All Forum Posts by: Autumn Cain

I love Inhabit Media!!! He does all my airbnb and RE photography and travels! 

I think this is such a great question to discuss as using VA's is a huge part of the ever evolving STR industry. I personally work with a wonderful team of highly efficient VA's, both as an ops manager for a STR PM company and a PA agent I utilize VA's for PM ops as well as transaction and research assistance as a realtor. Here are my pros and cons!

Pros: 

1. An obvious one : cost. As a part time RE agent I am able to easily afford a base rate for a personal assistance with tasks like research, transaction coordination etc. and offer commission bonuses for closed sales to have someone on standby and be extra motivated for my closing to take place. This frees up my time from more time consuming minor tasks, and are tasks I can easily create an SOP for. 

2. Work Ethic- the VA's I work with are exceptionally motivated and time efficient in their tasks. I can trust them to do their work as expected in a timely manor as they are more wary of the ability to find a good, consistent, USD payment based job.

3. Hours: As an ops manager for a Pm company having 24/7 support is a must, and having Va's in opposite time zones are ideal as they can work during their daytime hours which would be a graveyard shift for a US based employee. 

Cons:

1. As mentioned here, some cons involve comprehension of English as far as guest interactions and terms.

I think a con is useless without some proposed solutions so mine are: have your SOPs organized, specific, and ready! They will be your VA's bible when language nuances are a blocker.

Secondly, PM-wise, we escalate any complaints immediately to a US based area manager to formulate a positive response. 

2. On call communications: I hate to say it, but guests more often than not have a negative view of their experience when they get met with outsourced callers. It is unfortunate but based in fact.

My bandaid is again Us based area manager escalation.

I agree with the sentiment that many VA tasks can be automated, but I think that when it comes to communication that having a human aspect is invaluable, where some fiscal based tasks should be automated for accuracy.

@Shiloh Lundahl

I see! That totally makes sense, thank you for sharing your feelings on coaching! Based off of that:

Why Equity stakes may make sense for you- your track record speaks for itself and should incentivize your students by the results that you have proven they can achieve alone. This creates a potential passive stream of income and a way to extend the lifespan of your coaching investment which seems awesome for your business model.

Example: Ryan Serhant, advocates profit sharing (equity stakes) in deals that his coaches help close which takes you from coach to partner, and a model proven successful.

Client View: Positioning yourself as a partner to their operation is a way for the client to understand your investment in their outcomes outside of the dollar signs involved, and shows them that you are coaching them in a way that provides long term success. As much as equity sharing is profitable for you, it is also a way to show your clients “Hey I am here for your success as much as you are, and I have a personal investment in you” which is an incredibly inspiring model.

I would however say maybe scale your equity based on the current state profit margin of your client, or even work in a sliding scale so it doesn’t turn off potential clients who may be at a slim profit margin as is and are concerned about it getting any slimmer. Maybe make equity sharing an option that offers a lower upfront fee.

Reference: (You may have read it already but if you haven’t I would recommend checking out Dan Sullivan’s videos/media). Also if you wonder where you fall compared to other coaches “A 2019 survey by the International Coach Federation showed that real estate coaches often charge high fees because of the tangible ROI their clients can achieve. Profit-sharing in the 20-30% range is also common in situations where coaches play a key role in creating wealth through property investment.” (ICF Global Coaching Study (2019): Rates and trends for coaching in high-net-worth areas.)

Hi Shiloh!

This is such an awesome story to hear, and I really admire the way that you are looking at your coaching program from the perspective of how you can help others and do what you love, while keeping the program accessible and affordable. 

To some entities, who put their top value at their coaching practice as profitability (which is of course okay, 90% of businesses are profit first-it's the norm!), it is also okay for you to explore what you value most form your coaching. 

Do you get the most value out of the money you make? Maybe the freedom or ability to reinvest that it provides you?

Do you get more value out of building up others? Does that invigorate and inspire you?

Do you get value out of business and client connections and referrals? And is it more valuable than the upfront/ cash or equity you could gain?

Not a straight answer but I hope these questions can help you find the answer for yourself! You are only short selling yourself if you are giving more to this coaching program than the value you get back from it. That is a question only you can answer, and remember value is not only monetary. 

Hope this helps! 

Hi Derek! Welcome to BP!

The Poconos is an awesome area for STR and is quickly exploding with popularity! In the Pocono area I would focus on seeking out Townships and HOA's that allow STR's as not all do. This would be the first point to checkout! STR Friendly

After that I'd definitely narrow down the type of surrounding area you want for this house. DO you want to be near all the attractions like resorts and malls? Or do you want to be nestled in a private spot in the woods with a lake? Both are attainable options in the Poconos. 

I'd recommend Pocono Summit and Locust Lake, both hot spots right now with a handful of good listings. 

As far as steps here- I'd say connect with an agent in the Poconos area first and foremost- an agent that has experience with investors and STR as well so conversation of this house will be easy!

Good Luck!

Hi Devin!

Awesome to hear that you are interested about getting into the RE game! Fellow gym rat here! (Healthy body healthy mind)

I'm an agent and Property Manager in the Pocono Mountains area. My clients are big fans of fix and flips (also fix and STR's, which are popping off in the Poconos right now).

In looking to dive into your first project I'd say the best questions to ask yourself are:

1. What areas am I interested in? (From there find an agency that specializes in the type of project you are looking for, set up Zillow alerts and watch- understand the market you are diving into so you can spot a deal, a good agent should do this for you too!)

2. What is my budget? Keep in mind renovation costs will need to be cash aside from your down payment and closing costs - I'd create a healthy buffer here. Working in construction can give you a leg up here- you can probably eyeball  a fixer upper and get some numbers going mentally to calculate the scale of project you are taking on. 

3. How involved do I want to be in this project? Do you want to get your hands dirty? Or will hiring a PM and reno team be a more realistic avenue for you (especially if you are looking for an area outside of where you are where the RE market may be hotter)

After you find the answers to theses questions, I'd hunt down a great agent in your desired area and start searching! 

Best of Luck- you're in for a ride!

1600's N 27th Street is a great area! Central and walkable but also nice and secure! 

What makes you interested in LTR in Philly?

Hi Troy!

I'm giving my 2 cents here as a former Cooperate manufacturing Project manager gone Property Manager:

I think the pay structure you have currently is an awesome start! With the RE game commission is a great way to ensure you get value in and value out on a project. However, as an agent and investor, we understand an accept that our payout comes with time- however for a project manager realistically looking for a 1099, being paid at the time of work is key to making sure you have the right person on your team.

Is there realistically a way that you can create your projections of net profit on a project (in a scale format from X$ to Y$) and find a happy medium in there of expected net profit, and carve out your PM budget there? You have a risk definitely, but paying your PM on a more consistent basis may help you get a motivated professional on your team who is there to stay! Maybe go for a commission based bonus structure to take it to the next level! 

On top of ironing out pay structure, I would 1000% create clear documentation of what expectations you have for your project, and how and when you expect your PM to meet them to ensure that you receive the value and service that you are paying for. The documentation creates both a blueprint and document of accountability. 

As a Project Manager, when diving into a new initiative, I'd sit down with a project charter with our VP, and ask questions to gain a full understanding of the expectations of a project. This may be a no brainer- but think of exactly how, when, and why you want this project done so you can clearly provide that blueprint to your PM.

Is your top priority here the timeline? The payout? The budget? Or creating the most unique Fix and Flip ever seen to become tiktoc famous? This could greatly change project approach for your PM. The less confusion, the more efficiency! 

Hope this helps and Best of Luck!!

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $50,000

My partner and I are getting into our first fix and flip! A beautiful chalet in Tobyhanna PA that needs some TLC to reach it's full potential.

What made you interested in investing in this type of deal?

My partner and I are interested in multifamily LTR rentals, and are beginning our journey with fix and flips to build capital.

How did you find this deal and how did you negotiate it?

I found this deal off market and found agreeable terms with the seller involving a midterm lease during renovation.

How did you finance this deal?

FHA Loan

How did you add value to the deal?

A complete house remodel and design.

What was the outcome?

Still in the process!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Armani Colon (Home Smart)

Hi Allison!

This is definitely a bummer! 

Quick question - is your clean team able to get some test strips and chemicals (or even a bromine floater) to monitor chemicals between each turnover? It may add a few bucks to your cleaning fee- but since the guest pays for the clean it becomes a pass through fee. You definitely don't need a maintenance person each time, you just need to have someone who can utilize chemicals and test strips. 

As a PM the only time I pay extra for hot tub service is 1) a complete drain scrub and refill (happens every 1-3 months, $120) or 2) If a technician visits to fix a problem ($125 trip cost) 

Hope this helps!