Unbiased Advice from Successful Investors Please
I’m a small time investor, have been a landlord for my 4 units for the last 8 years and I’m also an entrepreneur. I’m reaching out to BP’ers who have a lot more experience than I and can offer some sound unbiased advice for a project I’m looking into.
I’m in the process of transitioning a few of my units into short term rentals to learn the industry. Concurrently, I’m preparing myself to start a small vacation rental business. It’s my idea to purchase a distressed property (cabin) on a larger piece of land in a high tourist mountain area in California. I would like to rehab the existing cabin, in addition add a few tiny homes or yurts and to rent all out on all the short term vacation rental platforms, as well as develop a website to further market the vacation homes.
Please BP’ers…. tear this plan to pieces if you can.
I need advice specifically on two things… First, if an experienced investor was interested in this type of business how might they decide to go about acquiring the property? I’m interested in purchasing something distressed so that I can keep my cost down, rehab it, add value, giving me an exit strategy need be. I’m not sure the best and most time effective way to acquire it. Second… how would one, such as myself, who has never done a deal before, approach funding for a project that I haven’t really seen or heard of before. I’m not rehabbing and selling, this is going to be a business. I am wondering how to approach investors in a way where I can show that we all win. What do investors want to see? Especially when involving a few pieces that don’t appreciate or possibly even hold value. I’m not sure conventional funding will be an option at first (though I would love if it was) so I’m looking into private funds for the first time.
I have faith in the model. I am a buy and hold girl and the short term model, despite the additional expenses, is a way to maximize dollars per day. I have a team of people who are motivating me along the way but I am the one taking the financial risk and pulling the trigger because that’s just my personality. Any input would be greatly appreciated.