All Forum Posts by: Lotus Eli

@Lotus Eli

I find myself asking if he is really positioned to do real estate investing?  By "positioned" I mean - ready to pull the trigger when the right deal comes along.  We know no more about him than you have told us, but just the list of items you mention give me pause - "He's been trying to get into real estate for 6 1/2 years."  Being interested in a topic doesn't make him ready to do it.  Does he have the financial resources to even do a deal?  Does he have 20% to put down on an investment property?  When you 'cross' that with 'having been homeless' it makes me think of someone grasping at straws who is desperate for a solution.  I don't mean to sound rude or insensitive, it's just my outward observations.  

You don't say this as much - but is he just trying to wholesale?  If so, a lot of that can come down to how he carries himself - something that can't always be taught.  For instance - is he an outward people person, is he friendly, dress appropriately, appear confident, know what he is talking about, and have the charisma to pitch an idea people might not be familiar with where he builds their confidence in doing a deal?  Those are traits that are often internal to someone - not something you can easily coach.

Often what I hear is that you should start off by owning your own home... and let that be your first investment.  From there, you can either continue to own that, or turn around and rent it for a start to owning investment real estate.  

While wholesaling is probably the cheapest way to try and get into a deal, it isn't the easiest.  I think I would work towards positioning him to be successful in a typical job, build savings, and position him to be able to do a more traditional purchase.  It doesn't require all the finesse that wholesaling does - you have the money, you buy the property - regardless of your personal capabilities.  I just wonder if the path he is pursuing is the best path for him?  If he has diligently been trying for 6 1/2 years, it doesn't sound like wholesaling is for him.  But that doesn't mean real estate is not for him.  He may just need to look at a different approach.

All the best!

Randy

@Lotus Eli, being a mentor can mean a lot of different things to people, specifically the actual level of involvement.

What I find interesting is you mention mentee #1: making calls, driving for dollars... These feel very direct sourcing and closing tactics.

What you mention mentee #2 doing is very top of funnel items.  These tend to be very comfortable, "Oh let me add you to my email list" conversations.  What they aren't is: "are you ready to buy this deal?" "Are you ready to sell this deal?" "Let's get this deal closed" type conversations.  

The impression I get from this person is that they are uncomfortable with sales, in general.  A lot of people are.  I also get the impression that this person, like many, wanted a mentor that would spoon-feed the whole thing to them, and basically deliver deals on a silver platter.  Due to his background, he is very risk adverse, so he continues to float in the areas where they is little to no risk: study more, attend a meet-up, post on forums.

So what can you do?  I would change your KPIs for him.  I would, if possible, shadow him on prospecting drives.  Knock on doors with him.  Attend calls with him, or have him record his calls and then give him feedback?

And, you may need to be frank with him.  Studying more, and reading more books will not get him anywhere.  After 6 1/2 yrs he has a masters in real estate.  He needs to take a risk and actually execute.  

Congrats on your journey into short-term rentals, and your cottage sounds like it has great potential! Here are a few thoughts based on my experience:

Unique Amenities:

• Outdoor space: If you can create a cozy outdoor area with a fire pit, string lights, or a hot tub, it can set your listing apart. In popular tourist areas, having a place where guests can unwind outdoors really adds value.
• Local-themed welcome basket: Include local snacks, wine, or small souvenirs from nearby businesses. Guests love a taste of the local flavor.
• Tech perks: Smart locks, fast Wi-Fi, and streaming services are expected, but adding something like a smart speaker with local guides or even a coffee station with a variety of brewing methods (French press, drip, espresso) can enhance the experience.

Guest Experience:

• Personalized touches: Leave handwritten notes welcoming guests, or even offer a short list of personalized recommendations based on their preferences (e.g., favorite type of restaurant or activities).
• Thoughtful extras: Think of small details like board games, books, or even a Polaroid camera with a guest book where people can leave their pictures and memories. These can turn a good stay into a memorable one!

Seasonal Strategies:

• Off-peak discounts or promotions: Offering longer-stay discounts or special packages for holidays or events in the off-season can help maintain occupancy. Think about partnering with local event organizers and advertising your place as a perfect accommodation for visitors.
• Seasonal decor: Make your property feel cozy and festive during the holidays, or provide season-specific gear like beach chairs in summer or sleds in winter.

Local Partnerships:

• Experiences and services: Partner with local tour guides, restaurants, or even spas to offer exclusive deals or curated experiences for your guests. It’s a great way to create added value while supporting the local economy.
• Discounts or freebies: Some local businesses may be open to offering discounts to your guests in exchange for being featured in your welcome book or on your property’s website.

Looking forward to hearing from you and others as we share tips on growing and thriving in the STR world. Best of luck with your cottage!

Theme your property to its local area. Look for demographic data on demand through data providers like Transparent and accentuate pieces of your property that relate to the highest demand demographics. For example, a year and a half ago we received a new property on the beach in Hollywood, FL. She'd been averaging $63000 over the past couple of years and due to increasing costs needed to find a way to generate more revenue. Family groups were the main segment of demand in the area so we added a PS5, next level colorful beach chairs, Nintendo switch, hammocks on the deck, re-staged, retook the photos and increased revenue to $67k in a year that RevPars had decreased for the market   

Quote from @Lotus Eli:

Hey Investors!

What’s the most you’ve ever made on a deal, and how did you pull it off? 

I’m curious to hear your best success stories. Whether it was a brilliant strategy, perfect timing, or just plain hard work, share the details! Let’s learn from each other and get inspired.

Here’s a simple format to follow:

1. Deal Overview: What was the property location and the deal?
2. Strategy: What was your plan? (e.g., fix and flip, buy and hold, wholesale)
3. Challenges: Any obstacles you faced and how you got past them?
4. Results: The final numbers – purchase price, rehab costs, sale price, profit, etc.
5. Key Takeaways: What did you learn, and what tips would you give to others?

Let’s share and grow together! Ready, set, go! 🚀

We've had a lot of wins and also some loses.  Off the top of my head a win we are proud of is bringing back a few blocks on the SouthSide of Chicago.  Purchased and renovated multiple properties on the same block, which attracted other investors to do the same.  We've done that a couple of times.  Yes we made some $ but bottom line we were part of the rejuvenation.  

one of my favorite quick flips.

bought court house steps for 125k..  house was full of disabled children smelled of urine.

I knew I could not evict them.. so what to do.

turned out the well was also on the neighbors properety.. so another issue.

Asked the owner who owned the 4 acres behind her.. She said she did and there is no debt on that.. So knowing this was in the urban growth boundry but most likely a long time from anything happening.. I said go talk to your attorney I will trade you the house and some cash for the land so you will now own your house free and clear and not have to move.

Attorney comes back with 225k for the land i give her another 100k in cash and we do the swap.  within 1 year developer is doing a land assemblage and I sold the 4 acres for 250k and acre got cash out.. so made 750k on 250k in about a year on what was going to be a nighmare scenario.. 

Most court house buyers like me would never have even talk to the owner would have just went straight to eviction and ended up with a mess.. my style was to always knock on the door and talk to the person who lost the house.

Literally...a turf war drug war zone @Lotus Eli lol

What about you, what is your biggest win and how did you pull it off?

Great question @Lotus Eli!

If I am being honest, some of my biggest wins are getting through some of the more challenging projects...  

Like when I didn't pull permits, I had to rip on the cabinets and tile and then abate asbestos that was under the kitchen floor tile.  Got proper permits, re-did all the work, and and was still able to sell the property for a profit. 

Or most recently, when we bought into a 26-unit southside Chicago property that had false rent statements, squatters, and on-the-corner drug dealing happening.  Then one drug dealer started s fire in the other drug dealers tier to get rid of them.  We were able to unload this one and mitigate our losses.

Each deal, project, and day teaches me something new....so the biggest with win is surviving and persevering forward!