All Forum Posts by: Hector Valle

Hey BP community. Looking to help fund a down payment with a relative on a property that I think has amazing potential. It's a few meters from the water, it is a very popular scuba diving spot in west palm beach and a location that gets many tourists. Now the occupancy rate for similar properties nearby are about 80% and ADR ranging from175-400. But this one is pretty unique in terms of views and proximity to water so I think we can get 350-500 on the low end.

So on to the terms, I am unfamiliar with how private equity deals are usually structured so I was thinking I can anywhere from 10-15% of monthly net revenue until they buy me out of my original 100k 15 months the earliest and 24 months the latest. What do you guys think? Has anyone structured anything similar with repayment period or exit strategy. Thanks

@Scott E. Thanks for the reply. should have mentioned that I am pulling out equity out of my primary residence not the STR. Luckily we've already qualified for conventional financing so the only things to iron out are the details of the deal.

I agree with you, this is structured more like a private equity deal. In which case what would the ideal or typical terms be? 

@Austin Drew Thanks for the reply. So you're saying take 50% instead of the 15-20% of gross profits and pay them a management fee and set up fee? How much would those fees normally be per month? I'm thinking 16 month earliest buy out and 36 month at the latest. Any other details or contingencies I should be thinking about? 

Hey BP community. I'm looking into getting into the STR game with a property that I think has amazing potential. It's a few meters from the water, it is a very popular scuba diving spot in west palm beach and a location that gets many tourists. Now the occupancy rate for similar properties nearby are about 80% and ADR ranging from175-400. But this one is pretty unique in terms of views and proximity to water so I think we can get 350-500 on the low end.

So on to the terms, the home is being listed for 997k. My relative and I are planning on each putting down 10% coming out to roughly 100k each. I plan to take out a HELOC or Second Mortgage (depending on what makes more sense). We would be both on the title but they plan on running the AirBNB. I was thinking I can anywhere from 15-20% of monthly gross revenue until they buy me out of my original 100k. What do you guys think? Has anyone structured anything similar with repayment period or exit strategy. Thanks

Hi Peter. Are you able to email me that monthly market report for SWFL. I'm in Palm Beach looking for our first rental in the area. Thanks

Hi Jon. Interested in the next meeting.