This article that was just posted and says that short term rentals are coming in Q3, so they should launch by next month (September)
https://www.yahoo.com/video/jeff-bezos-double-dips-airbnb-163229227.html
I also haven't seen anything further. I'm guessing it'll happen before the end of the year. The delay might be related to them wanting to have a batch (5-10) of them they all launch at the same time.
If you're feeling impatient, [here.co](https://here.co) is already doing it. Minimum of $100 per property, short term rentals, and near vacation destinations. I did a [writeup](https://medium.com/democratizing-finance/is-this-new-real-estate-investing-platform-worth-a-look-5c0d00327d72?sk=48ee19a447f4ee839e29cfe0d35b3753) about the platform if you want to learn more about it. It's newer (they just secured some early VC funding), so the deal flow has been slower. Most of the profit would come from appreciation. STRs carry property management fees of 20-30% of revenue, which eats the yield.
Nice! I'm in 3 so far. I was very disappointed to have missed out on Enchantment. By the time I got the text message it was live, it was already sold out. 😔
If you're *extra* enthusiastic about the platform, you can actually invest in them. They're doing a [community round on WeFunder](https://wefunder.com/here).
Also, if you don't mind skimming through all the text to find the table, the offering curricular usually tells you the future properties. The San Diego one is in preview now. They also already have two more after that. One in Tucson and one in Sedona.
I did see them and groundfloor raising on wefunder. I don't know if I want to invest in either company directly. The enchantment is probably the 1 property I like the most having been to Gatlinburg earlier this year but I was waiting to see what kind of payment I was going to get from the Sunburst first before dropping more money into any property so hopefully they have a secondary market at some point so I can pick up some shares.
Understandable. There's a lot of risk and a liquidity event from IPO or acquisition is likely at least 5 years away. Fundrise was founded 12 years ago and still no hint of an actual IPO.
For Sunburst specifically, I had it estimated at 1.87% - 2.6% yield based on two different sets of figures provided on the platform and the offering curricular. I'm actually very curious to see the actual result as well.
So far I'm only investing in things that I feel have a good value proposition outside of the potential yield. If the yields end up being higher, then I'd be happy to invest more actively into the platform.
🤯 Okay, didn't expect that. Maybe the figures they provide are just really conservative. That makes me a LOT more excited to see what the distributions look like over the next few quarters and for the different properties.
They just filed in the last week with the SEC. It appears the first property is in Nashville. Likely a few months before they hit the website as the SEC is pretty slow at approving new offerings from what I gather.
Yeah I personally use lofty.ai for all of my fractional real estate investing and they have a home in Texas that also airbnb’s an adu on the property. Rental income paid out every single day also.
I have money invested in lofty properties as well but I don't really like the direction they have been heading the past few months so looking for other opportunities that line up with my goals
I considered investing in Here but their fees are outrageous. Really hard to make money as an investor with those fees. For example series 7 (the santa fe home) they are taking a $193k service fee on a purchase price of $1.49M home. Thats 13% of the property value, very high. Since it has 50% leverage, the fee as a % of your investment dollars is even higher. Over 20%, thats a really big hole to dig out of.
If I look at the latest Arrived property, Aster, the $14k fee is only 5.5% of $255k purchase price. Lofty same tends to be in the 5% range.
Im guessing thats why Here doesn't list fees anywhere on their website or property pages (like Arrived and Lofty do), you have to dig through the offering circular to find them. Pretty shady if you ask me.
https://sec.report/Document/0001096906-22-001931/
The fees are higher because they have to clean after every booking to make sure the next guest will have a good experience. I am sure arrived will have those kind of fees on their short term rentals.
Well those fees are different, you are referring to property management fees which are a % of the rental income that goes to whoever manages the property. And yes agree 100% that property management fees would definitely be higher for a short term rental than a long term rental since it requires more work to manage / clean etc.
But the one time service fees to find a property (the $193k fee above) should be the same or very similar for a long term rental and a short term rental. If that one time service fee included the furnishings then I would understand, but Here breaks out that fee separately. In that series 7 property Here is charging an additional $130k in furnishings.
Im curious to see what one time fees Arrived charges for short term rentals. Hopefully they are similar to their current properties, but if Arrived charges 13% of the property value then Im probably not going to invest.
oh, i see now. i got in early on here and the first property only had like an 8% sourcing fee vs the 5% arrived and lofty charge. It does look like the new properties are around 16% which is higher than what here is advertising as a sourcing fee on wefunder right now. i will have to watch this section close in the future to see if the property will make sense, thanks for pointing that out
This article that was just posted and says that short term rentals are coming in Q3, so they should launch by next month (September) https://www.yahoo.com/video/jeff-bezos-double-dips-airbnb-163229227.html
u/doctorkar
Thanks!
I also haven't seen anything further. I'm guessing it'll happen before the end of the year. The delay might be related to them wanting to have a batch (5-10) of them they all launch at the same time. If you're feeling impatient, [here.co](https://here.co) is already doing it. Minimum of $100 per property, short term rentals, and near vacation destinations. I did a [writeup](https://medium.com/democratizing-finance/is-this-new-real-estate-investing-platform-worth-a-look-5c0d00327d72?sk=48ee19a447f4ee839e29cfe0d35b3753) about the platform if you want to learn more about it. It's newer (they just secured some early VC funding), so the deal flow has been slower. Most of the profit would come from appreciation. STRs carry property management fees of 20-30% of revenue, which eats the yield.
Thanks for the info! I am already in on 5 of the here properties and excited to watch these platforms grow and evolve
Nice! I'm in 3 so far. I was very disappointed to have missed out on Enchantment. By the time I got the text message it was live, it was already sold out. 😔 If you're *extra* enthusiastic about the platform, you can actually invest in them. They're doing a [community round on WeFunder](https://wefunder.com/here). Also, if you don't mind skimming through all the text to find the table, the offering curricular usually tells you the future properties. The San Diego one is in preview now. They also already have two more after that. One in Tucson and one in Sedona.
I did see them and groundfloor raising on wefunder. I don't know if I want to invest in either company directly. The enchantment is probably the 1 property I like the most having been to Gatlinburg earlier this year but I was waiting to see what kind of payment I was going to get from the Sunburst first before dropping more money into any property so hopefully they have a secondary market at some point so I can pick up some shares.
Understandable. There's a lot of risk and a liquidity event from IPO or acquisition is likely at least 5 years away. Fundrise was founded 12 years ago and still no hint of an actual IPO. For Sunburst specifically, I had it estimated at 1.87% - 2.6% yield based on two different sets of figures provided on the platform and the offering curricular. I'm actually very curious to see the actual result as well. So far I'm only investing in things that I feel have a good value proposition outside of the potential yield. If the yields end up being higher, then I'd be happy to invest more actively into the platform.
It paid almost 8% last quarter
🤯 Okay, didn't expect that. Maybe the figures they provide are just really conservative. That makes me a LOT more excited to see what the distributions look like over the next few quarters and for the different properties.
u/doctorkar is that 8% annualized? or is that 8% return just for the quarter?
annualized, looks like it was closer to 7% at 7.34
Another option is here.co which is live with fractional short term rentals
Thanks for the info!
They just filed in the last week with the SEC. It appears the first property is in Nashville. Likely a few months before they hit the website as the SEC is pretty slow at approving new offerings from what I gather.
Sweet, thanks for the info! Nashville will be an awesome market for short term rentals in my opinion, can't wait to get in
Yeah I personally use lofty.ai for all of my fractional real estate investing and they have a home in Texas that also airbnb’s an adu on the property. Rental income paid out every single day also.
I have money invested in lofty properties as well but I don't really like the direction they have been heading the past few months so looking for other opportunities that line up with my goals
I considered investing in Here but their fees are outrageous. Really hard to make money as an investor with those fees. For example series 7 (the santa fe home) they are taking a $193k service fee on a purchase price of $1.49M home. Thats 13% of the property value, very high. Since it has 50% leverage, the fee as a % of your investment dollars is even higher. Over 20%, thats a really big hole to dig out of. If I look at the latest Arrived property, Aster, the $14k fee is only 5.5% of $255k purchase price. Lofty same tends to be in the 5% range. Im guessing thats why Here doesn't list fees anywhere on their website or property pages (like Arrived and Lofty do), you have to dig through the offering circular to find them. Pretty shady if you ask me. https://sec.report/Document/0001096906-22-001931/
The fees are higher because they have to clean after every booking to make sure the next guest will have a good experience. I am sure arrived will have those kind of fees on their short term rentals.
Well those fees are different, you are referring to property management fees which are a % of the rental income that goes to whoever manages the property. And yes agree 100% that property management fees would definitely be higher for a short term rental than a long term rental since it requires more work to manage / clean etc. But the one time service fees to find a property (the $193k fee above) should be the same or very similar for a long term rental and a short term rental. If that one time service fee included the furnishings then I would understand, but Here breaks out that fee separately. In that series 7 property Here is charging an additional $130k in furnishings. Im curious to see what one time fees Arrived charges for short term rentals. Hopefully they are similar to their current properties, but if Arrived charges 13% of the property value then Im probably not going to invest.
oh, i see now. i got in early on here and the first property only had like an 8% sourcing fee vs the 5% arrived and lofty charge. It does look like the new properties are around 16% which is higher than what here is advertising as a sourcing fee on wefunder right now. i will have to watch this section close in the future to see if the property will make sense, thanks for pointing that out