All Forum Posts by: Todd Goedeke

@Mike H.check out triple net leasing as to the mechanics of why almost 100% of hospitality and commercial properties are triple net leased.

The main reason people NNN lease their property/s to businesses is because they want to own passive investments not actively manage another business.

Very few if any investors manage the Hilton hotel property they own. 
Successful hotel/STVR managers don t own hospitality properties because the ConC return is far less when owning a property vs NNN leasing the property within which or on which the business resides.

By investing $25-$30k in furnishings on a property worth $250k, a management company can make a 100-150% ConC return. A passive investor can make a 15%+ per year tax free. That’s far better than they can make in the volatile stock market  annualized year after year in cash flow alone.

@Justin Brin what’s your understanding of arbitrage? I explained it to you in terms of triple net leasing. There is no reason to rent a property to someone vs lease long term. As a property owner you have considerably more safeguards in place with a triple net lease where a management company has skin in the game vs a simple rental agreement.

@JD Martin Passive investors don t want to manage hospitality properties. They don t want another business to take away from higher priorities of family and living life.

Most investors are happy getting a 15%+ cash on cash return that is tax free from a STVR without needing to actively manage the investment.

@Justin Brin long term rentals definitely have greater wear and tear. STVR guests are rarely in the home. They occupy a property 60-70% of the time , nights booked per year and are not in the property most of time while on vacation.

Set your mind at ease by triple net leasing your property( leasing company pays for furniture, RE taxes, insurance and interior maintenance.) As a triple net lease tenant the property will get cleaned weekly, while making sure the property is properly maintained.

@Shiloh Lundahl has your direct bookings strategies allowed you to omit listing on VRBO and Airbnb?

Good job involving ChatGPT.

@Eden Meng contact your Solo 401k administrator regarding regulations regarding leasing  mid term and long term rental properties.They should provide guidance regarding prohibited transactions.

@Bill B. check with a RE atty. regarding depreciation recapture. 
There is no depreciation recapture for depreciation occurring before death upon sale by heirs.

@Alex Silang You answered your own question. Based on $110k investment it does not make financial sense from a ConC perspective to invest. $1,000/ mo. Only yields a 11% ConC return.

@Steffany Boldrini As a lesson to other people hiring interior decorators online, can you please tell everyone what caution flags should have told you not to hire this person?

Did anyone advise you, mentor you ,on how to find and vet an interior decorator?

Did you have an agreement in writing signed by both you and the designer regarding payment schedule and purchases?

@Jon Roberts could you give us an update what was your ConC return for 2023? What was your occupancy %?