₿TC–RE Financing

Illumined’s Mission: Bridge the world’s largest capital pool into Bitcoin. Educate investors, empower brokers, and deliver financing solutions that combine real estate with Bitcoin as pristine collateral.

Digital Value Add for the Sovereign Class

🌍 Why Illumined

Real Estate = $300T Capital Pool
For decades, property has been used as a proxy for money because fiat currencies failed.
The Problem
Trillions are locked into illiquid, over-leveraged assets. Real estate is serving as “money in disguise” instead of just being shelter and productive capital.
Bitcoin’s Role
Bitcoin is pristine collateral:
- 21M fixed supply
- Digitally scarce
- Globally liquid
- Incorruptible & auditable
Illumined’s Mission
Bridge the world’s largest capital pool into Bitcoin. Educate investors, empower brokers, and deliver financing solutions that combine real estate with Bitcoin as pristine collateral.

🌍 Vision

A world where:

Capital flows freely into Bitcoin, not locked in concrete or inflated assets.
Housing becomes affordable and utility-driven, freed from its role as a “store of value.”
Investors become sovereigns, educated in self-custody and empowered to preserve wealth outside failing fiat systems.

⚡ What Makes Illumined Different

Not just loans. We educate, package, and empower — bridging real estate and Bitcoin through Digital Value Add.

Not just investors. We’re building sovereigns who understand money, custody, and freedom.

Not just transactions. Every deal is a step toward a global shift: from shelter-as-money to Bitcoin-as-money.

🔄 How It Works

Investor → Provides financials + approves cash-out refinance.
Illumined → Onboards client into Bitcoin, runs simulations, packages the deal.
Broker (MLO + MSB) → Originates USD loan + ensures compliance.
Propy (where available) → Onchain escrow + NFT deed.

📊 Why It Matters

BTC Loan Interest (~12% APR) is deductible when tied to income-producing property.
Instead of selling BTC (and triggering capital gains), clients borrow against it → preserving long-term upside.
Real estate still delivers depreciation and 1031 exchanges.
The result: two appreciating assets (property + Bitcoin).

Second version geared more towards investors

🏛 Mission

To empower real estate investors with Bitcoin as pristine collateral, enhancing returns and unlocking new financing strategies — while preserving property’s role as an income-producing, tax-advantaged asset.

📊 Case Study: 15-Unit Multifamily | $3.3M

Purchase Price: $3.3M
Cap Rate: 6% → $198K annual net rental income
Loan Structure:

80% USD Mortgage → $2.64M @ 6.5%
20% BTC Collateral Loan → $660K @ 12% APR
BTC Collateral Required: $1.32M (50% LTV)

BTC Assumption: $100K starting price, 20% CAGR over 5 years
Property Assumption: 3% annual appreciation

5-Year Outcomes (With Annual BTC Interest Payments)

BTC Collateral Value: $1.32M → $3.3M (+$1.98M)
BTC Loan Principal: $660K (static)
Net BTC Equity: $2.64M
Property Appreciation: +$530K
Total Upside (BTC + Property): ~$2.2M before cashflow

⚖️ Tax Advantages

Depreciation: ~$120K/year → shelters rental income.
Loan Interest Deduction:
- $172K USD loan interest deductible annually
- $79K BTC loan interest deductible annually
1031 Exchange: Roll property gains into next deal tax-free.
Capital Gains Preservation: BTC never sold → no taxable event.

Result: Most rental income shielded. BTC and property both compound while minimizing taxable income.

🔄 The Recycle Strategy

Buy property using hybrid BTC + USD financing.
Hold 5 years → enjoy property cashflow and BTC appreciation.
Sell property → up ~16% at 3% CAGR.
BTC equity → up ~100%+ after loan costs.
Reinvest → roll property gains into a new building (1031) while BTC keeps compounding.

Outcome: Investors compound upside across two appreciating asset classes while writing off loan interest and deferring taxes.

🏢 Property-Only vs Hybrid BTC Strategy

Metric (5 Years)	Property-Only (2x $3.3M)	Hybrid BTC + Property
Initial Capital Deployed	$1.32M (down on 2nd deal)	$1.32M BTC collateral
Property Value Growth	+$1.06M (2 props @ 3%)	+$530K (1 prop @ 3%)
BTC Collateral Growth	❌ None	+$1.98M
Net BTC Loan Principal	❌ None	-$660K
Net BTC Equity	❌	+$2.64M
Total Upside (ex-rents)	~$1.06M	~$2.2M
Tax Benefits	Depreciation + USD interest	Depreciation + USD + BTC interest deductions
Risk	Real estate only (stable)	BTC exposure (volatile but asymmetric upside)

📊 Why It Matters

BTC Loan Interest (~12% APR) is deductible every year.
Instead of selling BTC (and triggering capital gains), investors borrow against it → preserving upside.
Real estate continues to provide cashflow, depreciation, and 1031 exchanges.
Hybrid strategy nearly doubles 5-year upside vs real estate-only.

🏦 Direct Competitors (BTC + Real Estate Lending)

Milo
- Offers crypto-backed mortgages (use BTC/ETH to buy real estate).
- Markets heavily to international buyers.
- Limitation: Primarily custodial, not education-focused.
- Weakness: No “digital value add” ethos — just a product.
Figure
- Blockchain-based lending & home equity lines.
- Not strictly Bitcoin, but competes in “digital real estate financing.”
- Weakness: Focused on HELOCs + securitization, not hybrid BTC financing.
Ledn (indirect competitor)
- Offers BTC- and USDC-backed loans, but not tied directly to real estate.
- Could pivot into hybrid RE financing.
Unchained (potential future competitor)
- Known for Bitcoin-backed loans and custody.
- Could extend their collateral services into real estate lending.

Propy (Partial Competitor / Partner)
- They handle onchain escrow and NFT deeds.
- Not doing BTC lending themselves, but may expand into it.
- For you: More partner than competitor.

⚡ Illumined’s Unique Position

Competitors = Product providers.
They offer loans or tokenization rails.
Illumined = Educator + Packager.
You don’t just offer BTC mortgages — you:
- Teach clients about Bitcoin custody and risk.
- Run simulations (BTC CAGR vs debt service).
- Partner with brokers + Propy to deliver Digital Value Add.
- Get paid on education + transaction splits, not by becoming a lender yourself.

This is why Illumined’s moat is: education + sovereignty-first positioning.
Competitors like Milo/Figure are custodial, fintech-first. You’re Bitcoin-first, sovereignty-first.

🔄 Partnership Flow & Responsibilities

Investor

Provides financials + acquisition target
Approves cash-out refinance if onboarding
Commits BTC collateral

Illumined

Educates on Bitcoin custody & risk
Runs BTC vs. debt simulations
Guides cash-out → BTC buy
Packages deal for broker

Broker (MLO + MSB licensed)

Originates mortgage applications
Runs underwriting & compliance
Structures hybrid loan (USD + BTC-backed)

Propy (in supported states)

Digital escrow via smart contracts
NFT deed minted onchain + county record
40% efficiency gain vs traditional escrow

🏢 Case Studies

Deal 1: 12-Unit Multifamily ($2.5M)

Traditional: $500K down, $75K closing, $130K/year interest.
Hybrid: BTC collateral replaces down, $37K closing, $47K BTC loan interest + $130K USD interest.
Investor Benefit: Keeps BTC exposure (+$100K/yr projected appreciation).

Deal 2: 60-Unit Multifamily ($12M)

Traditional: $2.4M down, $360K closing, $624K/year interest.
Hybrid: BTC collateral replaces down, $180K closing, $228K BTC loan interest + $624K USD interest.
Investor Benefit: Keeps $2.4M BTC (~20% CAGR = $500K–$1M annual upside).

📊 Strike Loan vs BTC Growth (5-Year Example)

Scenario:

BTC collateral = $1M
Loan = $500K (50% LTV) at 12% APR → $60K annual interest (deductible)
BTC CAGR = 20%

Year	BTC Price	Collateral Value	Loan Balance	Annual Interest	BTC Growth	Net Offset
1	$120K	$1.2M	$500K	$60K	+$200K	+$140K
2	$144K	$1.44M	$500K	$60K	+$240K	+$180K
3	$173K	$1.73M	$500K	$60K	+$290K	+$230K
4	$207K	$2.07M	$500K	$60K	+$340K	+$280K
5	$248K	$2.48M	$500K	$60K	+$410K	+$350K

Interpretation:

Total debt service: $300K over 5 years (deductible).
BTC collateral grows by ~$1.48M.
Net after debt = ~$1.18M upside, while also owning property.
This is Bitcoin as pristine collateral in action.

💰 Investor Tax Benefits

Depreciation on Property
- Residential: 27.5 years | Commercial: 39 years
- Offsets rental income → reduces taxable income
Interest Deduction
- USD mortgage interest deductible
- BTC loan interest deductible if used for income-producing property
Capital Gains Preservation
- Pledging BTC avoids triggering capital gains tax
- Investor retains upside while unlocking liquidity
1031 Exchange
- BTC itself not eligible, payoff loan and re-pledge
- Property still qualifies → defer taxes at property sale

🧾 How Illumined Gets Paid

Transaction Commission Split (Primary Revenue)
- 1–2% of real estate financing deal size
- Shared with broker (e.g., 50/50 split)
- Example: $5M property → $75K fee → ~$37.5K Illumined share
Onboarding & Education Fees
- $2K–$10K flat fee for BTC onboarding, risk simulations, custody prep
Cold Storage & Custody Advisory
- Self-custody setup: $2,500–$5,000
- Multisig advisory: $5,000–$10,000
- Institutional custody consulting (Coinbase Custody, Strike, Swan)
- Annual retainer: $1K–$5K
Investor Education Services
- Webinars, membership packages, premium content

Mantra: Illumined earns by making capital smarter — not by taking a cut of Bitcoin directly.

📈 Financial Projections (Partnership Model)

Year	Deals	Gross Revenue	Illumined Share	Expenses	Net Profit
1	6	$480K	$240K	$100K	$140K
2	15	$1.2M	$600K	$120K	$480K
3	35	$2.8M	$1.4M	$150K	$1.25M
4	75	$6.0M	$3.0M	$180K	$2.82M
5	150	$12M	$6.0M	$220K	$5.78M

Break-even: Month 3, Year 1
5-Year Cumulative Net: ~$10.5M

🛠 Skills Illumined Must Master

BTC onboarding & custody education (incl. inheritance planning)
Proprietary simulations (BTC growth vs debt service)
Investor communication (tax strategy, risk disclosure)
Propy integration & escrow fluency (where available)
Digital storytelling → “Digital Value Add” positioning

🚀 Clear Path Forward

Finalize Partner Kit (manifesto + case studies + revenue model)
Secure broker partnerships in FL, TX, AZ, CA
Affiliate with Propy (where supported)
Pilot 1–2 multifamily deals (real case studies)
Launch investor & broker webinars
Scale marketing through Illumined newsletter (12–15K list)
Hire onboarding specialist (Year 2)
Expand to tokenization platforms (RealBlocks, BOB, Arch)
Package services for family offices & RE funds
Position Illumined as the digital value add leader bridging $300T real estate into Bitcoin

📣 Call to Action

Be the first in your market to offer hybrid BTC–Real Estate Financing.
Partner with Illumined to deliver Digital Value Add and unlock the future of capital.