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Real Estate Billionaire Buys Bitcoin, Accepts BTC for Rent Payment at His Residential and Retail Properties

Billionaire real estate mogul Rick Caruso has revealed that his company has invested in bitcoin for its treasury and will begin accepting the cryptocurrency for rent payment at its properties. Among the tenants of one of his properties is Elon Musk’s Tesla. Caruso said, “We believe that cryptocurrency is here to stay.”

Caruso Going the Tesla Route, Investing in Bitcoin and Accepting It as a Means of Payment

Billionaire real estate developer known for his lavish outdoor malls, Rick Caruso announced Wednesday on CNBC that his real estate company, Caruso Properties, has invested in bitcoin. In addition, he said the company “will begin accepting bitcoin as rent payment at its residential and retail properties.”

Established in 1987, his Los Angeles-based company has over 2.5 million square feet of property assets, its website details. Its properties include town centers, residences, offices, outdoor malls, apartments, and “a world-class resort.” Among them is The Grove, which Caruso described as “One of the highest-grossing shopping and entertainment centers in the country.” According to Forbes, Rick Caruso’s net worth is currently $4.2 billion. The Wall Street Journal calls him “Southern California’s retail King.”

The billionaire said his company has invested a portion of its corporate treasury in bitcoin and entered into a partnership with crypto exchange Gemini. He was quoted as saying:

We believe that cryptocurrency is here to stay. We believe that bitcoin is a right investment for us. We’ve allocated a percentage of what would normally go into the capital markets into bitcoin.

In addition to investing in bitcoin, Caruso’s company will also accept the cryptocurrency as a means of payment from its clients.

Real Estate Billionaire Buys Bitcoin, Accepts BTC for Rent Payment at His Residential and Retail Properties
Caruso’s properties, including outdoor malls and apartments. Source: Caruso Properties

One of his tenants at the Americana at Brand center in Glendale is Elon Musk, the Technoking who operates a store selling Tesla electric cars at the center, the L.A. Times noted. Caruso said: “I haven’t talked to Elon about it. He may be the first, as a pioneer, to pay his rent in bitcoin.”

Musk’s electric car company has also invested in bitcoin and accepted it as a means of payment. The company informed the U.S. Securities and Exchange Commission (SEC) in a filing that it invested $1.5 billion in bitcoin in January. Then, in March, Tesla began accepting BTC for payments. While a growing number of corporations are putting a certain percentage of their treasuries in bitcoin, not all of them have gone the full Tesla route of also accepting the cryptocurrency as a means of payment.

Caruso added that his company’s dive into bitcoin is a long-term bet, noting:

It’s not about the next year or five years. We’re looking forward to the next decade.

The billionaire real estate magnate explained that the Covid-19 pandemic is resulting in some fundamental changes in consumer behavior. He opined, “The companies that win their loyalty are going to be the companies that anticipate those changes and meet the consumer where they are, and that’s what Gemini is helping us do.”

Caruso elaborated that one example of using cryptocurrency is for his company’s consumer rewards. “Our loyalty program, what I envision in working with Gemini and the Winklevosses, is you will earn coin. You will earn a cryptocurrency,” he described, adding that consumers can then “spend at our properties.”

What do you think about Rick Caruso investing in bitcoin and accepting it for rent payment at his properties? 

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#Real Estate 101 – Investment in Real Estate

A landlord who owns 10 properties says there are 2 types of people who should invest in real estate

Liz Knueven  

Becky nova
Becky Nova, a real estate investor and landlord. 

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

People tend to think that real estate investing is passive. But that couldn’t be further from the truth, according to landlord Becky Nova.

In her experience, being a landlord is best suited for certain types of people. “I think it’s important for people to always invest in things that they understand. If you are going to invest in real estate, you need to know your numbers, and you need to understand people,” says Nova, a real estate investor who owns 10 properties.

Based on her experience, Nova says there are two types of people who should invest in real estate.

People who want to own tangible investments

Compared to stock market investing, investing in real estate is much more tangible. Sometimes, it even involves hands-on work in a way stock investing never could. Nova says that this could be a big plus for anyone who’s motivated by the idea of more tangible investments. 

For her, investing is better when she can see what she’s investing in. “I can see when I get paid on a monthly basis as a landlord. Those numbers are much more tangible than money sitting in an investment account that I can’t look at for another 25 years,” she says. https://www.myfinance.com/r/4fdd3a65-b66e-48dd-a799-11f867bc6b20?utm_campaign=bi-refi-multi&utm_medium=embed&selector=%23piano-inline-content-wrapper+%3E+div%3Anth-of-type%281%29+%3E+div&placement=74e7b5bb24&mf_referrer=https%3A%2F%2Fwww.businessinsider.com%2Fpersonal-finance%2Fpeople-who-should-invest-real-estate-2020-11&_mfuuid_=ae39f246-fa8a-44fd-b961-6327d92d07c3

People who are good with customer service and research

In some ways, being a landlord is more akin to working in customer service than it is to being an investor. 

“It is a people management position when you’re dealing with tenants,” she says. Dealing with tenants and clients at all hours of the day is routine for landlords. 

And it requires a lot of organization and research. “You have to be educated, and you have to understand the legalities involved,” she says. Many cities have laws in place to protect tenants, and as a landlord, it’s your responsibility to know them.

In her experience helping other landlords, she finds that a lot of successes and failures come down to the amount of research and forward planning done.

“One question that I get all the time is, ‘There’s a problem with this tenant and I don’t know what to do.’ Usually, the answer should be addressed in your lease, but I feel like a lot of people skip those steps,” she says.”They don’t have a process put in place, which makes it very confusing and very stressful for both the landlord and the renters.”

Knowing the laws and how to work with people are both critical qualities for anyone who wants to invest in real estate. 

“You have to understand the ins and outs,” she says. MORE PERSONAL FINANCE COVERAGEWhy open a high-yield savings now when interest rates are downWho has the best CD rates right now?The best rewards credit cards7 reasons you may need life insurance, even if you think you don’tWho has the best online high-yield savings accounts right now?

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