RentalStarter - A Midwest Real Estate Investment Company - page 32.

Fermain

newbie

Activity: 4

Merit: 0

Quote from: Branny on March 04, 2014, 11:43:14 AM

Quote from: Fermain on March 04, 2014, 11:33:49 AM

I've been lurking on this thread for a while and decided to take the plunge on Havelock.

Is there a way I can verify myself to get access to the newsletter, google docs, et cetera?

Cheers

I now use the havelock list + old newsletter list for emails, so you'll get them on the next sends.

Great, thanks

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Fermain on March 04, 2014, 11:33:49 AM

I've been lurking on this thread for a while and decided to take the plunge on Havelock.

Is there a way I can verify myself to get access to the newsletter, google docs, et cetera?

Cheers

I now use the havelock list + old newsletter list for emails, so you'll get them on the next sends.

Branny

sr. member

Activity: 406

Merit: 250

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.

Fermain

newbie

Activity: 4

Merit: 0

I've been lurking on this thread for a while and decided to take the plunge on Havelock.

Is there a way I can verify myself to get access to the newsletter, google docs, et cetera?

Cheers

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Neo.op on March 04, 2014, 09:21:16 AM

Quote from: Branny on March 04, 2014, 08:06:53 AM

Quote from: Neo.op on March 04, 2014, 05:19:05 AM

This is something interesting, I have some questions:
a. How do you hedge the currency risk? With rentals being denominated in USD, the actual dividend pay out will be depended upon the actual conversion rates.
b. Following from above, how do you decide on rates while paying the dividends? Will it be the actual market rates on 15th?

There's always currency risk in something like this until we start taking BTC as pay for rentals. I don't know when this will happen as everyone is paid in fiat for their jobs in my area.

We announce the dividends from the 10th-14th when we use the rates on that period for conversion.

That my friend doesn't really inspire confidence. Just because the risks exist doesn't mean there shouldn't be a mitigating factor. A hedge perhaps?

The 10th-14th date range - will the rates be market rates when the dividend is declared? Or say if 10th going rate per btc is 400 USD and increases to 500 USD or decreases to 600 USD - how will those be handled.

BTw, any stats on the rent renewals in the area? I have been reading up on the renting business and neither Blackstone's, Colony American Homes, American Homes 4 Rent etc are not really doing well.

The lower the BTC value in USD the more investors get paid. If USD:BTC is $400 and we are distributing $800 worth of bitcoins, then investors get paid 2btc on the 15th regardless of what the price is on the 15th.

Did you look at the 34 page business plan? There should be links in there to a few rental statistic pages. Our area's gross occupancy rate is in the 97% range for rentals. Re-rents aren't a good metric because it's usually offset by vacancy allowances and rent increases. With a 30 day vacancy notice requirement on the part of the renters, it allows most landlords to rent the property out before it's un-occupied.

Neo.op

sr. member

Activity: 1092

Merit: 254

Quote from: Branny on March 04, 2014, 08:06:53 AM

Quote from: Neo.op on March 04, 2014, 05:19:05 AM

This is something interesting, I have some questions:
a. How do you hedge the currency risk? With rentals being denominated in USD, the actual dividend pay out will be depended upon the actual conversion rates.
b. Following from above, how do you decide on rates while paying the dividends? Will it be the actual market rates on 15th?

There's always currency risk in something like this until we start taking BTC as pay for rentals. I don't know when this will happen as everyone is paid in fiat for their jobs in my area.

We announce the dividends from the 10th-14th when we use the rates on that period for conversion.

That my friend doesn't really inspire confidence. Just because the risks exist doesn't mean there shouldn't be a mitigating factor. A hedge perhaps?

The 10th-14th date range - will the rates be market rates when the dividend is declared? Or say if 10th going rate per btc is 400 USD and increases to 500 USD or decreases to 600 USD - how will those be handled.

BTw, any stats on the rent renewals in the area? I have been reading up on the renting business and neither Blackstone's, Colony American Homes, American Homes 4 Rent etc are not really doing well.

Branny

sr. member

Activity: 406

Merit: 250

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.

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, 08:07:44 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?

Branny

sr. member

Activity: 406

Merit: 250

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.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Neo.op on March 04, 2014, 05:19:05 AM

This is something interesting, I have some questions:
a. How do you hedge the currency risk? With rentals being denominated in USD, the actual dividend pay out will be depended upon the actual conversion rates.
b. Following from above, how do you decide on rates while paying the dividends? Will it be the actual market rates on 15th?

There's always currency risk in something like this until we start taking BTC as pay for rentals. I don't know when this will happen as everyone is paid in fiat for their jobs in my area.

We announce the dividends from the 10th-14th when we use the rates on that period for conversion.

memvola

hero member

Activity: 938

Merit: 1002

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?

Neo.op

sr. member

Activity: 1092

Merit: 254

This is something interesting, I have some questions:
a. How do you hedge the currency risk? With rentals being denominated in USD, the actual dividend pay out will be depended upon the actual conversion rates.
b. Following from above, how do you decide on rates while paying the dividends? Will it be the actual market rates on 15th?

Branny

sr. member

Activity: 406

Merit: 250

Quote from: Peter Lambert on March 03, 2014, 04:58:16 PM

Quote from: Branny on March 03, 2014, 04:44:16 PM

Quote from: miketonic on March 03, 2014, 12:57:23 PM

Count me in Cheesy

Made my first purchases yesterday, it's exciting to see how this plays out

Looks promising.

I think we'll do pretty good, we were able to utilize equity pretty quick on the first ~150btc that was invested. Dividend will double (or should) on this next disbursement.

Good to know that previous holders assets are not just being diluted.

90%+ of all new capital coming in goes directly to new properties, so there really isn't dilution when we issue more shares. The only loss to investors (theoretically) is loss of liquidity due to new share issues.

Peter Lambert

hero member

Activity: 756

Merit: 500

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

Quote from: Branny on March 03, 2014, 04:44:16 PM

Quote from: miketonic on March 03, 2014, 12:57:23 PM

Count me in Cheesy

Made my first purchases yesterday, it's exciting to see how this plays out

Looks promising.

I think we'll do pretty good, we were able to utilize equity pretty quick on the first ~150btc that was invested. Dividend will double (or should) on this next disbursement.

Good to know that previous holders assets are not just being diluted.

Branny

sr. member

Activity: 406

Merit: 250

Quote from: miketonic on March 03, 2014, 12:57:23 PM

Count me in Cheesy

Made my first purchases yesterday, it's exciting to see how this plays out

Looks promising.

I think we'll do pretty good, we were able to utilize equity pretty quick on the first ~150btc that was invested. Dividend will double (or should) on this next disbursement.

miketonic

full member

Activity: 185

Merit: 100

Count me in Cheesy

Made my first purchases yesterday, it's exciting to see how this plays out

Looks promising.

Branny

sr. member

Activity: 406

Merit: 250

I could do the same thing, but like I said, 90% of my posts are here. If you guys want to get RentalStarter signatures done, that's fine by me

I just don't see the point in me having it done.

Adeally

newbie

Activity: 13

Merit: 0

Quote from: Branny on March 01, 2014, 12:03:24 AM

Quote from: lemfuture on February 28, 2014, 05:00:41 PM

can someone make a good signature design for rental starter pls?

Signature design?

This guy has some pretty cool bb-code sig designing skills:

Quote from: Bitcoinwunder on February 28, 2014, 04:33:05 PM

Sure, signatures design is only recommended for Hero & Senior Members.

I meant I'm available for anything else. Regular graphic design without BB-Code. Wink

Branny

sr. member

Activity: 406

Merit: 250

Quote from: lemfuture on March 01, 2014, 08:13:03 AM

Quote from: Branny on March 01, 2014, 08:03:49 AM

Quote from: QuanSushi on March 01, 2014, 04:39:14 AM

I guess he means these little things people paste into their signature:

User
Text text text
text text.
_________________
RENTal starters - bla bla advertise click me <- signature

I rarely post outside of this specific bitcointalk thread. Won't be too useful.

oh i thought a lil more exposure would help gather more potential investors

I'm not worried about it too much, if we truly felt the need to market it I'd start buying ads on this forum and expose the asset to the 1 million users on this website.

lemfuture

hero member

Activity: 686

Merit: 500

Quote from: Branny on March 01, 2014, 08:03:49 AM

Quote from: QuanSushi on March 01, 2014, 04:39:14 AM

I guess he means these little things people paste into their signature:

User
Text text text
text text.
_________________
RENTal starters - bla bla advertise click me <- signature

I rarely post outside of this specific bitcointalk thread. Won't be too useful.

oh i thought a lil more exposure would help gather more potential investors

Topic: RentalStarter - A Midwest Real Estate Investment Company - page 32. (Read 120494 times)