All Forum Posts by: Dexter Crawford

Do any of you know of any loan products or portfolio lenders that cater to the vacation rental market (long term refinance)?  I'm aware of FirstKey, B2R Finance/Dwell Finance, and Lima One.  However, they specific exclude vacation rentals and short term leasing.

I currently own 2 properties in the Chicago land area I gross $50k/each property yearly.  My long term goal is to own 25, with an aggressive goal of 10 (8 more) by the end of 2016.

I'd like to hear some success stories on how you expanded, acquired more properties, and financed them.  Any assistance would be greatly appreciated.

I'm probably not the best person to answer this, because I've never had to evict someone.  I just pulling from personal life experience, If you've never met the tenants before, I'd imagine it wouldn't hurt to feel them out and get a general idea of what type of people you are dealing with.

I'd probably keep the vacation rental part out of the conversation and just advise them that the building will be gutted or remodeled top to bottom thus needs to be empty.

I'd send that in a written format first.  And maybe just give them a call to give them a heads up.

Good luck.  I dread the day that I have to go through this. 

You can list through HoweAway.com for free.  It will only cost you 10% of your booking cost

@Jeff Bentz I'm glad.  And Thank you.  Hopefully I'll be able to reach my business goals for 2016

@Ryan Dossey That is the conclusion to which my partner and I have come.  Our business model supports having a healthy blend of both: 1) Properties we own - allowing us to create value through equity and 2) properties that generate passive income for us would the financial strains of ownership.

We just acquired a SFH 2 weeks ago. Even with a hard money lender funding 80% of the deal, we are out of pocket $50,000. Really putting a dent in our working capital.

I've been doing a lot or research and there seems to be several companies that "control" dozens and, in some cases, hundreds of properties.

For those involved in the Short Term Leasing niche, are you focusing on ownership or managing other people's properties.

Just curious on what other's are doing to have so many properties under their belt. 

My company is looking to add properties to our inventory.  We are targeting luxury single family homes, apartments, condos, and townhouses in prime metropolitan areas of Chicago and Chicago's West Suburbs. Our business strategy allows for us to guaranty our owners 100% occupancy. 

We specialize in the short term leasing of furnished housing.  This business strategy has enabled us to build a large database of clients seeking lodging for the purpose of travel - business and personal.

All our properties would are furnished by our company. We'd also maintain the appropriate insurances for the short term rentals and assume the responsibility of the agreed upon lease amount and utilities. We also assume the cost of yard maintenance and all minor cosmetic repairs.

 We have built our business around the ideals of business professionalism and excellence is customer satisfaction and experience. You can view one of our managed properties here at www.homeaway.com/3733046

I'm not so excited about this.  I've always predicted that bnb market would become over-saturated at some point.  Everyone with a semi decent place will want to list to make money.  The problem with that is the quality will begin to lack and renters will become reluctant.  This will cause a temporary drop in demand.

This buyout opens the door for this saturation.    More competition will also drive prices down.  People will have to price their homes significantly cheaper.  I make $150/night, off my home.  I'm certain that now, in order to stay competitive, I'd have to drop my price down to $100/night (at some point).

With the price drop, the quality of the tenants become an issue as well.  Price drops make it affordable for EVERYONE to rent.  90% of the tenants I've given discounts to, mistreated my property.  The higher the price, the better quality tenant you have.

@Monika Haebich. Thank you. I do self manage. However, I literally JUST got out of a meeting. I may have found a partner to spearhead this expansion project.

The success I've experienced has is a result making a consistent effort to do good business. With my tenants/guests, I don't promise perfection. I promise fairness.  This business model has worked for me.

I look forward to following your post.

@Monika Haebich, I currently own a home in the an urban market (middle class western suburb of Chicago) and I'm looking to expand. http://www.homeaway.com/3733046

So far this property has booked 238 nights at an average nightly rate of $147. 

I'd love to be a part of Bloomberg's research/interview/article.