Topic: [Aquired]☆☆Crypto REI☆☆East Coast Real Estate☆☆ (Read 3324 times)

https://bitcointalk.org/index.php?topic=215230.400;topicseen

Think we are merging with another company, stay tuned for more info. It is some exciting stuff!

Why not just go all the way through with this idea and register it with the SEC? Why is registering with the SEC such a horrible thought?

I don't think there is any way for you, as an American, to collect investments from people and not trigger SEC registration of one kind or another.

Have you thought about listing on MPEx? If you got your affairs in order, you might be able to raise more there than by using cryptostocks or Havelock?

Got a lead on a great property this morning, If we can not raise funds to flip it I am just going to wholesale it.

House is a
3/2
1050 Sqft
Built in 1971
Cement foundation
Roof looks less then 5 years old.
Windows look less then 10 years old.

House needs updating in general,
Kitchen-
Counters and cabinets
Flooring
Fridge/oven/dishwasher
Bathrooms- x2
Vanity
Showers/Tubs

Inside general
Paint
Doorknobs
Hinges
Light switch panels
Electric plug panels
Carpet/Flooring

Purchase price 30k
Repair Cost 26K Contractor has already gave a estimate
Sales price 87,999 This was the BPO broker price opinion as of 3/19/2014
Profit after cost of sales
26,000

Similar house across the street just sold for 97K in under 2 months.

150BTC  With no share dilution EVER.

Hy, curios about your business. How much are you going to raise?

After checking out crypto stocks and  coming to find out you only need a website and a email with [email protected] I decided not to list there. I contacted Havelock and sent all the paper they requested over to them. So we should be listed there hopefully soon.

Asking 30k
Rehab 35k
Total  65K
ARV   99k
Profit 35k

This is a great cash flow property
Duplex
38k
10k repairs
450 x 2 = 900

Looking this property http://www.realtor.com/realestateandhomes-detail/220-Blue-Creek-School-Rd_Jacksonville_NC_28540_M56212-07248?row=6
Selling for 14k
Repairs 45k
Total Investment 59k
After repaired     85k
Profit of 30k

Updated to go into pre release sales

Well yea he is a real estate attorney he is really good at handling tricky real estate transactions like double closings and so such.
But I think I am actually going to consult a SEC attorney about this, and pursue a regulation D classification.

The rule about public postings changed in NOV you are allowed to publicly advertise you security as long as it meets 1 of 3 reqs. "Thanks job act"

Reg D has a ton of moving parts, so I can't say with certainty any one offering, including even yours, would or would not qualify, but as a general rule, Reg D offerings are non-transferable except to accredited investors or upon registration of the securities.  So unaccredited investors would be stuck with whatever you sold them unless they could find someone wealthy to buy them, or they could register them (which is expensive).  In addition, there are limits on general solicitation (such as posting on public internet forums) that would make it difficult. 

Like I said, these rules are draconian, and make it nearly impossible for anyone but the super-rich to invest in new and interesting start-ups. Reg A may be changing significantly soon, that was also a part of the JOBS Act, and I'm very hopeful for the proposed Regulation Crowdfunding.  There may be a way to structure these transactions to meet an explicit exemption (it's almost impossible for mere structuring to get you out of the definition of a security though), but all of the exemptions require at least some notification to the SEC, and they would take very specific tailoring that would require a lot of time (and thus a lot of money) from an attorney. 

I'm glad to see you're at least trying though, that assuages my main concern for you with people that claim to be compliant.  People who say they're compliant and aren't are often frauds.  I have this worry with Havelock, because even in the face of clear evidence that they are not compliant, they just keep saying "yes we are" without even trying to make an argument.  You seem like you just honestly want to be compliant, the fact that you aren't is more the fault of the web of incomprehensible regulation, so I'll leave you alone.  In your offering docs, you said you have an attorney, if I found the right guy, he looks like he's just a general practitioner.  If he's interested in discussing this more with me, send me a message and I'll give you my e-mail, I'm trying to get a group of attorneys together to discuss all these issues and try to create a good framework to present to the SEC.

Ok what about D lol I am looking at the online form right now and it does not seem to bad.

Regulation A is tough because you are then subject to every state's Blue Sky regulations, some of which would preclude advertising on websites, like your initial post does.  In addition, the SEC has to approve most kinds of written or scripted oral advertising in advance.  It's an option, but the myriad of state laws would make it difficult to do using crypto-currency on the internet. 

That makes sense, what about Regulation A?

The simple reality is, for now, there is no way to comply, at least not in a way that wont be cost-prohibitive or severely limit how you can advertise your offering, how many people could invest, and who could invest.  I'm not blasting anyone for being illegal, I'm expressing my concerns with you claiming you're compliant when you're not.  Heck, if you don't want to say "yeah, we're illegal", just don't mention anything.  When people ask just say "look, this is what we offer, it's up to you to figure out if you think we're compliant."  The rules are certainly draconian, but that doesn't really excuse stating you comply with them when you don't. 

In the future, I'm very hopeful that the rules promulgated under Title III of the JOBS Act will allow for raising capital from the general public in the way that most people do it on this thread, with only slightly more regulatory costs.  I'm working on making that happen, through both communication and comment on the SEC's proposed rules (https://www.sec.gov/rules/proposed/2013/33-9470.pdf) and through planning with people in industry, but for now I understand that the securities laws are fairly prohibitive.  Just don't claim to be compliant unless you're absolutely sure, preferably on the advice of someone who practices in securities law, that you are.

Well help us then, contribute to the bitcoin world and tell us what we need to do to comply. Just going around blasting us for being illegal does not help the face of bitcoin at all. If you were to help us conform to the  law would be much more useful.

The SEC does not actively monitor this thread, I have two friends that are attorneys for the Commission, and their interns have much better things to do than passive monitoring.  If the SEC had the resources to monitor this thread, they'd also have the resources to lend to their Canadian and Panamanian counterparts to shut down Havelock.  They certainly have some interest and concern about Crypto-investing, but it's hardly at the top of their list.  They didn't even dedicate the resources to convince Justice to indict Shavers, and his was a confirmed scam of a considerable size.  

I am not a lawyer, I am a third year law student at a T14 school and I've specialized in securities and investment law.  I like bitcoin and I'm sick of all the scandals, these postings purporting to be in compliance with the law when they are not are another scandal just begging to happen.  I've posted on three different threads, the first was on Havelock's general thread, the second was on RentalStarter, which is offered through Havelock, which I got to because there was a link on the Havelock general thread, and the third is this one, which I came to because the issuer here posted on the second thread.  Two of the three threads are real estate by sheer happenstance.  

If that was the case I do not think saying "I am breaking the law" is a wise thing to do on a forum we know is monitored by the S.E.C., I know this for a fact cause I was the first one to speak to them when the whole pirate thing went down. They have interns that do nothing but poor over this forum.

Are you a lawyer?
Why are you only posting on real estate type offerings?

[/quote]

In the past we have used LLC with no problems but on that note I will be consulting a lawyer come Monday Morning and post findings here.  Unless you have a law degree and are not a  "sea lawyer".

Wording alone is not enough to overcome the economic realities test of SEC v. W.J. Howey Co., 328 U.S. 293 (1946).  Members of the organization must have substantial participation in the operations of the organization, mere voting rights are nowhere near enough (even if you didn't know the case law, think about it logically, most equity stakes traded on the major exchanges have voting rights and are still securities).  What concerns me about all these investments I see on here are that so many of the issuers are misleading investors into thinking their offerings are compliant when they're not.  That means either the issuer is ignorant, which is a concern that investors are putting their money with incompetent people, or the issuer is malevolent, which is concerning for obvious fraud reasons. 

I don't know about everyone else here, but I'd feel much more comfortable with an issuer that came out and said "look, law essentially prevents me from raising money from you, so this issuance is probably not going to be compliant with the law.  Caveat emptor and all that.  I think most people here are pretty libertarian, we agree the laws and regulations are draconian, so why try to pretend your compliant?  Don't spit on our cake and call it frosting, be up front and let us be adults and make our own informed decision.

I addressed your concerns if you have any "business" related questions I would be happy to address them, but as for now I just see you as trolling and will not respond.

Try re-reading your original post.

Or maybe you'd just like to say that it wasn't really you who dropped in a mention of REITs because you were only quoting somebody else mentioning REITs -- and that doesn't count? 

You had the opportunity for some constructive engagement here, you had the opportunity to identify some gaping chasms of confusion in your offering, you had the the opportunity to achieve at least a marginal improvement in how your plans are being articulated. As I said, I'm done here; good luck to you.

(Oh, and you do get that REIT = Real Estate Investment Trust, right?)

It was addressed at you DrGregMulhauser smart guy. It is very very apparent you only read the FAQ and only the FAQ.

Sir no where is there any word of REIT's in any of post or plans the first word of REIT was brought up by you in this post


Excellent question.


So your using a example of how passive investors invest in real estate as your reason from bring up a REIT? Lest not take it out of context like you have

Thank you, for your remarks but most of them could have been answered if you would have read.

In mathematics, we use the phrase "proof by reference to converging irrelevancies"...


I can assure you, I won't be wasting any more of my time on my apparently pointless attempt at offering feedback on a few of the outright howlers from your "offering". Kthxbye.


Excellent question.


I didn't bring up REITs -- the OP brought up REITs, as if they were in any way relevant.


Congratulations! If that's the level of detail and coherence you expect from someone asking for your money, then you are exactly the sort of "investor" the OP needs.

It might be easier to assume that someone whose standards are a little different from your own simply doesn't know how to read, but that doesn't make it so.

What part about a member managed LLC do you not understand? Think this explained it in the business plan
share Holders Voting Rights
Each share is entitled to 1 vote in the company.
All Property Purchases and Price discounts on a property greater then 5,001 Dollars will require a vote
Terms of Voting
Voting will be held for no less then 72 Hours and no longer then 5 Business days.


Start up capital of $75,000 is needed, this will be in the form of crowd-funded virtual currency stocks , with the eventual offering of HML1 loans if full amount can not be raised. The purpose of the loans will be to gain capital with out diluting stocks. 

Does it matter if its 75k @ 10 stocks or at 10,000,000?

I am starting to get the feeling you did not read the business plan....

Obviously you're not forming a genuine REIT; that's why it's hand waving to talk about REITs. The question has nothing to do with "most real estate terms"; it has to do with whether you are prepared to offer something other than hand waving.


You're failing the sniff test pretty badly here. You've not yet explained even 1% of how you might possibly think about maybe one day potentially if the moon is in the right phase organise the capital structure, let alone 100% of how you will actually do it. Generally speaking, not knowing how you're going to structure a business until after you've entered into business commitments is not a good sign.


I cannot tell you what would be "acceptable", but I can tell you that failing to provide a cogent offering document, failing to elucidate the basics of capital structure, and failing to offer even a vague outline of how a business will operate is not a recipe for inspiring confidence in the people you're asking to support your project.

REIT would have to be registered with the SEC, so that is a no go. If you get any sort of pooled funds in a real estate transaction it must be registered as a security with the SEC.
There are a couple of exceptions
1) The entire loan must come from 1 person with out the pooling of funds
2) The company must be formed as a LLC as a tenants in common aka members manage LLC

The wording has to be in such a way to not trigger a SEC registration. Most real estate terms are written in such a way it seams to be hand waving.
This is the address to a property, I understand it, most people will not its not fancy hand waving its legal description written to locate a property.
SHAMROCK VIL BE L12   
SR 1903
08-030
SHAMROCK VILLAGE INC

The capital structure has not been 100% decided yet due to us not having nailed down a home.
I do not think 18 pages of business plan would be acceptable here?

Few people have much positive to say about MPOE-PR, but you're missing point, which is that if you have any actual business plan, put it here and make it part of the public record, don't just link to some random document on Dropbox.

While you're at it, you might consider addressing a whole boatload of questions around the topic of why you're looking to raise equity financing as opposed to debt financing, despite indicating that the latter via a "hard money" lender is next on your agenda. (Or maybe you're looking to offer this as securitised debt? It's hard to tell based on what you've actually written so far.) As far as I can tell, apart from some irrelevant hand waving in the direction of REITs, you have yet to spell out anything at all about capital structure.

The fact that you just criticized the posting format is a great! Thanks!

Just had a lead from a "We pay cash for homes close in 7 days ad"

Bedrooms:4 beds
Bathrooms:2 baths
Single Family:1,204 sq ft
Lot:0.25 acres
Year Built:1986
Last Sold:Mar 2010 for $138,500
Heating Type:Heat pump

This property would take 10k Max to get up to selling conditions. The property is in default status and vacant, the estimated pay off on the property is 58,000. ARV of the property is 115,000.

See here. As for that "business plan", it'd be much more valuable to post it here (no, a dropbox link doesn't suffice) in lieu of the atrocious marketing speak you've put up in its place.

F.A.Q updated

Types of property
Asking Price 34,000
Will start offer at 26,000

Bedrooms:3 beds
Bathrooms:1 bath
Single Family:1,161 sq ft
Lot:0.29 acres
Year Built:1954
Last Sold:Oct 2010 for $109,000
Heating Type:Heat pump
https://deeds.onslowcountync.gov/external/LandRecords/protected/v4/SrchBookPage.aspx?bAutoSearch=true&bk=4111&bks=&pg=307&pgs=&idx=CRP

Brand New roof on this house
HAVAC looks to be good but can not tell with out Power

Repairs
Floors need striped and refinished $2100
Complete Kitchen 8500 Cabinets/Fridge/Oven/Backsplash full works
Complete Bathroom 4,500  Toilet/Sink/Vanity/tub&shower combo*
Outside Paint 2100
Inside Paint 1300
Landscaping 1500
New windows 3500
Misc 10,000 new doors/hinges/doorknobs/replace dingy wall sockets and light switches.
Property Marketing $500
Min Rehab cost 30600
Max Rehab cost 37400
Total Rehab 34K +- 10% =3400

Holding and tax allowance 3,500 (ie electric, water, trash dumpster)

Total project cots 75,5k (This is worst case)
ARV 105,000 90+ Days on market
ARV 100,000 60 Days on market
ARV 95,000  30 Days on market





Pretty interesting wall art

Crypto REI


UPDATE 3/11/14

We will start selling shares off market if interested please message me.
30,000 @ 0.005 If you would like to purchase some share please message me.
A total of 2000 pre-list shares will be offered at .0045 and a large discount for purchases over 250 shares.
1H5J65KU6aGZ4uohTCbontXmGezdixaJiy
After you have deposited the coins please add you tx. number and how many shares you purchased on this forum post. "Makes it public Record"



Purpose Statement
    
   The mission of Crypto REI is to be the most successful and predominant  real estate investment company in the greater eastern North Carolina area.  Crypto REI incorporates proven, professional state of-the-art techniques specializing in the fix & flip, lease options and rentals of new and  homes, condominiums, home sites, undeveloped land and commercial and investment opportunities. Crypto REI maintains a full array of well-trained professionals who continually strive to provide top quality service for their individual clients and customers. Crypto REI is a creative, innovative and people-oriented organization providing individual opportunity, personal satisfaction and rewarding challenges to all members and investors of the firm.

Why?
A funny thing happens in real estate. When it comes back, it comes back up like gangbusters.
"Barbara Corcoran"
            About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaires surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice. (We are not a REIT) This is was used as a example
            Most of us do not have enough money to go and buy a property for cash, but with our knowledge and funds we could all be on our way.
What?
            Residental SFH defined by H.U.D as between 1 and 4 units. Focusing on distressed properties in high turn over area's. These properties would be located in neighborhood away from large roads, close to schools, with a decent image. We would ideally like to buy at 60% ARV with a negotiation range of +-5%.
When
            As soon as we secure funding we will start our first project, if enough funds are not raised we will use a Hard Money Lender to cover the rest. We already have a one lined up.

F.A.Q.
Q. Will shares be BTC Based or Fiat Based.
A. Shares will be based on fiat due to the extended amount of time it will be tied up. We will not be dealing in rentals to start with, all dividends will be paid per sale of fix and flip. If we fix and flip 13 houses a year you get 13 dividends that year. We aim to profit min 10-50k on each fix and flip.

Q. Is this really a good time to be investing in real estate?
A. YES!! As a matter of fact, this is probably the greatest buyers market any of us will ever see in our life times. During a economic downturn, smart money is buying, dumb money is on the sidelines. Even though the recession is over, many people are holding on to fears and misconceptions about investment real estate. This is a HUGE mistake. Many people will secure their financial future during this limited buying opportunity, the question is will you be one of them.

Q. Why do you buy foreclosure properties?
A. In real estate, rule number 1 is "You make your money when you buy" That means we need to buy below market value. Foreclosures are not only available in abundance, but they are bad loans on the books of the banks and need to be sold. More often than not, these sales are at pennies on the dollar.

Q. This sounds like a good way to get rich quick. Is it?
A. Rich is a relative term. For some people $100,000 a year would be life changing. For others it would be a drop in the bucket. However, this is not a "get rich quick" I personally am not aware of anything that is. Investment real estate is and always has been a "get rich slow" investment. That being said, properties that are bought and sold with profits of $10,000- $40,000 will certainly make an impact on anyone's bottom line.

Q. I have no experience at this. Am I qualified?
A. The reason so many people lost money during the real estate crash was due to exactly that reason. Many people jumping in the game with little to no experience. Bad idea. What we have done is taken the need for experience out of the equation. We will do the entire transaction for you. No guessing on your part. You agree to the deal, and we drop a completed, rented property in your lap. The only real qualifications that you will need is the willingness to make money.

3/8/2014
240 Homes owned by the Dept of Veterans affairs in our area of operation.

Business plan will answer most questions.
https://www.dropbox.com/s/omonqlbpw38ajcp/Business%20planRev2.01.doc

NOTE: IPO phase
Use of this document is only is prohibited unless given right.

Business Plan
https://www.dropbox.com/s/omonqlbpw38ajcp/Business%20planRev2.01.doc

Crypto REI



[email protected]
http://encinvesmentproperty.com/