Quick update/outlook on the company since we've wrapped up the last round of funding.
The 2nd HL round of funding has completed with a total of 23,100 shares sold @ .0075btc/ea or ~164.59btc in realized proceeds.
We are still negotiating on the property on Walnut street. It would be a good fit for our portfolio and generally quick rehab (Mostly limited to flooring & painting work). Total rehab + purchase would be under $41k with an expected ARV of $75k + $750/mo in income.
Financially we're in great shape with good BTC reserves, cash reserves and of course tons of equity in our properties since nothing is leveraged at this point.
Right now we have two major goals for the next 3 month period :
#1 - Flip a house
#2 - Get leveraged
The reason for this process is that by flipping just 1 house, we insure a fantastic balance sheet to show to the bank (And investors) which then will seal the deal on #2 coming to fruition. As stated, the purpose of subsequent funding rounds has been to get to the point we have enough cashflow to approach a lending partner to help us leverage. Our book value is around $475k which at 70% LTV would allow up to $336k worth of funding. Of course, funding this amount will severely eat into free monthly cashflow, but would allow us to buy a nearly identical portfolio of further investments. If this took place, we should expect roughly $10,000 of FREE net cashflow monthly from all properties (Including properties we will be buying with our current cash/btc reserves).
Obtaining leverage is crucial to rapidly growing the business, but not critical to our well being. We have ample cashflow and reserves to weather most storms that could become problems in the foreseeable future. Flipping or developing several properties a year would help boost up our bottom lines which the banks tend to look at. Just 4 flips per year would grow our balance sheet up to 300% of where it is expected to be at complete occupancy.
Our 6 month goal right now looks to be developing a few properties. By this I mean acquiring building lots, building a spec home or two then either flipping it or renting it out. I have had several valuable talks with developers and working on a pricing strategy that works for our business model. The reason that this could be advantageous over utilizing our current structure is that it accesses a workforce outside of our own and allows us to continue to work on our projects. By outsourcing we free up management & workloads by a great deal.
If you have any questions or comments please let me know.
Congrats on your IPO looking forward to house developments
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but I agree she shouldn't have sold all her coins. Even 10% of them could recoup her original losses if things go well.
