All Forum Posts by: Jeff R.

@Collin Hays

My Intent is to list as a one week (7 day) term. I can list for 2 weeks also. When I vacation its normally 1 week and find it more then enough personally; however, I am open to recommendations. Additionally, I can book and list a condo unit, a one bedroom, or a 2 bedroom. The smaller the size of unit the more listings I can have available. I hope that makes sense. 

I should point out that I would be using points from my timeshare ownership to do this. 

Immediate locations are: 

Cabo San Lucas, Northstar Resort Lake Tahoe Ca, Welk Resort San Diego, Breckenridge Colorado, Branson Missouri, Palms Springs. 

Additionally I can book at other destinations world wide through Interval International but that would be later. 

Hello BP people, 

I hope everyone is faring as well as possible during these trying times. 

Here is my question

Who is having or has had success using timeshare ownership to put on Airbnb? I know there's hundreds of answers that can be subjective with many what if’s. I am aware that the vacation destination and vaca travel has simmered down due to the COVID-19; so with that taken into account, my intent is to start putting things in motion so that I'm operational when the economy and travel confidence improves.  

Thanks for ready!

Maybe someone already stated this, but here goes. My personal opinion is it will be location dependent on how the real estate market will perform in light of the COVID-19 outbreak. Just like the individual real estate markets performance is a product of your local economy when times are good, the effects on peoples jobs, such as slow sales, no sales, closed business, and forced layoffs are all events that are taking place right now. Fortunately for me, my RE market is saturated with government employees who will not be laid off or lose pay for the most part, maybe a few reassignments. For areas who’s economies are based on travel such as vaca destinations they will definitely feel the sting first. A brick and mortar business can last but so long with out customers until it has to close its doors, and with social distance implemented and highly recommended who knows when folk are going to get back out and support your local economy. With that said, I strongly feel as RE investors we will have to calculate this risk into our numbers,  continue to be creative, and find solutions where others see turmoil. 

@Kevin Lefeuvre I personally will continue to invest because inventory is extremely low in my market, additionally this outbreak may scare other investors 'so buy when others are fearful’. 

Essentially it may be an opportunity in disguise if you properly run your numbers a bit more conservatively. Like buying a new  roof for an investment property in the middle of winter, comes with at hefty discount.  

I converse with my lenders in regards to the pulse of the mortgage market as they get to see the trends develop. 

My 2 cents in the bucket.

I am looking for a recommendation for a lender who does HELOC's on investment rentals in San Diego County. Thanks!

I started using these tools most recently.  I used spreadsheets I put together with formulas to make my calculation. The part I don’t understand of the fix and flip calculation tool, maybe I looked over it, is what is the type funding taken into consideration with this tool? To me it does not apply the 70 percent rule. So I wonder, as a default loan type, is it using a hard money loan, if so what percentage and points? this would determine the offer amount. If I used a bank loan with a rehab budget, that’s a different offer amount. 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Matt Crusinberry Thanks for your response. To me the 70 percent rule using your example on a 1 million dollars ARV property would actually be a "guesstimate". The calculated 30 percent from the ARV would account for holding costs, seller closing costs, buyers closing cost help, commissions, taxes, title fees, and profit. Then subtracting the repair cost would provide the offer price.

When using the fix and flip calculator it allow you to input profit wanted, however after calculations are done the MAO is much higher than using the 70 percent rule. I feel using the 70 percent rule will get you outbid every time. But on the other side of the coin I might lead someone to overpay.

I have been using the 70 percent rule on my deals to determine the MAO. I used the fix and flip calculator in the tools tab and am having trouble understanding why the big difference in MAO. They both serve the same intent which is find, fix, and sell. Granted the 70 percent can be adjusted to fit a specific market. A recent analyses of a deal was $189,200 MAO using 70 percent rule, the other about $245,000 MAO using fix and flip calculator. Can someone shed some light on this?

Thanks

@Jonathan New thanks for sharing. @Ron Etienne Younger I have used private money in the past, such as SDIRA’s and companies with capital to invest.