All Forum Posts by: Sean Bramble

 Here is one of those that grossed $170k last year in Western NC

https://abnb.me/tTR8I1oLkwb

Though it might actually be a hexagon, can’t tell :)

Quote from @Karen Margrave:

Quote from @Sean Bramble:

@Bruce Woodruff makes sense. It sounds like what you’re saying is “why pay today’s materials & labor prices for a foundation, septic, and other noncosmetic aspects of a home when you can buy an existing home at a discount and just change the finishes?” Is that right?

one thing I’m trying to think through is exactly what it is I’m trying to create…

Is it "home" that performs well as an STR?

Or is it more of a “horizontal hotel” composed of multiple standalone junior suites (I hate the term “tiny home”, but you get what I mean - small space designed for a couple, etc)

If it’s a home, I see your point .. and I should probably consider a flip as a solution.

But if it’s more of a “horizontal hotel” I really see the value in building bc of the creative freedom you get. Here’s an example of the type of structure that could work in a horizontal hotel model (this is also why I mentioned cap rates and commercial zoning)

Either way, I really appreciate you weighing in - definitely got me thinking

Though that's a really cool looking concept house, imagine the parking, driveways, septic, utility lines, water lines, etc. that are needed to actually service such a structure. Where would they eat?  Then the structural engineering, any requirements such as solar, fire sprinklers, that is required  per code, and possibly  earthquake standards, (depending on location), and all the sudden that circular tiny home is a million dollar project. 

Yeah, would definitely have be a part of a larger development with multiple units and the infrastructure to support it. These sorts of developments are popping up all around the US, though. Might be a "step 2" for me as I only have enough capital for a smaller "proof of concept" ... or maybe there's a way to build a development like this in phases ... decisions decisions. Definitely looking at some long timelines either way if I build.

Alex Jarbo's course ("Build, Don't Buy") is $1K and was started in the last few months. He's a writer for BP and STR developer in Western NC. Seems like his course focuses more on a standardized evergreen curriculum he created, with a light touch on coaching (monthly group q&a calls + he is available to answer questions over email). His experience started with a single small A-frame build, and he has since been scaling to larger developments with multiple properties using OPM. My guess is his emphasis is more on developing a "proof of concept" that you can then use to attract investment for larger developments with multiple properties (assuming you're not starting with millions to spend).

Kai Andrew's ("Land Hacker") is $4K - includes an evergreen style curriculum focused on developing multiple STRs on a single piece of land, and also seems a bit more hands-on with weekly group coaching and q&a calls. He started on the West Coast (Oregon, I believe), and has both purchased and built STRs. Seems like he's scaling to other states now, and is considering more elaborate builds. His marketing funnel is his Youtube channel (he has a ton of subscribers, and is clearly monetizing his audience this way). My understanding is that there are a few hundred students, so you also get access to that network (though it's unclear what % of those folks are actually taking action, or building elaborate multi-unit properties instead of just an ADU in their backyard). I like the idea of airdropping in to a network of people doing similar things w/ STR development and reimagining what the next generation of hospitality assets can look like, but you could obviously find those folks on your own for free just by browsing Airbnb and contacting them.

I'm interested in building a hospitality business that will grow and evolve over time, so I'm not against paying for this kind of stuff if it will actually be valuable in shortcutting the process and helping avoid pitfalls others have encountered ... might start w/ Jarbo's course given his experience w/ scaling / fundraising ... and the lower pricetag.

Lots of conflicting opinions in here … question for all of you: what drives your decision to build vs buy, or vice versa? What has to be true for building to make sense?

@Bruce Woodruff makes sense. It sounds like what you’re saying is “why pay today’s materials & labor prices for a foundation, septic, and other noncosmetic aspects of a home when you can buy an existing home at a discount and just change the finishes?” Is that right?

one thing I’m trying to think through is exactly what it is I’m trying to create…

Is it "home" that performs well as an STR?

Or is it more of a “horizontal hotel” composed of multiple standalone junior suites (I hate the term “tiny home”, but you get what I mean - small space designed for a couple, etc)

If it’s a home, I see your point .. and I should probably consider a flip as a solution.

But if it’s more of a “horizontal hotel” I really see the value in building bc of the creative freedom you get. Here’s an example of the type of structure that could work in a horizontal hotel model (this is also why I mentioned cap rates and commercial zoning)

Either way, I really appreciate you weighing in - definitely got me thinking

Couple of reasons:

1) My interest hinges on the assumption that starting with a blank canvas and creating the perfect consumer product can optimize your revenue per square foot in a way that offsets high building costs. If you do enough research across markets you'll see that certain property features drive more revenue than "average" homes in those same areas (all else equal), so starting from scratch allows you to reverse engineer and "stack" all of those features while minimizing other costs/ unnecessary square footage. 

2) I like the idea of building w/ commercial zoning and having the property valued based on cap rate instead of comps. This opens up the possibility of building unique structures that wouldn't make sense w/ residential appraisals/ lenders. Also opens up markets that have significantly regulated residentially zoned STRs.

3) Forced equity (though you can achieve this w/ flips as well)

...What do you think? Would love to hear a bit more about your perspective, and to challenge my thinking a bit!

I'm interested in education/ coaching programs that focus on ground up construction for short term rentals. Here are the courses I'm aware of:

- Kai Andrew's "Land Hacker" program

- Alex Jarbo's "Build Don't Buy Short Term Rental Development" program

Are there any other courses I should consider (STR-specific, or general)? Would also love to connect if any of you are building STRs yourself!

I'm interested in education/ coaching programs that focus on ground up construction for short term rentals. Here are the courses I'm aware of:

- Kai Andrew's "Land Hacker" program

- Alex Jarbo's "Build Don't Buy Short Term Rental Development" program

Are there any other courses I should consider? Would also love to connect if any of you are building STRs yourself!

Yep. In general you want to structure your balloons in a way that ensures you have enough equity at the payout date that you can refi without having to come out of pocket. Some add a clause that says the house has to appraise for x at the time of the balloon, else it extends by x years.

Another objective would be to make sure you’re still cash flowing after you refi, and I’ve heard of other clauses that say mortgage rates have to be below x for the balloon payment to be paid.

@Adrian Miller thanks for weighing in! Could you compare and contrast Pace's mentorship to some of the other less valuable ones you've been a part of? What's the difference?