All Forum Posts by: Tyler Rowley
Tyler Rowley has started 21 posts and replied 51 times.
Post: gator lending and the pros and cons
- Investor
- Providence, RI
- Posts 51
- Votes 16
@Joe S. In order to mitigate risk and lessen the amount of capital needed to get into deals. Gator Lending works for people. Like anything else, you need to know how to do it well. It can be very lucrative.
Post: GAP Loan from Canada and taxes
- Investor
- Providence, RI
- Posts 51
- Votes 16
Jesse, did you ever figure this out?
Post: Loan Guarantor and Gap Loans
- Investor
- Providence, RI
- Posts 51
- Votes 16
How did this event go? Is there a link?
Post: Business Model for STRs
- Investor
- Providence, RI
- Posts 51
- Votes 16
@Don Konipol, thanks for that thoughtful response. I hadn’t considered getting my real estate license but that could be a helpful piece.
I didn’t mean that the buyer needs to purchase the house 100% cash; rather I’m saying they finance it on their own, whether that means a cash purchase or a loan.
However they choose to acquire the house, the goal is to help them *at least* break even every month through STRs.
I’d like to discuss this type of deal with you whenever you’re ready.
Post: Structuring a partnership
- Investor
- Providence, RI
- Posts 51
- Votes 16
Quote from @Hemray Kay:
I am in the very beginning stages of discussing a partnership arrangement with a young and ambitious individual who wants to get into the real estate / STR business.
This potential partner has limited business and real estate experience and limited funds for even a down-payment. He will be managing the day to day operations and property management.
I, on the other hand, have significant business experience (although none in STR's). I also don't have much time that I would like to put into this endeavor. So my role would be more of a passive investor who provides mentorship advise and the finances for the down-payment and most likely will be the one carrying the loan.
I did call it a partnership because I want the other person to have some equity in this deal so they have more engagement. Probably about 10-20% equity. If the first one goes well, we plan expanding.
My question to everyone is:
What would a fair partnership look like in this situation? How much and how would you provide equity to the other partner and how much % of revenue should the other person be paid for property management?
Post: Business Model for STRs
- Investor
- Providence, RI
- Posts 51
- Votes 16
Hi,
I'm considering launching a STR investment business and I am hoping for some feedback.
This is the gist of the model:
- I help people identify and purchase a good STR home that can double as both their vacation home and an investment property.
- They finance 100% of the purchase.
- I manage the property as a STR.
- I am a 10% equity partner.
- My property management fee is 5% of NOI.
Background: I currently own and manage five STR properties, one of which I own with partners and the agreement is set up similar to what I've described above. Now I'm looking to scale those types of deals.
QUESTIONS:
How would you structure my exit clause?
Do you see this as a fair agreement?
Overall thoughts?
Post: Family That Needs a Break
- Investor
- Providence, RI
- Posts 51
- Votes 16
Quote from @Scott Mac:
Quote from @Tyler Rowley:
Here’s the situation…
I know a family who is going through a rough time. Mom, Dad + 8 kids. One of their daughters has leukemia.
They were evicted last year and their new place just went on the market and they had to move out. They have Ben paying $3,000 in rent for years, but they’re really struggling to find anything. It’s been six months of living in a church basement and a hotel.
They have good income. He is a contractor that banks hire to rehab foreclosed homes.
They have bad credit from things in the past.
The rental market is tough as it is, but when people hear they have eight kids, it gets even harder.
I would love for them to buy something, but they say their credit makes it nearly impossible. They have never bought a home before so they would be first time home buyers.
I wish I could find an investor who would help them by financing a deal for them.
Does anyone know a place to start looking?
Any other solutions?
Thank you.
How's this family doing--are they moving for a better life yet?
Hey Scott, thanks for asking. I’m advising them on getting a co-signer to buy their own house. If that doesn’t work, I’m not sure. I think they just need to keep looking for a rental that will accept them.
Post: Old Oak Cottage
- Investor
- Providence, RI
- Posts 51
- Votes 16
Investment Info:
Single-family residence buy & hold investment in Westminster.
Purchase price: $625,000
Cash invested: $156,000
Direct lakefront home with panoramic views of Wachusett Ski Mountain. Your backyard is the gorgeous Wyman Lake! Wachusett skiing (voted #1 In MA) is 2 minutes away!
For summer travelers, we provide kayaks, canoes, paddle-boards, bikes, firewood, grill, cornhole, & more!
The home boasts an outdoor shower, washer/dryer, work-space, dishwasher, sunroom, two-tiered deck, 50” smart TV, and full kitchen amenities.
What made you interested in investing in this type of deal?
Year round STR.
How did you find this deal and how did you negotiate it?
MLS
How did you finance this deal?
Conventional
How did you add value to the deal?
Furnished ($15k)and fixed up ($20k)
What was the outcome?
Renting well on airbnb
Post: Old Oak Cottage
- Investor
- Providence, RI
- Posts 51
- Votes 16
Investment Info:
Single-family residence buy & hold investment in Westminster.
Purchase price: $625,000
Cash invested: $156,000
Short-term rental investment. Lakefront home with views of a ski mountain.
From the Airbnb listing:
Direct lakefront home with panoramic views of Wachusett Ski Mountain. Your backyard is the gorgeous Wyman Lake! Wachusett skiing (voted #1 In MA) is 2 minutes away!
For summer travelers, we provide kayaks, canoes, paddle-boards, bikes, firewood, grill, cornhole, & more!
The home boasts an outdoor shower, washer/dryer, work-space, dishwasher, sunroom, two-tiered deck, 50” smart TV, and full kitchen amenities.
What made you interested in investing in this type of deal?
Year round STR.
How did you find this deal and how did you negotiate it?
MLS
How did you finance this deal?
Conventional
How did you add value to the deal?
Furnished ($15k)and fixed up ($20k)
What was the outcome?
Renting well on airbnb
Post: Little Oak Cottage
- Investor
- Providence, RI
- Posts 51
- Votes 16
Investment Info:
Single-family residence buy & hold investment.
Purchase price: $350,000
Cash invested: $70,000
From the Airbnb listing:
A small, charming lake house with a magnificent view of a ski mountain — Wachusett Ski Resort (voted #1 in MA).
Newly-renovated, 650 square foot cabin with a wall unit AC, fire pit, grill, smart TVs, kayaks, paddle board, and all the amenities you’ll need for your getaway.
