All Forum Posts by: Jon Crosby

Hey Sophia, wanted to say thank you, I did reach out to Michael and met with him last week.  He was insightful and able to answer my quick set of questions (free of charge actually)!  Funny thing, he never even heard of Bigger Pockets!  ;)  

Thanks again and happy holidays !

Jon

Hopefully this will be quick, I'm looking for securities attorney referrals in Sacramento/Roseville area to discuss some real estate ideas.  Looking for an hour or two that will not break the bank for one particular project and that will hopefully lead to longer relationship with future syndication type deals.    Thanks!

Hi 

@Bryan Ghorbani I currently have a 'much' smaller VR in South Shore (3 bed/2 bath) that has been pretty successful the last few years.  I'm currently occupying a 51% occupancy rate but once again, I'm in a totally different target demographic that this property would likely fall under.  Op Ex ratio for my VR is currently at about 75% and I have done quite a bit of due diligence in getting the best price/service combination for my guests experience.  Higher or Tahoe specific items on my P&L are as follows:

Booking agency/payment processing/Advertising:  15%

Housekeeping (pass thru to guest) 20%

TOT (occupancy tax, pass thru to guest) 10%

Spa 4%

Electricity and Gas (10%)

Cable(3%)

Water (3%)

Snow removal (2%)

There are a few other line items like trash, maintenance, etc.  Keep in mind my Op Ex is at 75% with a 51% occupancy rate, so I really have to keep it full both seasons full time to make the place pay for itself and net a little positive cash flow each year.  You would want to do a little more due diligence on the historical rental income without that Corporation renting it all season as that is likely not going to be the case every year AND last year was an exceptional Ski season over the last decade of drought.  Definitely map it all out under worst case scenario with something this big, because you will not be able to quickly unload it most likely in Tahoe if it is not able to pay for itself. 

I manage mine remotely using exterior cameras (make sure snow and spa services are happening) and digital locks for check in which really allows me to only have to invest about 2 hours a week on the property.     

Hope this all helps, good luck! 

So far I'm sold on their business model and am reaching out for some more info from Liz and Terry.  We are currently holding some funds for another national turnkey outfit but really like what these guys are selling.  Plus our interaction with the other outfit is a little slow and lacking 'interest' in our investment it seems like.  As for the Yelp reviews, the one reviewer only had that one review, no picture or profile so it's suspect on it's authenticity.  And the other guy from SD, basically gives 1 star reviews EVERYWHERE he goes!  LOL  That being said, I think my biggest due diligence will be digging into who they are renting to and what areas they are in, probably pay for my own neighborhood assessment or use my RealtyTrac account to validate everything else. 

@David Hutson it's great to hear a local guy having a good experience thus far, please PM me if you have any other advice for us.  As we all know Memphis is the 'hot place' at the moment so I will be curious as to what kind of exit strategies you might have setup for these properties.   Thanks all! 

 Great, thanks @Jason Bott !

 Thanks Fred, I think that's the answer I was looking for!  Appreciate the feedback! 

 Sure Brian, we are not very far into the process yet but feel free to reach out with any questions.  

Hello, we are looking at some turnkey investment options in Independence and Raytown and finalizing our cash flow analysis.  Being from California, I don't have much insight into Tornado/Windstorm coverage but assuming it's mandatory in the Kansas City area?  If so, could somebody give me a ballpark estimate as to how much that coverage costs per year? 

Thanks!

I am a novice investor (1 VR basically) but looking to expand portfolio.  I found a pre-foreclosure in RealtyTrac that has a 168k loan on a 251k value in my area.  It notes that the owner is also in Bankruptcy.  If I wanted to pursue this property, what would I do next?  Ideally I would like to take over the loan, but I don't believe you can do that anymore (assuming I could contact him, and he agreed to that).  Do I reach out to the lender to put my name down in consideration possibly?  I'm guessing this is where a mentor would come in handy (no I'm not asking for one on here either).  :-) 

Thanks for listening and any responses to my general question!