All Forum Posts by: Tom Scott

The channel manager I was using up until this weekend was working great but their connection with VRBO has become unstable and it no longer is able to sync anything.  This channel manager was using the "active session" style connection (you log in to VRBO through the channel manager's website) and this is the connection style I would prefer.  The active session connection, from what I know, allows you a unified inbox and pricing control without taking full control over VRBO in the way that OwnerRez does.  I'm not really interested in processing guest payments and it's easier to leave the tax burden with VRBO rather than myself but at the same time, I want the unified inbox or else the channel manager is nearly worthless.  

(1) Does anyone use a channel manager with the full VRBO API and find it less annoying than I'm assuming it will be?

(2) The only other mainstream platform I know with the active session style connection is Hospitable and I spent some time this weekend trying it out.  Hospitable seems great and a bunch of people on here endorse it but it seems like I would have to layer in Pricelabs to control pricing which just feels like I'm slowly adding costs and suddenly, I'm paying $100/month for software.  Anyone have any thoughts here?  Does anyone know of other channel managers that use an active session connection to VRBO?


I read in at least one other post that VRBO would force every channel manager to the full API at some point so maybe it's just a matter of time until there aren't any other alternative options.

Quote from @Andy Rousch:

Whats a good door lock? I saw some have had issues in the past where the app messes up when setting a new code between guests. Any tips on locks would be great! 

https://www.biggerpockets.com/...

I'm using Touch Stay for guest guidebooks.  It looks like there's two options: (1) send a generic link to the guidebooks and (2) send a personalized invite to each guest that will activate on a certain date and expire their access on a certain date.  Assuming the guidebook doesn't have any "secret" information beyond the property address and WIFI code, is there a reason to go with #2 over #1?

@Ken Boone This was incredibly helpful and I really appreciate the lengthy response.  

I've scoured the channel manager posts on here and have visited all of their websites but regardless, I apologize for making another post about channel managers as it's been over discussed.  Right now, I only have one STR but want to build in the systems and software to continue to scale, which includes setting up a solid channel manager today versus later.  All of the channel managers seem to have solid messaging systems, housekeeper notifications and full integration with Airbnb, VRBO and Booking.com but some are missing some features I'm looking for.  Easy enough to buy other subscriptions and services but I'm looking for one that can do the basics plus the following:

1. smartlock integration directly with a Schlage Encode
2. guest guidebooks/welcome book
3. e-sign rental agreements
4. allow hosts with only one property and charge a market-rate for one property
5. some type of real customer service

Let me use an example: I'm currently on a trial with Guesty but the Guesty for Hosts platform only gives numbers 1 and 4 of the above list.  I can easily add Docusign and and Touchstay but I sent a message to customer service and it took three business days for a response and it seemed like it was a canned response as it didn't answer the question at all so I don't know if there's a fix for 5.  Anyone have any ideas?

@Chris Seveney per their website:

• "We hold a $30,000 License (Notes Direct Diamond Certification). This allows Glastonbury Thorn to buy notes on behalf of individual investors."

....what.  

@Eli Konig Hypothecating notes on a one-off basis is called note-on-note financing and is usually done with commercial mortgages just because the lender has to make the return worth the due diligence. I don’t know how low these go but I’m guessing a lender wouldn’t be interested until the upb of a note is somewhere above $1MM.

For financing portfolios of notes, the lower end of the market is very fragmented. I would call the lower end of the market a loan size under $20MM. When I say loan size I mean the loan from your lender. The lower end of the market is dominated by small banks and credit unions with a few non-bank financing companies sprinkled in. These lenders will typically be interested in hypothecation financing arrangements after establishing a relationship like with a deposit account.

You should look for these lenders to currently have asset based financing platforms in addition to real estate financing. The reason for this is if they’re comfortable financing “assets” they will be closer to understanding note on note financing. Also if they finance single family and commercial real estate then they at least understand the collateral of mortgages.

It would probably take a small book to get all of the information out so let me know if you have any specific questions but that might be enough to get your wheels spinning or at least help narrow down a list of lenders you want to call.

Even though unaffixed mobile homes are personal property, they still qualify as "dwellings" and are subject to the rules of Dodd-Frank and the SAFE Act.  I'm definitely not an expert in what happens when you violate these regulations but I believe some of the penalties can include fines and/or a recession of the financing contract but I don't know if this liability is transferrable to someone who owns the note vs the originator.  The reason I say this is you said "no underwriting" was performed which makes me think they also did not follow the rules for seller financing to an owner-occupant.

Another problem with mobile home paper is the low value of the notes. At $10,000-$20,000 in UPB, the mobile homes probably aren't worth a ton or are fairly old. A well-maintained mobile home can last as long as a single-family home but a poorly maintained mobile home can easily be a teardown. For this reason, getting eyes on the exterior of the property and while unlikely, the inside of the property is really important...tough to buy a mobile home sight unseen.

As other people have mentioned, the discount to UPB would be significant even for performing loans but that can all change depending on the condition of the home. The small number of mobile home financing companies (home only, no land) out there tend not to sell the performing paper as whole loans and securitize instead. When they have an NPL, replevin is so quick and cheap they tend to sell the repo'd homes vs selling the actual loan.

In commercial revolving credit facilities there is typically an "unused line fee" which kicks in after a certain period of time during the revolving period of the facility.  The unused line fee is typically charged monthly.  The calculation would be 

(unused line fee %/12 months) * (A - B) 

where A would be the maximum commitment of the facility OR some lesser amount and B would be the average monthly balance of the facility.

I'm sure this is pretty rare but for those of you that started with notes or maybe bought one or two properties then made a full transition to notes, I'm wondering why you chose that route?  Or maybe there's a person that started with one or two notes then fully transitioned to properties and that would be very insightful as well.  I get that these two don't have to be mutually exclusive but when starting out, I believe focus is key.