All Forum Posts by: Kevin Yoo

@Jay Hinrichs

The short-term rental is not for every property. But for desirable places like Austin, it may make financial sense to do this as oppose to long-term rentals where the numbers do not pencil out.

I was also under the impression that short-term rentals at best break even. But I am hearing that this is no longer the case. I would be very interested in knowing if @Gary Ennisis having such success in Austin.

Essentially, this technique is no different than subdividing land which is what you do. You are simply subdividing time and hopefully making more money than if you sell it whole.

@Gary Ennis

Gary,

I read your post and was very intrigued as you are essentially changing the value of the property by its use. However, what is missing in all this discussion are the numbers. If you would not mind, I would like to know what your ROI, CoC, CAP rate, Expenses/Income, Gross Income, NOI, etc. were before you converted this home and what they are now. I am assuming you did this because it is performing financially better as a short term rental as opposed to long term rental. Thanks for educating us in advance.

@Ramon Jenkins

Many people responded to our request and I spoke with just about all of them. However, so far we have only found one potential Ground Partner in Orlando, Florida with whom we bought a 4-plex and a duplex. These properties have just been rehabbed and in the process of being rented out. As we are early in the process of vetting these properties, this market, and this GP, we are not yet fully committed.

The reason why we have only found one GP is because the people that responded including those on this string of posts initially show a lot of interest, have a few good conversations with us, and sometimes exchange multiple emails, but then they simply disappear. I will have to admit that our program is not for everyone and our response or lack of response to some of the inquiries may have caused some of the interested parties to disappear. However, it is without a doubt that finding a good partner is as hard as finding a good property. You have to kiss a lot of frogs. And you have to be persistent. Those who really want to succeed with us, should never give up. But too many do.

Of the current active GPs in the EAC Community, many of them have come from BP. We are currently looking at several guys who found us through this post and who keep pursuing us. And I keep getting inquires here and there from this post. I will never stop looking for talent. Finding an excellent partner is more important to EAC than finding an excellent deal. 

Hi BP Investors,

Here is the link to the documents for Partnership, you view it via Dropbox or visit our Website:

Dropbox:

https://www.dropbox.com/s/pz67zjprjgdff23/Buy%20an...

https://www.dropbox.com/s/bcoj9xcex2dadi7/Fix%20an...

https://www.dropbox.com/s/tfw1t55hnseg5ck/EAC%20Co...

Website:

http://eacinvestments.com/for-potential-ground-par...

There are separate tabs for Buy and Hold and Fix and Flip.

@Account Closed

We structure our agreements as a hybrid model. From the Investor Partner's point of view it is a promissory note and therefore debt instrument with a fixed rate of return. From the Ground Partner's point of view, we are more of a partner in the deal and therefore it is more akin to a joint ventureship. 

@Jeffrey Rust

Here is my contribution to this discussion. I think you as many others can do very very well doing HML. But my philosophy is to be a Jack of all trades. I think you are best served knowing real estate investing from all different angles and invest using multiple different strategies. Diversification. I recommend that you create a portfolio of both rentals and notes. I recommend you invest in both residential and commercial. I recommend you lend money and borrow money.

We all know the risks and know of HML and of rentals that have gone bad and people have lost their money. So, sticking to one method is certainly no fool proof technique. But neither is diversification. It just means you know how to deal with every situation. And if you become good in that way, opportunities will come to you that will perhaps give you more than 13% ROI.

Lastly, you cannot learn everything and be good at everything. But you can find others who are master of certain things and put them on your team. Use OPM and OPT (other people's time.)

BTW, you should get more than 13%. The least we take is 36%. 

@Traver Freeman

There are many many many ways to make money in real estate in San Diego including your tactic. Keep looking. 

@Traver Freeman

Now you are thinking. This is creative real estate in action. And you are using every possible avenue to do real estate which means you will eventually succeed. 

And there are tons of opportunities in San Diego. Honestly, if you cannot make money in your own backyard, that's an interesting problem. And even if you plan to the teeth not to rush into something foolish, you will look and feel foolish more than once. If you don't ever feel that way, you are not investing or not investing enough. 

Lastly, don't save money to buy real estate. Use OPM. You will have made it when you use OPM and make OP good money. That is how you do good real estate investing. Otherwise, it's just a hobby. (And there is nothing wrong with that.)

@Jean Bolger

I understand your points. I really do. But that makes BP like my children's recreational soccer league where everyone is a winner. Everyone gets a trophy at the end of the season. There is definitely a reason for this as I had all three of my children go through recreational soccer and I know how fragile their egos were at that young age. 

But I know that when I step away from my computer and the world of gentle and well-mannered real estate investors, the real world of real estate investing is filled with land mines with incompetent and crooked investors constantly giving me advice that seems eerily similar to that I get on BP. And when I like a fool believe them and go down a path with them, I simply do not get that trophy every time.

Although there is a reason and a place for BP community, it is somewhat detached from reality. 

Why don't we have the opposite? If your posting sucked, misleading, misinformed, or outright fraudulent, we should get some sort of opposite of voting. I know some of these posts get taken down but then no one will every know you were terrible. 

I for one would want to know if I ever posted such a thing. And if we want to help BP learn, should we not learn only from good posts but also bad ones. Strange how we only reward good deeds, but do not punish bad ones in the group.