All Forum Posts by: Tyler Fontaine

Good question here.

#1 - The municipality you are buying in must allow STR's. Make sure they aren't trying to regulate this arbitrage.

#2 - The numbers must work as a LTR. If somethings and you no longer can/want to manage a STR, it must be viable to run as a HOLD.

#3 - Ensure the property can be STR'd. After checking if your municipality allows it - be sure there is no HOA/Condo Assoc/or other gate keepers that could stop you.

#4 - Ensure it's a STR area. Something that will drive the demand for this type of arbitrage. Local colleges, tourist attractions, a view, direct access to things like major hospitals/venues/event spaces that are active.

There will be trouble in the waters for STR's in the near future. However, I think it can be mitigated if people become more involved in their communites.

Go to you city council meetings, town council, what ever - and speak your mind on these issues. Come correct to these with data. Get the numbers as to how many STR's are in your area. Find out the majority of the demographic using them. Generally these properties service people who are visiting family for major life milestones, they are coming back to a place they used to live in and enjoy it again, or they are there for play and are contributing to the local economy.

Bringing these points up can really help you with swaying the decision makers\

 Seller financing, sub-to, using a business line of credit as a down payment on conventional note, partnering with other parties who bring the cash.

 Yea im with Mike here. Thats gunna be the way to go. Look for a partner who has the experience and will look good on paper. Then start looking for new con loans from local places, private capital, or hard money.

Id try to negotiate paying off the liens as my downpayment then. Try to structure it so you payment stays similar to what was already agreed but the owner gets less cash up front as youd have to pay the liens off first.

Just an update. We had some templates. Got our attorney to review it and finalize one for us :)

Now the real work actually begins. You’ll use about 10 pieces of the information you just consumed for that…

I’d recommend looking up the top brokerages in terms of sales volumes/total transactions in your area and go from there.

See if you can get interviews with them or ask for their recommendations. 

Investor fuse, batch leads, monday.com can do it with the right plug ins. 

Glad you're jumping into it. Buying my first multi was one of the best decisions i've ever made. 

Respectfully if you can get the accurate ARV then your deal analysis isn't as bullet proof as it seems. A good place to get accurate ones is through a relator with the MLS, using propstream to check comps, or something like that. Once you have a good understanding of how to attain ARV you will be in much better shape.

Always be looking for comps with properties that are the same style house, similar bed count, within -10%/+10% of total sqrft age, and then ensure the quality of the property is taken into account.

Also, when analyzing deals be sure to include holding costs, money costs, taxes, selling costs, and so forth.

For finding deals - definitely go out to all the showings you can for off market deals. You can also hand write letters to addresses you drive by that seem distressed. You can find the owners contact info through public record then get their contact through propstream or batch leads.

Funding deals. Your best bet will be to go to you local real estate meet ups and ask around who the hard$/private money lenders. Also, google hard money lenders, start calling and see what they can take.

You came to the right place. Welcome to BP. There will be a ton of people you will find here that will be great contacts. That networking button at the top is a good tool to try and connect with people in your area and out of it. :)