes they wanted to give me unsolicited cyrpto or other investment advice, which I didn't want since I'm not interested in crypto, & even if I was, try to avoid taking advice from scammers. Often they wanted to move the conversation to Whatsapp or a similar service & not chat via video. There are a lot of crypto scams going around and I don't want to waste anyone's time. I don't want there to be a lack of trust between me and my clients either.
How to demonstrate to agents that you are a legitimate buyer using cryptocurrency
In order to clear up any confusion about the legitimacy of your inquiry with an agent, you can email (agarrett@ggrva.com if emailing me) or text them the following:
Provide proof of funds (POF) If you have any account numbers on the proof of funds, please be sure to erase them or black them out, while the POF should include your full name, the institution in question, the date, and the account balance.
Provide government identification (i.e. driver's license with your picture on it, articles of incorporation for a business or 501-C3, etc.)
Show your face on video. While there are some exceptions where catfish buyers will actually go in person to showings, etc. often they won't want to show their face, neither in person nor on video.
Don't dodge your prospective agent's questions. Be direct like a typical buyer would be.
Don't even mention crypto-currency unless a direct question is asked that requires it to be mentioned.
Don't ask to shift to a platform like Telegram or Whatsapp, even if those are your preferred means of communicating, until you've had a face to face with the agent.
More of what legitimate buyers should know about cryptocurrency property purchases
I would typically recommend cashing out of whatever crypto-currency you need prior to purchasing. With your proof of funds that is presented at the time of offer typically, it should be in ideally cash in a bank account, or if you can't help but keep it in an investment, in US stock within a typical mainstream portfolio (i.e. a free Merrill Edge account).
If you insist on using Crypto, it's important to note that while it can be done, as you'll read online, it also can really scare listing agents and sellers. Here are details from someone else on how to buy a house with cryptocurrency.