Topic: RentalStarter - A Midwest Real Estate Investment Company - page 41. (Read 120494 times)
Can someone please explain to me how on earth you can get 20-30% rental yield in the united states? According to stats, the average yield is 3-7%. If anyone could get 20-30% yield than everyone on earth would buy houses in the US. I won't believe this until I see a tenant in the house, paying the rent that the OP claims for the expense incurred.
What has this got to do with Bitcoins?
The assets, income, expenses and returns are all USD. This is a USD investment unrelated to the Bitcoin economy.
No shit sherlock!
"IPO" funds were raised by bitcoins seems related to me.
Thats all it has to do with Bitcoins.
Basically there are enough people who will invest in just about anything that says Bitcoin without any proper research, so it's good for the guys that raised the money and by the way I'm not in any way saying they don't have a great business model - they do.
The issue that people haven't realised that what they've done is in effect sell their precious BTC and buy USD and then invested in a USD real-estate fund. The fact that the USD will be then turned into BTC at future rates for payment is just a side-show.
Not quite a sideshow. Anyone can buy in bitcoin (which lowers the barrier of entry for those who are out of the country) plus large investments via bitcoin don't have the same stringent requirements investments in dollars do.
What has this got to do with Bitcoins?
The assets, income, expenses and returns are all USD. This is a USD investment unrelated to the Bitcoin economy.
No shit sherlock!
"IPO" funds were raised by bitcoins seems related to me.
Thats all it has to do with Bitcoins.
Basically there are enough people who will invest in just about anything that says Bitcoin without any proper research, so it's good for the guys that raised the money and by the way I'm not in any way saying they don't have a great business model - they do.
The issue that people haven't realised that what they've done is in effect sell their precious BTC and buy USD and then invested in a USD real-estate fund. The fact that the USD will be then turned into BTC at future rates for payment is just a side-show.
hero member
Activity: 756
Merit: 500
It's all fun and games until somebody loses an eye
Yeah but if BTC/USD increases, it decreases the value of our investment....?
No. The investment is one house (so far). So whatever the btc/usd price does we will still have one house.
By the way, did all the bitcoins get exchanged for USD, or is some of the invested money still bitcoins?
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
If our properties get government subsidy , they are CPI indexed.
Otherwise if not, we are allowed to raise/lower rent based on market rates. There is no rent protection/caps in my market (They exist in the US, but not here).
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
I've never seen annual indexing to anything in any of my rental agreements. It is all based on the market.
I've seen CPI indexation , no regular rental increases and yearly increases of 1%-3% as part of the contract. All depends on the landlord.
Yeah but if BTC/USD increases, it decreases the value of our investment....?
Rentalstarter is tied to USD, if the BTC:USD rate increases, the value of bitcoins goes down. If bitcoins devalue then the rate increases significantly.
My goal was to develop this into a BTC:USD hedge if people are bearish on bitcoin.
hero member
Activity: 756
Merit: 500
It's all fun and games until somebody loses an eye
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
I've never seen annual indexing to anything in any of my rental agreements. It is all based on the market.
So then you're only at the mercy of your landlord?
And he is at the mercy of me moving to a different rental. I sign a lease for a year, then after that year we are free to renegotiate a new price for the next year. My current rental I am going into my third year at the same price. Back about 8 years ago I was in an apartment, they said they were going to raise the rent (I think it was going to be somewhere around 10%), so I looked around and found a different place to live.
I invested in the pump and dump aspect of it.
Time for you to dump then. Or do you need some more pump yet...
I invested in the pump and dump aspect of it.
Yeah but if BTC/USD increases, it decreases the value of our investment....?
What do you mean "OUR" ? Did you invest into this without realizing such a obvious thing? Also what if BTC/USD drops YOUR VALUE INCREASE (ZOMG) !
Not all securities needs to be same and I really love this one because it shows potential how can bitcoin improve and help startups like these.
Yeah but if BTC/USD increases, it decreases the value of our investment....?
What has this got to do with Bitcoins?
The assets, income, expenses and returns are all USD. This is a USD investment unrelated to the Bitcoin economy.
No shit sherlock!
"IPO" funds were raised by bitcoins seems related to me.
What has this got to do with Bitcoins?
The assets, income, expenses and returns are all USD. This is a USD investment unrelated to the Bitcoin economy.
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
I've never seen annual indexing to anything in any of my rental agreements. It is all based on the market.
So then you're only at the mercy of your landlord?
hero member
Activity: 756
Merit: 500
It's all fun and games until somebody loses an eye
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
I've never seen annual indexing to anything in any of my rental agreements. It is all based on the market.
Branny, is annual indexation of the rent to the official CPI also a regular practice in the US?
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
Or do you have a lower / higher freedom in adjusting to the local rental market?
P.S. avoiding 'slum' is a very sane practice, imho
So, I'm interested but curious about legality... is it? If this gets noticed, will it get shut down and all the assets seized?
Wait, so houses in the US have rent yields in excess of 20%? Wtf?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Not enough people want to manage rentals. People typically see them as risky investments, however I've been doing them for 7 years and haven't had much of an issue with tenants. Unlike many local landlords, I don't own slum properties nor do I rent to slum tenants.
US Real estate return is higher than most countries. Granted if you want, you can go to states that have very poor rental performance and get only 5% a year.
Additionally, not every state has strict laws on building/renting like Australia, Canada and the UK do.
Whether anyone wants to admit it or not, to BUILD a house in the UK, Canada, Australia or the like, it costs about $40,000 per 1000 square foot. Any more and you're paying either for luxury or government regulations.
hero member
Activity: 756
Merit: 500
It's all fun and games until somebody loses an eye
Wait, so houses in the US have rent yields in excess of 20%? Wtf?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
What happened is the housing market tanked, so you can buy houses real cheap (if you know what you are looking for and jump on deals as they pop up, and are willing to put in some repair work to make them livable), but people still need to live somewhere and so the rental rate for houses has not changed much. Add into that all the people who lost homes to foreclosure, those people cannot get approved for mortgages now (because they now have crappy credit), so you can get foreclosed houses cheap and there are not as many people buying and they need to rent. It all works together to make a great opportunity for somebody with liquid cash to slap down.
Wait, so houses in the US have rent yields in excess of 20%? Wtf?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
If you buy a crappy house in a sloppy market and pimp it cheaply, you could be able to double or triple you're average rental yield. It's a limited size niche for those with cash and time on their hands.
Wait, so houses in the US have rent yields in excess of 20%? Wtf?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Something doesn't add up here. If houses had rental yields of 20%+, every investor on earth would buy up houses in the US. I did some research and the average US rental yield is 5-9%, which is about the same in Australia. Can someone explain these figures in this thread?
Jump to: