Updated about 2 years ago on . Most recent reply
Business Model for STRs
Hi,
I'm considering launching a STR investment business and I am hoping for some feedback.
This is the gist of the model:
- I help people identify and purchase a good STR home that can double as both their vacation home and an investment property.
- They finance 100% of the purchase.
- I manage the property as a STR.
- I am a 10% equity partner.
- My property management fee is 5% of NOI.
Background: I currently own and manage five STR properties, one of which I own with partners and the agreement is set up similar to what I've described above. Now I'm looking to scale those types of deals.
QUESTIONS:
How would you structure my exit clause?
Do you see this as a fair agreement?
Overall thoughts?