I knew that we were going to have a lot of back and forth, and that there would likely be a problem at some point that we would need to solve together.I needed to have confidence that whoever I signed an LOI with wasn’t going to back out at the last minute for a silly reason.

I currently own a successful short-term rental in Fort Lauderdale and have identified a new property nearby that I’m confident will perform well.

You have to have confidence and the Sponsor needs to build a relationship with you if he wants to be sure you have some insights into the risks of the types of deals you would be funding. 

@Josh H. it sounds like you have experience, you know your numbers, and have confidence. 

It’s a tough decision, but after comparing Hospitable side by side with other PMSs, I can confidently say it offers more options for most users.

The lessons you learned the hard way in 2008 will be invaluable now, and it’s great that you’re aiming to stay small-scale and within your comfort zone of Sacramento, which gives you an advantage of knowledge in that market.Given your experience, I'd say start by focusing on three key areas to build confidence and minimize risks:Budget Control: Over-renovating was one of the big mistakes you mentioned.

Options like a unique amortization schedule or a 3/2/1 or 2/1 stepdown interest rate could provide initial relief to get you through the renovation phase while giving the seller confidence in a structured payoff plan.To determine an entry point, consider reducing the price based on the current NOI.

Just ensure the agreement is clear and formalized.Pooling reserves across properties might make sense if you’re confident in your cash flow and other contingencies.

Everytime i engage in a product its more unexpected money being required and I just do not like that.Good information.

But who has the confidence to go really big on their first deal?