All Forum Posts by: Cody L.

 I felt the same way.  But at a point, the debt is so high, that more doesn't phase you.  I currently have $115 million in loans (about $600k/month of payments).  It's so beyond what my pre-investing brain can comprehend that doing another $20m loan for a $30m property feels 'meh'

tldr:  Don't let it bug you if your goal is to have a large portfolio.  It comes with the territory. 

Personally I don't care of someone got permits to do something.  If it's done right, I don't need the government having been involved.  Plus, I see all the reasons someone wouldn't want to bother with a permit so I'm not going to lose sleep over their decision. 

I used to reply, talk in DM about what we have, etc, but at this point I've given up. 95% of the people we'd talk to about leasing our properties so they could STR never moved forward (and most of those, we just never heard back from)

So now when someone reaches out, we ask a few questions first.  Starting with 'send us a list of your current portfolio and a bio'.  Since we've started asking that question, we've got no replies.  And that's saved us a ton of time.

We still have about 60 units leased to people who do STR. About 15 different operators.

@Shardea Miller My advice to you would be this:  Put together some type of presentation, designed to 'sell' people on the idea of allowing you to rent their property for airbnb.   Once you have your pitch, look for properties that are for lease by individual owners.  Reach out to them with your pitch.  If they follow up with you, follow up back.  It's a numbers game.  If only 1 in 10 will even reply, you have to make sure you're latching onto those leads hard. 

To crush it in RE , you just have to be better than most.  The good news is, most people are quite lazy.  So it's not hard to stand out. 

I started my RE journey while I had a full time job.  I got to about 150 units before doing RE full time.   Best decision I ever made.  I now have 2000 units and a team that allows me to focus on just the parts I enjoy (mostly the deal making)

I don't see anything I could have ever done that would bring me as much income and wealth.   

It doesn't question my sanity.  What I question is the sanity of those who want to jump in, but after years of tire kicking, never take that first step. 

I get emails from people all the time from sites like zillow, apartments.com, etc saying "Do you allow commercial leases" (which is code for "can I STR arbitrage?"). Our team has a canned response that basically says "Yes, at some properties. here is a link..." etc. I'd say 99 times out of 100 we never hear back (which begs the question of why are they bothering to reach out if they don't follow up with the yes replies).

If I were you, don't seek them out.  Almost always it'll be a waste of time.  If you do get contacted by someone who is serious (with experience) then just request a large deposit to protect yourself. 

Interesting commentary.  Thank you.  I'm curious how you know which Brompton property I have (if we've met, or talked outside of this site, I apologize for not recalling)

I, like you, don't love the areas you're talking about where some of my properties are located.  I have a ton in south east inner loop.  However, they also make a ton as I paid $20k-$30k/door.  So if it's buy a truxillo for $30k/door, and rent for $800, or pay $100k/door in Montrose and rent for $1000, it's an easy call.  In fact, there is a building on Truxillo across the street from my current Truxillo property.  I used to own that one as well but sold it.  I tried to buy it back recently but they wanted too much.  They got foreclosed rather than work something out. 

All of that said, as I've grown, I've started to stay away from bad areas.  I just don't need the cash flow.  Or rather, it's not as important.  Now I just want nicer properties in nicer areas even if the cap isn't as high.  But that's a luxury to be able to decide that's what you want as I couldn't have done that without the 'bad area' properties helping to get me to this spot. 

Interesting that there are no comments from people that know these guys.  Since I live Houston multifamily RE day in / day out, I just assume others know about and comment on our little niche. 

We have quite a few properties where we allow people to STR them. I don't want to post our URL as I don't want to come off as advertising, but I can message you. Almost all our stuff is in montrose, museum, med center, etc. Mostly 1-2 bed apartments but some homes.

Nitya overpaid for most assets, but was saved by the market.  

When you pay $130k/door for something that should be $100k/door, you overpaid.  But when the market rockets up to $150k/door, you can escape death and look like a genius.