Listed my STR. Overwhelmed with financial requests

Investor · VA AZ, SC · Member since 2017 · 172 posts · 172 votes

1y

That is crazy. Your revenue is 10% of the asking price which is the average. They shouldn’t need anything extra. They can verify via Airdna or other tools. Serious investors know this.

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

1y

LOL Facebook = million tire kickers with no money.. just curious about your backend financials I would personally never send any info to anyone who contacted me on facebook.. but i am old school.

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Matthew Paul

Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes

1y

Facebook .......... " Is this still available ? "

3 Reply

Ken Boone

Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes

1y

Yea I think the contacts you get from Facebook are the ones who want a "deal" and when they find out you are market price they move on.

2 Reply

Michael BaumPro Member

Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes

1y

Hey @Mindy Nicol, yeah the others hit the nail on the head.

FB marketplace is a big crazy place with TONS of looky loo's.

I also think you are overthinking and taking things a bit personally. If I am looking at a operating STR, I know where to make changes and opportunities. I wouldn't be looking at it if I couldn't make an improvement. You never know if those asking are experienced so they might not ask. Of course even if I did want to get some ideas, I wouldn't be asking on my first contact. I would wait until further down the line.

Frankly, you should just post and provide all you can and not worry about what others need to do or how they can run it or the context. That is on them to figure it out.

Are you listed on the MLS with an agent as well? How does your price look vs comps? Are you asking a STR "premium" for the property?

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Mindy Nicol

OP

Realtor · St Augustine, FL · Member since 2023 · 111 posts · 87 votes

1y

Quote from @Michael Baum:

Hey @Mindy Nicol, yeah the others hit the nail on the head.

FB marketplace is a big crazy place with TONS of looky loo's.

I also think you are overthinking and taking things a bit personally. If I am looking at a operating STR, I know where to make changes and opportunities. I wouldn't be looking at it if I couldn't make an improvement. You never know if those asking are experienced so they might not ask. Of course even if I did want to get some ideas, I wouldn't be asking on my first contact. I would wait until further down the line.

Frankly, you should just post and provide all you can and not worry about what others need to do or how they can run it or the context. That is on them to figure it out.

Are you listed on the MLS with an agent as well? How does your price look vs comps? Are you asking a STR "premium" for the property?

Thanks for the response. To clarify I put the link on an STR Facebook page (not Marketplace). I am an agent and it is on the MLS. Based on our comps and some repairs I already know about I listed it with an initial price of $485k. It is 100 years old and not perfect, but has the charms of an old house that guests appreciate. As time passes I may have to drop it but there are similar (less cute) homes for less.

I also wonder if these people just want to compare my numbers with theirs and have no intention of buying. Or may just be nosey, or want to be hosts but have no money. I am going to refrain from sending out the financials unless people are serious buyers. Thanks for the response!

0 Reply

Michael BaumPro Member

Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes

1y

@Mindy Nicol, who knows. How many people show up at open houses and have no real interest in the place. Comparing it against their house, free cookies... :)

0 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

1y

Quote from @Jay Hinrichs:

LOL Facebook = million tire kickers with no money.. just curious about your backend financials I would personally never send any info to anyone who contacted me on facebook.. but i am old school.

This is exactly what's going on.

Ask them to send proof of funds or pre-approval letter first.

3 Reply

Robin SimonBusiness Member

Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes

1y

Quote from @Mindy Nicol:

Since posting my STR for sale on a STR Facebook page, I have been bombarded with requests for financials.

The financials are not bad: Asking price is $485K. The property produced $48K gross over the past year. I include the operating costs and a month by month gross/net, NOI, cap rate etc.

I'm just wondering why all the financial requests. I send them, and then get crickets.

Will these people work as hard as I did on the property to get bookings?

Do they think this will just happen on auto pilot and they can attain the same as me?

They don't ask about context of the bookings and the types of bookings I took (including one mid term tenant).

They don't ask about the POTENTIAL and where I see the opportunities? Or questions about the market, visitor stats, comp set?

Nobody is asking for a showing either. It's like the real estate (cute bungalow) and opportunity for growth doesn't matter.

Has anyone else experienced this? Why is the decision based solely on what the past owner did or didn't do? As a realtor, I review these financials all the time and I find them more misleading than helpful. There is always CONTEXT. Past financials is only one part of the picture. Don't we want to seek growth and create further opportunities for revenue as investors? Even if it was a low performer (which it isn't), isn't it part of the game to reimagine, see the potential and make it a success? That surely would be the upside.

I would love some perspective here. Thank you!

I think this is the gift and the curse of a still emerging asset class (short term rentals) - as it becomes more "institutional" i.e. more like commercial real estate with more sophisticated buyers then financials and systems for this will likely become more streamlined and stable, but we are still in a place where the buyer pools are more newish investors or typically residential basic investors, so not has experienced or sophisticated evaluating investments based on a detailed financial analysis like more seasoned commercial investors likely would.

anyways, just a guess on what might be going on here

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Patricia Andriolo-Bull

Member since 2022 · 527 posts · 413 votes

1y

Quote from @Mindy Nicol:

Quote from @Michael Baum:

Hey @Mindy Nicol, yeah the others hit the nail on the head.

FB marketplace is a big crazy place with TONS of looky loo's.

I also think you are overthinking and taking things a bit personally. If I am looking at a operating STR, I know where to make changes and opportunities. I wouldn't be looking at it if I couldn't make an improvement. You never know if those asking are experienced so they might not ask. Of course even if I did want to get some ideas, I wouldn't be asking on my first contact. I would wait until further down the line.

Frankly, you should just post and provide all you can and not worry about what others need to do or how they can run it or the context. That is on them to figure it out.

Are you listed on the MLS with an agent as well? How does your price look vs comps? Are you asking a STR "premium" for the property?

Thanks for the response. To clarify I put the link on an STR Facebook page (not Marketplace). I am an agent and it is on the MLS. Based on our comps and some repairs I already know about I listed it with an initial price of $485k. It is 100 years old and not perfect, but has the charms of an old house that guests appreciate. As time passes I may have to drop it but there are similar (less cute) homes for less.

I also wonder if these people just want to compare my numbers with theirs and have no intention of buying. Or may just be nosey, or want to be hosts but have no money. I am going to refrain from sending out the financials unless people are serious buyers. Thanks for the response!

"less cute homes for less". As an investor, I prefer the less cute homes for less. It is where I can spend the money to make it my own rather than taking a cuter home for more and still wanting to spend $$ to make it my own. By what you have said, it sounds like you are thinking about this place as an owner (emotionally) vs a realtor (sorry if I am reading into this, but your statements about charm etc.). I have a very recent example (closed on a place yesterday), owner wanted more for all the reasons you stated. A similar unit sold for less and he said that one was a full gut. In my opinion, both needed similar amounts of work to get the vacation rental ready, his just showed better and had some cute updates. Lastly, in your first post, you mention gross. I never look at gross. When you sent more financials to people, in today's market, perhaps they realized they couldn't cash flow? I have no idea what your other operating expenses are. Good luck to you but as you said, you may need to drop the price. No showings and no responses is a good indicator of this.

4 Reply

Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

1y

This is common. The quality of inquiries on facebook is ridiculously low because it's ridiculously easy. They have one beverage too many, get an idea in their head that they can fix their problems by purchasing a short-term rental, and all they have to do is click a button to ask their question.

I wouldn't bother sending financials to anyone until they show a pre-qual letter from a bank to demonstrate they are slightly serious.

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Don KonipolBusiness Member

Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes

1y

Quote from @Mindy Nicol:

Quote from @Michael Baum:

Hey @Mindy Nicol, yeah the others hit the nail on the head.

FB marketplace is a big crazy place with TONS of looky loo's.

I also think you are overthinking and taking things a bit personally. If I am looking at a operating STR, I know where to make changes and opportunities. I wouldn't be looking at it if I couldn't make an improvement. You never know if those asking are experienced so they might not ask. Of course even if I did want to get some ideas, I wouldn't be asking on my first contact. I would wait until further down the line.

Frankly, you should just post and provide all you can and not worry about what others need to do or how they can run it or the context. That is on them to figure it out.

Are you listed on the MLS with an agent as well? How does your price look vs comps? Are you asking a STR "premium" for the property?

Thanks for the response. To clarify I put the link on an STR Facebook page (not Marketplace). I am an agent and it is on the MLS. Based on our comps and some repairs I already know about I listed it with an initial price of $485k. It is 100 years old and not perfect, but has the charms of an old house that guests appreciate. As time passes I may have to drop it but there are similar (less cute) homes for less.

I also wonder if these people just want to compare my numbers with theirs and have no intention of buying. Or may just be nosey, or want to be hosts but have no money. I am going to refrain from sending out the financials unless people are serious buyers. Thanks for the response!

It’s similar to the “interest” of lookers when a property is on Zillow. My property for sale gets 100+ Zillow views daily. Probably 1 is actually interested. Looking at real estate for sale is a hobby for many people.

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

1y

Quote from @John Underwood:

Quote from @Jay Hinrichs:

LOL Facebook = million tire kickers with no money.. just curious about your backend financials I would personally never send any info to anyone who contacted me on facebook.. but i am old school.

This is exactly what's going on.

Ask them to send proof of funds or pre-approval letter first.

I dont know but for me if I am selling RE the only place I put it is on MLS and my Website. then MLS feeds to all the SM sites and agents can filter through the responses or if it my own property like here in Oregon with our subdivisions I handle the first calls and then qualify them once done and appointment set hand it off to the closer ( my wife ) If I get a ton of E mail request for info I just tell them they need to come and look first. If they wont look then its a waste of time all the basic info is on our website.. So this got me to thinking maybe folks should spend a few hundred bucks on a website and link to those then have the info you want to share on that website..I see websites for specific properties all the time.. its mainly high end but can be any kind this would cut down on traffic and all these requests..

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Chris SeveneyBusiness Member

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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes