RentalStarter - A Midwest Real Estate Investment Company

[Branny]

I realized this morning I never came up with the verbiage. I'll work on this today as I want to add a few other clauses in the contract to make it healthier.

I'll update first page & HL contract when I get this done.

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[Branny]

Got yet another call asking us to please buy the apartment complex on Main street. We don't have quite the capital to swing it at this second but are pretty close, might buy it from round #2.

[tempestb]

Is it worth it to throw a low ball offer for it and see if they take it?

[Branny]

Is it worth it to throw a low ball offer for it and see if they take it?

They've already indicated to me that they're ok with it.

Even with a lowball offer, we don't have enough cash onhand to do it, we'll have to make the offer right after the start of the 2nd round.

Also, Union has been rented out @ $350/mo.

Additionally tomorrow I'll be releasing on the upgraded/revised contract covering the dissolution/liquidation of the company in the event of default and lots of BIG news about what's on the platter for next month.

[Branny]

Verbiage additions :


Default

The business will be considered to be in default after 3 consecutive dividend periods (Assuming monthly div payments) are missed OR a total of 6 dividend periods are missed over a 9 month consecutive period.

Should default occur, liquidation of the company's assets (The property) shall be required. The shareholders may either choose to appoint an agent in charge of liquidation, or shall mandate the asset issuer to liquidate all assets. All net proceeds shall be dispersed to the shareholders with no regard for the previous equity split. Should the entire USD amount of investments be recouped by shareholders, issuer may be eligible to receive a maximum of 5% of net equity value AFTER all original investment is paid back to shareholders. The remaining equity value shall be passed on to shareholders on a per-share basis.

Example :

3/25/2014 Total utilized investment (Approx) - $300,000
Liquidation value of properties (Less 15% equity loss due to distressed sale, 6% commissions to selling brokers, 3% Tax & title fees) - $361,000

Total paid to investors - $357,950
Total paid to issuer - $18,050


The additional verbiage to be added to the contract (To clear up lump-sum, one-time dividend disbursements).

All one-time dividend payments to share holders shall be 40% of net income of business. A one time income shall be any non-rent or income from notes issued by RentalStarter. Such incomes would be proceeds from the sale of flips, land contract fees, rent-to-own fees or other *special* incomes.

This clears up the profit splits on all large income streams that aren't derived from rent. As it stands now the shareholders would get only 30% from such ventures, in this event it's increased to 40% with no factors for time/seasoning.

[Branny]

RentalStarter is proud to announce the acquisition of CREI (CryptoREI).

After deliberation, proposal reviews, the management of RentalStarter has felt that aquiring CREI was the right decision for the company. This acquisition will help us diversify the RentalStarter portfolio significantly by adding North Carolina to our portfolio of locations. We feel that the management team in place for CREI is solid and will produce solid returns for our current and future investors.

To fund this acquisition, and the purchase of more properties out of our Ohio location, we will be starting the second round of funding on Monday, March the 31st. We will be offering shares at .0075 per share. This price is to reflect the drop in USD:BTC and will further solidify investment from early adopters. We are very excited about the future for RS and believe we will continue to produce solid gains for our investors.

[mutex]

Link to CryptoREI's thread.

Haven't yet read the thread and business plan in full, but I don't see much info on the owner, nor on his experience in the field. And the whole proposal looks hastily and sloppily put together.

[Chris_Sabian]

Link to CryptoREI's thread.

Haven't yet read the thread and business plan in full, but I don't see much info on the owner, nor on his experience in the field. And the whole proposal looks hastily and sloppily put together.

I would tend to agree.

Their website is terrible: http://encinvesmentproperty.com

[VJain]

Great to see of an acquisition and things expanding. But what does it mean for RentalStarter?

Will the management be combined? Will funds be shared? Is it a full-on takeover/buyout or a merger?

[CryptoREI]

I am sorry the info is not up to date been working, my website is not that great but it really does not get used. So no point in sinking money in a site that does not get used often.

I will tell you a little about myself
Been Working with Real Estate investors since 2005, opening my first business painting and fixing rentals for Coldwell Banker. I worked with one investor that had over 75 rentals between him and his father learning the tips and tricks of producing cash flow properties.
After the economy tanked I started working a sales job, while still dabbling in real estate doing a couple of whole sale deals and mostly bird dogging for other investors.
The last 2 years I have working with a investor that lived in Maryland, due to his job "he is a FBI agent" he could not oversee rehabs, so I took over the role of project manger. He retired and is now doign it himself, that is why I stopped working for him.
I have been through the NC Real estate course, and passed it with out having to retake it. "75% of my class had failed it at least 1 time before" Have had my credit and background check cleared by the state just waiting to take the State exam should be this summer sometime.



Some things I bring to the table
Real Estate Investing experience and knowledge in the area's of
Wholesaling
Subject to
Staying on budget
ARV targeting
Distressed property finding
Absent owner tracking
Notice of Default searches
Project management
And of course why I am here Creative Real Estate Financing

The last property I wholesaled to the investor then manged the rehab, pulled 5k on the whole sale the was paid to manage the project.
Paid 74,500 + 5000 dollar whole salefee, we put 15,375 into renovations, we also gave the home buyers a rebel home warranty and a playground. House sold for 124,000
The investor cleared over 30k on this property.
http://www.zillow.com/homedetails/208-Spring-Dr-Jacksonville-NC-28540/51551785_zpid/

[Branny]

Link to CryptoREI's thread.

Haven't yet read the thread and business plan in full, but I don't see much info on the owner, nor on his experience in the field. And the whole proposal looks hastily and sloppily put together.

I understand, however actually talking to the person originating the fund I feel much more comfortable providing seed capital.

It's always a plus too that he's not far enough I couldn't drive down and break some legs should things go south (Joke).

[Branny]

Great to see of an acquisition and things expanding. But what does it mean for RentalStarter?

Will the management be combined? Will funds be shared? Is it a full-on takeover/buyout or a merger?

It works as an acquisition, CREI will maintain their branch in NC and we maintain ours here in Ohio. We provide some startup/seed capital, of which buys us a very sizable equity share in his business.


Additionally, myself and Benny from Buy-A-Hash will be meting CREI in person within the next week to make sure everything is in place for the project.

[Branny]

Trying to re-vamp the rentalstarter.com site with projects/photos.

[Branny]

End of March financial performance PDF file is now available.

https://dl.dropboxusercontent.com/u/9427554/EndOfMarchFinancial%20release.pdf

[thehun]

Good work! There's only one thing I don't like very much: having so many reserves in BTC (as I believe they must have lost a lot from their original value). Is there a reason you didn't convert them to fiat right away?

[Branny]

Good work! There's only one thing I don't like very much: having so many reserves in BTC (as I believe they must have lost a lot from their original value). Is there a reason you didn't convert them to fiat right away?

We have to justify releases with havelock to get them, we get them released and converted to fiat when we go into contract on a next property (usually).

[andyfletcher]

End of March financial performance PDF file is now available.

https://dl.dropboxusercontent.com/u/9427554/EndOfMarchFinancial%20release.pdf

This report makes very interesting reading.  The current price of RentallStarter at 0.0075btc is slightly less than the value of the assets  (Property, Cash and Btc). This means if Brandon cashed in all the assets the holders of the shares would more or less get all their money back.

I can't think of any other issue on Havelock which could do that. ASIC mining equipment very rapidly depreciates in value but houses (real bricks and mortar) will generally increase in value in time. The planned acquisition of an entire apartment block and most of CryptoREI will significantly improve "shareholder value".

What I don't understand is why the share issue hasn't been immediately fully subscribed. It is probably the most secure offering on the entire exchange, guess property isn't as sexy as bitcoin mining.

Full disclosure: I've got about 11000 RS shares and am really pleased with the way RS is performing. I'd buy more if I could.

Andy

[tempestb]

Risk...

  Shareholders make up 30% of the company and after the first year get 30% of the net profits.  That's not a huge return being that the company is very small right now.  It's a long play, and the people who invest in Branny now may make out well in the future.  (Assuming Branny continues to do his best for the company and the shareholders and not turn into someone who abandons the project like so many others have.)  Though one has to worry about legal encroachment with these things.  (With everything Bitcoin related)

Also, I don't think Branny keeping funds in Bitcoin is a mistake.  Sure, the price is collapsing but if it rose the argument would go the other way.  Why weren't the funds kept in Bitcoin?  Realistically, we should be behind Bitcoin and be assured that its value will continue to rise.  Its value will rise again, it's just a matter of getting over this China Bank policy rumor fiasco.  Too many speculators laying in wait for the bubble to grow again, but not wanting to be in the crash.  I think we're near a bottom unless the PBOC announces stricter controls.  Then the market will react poorly, however it won't be able to get much lower and then start a gradual rise.  The rest of the world continues using it, demand will continue to grow.

I invest in RENT and continue to buy shares.  I intend to hold them as long as possible. 

[Branny]

Scioto's agent called and they're ready to close. Surprised they're closing so fast.

Likely will close by end of week.

[NotoriousBIT]

How long will the IPO be open?  Until all shares are sold?