All Forum Posts by: Todd Goedeke

@Lauren Stark We are building STVR duplexes in Wis Dells.

I agree with zoning restrictions on where STVRs can be located. There are plenty areas where zoning allows for hospitality , STVRs, to be located in same areas as existing hotels/ motels. Full time residents don t need to be annoyed be constant parties.

@Lauren Stark I asked the question about restrictions for STRs because I found the restrictions to be a minor obstacle. 
What in your mind was a major deterrent?

@Jared Pinkus again I ask, what regulations are you referring to as being too stringent for STVRs?

@Jared Pinkus what are you seeing as too stringent regulations for STVRs in Dells? You do realize there are many already operating there?

@Lauren Stark do you have any property listings in the Dells?

@Justin Brin who are you referring to as an “arbiter”? An arbiter settles differences. An arbitrager takes advantage of two different prices.

@James R.the market of Orlando is not indicative of all markets.
There are plenty markets where marketing can make a difference in the STVR business.

@Mike H.check out triple net leasing as to the mechanics of why almost 100% of hospitality and commercial properties are triple net leased.

The main reason people NNN lease their property/s to businesses is because they want to own passive investments not actively manage another business.

Very few if any investors manage the Hilton hotel property they own. 
Successful hotel/STVR managers don t own hospitality properties because the ConC return is far less when owning a property vs NNN leasing the property within which or on which the business resides.

By investing $25-$30k in furnishings on a property worth $250k, a management company can make a 100-150% ConC return. A passive investor can make a 15%+ per year tax free. That’s far better than they can make in the volatile stock market  annualized year after year in cash flow alone.

@Justin Brin what’s your understanding of arbitrage? I explained it to you in terms of triple net leasing. There is no reason to rent a property to someone vs lease long term. As a property owner you have considerably more safeguards in place with a triple net lease where a management company has skin in the game vs a simple rental agreement.

@JD Martin Passive investors don t want to manage hospitality properties. They don t want another business to take away from higher priorities of family and living life.

Most investors are happy getting a 15%+ cash on cash return that is tax free from a STVR without needing to actively manage the investment.