Topic: RentalStarter - A Midwest Real Estate Investment Company - page 27. (Read 120494 times)

How much do the local lenders want you to have before they give you loans? Have they give you any feedback (to get this loan you would need X income), or do they just say "no, you don't make enough"?

I think he means leverage. You take a loan for which you pay a low interest and you obtain a higher return. Eventually you pay off that loan and then the return on your initial investment has grown exponentially.

Can you explain how you would get exponent growth if you have a local lender?  I don't follow.

Thankfully we don't have a hugely difficult time finding quality properties.

Our 13% threshold is low enough that we hit quite a few candidate properties every time we search. Right now there are a few properties that are 13% or over in our desired neighborhoods. There are also a few flip candidates that would be great for returns.

The big thing is fundraising enough money to get enough properties to build enough monthly cashflow so we can try to lever via a local lender. This is the goal and if we can do it then we'll see exponential growth in the fund. If we don't, we'll trudge along at 13%-20% APY on the properties we have. Not ideal but not bad at all considering how terrible the bitcoin & bitcoin stock market has been the past 2-3 months.

Pretty much the optimal point of this company would be to liquidate Bitcoin assets at higher prices and then buy back Bitcoins from rental revenues at lower prices at least I think that is how it should work.

A big part of that is also finding good properties of course

And pays all its investors in Bitcoins as well.  So to convert out of Bitcoin means that when he collects the profits he has to convert back into Bitcoin.  That's stupid.  Better to keep a supply of coins to pay shareholders in Bitcoins and then save the Fiat from the property income. 

As Branny has stated as well, there are situations where he'd like to accept Bitcoin for rent.  Turning this into a Bitcoin business.  Currently it obviously is not.  But it's not just that he got a bunch of Bitcoins and turned them into cash.  He has to move the coins back and forth all the time to pay Dividends.  Ultimately if he gets people who want to do business in Bitcoin it could save him money on banking fees.

I agree that speculating with Bitcoins is not a way to run a business.  That said, cashing them out now when they are near or at the bottom is dumb unless you really think they are going to go lower.  We're in a crash situation today due to the PBOC, so it'd just be stupid to cash out now in my opinion.  It would be a panic move.  Better to wait for the dust to settle and try and cash out when it's worth more than it is now.  If he even wants to do that. 

It's not a company thats based in Bitcoins. It owns property, which is unrelated to Bitcoins. It should be fully invested and have no cash other than for contingencies, future investments etc.

If you want to bet on Bitcoin rising hold Bitcoins. This is Fiat investment (nothing wrong with that) that just happened to raise it's money through Bitcoins.

I get what you're saying, but then why even sell shares for Bitcoins?  You either are in a Bitcoin related business or you aren't.  If you aren't, you shouldn't be dealing in the coins period.  As the entire thing is up and down even in the process of buying and selling shares.  Bitcoin is part of the equation of this business until Branny decides to take it out of Bitcoin and put it into Fiat only.  Personally, I like backing a company that is based in Bitcoin.  I believe that the value of Bitcoin will continue to rise.  We're dealing with some China nonsense and a lot of speculation that will subside after this new fall over the PBOC.  You just need one country to latch onto Bitcoin and we'll be up into the thousands per coin.  This things can happen fast.  Don't get hung up on the bad news.  If you don't want to invest in Bitcoin businesses, there's a whole world of things you can invest in with Fiat.

The way I see it, speculation should be taken out of the equation as much as possible. This is an investment in the real world and Bitcoin is just a vehicle to enable the investment. I know it is not possible to segregate completely this risk but focus should be set on running a real estate business, not on when BTC price will rise or fall.

Note: I'm not criticizing Branny in any way, I just find it unfortunate that Havelock doesn't allow immediate releases to mitigate this risk

One month or until all the shares are sold, whichever comes first.

Andy

How long will the IPO be open?  Until all shares are sold?

Scioto's agent called and they're ready to close. Surprised they're closing so fast.

Likely will close by end of week.

Risk...

  Shareholders make up 30% of the company and after the first year get 30% of the net profits.  That's not a huge return being that the company is very small right now.  It's a long play, and the people who invest in Branny now may make out well in the future.  (Assuming Branny continues to do his best for the company and the shareholders and not turn into someone who abandons the project like so many others have.)  Though one has to worry about legal encroachment with these things.  (With everything Bitcoin related)

Also, I don't think Branny keeping funds in Bitcoin is a mistake.  Sure, the price is collapsing but if it rose the argument would go the other way.  Why weren't the funds kept in Bitcoin?  Realistically, we should be behind Bitcoin and be assured that its value will continue to rise.  Its value will rise again, it's just a matter of getting over this China Bank policy rumor fiasco.  Too many speculators laying in wait for the bubble to grow again, but not wanting to be in the crash.  I think we're near a bottom unless the PBOC announces stricter controls.  Then the market will react poorly, however it won't be able to get much lower and then start a gradual rise.  The rest of the world continues using it, demand will continue to grow.

I invest in RENT and continue to buy shares.  I intend to hold them as long as possible. 

This report makes very interesting reading.  The current price of RentallStarter at 0.0075btc is slightly less than the value of the assets  (Property, Cash and Btc). This means if Brandon cashed in all the assets the holders of the shares would more or less get all their money back.

I can't think of any other issue on Havelock which could do that. ASIC mining equipment very rapidly depreciates in value but houses (real bricks and mortar) will generally increase in value in time. The planned acquisition of an entire apartment block and most of CryptoREI will significantly improve "shareholder value".

What I don't understand is why the share issue hasn't been immediately fully subscribed. It is probably the most secure offering on the entire exchange, guess property isn't as sexy as bitcoin mining.

Full disclosure: I've got about 11000 RS shares and am really pleased with the way RS is performing. I'd buy more if I could.

Andy

We have to justify releases with havelock to get them, we get them released and converted to fiat when we go into contract on a next property (usually).

Good work! There's only one thing I don't like very much: having so many reserves in BTC (as I believe they must have lost a lot from their original value). Is there a reason you didn't convert them to fiat right away?

End of March financial performance PDF file is now available.

https://dl.dropboxusercontent.com/u/9427554/EndOfMarchFinancial%20release.pdf

Trying to re-vamp the rentalstarter.com site with projects/photos.

It works as an acquisition, CREI will maintain their branch in NC and we maintain ours here in Ohio. We provide some startup/seed capital, of which buys us a very sizable equity share in his business.


Additionally, myself and Benny from Buy-A-Hash will be meting CREI in person within the next week to make sure everything is in place for the project.

I understand, however actually talking to the person originating the fund I feel much more comfortable providing seed capital.

It's always a plus too that he's not far enough I couldn't drive down and break some legs should things go south (Joke).