Listed my STR. Overwhelmed with financial requests

Listed my STR. Overwhelmed with financial requests

Realtor · St Augustine, FL · Member since 2023 · 111 posts · 87 votes

Since posting my STR for sale on a STR Facebook page, I have been bombarded with requests for financials.

The financials are not bad: Asking price is $485K. The property produced $48K gross over the past year. I include the operating costs and a month by month gross/net, NOI, cap rate etc.

I'm just wondering why all the financial requests. I send them, and then get crickets.  

Will these people work as hard as I did on the property to get bookings?  

Do they think this will just happen on auto pilot and they can attain the same as me?

They don't ask about context of the bookings and the types of bookings I took (including one mid term tenant).

They don't ask about the POTENTIAL and where I see the opportunities? Or questions about the market, visitor stats, comp set?

Nobody is asking for a showing either.  It's like the real estate (cute bungalow) and opportunity for growth doesn't matter.

Has anyone else experienced this?  Why is the decision based solely on what the past owner did or didn't do?   As a realtor, I review these financials all the time and I find them more misleading than helpful.  There is always CONTEXT.   Past financials is only one part of the picture.  Don't we want to seek growth and create further opportunities for revenue as investors?  Even if it was a low performer (which it isn't), isn't it part of the game to reimagine, see the potential and make it a success?  That surely would be the upside.  

I would love some perspective here.  Thank you!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
1y

LOL Facebook = million tire kickers with no money.. just curious about your backend financials I would personally never send any info to anyone who contacted me on facebook.. but i am old school.

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  • Boise · Member since 2023 · 39 posts · 21 votes
    1y

    Valid point Mindy, 

    And no the numbers shouldn't be the same, but thats what the buyer wants to know. 

    What were the actual performance numbers, and what might have been the cost of management if it was professionally managed. A self-managed buyer might do worse on revenue but they also won't have the management fees so they might earn more or about the same. 

    I believe at the end of the day, taking the gross revenue number and breaking down the costs associate are what matters. 


    The main question a buyer has is this - "how much of my mortgage will this cover"

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