All Forum Posts by: Alicia Kuluris

I do have a heloc on one of our properties but I am more looking for thoughts whether to partner or not based on all the work that has already been done by us and also by the property no longer fitting our strategy. I also saw the same thing you saw about the appreciation in Big Bear. It has appreciated since we bought it but it's not enough at the moment. Just typing this up made me think maybe we can sell them the entire business. Have you heard of people doing that? I have only bought properties and never sold or partnered.

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Quote from @Braedon Page:

Quote from @Michael Baum:

If you don't want to deal with guests in what is a customer service oriented business, then that means it is time to get out.

Absolutely incredible how many people seem to get blindsided by this when going into STR's.

We weren't blindsided by STR's being a service oriented business. That is one of the reasons we got in it. What changed was we had a baby and my priorities have now changed. Time is beyond precious now and if we want to launch we need to use our limited time wisely and STR no longer fits the live we want to lead.

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Quote from @Dan Thomas:

@Alicia Kuluris

I know I'll get slammed for even mentioning this but what about an arbitrage arrangement? It is an str already so the points about excess wear and tear are irrelevant. You maintain the future equity and let him take the frustration of dealing with guests. He can use it as much or little as he wants and it wont cause friction. You mention he wants to use it....that can create friction in a partnership.

From a partnership arrangement I dont see the benefit here. Sure you will get some cash but you give up equity. Equity is the whole reason you invest in CA. You have already done the hard part.

Thanks for all the feedback. You definitely gave me somethings to think about.

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Quote from @Andrew Steffens:

I have partners on a few of my properties, and generally it has worked well for me. That said I have some true nightmares. This deal sounds like it could go 1 of 100 ways, so I think a meeting of the minds could hash out something that works for all parties. Whatever you do, if you do partner, get a solid operating agreement signed that lays everything out. Good luck!

Thanks for all the feedback on the operating agreement. I will definitely have one created if we move forward.

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Quote from @Mike Grudzien:

I agree with @John Underwood
Pencil out everything (costs, equity, etc.) to create a truly equal partner.
When they and you agree on this amount and they pay their part, then you have an equal partner.
Of course, in this process, definitely use an attorney.
Mike

Thanks for the feedback. It's greatly appreciated.

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Quote from @John Underwood:

They can contribute half the purchase price, half any equity, half any money you've put into the property etc.

Then have an ironclad partner ship agreement. I'd consult with an attorney on this.

Instead of a partnership why not just borry money? Could be an equity line against this or another property.

Then you would capture all the future income and equity without having to share it.

Thanks for all the feedback. It's greatly appreciated. This home just doesn't have enough equity for a Heloc at the moment and sharing the future equity is one of the things that has us going back and forth on our decision.

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Quote from @Michael Baum:

Hey @Alicia Kuluris. So looking at the history of Big Bear, appreciation is there, but is spotty at best. I wouldn't count on serious appreciation over the next 5 years or so. Hard to tell of course.

It sounds like you really want to get rid of it. I don't get number 2 of the gets. You have already remodeled the place so I am not sure why that is there.

I kinda agree with @John Underwood about looking at getting a HELOC or something like that if you can manage it.

The 2 things that jump out to me are the risk tolerance and dealing with the guests.

Those 2 alone tell me you just need to sell it an get out. If you don't want to deal with guests in what is a customer service oriented business, then that means it is time to get out.

Snow is a fact of life for those who own higher elevation, rural properties. What makes a "bad snow year"? No plowing thus no access? You can't get your property plowed out for access? Power out? Just wondering.

Thank you for all the feedback. It's greatly appreciated. I would like to sell it or get a Heloc but there isn't enough equity right now so this is why we are considering a partnership.

Bad season for us means shorter season or less people coming up during the season because of the lack of snow as most of our money is made in this season. Two or three years ago we had a storm that shut the entire season down and caused significant damage to people's property and streets.

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Hello Everyone,

Greatly appreciate any thoughts on the matter.

We have a property in Big Bear, CA and it is making a small profit this year, but it is strictly an STR. We have decided to focus on Midterm rentals and have talked about selling it. We debate selling it all the time but we know homes in CA usually always increase in value and it is just a waiting game and we can't sell it right now and make a profit yet.

We have a friend looking to buy a mountain home to enjoy but also Airbnb it. They love our house and we recently talked about partnering somehow on this property, if possible. We have already done all the work from remodeling, furnishing to all the technical/software stuff. It is completely up and running.

Our pain points:

1. Equity- The house doesn’t have enough equity to regain the money we put into it if we sell it right now.
2. Cash- We could use cash right now. It is nothing urgent so we are not pressed but we could use it to have more cushion in savings.
3. Risk Tolerance- We are no longer okay with the risk of having a bad snow season. We have savings for it but we don’t want to use up any more cash for that home.
4. Guest- I no longer want to deal with guest regularly.

What they could bring to the table

1. Cash – We wouldn’t even know how much to charge but cash is in the talks.
2. Experience- he has connections and experience remodeling homes and can remodel the property and yard, if needed.
3. Cover half the mortgage/utilities/insurance/taxes etc
4. If this works well we could partner up in other deals

Is this beneficial for us to partner although the house is running and making a profit?

What if they want equity in the home, how much would you offer?

How do you charge for all the money and sweat equity you have already invested?

Is there anything else to consider?

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It depends. I have 3 properties and I learned everything from podcast, you tube and conferences. For that rate I would look at he Bigger Pockets Rookie summit. I went to that a few years ago when I decided I wanted to go fully Into REI. I have yet to pay for mentorship and I am doing very well. I would pay for masterminds or accountability pods at some point but I would rather save all that money for the downpayment. If you don't have time or don't want to spend hours learning on podcast or YouTube then it may be a good fit for you.

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@Marc Rice Thanks for the feedback.

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All Forum Posts by: Alicia Kuluris

Alicia Kuluris has started 2 posts and replied 23 times.

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Partnership After All the Work is Done and Home is Making a profit

Post: Paid Mentor Worth It?

Post: Properties selling for around $100,000 or under