All Forum Posts by: Zachary Beach

@Sebastian Marroquin people don't only sell bad investments. I'm in escrow currently selling a single family home in Southern California that after management is a 10 cap rate. In an appreciating market I believe in. I'm selling because of the velocity of money. I have made over 300% on my money in 13 months after tax. If I leave the money in the property I could keep 30%+ IRR with 0% appreciation but I know I can get 100% plus if I move it. I'm also a full time active not passive investor so that changes things.

@Leon Lee

House rules being very clear and strict with high penalties that you can enforce easily is big. Also cameras to monitor all guest that come is also big. If twenty people show up but it’s a 6 guest rental I can get them kicked out and pay me 1,400 dollars plus any damages including missed revenue if I couldn’t rent it because of damages. Problem guest read rules haha and if you have no fees then they book your place not mine. I’m not exaggerating we have had 10% as many problem guests with our rule changes and 0% less revenue. We haven’t had a party party in over 500 plus bookings. we allow 1 night stays and 18 and up to book.

Also apparently I can’t rent most the people on this threads places as I’m not 25 yet haha.

@Maureen Santibañez

0$ down at start including reserves on a halfway decent place has roughly the same odds as the amount down. Getting a private money loan, Seller financing, maybe a military loan or someone gifting you the property are about the only options. Even gifting you would have a gift tax so you could argue it’s not no money. Seller financing and private money loans are possible but unlikely without experience or a good family/friend connection.

My advice is figure out how to add a ton of value and focus on giving others wins.

@James G.

I’m going to be a bit harsh here. I thought I was going to say your agent was really unethical from the first part but honestly after ready what you said it sounds like (no offense) that he is a closer and you are not. You didn’t move on the deal given plenty of time and with warning from him that he had another buyer lined up if you didn’t jump. Did you want him to do nothing and lose the deal HE FOUND and you didn’t act on? If I was him to probably would have handed it a bit differently but it seems you had warning from him and choose to not act if you had asked him to write an offer or negotiate on your behalf it would be completely different and he would be very much in the wrong.

My advice would be to jump you can’t wait for weeks to get great deals even if it is the holiday season.

@Liam Martin

It depends when do you want to be able to have financing freedom. I have 0$ in 401k's I had a vanguard but it was pathetic. I'm also 24 and will be financially free at 25. I'm not going to retire because I have taken a few months off at a time a few times already and it gets boring fast and I like working on my REI and STR management businesses. For me 401k has no realistic point it's returns are very low compared to active real estate invest unless you do individual stocks and are good at it and even then your better off with it not in 401k so that it can be used. Our generation isn't getting into 401k before we are 70 without penalty haha.

A 401K is most good for a company match. If your company does a match get the most you can and then cash it out. There are some exceptions

In your situation I would not rule out cashing out 401k if you have something with more than 20% higher return like house hack or brrrr already lined up. 401K loan is also a good option if you want to keep your 401k going forward.

@Steven Birch

Something to keep in mind with rules like 2% rule. Interest rates and bonds  were double digits not 2-4% or .5 like now. Why invest in a house that’s not 2% rule if you can get a government bond or 10% and your loan is 15%. It’s also where the idea that paying off your mortgage was a good idea because it was  guaranteed 15% return.

People now think 2% rule

Bonds are good investments

Pay off your mortgage

Those things where somewhat true but have long since become as outdated as riding a horse to work.

@Ronnie North

Create/learn rare and valuable skills.

@Eric Canning

To be honest review or not to review isn’t the real problem here.

The problem is in my option your systems and house rules. It's your first booking and my guess is you have no previous experience so it's expected but I suggest getting your ship in order or don't do it. STR is a business that requires skill and systems.

Everything you stated is avoidable 99% of the time and chargeable if it’s not avoidable.

@Jalen Chanthaboury

Odds of pennies on the dollar widespread is lower than the odds of getting stuck by lightning. Double digit drop in majority of markets is in my opinion also highly unlikely. I think double digit increase is more likely than decrease in my market.

I don’t think anyone claiming a crash is coming can fathom the amount of money pumped in the economy right now. The money supply is around 20% more than last year.

@Alexander Szikla

I would disagree with LTR tenets having more of an owners mentality than STR's. My experience is 90% of our guests have owners  mentality and in fact owner there own home and treat your home like they would theirs, really better probably. Plus the properties gets cleaned multiple times a week and we can maintain it at the highest level. We have hosted thousands of guests and have never come out of pocket for damages. Not saying we haven't have complicated guests or damage but we have stellar systems for managing that.