All Forum Posts by: Shawn McCormick

@John Carr Many investors have moved away from the 'deposit' language and use a 'performance fee' instead. This helps eliminate the argument from tenants that they are due a deposit back, it is based on their performance of the terms of the lease. If they don't perform to the requirements stated in the lease, it is kept..period. From what I understand this strategy holds up well in court too. Please seek legal advice. I can provide a lawyer reference if you need.

Best of luck!

@Angelo Proto welcome to the forums and congrats on exploring REI.

I can't speak much on other markets, but Orlando is/has always been a top choice. It's a recognized destination globally with over 70M tourists a year. This area has been doing STR for decades before it was even a thing. We have a few dozen resort communities that are built specifically to be STR and you won't have to worry about zoning or regulations or even HOA cutting you out.

It is a very competitive market with so many units, so you do have to be a good operator and have a clean, attractive, well located and themed out home to stand out and perform well. 

Happy to dive deeper if you like. Reach out anytime.

Best of Luck!

 Yes, of course. There is a link to schedule a call in my profile. 

@Tonatiu Ortega I would be happy to have a look. I am local and could even view in person to get a real time experience if you like. 

What are your issues/concerns? Are you not getting booked, not getting the ADR you want, guest complaints?

@Jessica Taylor There is plenty of private money out there! The 'ole saying, if you have a great deal, the money will come' is actually real. I am a board member with CFRI, the local chapter for the national REIA and I personally know about a dozen private lenders that are members. If you come to meetings and network you can easily find it if you have a deal that the numbers work. There are also several hard money lenders as well as lenders that specialize in DSCR or Non QM loan products too.

Let me know if you'd like to attend a meeting, I can get you a guest pass. 

Best of luck

That sounds super sketchy!! Hard Pass even if it is real. Use that money to put down on a real piece of property that offers tax benefits, appreciation and less police traffic. There are a couple of builders selling new construction for under $300k. with 20% down and closing costs you could have a brand new HOME.

Best of luck

@Dylan Jameson Congrats on posting and finding a potential deal. I am a local Realtor in the Orlando area and could provide some insights into the value and appreciation potential. I would need to know the address to really dig into the details of the property and the comps. You can PM that to me if you like. 

I am also an investor that does flips, has rentals, lend my own money, has owned STR and have been a member of the local REIA for over 10 years, So hopefully my experience and network of other investors could prove useful in evaluating the potential of the property and possibly attract a partner if you need.

Happy to discuss further if you like, reach out anytime. 

Best of luck!

@Maria Moya This will be mandatory for every buyer to sign a Buyer/Broker agreement soon. It can be for one home or any home that they show you, but you will have to sign one regardless of who is helping you, even if you skip the buyers agent and go directly to the listing agent.

The purpose of this is transparency. The buyers agent will have you sign the form that clearly states what they require for commission. It can be any percentage or flat fee. So let's assume it is 3%. If the seller only offers 1% and you have signed the form stating you are willing to pay 3, then you will make up the difference (2%). There is a possibility that your buyers agent can negotiate the 2% in concessions from the seller and that would leave you without any obligation to pay them anything. 

Of course, whatever the form shows the buyers agent is asking for, that is still negotiable. Say it says 3%, but the seller won't pay any of it and you can only afford 2%. You can go back and renegotiate that or negotiate it right from the start, knowing you may not be able to afford 3. 

This is commonly practiced in many states and has been the norm for many years. But now it is national and every agent will be required to practice this for every buyer. Ultimately, the buyers agents Broker is the one that will have to approve and sign the form and to some extent, may be out of the agents control to negotiate too low.

I hope this helps clear it up a bit. 

@Maria Moya

Hi Maria. I am a local Realtor® in Orlando and work closely with builders in Orlando. This year I have already sold 6 new construction homes as a buyers representative. I would always advise this as the builder pays our commission in almost every case. 

One of the reasons you want to work with an agent is that the sales reps that sit in the model homes work for the builder, meaning they have allegiance to them. They are generally licensed, but not REALTORS®. A Realtor would work for you, help negotiate price and terms and know which builders are offering incentives to you, have a good reputation and will be your advocate during the entire process. You certainly 'can' work directly with the builder, but you will NOT save any money by doing so. You will NOT be able to absorb the builder's commission that they offer to an agent, they just retain that. Many builders are offering great incentives right now for buying down your rate permanently, and/or paying some/all of your closing costs. 

I'd be happy to discuss further if you would like. Send me a message if I can help. 

@Lily B. I’d be happy to discuss helping you out. I’ve done 3 sub/2 myself and probably have investors that would be interested in your property if it’s performing decently. 

You can check my profile for a link to schedule a call or just PM me with some details.