All Forum Posts by: Alesandro Breguez

Thanks @Account Closed, what is the typical split structure you are used to?

Let's assume the funding partner brings all capital (downpayment, financing costs, rehab materials) while operations partner the work (rehab including labor, property management etc)

Does anyone have experience with structuring a joint venture or partnership in the Poconos area?

Context: I am an investor with a portfolio of STRs in the Poconos but I can’t run the daily management of rehabs and property management. I wonder what your experience is with partnerships where one party brings the capital to the table and the other party the work/time. Looking forward to hearing about your experience, pros and cons.

Does anyone have experience with structuring a joint venture or partnership in the Scranton/WB area?

Context: I am an investor who struggles with the day-to-day management of rehabs and property management. I wonder what your experience is with partnerships where one party brings the capital to the table and the other party the work/time. Looking forward to hearing about your experience, pros and cons.

@Nitin Mathew, I have a portfolio of units in the Poconos and I have seen different dynamics lately. In 2020-2021 any average STR owner made money, now the competition is much tighter, and properties professionally managed with outstanding amenities are winning but based on my network the average STR owner is making a very low margin or maybe breaking even for a lot of work and headache. I would carefully conduct a due diligence prior to jumping in

@Hannah Rodriguez, some local community banks offer 100% financing with a cross-collateralized loan. 

If you have a portfolio with some equity, you can take loans and collateralize the portfolio. Instead of securing the loan with just one property, the lender combines the value of multiple properties to mitigate their risk. If the borrower defaults on the loan, the lender has the right to foreclose on any or all of the properties used as collateral. 

Cross-collateralization can provide borrowers with access to larger loan amounts or more favorable terms but also carries the risk of losing multiple properties in the event of default.

Does anyone have experience with structuring a joint venture or partnership in Scranton/WB area?

Context:I am an accredited investor who struggles with the day-to-day management of rehabs and property management. I wonder what your experience is with partnerships where one party brings the capital to the table and the other party the work/time. Looking forward to hearing your experience, pros and cons.

Hi All, I'm also looking to connect with investors in the Scranton area. I have a few duplexes in the area as well.

Do a careful market research. Basic AirDNA data shows that the supply of listing almost doubled for some areas in the Poconos vs. 2 years ago + houses are 20-30% more expensive. Its becoming a crowded trade..

@Jennifer Soltis @Chase Lowry, Regarding the ''manage yourself'' I would be careful since you are trading your time for the higher returns.

Managing yourself would save you approx. 18k in PM fees, estimating 5h or work per week (dont estimate the headache of STRs) over 50 weeks a year = 250 hours = $72 per hour.

It would depend of your situation, if you are a highly paid professional who makes more than $70/h you might want to reconsider. If you are happy with this hourly rate, then Chase might have a point and it would be worth it to self manage...

@Maria Ferre, we have a portfolio of STR properties in the Poconos. My recommendation is to consider multiple criteria in your decision:

1. Financials: Mostly COC return (NOI/initial investment)

2. Local presence: location that you can access directly and self manage - unless you want to leave 20-25% of the bookings for property managers that might (or not) be reliable

3. Regulatory landscape: especially HOAs and Townships - these can be a deal breaker and shut your business

4. Potential STR growth: AirDNA might help with some stats and figures

This is NOT a passive investment, it requires sometimes intensive management work