What Are Typical Seller Financing Terms? – And Is It Worth It? (Episode 355)

Michael Lacalle’s Tips for Cross-Country STR Deal Making, Prepping, Pricing & Hosting

Welcome to the officially unofficial Money Making May, where we have a full month’s worth of content all around pricing profitable properties with PriceLabs!

Today’s expert guest is Michael Lacalle, a teacher, husband, and father of two who stumbled into house hacking as a means to afford living on the Central Coast of California. From there, he got the real estate bug and now owns five short-term rental listings on three separate properties (HINT: He is looking to partner with like-minded investors and scale his portfolio!)

We chat with Michael about his inspiring three-tiered story – launching a studio STR space attached to his first home purchase, rolling the dice on a wait-and-see vacation rental project in Joshua Tree, and partnering up for a sprawling cabin escape in New York.  

We also touch on a few important niche STR subjects, like how he’s leveraged dynamic pricing to get the most out of his listings and seller financing – who, what, where, when, and why it makes so much sense for both the seller and the buyer.

We met Michael in a moment of cosmic fate, in an airport of all places, and were enthralled with his willingness to share the nitty gritty details of his various deals, processes, and plans. He’s another great example of a real life person, just like you, out there doing his thing and having great success in this industry through passion and purpose. 

(00:01:28) #STRShareSunday: @treebonesresort

  • Remote glamping, yurts, unique builds, cabins, etc.
  • Sarah and Annette’s memorable experience at Treebones
  • Priority on UGC (user generated content)

(00:07:08) Launching a Short-Term Rental in Central California

  • Check out PriceLabs: Start your 30-day free trial
  • Meeting Micael in the San Luis Obispo airport 
  • Their first Central Cali property and resulting reno project 
  • Prepping and listing the attached studio rental 
  • Five bookings in their first night (and why)
  • $50,000 gross revenue in 2023 

(00:22:03) Expanding His Portfolio of Investment Properties

  • Jumping into a challenging Joshua Tree property 
  • Immersing himself in STR media and podcasts 
  • Finding the right partner and making the jump to New York
  • Identifying the right property and non-negotiables 

(00:29:53) Understanding Seller-Financed STR Deals 

  • What are the terms? Pros and cons
  • Michael shares details of this specific New York deal 
  • Benefits of dual agency when engaging in seller financing

(00:36:59) Prepping Operations for a Cross-Country STR Listing

  • Analyze the deal, study the competition, and stay conservative 
  • Enabling dynamic pricing for supercharged revenue
  • $400/night during the eclipse on the Path of Totality 
  • Possible studio/glamping expansions
  • Wins and losses in  a 48-hour set-up window
  • To self-manage or not to self-manage?
  • Recommended Short-Term Rental Training Tools & Software #338
  • Inheriting and compensating a cleaner/property manager 

(00:52:48) Michael’s Top Short-Term Rental Hosting Hot Tips

  • Do your homework!
  • Seek unique and established visitor towns 
  • Keep your why at the forefront of your project

Download a transcript of this episode.

Resources:

#STRShareSunday

@treebonesresort

This week’s #STRShareSunday spotlight shines on the scenic shores of California’s Big Sur. Connect with the earth in this sprawling off-grid facility. Nestled between the mountains and the sea, Treebones Resort offers a retreat from the demands of everyday life and an opportunity to slow down and reconnect. We love how they have, over time, slowly built up their property to what it is today. They not only offer overnight stays but they also have an impressive food and beverage program so their guests can completely immerse themselves into the property and all that it offers!

We would love to feature YOU, so don’t forget to use #STRShareSunday to get your chance!

Together, Annette & Sarah are the dynamic duo behind the wildly popular podcast Thanks For Visiting, co-creators of the Hosting Business Mastery Method, & seasoned short-term-rental hosts.

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