All Forum Posts by: Michael Guzik

I'm not sure if everyone is on Twitter or Facebook, but there's been a pretty noticeable movement (usually among among millenials / Gen Z) to bash Airbnb / short term rentals. Everything from "creeper" landlords, to "Karen" house rules, and "people ruining communities with STR" have been going viral on these platforms.

This is pretty new and unusual to me, and I've seen an uptic in these posts the last couple of months, along with complaints on the "crazy" fees. These posts are usually getting thousands of reshares and thousands of comments, and I'm genuinely surpised that this many people are not fond of short term rental companies.

Are any of ya'll seeing this as well? I'm genuinely curious if it's just happening to pop up on my feeds, or if this is a serious "movement" for lack of a better term. Have any of you noticed a slowing of business on Airbnb or increase in difficult customers? Would love to hear from those actually involved in the business or management, not just keyboard warriors on social media. 

The conspiracy theorist in me thinks that the hotels may be behind this, especially given the recent exposing of how honest social media sites have been *complete sarcasm* but that's a whole seperate topic. 

Howdy everyone wanted to get some feedback / opinions on mid term rentals! Looking to begin a potential development in downtown San Antonio that can be short or mid term rentals due to the area. Wondering what your experience has been with either? And if you have a preference which one and why?

I don't think the supply for downtown, fully furnished, in a great location mid term rentals is there so I'm definitely leaning more towards that option, but I'm open to feedback. Would love to connect with anyone in short / mid term rentals in the San Antonio / Austin area as I dive more into this area of real estate!

We are under contract on a 20 unit apartment complex in Odessa Texas, and are looking for a property manager / management company. Do ya'll have any recommendations or someone you use?

@Bryan Reynolds Because of COVID most meetups are stagnant or not happening at the moment. My best advice would be to search on Facebook or even on BP for groups and people in your local area. PM them and introduce yourself!

@Nick Harz Great questions man! The short answer is the fact that you are asking all these questions means you don't know what you are doing, and you absolutely need to partner! However I'll do my best to answer one by one. 

1) Can R3C zoning be subdivided?

Don't know this, you will probably be able to find this by digging into your county/city planning and development website page. I definitely think it is worth a call and email to that department as well. 

2) I read that if I subdivide a land to more than 4, then it has to be a subdivision. What are the cons for that?

A subdivision has to have an HOA / Condo association depending on what it is. There has to be additional planning, document filing and just more paperwork. This is totally worth it if the money is there by adding additional homes or structures. Just be ready to have a real estate attorney and insurance company to help!

3) Should I partner with a developer or builder?

Absolutely it sounds like you haven't done a bunch of these before which means you will need help. I would either partner or sell this / flip it to someone who does know what to do. From the sound of it someone is already selling it so there probably isn't a spread. 

4) What due diligence can I do before buying the land?

Check the city zoning laws, check the future land use, is it in a historic neighborhood? Will a neighborhood association or councilmen even allow you to do this? Do you even have the money/cash to fund this development? How much would each dwelling/structure/home sell for? What will the floor plans / finish out selections be? Has anyone done this nearby? What was their experience?

5) Which home builders are appropriate for a project like this?

Any home builder who has done it before and is willing to partner or even take on the project. Experience and quality aren't cheap though so be ready for that! Make sure you are comfortable with their process and how they work, it will be a long relationship with many obstacles so make sure you are aligned. 

6) What else to consider?

I don't know the area and the projects around there but you really need to consult with people who actively do this and get their opinion. 

@Regan Moore Was this new construction home in Arizona? I'm here in south Texas and a new construction house for 150k is almost impossible now. 

Regardless great job on pulling the trigger and taking action! I can totally empathize with you on Dave Ramsey and his teachings. A mentor of mine once told me "Dave Ramsey is great for getting you out of debt and helping you get your finances in order, however he is not who you want to listen to when it comes to building wealth."

I think you know what to do and realize how to scale, it's just a matter of doing it. Good luck and I'm sure you will use the power of leverage over time, to build the life of your dreams. 

@Eric Martin Great question and this sounds like a potential deal for sure! I don't think I could have said it any better than @Patricia Steiner said. You really need to do research and it sounds like you need a partner for sure. I don't know what construction is like in Wisconsin but people often overlook the construction arm of a development/project and that is not wise at all. You really need to find experienced partners for the construction and money side of things.

Having a deal will open the door of opportunity to bring in experienced people, so if this really is a deal you should be able to find the right puzzle pieces to make this happen because they will see the ROI/potential.

@Janet Hansen Welcome to BP and good on you for taking action! It's always great to see someone else here from San Antonio.

I second what @Rick Pozos said and to figure out who NEEDS TO SELL. They need to have some sort of motivation or reason to sell and sell quickly for a discount. If you have houses that look like crap you need to get them skip-traced so you can get property owner information and call/text/email them. 

You can simply start by introducing yourself and asking if they would be open to selling? I would be ready for rejection and maybe even some upset people. I personally would recommend listening to podcasts, reading books and looking up cold calling scripts and techniques if you want specifics. Youtube was a huge help for me back when I did this all the time!

@Joanne Tsai Great question and it's very intriguing to see the different responses and input! I can't speak to all cities and markets but I can speak about San Antonio. It is still hot and definitely still a seller's market, however with that being said homes are starting to sit more, I'm seeing more homes come back on the market, and I'm seeing price reductions. I believe it is starting to "cool off" just a bit but it isn't dramatic. It certainly isn't as crazy as it was before but it's still a hot market.

I believe some people are realizing they can't just charge whatever they want anymore, because of appraisals which is the reason for a lot of price changes, and/or back on market's when the deal falls through. It still certainly is a tough time to be a buyer but things are getting a bit easier. We will see how the market looks once the court starts opening up and foreclosures and evictions start happening.

@Derick Dume Welcome to BP and congrats on deciding to take action man. The first step is always the biggest and scariest and my personal recommendation is to start networking. I don't know the Florida market that well but if it's anything like here in San Antonio small MF properties go FAST and are increasing in price. It is almost to the point in most scenario's where the number's don't make sense. 

It definitely is a seller's market so it will be much harder to find "good deals" right now than it was a few years ago. This is why I recommend joining local FB groups, and reaching out to other investors/brokers/lenders in your area. Who do you know that is already in real estate? Who do you know that knows someone in real estate? Start talking to people that are doing deals and/or doing what you want to do! Get their input and advice and go from there.