OH, YEAH BABY! Have at you, dormant home equity. Your days of not pulling your weight in making me rich are over.
I want my free $500 worth of bitcoin.
I want my house to be my own personal crypto wallet!
Folks, I think we may have found our conduit to ensure we are all-in right up to the upcoming peak.
So, today, we shall take a deep dive into what is possibly the most innovative use of bitcoin so far. What is truly involved here? Is this ‘really’ a way to secure financial freedom?
Most important of all, what does the history of the real estate cycle tell us?
Read now one of 2025’s most interesting newsletters.
Introducing Mr. Preferred
On the one hand, you can say that this is yet another example of the type of financial innovation happening in the broader credit sphere. However, like almost all of the previous ones I’ve covered for you over the years, Horizon’s offer is once again light on details.
As of today, there are a handful of US states where they offer their services. Their website says they hope to expand those states in the near future.
And it’s this website and what it does, and does not, say that is most intriguing.
Basically, they offer a service which allows you to access your own home equity without the need to sell the property. In Australia, this is most commonly referred to as a refinance loan.
In the US, more akin to a HELOC (home equity line of credit) or reverse mortgage.
Thus, Horizon’s market edge is that it isn’t any of these, and thus no interest is payable, there is no borrowing, and you retain full ownership as it isn’t a reverse mortgage (where the lender gains increased ownership rights over time). Instead, the offer is explained this way.
…we help you sell a share of your home’s future value in exchange for tax-free upfront cash today.
You can use that cash however you want, including to buy and hold more Bitcoin.
Sure, that cash can be used for anything…but c’mon, you can’t convince me they aren’t trying to build upon bitcoins current price momentum with this. And here is why.
Horizon was built with one mission: to help long-term bitcoin holders access the wealth tied up in their homes without touching their cash reserves or selling assets they want to keep.
Sounds too good to be true, right? How noble of Horizon to be so attentive and aligned with the needs of its bitcoin investing brethren. But of course – there’s a catch. And an interesting one at that.
You see, there’s a third party involved here. And on the Horizon website, nowhere are they referred to or highlighted by name. Instead, they are referred to as their ‘preferred provider’. Or Mr. Preferred to you and me.
And what Mr. Preferred actually wants is a cut in your future home equity. This cap of future growth is a minimum of 10%, never more than 22.5%. And the longer you maintain the contract, the annualized amount of the future home equity that you now owe Mr. Preferred actually decreases over time on a percentage basis.
The agreement can be finalized if you sell, move house or decide to pay out the remaining interest of Mr. Preferred share.
At this stage you may be wavering. Thankfully the website is there to sway you.
Let’s not forget what you used that unlocked $100,000 (initial 10%) for: you bought Bitcoin.
They stress that this bitcoin ownership is 100% your own. They have no rights over it, no recourse to it as a form of collateral, and you maintain full control over how any purchased bitcoin is stored.
To sum up, as your property continues to increase in value, the stake Mr. Preferred takes grows as a percentage of this increased capital gain, no greater than 22.5%. Once that equity stake is reached it remains that way for the duration of the contract length you signed off on.
Can’t you see the genius of what Horizon is proposing here?
Isn’t it swell that we can have a scenario where everyone wins!
You are aware every coin has…two sides, no?
All that glitters?
All that glitters isn’t gold.
I must admit I’ve never seen such a staunch effort to deliberately hide the identity of a home equity investment partner before. I have no idea who Mr. Preferred is, or even could be? Perhaps it was just an oversight?
There is a single mention. From the website.
For detailed information on contract terms, conditions, and our preferred providers, please refer to our preferred provider’s website.
Of course, they very helpfully forget to add that same link anywhere. Now, don’t get me wrong. It makes no difference to me what people decide to do with their money, or home equity.
And if they want to invest it into bitcoin then more power to them. I do wonder however just how well they know their history? History of the 18.6-year Real Estate Cycle. It does seem, once again, the whole scheme rests solely on one fundamental truth.
Land prices must continue to keep rising to make this scheme work. Regardless of what bitcoin does, or doesn’t do, during the length of your contract with Mr. Preferred. And pray, what have PSE forecasted for US real estate in the immediate future?
Do you think the correct time to potentially load up your own home with 2 mortgages like this is 12-18 months before the land markets peak? That same equity could be the difference between keeping your home and losing it. Think about it.
If the land your home is on starts falling, then the equity buffer reduces. However, the equity you do still have remaining is now further diluted as Mr. Preferred continues to take an ever-larger share himself.
I guess you can console yourself with the performance of your bitcoin portfolio, I hope it’s gone up for you. Frankly who knows on that front. Here though is what I DO know.
It is the 13th year of upward rising land prices in the US. The end is coming. For over 200 years now, that same peak is marked by society becoming all-in. Could it be schemes like this? One that sees bitcoin finally claims its ultimate speculative crown as the peak turns to dust.
Or instead, you face total ruin. Out of luck, out of your own home, and asking “if only I had some way of knowing it all ends like this…?”
Well, there is actually a way; become our latest Boom Bust Bulletin (BBB) member. Let the BBB guide you on the inherent timing of the economy only knowledge of the land market can give you.
Each month this history and knowledge will be yours via monthly written editions and video postcards that will help explain the real estate cycle like never before.
There is no new way to go broke. It is always too much debt.
Innovation like this literally paints you into a corner. Your only bet is that the very best-case scenario must come in. Life however is much different on the downside of a land price-led recession. Can you afford to get this so badly wrong?
A little knowledge will go a long way. That type of protection is, for me, priceless.
So, don’t wait any longer.
Sign up now.
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