RentalStarter - A Midwest Real Estate Investment Company - page 31.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: ?? on ??

So to clarify you company only owns 1 property?

The LLC holds in its name 1 property, i hold one property in my name that will be quit-claimed over to the LLC shortly. I have made investors aware of this several times via our IRC channel on freenode at #rentalstarter.

We are under contract for 2 more properties and negotiating on a third. Of those properties, one will be in my name which will be quit-claimed over to the LLC at the same time larger house on Mill street will be (to save on fees for transfer), the two others will go directly to the LLC since they didn't have the weird AOI requirements.

Branny

sr. member

Activity: 406

Merit: 250

Branny

sr. member

Activity: 406

Merit: 250

Branny

sr. member

Activity: 406

Merit: 250

msm595

full member

Activity: 185

Merit: 100

Any update on direct shares or the dividends to them?

XliptTit

newbie

Activity: 56

Merit: 0

very well done Branny

bluebudgie

newbie

Activity: 14

Merit: 0

Got the email update from Havelock. Good luck on the offer and thank you for the consistent updates!

Branny

sr. member

Activity: 406

Merit: 250

I just sent out an announcement via HaveLock that we will be closing the IPO funding round as planned on the website. The current plan is to end funding tomorrow around noon EST, at this time shares will be tradeable on the market.

The inspection of the duplex in Chillicothe went quite well, we will be submitting an offer to the sellers shortly.

Dividend is expected to rise decently on the march payment due to the addition of 2/3rds of March rent from the new 3plex property @ 2 occupied units. This then naturally will rise due to April rent not being pro-rated.

So, after saying this my hope is that share prices will rise decently along with dividends through March and part of April, then we can potentially look at doing a 2nd round of funding via havelock at the increased share price, giving investors access to some liquidity and proof-of-concept equity as well.

We also were in talks today with a potential franchisee which went VERY well in my mind. This of course is in a very early stage, but if it went through it would bring investors even more income and diversity through our company.

XliptTit

newbie

Activity: 56

Merit: 0

Now that there are only 1/4 of the IPO left, I think, too, that the wisest think would be to wait 1-3 month, and them sell them at market price.You are providing a good level of comunication and have a business plan, I dont see how this wont take off once people see the dividends flowing.

Darkstone2

full member

Activity: 154

Merit: 100

I've brought some shares. The main thing pushing me over the line was the amount of information and discussion in this thread.

About the remaining IPO shares (it seems that currently about 1/4th is left), there where various options proposed in this thread:

Create a new IPO for the remaining shares at an higher price.
Put all remaining shares for sale at some price.
Offer an IPO at an later date

I think that option #3 is clearly superior. The reason for that is is that you have a lot of bitcoins. That creates a risk: what is the bitcoin would fall to $100 next week?
To minimize this risk, i suggest that the remaining shares are not offered for purchase until you have converted most of your bitcoins into cash.

Branny

sr. member

Activity: 406

Merit: 250

I decided against pursuing the whole-house rehab, I figure it ties up too much money for too long.

Today a very, very good deal came across my desk.

Duplex
4500 square feet (That's HUGE)
$39,900 purchase price.

Rent of $1400-$1500/mo

Needs 'little rehab' according to the agent in charge of selling it. Will be taking a look at it tomorrow.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: memvola on March 05, 2014, 04:59:46 AM

Quote from: Fermain on March 05, 2014, 04:05:34 AM

This was discussed on the previous page

Yes, I was the one asking. I am more interested in the contract clause rather than its planned effect though. I want to buy IPO shares, hence the urgency.

One last thing. What is the plan if anything unfortunate happens to Brandon?

Hope for the best, plan for the worst.

I'll try and get some exact verbiage done and get it added to the contract/plan by the end of the week.

Contingency plan right now is to get our contractor/management people trained well, so if anything happens to me the operations will continue smoothly. Ben from BuyAHash.com would likely take over. He wouldn't be able to grow the company IMO like I can, but he has some real estate experience and is more than knowledgeable about cryptos.

memvola

hero member

Activity: 938

Merit: 1002

Quote from: Fermain on March 05, 2014, 04:05:34 AM

This was discussed on the previous page

Yes, I was the one asking. I am more interested in the contract clause rather than its planned effect though. I want to buy IPO shares, hence the urgency.

One last thing. What is the plan if anything unfortunate happens to Brandon?

Hope for the best, plan for the worst.

Fermain

newbie

Activity: 4

Merit: 0

Quote from: memvola on March 05, 2014, 03:58:08 AM

Quote from: Branny on March 04, 2014, 02:04:19 PM

Yeah, that's essentially what will happen. I need to update the business plan just reflecting what happens in the case of default/bankruptcy/ect.

Granted the plan has been to look at liquidation of some/many properties 5-6 years from now once they've appreciated a good deal.

Can you briefly describe how the dissolution clause will look like in the contract, before the IPO is over? In essence, do you agree that the totality of net value should be distributed to the investors? Will you take a percentage cut or a management fee for the liquidation process, and will you consider distributing the profit margin and initial investment value separately? I'm personally not interested in exact numbers, but the general idea.

Sorry for emphasizing "the end", I actually think this has the potential to become a global enterprise.

Quote from: Branny on March 04, 2014, 08:29:34 AM

Quote from: Peter Lambert on March 04, 2014, 08:25:22 AM

Quote from: Branny on March 04, 2014, 08:07:44 AM

Quote from: memvola on March 04, 2014, 07:50:06 AM

I am considering to invest some more in this but I can't seem to find a liquidation clause in the documents provided.

I hope I'm not getting this right, but as it stands, if the company decides to close up shop, 70% of all the assets will go to the issuer.

Can you elaborate on this?

At the moment we don't have a clause, but we could add one that would state that say 70% of the asset proceeds go to dividend holder, or otherwise they get the bulk of the proceeds from liquidation.

why wouldn't 100% of the asset proceeds go to share holders?

If we liquidated the value say next month the value it would pay back to investors would be about 140% of current investment. To liquidate the properties it would take 3-6 months of work on my end (Or otherwise a liquidation firm is hired and paid 10%-20% of the gross capital, most of the time they only get 70% of ARV on properties, so that means investors would net around 50%-60% of total value).

The way we're structured allows for an orderly liquidation process that would pay back investors essentially all their investment and potentially more than that.

The reason for mentioning the 30% or so cut for myself would be payment for time/involvement of liquidation, which would almost guarantee more profit to investors than hiring a outside firm.

This was discussed on the previous page

memvola

hero member

Activity: 938

Merit: 1002

Quote from: Branny on March 04, 2014, 02:04:19 PM

Yeah, that's essentially what will happen. I need to update the business plan just reflecting what happens in the case of default/bankruptcy/ect.

Granted the plan has been to look at liquidation of some/many properties 5-6 years from now once they've appreciated a good deal.

Can you briefly describe how the dissolution clause will look like in the contract, before the IPO is over? In essence, do you agree that the totality of net value should be distributed to the investors? Will you take a percentage cut or a management fee for the liquidation process, and will you consider distributing the profit margin and initial investment value separately? I'm personally not interested in exact numbers, but the general idea.

Sorry for emphasizing "the end", I actually think this has the potential to become a global enterprise.

tempestb

hero member

Activity: 729

Merit: 500

Considering adding a FAQ to the business plan so that over-time when repeat questions come in, you can just point people to the FAQ to save yourself time.

I like the idea of flipping the house, obviously I'd check to make sure all the proper permits are in place on the work already done so you don't find out that half of it has to be torn down. Home values are going to continue to rise (You have to put a growing population somewhere) so any time spent on work being done should grow the value as well. I say go for it.

If it turns out to be a failure, it'll be an inexpensive failure (Over the long haul) and can provide some insight on potential unknown variables when doing something like this.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Peter Lambert on March 04, 2014, 01:14:09 PM

Quote from: Branny on March 04, 2014, 08:29:34 AM

Quote from: Peter Lambert on March 04, 2014, 08:25:22 AM

Quote from: Branny on March 04, 2014, 08:07:44 AM

Quote from: memvola on March 04, 2014, 07:50:06 AM

I am considering to invest some more in this but I can't seem to find a liquidation clause in the documents provided.

I hope I'm not getting this right, but as it stands, if the company decides to close up shop, 70% of all the assets will go to the issuer.

Can you elaborate on this?

At the moment we don't have a clause, but we could add one that would state that say 70% of the asset proceeds go to dividend holder, or otherwise they get the bulk of the proceeds from liquidation.

why wouldn't 100% of the asset proceeds go to share holders?

If we liquidated the value say next month the value it would pay back to investors would be about 140% of current investment. To liquidate the properties it would take 3-6 months of work on my end (Or otherwise a liquidation firm is hired and paid 10%-20% of the gross capital, most of the time they only get 70% of ARV on properties, so that means investors would net around 50%-60% of total value).

The way we're structured allows for an orderly liquidation process that would pay back investors essentially all their investment and potentially more than that.

The reason for mentioning the 30% or so cut for myself would be payment for time/involvement of liquidation, which would almost guarantee more profit to investors than hiring a outside firm.

Why does this involve talking about the pre-liquidation value at all? If you are going to liquidate, you sell off the properties, paying whatever trading fees are applicable, and convert everything left to bitcoins. Then 100% of that amount should be distributed to the shareholders, right?

Yeah, that's essentially what will happen. I need to update the business plan just reflecting what happens in the case of default/bankruptcy/ect.

Granted the plan has been to look at liquidation of some/many properties 5-6 years from now once they've appreciated a good deal.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Chris_Sabian on March 04, 2014, 12:25:44 PM

Quote from: Branny on March 04, 2014, 11:42:43 AM

Looked at a new house today, it could represent a very interesting proposition.

A construction company (A guy that runs it) bought a house to flip. He ran out of cash halfway through the flip, the whole property has been gutted and a huge addition has been added to the home resulting in ~2500 square feet of home. There is no plumbing, electrical or drywall.

He's got over $50k in it, told me he would take $40k. By his estimate (And I agree) it needs $30k more to finish the house.

4bed
2 bath
~2500sf
2 car detached garage
Decent part of town

He's asking $40k + $30k for rehab.

I think the property is worth $100k-$110k when it's complete and would take approximately 2 months to rehab and then 2-3 months to sell. This would result in a ROI of *about 40% in a few months. The risk of the deal is it not selling, if it doesn't sell, we could rent it out for $850-$1000/mo , which would provide ROI of about 12%. This is lower than our threshold, but not bad.

I don't have any major opinion either way on it, other than considering it, and offering $32k-$35k and not their asking price.

Make the offer for $32k-$35k and see what happens. It could be an easy flip. If it doesn't sell, you can always rent it. It sounds like a good opportunity to make an offer on

Maybe I'll do that later in the week. *Maybe* we could get some work started on it prior to doing the other property on E mill street (They're both within spitting distance).

Peter Lambert

hero member

Activity: 756

Merit: 500

It's all fun and games until somebody loses an eye

Quote from: Branny on March 04, 2014, 08:29:34 AM

Quote from: Peter Lambert on March 04, 2014, 08:25:22 AM

Quote from: Branny on March 04, 2014, 08:07:44 AM

Quote from: memvola on March 04, 2014, 07:50:06 AM

I am considering to invest some more in this but I can't seem to find a liquidation clause in the documents provided.

I hope I'm not getting this right, but as it stands, if the company decides to close up shop, 70% of all the assets will go to the issuer.

Can you elaborate on this?

At the moment we don't have a clause, but we could add one that would state that say 70% of the asset proceeds go to dividend holder, or otherwise they get the bulk of the proceeds from liquidation.

why wouldn't 100% of the asset proceeds go to share holders?

If we liquidated the value say next month the value it would pay back to investors would be about 140% of current investment. To liquidate the properties it would take 3-6 months of work on my end (Or otherwise a liquidation firm is hired and paid 10%-20% of the gross capital, most of the time they only get 70% of ARV on properties, so that means investors would net around 50%-60% of total value).

The way we're structured allows for an orderly liquidation process that would pay back investors essentially all their investment and potentially more than that.

The reason for mentioning the 30% or so cut for myself would be payment for time/involvement of liquidation, which would almost guarantee more profit to investors than hiring a outside firm.

Why does this involve talking about the pre-liquidation value at all? If you are going to liquidate, you sell off the properties, paying whatever trading fees are applicable, and convert everything left to bitcoins. Then 100% of that amount should be distributed to the shareholders, right?

Chris_Sabian

legendary

Activity: 896

Merit: 1001

Quote from: Branny on March 04, 2014, 11:42:43 AM

Looked at a new house today, it could represent a very interesting proposition.

A construction company (A guy that runs it) bought a house to flip. He ran out of cash halfway through the flip, the whole property has been gutted and a huge addition has been added to the home resulting in ~2500 square feet of home. There is no plumbing, electrical or drywall.

He's got over $50k in it, told me he would take $40k. By his estimate (And I agree) it needs $30k more to finish the house.

4bed
2 bath
~2500sf
2 car detached garage
Decent part of town

He's asking $40k + $30k for rehab.

I think the property is worth $100k-$110k when it's complete and would take approximately 2 months to rehab and then 2-3 months to sell. This would result in a ROI of *about 40% in a few months. The risk of the deal is it not selling, if it doesn't sell, we could rent it out for $850-$1000/mo , which would provide ROI of about 12%. This is lower than our threshold, but not bad.

I don't have any major opinion either way on it, other than considering it, and offering $32k-$35k and not their asking price.

Make the offer for $32k-$35k and see what happens. It could be an easy flip. If it doesn't sell, you can always rent it. It sounds like a good opportunity to make an offer on

Topic: RentalStarter - A Midwest Real Estate Investment Company - page 31. (Read 120494 times)