Home Team Vacation Rentals VR Reviews - Has anyone used them?

Question

Has anyone invested with Home Team Vacation Rentals in the past? I had a intro call with them on Friday and their business model sounds amazing, but maybe too amazing.  Looking to get insight.

Josh Havekost · Answer

I forgot to mention, it's meant to be turnkey so they manage it, and their split is 10% of gross income before all costs and debt service etc.

But now I feel a little stuck because this experience hasn't been good and I'm stuck in a partnership I'm not comfortable with.

Josh Havekost · Answer

The idea was if you have 200k you can get one of the properties like Michael shows on his Instagram and target 20-25% cash on cash returns. The idea is by spending big on amenities, you'll outperform other properties.

I had about 200k cash to invest, so I got on a call. There was an additional 20k fee for them to source you properties that would fit their model. I was excited to get started so I figured I would try to stretch and make that work.

They said their design fee was $18/SQ ft. And the budget was 15k/bedroom for furnishings. I recall asking if the 18/SQ ft was part of that 200k investment - the response was "Oh, you'll see all the costs broken out. It's all super transparent. And we'll send you a sample property so you can see the numbers breakdown."

They sent me a sample property breakdown, but it was a jpeg, not an Excel file. I was excited so I sent them 20k to get started.

First property comes over and I realize there is a second tab- one has the design fee, one doesn't. This is not an insignificant fee- we are talking $54k on 3000sq ft house. I say woah woah woah- I told you guys I only had 200k, this is putting me at like 270k invested with the 20k finders fee and design fees. No problem, we'll look for smaller, cheaper houses.

Then all the number breakdowns were based on 10% down payment using 2nd home loans. I spoke with two lenders who they suggested and the lender I normally work with and I could not qualify with my primary home and rentals. So I would have to do 20% down Dscr loan, pushing us again out of the budget.

At this point, they'd only sent me 3 properties and I realized it might not work so I requested we stop and honestly thought it would be a really reasonable request to return the 20k deposit/finders fee.

But they're not willing to return it.

Brandon S. · Answer

Thanks for the info @Josh Havekost! What do you mean by the additional $18/sq design fee was not included?  They never brought this up in the beginning?

Josh Havekost · Answer

I am in the middle of a dispute with them right now. I watched Michael's content for a couple years was eager to get into the turn key program.

i gave them 20k to get started and then I had to stop the program after a just a couple property options were sent over.  I couldn't do a second home loan they were penciling (other rental affecting DTI) and I didn't understand their $18/SQ ft design fee was in ADDITION to the 200k investment we had discussed. I had been really clear about exactly how much money I had up front.

I asked for my 20k back immediately after realizing that because I just didn't have the capital for it right now. I thought that would be a very reasonable request, but a month later they are still not willing to return that deposit.

Really surprised me, seemed like reasonable people. Unfortunately they're saying my contracts the contract, but I am getting a little concerned that I just lost $20k.

Sarah Kensinger · Answer

This company is completely on the up and up and is NOT a guru run operation! I'm again reminded at how small the STR world is on this forum. There really is whole STR world outside Biggerpockets!

Michael Elefante started this company to help busy investors with his business partner Eric Calwell. If you are a busy W-2 employee or running a company, Home Team Vacation Rentals can take care of all the nuts and bults of purchasing, setting up, and managing a STR. While the homeowner gets to take the revenue and real estate tax benefits. If this sounds like something that fits you, go for it and make sure to get a property somewhere you can enjoy as well!

Sarah Kensinger · Answer

No, we do our own and help other investors as well. But have known of Michael for years and watched him grow his companies.

Brandon S. · Answer

Thank you @Sarah Kensinger! Have you used them in the past?

Sunil Ghosal · Answer

I believe this is a Guru run operation. My limited experience with the Gurus is that are very rarely price competitive and target newer buyers. Your experience may vary.