All Forum Posts by: Nicholas Davaul

Hello Everyone.  I'm looking for advice

 I'm currently in a real estate partnership, and I'm seeking some guidance on ensuring that our partnership is structured in a fair and financially beneficial manner for all parties involved.

Here's the corrected setup:

1. I am contributing 100% of the total investment, which amounts to $40,000, to secure a real estate property and to pay for the renovations.

2. The other two partners are responsible for doing the renovation and property management, but they aren't contributing any funds to the initial investment.

3. I will be responsible for 1/3 of the capital expenditure (capex) replacements (if needed) and receive 1/3 of the cash flow generated by the property.

4. The return on my investment from cash flow is projected to take five years, while the other two partners are already receiving cash flow.

5. The partners plan on refinancing in 5 years to pull out any/all equity to put into additional/future deals.

I want to make sure that the partnership structure is fair and that I can recover my $40,000 investment as soon as possible. To achieve this, I would greatly appreciate your insights on the following questions:

1. What should be the ideal timeline or strategy for recouping my $40,000 investment while maintaining fairness in the partnership?

2. Are there any best practices or recommendations for structuring a partnership where one party is contributing a significant sum of money, and others are contributing their expertise and labor?

3. How can we ensure that cash flow is distributed equitably, taking into account the different roles and contributions of each partner?

4. What mechanisms or agreements can we put in place to protect my interests in the event of unforeseen circumstances or changes in the partnership dynamics?

5. Are there any tax implications or financial strategies that we should consider in this setup?

Your valuable input and experiences will be greatly appreciated as I navigate this partnership. I want to ensure that everyone involved benefits from the investment and that my $40,000 is returned to me in a fair and reasonable timeframe.

Thank you for your time and expertise, and I look forward to your feedback.

-Nick

There are SEVERAL (MANY, MANY) around and in the Houston Area.   

Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.

Another option is to go to eventbrite.com and search for Investing groups there.

 I'd contact Kel Balase.    He's starting one in the Tomball area.

I heard a podcast talk about www.kopa.co

But the draw back is:   While they don't charge your to list your property on their site, they DO CHARGE a fee when your property is booked.   

The host service fee is 3-12% of the total amount of monthly rent for the stay, depending on the length of stay with longer stays yielding lower service fees.

<31 days - 12%
1-3 months (31-90 days) - 8%
3-6 months (91-180 days) - 6%
6-12 months - 5%
12+ months - 3%

HOLY COW WOW!  Now that I've looked into what the actual fees are, that's crazy high.    

So unless someone can say otherwise, I would suggest avoiding Kopa.co

 Jeff, like every other answer in the world "it depends".    While traveling nurses "typically" travel alone or with a partner, a 2/2, or even a 3/2 would be acceptable.   You could use two bedrooms, two baths... Or Two Bedrooms/One Office/two Baths....     But don't forget that Travel Medical professionals are not your only clients.

There are quite a few that would need a larger 4 bedrooms:

1. Remote Workers --  More and more remote workers usually (but not always) travel with families as they aren't tied to the geography of their company.  They could be working for a company in N. Carolina, and they could actually be living (MTR) in Florida. 

2. Families (Moving) --  I'm a prime example of this group.   My family of 5 wanted to move into a particular city.   Without knowing the area (best schools, shopping, security, etc...)  we stayed in an furnished MTR for 3 months to get the lay of the land before we purchased (built) our home in the area best suited for our needs.     

3. Displaced Families -- Families that are displaced due to either something related to Insurance or Natural disasters causing them to need an alternative place to stay during the rebuild/remodel of their house.

4. College Students - I know there is alot of stigma's around renting to college kids, but they could be AMAZING renters...   Typically 9 months (school year).  You could even up the deposit if you feel the needs.

Hello Brad,

1. That is going to be relative to your area.  Best to call around to talk with various cleaning professionals and/or companies.   Make sure you tell them you'll need a set price and not the hourly price, relative to a "regular" clean and a "deep" clean.     I would use the "Deep" clean price as the set cleaning fee after every MTR.  Let's face it, not everyone keeps their house rent-ready on a monthly basis (or at all).   The Deep clean will do just that after they leave.     For one of my 3/2 houses, a DEEP clean (w/o pets) is around $300-$400, and they clean top to bottom.  It's impressive.   The renters know that this deep clean is mandatory and comes out of the security deposit.  

Usually, there is only one price for cleaning on all the booking sites—cleaning fees are not a sliding scale on whether the guest stayed a month or six.  So, I advise over- shooting what you think it will cost (just in case) while aiming not to make it ridiculous.  The "over-shoot" is in case the cleaners have to focus on or put more effort in cleaning something (Wine Stains, Pet Stains, etc....)

2. I also offer the renter an "add-on" for monthly cleanings.    That way, if the renter wants a "clean" house, they can use our "recommended" cleaners.   Plus it gives the cleaners an opportunity to make $$$ for their business

3. As stated in #1.   Deep clean after each stay (typically ~3-4 months). 

Either way, cleaning prices will vary (like everything else) from area to area.  The best way is to call some of the cleaning services in your area, or even some of the hosts on FF or AirBnB and ask them.

@Account Closed, have a look at Stessa.com   

Aloha Antonio!   Welcome to BP!

Hello EVERYONE in the MTR Forum.

I've been listening to various BP podcasts where the hosts talk about there 2022 goals, if they hit them or not, and what they have planned for 2023.     While it was really inspirational to hear their goals they have in their respective niches, I would like to query our MTR niche people.

What are your 2023 MTR goals??   What are you going to do to move the needle and get your first (like me) or next property?

I'll start.  At first glance the following are high level goals to be turned into S.M.A.R.T. goals when my wife and I have a weekend planning session: (B: Business), (P: Personal)

1. (B) Purchase and furnish 1-3 MTR's. (3 is stretch, but 100% of having 1)

2. (B) Partner with other investors to try Corporate Housing (Apartment) MTR Arbitrage

3. (B) Start up a local (Katy, Tx) BP Meetup group

4. (B) Set a goal of honing my deal analysis skill and offer submission -->  Get out of/Never get into analysis paralysis 

5. (B) Set a net worth goal, along with tracking it monthly 

6. (B) Attend BPCON 2023

7. (P) Plan our 20th Wedding Anniversary (2025) Greece Trip 

8. (P) Lose 8% Body Fat and 15lbs by Dec. 2023 --> Family Cruise and for personal fitness/health

There are just a few I thought of off the top of my head.   Some goals may change, fall off, or get added as the year goes on.  But I'd like to know your goals?  Also, What Goals SHOULD a "rookie" MTR investor have on their list?    Inquiring minds would like to know.

-Nick D. (@NickDavaul)

Don't forget about seasonality.   While using Airbnb and FF is good, definitely looking into a pricing software as a companion.     You can have a $500-$750+ swing in prices depending on the season (and of course your location).    I'm sure Denver Skiing would probably bring in a higher premium than Houston, Texas during the "winter" months. :)

So look on places like PriceLabs or BeyondPricing.