All Forum Posts by: Nichole Stohler

Hi Justin, congrats on taking the right steps to learn and asking for help!   @Andrew Postell  has some great tips to get more information specific to your market since dynamics are very diverse across the country.   For example, in Phoenix, we have a supply shortage in the lower end and long-term rentals in this space and can be rented out quickly within a month. Here are some ideas for additional research in your market:

- Determine your budget for purchase of a property and the corresponding location and monthly rental amount that you'd need to generate the return you are looking for.  Check out the BP tools for this.   
- Call property management companies and ask what they are seeing... rental rates, how long it's taking, seasonality, most sought after locations and rates, etc. One of my podcast listeners was able to get a ton of information in his local market (Denver) from a property manager which then helped him to decide on his first SFH.
- Look at the zip code/areas where you can buy a property that fits that criteria, use Zillow to check out current rental amounts for similar types of properties (equivalent # of beds/baths, amenities, pets yes/no, etc.). Put these on your watch list.... how long it is taking for them to rent out?



Best wishes!

@Aaliyah Iman thanks for the question!  My podcast actually is more geared towards people who work in Tech.  

BUT -- the group I mentioned is part of the InvestHER community.   The founders of that community have a podcast focused on women who want to invest in real estate as well as local Meetups across the US.   A good place to start and get connected both in Florida, online and in Arizona is on the facebook page -  InvestHer Community

https://www.facebook.com/groups/Investhercommunity/

Thanks for sharing!  We are in hotels too but more in the limited service versus extended stay.   Sounds you did a great job with the deal structure.   I'm curious if this is a flag or independent?  

@Wes Blackwell, great thought-provoking post!

My husband and I own and syndicate hotels here locally and keep a close watch on all regulation and proposals.    Our hotels are in the limited service space focused on the business traveler.   No resort fees, no charging for parking or no costs for amenities that business travelers require like wifi.    We are in the convenience space and I see STRs (at least in Scottsdale) as being in the experience space.  

I've been leading a local meetup for women investors and I host a weekly podcast.... I've noticed that most of the new investors I meet are interested in STRs versus other niches like wholesaling and fix/flipping. My episodes focused on STR have been some of the most popular.

I wonder if there's too much hype and perception that STRs are "easy money"? And, will the newer investor buying their first STR have more exposure with higher home prices (which don't pencil out for LTR) less marketing longevity on STR platforms & social media accounts and potential regulation changes?

Investment Info:

Other commercial investment investment.

Contributors:
Mike Stohler

Another hotel!! 64 room upper-midscale branded hotel near several economic drivers in the metro Phoenix area. This project included syndication through a 506c offering for accredited investors.

What made you interested in investing in this type of deal?

We transitioned into hotels a few years ago and really enjoy this business. We were looking to add another hotel to our portfolio and offered this project through syndication.

How did you find this deal and how did you negotiate it?

Through our network of folks in the hotel industry. Negotiations included calculating costs of capital improvements and leveraging revenue actuals which were down due to partial construction and flag transition.

How did you finance this deal?

SBA Loan and Private Investment

This is a syndicated investment with an experienced hotel operator and seasoned investment team.  

64-room upper mid-scale hotel in Chandler, Arizona, purchase price of $5.225 MM.

10.79% purchase cap rate

Targeted net investor IRR of 16.26%

Investment hold period: 7-10 years

Up to $2.3 MM equity raise

$4,461,864 MM in senior debt  

Minimum investment amount: $100,000

Located in the heart of the business district and right off of I-10 and the $1.7 billion South Mountain Freeway expansion. Chandler is the high-tech oasis of The Silicon Desert located in the southeastern part of the Phoenix metropolitan area and is one of the fastest-growing urban centers in the nation.

Contact: [email protected]

More Information

@Shiloh Lundahl, I think we've traded a few emails early in the morning!

@Danielle Wolter, we could have our own chat session at 3am!  I'm West coast too and up at that time.

I read Miracle Morning as well and agree with others that it's more about establishing good productivity habits.  I'm in Tech so I love systems and processes.  Creating an early morning productivity process has worked for me ever since college.    I think it's mostly about the lack of distractions at that time in the morning.

I don't follow the book's recommended steps.   My own process is to work on my podcast early in the morning, work out and take my dogs for a walk...

Thanks @Dave Van Horn for tagging me!  I'm traveling and unable to join this year.  I look forward to hearing how it goes!

I'll chime in here because my .02 is that the best of both worlds is to love your W-2 job and then.... your spouse works on your real estate investment business full time.     That's how we roll :) 

@Cynthia Oistad, you've started a great thread! We got started in multi-family (4 plex) then moved to small multi-family complexes (28-50 units) , then added a SFH portfolio and we have also have an 81 room hotel. Why so many different niches?

1) Because we self-manage in our local market of Phoenix, Arizona and as the market changed we've changed our strategy. There's so many things we loved about multi-family complexes until.... people went crazy and were willing to buy at 5-6% CAP rates in Phoenix. Those low amounts don't fit our criteria for a good investment.

2) We like the idea of multiple layers of diversification not just in the type of real estate but also in our overall investment portfolio (index funds, note funds, private business, etc.) 

3) Our SFH portfolio has been by far our most profitable cash on cash annual return along with very stable residents.  This is also another factor of the local market because rental housing inventory is low and rents are high right now.   

4) Because the economy is performing well and people have confidence in their financial futures, travel and tourism continues to thrive and thus our hotel.

At any time, our local market can and will change and then we'll adjust our strategy for any new purchases based on the current dynamics.

Hope this helps.... it's definitely a "it depends" kind of answer :)