Topic: RentalStarter - A Midwest Real Estate Investment Company - page 22. (Read 120408 times)
How much extra do you need?
Odd situation...
We just submitted a offer for a property that would make a FANTASTIC rental , almost ready to go at a asking price of $25k, needs <$5k in repairs, gonna try to get it for $25k including repairs. Will rent for $650-$700/mo (31.2%-33.6%).
However right after submitting the offer (Within 30m) I got a notification that a fantastic property for a flip had been listed. Great location, decent price ($67k) with the potential for a profit of $40k or more on a 3-4mo timespan. Problem is with the cash we have in the bank + Wallet it comes out to *around* $115k or so. Take off $25k, then the $20k margin I want to keep in the bank for trouble spots, and we would barely have enough to finish the rehab/sales phase of it.
I'm not complaining - We're in a fantastic financial spot right now, when it's all said and done we'll be bringing in nearly $8k/mo gross from the rentals after all properties are accounted for. I hate to miss out on the chance of a quick $40k net profit on a flip.
Not sure what to do yet, I have a few guys that are interested in loaning us USD mortgages, but I'm in the early stages of working out the details.
We just submitted a offer for a property that would make a FANTASTIC rental , almost ready to go at a asking price of $25k, needs <$5k in repairs, gonna try to get it for $25k including repairs. Will rent for $650-$700/mo (31.2%-33.6%).
However right after submitting the offer (Within 30m) I got a notification that a fantastic property for a flip had been listed. Great location, decent price ($67k) with the potential for a profit of $40k or more on a 3-4mo timespan. Problem is with the cash we have in the bank + Wallet it comes out to *around* $115k or so. Take off $25k, then the $20k margin I want to keep in the bank for trouble spots, and we would barely have enough to finish the rehab/sales phase of it.
I'm not complaining - We're in a fantastic financial spot right now, when it's all said and done we'll be bringing in nearly $8k/mo gross from the rentals after all properties are accounted for. I hate to miss out on the chance of a quick $40k net profit on a flip.
Not sure what to do yet, I have a few guys that are interested in loaning us USD mortgages, but I'm in the early stages of working out the details.
...
TBH the biggest problem is I have about 10-20 messages in my box asking me how to properly structure a bitcoin business. It always skeeves me out to talk about legal stuff on a public forum due to lawsuits. Additionally, the other side of the coin is that i've been offered money to consult on the structure method as well, so if i Wanted to go that route instead of just not talking, it still would bode well for me not to post on a public site
Partners will hopefully get a email within a few days/weeks about the things we're moving to.
TBH the biggest problem is I have about 10-20 messages in my box asking me how to properly structure a bitcoin business. It always skeeves me out to talk about legal stuff on a public forum due to lawsuits. Additionally, the other side of the coin is that i've been offered money to consult on the structure method as well, so if i Wanted to go that route instead of just not talking, it still would bode well for me not to post on a public site
Partners will hopefully get a email within a few days/weeks about the things we're moving to.
Sorry about your inbox, didn't realize you're the go-to guy for properly structuring a Bitcoin business.
And an offered consultancy?
Are you considering, or does Full Power Asia Investment LTD, DBA Midwest Real Estate Investment Company, take up all of your free time?
I quit my 'normal' job to pursue this as RENT, however at this point it takes up shockingly little time (As in a few hours a week).
Anymore I occupy my time when I don't have anything to do with going out and helping the rehab crew. I've done a great deal of the work on the last property we've bought (Painting, ripping out carpet, drywall work). Wanted to do the plumbing on it, but one of our regular guys got in and fixed everything before I knew it.
There's another 506c exemption that we're eligible for that will further solidify our stance with regards to the SEC. I just can't mention it till it's done and we have all the paperwork completed.
Awesome. If the idiots would just quit dragging their feet on enacting the new legislation they already put in place the world would be a better place.
Best of luck.
Also , to clarify/modify my statement, the exemptions are part of the 506 ruling, I was wrong when I said it was 506c however it is one of the exemptions under that act.
...
TBH the biggest problem is I have about 10-20 messages in my box asking me how to properly structure a bitcoin business. It always skeeves me out to talk about legal stuff on a public forum due to lawsuits. Additionally, the other side of the coin is that i've been offered money to consult on the structure method as well, so if i Wanted to go that route instead of just not talking, it still would bode well for me not to post on a public site
Partners will hopefully get a email within a few days/weeks about the things we're moving to.
TBH the biggest problem is I have about 10-20 messages in my box asking me how to properly structure a bitcoin business. It always skeeves me out to talk about legal stuff on a public forum due to lawsuits. Additionally, the other side of the coin is that i've been offered money to consult on the structure method as well, so if i Wanted to go that route instead of just not talking, it still would bode well for me not to post on a public site
Partners will hopefully get a email within a few days/weeks about the things we're moving to.
Sorry about your inbox, didn't realize you're the go-to guy for properly structuring a Bitcoin business.
And an offered consultancy?
Are you considering, or does Full Power Asia Investment LTD, DBA Midwest Real Estate Investment Company, take up all of your free time?
There's another 506c exemption that we're eligible for that will further solidify our stance with regards to the SEC. I just can't mention it till it's done and we have all the paperwork completed.
Awesome. If the idiots would just quit dragging their feet on enacting the new legislation they already put in place the world would be a better place.
Best of luck.
... I just can't mention it till it's done and we have all the paperwork completed.
Why's that?
TBH the biggest problem is I have about 10-20 messages in my box asking me how to properly structure a bitcoin business. It always skeeves me out to talk about legal stuff on a public forum due to lawsuits. Additionally, the other side of the coin is that i've been offered money to consult on the structure method as well, so if i Wanted to go that route instead of just not talking, it still would bode well for me not to post on a public site
Partners will hopefully get a email within a few days/weeks about the things we're moving to.
... I just can't mention it till it's done and we have all the paperwork completed.
Why's that?
I have been talking to our corporate attorney concerning the SEC risks, now that VMC & Eric Vorhees have been charged with unregistered securities.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
Hey Branny,
Love what you are doing here but I did want to say this in regards to Section C.
Quote
However, in a Rule 506(c) private offering all of the purchasers must be accredited investors and the issuer must take reasonable steps to determine that the purchaser is an accredited investor.
Previously you could confirm accreditation by having people fill out a form confirming that yes they make $xxx,xxx or more per year or have the proper net worth. Under the new regulations though you would be responsible to actually verify this information and could only offer shares if you confirmed their net worth. It also has to be verified via a third party such as their banking institution and not just self submitted amounts.
A lot of people are waiting on the JOBS act to be fully enacted and I wish you all the best.
There's another 506c exemption that we're eligible for that will further solidify our stance with regards to the SEC. I just can't mention it till it's done and we have all the paperwork completed.
I have been talking to our corporate attorney concerning the SEC risks, now that VMC & Eric Vorhees have been charged with unregistered securities.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
Hey Branny,
Love what you are doing here but I did want to say this in regards to Section C.
Quote
However, in a Rule 506(c) private offering all of the purchasers must be accredited investors and the issuer must take reasonable steps to determine that the purchaser is an accredited investor.
Previously you could confirm accreditation by having people fill out a form confirming that yes they make $xxx,xxx or more per year or have the proper net worth. Under the new regulations though you would be responsible to actually verify this information and could only offer shares if you confirmed their net worth. It also has to be verified via a third party such as their banking institution and not just self submitted amounts.
A lot of people are waiting on the JOBS act to be fully enacted and I wish you all the best.
legendary
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I have been talking to our corporate attorney concerning the SEC risks, now that VMC & Eric Vorhees have been charged with unregistered securities.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
Glad you are taking a proactive approach to this problem with the Vorhees news
Hopefully the results are positive and we won't need to worry about unnecessary regulatory risks
Making it easier to manage the asset in the long term as well.
I have been talking to our corporate attorney concerning the SEC risks, now that VMC & Eric Vorhees have been charged with unregistered securities.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
So, at this point I feel that it is in the best interest of RentalStarter that we register our PPM with the SEC for a 506c exemption in order to be more compliant with the regulatory bodies here in the US. After we finalize this, we can talk more about how the company structure works to avoid any additional conflicts and problems.
The costs will be quite minimal for the SEC filings in the grand scheme of things, my brother has already done it for his company (BuyAHash) and found it to be quite painless. This will also benefit the company in the fact that we then can approach large accredited US investors to fund us further.
I'm still waiting on a official release from our lawyer on how it's structured, but until that time I can't give the outlay of how it works.
Our attorney works for multiple large funds who operate in both the US and Hong Kong. We have several layers of security and legal protections in place to deal with any SEC related issues.
Concerning vorhees - there's quite a bit of stuff going on behind the scenes that people can't talk about. The lawyer we have on retainer has offered some guidance to me about what's going on and it was confirmed by additional legal council.
Concerning the management fee the HK entity takes - That number is paid by my cut of the company equity. RENT pays for typical upkeep costs (Around $150 a year for secretary, mailing address and minor accounting bookkeeping). I am not a managing director of Full Power Asia Investment LTD, David Cho Sin Ong is, I also am not a shareholder in any capacity of the entity.
Additionally, JOBS act is on the horizon, we are nearly completely compliant from those I've talked to who have some idea on forthcoming rules. The ace up our sleeve is the fact that we do retain an accounting firm and a good attorney who are making sure that we're doing our best to be legally compliant in the countries we operate from.
Our attorney works for multiple large funds who operate in both the US and Hong Kong. We have several layers of security and legal protections in place to deal with any SEC related issues.
Concerning vorhees - there's quite a bit of stuff going on behind the scenes that people can't talk about. The lawyer we have on retainer has offered some guidance to me about what's going on and it was confirmed by additional legal council.
Concerning the management fee the HK entity takes - That number is paid by my cut of the company equity. RENT pays for typical upkeep costs (Around $150 a year for secretary, mailing address and minor accounting bookkeeping). I am not a managing director of Full Power Asia Investment LTD, David Cho Sin Ong is, I also am not a shareholder in any capacity of the entity.
Additionally, JOBS act is on the horizon, we are nearly completely compliant from those I've talked to who have some idea on forthcoming rules. The ace up our sleeve is the fact that we do retain an accounting firm and a good attorney who are making sure that we're doing our best to be legally compliant in the countries we operate from.
I'm not certain of my understanding of it. I figured I'd just let Branny talk about it. I believe what I said is true, but it may not be correct. Better to let him answer your questions...
@tempestb: Why did you delete your post?
Edit: Anyhow, not going to debate law on the interweb, but your scheme has all the sophistication of Ken Slaughter's
"Active Mining Corporation (AMC) is a Belize International Business Company DBA Active Mining Cooperative and is a wholly owned subsidiary of Virtual Mining Corporation (VMC) a Delaware Corporation." and
"AMC is a virtual identity totally owned by the Active Mining Corporation (Belize) that represents both itself and its profits."
Just stop. Wordplay and offshore shells are like catnip/chew toy to to baby feds--they get to cut their teeth on hapless amateurs before graduating to real bznz.
And as I said, I have no problem with what Branny is doing, hope everything works out for everyone.
Edit: Anyhow, not going to debate law on the interweb, but your scheme has all the sophistication of Ken Slaughter's
"Active Mining Corporation (AMC) is a Belize International Business Company DBA Active Mining Cooperative and is a wholly owned subsidiary of Virtual Mining Corporation (VMC) a Delaware Corporation." and
"AMC is a virtual identity totally owned by the Active Mining Corporation (Belize) that represents both itself and its profits."
Just stop. Wordplay and offshore shells are like catnip/chew toy to to baby feds--they get to cut their teeth on hapless amateurs before graduating to real bznz.
And as I said, I have no problem with what Branny is doing, hope everything works out for everyone.
This is how I understand it.
Branny isn't facilitating the sale of unregistered securities in the United States. The Hong Kong company is operating that. They exist and are real. It's not a front face with no office. There is a real Hong Kong company that is selling the shares and distributing the profits. Branny is not involved in the shares at all. Other than likely being a shareholder himself.
So what would Branny get arrested for? Buying properties that are owned by a Hong Kong company? It's legal in Hong Kong for the company to sell shares. So what exactly ?
You have to connect the dots that Branny is the one selling the shares. He isn't.
Branny isn't facilitating the sale of unregistered securities in the United States. The Hong Kong company is operating that. They exist and are real. It's not a front face with no office. There is a real Hong Kong company that is selling the shares and distributing the profits. Branny is not involved in the shares at all. Other than likely being a shareholder himself.
So what would Branny get arrested for? Buying properties that are owned by a Hong Kong company? It's legal in Hong Kong for the company to sell shares. So what exactly ?
You have to connect the dots that Branny is the one selling the shares. He isn't.
How much of a cut is this Hong Kong company taking for this honour?
Branny is an operative of the Hong Kong holding company. He isn't the one you bought shares from or whatever. It's a different thing. The company in Hong Kong is allowed to offer shares in their country this way.
Note, that the SEC understands this as the company that is dealing directly with the payouts. If Branny sends income to the Hong Kong holding company and they distribute to the share holders, then he is just their operative and this works fine. If, however, Branny is the one distributing payouts than regardless of the Hong Kong company ownership he would fall into the legal quagmire that Ken found himself in with his company being registered in Belize.
They follow the money. Where the money is being distributed is where the investment lives.
Note, that the SEC understands this as the company that is dealing directly with the payouts. If Branny sends income to the Hong Kong holding company and they distribute to the share holders, then he is just their operative and this works fine. If, however, Branny is the one distributing payouts than regardless of the Hong Kong company ownership he would fall into the legal quagmire that Ken found himself in with his company being registered in Belize.
They follow the money. Where the money is being distributed is where the investment lives.
What an unusual and creative defense! You've found the dreaded loophole the feds haven't considered, and now they's totally stumped. Boy howdy!
Assuming that what you propose is actually true, Branny is a US citizen operating from the US soil, facilitating the sale of unregistered securities (through an unlicensed Panamanian exchange) to US persons. So yeah, the SEC has both jurisdiction and ready access to Branny.
Being an agent of the mysterious Hong Cong company is neither here nor there. 10/10 will pwn.
Nothing against Branny or what he's doing here, but you should restrict your amateur lawyering to your own back yard.
ty
Branny is an operative of the Hong Kong holding company. He isn't the one you bought shares from or whatever. It's a different thing. The company in Hong Kong is allowed to offer shares in their country this way.
Note, that the SEC understands this as the company that is dealing directly with the payouts. If Branny sends income to the Hong Kong holding company and they distribute to the share holders, then he is just their operative and this works fine. If, however, Branny is the one distributing payouts than regardless of the Hong Kong company ownership he would fall into the legal quagmire that Ken found himself in with his company being registered in Belize.
They follow the money. Where the money is being distributed is where the investment lives.
Note, that the SEC understands this as the company that is dealing directly with the payouts. If Branny sends income to the Hong Kong holding company and they distribute to the share holders, then he is just their operative and this works fine. If, however, Branny is the one distributing payouts than regardless of the Hong Kong company ownership he would fall into the legal quagmire that Ken found himself in with his company being registered in Belize.
They follow the money. Where the money is being distributed is where the investment lives.
What are your plans if this happens: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541972520
Good job Branny go on with the project, and keep us update, as you do, regulary in the good way you usual do...
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