All Episodes

February 25, 2020 92 min

Imagine making $10K per month per property on luxury homes YOU DON’T OWN and having the option to stay in those high-end homes when they’re available… The increasing popularity of home sharing sites like Airbnb, VRBO and Expedia make it possible to make a lot of money on luxury vacation rentals—whether or not you have the capital to buy a million-dollar home yourself!

Jerry Conti is the Cofounder and CEO of LuxHomePro, Arizona’s top short-term rental (STR) marketing and booking specialists. Jerry’s team manages a portfolio of 22 luxury properties in the Scottsdale area worth $23M, capitalizing on the millions of travelers seeking high-end properties through online travel agencies to generate returns of 100% to 500% in monthly revenue. LuxHomePro also boasts an education arm, helping entrepreneurs start their own luxury vacation rental business in markets across the country.

On this episode of Founders Club, Jerry joins Oliver to explain how his vacation rental model works, discussing why he prefers the lease option and the luxury niche. He walks us through the process of finding a property, addressing homeowner objections, financing the deal, and negotiating an option contract. Listen in for Jerry’s insight around what to look for in a STR property (and how to price it accordingly) and learn the skill sets you need to run a successful vacation rental business.

Key Takeaways

[1:16] How Jerry’s vacation rental model works

  • Look for luxury property on market 12+ months
  • Approach homeowner with idea to cashflow as STR
  • Bring in investor after year once proven concept
  • Continue to lease from investor as vacation rental
  • [7:18] Why Jerry prefers the luxury niche

  • Generate $700 to $1500/day on single property
  • Use for own mastermind events
  • [14:16] How Jerry finds properties

  • Use Airbnb/VRBO to research areas, occupancy rates
  • Generate list of homes for sale on MLS and visit area
  • Negotiate with homeowner to put together deal
  • [21:49] Your options for structuring a STR deal

  • Buy property for vacation rental
  • Lease method
  • Partner with homeowner as host
  • Seller financing
  • Foreclosure deals
  • [29:55] Jerry’s advice on getting a lease under contract

  • Negotiate option to purchase (even when overpriced)
  • Disclaimer to exit lease should regulations change
  • [35:40] Who Jerry’s team negotiates with

  • Preferably homeowner themselves
  • Give realtor fee to help make deal
  • [41:00] How Jerry addresses common homeowner objections

  • Security checks, cameras and NoiseAware system
  • Secure damage waiver insurance policy
  • [46:12] What Jerry looks for in a property

  • Open concept kitchen + right bed configuration
  • Amenities (pool, hot tub and room for gaming)
  • [52:26] Jerry’s insight around pricing a STR

  • 80% of revenue should come from weekends
  • Weekday rate about 1% of goal for month
  • Consider low and high season + special events
  • [1:00:10] Jerry’s approach to mitigating neighbor concerns

  • Apologize as necessary, respond to Airbnb asap
  • Systems in place (i.e.: house rules in manual)
  • [1:06:19] The key to running a successful Airbnb

  • Know your numbers and optimize listing
  • Personal connection earns positive reviews
  • [1:12:05] How Jerry keeps his STRs immaculate

  • Put energy into training cleaning crew
  • Quarterly inspection of appliances
  • [1:18:30] Jerry’s tips on the check-in and check-out process

  • Promising early check-in can jeopardize experience
  • Let guest buy day before for half price (if not weekend)
  • [1:26:40] What surprised Jerry about the STR business

  • Need multiple skill sets to be good operator
  • Must get joy from providing great experience
  • Connect with Jerry

    LuxHomePro

    Jerry on LinkedIn

    Connect with Oliver

    Big Block Realty

    Oliver on Facebook

    Oliver on LinkedIn

    Resources

    Royal Palms Hotel

    NoiseAware

    Jack Canfield

    Closing Table Real Estate Mastermind

    AirDNA

    Vrolio

    Real Closers Facebook Group

    Share
    Mark as Played

    Advertise With Us

    Popular Podcasts

    Crime Junkie
    Stuff You Should Know

    Stuff You Should Know

    If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks then look no further. Josh and Chuck have you covered.

    The Ben Shapiro Show

    The Ben Shapiro Show

    Tired of the lies? Tired of the spin? Are you ready to hear the hard-hitting truth in comprehensive, conservative, principled fashion? The Ben Shapiro Show brings you all the news you need to know in the most fast moving daily program in America. Ben brutally breaks down the culture and never gives an inch! Monday thru Friday.

    For You

      Music, radio and podcasts, all free. Listen online or download the iHeartRadio App.

      Connect

      © 2021 iHeartMedia, Inc.