All Forum Posts by: Bennet Yen

I'm looking at possibly using Blueground or ZeusLiving for a condo to be used as a 31+ day rental.  Both companies have pretty iffy reviews from tenants who have experienced poor customer service.  I also saw some posts regarding ZeusLiving during the pandemic and changing terms with landlords.

Anyway, looking for more recent experiences with either of these companies.  Thanks for your help.

@Larry Krueger, as a previous poster mentioned, you would need to go through the same due diligence as if you were buying the property yourself.  Was the purchase price too high?  Are the rents reasonable for that location and asset?  Do you agree with their rental vacancy forecasts, their rental increase forecast, their expenses per unit, etc.

On top of that, I wrote down a few items that I would also consider:

1. Has the sponsor owned the property and has the operating history to suggest that project revenue/costs/return is accurately projected?  
2. How much has the sponsor co-invested in the deal - i.e. do they have skin in the game and how much?
3. How many deals has the sponsor done previously and what were the outcomes of those deals?
4. What is the track record of the sponsor of holding the asset to the planned duration (usually 7-10 years)?

I also agree that there are challenges with the DST market these days. Too many sponsors pursuing limited assets and causing price appreciation that returns are either low or overly optimistic IMHO. Good luck.