Founders Club - For Real Estate Entrepreneurs

Founders Club - For Real Estate Entrepreneurs

Join Founders Club with Oliver Graf, the show for Real Estate Entrepreneurs, created and dedicated to you, the realtor, broker, investor, agent, digital marketer, or any other real estate industry professional. If you're looking for inspiration, motivation and actionable advice on how to grow your real estate business, then join us each episode for a new discussion, interview or case study. Discover how you can learn to generate more real estate leads, convert more customers, and do more business. Join us for a casual conversation over a beer with high achievers from throughout the real estate industry. From developers to top producers and everything in between. Oliver's company Big Block Realty, has been named the Inc 500's fastest growing real estate brokerage in America (three years in a row) and #26, #31 and #33 overall on the Inc 500. Big Block Realty was named one of the top 360 entrepreneurial companies by Entrepreneur in 2018 and featured in Inman multiple times. He is a serial entrepreneur and also invests and sits on the board of advisors for 8 companies. We'll cover a wide range of real estate marketing and top producer growth hacks that you can apply to your business. Topics will include real estate marketing, how to grow your real estate brokerage or team, investing, developing, listing strategies, buyer strategies, 1031 exchanges, multi-family, apartments, staging, foreclosure, short sale, expired listings, open house, internet leads, sales, scripts and the best strategies that are working in today's market. Watch, listen and you'll be in the know with Founders Club with Oliver Graf.... Show More
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

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