Self-Employed Client secured a $2M property with a Crypto Downpayment

In the dynamic U.S. real estate market, securing suitable financing can be as complex as the investments themselves. This rang true for a U.S.-based client, a self-employed entrepreneur looking to purchase a high-value investment property in Tampa, Florida. Valued at $1,600,000, this single-family home was not just a physical asset but a critical step in expanding his investment portfolio.

Milo attracted his attention because of his substantial cryptocurrency holdings and his interest in innovative real estate investment strategies. His unique financial situation presented distinct challenges: he was self-employed with significant income and had amassed considerable wealth in cryptocurrency. He sought to leverage this wealth without converting it into cash, bypassing traditional financing routes like debt-to-income ratio (DTI) qualifications, which compare a person's debt payments to their income.

Given his preferences and financial landscape, we recommended a DSCR (Debt Service Coverage Ratio) loan. This mortgage type evaluates a property's cash flow rather than the borrower's personal income, ideal for investors with non-traditional income sources who wish to have the property's financial performance influence loan eligibility.

A notable challenge was using his cryptocurrency directly as collateral for the loan, rather than converting it to cash for the down payment—a pioneering practice in the mortgage industry. Milo is at the forefront of this innovation, enabling investors to secure financing by directly leveraging their digital assets. For this client, we structured the loan to use his crypto holdings as collateral to secure a 60% LTV (Loan-to-Value) cash flow loan, providing a sophisticated and tailored solution for acquiring his second investment property.

The successful closing of this DSCR loan underscored Milo's capability as a flexible and forward-thinking financial partner, adept at navigating the modern investment landscape. This transaction wasn't just about financial dealings; it marked a significant advancement in the client's investment strategy, facilitated by Milo's customized financial solutions.

For those navigating the complex terrain of U.S. real estate investment, particularly with unconventional assets like cryptocurrency, Milo stands as a pioneering partner. Reach out to our team at loans@milo.io for expert guidance tailored to your innovative financing needs.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.