All Forum Posts by: Peter Bras

Thanks everyone.  I am going to take a look at a few of the suggestions.  I am learning that I may be a number nerd on this one.  I just like predicting the numbers and making sure I am ahead of them.  

Is anyone using a good inventory management system to track supplies in your STR? Admittedly I am a tracker and love to analyze mundane things like burn down rates to predict when I need to bring more supplies to the property. I currently use a spreadsheet with some formulas built in but would love to hear what everyone else might be using.

This is fantastic!  What a great time to lean into it.  I bet a lot of people would be attracted to the property just to stay with the "ghosts".  

I appreciate that @Grant Schroeder.  I know it's not the standard bottom line focus but I feel like I am defining value a little different these days.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $400,000
Cash invested: $150,000

Sunset Ridge is a prow style cabin in Lake Arrowhead Ca. I personally spent 2 years bringing this cabin from 1970 to 2023 remodeling the entire property. It is now a successful STR stoking my love for hospitality.

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

I wanted a property that was as beautiful as the view. This property has both an incredible view and the structure was something special. It needed all the systems and interior remodeled but the ceilings, beams and structure were solid.

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

Found this on the MLS with a great agent.

How did you finance this deal?

Traditional mortgage with cash invested from selling a few properties out of state.

How did you add value to the deal?

I spent 2 years rebuilding this property on the weekends. Part of my business model has been not just profit but an enjoyment for the work. I love solving problems and building so this was just what I needed.

What was the outcome?

A beautiful property that has been successful so far in its first year on the market.

Lessons learned? Challenges?

Make sure you understand the area you are buying in, the politics of that community and the weather impacting your property. STR properties have become touchy in many locations. I bought here because it is an established STR market with existing regulations. This does not eliminate risk of further regulation but it does lower the risk.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I had a great agent and a great mortgage broker.

Sorry Michael.  I think this thread shows that this can be a hot button issue to many folks.  While being a fun thought experiment, I agree that you could really limit your customer base.  Given your initial question, enjoy your day!

@Tanvir Sattar Thanks for the comment but in California they don't care what state the LLC is in. As long as I live here or make money in the state the Franchise Tax Board wants their $800 a year. It's an expensive state in but I'm in the Navy so I don't get much choice in the matter.

Jon Reed, Thanks for the reply.  I have been looking at a lot of different ways to structure this and lower my cost.  Ca is pretty expensive when it comes to LLCs.  After all the research, your advice still looks to be the right thing to do.  I appreciate the advice.

My wife and I have invested on our own for a long time and we are starting to look at bringing in some investors to partner on short-term rentals. I am setting up a business structure to allow other people to invest in real estate with me and am looking for some advice on how to structure this business. The over-arching concept is to have a LLC or similar that my wife and I own but would be able to partner with other investors on different properties under that LLC. This may look like individual partnership agreements for each property with the LLC acting as the property/asset management service. I want to be able to invest with one person on one property and another person on a different property in the most streamlined way possible. Does anyone have any ideas about how to set this up or things I should avoid? Thanks for the help everyone.

@Benjamin Manibog  I made a large sum of money on a condo I owned about 15 years ago now.  Being young and not really understanding that money didn't equal intelligence, I then gave a huge chunk of this money away to a few mentor programs like this.  I would warn you against any mentor program that costs this much money and uses pressure sales to get you to buy it.  Prior to the crash there were a ton of these and they all seemed to go away when the market crashed.  Go figure.  Going through several of these, I can tell you right now that the free info I learn on bigger pockets podcasts and website is worth so much more than I ever got from a paid mentor.  How many people on this website can attribute their wealth to one of these programs?