Topic: RentalStarter - A Midwest Real Estate Investment Company - page 36. (Read 120426 times)

Good plan Branny, just dont use too much leverage

Yes, this div payment factors in 0% of havelock funds + an additional $20,000 in capital we haven't utilized from the Bitfunder round of funding.


If you look at the 5 year plan, after full implementation we can keep pace with BTC increasing by more than 50% per year by using leverage on the properties. This is the only way to keep pace, but it is our believe that by doing so we can continue to increase BTC & USD relative yields to investors even as BTC grows.

Additionally ,we are hedging against BTC growth by not cashing out all BTC funding immediately, instead we're trying to blend withdrawls in a way where we only access BTC as we need it.

The thing is not to think in Btc terms, but in USD. You should not buy this thinking that btc will go up.Basicaly the op is using a better funding alternative than any other avaliable to him. Mining is the only thing I can think of now that strongly benefits itself of increasing btc prices.

If bitcoin becomes mainstream we should receive the same USD amount but this will translate in lower bitcoin amount.THe way I see this is just a business that happens to pay in BTC, if you intend to be on a buy position on bitcoin this isn't the best way. What we are seeing here is bitcoin enabeling financing that otherwise would be too proibitive.

Yep.  Maybe if OP made his tenants sign long leases with rent set in Bitcoin...

By raising funds with bitcoin via Havelock, you are essentially hedging that the price of bitcoin will fall or remain the same.  If the price of bitcoin increases, then the dividends paid to investors will be lower due to a fixed amount of monthly income in USD.

Likewise, in order for the price per share to increase, there should to be a drop in bitcoin price.

I'm having trouble seeing how this IPO is viable long term if bitcoin becomes mainstream.

which means that once the money starts beeing deployed in real state the yeld will grow, right?

Just announced the div on havelock for Saturday.

0.00001310 per share, total of about 1btc in dividends at current price. Slight increase from last estimate.

Actual yield on utilized capital is around 8%, the 2.86% figure on havelock accounts for only utilized capital, which accounts for only around 40% of total invested into RentalStarter.

If you have any questions, let me know

They get diluted in the sense that they own a smaller % of the total income of the company.

However as it stands, the  company uses the vast majority of funds (90%+) to buy more properties, so while the percentage of ownership, or shares of stock is less, their income doesn't change significantly since the new capital buys new properties.

For instance - With the ~$92,500 raised on bitfunder we bought two properties that produce a gross income of $1,600/month.

With the $1.125m we hope to raise on Havelock, we expect to buy 30 more properties which we expect ~$20,000/month in gross income from.

We want to retain the option of raising up to a total of $2m in funds via shares/IPOs, however this isn't set in stone (Absolutely no further than this, but very possible to do the $1.125m and no more).

Once we reach around $1m of total funds raised, or $15,000 in gross income a month, whichever comes first, we want to start approaching banks. This has been the goal since the start, since we can obtain loans at or around 5% interest. When we can obtain quality financing, there's no reason to ever issue any more shares because the benefit to everyone (including myself) is much greater than just issuing more shares. The $1m-$2m fundraising goal I have set has to do with this. I feel that the closer we get to $2m (Which would be around $40k in gross income per month) would give us a much better position than $1m, and potentially better access to better loan programs.

With the loaned money, we essentially arbitrage the difference between the 5% bank's loan rate, and the ~14% ROI we get on rentals, about 9% interest. What's significant about this is that we keep rolling the same capital over and over again without fresh investor capital. We can do this because on every property we buy, we add value.

I see, thanks for clearing this.

I have another question: how does this IPO relate to the first IPO you did on Bitfunder? Are we going to share profits with the first investors (in other words, are their shares being diluted with this new IPO?) What will happen in case there are more IPOs in the future in this respect?

We're in the process of meeting US's SEC requirements with our company which is a hong kong based LTD. We're in the final stages of PPM formation and hopefully will have something out relatively soon. A stock we work with has already received tentative approval from the SEC for their bitcoin-funded business and they are registered in the US.

Additionally, from what I can tell , investors aren't actually investing in 'rental starter'. They're really investing in the havelock's exchange, which then funds our HK corporation from those proceeds acting as a proxy for investment to our company. If we could somehow get certification for havelock's role in this, we then would meet SEC approval without issuance of a PPM.

Don't know if this has been answered before, but my main concern are the legal problems that other US-based companies who have listed BTC-based securities have had to face. I like the plan and the market, but I'm a bit worried that one day the SEC will slap down on the company for issueing unregistered securities.

Havelock emails me a CSV file of all shareholders at least once a day.

any pending legalized-thefts/repos on his record?

chinese btc repo>rent sharktooth? lol.

I see two possible reasons to invest in this compared to publicly traded REITs.
1) Tax avoidance. Payments to investors are in BTC.
2) Invest micro cap company that has more growth potential

One of the better offerings on Havenlock but I already have lot of money in REITs so I will pass. Also as this is currently USD based business, I am more interested in publicly traded REITS(with burden and benefits of regulation).

What I meant by early was to get the div scheduled today or tomorrow noting that the roughly .7btc was set to disburse on the 15th in hope of increasing buys.

Do you mean that you are going to change the dividend date from the 15th of Feb?  If so, how will this change:

We are now live on havelock!

I'm going to try and get the dividend scheduled early.

Payment will be for Logan AND mill street.

$1,100 payment * 47% investor share = $517 @ $750/btc= .6893btc.


Based on the 47k outstanding shares, that would come out to 0.0000146660btc or 1.1c a share.

This is something that will be dived into in greater detail on future revisions and was neglected during this phase due to all the other data we wanted to work on.

The goal since Day #1 with RentalStarter was to develop a sort of DIY video course for landlording here in the US. We have the equipment ready to do it, we just need more properties to start. I've received many, many emails and phone calls from investors who want to do real estate the same way we're proposing to. The biggest problem is learning how to do it in a repeatable way. The video course we would offer would help people do this. The second biggest problem is finding financing. If we got to the point (Which is certainly what we are shooting for) , we would eventually have majority market share in Central Ohio. Branching out into other states is do-able, but to really scale income it would be best to incorporate a franchising strategy. We can do this by training potential landlord partners through the video & coaching series. We either then could partner with them as a hard money lender, OR utilize them as a bird-dog in local areas we want to expand to. This would definitely be new territory in the industry as I'm not aware of any REIT that franchises like this. It's still in the very early conceptual stages, but the feedback I've been getting has been phenominal, and the cost to investors is virtually nothing to try and test it.


When writing the business plan as posted in the original post, I had two options - Do it myself, or have someone else do it.

I talked to a few firms that compile plans for a living, and the best firm offered us a compiled business plan with complete original research for $25,000. This is a cost that would be passed on to the investors. Rather than spending investor money on a business plan, I made the choice to do it myself and save money. I am not a writer, and I very rarely use Word to write anything. The document has been passed between myself and managers at Havelock nearly a half dozen times making multiple revisions.

Between the revisions by multiple parties, and the fact that I'm not a writer in any way, the probability of having flaws or missed errors is a high probability. Prior to releasing the document to bitcointalk and the issuer portal on HaveLock, I sent it to around 30 investors. Not a single one brought up an issue with the text, so up until this point it hasn't been a issue. I will try and correct it on future revisions.

the following would make me happy:
can keep shares direct for next 12 months, 1 free transfer into exchange during that.
I understand the allure of havelock but especially after the sale to that panama shelf company I would befer to sit back and watch for some more months.