All Forum Posts by: Francisco Ruiz

My son who will be 15 in a few weeks will be off for the summer soon. He will be looking for a local job, and thought I'd connect with some folks in the RE and RE investment area to see if there are any remote/virtual opportunities you might need assistance with for a few hours a week. My wife and I own/partner and manage 4 STR's and give him small jobs from time to time. This includes Airbnb/VRBO analysis of homes in our markets; pulling data from Airdna or STR Insights; scanning documents for us.

Thought I would check to see if any others out there might need some small tasks/jobs you don't have time for which he might be able to help you out?  This way he gets to work some and earn money, but more importantly he can slowly learn about the business to help him down the road.

Quote from @Michael Baum:

Well @Francisco Ruiz, I am just going to say that partnerships aren't our thing. Too many variables for me.

 Can appreciate that, for sure not a structure for all folks.  In our case the first couple are working out ok, and feel if we put even more structure in place and find the right partners with the same goals it could be pretty beneficial for us.

Quote from @Francisco Ruiz:

Quote from @Andrew Steffens:

Other than possibly getting some interest here on BP how are you seeking out such partnerships?

And for finding partners, as you mention 1) Connect with folks on BP, also 2) Local RE meetups to network, 3) Network through existing circle of contacts in RE to ensure folks are aware and refer folks who would be intested in this type of partnership

Quote from @Andrew Steffens:

Other than possibly getting some interest here on BP how are you seeking out such partnerships?

@Robin Simon presents a good point, who decides when it is time to sell? refinance? how will property be titled? etc

Would likely put clause in operating agreement that either at 12 month anniversary dates, or 18 months, either partner could seek to exit.  Remaining partner could buy out, or they agree to sell.  For title was planning to set up a master partnership LLC, and each partners individual LLC would be 50% owner.  We would move title to the master LLC.

This is are area where some input would be helpful to understand how others may have structured theirs.  Was thinking in the operating agreement there would be a section for exit, where on annual anniversary dates either partner could exit with xx days notice, remaining partner has initial rights to buy out partner based on then current appraised value + any accrued equity.  And if they chose not excercise that right, either parties agree to sell or the partner exiting may sell their portion to a third party who would then be under the existing terms.  Thoughts?

We own 2 STRs (TN and VA) and are in partnerships in 2 others (VA and OK). We have learned with each deal and each property about the analysis, design, setup and managment of STR's. Our last partnership was with semi active partners, but we still carried a good portion of the weight, and we realize that we are looking for more of passive partnerships with us handling the bulk of work. The structure we are looking to move towards would be 50/50, with other partners providing the cash for initial funding, we would provide all the services (analysis of markets/properties, setting up of LLC's, design, sourcing of all furnishing and essentials, setup, creating of listing, managment of property). These items would have a value of $x, which would go towards our 50% stake, we would also charge a reduced managment fee and reduced profit share until full 50% is met.

Like to get thoughts and input from others who have experience with similar type partnerships to ensure we are thinking about this correctly and point out any items we should consider, any risks from our side or partners we need to address, and any other ideas or suggestions.

Quote from @Erick Pinzon:

Quote from @Francisco Ruiz:

We are looking at Snowshoe, WV as a potential market.  We are looking at both a condo and also a home that are near the base.  Condo is in Soaring Eagles and is ski in/ski out.  The home is just a block away, in the Sanctuary, but not technically ski in/ski out.  Curious to know of any in the area how condos perform in the summer time?  I assume in the winter months they would perform well, but in the spring/summer/fall (non ski months) how do they perform?  I would assume stand alone homes might perform better during that time.  Any input would be appreciated.

 Did you pull the trigger on one? We own three at summit and they do quite well. I know two people at SE and they do even better. Happy to chat more if you have questions.

 Hi Erick, we did not pull the trigger on this one.  We are still keeping our eyes on the market, but ended up purchasing in Broken Bow, OK for this purchase.  Will definitely pick your brain sometime when we are ready for the next one.

Thank you all for your feedback and input.  Will reach out to some local banks and lenders and get those conversations started to look into those options.

Thanks Zeon, will definitely look into that.

We have two short term rentals, one in TN (rate at 3.25%) and one in VA (rate at 3.8%). Don't want to move from those rates to current rates, but would like to find a way to utilize or take advantage of the equity in both for other projects. Any creative financing options to consider or look into?