AIAirbnb InvestingShort-Term Rental Advisory

About

Twenty-seven years, and every side of the same transaction.

Most people advising on short-term rentals have done one part of this. This is four parts, done for a living — which is mainly useful because it means knowing in advance where these deals break.

The background

Owned and operated a real estate brokerage. Owned and operated a mortgage brokerage. Owned and operated a property management company. Twenty-seven years of buying, financing, and running property, on every side of the table.

Those map onto the places these deals actually go wrong. Buyers overpay because nobody ran real comparables. They can't get financing, because most lenders don't want a short-term rental loan — and want one with six people on it even less — and they discover this after going under contract. They underestimate what operating costs, because the spreadsheet had no turnover, replacement, vacancy or reserve in it. And where there are partners, they fall out, because the agreement never said what happens when somebody wants out or can't fund a capital call.

Knowing where those failures are is the reason to hire someone who has watched them happen. It isn't a reason to hand anybody your deal.

What is actually being sold here

Four engagements, priced separately, each one a decision on its own: brokerage on the purchase, design and buildout of the concept, property management once it's running, and repositioning for a property that's already open. That's the business. You own the property. We're vendors, and vendors get fired.

Everything else here is free and stays free. The interest list costs nothing. The events and introductions cost nothing. There is no fee for putting a group together and no piece of anybody's deal is taken. That's a deliberate line, not a promotion: charging to assemble investors would make this a securities business, with obligations that serve nobody at this scale. Being paid for work performed is cleaner for everyone.

The conflict, in writing

A firm that can broker your purchase, design your buildout, and then manage the property has an obvious interest in you buying all three. That is a real conflict of interest, and the way it gets handled is: disclosed in writing before you commit; every fee benchmarked against at least two outside bids; each service contracted separately so declining one doesn't affect the others; and every agreement terminable on notice. Anyone who would rather use an unrelated broker, designer, or manager should say so, and that is a completely normal thing to say. Trust that hasn't been structured is just optimism.

What is deliberately not here

No performance figures, no past-deal returns, no testimonials, and no photographs of properties presented as though they were ours. The concept illustrations on this site are drawings, not photographs, precisely so that nothing reads as a property that exists. Those things belong on a website only when they're documented and current.

The next step is a conversation.

Get in touch