All Forum Posts by: Brett Deas

Not a podcast but a book, I would take a look at "Pitch Anything", and " Raising Capital for real estate". I think those are really informative on how to ask for OPM and the second book gives a good basic understanding of the different structures you can use and teaches you the basics. 

Most times the docs will say that GP's or sponsors get the first right of refusal for any share selling. Then often times it goes out to the other LP's before you can try and sell your ownership to an outside party. This is the way I do my deals and how I see most other people do it as well, so I would check your deal documents first. 

It is not the licensing that Investors are worried about, its the politics. With the bills going through the state legislatures, I am worried about being a land lord in Denver. With the looming possibility of rent control, the free representation tax, and the possibility of being forced to pay 3-months rent to a tenant you want to raise rent on, it is just getting more and more insane. 

I will speak from my experience. 

The price is whatever is normal for your market, try looking on Furnished Finders for your property type in the are and go 200 bucks lower than what you see listed. 200 lower is an arbitrary amount but remember you are seeing what is for rent not what is currently rented, so to get it filled quicker I drop the price then gradually raise it throughout later stays. 

As far as location goes it depends on the property. If you have something smaller like a 2/2 or 1/1 yes close to hospitals are good. You will attract alot of travelers with that size. However if you have bigger properties like 3/2 or something try to go in between hospitals and amenities. I am lucky that all 3 of my MTR's are in downtown Denver so they are really close to 5+ major hospitals but are also extremely close to all the amenities the city has. 

Investment Info:

Other commercial investment investment.

Purchase price: $1,130,000
Cash invested: $400,000

Contributors:
Amanda Myers, Mike Sebastian

My company (3 Servants Investing) just syndicated a current hospitality rental business out in Ohio. There are 3 rental cabins on 12 acres. We are renovating the cabins and are developing a floating A-frame complex on the back 8 acres along with other unique amenities.

What made you interested in investing in this type of deal?

It was just right for our buy box. We had a mom&pop that was underperforming and were able to lock it up significantly under ask with a clear path to profitability.

How did you find this deal and how did you negotiate it?

It was publicly listed.

How did you finance this deal?

We syndicated it using Limited partner equity and a hard money loan on a 1 year term.

How did you add value to the deal?

We are renovating the existing cabins along with the A-frame development.

Alot of people out there are also saying "you can't overleverage real estate" that is also simply not true. However it takes take risk to get rich quick so... 

There are probably facebook groups in your area as well that run meetups. I find quite a bit via FB. 

well for the first issue of financing, have you discussed a possibility of seller financing the portfolio? I find, often times with the older generation, it is a very viable option specially when they are just wanting the income that the properties provide but don't want to handle them anymore. 

And as far as value goes, you could just go walk each property individually and come up with a value then add them all together. Or you could do a commercial value and go-off of cap rates, especially if you will get a loan you will have to go off of cap rates. 

The one issue I would say could be #1.

People could view and STR as a business or commercial use and not residential.

Get a job. People always talk about how you can invest with no money down or do subject-to with only a few thousand but if you really want to be successful investing you need money. Not only to buy your rentals but also to live on. Trying to go from 0-5 rentals without any other income is what I would say is impossible.