STR syndications....who's doing them?

[Bruce Lynn]

Just saw a pitch by Rogers Capital raising money for STR portfolio. Plan is to roll it up to institutional investor.

I've also seen Key City Capital doing this.   One of the comments was that no one else is doing this.   Rogers is now on a second fund.

Have you seen any other groups raising money for pools of STR? Anyone here invested with them or Key City? I guess Vacasa did this too, but went public. Vacasa went from $200 share to about $9 something. They've pretty much done nothing but loose money....they've cut the loses, but appear to still be loosing money. Not sure if Vacasa owned STR or just managed?

Are they late to the game? Has that ship sailed? or are they on to the cutting edge, corporate managing the STR experience. What are your thoughts?

[Greg Scott]

I believe a good operator can make money in any real estate category in any market cycle. That said STR appears to be under some stress. I have no STR holdings myself but know several people that have been in STR for a while and they are saying "things have changed."

For example, a guy I spoke with this weekend has large STR house on the Gulf of Mexico. He's had it for 4 years. He said the first three years were fantastic. Now, he is just covering his costs.

I still believe there are great operators that can probably make good money in this space, but I would be concerned about someone who shifted from owning to syndicating.  Are they just trying to live off the syndication fees?  I'd want to check the PPM carefully and make sure they have a ton of skin in the game and the fees are not significant.