Topic: RentalStarter - A Midwest Real Estate Investment Company - page 48. (Read 120426 times)
What trading exchange will the shares be for sale on? Also .1 BTC is ~$13 not $5.
I think this is a great idea and could be a model.
From my understanding, the benefit of using a virtual exchange was the ability not to have such a document prepared (We looked at Canadian shelf corps, ect prior to considering the 'virtual' method) due to the extreme cost of such services. I am not aware that any of the businesses operating on the exchanges we're looking at have had such documents prepared.
Edit - I'm looking more into one and it doesn't seem as high as what I was quoted last year for document prep in Canada (I was quoted between $5k-$25k).
I'll see if it's possible to get done easily.
Edit - I'm looking more into one and it doesn't seem as high as what I was quoted last year for document prep in Canada (I was quoted between $5k-$25k).
I'll see if it's possible to get done easily.
Branny, before you raise money (USD or BTC) I would suggest you speak to a competent securities law attorney in your jurisdiction.
A PPM is a private placement memorandum that meets one of the disclosure requirements for a Regulation D private placement under the Securities Act. Publicly soliciting investment in a business without a private placement memorandum will likely expose you to liability under the Act.
A PPM is a private placement memorandum that meets one of the disclosure requirements for a Regulation D private placement under the Securities Act. Publicly soliciting investment in a business without a private placement memorandum will likely expose you to liability under the Act.
Branny, I think this is a great idea, but aren't you just publicly soliciting equity investment in your company? You might want to consider a PPM before you do something like this.
I see real estate as a good investment in traditional markets, but you'll find that a BTC-denominated asset that yields USD revenue will effectively be a USD asset and investors will be massively exposed to USD exchange rate, meaning that an increase in BTC price reduces the BTC value of the shares.
This can be good or bad, depending on the exchange rate. Perhaps a BTC-denominated bond might be a safer option for investors as it reduces some of the exchange rate exposure.
However, what about offering this to renters in BTC? You could reduce the exposure somewhat by offering parts of the rent in BTC only (10%-50% payable by BTC, with a quarterly adjustment for exchange rate, for example). This would be good for Bitcoin, split the risk of exchange rate exposure somewhat, and be good for marketing.
It is an interesting proposition, however, so I encourage you to move forward. Please provide estimated financial projections at the very least, as well as more background on the people involved (asset managers, property managers, partners, and so on).
.b
This can be good or bad, depending on the exchange rate. Perhaps a BTC-denominated bond might be a safer option for investors as it reduces some of the exchange rate exposure.
However, what about offering this to renters in BTC? You could reduce the exposure somewhat by offering parts of the rent in BTC only (10%-50% payable by BTC, with a quarterly adjustment for exchange rate, for example). This would be good for Bitcoin, split the risk of exchange rate exposure somewhat, and be good for marketing.
It is an interesting proposition, however, so I encourage you to move forward. Please provide estimated financial projections at the very least, as well as more background on the people involved (asset managers, property managers, partners, and so on).
.b
One reason fiat denominated assets are useful is if you wish to hold some of your investment in fiat and some in BTC. This way the fiat portion of your portfolio doesn't just sit there in cash. So as long as the fundamentals are sound, and the risk is acceptable, I could see it being a very attractive alternative to just holding USD. Less so for the BTC portion of your portfolio, assuming you are bullish on BTC. I probably won't invest, because I have other strategies in place for the fiat portion of my portfolio, but I can see it performing quite well, and I can see it being a welcome addition/alternative to some of the other fiat denominated assets.
Best of luck to you!
Best of luck to you!
Have you considered what will happen to your share value in BTCitcoin with a constant NAV or a NAV rising slower than the rate of increase in USD exchange rate?
Most investors want a return that increases their holdings of BTCitcoin. Just increasing in USD often isn't enough.
Most investors want a return that increases their holdings of BTCitcoin. Just increasing in USD often isn't enough.
Did you consider the high volatility of BTC/USD? How will you protect yourself again fluctuations, or will the shares be denominated in USD?
This is the fourth, and final revision of our BTCtalk thread.
As of Q3 2016, it was decided among our advisory board to both no longer seek listing on any public or semi public exchange, and to no longer seek outside equity funding. This is partially due to the low liquidity we have been seeing on various bitcoin exchanges, and also a change in the way we wish our company to operate.
Starting out, it was our expectation for rapid growth by leveraging the bitcoin funds we had received with traditional bank loans. Over the past 3 years we have made multiple attempts at this and fallen short of both exterior and interior funding goals between both equity and bank leverage. As of today, we have only achieved a 1:1.25 rate of leverage. Our original goal was to reach 1:3 within the first 2 years of operation, thus slowing down rental acquisitions considerably.
Although slow, the company continues to grow due to new partnerships that I have worked out with investors outside of bitcoin and internet exchanges.
Because of these dealings, we as a company have decided that it no longer serves our investors a useful purpose to continue on as a company offering 'virtual shares', and have made the decision to convert all investment and structure to a traditional company. Part of this process will involve buying out all low-unit shareholders, and converting the remaining to direct stakeholders in our US registered entity. We believe that this strategy will help the company grow as it should, and to hit our longer term goals, which up till now have been very slow to achieve.
If you are a RentalStarter investor, please check your email regularly, as we have sent out multiple rounds of emails to all our investors, and received very minimal response. Additionally you can access the real-time RS slack at rentalstarter.slack.com by using your registered shareholder email address. If you have not done this, you may have to go through a password recovery due to inactivity and not accessing your account since we set it up.
As of Q3 2016, it was decided among our advisory board to both no longer seek listing on any public or semi public exchange, and to no longer seek outside equity funding. This is partially due to the low liquidity we have been seeing on various bitcoin exchanges, and also a change in the way we wish our company to operate.
Starting out, it was our expectation for rapid growth by leveraging the bitcoin funds we had received with traditional bank loans. Over the past 3 years we have made multiple attempts at this and fallen short of both exterior and interior funding goals between both equity and bank leverage. As of today, we have only achieved a 1:1.25 rate of leverage. Our original goal was to reach 1:3 within the first 2 years of operation, thus slowing down rental acquisitions considerably.
Although slow, the company continues to grow due to new partnerships that I have worked out with investors outside of bitcoin and internet exchanges.
Because of these dealings, we as a company have decided that it no longer serves our investors a useful purpose to continue on as a company offering 'virtual shares', and have made the decision to convert all investment and structure to a traditional company. Part of this process will involve buying out all low-unit shareholders, and converting the remaining to direct stakeholders in our US registered entity. We believe that this strategy will help the company grow as it should, and to hit our longer term goals, which up till now have been very slow to achieve.
If you are a RentalStarter investor, please check your email regularly, as we have sent out multiple rounds of emails to all our investors, and received very minimal response. Additionally you can access the real-time RS slack at rentalstarter.slack.com by using your registered shareholder email address. If you have not done this, you may have to go through a password recovery due to inactivity and not accessing your account since we set it up.
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