All Forum Posts by: Zachary Beach

@Nathan G. This is why I only do STR's in California don't let people get any extra rights on your properties. It is something to think about going forward when looking at where and what type of deals you want to do.

@John D. I categorize the price you buy below current market value, market appreciation, forced appreciation, and cashflow all as different ways to make profit in real estate and I probably didn’t explain my statement to well as I have personally makes hundreds of thousands from each of the four things I stated in the last couple years. My real point is that not getting a price supper far below market value and missing out on all the other ways that real estate makes money isn’t something I would recommend. I do recommend getting real estate that makes you money no matter what way the market goes.

@Damon Cameron Jr

1 created and or learn rare and valuable skills. Also part of this is creating or finding an edge or a few edges. One edge that my wife and I have is that we can makes 3+ times the revenue of an average STR in our market. Another is being able to created designs for properties that are both cost effective but also maximize the desirability and profit of a property.

2 figure out how to make the pie bigger not how to get a bigger piece of the pie. So many people see the economy as a zero sum game that if they get it’s taking from another. That’s is a false view and harmful. When I renovate a home and now it is more beautiful safe and functional I added something real to the economy.

3 love giving other people crazy good deals focus on creating so much value that if only ten percent found its way back to you, you would still be making a lot. I’m not saying don’t negotiate on your behalf and get paid adequately for your work but I am saying make the value come first and be ok with sharing generously of the fruits of that with others that have helped make it possible for you to add that value.

4 be consistent. May small steps will get you much farther than a few big ones.

5 be purposeful and have  strategy and direction. Many steps don’t get you to your destinations if they are not in the correct direction.

6 learn learn learn and throw away your ideas about how the world works many are wrong and all of them are incomplete. Learn how the world really works, how money work how people work how business and the economy work how real estate works how investments work. And most importantly learn what your purpose in life is (hint it’s to love and be loved but there is much more to it)

@Michael Metzger my theory with my market was that if there was a recession people would go to big bear rather than flying to Hawaii. Not the way I expected to be correct but that’s exactly what has happened with People not wanting to fly are prices are up 63% on the property I manage and we already had top properties with great cashflow before that.

@Luke Carl I’m with Luke no discount we get our places booked and guests that ask for discount are more likely to be problem guests.

@Asiel Zermeno try California I'm making crazy good returns both cashflow and appreciation in California STR's. The grass is not always greener.

@Nadia O. I agree with John with STR's it's a lot more about how much it cash flows at the price you are buying at then the 20% chance you could buy it for5% less in 2 years. With properties I have in Big Bear if you could buy 25% down with 4% interest rate at market value and if the market valued the properties dropped 5% and rents dropped 20% you would still makes 48% return on investments in two years. If it went up 5% and rents stayed the same the return would be over 120% in two years. You makes money in real estate by adding value not buying low

@Leon Lee we don’t allow guests to stay that long. Plus we charge enough that it’s unlikely anyone would ever book is for that long. No one wants to pay enough for a down payment on a property to stay there for a month haha. We gross about 3-8 times the LTR’s that the properties would get depending on the time of year.

@Eric Baron I don’t know your market but in my market 50th percentile are luck to break even if they have any meaningful leverage on the property. 90th percentile makes more cashflow profit than 50th percentile revenues. The property I run (I own a few and also manage for others) are all over 90th percentile monthly and have crazy good cashflow.

@Michael Encoy I have properties in Big Bear and my ROI is insanely good as are the people we manage for that have just bought places. Someone mentioned it's not a good ROI up here but with good management it most certainly is rents are up more than housing prices this year even with the massive price appreciation. My properties rents are up 63% and we already had top properties in there comp classes and great cashflow. My wife and I have two properties that cashflow more than our yearly cost of living each!