All Forum Posts by: Jay Rogers

I’ve been presented an opportunity to partner in a project to build a boat storage facility in Rockport, TX. Looks like a slam dunk. Anyone have experience with this sort of property? I’d love any advice on the subject!

Thanks for the advice @Paul Sandhu! In your experience with those times of short term tenants, are they looking for furnished housing? Do you do anything different when someone is renting for 3-6 months as compared to a few days to a week?

The property is in Houston Texas @Michael Baum. My wife and I purchased it when I was working nearby. We have since moved to the suburbs. We got the idea for STR when we tried to sell and received offers to lease from two individuals who intended to sublet it for STR. The property is centrally located between the University of Houston, the medical center, and NRG Stadium.

@Nancy Bachety we do not plan to use it for ourselves, as it isn't exactly a vacation rental. It's value as an STR is in its proximity to the above mentioned areas. And when I said "flip" before, cleaning is what I meant. My concern is how many days we'd have to rent it out per month in order to recoup our expenses. My rough math says about 2/3 of the month.

Honestly, selling was our first plan, but if we can make it work as an STR then why not?

My wife and I are considering turning a property into and Airbnb rental, and we’re looking for some beginner’s tips on the subject.

We know we’ll need to furnish it as well as supply cable and internet, and that we’ll have to find a service to “flip” it between a guests. What other expenses might we have outside of those and our mortgage? Any other “pro tips” would be appreciated as well.

@Jaron Walling just the money. Our team consists of a realtor, a designer and a guy with construction background. 

Yeah, it definitely seemed too low for the cost to me. It’s the indefinite part that really worries me. Our investor on the first deal is taking 10% on his investment of 60k upon sale of the house, but we may have just gotten lucky with that. I wouldn’t mind sharing a % of profits with an investor, but on a per deal basis, and even then, 25% for 30k would be high.

My partners and I are finishing our first flip, which we funded through a private lender for the down payment and then used one partners credit line for the rehab. We’re already looking to the next deal, and want to grow our business to flip multiple properties at a time.

Another investor offered us 30k as an “investment in the business”, rather than on a specific deal. We can use the 30k indefinitely on future deals, and he wants 25% of the profits. 

While the idea of not having to renegotiate on every deal is nice, I feel like the price is pretty steep. If our future project are similar to this one, he’d make his money back in 4-5 flips, and we could conceivably grow this business to a point where 25% of profits becomes a very large number year over year.

I don’t really know what’s fair here, looking for any advice at all. Maybe we ask for more money or for him to take a smaller %. Or maybe we put in the contract that we can opt to repay his 30k at any point to end the deal. I’d love to hear what you guys think.

My team and I are just getting our flipping business started (1st house in rehab stage now) and an investor has offered us $30k for 25% of future profits (after this house).

In our price range, 30k would cover about half of a down payment and closing costs, so we’d still have to borrow more for a down payment and closing costs. The rehab can be funded through a relationship with a portfolio lender.

I feel like 25% of profits is a lot for that size investment. Should we accept but for a lower profit share? Or maybe he gets the best of say 10% of profits or 10% of his investment. I’ve done promissory notes with private lenders but never negotiated what is essentially part ownership. Any advice would be greatly appreciated.

@Josh Rogers

Listen to podcast #311. Jay Scott talks about the inverted yield curve as well as the Buffett indicator and other clues to the oncoming downturn, but he also gives advice on how to prepare yourself to continue investing through said downturn.