Topic: RentalStarter - A Midwest Real Estate Investment Company - page 33. (Read 120426 times)

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

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

Signature design?

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

All the oil/gas stuff is gonna be pretty far off to actively go after.

Unless they run another national pipeline through the county (There are 2 already, and 2 more planned). Then you just start collecting checks without doing much

I'd keep eyes on the housing / rent that you've been wisely doing.  The other stuff has the potential for larger profits but also has some risk.  What if the farmer next door doesn't want it?  What if the zoning doesn't want to change?  At least right now anyway, you are buying properties that are already making money and don't have to rely on a sale to get money out of them. 

As to Fracking...  I think if you were able (Down the road) to purchase a bunch of houses in a certain area you would be able to vote in the fracking and could mandatory pool in stragglers.  You would reap the profits from the Fracking being on your land and also be able to collect the rent from the renters.  A double win.

The shale formation is right about where we are located (At worst, one county away). Fracking is a HUGE thing here, and I know of locals who have become rich overnight due to granting fracking rights on their properties to mid-sized oil companies.

Oil & mineral is definitely on the menu in a few years, however I would prefer to look at farming and timber rights before. I've sat down with a local farmer going over some numbers to confirm whether one of my strategies would work and he agreed wholeheartedly.

Farmers hate the idea of mixed use/subdividing land. There are quite a few properties I've found that have say 100 or 200 acres, but also have a nice big house (Or multiple houses) on the lot.

For instance...

2 relatively nice houses on one lot, said lot is 120 acres with 20ac of woods, the rest being tillable. Purchase price on the property is $650k.

Well, right off the bat, it's pretty well known that 100ac of tillable land is EASILY worth $400k as long as it's not flood plains. So, then you need to start considering the property. Farmers won't even consider it because it's 'too much work' to deal with the houses, I've actually seen farmers tear down brand new homes on properties just to recover an extra acre or two of land.

So, in the above situation you valuate the houses. House A is worth $100k and house B is worth over $200k with 10ac of land.

So you subdivide the property in 3 parcels - 100ac for farmland & access, house A with say 3 acres, house B with 17 acres. Sell house A & B and get $300k out of them, leaving you with 100ac of farmland at an expense of $300k. Even marginal farmland is worth $400k, so you do some digging and figure out if you can sell say 30ac off to an adjoining farmer for $6k/ac (Or you could sell off frack rights for $1k/ac). You would end up with $6k*30ac = $180k from said lot, which pushes your total cost on the remaining 70ac down to just $170k for 70ac of good farmland. Good farmland will cash rent for $250/ac per year which ends up at $17.5k/ac, or a little over a 10% return, no taxes or insurance are figured in because they're non-factors for farmland. Not a ton of work in the project, but you end up with good farmland for as long as you want. Farmland is always a good thing to have as it hedges real estate bubbles pretty well.

This exact scenario also plays out for timber rights, with the property being HEAVILY loaded on the front end for a one-time timber right cashout. Timber takes 20-30 years for the good stuff and 5-10 years for the cheaper woods. 100ac of quality oak could bring in easily $500,000 in profit in just one month, and i've seen *some* cases where said land only sold for $200k or less, or an instant-profit of $300k for a few months of work. Then you could take the land and either replant for another harvest in the future, or sell off rural acres for recreation.

me too paycheck to paycheck   

I know we're getting further off the topic of housing and onto resource extraction and mineral rights, but now that you mentioned them I'm curious as to what the options for oil/gas would be. I know that DZ held a group buy on the forum that allowed accredited investors (aka people with really large amounts of BTC) to invest in an oil/gas company's fracking wells. Would there be even a remote possibility of something like that happening, but for those of us who are not accredited? I know the Marcellus Shale Formation extends from mid-Pennsylvania into Ohio, and with the winter being this cold  and the price of nat gas spiking (well, returning to prices seen in the earlier 2000's  ), wells that weren't really economically viable before might start becoming viable again.

PS buying some more IPO shares to give you more cashflow for houses/resources/beanie babies/whatever.

And there's nothing preventing us from getting into resource rights either in Ohio (Timber and gas are HUGE). I've got a couple of timber cruisers I can tap, and do have a few good oil/gas guys i'm in contact with as well.

Touche Branny I tip my hat to you that was well played sir.

Your right it is possible to move a house split it into four and be able to make a significant profit if you move it to the right location
Salvage rights do come in handy
Example Shale Gas is found in X
You then buy a cheap upscale house and buy a lot and move the house there and make a large profit as more people look for houses in that area, I explained a resource play but it works with housing as well.

I've got a few things going for me which benefits the investors.


I'm young.
Median landlord age in the area is well above 60. I'm more than half of that, and talking to some of the bigger landlords, many have indicated to me they plan in the next 10 years to liquidate their entire portfolios. Some guys have just one or two properties, one guy I know has 25 or 26. There are few guys getting into the game because of the work and capital involved. Acquiring capital to buy properties is next to impossible unless you come from a wealthy family (And then, if you're from a wealthy family, who the heck cares about dirty rentals?)

I know the market
I've been assessing properties for banks since 2006 and have done well over 1400 propertes between all the banks I work with. I am typically within 5% or 10% of market value on a 30m value estimate + inspection. It helps when we have to make a snap decision on a property, instead of spending 1-2 weeks on inspections, a formal appraisal and the like.

Our market is fantastic
Low vacancy, high rental increases and a stable market all benefit central Ohio. We don't appreciate like California or Florida, but when we crash we don't go down too bad. Cost of living is low so it means access to very cheap labor.

The example was to show what bigger money can buy. I'd need at least 10 guys on a rehab team to tackle something like that in a reasonable time span.

BUT , for almost 36% APY un-levered it'd be absolutely worth it.

That is close to 1 million, I dont think we have that yet.

let's throw out some money, everyone empty your pockets 

That was the case with SFI but not PETA. Hopefully interest will drum up later on.

On a side note, I got word that a local *big* multifamily project is complete. I was hired by a large lender to do contract work for valuation and was proven pretty darn right.

16 two-family 2 bed townhouses (Total of 32 units)
Purchase price - $250,000
Total rehab needed - $480,000 ($15,000 per unit).

Total cost - $730,000

Monthly income per unit $699 (Up from $450-$500 in their old, dilapidated state)
Total yearly complex income - $268,416

36.8% basic return per year.

Don't worry about the IPO not selling out.

Based on watching previous IPOs on Havelock, there's a lot of last-moment purchases.

I too would suggest to split the remaining unsold shares. Set as many asks as you need for a good foundation to do business. Should the share prices increase thanks to more demand, then you can still sell the rest to raise additional funds (maybe for a higher price even).

I would LOVE to issue bonds.

The problem so far has been the lack-luster response when i've mentioned them. For RentalStarter as a stock to be profitable, we can offer 6%/APY in fixed interest on the properties at a max of 70% LTV (To insure the least amount of liquidation risk to bondholders). It would be a secure return, based on USD, but like I said, the last time I mentioned offering them, I got very, very little response.

The only tweak I could think of would be fixed buybacks that prevent the issuer from buying them back in the case of a currency collapse.

If any of you would consider a bond, I'd issue them in a heartbeat right now if we could secure more than $50,000 in bonds.

Have you considered listing a bond-type instrument along with the stock shares? So instead of getting leverage financing through traditional banks you could get financing from the bitcoin community?