Topic: RentalStarter - A Midwest Real Estate Investment Company - page 34. (Read 120494 times)

just leave the shares them, I belive once the dividends start flowing people will buy them

The goal of the new round of funding was to get us to a point we could get portfolio loans. I'm not sure the ease of obtaining them at the 40k sold mark, with  the 78k total sold I believe we have a good shot at it overall.

Once we obtain leverage, share issuance (IPO or otherwise) becomes moot because we can scale funding as much as we want.

Another option might be halving the remaining IPO shares, then co-listing the rest on Ciphertrade.

Why dont we do a mix of the 2 options?

Once the IPO is lifted you let , lets say, 10% of the shares at the IPO prices, so it doesnt becomes a HUGE sell wall and the prices can float once there is enough demand. After 1 month, or some other period, you drop another 10% at the  actual market price or at the the original IPO price(the highest between both), and so on.

I know that this system has its problems but it tries to conciliate both interests.But if we do have to chose one option I think the most helpfull one , at least in the long run, would be to have some shares to be sold to raise money. I dont necessary like this because I could need the money before the shares are sold but at least it brings a prospectus of growth .

I know that it would be better to have sold all the shares, but let's be honest, 50% of shares sold is a HUGE deal. PETA closed IPO with a HUGE HUGE amount of unsold shares, since its IPO closure it started mining and the shares more than doubled in price. I really belive, that the better options would be a escaleted growth: You raise some money, buy some properties investors, see the return, price rises, more share are issued, more properties are bought and so on... Normally this wouldnt , technically, raise the shares price but you said that once we hit a certain level there can be some leverage so share prices could rise.

I do appreciate the quartely audits and everything you said in the last thread and I personally belive that if this is done right and the reports are good it will raise visibility, transparency and trust and when the dividends start to appear(I know it takes some time) the price of the shares will go up and captialization will be easier

I'm open to all shareholder suggestions.

Do shareholder have a say what will happen to unsold shares?

We're not sure yet, Havelock has presented two options.

#1 - The remainder of unsold IPO shares will hit the market at .0055/share, and the share price will be allowed to float. Shareholders could undercut the IPO price if they need to liquidate, otherwise high price will be locked at .0055/share till they are all sold out.

#2 - We remove IPO shares from havelock and the price is allowed to float as if it was a normal stock.

I would prefer #1 as it would allow us to continue to raise funds. We have around 10 days to sell a little less than 40,000 shares. I don't know that this is possible considering all the crazyness with gox and such. The positive neobee news was fantastic for have lock which boosted our share sales, but was overshadowed by the demise/problems with gox.

We've raised enough funds right now to buy at least 3 properties (We're in contract for two), but our goal was to fund for around 30 properties.


To move a mobile home is much more involved than just hooking it up to a truck. Almost every park in our state requires you remove axels and attach it to the ground by some semi-permanent method. The cost to move a mobile home around here is about $1500 to $2000 if you're only moving it say 25mi.

It's also technically possible to move non-detached housing (Traditional houses) through the use of a company that moves houses. We've looked into it because once in a great while you find someone selling salvage rights to a house. This means you get the house but not the land. Typically it means that people go in and rip out anything valuable, then pay a company to tear the house down. Instead I have looked at hiring a company to split the house in sections, transport it to a new location and re-build it. The cost estimates I got were in the ~$20,000 range. It might sound like much, but you can buy salvage rights for less than $10,000 for a VERY nice house.

So, imagine this :

$10,000 salvage rights for a upscale house that is being turned into a parking lot.
$20,000 to move the house to a new location
$10,000 for utilities & foundation that matches your moved house
$10,000 for a nice house lot.

Total cost - $50,000

Now, if you could move a nice, well-built house that has history to a equally historical area, you could very well have a FMV of $150,000 to $200,000 which incurs a profit of $100,000-$150,000.

Granted this has nothing to do what you were talking about

interested to know about this too

Once the houses are bought should just be about renting but choosing the right location is important
Pretty hard to run away on a house unless its a mobile home or detachable dwelling (that one takes a bit more work though) Thinking the house that you can use a truck to move

Hello Branny,

I was wondering, what will happen to the remaining unsold shares after the IPO ? (If there is some)

have a good day

Not really, granted theoretically I could quit-claim the properties to myself and just say 'screw it they're mine' , but that obviously wouldn't hold up in court.


We've got 3 things we're going to implement hopefully by the end of this quarter to increase transparency/trust.

#1 - RentalstarterTV - The Rehab TV show that's mentioned on the last page of the business plan. We have almost all the video equipment together, I'm just trying to find a good format for it.

#2 - Monthly independent financial reports with quarterly audits. We have already chosen a firm that will be representing us, the job right now is tying it all together with online reporting of expenses to the bookkeeper/accountant then feeding that info back to investors.

#3 - We will develop a board a directors/advisers that will help steer the company and have access to confidential/secure documents. I really don't want some information to get out (Occupant lists, property addresses, copies of deeds, and so on) but do want to make them available in such a way that builds more trust. I think that developing a board of 5 trustworthy individuals would help reach this goal.

I believe it will, it's not like you can suddenly disappear with housing stock.

Let's just hope that it continues.

+1

Combination of transparency and hussle. I've bought some shares, considering buying more.

Really liking this investment. The properties they chose and the frequent updates by OP are great.

Bitfunder had the option for shareholders to elect re-investment, however HL does not have that option, you'd have to go into your account and buy more shares when you get your divs.

the dividend is too small especially for minor holders like me

You could buy new shares with each dividend you receive?

is there a return investment option? idc about dividends id rather see the value of stock gradually increase

Yes.


We suspended the direct dividend for a short period as the stock transitions to HL, we'll start up direct dividends shortly.

Was the dividend on 2014-02-15 only for havelock? I have direct shares and did not receive anything.