Topic: RentalStarter - A Midwest Real Estate Investment Company - page 46. (Read 120179 times)

Bought a few shares, diversification is nice.

If you guys need an escrow, see my sig.. btc-asia.com
good luck with the sale.

My personal goal with this is 500 rental units at a clear $250 in cashflow to investors on each property ($125k/mo) within 5 years.

At that time we could sell the company off to a larger management firm and collect mid 8 figures from my estimation.

Dilution sucks.

Can you please share your vision? Are you planning to grow this into a big real-estate company or keep it small?

Thanks!

My plan was to do a USD denominated bond with a short number of issues tied to USD per series. My brother has done it on lightcoinglobal (BuyAHash) with few problems, his offering has done well and most investors seem to be happy, so I figure that's going to be the best option.

Otherwise - 100,000 shares is it. There will be no more issued at any point unless shareholders approve a split or some other thing. I want to avoid dilution as much as possible.

I'm willing to hear any ideas available concerning dissolution, the issue being I Can't work out things till everything is perfect.

I was wanting to go about a month ago on this asset. Since that time I Have passed up on a 3br 1ba home for $12,900 and a 2br duplex for $40,000 that needed very little work. Of course this is no one's fault, but it gives a bit of urgency to getting the offering out there, as imperfect as it may be.

I still have concerns over the dissolution. Frustratingly I cannot come up with an alternative way that does not still have exposure to abuse. Anybody have any good ideas?

As an aside, if you plan on issuing debt later on as a means to avoid the dilution problem I mentioned, you need to have a hard USD peg. There is no way you can issue debt with BTC FX exposure when your assets and cashflow is denominated in USD.

Yep, very excited, actually up to around 20k shares ($20k) which is right at half of the threshold.

I would be interested in purchasing shares at IPO price outside of Bitfunder. OP, could you sell shared privately and hold them in escrow?

Awesome, it seems like 15k shares (so $15k) have been sold, so you're more than a third of the way there! Can't wait

I've been going back and forth changing descriptions between Bitcointalk, Bitfunder and the website, i'll get all the shares in sync shortly. Ukto/UKyo suggested I issue the majority of shares first.

I need at least $40,000/400btc to start buying a properties. Once I start this process I'll post on here. Anyone who holds the asset will get access to the backend of rentalstarter.com to get the video blog updates that will have all the gory details of the properties we're looking at.

I expect dividends in about a month and a half.

And other contradicting information is that you say on your webpage "We will be issuing a total of 200,000 shares with a approximate value of $1.25/ea (Or .01btc) –  (Total of $250,000 of investment) in blocks of 10,000 shares per generation."

In the description on BitFunder it says your first round is 50,000 shares, but in details page there are 70,000 issued shares. So you decided to sell 70,000 shares in the first round? And the second round will be 20,000 shares?

Also, what is the timeframe after you collect those $70,000? When will you buy property? How long after that to see dividends?

When we first were going to issue shares, the price was .01 @ $125 per BTC.

It's fluctuating between $95-$105 over the past few days , so I decided to issue at .011 to get a little closer to the $125k goal on 100k shares issued.


So far, I only have enough for half a day as Charlie Sheen.

I'll say extra 10K sounds reasonable for the champagne, coke and bitches.

Never the less, I'll drop a BTC on this. I like the concept.

Why did the price per share ended up being 0.011 instead of 0.01?

Very interesting idea Branny. Definitely one to watch.

BF just approved our listing on BitFunder. A few items were changed but otherwise everything looks good. Please review terms as i haven't updated them on this thread (yet) but will do so shortly, or otherwise start a new thread here on bitcointalk.

#1 - On the management sub-page it states it  can't be beyond normal rates locally. I'm not sure the best way to define this outside of procuring rehab prices from multiple contractors then averaging. That would take a good deal of time to do especially for small projects.

#2 - Changed the term

#3 - I've been trying to figure a good way to address this. One option i thought of was to list the company on BF as an absolute max of 100,000 shares with no second or 3rd generations. If additional funding is needed I then would list a similar asset on BTCT as a bond only (No equity rights) and use that as hard money while we obtain traditional financing. This would increase share value while avoiding any dilution with the core company.

#4 -I could do historical average but then it would be pretty easy to manipulate too.

You're right about direct ownership, it just won't work. Liquidation will be the only option.

Yes, may consider BTCT down the road.

Gone through the document again. A couple of points:

1) I am glad you have included disclosure re: management partaking in repairs and rehab, although I think you still need more clarity beyond merely "We promise not to charge too much".

2) It appears that your 10% management fee comes off the top. Therefore I suggest you rephrase your definition of "net income" to include it being post management fee expense.

3)There is a good chance that the FMV per share could very well change from block #1 to #2 to #3, etc. I think you need to flesh out how exactly your secondary offerings are going to be priced. I could imagine a scenario, for example, in which you issues block#1 then over the course of 2 months the shares drift downward, at which point you issue block #2 at the suppressed levels and dilute the hell out of the existing shareholders.

4) Your "Dissolution" section is a bit weak. First, I think you should drop this buyback @110 nonsense. It is way to easy for management to abuse such a clause especially if it is not weighted or a historical average. We are not talking about a bond here. Second, it is not feasible for shares to be converted into a direct ownership stake in the RE. For a big chunk of your investors located outside of the US, it is not even legal.

I have more comments, but this is enough for now.