Seeking Investor Partnership for Short Term Rental Expansion

[Jessica Andrews]

My partner and I have created a design/build team for short term rentals. At this point we own two investment properties that operate as short term rentals in Savannah, GA and Pocono, PA. Both of these properties are doing exceptionally well and have given us a great, starter portfolio. 

We bought these properties on our own but we are not interested in expanding and creating 50/50 partnerships with investors that are interested in a coc return between 20-30%. I want to get more information about how to structure these deals, create a straightforward presentation/portfolio to present to investors and find investors outside of my family. Any advice?

[Marshall Leipprandt]

@Jessica Andrews I believe you mean to say "we *are* interested" in your second paragraph :)

I 100% recommend you make an investor presentation. Don't just talk about the deal you are looking at, but have some slides talking about the systems you use for your current properties, how you continue to manage them, and a financials slide that talks about the actuals dating back as long as you've had them. After you've detailed your experience, then layout the plan for any new deals that you would partner on.

Here, have slides discussing the local market, short-term rental average nightly rates, historical property appreciation rates, expected gross revenue, etc. Also, be sure to be clear on what will be required of any potential partner. Discuss the partnership plan in detail and how the investor(s) would get their return. 

Bottomline is that you want to hit on three main points in your pitch: 

1) Your experience as a seasoned short-term rental property investor who understands how to scale using efficient systems

2) Why the new market makes sense from an economic and financial perspective

3) Why an investment as a partner would yield them a steady return of X% and what to expect over the course of their investment