All Forum Posts by: Account Closed

But if I can operate as STR and I can get 3-4x as much revenue vs LTR at a 50-60% occupancy, what's the harm in leaving the units vacant at times? I teach my students that higher occupancy doesn't mean better since a 90% occupied STR may generate just as much revenue as a 70% occupied STR (with higher ADR) except the wear and tear will be greater...

That does sound great. I'd be naive to think that no investor kills it with hotels. I am speaking out of a devil's advocate position and would not claim that all hotels are bad investments.

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Hey Ronshay,

I'm an acquisitions analyst at a real estate investment advisory firm. My job is to model properties for clients in our two midwestern markets of focus. We've partnered with a realtor in these markets to represent our client's offers, and also connect the client with our tried and trusted property management companies there. We also have an asset manager who walks the client through the first 90 days of ownership.

Many of my clients say similar things about not knowing what they don't know and having a surplus of questions.

Feel free to shoot me a DM, I'm happy to help.

Thanks!

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Fresno, California

Hey Bryan,

If you want to chat, I'd be happy to offer some insight. Not trying to sell you anything.

Feel free to shoot me a DM,

Thanks!

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Bryan-College Station, Texas

In a hotel you can imagine you're leasing to tenants with a 1-3 night lease.

That opens the potential for a LOT of vacancy if you aren't in the right place at the right time.

Business is also extremely seasonal.

I'd opt for multifamily if you want many units.

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Hey Michael,

Many of my clients say similar things about not knowing what they don't know and having a surplus of questions.

Feel free to shoot me a DM, I'm happy to help.

Thanks!

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Sounds like I'd have to take stupendous amounts of risk. That being said, I'd probably load up on Virtual Property in the Metaverse and pray I'm right.

I'm kidding, kind of.

So $500k to $20m in 5 years is 109% / year for 5 years.

I'd have to invest that $500k in an index fund and take margin on that which, assuming I am getting 1.5% of my account value, means I'd have access to a total of $750,000.

I'd go find an extremely depressed market somewhere and buy up as much as possible and hope I'm right. In stocks this would be much easier, not to take away the fact that this is statistically extremely improbable.

1 Vote

Quote from @Andrew Fudge:

Quote from @Account Closed:

As a landlord, the lease term is up to you. My experience in college was that leases went from August - August.

I was in a college town where the demand for rental housing for upperclassmen was through the roof. A lot of that had to do with the city and the fact that there is limited housing and laws against building buildings over 5 stories.

Do the research into the relative income of the town and the income of the parent base. I went to school in a rich town with wealthy parents on average and I knew zero students who paid their own rent. Landlords had full pricing power because of limited housing stock and knowing that parents are going to stroke a check no matter the rent.

I'd say the opposite and claim that getting into a good investment home in a college town is one of the most lucrative ways to be in this game. The hard part is, the markets with high income parents and residents usually have high investor competition for deals when they hit the market and expensive property values. Lastly, the property management companies in these college towns usually have a monopoly and manage a majority of student houses. There is definitely some agism there in their aggressive fines, although, the strict fine structure surely incentivizes students to respect the house and not be morons.

For reference, my college town was Boulder, CO. If you're a student landlord there, you do very well.

Thank you! The competitiveness in the area is pretty intimidating to me as a new investor, however the abundance of local property management companies near me makes things a little more calm.

Good property management is always a good thing.

Albeit you'd be borrowing at higher rates, if this town is a long-term investment for you, you may consider trying to get into that market now when there is less competition. Some investors have inelastic demand for real estate and will borrow at any interest rate. Most are very elastic and wait until debt is cheaper to borrow. If the market is worth it to you, borrowing at say 8% may not be a bad thing if that means you're able to get a spot.

1 Vote

Austin, Texas

Hey Chris,

I work at a real estate investment advisory firm. We help clients get into investment properties and can help underwrite deals and suggest property management companies.

Let me know if you'd like to chat. Would love to help out.

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Houston, Texas

Hey Evan,

Most parameters that you'll try to estimate in a model vary by market, neighborhood, year of the house, etc... It can be hard to get these right.

I am an acquisitions analyst at a real estate investment advisory firm and my job is to model properties in our two midwestern markets of focus, to be sent to clients who are trying to acquire another investment property.

We know these markets extremely well. We take care of modeling, property management selection, and have an asset manager that helps you with tasks in the first 90 days of ownership.

Let me know if this could be of interest to you!

Thanks.

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Akron, Ohio

Hey Matt,

My firm puts clients in passive income funds like DSTs, alts, and gas & mineral right royalties. Most of our clients have inherited or sold property and want to 1031 into a passive income fund like this. DSTs are 1031-exchangeable. An example would be - Cantor Fitzgerald is the sponsor of this Amazon warehouse in Texas that produces a 6% return to investors for 4-7 years and has a 15% IRR at the end of the hold period.

Shoot me a DM if interested!

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Charleston, West Virginia

All Forum Posts by: Account Closed

Account Closed has started 0 posts and replied 176 times.

Post: Hotel Investment Worth It?

Post: NEED A HANDHOLDER TO GET STARTED

Post: Ready for the Journey!

Post: Hotel Investment Worth It?

Post: Seeking Mentorship for getting into my first property

Post: If someone put a gun to your head...

Post: Would a college town be certain death to a new investor?

Post: Back again.. Years later.. but I think I'm prepared..

Post: Any tips for analyzing properties. (1% & 50% rules)

Post: Inheriting a property