All Forum Posts by: David M.

Assume they are a licensed broker/dealer.

What are some standard deal structures for bringing LPs to us and over what time frame are they paid out? Any economic downturn clauses? 

Also curious if anyone has given GP equity before and what would be expected there? Rough %s I have in my mind are 3% on capital they bring + 1% GP equity but not sure on timeframe for payouts and clauses to prevent liquidity issues during downturn given our 2/20 model. 

I'm also guessing the GPs pay the placement fees out of pocket? 

Hi everyone,

We are a brand new fund that will soon close our small $2M capital call to buy Single-Family homes in the $250K-400K range in Indiana. Will be running short-term rentals. Already run 300+ nationally but as a separate entity. 

We are looking for a long-term lending partner who has experience in the STR space. We plan to buy in other markets eventually with fund #2 (in the $20M range).

We intend to buy with cash for quick-closes and then do cash-out refis as fast as possible but would prefer doing an LOC or blanket portfolio loan and cross-collateralizing. Given these are short-term rentals, there will be no rent rolls and they are not pre-leased. Looking for 75-80% LTV with no recourse and no PG. We are covering debt service costs by 4-6x historically (already own 8 homes in Indy in aforementioned buybox).

Curious if anyone has any lender recommendations comfortable in this vertical - happy to jump on a call with anyone to chat further. 

Thanks! 

Hi guys,

Do you know of a national database that has property records? Like a one stop shop where I can search an address in CO or CA to see owner info?

https://www.narrpr.com/ possibly?

Hey guys, I own/manage around 150 Airbnbs around the US and we just acquired our first property in Indianaplosis. Was looking for some contractor referrals (e.g. cleaners, handymen, electricians, plumbers, HVAC) - any recommendations? Thanks!

Hi guys,

I own a real estate company that manages around 150 Airbnbs around the US. I'm hiring a new head of operations and I want to incentivize them to be excited when we add new properties to the portfolio. What would be a good model for variable income on "properties managed"?

Some ideas: provide a sign-up bonus of $500 per property we add. Or something like 1% of our revenue for each new property (I like rev share to incentivize keeping the owner's happy beyond initial sale, e.g. not a fan of just having idea #1). Any other ideas?

I started this business around 5 years ago and 2 years ago brought in an unsalaried partner. My partner Kevin has an equity stake in all of my businesses now:

Biz #1, he has 15%. This company has around 15 rental properties. 

Biz #2, 25%. Around 15 properties 

Biz #3, 50% - Around 25 properties.

Some of my major expenses are: 

Private contractors, around $200K/yr. 

Software/website/private contractors, around $40K/yr. 

Travel for business development/sales $10K/yr.

Would love your 2 cents on how I should assign the expenses (e.g. which companies should pay them) as they all benefit each business and assigning expenses to certain businesses would affect partner Kevin differently?

One idea is let's say I have $200K in expenses, I just divide it based on the % of properties. So if Biz #1 has 20% of the properties, Biz #1 pays 20% of the expenses.

That being said, I'd be open to simplicity just because ultimately it's only a difference of a few thousand and we both don't care much.

Hi BP friends - I am considering buying a multi in Santa Monica where short-term rentals are illegal unless a property manager lives on-site. There are a few other clauses that could make it work for us but of course want to invest in investigating fully before moving on it. Any referrals?

Hi everyone,

My company owns and manages currently 41 short-term rentals across 10 cities in the US and Italy. We recently struck a deal master-leasing 12 new units to go up in July in a 42-unit building in a city we're very bullish on - it was a unicorn deal and I'd love to hear any ideas on how to find more of them. While we'd prefer buying property, since we're already set up operationally, doing rental arbitrage still makes sense for us. Some ideas:

1. Hire sales guy to contact all new owners of multis that fit our criteria in our target MSAs - can buy list from lead gen service. Offer to master lease whatever units are currently vacant and gradually take over the others at lease expiration or via cash for keys. 
2. Contact large PMs in target MSAs - offer above market rent, 4+ year leases. 

I contacted Costar which seems like they could be a good source. Hoping for some other ideas here?

Thanks everyone!

-David

Hi guys,

I'm located in the US and do a lot of business in Italy (and soon Argentina). I'm looking for a bank that can hold multiple currencies, with good conversion rates, where I can set up local bank accounts to pay local utility bills, send out local currency (e.g. EUR) transfers, etc. To be more specific, I hold real estate in Italy and Argentina and need an all in one banking solution so I can pay contractors, managers etc in the relevant countries.

Thanks!