ALBA - Student rental properties in Aberdeen, Scotland.

[JimmyJazz]

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[forensick]

I like real estate projects, could you provide some pics and projections of cash flow f.e. for the 1st year?

[forensick]

Will you name the building Jessica?

LOL

[alphabet]

The city has a population of 220,00

You mean 220,000 I am guessing.

[JimmyJazz]

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[DrGregMulhauser]

It's worth noting that from the perspective of a Bitcoin investor, all investments of this type represent an unhedged short position in Bitcoin relative to the underlying entity, in this case fiat-denominated real estate and the fiat-denominated future revenue stream. Therefore, they incorporate unlimited risk with respect to appreciation in the value of Bitcoin as expressed in units of the underlying entity.

I'm not saying that necessarily makes it a bad investment, only that for investors looking to grow their Bitcoin-denominated assets, they have to be coming at it with a strongly negative view of the future value of Bitcoin versus sterling-denominated real estate and sterling itself. For investors looking to decrease their Bitcoin holdings anyway, it might be great.

There's more to this line of thought in an article called How to Lose Money with a Bitcoin Investment, Part 2: The Unhedged Short.

[forensick]

It's worth noting that from the perspective of a Bitcoin investor, all investments of this type represent an unhedged short position in Bitcoin relative to the underlying entity, in this case fiat-denominated real estate and the fiat-denominated future revenue stream. Therefore, they incorporate unlimited risk with respect to appreciation in the value of Bitcoin as expressed in units of the underlying entity.

I'm not saying that necessarily makes it a bad investment, only that for investors looking to grow their Bitcoin-denominated assets, they have to be coming at it with a strongly negative view of the future value of Bitcoin versus sterling-denominated real estate and sterling itself. For investors looking to decrease their Bitcoin holdings anyway, it might be great.

There's more to this line of thought in an article called How to Lose Money with a Bitcoin Investment, Part 2: The Unhedged Short.

it could be true regarding expected future value of bitcoin vs. fiat... but it could be on the other side of the story also some kind of "bridge" between virtual world and fiat world. There is a chance that companies like that will offer in the future rental real estates for bitcoins... someone needs to start. There is also huge possibility of future higher inflation or possible hyperinflation, so it is very early to say if the bitcoin price will rise linear with depreciation of fiats and possible raise of rents due to usual higher rental fees. There is not so much options for pure bitcoin investments yet... just some exchanges, mining...

[ffssixtynine]

If you're raising money like this in the UK, have you complied with all the lengthy legislation?

[JimmyJazz]

If you're raising money like this in the UK, have you complied with all the lengthy legislation?

I have researched it myself and feel that the venture is possible, however I am hoping to speak to a lawyer who could send me in the right direction.

[Peter Lambert]

If you're raising money like this in the UK, have you complied with all the lengthy legislation?

I have researched it myself and feel that the venture is possible, however I am hoping to speak to a lawyer who could send me in the right direction.

You should speak with the lawyer before asking for money.

[JimmyJazz]

I am not asking for money at this point in time. As stated in the initial post I am writing to see if there is interest from the community in such an investment while also taking on board feedback and criticism. I have talked informally with a lawyer who said the venture is possible, however was unsure of the definite ins and outs. Spending money to see a lawyer when there is no interest for such an investment within the community would just be silly - wouldn't it?

[Peter Lambert]

I am not asking for money at this point in time. As stated in the initial post I am writing to see if there is interest from the community in such an investment while also taking on board feedback and criticism. I have talked informally with a lawyer who said the venture is possible, however was unsure of the definite ins and outs. Spending money to see a lawyer when there is no interest for such an investment within the community would just be silly - wouldn't it?

This is very similar to RentalStarter, listed on BitFunder, they seem to have funded pretty quick. So there is definitely demand for such investments.

[xaviarlol]

Do people even do the math before creating these terrible IPO's?

You say 425 per month income, ~100k per property. Gross yield BEFORE COSTS is 5.1%. I am heavily invested in property, and from my experience, costs = at least half the income. You have insurance, periods of vacancies, damage, bad tennants, water rates, local government costs. This doesn't even include the interest repayments you will have to make if you choose to use some credit, which will completely wipe out every cent of profit.

You are basically offering a -100% and a best case of +5% ROI if everything turns out perfectly. And you are taking a short position on Bitcoin with unlimited risk. Why on earth would anyone do this? Give your money to Tradefortress and you get +25% ROI, far less risk income.

[JimmyJazz]

/

[xaviarlol]

Do people even do the math before creating these terrible IPO's?

You say 425 per month income, ~100k per property. Gross yield BEFORE COSTS is 5.1%. I am heavily invested in property, and from my experience, costs = at least half the income. You have insurance, periods of vacancies, damage, bad tennants, water rates, local government costs. This doesn't even include the interest repayments you will have to make if you choose to use some credit, which will completely wipe out every cent of profit.

You are basically offering a -100% and a best case of +5% ROI if everything turns out perfectly. And you are taking a short position on Bitcoin with unlimited risk. Why on earth would anyone do this? Give your money to Tradefortress and you get +25% ROI, far less risk income.

The 100k I mentioned would be the average market value of a 2 bedroom property. We are however looking to purchase property that is below market value and in need of development. Therefore adding value to the shareholder.

Insurance - Is a cost that will be taken into consideration as previously mentioned
Periods of Vacancy - Unlikely due to the large demand for student accommodation year round.
Damage - Unlikely to be a big issue.
Bad tennants - Again unlikely.
Water rates - In Scotland water rates are paid through council tax which students do not pay.
Local Government costs - Liable to the occupants - who will be students and therefore do not pay.

Renovation? Awesome, even more risk.

My point is even if everything you say happens, you perform perfectly, have the best luck possible and nothing goes wrong, it is still an aweful BTC investment. Risky with very low roi. There are bonds and reputable fixed interest providers giving much better ROI at MUCH lower risk. And any average joe can do that trouble free, and not have to give their money to a strangers with no proven experience or qualifications, who can bail at any time with their money.

This is the third property investment idea that has come on these forums in the last few weeks, and they all have virtually no chance of succeeding and authors who think they have the skills and experience to pull it off. Unfortunately most have never even bought an investment property and it shows when they answer questions about it (see above for a fresh example). Yet for some reason they are overconfident and arrogant enough to think they can take other people's money and invest it.(lose it)

[Peter Lambert]

Do people even do the math before creating these terrible IPO's?

You say 425 per month income, ~100k per property. Gross yield BEFORE COSTS is 5.1%. I am heavily invested in property, and from my experience, costs = at least half the income. You have insurance, periods of vacancies, damage, bad tennants, water rates, local government costs. This doesn't even include the interest repayments you will have to make if you choose to use some credit, which will completely wipe out every cent of profit.

You are basically offering a -100% and a best case of +5% ROI if everything turns out perfectly. And you are taking a short position on Bitcoin with unlimited risk. Why on earth would anyone do this? Give your money to Tradefortress and you get +25% ROI, far less risk income.

Didn't you see where he said that rent was per room? So you have to multiply that income by however many rooms are in the house.

[xaviarlol]

Do people even do the math before creating these terrible IPO's?

You say 425 per month income, ~100k per property. Gross yield BEFORE COSTS is 5.1%. I am heavily invested in property, and from my experience, costs = at least half the income. You have insurance, periods of vacancies, damage, bad tennants, water rates, local government costs. This doesn't even include the interest repayments you will have to make if you choose to use some credit, which will completely wipe out every cent of profit.

You are basically offering a -100% and a best case of +5% ROI if everything turns out perfectly. And you are taking a short position on Bitcoin with unlimited risk. Why on earth would anyone do this? Give your money to Tradefortress and you get +25% ROI, far less risk income.

Didn't you see where he said that rent was per room? So you have to multiply that income by however many rooms are in the house.

I did not... OP please confirm these figures? Even if the rent income is doubled, it's still below 10% roi, but at least that's not as frightfully bad as the other figure.

[xaviarlol]

Do people even do the math before creating these terrible IPO's?

You say 425 per month income, ~100k per property. Gross yield BEFORE COSTS is 5.1%. I am heavily invested in property, and from my experience, costs = at least half the income. You have insurance, periods of vacancies, damage, bad tennants, water rates, local government costs. This doesn't even include the interest repayments you will have to make if you choose to use some credit, which will completely wipe out every cent of profit.

You are basically offering a -100% and a best case of +5% ROI if everything turns out perfectly. And you are taking a short position on Bitcoin with unlimited risk. Why on earth would anyone do this? Give your money to Tradefortress and you get +25% ROI, far less risk income.

Didn't you see where he said that rent was per room? So you have to multiply that income by however many rooms are in the house.

I did not... OP please confirm these figures? Even if the rent income is doubled, it's still below 10% roi, but at least that's not as frightfully bad as the other figure.

Oh, yeah, and that is per month. So you have to multiply by twelve to get the yearly amount (which is what is usually used in ROI calculations, I think). Or you could compare it to the monthly ROI of other investments. AsicMiner gets about 2% per month, BTC-BOND is 0.9% per month.

I mean yearly rent doubled - ie double the ROI.

[Inedible]

This investment also assumes you believe Bitcoin price against the £ is stable or will go down. If it rises against the £ then that 10% profit figure is going to get eroded.

[Peter Lambert]

This investment also assumes you believe Bitcoin price against the £ is stable or will go down. If it rises against the £ then that 10% profit figure is going to get eroded.

No, it is assuming that Bitcoin price against land and rent will be stable or will go down. The pound could hyperinflate, but as long as the rental rate keeps up with the pound rate this investment will not be affected. However, if bitcoins go up against everything then that will affect most bitcoin based investmetns.