Small Business Archives - Page 20 of 115

Apache is functioning normally

August 29, 2023 by Brett Tams

It was bound to happen. Just as home builders began to feel more confident about attracting potential buyers, rising mortgage rates are proving too much for those customers.

After steadily rising for seven consecutive months, builder confidence retreated in August as rising mortgage rates nearing 7% (per Freddie Mac) and stubbornly high shelter inflation have further eroded housing affordability and put a damper on consumer demand.

Builder confidence in the market for newly built single-family homes in August fell six points to 50, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released August 15.

Home Builders Need Workers, Buildable Lots and Distribution Transformers

“Rising mortgage rates and high construction costs stemming from a dearth of construction workers, a lack of buildable lots and ongoing shortages of distribution transformers put a chill on builder sentiment in August,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala.

Huey said that other factors are helping support the demand for new construction.

“But while this latest confidence reading is a reminder that housing affordability is an ongoing challenge, demand for new construction continues to be supported by a lack of resale inventory, as many homeowners elect to stay put because they are locked in at a low mortgage rate.”

Housing Affordability Compared to US Median Income

Rising home prices and interest rates coupled with elevated construction costs, low existing inventory and solid demand resulted in a significant decline in housing affordability during the second quarter of 2023.

According to the NAHB/Wells Fargo Housing Opportunity Index (HOI), 40.5% of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $96,300. This is down from 45.6% posted in the first quarter of this year, and the second-lowest reading since NAHB began tracking affordability on a consistent basis in 2012.

Where to Buy? Affordable Housing Markets Around the Country

The Housing Opportunity Index shows that the national median home price increased to $388,000 in the second quarter, up from $365,000 in the previous quarter. Meanwhile, average mortgage rates rose from 6.46% to 6.59% during this period.

The top five most affordable major housing markets in the second quarter of 2023 were:

Lansing-East Lansing, Mich.
Scranton-Wilkes-Barre, Pa.
Harrisburg-Carlisle, Pa.
Indianapolis-Carmel-Anderson, Ind.
Pittsburgh, Pa.

Top five least affordable major housing markets—all located in California:

Los Angeles-Long Beach-Glendale
Anaheim-Santa Ana-Irvine
San Diego-Chula Vista-Carlsbad
Oxnard-Thousand Oaks-Ventura
San Francisco-San Mateo-Redwood City

Meanwhile, Cumberland, Md.-W.Va., was rated the nation’s most affordable small market, with 95.5% of homes sold in the second quarter being affordable to families earning the median income of $89,900.

The top five least affordable small housing markets were also in the Golden State. Tied at the very bottom of the affordability chart were Salinas, Calif., and San Luis Obispo-Paso Robles, Calif., where 6.5% of all new and existing homes sold in the second quarter were affordable to families earning the area median income of $100,400 in Salinas and $113,100 in San Luis-Obispo-Paso Robles.

NAHB Chief Economist Robert Deitz Calls for Government Action

Deitz said that government policies aimed at helping builders could help the housing shortfall. He said the shortfall is currently about 1.5 million housing units.

“Declining customer traffic is a reminder of the larger challenge that shelter inflation is up 7.7% from a year ago and accounted for a striking 90% of the July Consumer Price Index reading of 3.2%,” said NAHB Chief Economist Robert Dietz. “The best way to bring housing inflation down and ease the housing affordability crisis is to enact policies at all levels of government that will allow builders to construct more homes to address a nationwide shortfall of approximately 1.5 million housing units.”

Builders Again Pressed Into Using Sales Incentives

The August HMI survey also revealed that rising mortgage rates are causing more builders to use sales incentives to attract home buyers.

After dropping steadily for four months (from 31% in March to 22% in July), the share of builders cutting prices to bolster sales rose again to 25% in August.

The average decline for builders reducing prices remained at 6%. And the share of builders using incentives to bolster sales was 55% in August, higher than in July (52%) but still lower than in December 2022 (62%).

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Image: Envato Elements

Source: smallbiztrends.com

Apache is functioning normally

August 26, 2023 by Brett Tams

Business cash management accounts are a hybrid business checking, savings and investment account. This combination lets business owners earn above-average interest while maintaining easy access to their funds.

These accounts typically leverage sweep networks, which distribute your funds across a number of Federal Deposit Insurance Corp. members. This allows you to maximize FDIC insurance coverage without juggling multiple business banks.

Cash management accounts can be a good solution if your business has a lot of idle cash to invest — think startups with seed funding or companies with large operating budgets. But if your margins are thinner, a high-yield business checking or savings account will likely meet your needs.

Business cash management accounts

Brex

Brex’s business account has no monthly fees or minimum opening deposit. You can open up to eight accounts under one employer identification number, allowing you to have separate operating accounts for different business functions, like payroll and accounts payable.

Account holders can designate a portion of their balance to be invested in a business money market account that earns 4.92% annual percentage yield (APY), as of this writing. Funds deposited in a Brex business account are held across a network of FDIC-insured banks, providing up to $6 million in coverage.

You cannot deposit or withdraw cash from a Brex business account. Instead, you can add or move funds via check, ACH or wire transfer. Read our full review.

Mercury

Mercury’s free business checking and savings accounts are eligible for up to $5 million in FDIC coverage through its partner banks, which participate in sweep networks to maximize coverage. These accounts do not earn interest, but eligible businesses can apply for a Mercury Treasury account to unlock the higher yields characteristic of a cash management account.

Mercury Treasury accounts tap into low-risk investments, like Treasury bills and money market accounts, and earn up to 5.43% APY as of this writing. Investments made through your Treasury account are insured by the Securities Investor Protection Corp. (SIPC) for up to $500,000 — not the $5 million in FDIC insurance.

You need at least $500,000 in your Mercury Checking and savings accounts to open a Mercury Treasury account. Monthly fees for Mercury Treasury start at 0.05% of your deposits across all Mercury accounts. Read our full review.

Arc

Arc’s cash management account is comprised of three accounts: Operating, Reserve and Treasury. There’s no monthly fee for operating and reserve accounts; treasury accounts have a monthly fee that starts at 0.02% of your account’s value annually.

Arc’s reserve account earns up to 4.00% APY and its treasury account boasts an APY of up to 5.26%, as of this writing. The actual yield on Arc Treasury accounts will depend on how you divvy up funds between money market and Treasury bills.

Money held in Arc Treasury accounts is FDIC insured up to $5 million through sweep networks and partner banks. Operating and Reserve accounts are FDIC insured up to the standard $250,000 per depositor, per account.

Rho

Rho offers business checking and treasury accounts, as well as corporate cards and accounts payable services, for incorporated businesses with at least $1 million in annual revenue or equity capital.

Treasury accounts earn up to 5.06% APY, as of this writing, and offer up to $75 million in FDIC insurance via a partner network. Checking accounts do not earn interest and are FDIC-insured up to $250,000. Rho accounts do not include ATM access, so you can’t withdraw cash, but there are no fees for ACH or wire transfers.

All Rho account holders are paired with a dedicated support specialist, plus general customer support (via phone or live chat) from 8 a.m. to 9 p.m. ET, seven days a week.

What is a business cash management account?

Business cash management accounts are a combination of multiple business bank accounts offered by one financial institution, allowing you to easily manage and move funds between accounts. Most business cash management accounts include the following:

Operating account: Used for day-to-day operating expenses, this account functions similar to a business checking account. Some cash management accounts allow for multiple operating accounts, so you may have one for payroll and another for vendor payments, for instance.
Reserve account: This is essentially a savings account, and it may or may not earn interest, depending on the financial institution. At Mercury, for example, savings accounts do not earn interest, but Mercury Treasury accounts earn up to 5.43% APY. Arc’s reserve accounts do earn interest — up to 4.00% APY — but Arc’s Treasury account earns up to 5.27% APY, as of this writing.
Treasury account: Most business cash management accounts let you allocate funds in your treasury account across high-yield savings, business money market accounts and treasury bills. Money in treasury accounts can earn 5% APY or more, depending on the account and where you allot your money.

Personal cash management accounts are usually offered by brokerages. However, business cash accounts are typically available through fintech companies like Brex and Arc, which offer business banking services through an FDIC-insured bank or investment broker. And most leverage sweep networks to offer FDIC insurance well beyond the standard limit ($250,000 per depositor, per account type).

Benefits of a business cash management account

Potentially high APY. The best business cash management accounts advertise rates of 5.00% APY or higher. But what you actually earn depends on the account you choose and how you allocate your funds.

Streamlined money management. Business cash management accounts may consist of multiple accounts, with funds spread across varying investments. But you can easily view and manage everything from one dashboard.

No transaction limits. Brick-and-mortar business banks typically limit how many transactions you can process each month. And most business savings accounts only allow six transfers or withdrawals per month. But business cash accounts have no such limits. Account holders can move money in and out of accounts as needed, though some withdrawals may be delayed — more on that below.

Increased FDIC coverage. Deposit accounts are typically insured by the FDIC for up to $250,000 per depositor, per account. But business cash management accounts often partner with a network of banks to spread funds across multiple institutions. These “sweep” networks allow you to unlock greater FDIC insurance coverage while only dealing with one financial institution.

That extended FDIC coverage may not apply to all of the funds in your cash management account, though. With Arc, for example, funds allocated to the Treasury account are FDIC insured up to $5 million, but money held in your operating or reserve accounts is subject to the standard FDIC coverage limit.

Drawbacks of a business cash management account

Substantial cash flow needed. While some business cash management accounts don’t have a minimum balance requirement, you do need a large operating budget and a chunk of idle cash to reap the benefits of this type of account. Companies with smaller cash reserves can achieve similar benefits with separate business checking and high-yield business savings accounts.

Limited access to cash. Cash management accounts are generous with free ACH and wire transfers, but cash is less accessible. Most business cash accounts don’t allow cash deposits, and some, like Brex, do not allow you to withdraw money at an ATM.

Lack of banking diversity. While business cash management accounts do leverage a network of banks to extend FDIC insurance coverage, you’re still dealing with a singular entity — typically a financial technology company. Should the fintech or its banking partner fail, your funds, while insured, may be unavailable for a time. Using separate accounts across multiple business banks can help minimize the disruption to your operations should any one of those banks collapse.

Source: nerdwallet.com

Apache is functioning normally

August 24, 2023 by Brett Tams

Two weeks since the first report of a wildfire in Lahaina, Hawaii, the scope of the tragedy is coming into focus.

Search teams looked through every single-story residence in the disaster area and found the remains of 115 people. The death toll is likely to grow as teams now look through multi-story residences and commercial properties.

As of Aug. 21, the fire, which began on Aug. 8, was considered 90% contained and has burned through more than 2,100 acres, according to Maui County.

More than 2,000 buildings in Lahaina were destroyed or damaged by the blaze, according to an artificial intelligence model compiled by Esri, a geographic information system software provider.

The AI model reviewed satellite photos of Lahaina before and after the fire and estimated on Aug. 11 that 2,088 structures – about 63% of all structures in the examined area – had been destroyed or damaged.

Most buildings were homes. The Federal Emergency Management Agency estimated on Aug. 12 that the fire had destroyed 1,466 houses; 85% of all structures that were assessed were destroyed.

Based on Esri’s estimates of damaged structures and building types provided by USA Structures, nearly 1,800 residential structures were damaged in the fire. USA Structures is a dataset maintained by the Department of Homeland Security, the Federal Insurance and Mitigation Administration, FEMA, Oak Ridge National Laboratory and the U.S. Geological Survey.

The financial toll of the damage is vast for a town of about 12,000 people. Rebuilding costs could total more than $450 million for residential structures alone, based on Esri’s damage assessment and Maui tax roll data.

That includes $242.1 million in total building value for owner-occupied homes, $136.1 million for non-owner occupied homes, $40.7 million for short-term rentals and $23.2 million for long-term rentals, based on the building values of parcels that overlap Esri’s assessed damaged buildings.

The median residence assessed damaged by the fire was a 62-year-old, three-bedroom, two-bath structure valued at $242,700, excluding land value.

The damage also complicates hundreds of millions of dollars’ worth of mortgages. Lenders originated more than $670 million in mortgages for borrowers to purchase, improve or refinance single-family dwellings in the census tracts covering Lahaina in 2018-2022, the most recent Home Mortgage Disclosure Act data available.

Lenders originated more than 1,200 such loans over that period, led by Bank of Hawaii with 525, First Hawaiian Bank with 490 and HighTechLending Inc. with 470.

Many of the loans loans originated by these lenders were then purchased by Fannie Mae and Freddie Mac.

The Department of Housing and Urban Development has granted homeowners with Home Equity Conversion Mortgages or mortgages insured by the Federal Housing Administration a 90-day moratorium on foreclosures. HUD also announced a package of regulatory and administrative waivers for further assistance to those in the disaster area.

Homeowners may also borrow up to $500,000 to repair or replace their homes in a low-interest disaster loan from the Small Business Administration. Real estate professionals, too, have provided relief funds.

Officials’ primary efforts are still directed towards meeting the immediate needs of people in the disaster area; a full assessment of the damage and what rebuilding will cost will come later.

So far, FEMA has approved more than $5.6 million in assistance to nearly 2,000 households, including more than $2.3 million in initial rental assistance. Maui County officials estimate about 1,900 people are currently sheltered in hotels. The Environmental Protection Agency and Army Corps of Engineers have started debris collection.

Beyond the need for rebuilding, the wildfire’s long-term impact on insurance and affordable housing remain to be seen.

Hawaii is one of several states recently affected by natural disasters, including wildfires.

Will Robinson is a data journalist at HW Media.

Source: housingwire.com

Apache is functioning normally

August 22, 2023 by Brett Tams

Real estate is a relationship business. This statement is not a new one, nor is it particularly illuminating. However, it is something that we often need to remind ourselves of. With the focus on technology and efficiencies, it is sometimes easy to forget that people and human connections are at the very center of our business. And during our current market change, it is more important than ever to revisit and reconnect with people, your clients, prospects, colleagues, and partners.

Many real estate professionals are utilizing the early Fall as an opportunity to evaluate their business planning to end the year strong and set a pathway forward for the year ahead. As you look to the fourth quarter, I recommend looking at live networking events to best position yourself for growth and create even more opportunities. The benefits are threefold.

Gain market insights from industry experts.

Events are a great way to have access to people you may not normally cross paths with. Examples include industry analysts, economic pundits, local developers or even tax professionals. Hearing from new people may expose you to different ways of thinking, prompting innovative approaches in your own work. It may also expand your knowledge in a particular area, knowledge you can pass along to your sphere for their benefit.

Tap into best practices from colleagues.

It’s very easy to focus on what’s in front of you and knock things off your never-ending to-do list. But when we are that immersed in the day-to-day tasks, we lose sight of people around us who may offer helpful insights, perspectives or solutions. Taking the time to talk to your peers can pay off in spades in your own business. Attending an event also shifts your focus in a way that looks to the future.

Expand your referral connections.

It’s a small world when people start talking! Often, we discover ways in which we connect – a la six degrees of separation. Discovering how we connect to random strangers creates a firm foundation upon which to develop a new and seemingly vetted relationship. We’re connected after all. Events are a great way to meet new people, uncover these connections and expand your referral channels.

So, what type of events are best? The answer is that it doesn’t really matter. Whether you attend a local event sponsored by your association, chamber of commerce or small business forum, or look farther afield at state or national association events or brand business building forums, attending industry and business events has the potential for a strong return on investment.

At ERA^® Real Estate we are preparing to welcome our broker/owners and managers to our fall network event in Palm Desert, CA. The event is designed to provide targeted education sessions, dynamic networking experiences, inspiration from expert presenters and the information needed for attendees to standout in the current market and grow their business.

The networking that happens at live events supercharges your business and pushes you further down the path of progress on the roadmap to success. So, make it an eventful year and position yourself for a strong finish to 2023!

Alex Vidal is a lifelong real estate professional with expertise in leadership, sales, recruiting and more. He is president of ERA Real Estate and is responsible for the strategic growth and operations for the ERA global network of more than 40,000 affiliated brokers and independent sales associates and approximately 2,390 offices throughout the United Staes and 34 other countries and territories.

Find topics in marketing, technology, and social media for realtors, and housing market resources for homeowners. Be sure to subscribe to Digital Age of Real Estate.

Latest posts by RealtyBiz News (see all)

Source: realtybiznews.com

Apache is functioning normally

August 21, 2023 by Brett Tams

Scouted selects products independently. If you purchase something from our posts, we may earn a small commission.

If you know where to look, you can find stylish home decor, furniture, and accent pieces at Amazon—without spending all your coin. As a professional Amazon shopper, I’ve got lots of practice uncovering diamonds in the rough on the mega-retailer’s back pages. This month, I’ve been on the hunt for stylish flower vases and planters to bring some life back into my home decor collection. Like any self-respecting millennial, I also have a thriving indoor garden to tend.

So, I went to work looking for flower vases and planter pots worthy of receiving pride of place in my home. My goal was to find home decor pieces that don’t look like they were purchased on Amazon. Scroll through below to check out my picks.

Home Habitat Nordic Vases (Set of 2)

I love the combination of curves and straight lines in this duo of Nordic vases, which have a unique geometric shape. They have a speckled ceramic exterior and are stylish enough to set out on a coffee or kitchen table. At the same time, the neutral colors won’t draw too much attention, letting your flowers take center stage. These vases will pair perfectly with sculptural candles, which have become super popular in recent years. And, the smaller vase will also come in handy for short-stemmed flowers.

Buy Home Habitat Nordic Vases (Set of 2) at Amazon, $42

Rhapsody Studio Ceramic Vase

’70s-inspired design has been really popular among the Etsy set lately, and this matte ceramic vase would be a gorgeous addition to any bohemian home. Rhapsody Studio is one of those hidden gems on Amazon I mentioned earlier, and they have more vases and throw pillows worth a closer look too.

Buy Rhapsody Studio Ceramic Vase at Amazon, $39

Ban.do Vintage Inspired Orange Juice Vase

Ban.do is best known for its colorful journals and planners (which I also love), and the brand has expanded its Amazon storefront to include retro drinkware and vases. My favorite is this artist-designed ceramic vase, which looks like a retro carton of orange juice.

Buy Ban.do Vintage Inspired Orange Juice Vase at Amazon, $28

Female Form VaseDown from $30

This cheeky vase’s color is officially called “Blush Pink Bottom,” and that pretty much says it all. The female form is a popular subject in art and home decor—as it should be—and this elegant planter is sure to be a conversation starter. Some people might say it’s tacky or in poor taste, but I can’t think of a subject more worthy of admiration.

Buy Female Form Vase at Amazon, $16

Woodland Pulse Boho Planter Pot

This asymmetrical planter pot comes from a design studio called Woodland Pulse. Based in Oklahoma City, this family-owned small business makes unique modern planters made from 3D-printed recycled wood. Not only can this planter hold your new succulent or snake plant, but it can also double as an aromatherapy diffuser.

Buy Woodland Pulse Boho Planter Pot at Amazon, $42

Don’t forget to check out our coupon site to find home deals, including Home Depot coupons, Ashley Furniture coupons, Macy’s coupons, and Overstock coupons.

Apache is functioning normally

August 18, 2023 by Brett Tams

Taking on debt is a common way to finance a business, but it can be risky. If you can’t repay your small-business loan, it may fall into default. A business loan default can have a range of negative consequences, from losing your personal assets to bankruptcy.

Here, we’ll review what happens when you default on a business loan and offer tips on how to avoid the situation altogether.

How Much Do You Need?

with Fundera by NerdWallet

What is a business loan default?

A business loan goes into default when you repeatedly violate the legal terms of your loan agreement. When you default on your loan, you’ve continuously missed and failed to make payments — and have not reached a resolution with your lender. At this point, your lender has determined that you will not repay your debt.

Business loan default vs. delinquency

Before your business loan falls into default, it will be considered delinquent. Generally, your loan will be considered delinquent after you miss a payment — although this can vary based on your lender and specific business loan agreement.

Your lender may charge you a late fee once you’ve missed a payment, or it may offer a grace period — which could be a few days or a few weeks — and you can avoid the late fee if you make a payment during this time.

If you’re able to make a payment, this will bring your loan out of delinquency. If you continue to miss payments, on the other hand, your loan will likely fall into default.

What happens when you default on a small-business loan?

Once you start to miss your business loan payments, the lender will likely contact you to inform you of the delinquency and try to reach a resolution.

If you fail to respond and your loan falls into default, the lender will make every attempt to collect on the debt. This process may include consequences such as:

You lose your collateral

If you default on a secured business loan, your lender can reclaim your collateral to recoup its losses. For example, if you took out an equipment loan to buy a new tractor and the tractor served as collateral on the loan, your lender could seize this equipment to recover its money in the case of default.

Although unsecured business loans don’t require you to provide specific collateral, many lenders take out a Uniform Commercial Code lien on your business assets. In this case, the lender can still use your business assets to recover their losses if you default on the loan.

You lose your personal assets

Most lenders require you to sign a personal guarantee when taking out a business loan. A personal guarantee gives the lender the right to seize your personal assets to repay debt in the case of default.

When you default on an unsecured business loan, your lender will likely use this method to recover its losses (or a lien, if one is in place). With a secured loan, on the other hand, lenders will start with your pledged collateral and only turn to additional methods if your debt isn’t completely repaid.

Your lender sues you

If you can’t or refuse to use your business/personal assets to repay your debts, your lender can take legal action against you. When your lender sues you, you’ll be responsible for paying your outstanding loan balance as well as interest, fees and additional penalties. You may also have to pay court costs and attorney fees.

Through this legal process, the court will determine the appropriate course of repayment, which may include allowing the lender to garnish your wages, tax refunds or personal bank account to cover what you owe.

You damage your credit

Defaulting on a business loan can have a significant impact on your business (and sometimes personal) credit scores.

Your lender may report late payments, collections and judgments (the result of a lawsuit in which your lender had to sue you to recover debt) to the commercial credit bureaus — all of which can damage your business credit score.

Collections and judgments remain on your report for just under seven years, and while most personal accounts don’t report late payments until 30 days past due, business accounts are reported when payment is just one day late.

It’s important to note that even if your lender typically only reports to the commercial credit bureaus, it may report a default to the consumer credit bureaus as well. This type of damage to your business and/or personal credit can make it harder to qualify for financing.

How to avoid business loan default

It can be difficult to financially recover from a business loan default. If you’re falling behind on payments or anticipate that you won’t be able to repay your loan, here are some strategies you might consider:

Review your business finances

By reviewing your finances, you may be able to identify solutions that will allow you to continue making payments on your loan. For example, you might look through your cash flow statements to see whether you have enough funds at any given time to make your loan payments.

If your cash flow isn’t sufficient, you may reevaluate your expenses to determine whether there are areas where you can cut costs.

On the other hand, if multiple loans with high interest rates are negatively affecting your cash flow, you might consider business debt consolidation to combine these loans into one new loan — ideally, with a lower interest rate and better terms.

Talk to your lender

At the end of the day, the lender wants you to repay your debt. So, if you’re having trouble making payments, talk to your small-business lender before you reach the point of default.

If you contact your lender and you’re upfront and honest about your difficulties, they’ll likely be more willing to work out a resolution, such as:

Deferring your payments for a period of time.
Adjusting your loan terms to make payments more manageable.
Lowering your interest rate.
Allowing you to just pay interest on the loan for a period of time.

Work with a professional

If you’re struggling with your finances, it might be useful to work with a business professional, like a certified public accountant or an attorney. These experts can review your situation and offer personalized recommendations on how to manage your payments and avoid default.

A business attorney can also help you negotiate a resolution with your lender or a debt collection agency as well as assist you through legal proceedings (if necessary).

To find access to low- or no-cost financial and legal advice, you can reach out to your local Small Business Development Center or similar business service organizations, like SCORE.

Frequently asked questions

What percentage of small-business loans default?

According to the most recent Equifax Small Business Default Index, the business loan default rate is 2.56%.

What happens to a small-business loan if my business fails?

If your business fails, you’re still responsible for repaying your loan. As in the case of default, if you can’t repay, your lender may seize your collateral and/or personal assets to recover its losses.

What happens in a business loan default with a personal guarantee?

If you’ve signed a personal guarantee and then default on that business loan, your lender has the right to claim your personal assets to repay the debt you owe. If you don’t have enough assets to cover the debt or refuse to cooperate with your lender, they can also sue you for a judgment in court.

Source: nerdwallet.com

Apache is functioning normally

August 18, 2023 by Brett Tams

When I became an accredited investor, I found myself among an elite group with the financial means and regulatory clearance to access investments that many couldn’t. This opened doors to exclusive realms like hedge funds, venture capital firms, specific investment funds, private equity funds, and more.

Even though I had this “exclusive access” it took me awhile to start investing in alternative asset classes.

The Securities and Exchange Commission states that as an accredited investor, I possess a level of sophistication that equips me to craft a riskier investment portfolio than a non-accredited investor. While this might not be universally true for everyone, in my case, I had demonstrated the financial resilience to bear more risk (see barbell investing), especially if my investments took an unforeseen downturn.

One of the intriguing aspects I discovered was that investment opportunities for accredited investors aren’t mandated to register with financial authorities. This means they often come with fewer disclosures and might not be as transparent as the registered securities available to the general public.

The underlying belief is that my status as a sophisticated investor implies a deeper understanding of financial risks, a need for less disclosure on unregistered securities, and a conviction that these exclusive investment opportunities are apt for my funds.

On a personal note, as a practicing CFP®, I hadn’t always worked with accredited investors. Early in my career, I didn’t quite grasp the allure. But as time went on, I began to see the broader spectrum of investment options available to accredited investors.

As I learned more the clearer it became why this realm was so sought after. The variety and potential of these exclusive opportunities were truly eye-opening, reshaping my perspective on the world of investing.

Introduction to Accredited Investors

An accredited investor is an individual or a business entity that is allowed to trade securities that may not be registered with financial authorities. They are entitled to this privileged access because they satisfy one or more requirements regarding income, net worth, asset size, governance status, or professional experience.

The concept of an accredited investor originated from the idea that individuals or entities with a higher financial acumen or more resources are better equipped to understand and bear the risks of certain investment opportunities.

Historically, the distinction between accredited and non-accredited investors was established to protect less experienced investors from potentially risky or less transparent investment opportunities.

Regulatory bodies, such as the U.S. Securities and Exchange Commission (SEC), have set criteria to determine who qualifies as an accredited investor, ensuring that they have the financial stability and sophistication to engage in more complex investment ventures.

Criteria for Becoming an Accredited Investor

To be classified as an accredited investor, one must meet specific criteria set by regulatory bodies:

Criteria	Description
Income Requirements	An individual must have had an annual income exceeding $200,000 (or $300,000 for joint income with a spouse) for the last two years, with the expectation of earning the same or a higher income in the current year.
Net Worth Requirements	An individual or a couple’s combined net worth must exceed $1 million, excluding the value of their primary residence.
Professional Credentials	Recent updates have expanded the definition to include individuals with certain professional certifications, designations, or other credentials recognized by the SEC. Examples include Series 7, Series 65, and Series 82 licenses.
Business Entities	Entities, such as trusts or organizations, with assets exceeding $5 million can qualify. Additionally, entities in which all equity owners are accredited investors may also be considered accredited.

Best Investment Opportunities for Accredited Investors

Here’s a rundown of some of the top investment for accredited investors…

1. Fundrise

Minimum Investment: $500
Best for: Newbie Investors

Fundrise has revolutionized the real estate investment landscape. By democratizing access to real estate portfolios, it allows individuals to invest without the complexities of property management or the need for vast capital. The platform’s innovative approach provides exposure to a traditionally lucrative, yet often inaccessible, sector of the market

Through Fundrise, investors can access a diversified range of properties, from commercial ventures to residential units. The platform’s expert team curates these portfolios, ensuring a balance of risk and reward. With its user-friendly interface and transparent reporting, Fundrise has become a top choice for many venturing into real estate investments.

How it Works:
Investors start by choosing a suitable investment plan on Fundrise. Once invested, the platform pools the funds with other investors and allocates them across various real estate projects. As these properties generate rental income or appreciate in value, investors receive returns in the form of dividends or appreciation.

Pros:

Diversified real estate portfolios.
User-friendly platform with transparent reporting.

Cons:

Limited liquidity compared to public markets.
Returns are dependent on real estate market performance.

2. Equitybee

Minimum Investment: $10,000
Best for: Experienced Investors

Equitybee offers a unique platform that bridges the gap between private companies on the cusp of going public and potential investors. This innovative approach provides a golden opportunity for investors to tap into the potential of startups and other private firms before they make their public debut.

The platform’s primary focus is on employee stock options. By allowing investors to invest in these options, they can potentially benefit from their appreciation as the company grows. With a vast array of companies, from emerging startups to established giants, Equitybee presents a diverse range of investment opportunities.

How it Works:
Investors browse available stock options from various companies on Equitybee. Once they choose an option, they invest their funds, which are then used to purchase the stock options from the employees. If the company goes public or gets acquired, the investor stands to gain from the increased value of these stocks.

Pros:

Access to pre-IPO companies.
Diverse range of startups and established firms.

Cons:

Platform fee of 5%.
Potential risks associated with private market investments.

3. Percent

Minimum Investment: $500
Best for: Novice Investors

Percent stands as a beacon in the vast sea of the private credit market, illuminating a sector often overshadowed by traditional investments. This burgeoning market, valued at over $7 trillion, consists of companies borrowing from non-bank lenders. Percent offers a unique vantage point into this market, allowing investors to diversify their portfolios beyond typical stocks and bonds.

The allure of Percent lies in its ability to offer shorter terms and higher yields, combined with investments that are largely uncorrelated with public markets. This makes it an attractive proposition for those looking to step away from the volatility of traditional markets.

How it Works:
Upon joining Percent, investors are presented with a plethora of private credit opportunities. After selecting an investment, funds are pooled with other investors and lent out to companies seeking credit. As these companies repay their loans, investors earn interest, providing a steady income stream.

Pros:

Access to the burgeoning private credit market.
Potential for higher yields.

Cons:

Requires understanding of private credit dynamics.
Less liquidity compared to public markets.

4. Masterworks

Minimum Investment: $10,000
Best for: Novice Investors

Masterworks paints a vivid picture of art investment, blending the worlds of finance and fine art. Traditionally, investing in art was a luxury reserved for the elite. However, Masterworks has democratized this, allowing individuals to buy shares in artworks from world-renowned artists.

The platform’s strength lies in its expertise. From authentication to storage, every facet of art investment is handled meticulously. This ensures that investors can appreciate both the beauty of their investments and the potential financial returns.

How it Works:
After registering on Masterworks, investors can browse a curated selection of artworks. They can then purchase shares, representing a fraction of the artwork’s value. Masterworks takes care of storage, insurance, and eventual sale. When the artwork is sold, investors share the profits based on their ownership.

Pros:

Opportunity to diversify with fine art.
Managed by art experts.

Cons:

Art market can be unpredictable.
Long-term investment horizon.

5. Yieldstreet

Minimum Investment: $15,000
Best for: Advanced Investors

Yieldstreet stands at the intersection of innovation and alternative investments. It offers a smorgasbord of unique investment opportunities, ranging from art to marine finance. For those looking to venture beyond the beaten path of traditional stocks and bonds, Yieldstreet presents a tantalizing array of options.

The platform’s allure lies in its curated selection of alternative investments, each vetted by experts. This ensures that while investors are treading unconventional grounds, they’re not stepping into the unknown blindly.

How it Works:
Investors begin by browsing through the diverse investment opportunities on Yieldstreet. After selecting their preferred asset class, their funds are pooled with other investors and allocated to the chosen venture. Returns are generated based on the performance of these assets, be it through interest, dividends, or asset appreciation.

Pros:

Wide range of alternative investments.
Potential for high returns.

Cons:

Some niches may be too specialized.
Requires a deep understanding of chosen investments.

6. AcreTrader

Minimum Investment: $10,000
Best for: Newbie Investors

AcreTrader, as its name suggests, brings the vast expanses of farmland to the investment table. It offers a unique opportunity to invest in agricultural land, combining the stability of real estate with the evergreen nature of agriculture. With the global population on the rise, the value of fertile land is only set to increase.

The platform meticulously vets each piece of land, ensuring only the most promising plots are available for investment. This rigorous process ensures that investors are planting their funds in fertile ground, poised for growth.

How it Works:
Investors peruse available farmland listings on AcreTrader. After selecting a plot, they can invest, effectively owning a portion of that land. AcreTrader manages all aspects, from liaising with farmers to ensuring optimal land use. Investors earn from the appreciation of land value and potential rental income.

Pros:

Stable, tangible asset.
Potential for steady returns.

Cons:

Returns may be slower compared to other platforms.
Limited to U.S. farmland.

7. EquityMultiple

Minimum Investment: $5,000
Best for: Experienced Investors

Summary:
EquityMultiple is a testament to the power of collective investment in the real estate sector. By leveraging the principles of crowdfunding, it offers a platform where multiple investors can pool their resources to finance high-quality real estate projects. This collaborative approach allows for diversification and access to projects that might be out of reach for individual investors.

The platform’s strength lies in its curated selection of real estate opportunities, ranging from commercial spaces to residential properties. With a team of seasoned real estate professionals at the helm, EquityMultiple ensures that each project is vetted for maximum potential and minimal risk.

How it Works:
Upon joining, investors can explore a variety of real estate projects. After committing to a project, their funds are pooled with other investors to finance the venture. Returns are generated through rental incomes, property appreciation, or the successful completion of development projects.

Pros:

Diverse real estate opportunities.
Managed by real estate professionals.

Cons:

Market risks associated with real estate.
Longer investment horizons.

8. CrowdStreet

Minimum Investment: $25,000
Best for: Advanced Investors

CrowdStreet stands as a pillar in the commercial real estate investment domain. With its vast experience and industry connections, it offers a platform where investors can tap into prime real estate projects across the nation. From bustling urban centers to tranquil suburban locales, CrowdStreet provides a diverse range of investment opportunities.

The platform’s expertise ensures that each project is meticulously vetted, offering a blend of potential returns and stability. For investors looking to delve into commercial real estate without the hassles of property management, CrowdStreet is an ideal choice.

How it Works:
After registration, investors can browse a myriad of commercial real estate offerings. Upon investing in a project, CrowdStreet manages the investment, providing regular updates and ensuring optimal project execution. Investors earn returns based on the project’s performance, be it through rentals, sales, or project completions.

Pros:

Access to prime commercial properties.
Established platform with a proven track record.

Cons:

High minimum investment.
Market dependency for returns.

9. Mainvest

Minimum Investment: $100
Best for: Newbie Investors

Mainvest offers a refreshing twist in the investment landscape, focusing on the heart and soul of the American economy: local businesses. From quaint cafes to innovative startups, Mainvest provides a platform where investors can support and benefit from the growth of small businesses in their communities.

The platform’s community-centric approach ensures that investments are not just about returns but also about fostering local economies. For those looking to make a difference while earning, Mainvest presents a unique opportunity.

How it Works:
Investors can explore various local businesses seeking capital on Mainvest. By investing, they essentially buy a revenue-sharing note, earning a percentage of the business’s gross revenue until a predetermined return is achieved.

Pros:

Support and invest in local businesses.
Low minimum investment.

Cons:

Risks associated with small business investments.
Returns might be slower compared to other platforms.

10. Vinovest

Minimum Investment: $1,000
Best for: Novice Investors

Vinovest uncorks the world of wine investment, offering a blend of luxury, history, and financial growth. Fine wines have been a symbol of opulence for centuries, and Vinovest provides a platform where this luxury becomes an accessible investment.

With a team of wine experts guiding the way, the platform ensures that each wine is not just a drink but an investment poised for appreciation. From sourcing to storage, Vinovest handles every facet, ensuring the wine’s value grows over time.

How it Works:
After signing up, investors set their preferences and investment amount. Vinovest then curates a wine portfolio based on these preferences, handling sourcing, authentication, and storage. As the wine appreciates, so does the investor’s portfolio.

Pros:

Unique investment opportunity in fine wines.
Managed by wine connoisseurs.

Cons:

Long-term holding for optimal returns.
Market influenced by external factors like climate.

11. Arrived Homes

Minimum Investment: $100
Best for: Novice Investors

Arrived Homes offers a fresh perspective on real estate investment, focusing on the charm of single-family homes. While skyscrapers and commercial complexes often dominate real estate discussions, single-family homes offer stability, consistent returns, and a touch of nostalgia.

The platform’s strength lies in its focus. By concentrating on single-family homes, it offers investors a chance to tap into a stable real estate segment, benefiting from both rental income and property appreciation.

How it Works:
Investors browse available properties on Arrived Homes. After selecting a property, they can invest in shares, representing a portion of the home’s value. As the property is rented out, investors earn a share of the rental income. Additionally, any appreciation in property value benefits the investors.

Pros:

Low minimum investment.
Quarterly dividends.

Cons:

New platform with a shorter track record.
Limited to single-family homes.

12. RealtyMogul

Minimum Investment: $5,000
Best for: Novice to Experienced Investors

RealtyMogul stands tall in the commercial real estate investment landscape. It offers a platform where diversification meets opportunity, presenting a range of commercial properties for investment. From bustling office spaces to serene residential complexes, RealtyMogul provides a plethora of options for investors to expand their portfolios.

The platform’s prowess lies in its dual approach. Investors can either dive into non-traded REITs or make direct investments in specific properties. This flexibility ensures that both novice and experienced investors find opportunities that align with their investment goals.

How it Works:
Upon joining RealtyMogul, investors can choose between REITs or direct property investments. Their funds are then channeled into these real estate ventures. Returns are generated through rental incomes, property sales, or successful project completions.

Pros:

Wide range of commercial properties.
Both REITs and direct investments available.

Cons:

Market risks inherent to real estate.
Higher minimums for direct investments.

The Future of Accredited Investing

The world of accredited investing is dynamic and ever-evolving. Emerging trends suggest a shift towards democratizing investment opportunities, with regulatory bodies considering more inclusive criteria for accredited investor status. This shift aims to balance the need for investor protection with the recognition that financial acumen can come from experience and education, not just wealth.

Furthermore, technological advancements are playing a pivotal role. The rise of blockchain and tokenized assets, for instance, is creating new avenues for investment and might reshape the landscape of opportunities available to accredited investors.

xAs the line between traditional and alternative investments blurs, the future promises a more integrated, inclusive, and innovative environment for accredited investors.

The Bottom Line – Top Investments for Accredited Investors

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Understanding the role and opportunities of accredited investors is crucial in the modern financial landscape. While the distinction offers privileged access to unique investment opportunities, it also comes with increased risks and responsibilities.

As the world of investing continues to evolve, potential accredited investors are encouraged to stay informed, conduct thorough research, and seek professional advice. The realm of accredited investing, with its blend of challenges and opportunities, promises exciting prospects for those ready to navigate its complexities.

FAQs – Investment Options for Accredited Investors

Why is there a distinction between accredited and non-accredited investors?

The distinction is primarily for investor protection. Accredited investors are deemed financially savvy or stable enough to handle the risks associated with unregistered securities, which might be riskier and less transparent.

What investment opportunities open up for accredited investors?

Accredited investors gain access to a broader range of investment opportunities, including hedge funds, private equity, venture capital, certain private placements, and more.

Are investments for accredited investors riskier?

While not inherently riskier, these investments often come with less regulatory oversight and transparency, which can increase potential risks. It’s essential to conduct thorough due diligence before investing.

Do accredited investors have any advantages in the public stock market?

While the primary benefits of being an accredited investor pertain to private investment opportunities, the financial acumen and resources associated with accredited investors can also be advantageous in public markets, especially when considering more complex investment strategies.

About the Author

Jeff Rose, CFP® is a Certified Financial Planner™, founder of Good Financial Cents, and author of the personal finance book Soldier of Finance. He was a financial planner for 16+ years having founded, Alliance Wealth Management, a SEC Registered Investment Advisory firm, before selling it to focus on his passion – educating the masses on the importance of financial freedom through this blog, his podcast, and YouTube channel.

Jeff holds a Bachelors in Science in Finance and minor in Accounting from Southern Illinois University – Carbondale. In addition to his CFP® designation, he also earned the marks of AAMS® – Accredited Asset Management Specialist – and CRPC® – Chartered Retirement Planning Counselor.

While a practicing financial advisor, Jeff was named to Investopedia’s distinguished list of Top 100 advisors (as high as #6) multiple times and CNBC’s Digital Advisory Council.

Jeff is an Iraqi combat veteran and served 9 years in the Army National Guard. His work is regularly featured in Forbes, Business Insider, Inc.com and Entrepreneur.

Apache is functioning normally

August 11, 2023 by Brett Tams

Ever dreamed of buying an investment property for short-term vacation rentals? Whether you’re setting up shop in Columbia, SC, or in a Rochester, NY, apartment, we found experts to share their stories and offer valuable lessons they’ve learned along the way to help newcomers troubleshoot short term rental problems with practical solutions. Read on to learn how to turn your property into a five-star rental.

1. Expanding your network in the STR landscape

“I have been a realtor since 2009, primarily specializing in selling investment properties used as short-term rentals,” shares Danny Margagliano from Destin Property Expert. “Recently, my wife and I purchased our first condo, which we are self-managing as a short-term rental property. One of the most significant challenges we encountered at the outset was selecting a Property Management Software (PMS). With numerous companies available online, the decision can be overwhelming. A valuable piece of advice I can offer is to join larger Facebook groups dedicated to short-term rental properties, Airbnb, or VRBO. These groups provide access to experienced hosts who are more than willing to offer assistance.”

2. Navigating a competitive market with trifecta-like customer service

“Having worked for a decade in a fiercely competitive vacation rental market like San Diego – first as a property manager and now as a business owner – I’ve pinpointed three pivotal aspects that spell success for your enterprise,” shares Jeff Nisuis, owner of Titan Beach Rentals

“Firstly, customer service must reign supreme for both your guests and owners. We prioritize responding to guest messages and calls within an hour, while also ensuring monthly reviews or updates for owners.
Secondly, a well-rounded tech stack is indispensable for achieving this feat. This begins with implementing a property management system such as Guesty to streamline and automate your company’s workflow and communication.
Lastly, the cornerstone of it all is accurate pricing. Employing a dynamic pricing tool to automate nightly rates and monitor market trends and demands not only saves time but also enhances pricing precision, revenue, and occupancy rates.”

Courtesy of Titan Beach Rentals

3. Offering virtual guides and demonstration videos

“Every home in our program is unique, and it’s impossible to keep track of every quirk in each home without a system. One of our secrets to successfully addressing guest questions is dedicating time to create a virtual guide for each property,” recommends Hilton Head Rentals. “Most guest queries can be resolved using our virtual guide. Even if guests don’t use the guide, we rely on it to swiftly and accurately respond to their questions.

We also produce a series of ‘quick and dirty’ videos demonstrating how to operate certain unique features in the homes, such as turning on the oven hood, adjusting the thermostat, or activating spa jets. It’s somewhat amusing to revisit our own videos months later to remind ourselves how things work in specific houses. This approach reduces the need for dispatching personnel, saving us money, and enables us to promptly enhance the guest experience by promptly addressing their inquiries.”

Courtesy of Hilton Head Rentals

4. Turning a million-dollar setback into success with rapid recovery and communication

“’I’m not going to lie, we are really freaking out over here’, the owner confessed to me two weeks after I signed her property – my first valued over one-million dollars. Unbeknownst to all of us, their previous management company canceled all bookings in June and July upon switching, resulting in the loss of nearly 30-thousand dollars in expected revenue,” shares Joel Harris from Port Aransas Airbnb Vacation Rental Property Management by Grand Welcome.

“The lessons I learned along the way are one, when confronting challenges, formulate a plan using the tools at your disposal and relentlessly execute it. Within 24 hours, our ads were up and running. I maintained constant communication with the owners, updating them about our progress, actions, and results two to three times daily. As our ads gained momentum, I shared our analytics daily and later on a weekly basis. After three days, we secured our first booking. Another followed just two days after. Gradually, the pressure eased as reservations steadily flowed in.

Second, maintain frequent and transparent communication, substantiated with real data and examples. In the absence of information, our minds concoct stories. To counter this, we provided our owners with detailed and factual information about the issue at hand. We outlined the steps we were taking to resolve it, employing regular and effective communication. And behold, despite starting from scratch this summer, the property that had us ‘freaking out’ became one of our top earners.”

5. Crafting unique spaces and thoughtfully designed rooms

“At Urban Sands we strive to curate a unique experience at each one of the properties we manage. We spend a lot of time with our interior designer, Theresa Danna at Designed to a T. Together we are able to create inviting spaces that help maximize booking revenues for our clients. Finding the most reliable vendors, cleaners, and admin in our area has really helped us overcome any challenges that are thrown at us,” suggests Chloe and Bryce Mayer, Owners of Urban Sands Vacation Rentals.

Courtesy of Urban Sands Vacation Rentals

6. Embracing technology for extra booking and revenue growth

“As a vacation rental property manager, the biggest challenges I experienced were two-fold – homeowners and guests. The most common issues several of my homeowners had in the past were related to bookings and revenue generation,” shares Kristian Lewis from New Braunfels Airbnb Rental Property Management by Grand Welcome.

“At Grand Welcome we ensure our properties are being highlighted and getting exposure on over 40 national and international travel websites to provide homeowners with consistent marketing growth. Additionally, we use dynamic pricing algorithms to establish optimal pricing based on seasonality, demand, and market trends within our region. For guests, we want to provide high-level boutique service during every phase of their visit from booking to check-out, so we have dedicated guest service teams who are available 24/7 to assist with any questions, issues, and concerns almost immediately.

Each of our properties is equipped with an in-home concierge tablet that includes a welcome guide with detailed self-check-in instructions, local recommendations, and contact information for our local team. The implementation of comprehensive software, at all levels, not only improved guest and owner satisfaction but also increased efficiency, revenue, and retention. Embracing technology while creating personalized touch points has been pivotal in elevating our brand and the overall experiences of owners and guests who utilize our vacation rental management services.”

7. Focusing on local expertise in vacation rental management

“As a vacation rental property manager, we are constantly working to improve the entire experience of the guests we host, as well as the owners that we partner with. As we look to stay ahead of the ever-evolving industry, we are focused on differentiation by being experts in our market,” suggests Compass Vacation Properties.

“We focus on local recommendations, things to do, behind-the-scenes activities and hidden treasures in our communities. This solution not only improves guest satisfaction but also drives interest in, and business to many of our fellow local small business owners. Embracing the impact of the community has been instrumental in enhancing our guests’ experiences and improving our vacation rental management operation.”

8. Automating and integrating processes for success

“At Landlord Studio, we believe that embracing technology isn’t just about convenience – it’s about transforming the way you think about your rentals,” suggests Charles Chan, CEO of Landlord Studio. “Integrating solutions into your property management not only creates new efficiencies but is also a key step in developing your portfolio into a scalable and profitable business. Therefore, whether you have one or a hundred units, it’s essential that you possess the right tools – tools designed for you – to help you stay on top of everything from income and expense tracking to managing cleaning and maintenance.”

9. Maximizing value in challenging times with consistent occupancy

“During challenging times, it’s often the core and simplest strategies that produce the most consistent value and return to homeowners. While a small percentage of all homes can hold the same rates year-over-year, or even increase them, that’s not the case for a majority of homes,” says Portoro.

“Every home in the short-term rental market is its own product line with 365 opportunities to generate a sale. That means that occupancy is the primary driver of revenue, and not nightly rates. Smart property management means having the operational infrastructure to successfully produce a full calendar even at lower daily rates.

This helps the property manager and homeowner achieve the following:

Total revenue generated close to or at year-over-year expectations
Ability to maintain the property as an STR under portfolio (avoid long term rental (LTR) discussion)
Steady stream of income to maintain operations, housekeeping, and vendor relations”

10. Streamlining rental management processes through online platforms

“Embracing technology is a critical stride towards achieving success in the vacation rental industry. As technology providers, we are dedicated to helping hosts and vacation rental businesses regain valuable time and boost their bottom line. Often, property operators find themselves consumed by tasks like addressing guest queries, managing calendars, pre-arrival guest communication, and coordinating cleaning services,” says Fred Bassili, Marketing Manager at Hostfully.

“However, the implementation of suitable technology can drastically reduce or even eliminate these laborious duties. The impact is profound – we’ve witnessed business owners trimming over 100 hours of weekly work to just a few hours, or attaining consistent five-star reviews by bolstering efficiency and preventing errors. When seeking technology solutions, it’s essential to define your specific challenges, attend multiple demos, and ask pertinent questions during these sessions. Since vacation rental software is not one-size-fits-all (each has strengths and weaknesses), finding the best fit for your business is paramount”

11. Setting a price strategy

“The short-term rental market has become extremely competitive and saturated with an increase of supply following the pandemic. The increase in vacation rental rental supply has created an environment where nationwide occupancy has decreased year-over-year compared to prior years. As a result many owners and operators have decreased their nightly rates to try to increase their bookings,” says Sean Bakhtiari, Founder of Seacoast Vacation Rentals.

“We have a different strategy. First, we’ve invested in new amenities and design features to make our properties standout from the crowd and create better guest experiences. Secondly, although our portfolio occupancy rate dropped slightly (four percent year-over-year), our overall revenue grew seven percent thanks to “Average Nightly Rates,” increasing by 11 percent. When many owners and operators have been reducing their nightly rates, we’ve increased them and simultaneously reduced our minimum nightly stay requirements. This flexibility has been extremely beneficial for all our properties, in this more competitive environment.”

12. Maximizing revenue and guest satisfaction

Master Vacation Homes focuses on reducing maintenance costs for owners and maximizing rental income. We are one of largest property management companies in Orlando with over 500 properties boasting the highest returns in the industry.

Here’s a few reasons we are able to bring above average returns to our clients:

Revenue management: We have a team responsible for pricing the homes that follow a strategic methodology that focuses on high occupancy X high daily rates.
Superior home care: Currently we have 16 Property Managers caring for 30-40 homes each. They are responsible for the inspection of each check-in, dealing with all things related to the care of their homes and the investors that own each property.
Operations and guest support: Our logistics operations are unmatched by the competition. We have designated field teams for each city area limited by a certain amount of homes so they are not overwhelmed. Our guests have support just minutes away if an emergency occurs.
Setting a target market: Over time we learned one of the most important lessons so far. We needed to say no to clients that were not aligned with the way we operated and with our philosophy. Firing clients is counter intuitive, because as a business, you always want as many clients as possible. But in this industry, every owner wants to impose their wishes and demands on how they think their home should be managed. It turns out, it is impossible to manage multiple homes differently. After a few years of experience and seeing what works best, we slowly transitioned to work solely with investors rather than the traditional owner of vacation homes. This solidified our identity as a Management Company and allowed us to focus in the areas we excel.

Courtesy of Master Vacation Homes

13. Researching markets before you enter

“We cannot stress enough how important it is to do your research first before you start your vacation rental business,” recommends Mashvisor. “The industry is more competitive than ever, so you need data, and not just observations or hearsay, to help you in making decisions. Many users of our platform end up being surprised to find out that their first choice of location might not be as lucrative as they thought. So they’re glad to have used a real estate analytics website to not just confirm or deny their initial hypothesis but to also help them find another vacation rental market to invest in.”

14. Prioritizing customer service and resolving problems quickly

“While being the owner of MATCH Property Managers, we have experienced many challenges in the vacation rental side of the business, but have worked diligently as a team to overcome the challenges associated with renting vacation properties. Guests sometimes have maintenance issues while on vacation, and we have found that top-notch customer service can easily derail any problematic issues that could create a bad review for your rental company,” suggests MATCH Property Managers

“The key advice for vacation rental managers is to maintain 24/7 availability for guests in case of issues. Utilize answering services for prompt communication. Always respond with appreciation, conveying that guest satisfaction is a top priority. Actively listen to guests, gather necessary details for repairs, and apologize for any inconvenience. Keeping $25.00 gift certificates on hand showcases care for guest experience. Avoid showing inconvenience at guest calls, as respect can be lost. Post-issue resolution, follow up with guests to ensure their comfort. Ultimately, prioritize creating a memorable and enjoyable vacation experience.”

Courtesy of MATCH Property Managers

15. Hiring local property managers for out of state STR owners

“After working in the short-term rental industry for over 13 years now, we have discovered that the most successful vacation rental properties have engaged owners. To help owners who live in another town or state from their rental property take advantage of this, we developed a hybrid property management system,” shares Scott Westfall, Owner of CGP Real Estate.

“This provides responsive on-site management through a local team, while the owner manages their online presence and booking preferences. Giving owners a way to be hands-on while operating long-distance has helped them increase bookings, revenue, and guest satisfaction by providing the personal marketing touch guests are looking for – without sacrificing quick and professional response to on-site management and guest needs.”

16. Adapting to changing market conditions

“As a vacation rental property manager, a common challenge we face in Panama City is trying to compete for occupancy during off-season. Coming out of COVID restrictions in 2021, Panama City Beach finds itself in a very saturated market regarding Vacation Rentals. Occupancy has taken a hit and as new rentals continue entering the market, everyone’s peak season seems to be getting shorter,” says Panama City Beach Airbnb Rental Property Management by Grand Welcome.

“Our approach was to implement a hybrid system of renting short-term during the summer, and mid-term during the late fall and winter. To do this we not only appeal to the Snowbird crowd, but also to the overlooked traveling professional industry. This has helped keep business on the books when otherwise we may have faced vacancies.”

17. Fostering repeat visits

“We established Vacation Rentals of North Myrtle Beach due to local companies lacking urgency and professionalism. With a modest start, we now manage 130+ properties in 13 years. Our focus is on collaborating with property owners, acting as partners to nurture their business,” Barefoot Resort Vacations suggests.

“As hands-on owners, we and our dedicated team strive for exceptional guest experiences, aiming for repeat visits. Any issues during stays are promptly communicated, demonstrating our commitment to swift solutions. Challenges arise, but we face them with an open mind and humor. Our motto for owners: everything is fixable, repairable, and paintable – we’re determined to deliver a sense of urgency and professional results.”

Courtesy of Barefoot Resort Vacations

18. Increasing bookings with The Big Three

“After more than $100 million in guest bookings over the course of my career in vacation property management, we’ve discovered a combination of property features which maximize guest interest, boost rental rates, and extend occupancy in nearly every market. Internally known as ‘The Big Three,’ the combination of ‘pets, water, fire’ is the insider secret,” suggests Wes Walker, CEO of Popersum.

“Pet friendly properties routinely generate 20% (and sometimes more) than non pet properties. A water feature, such as a hot tub or modern pool, natural water view, or even an elaborate fountain also captures online attention and generates higher bookings and rates. Finally, fire as in a photographic fireplace or a fire feature near seating, extends most seasonality and produces higher interest. By combining The Big Three, competing with the traditional ‘location, location, location’ properties is not only possible, but often an outperforming combination.”

19. Forecasting a conducting thorough inspections

“Effective vacation rental management encompasses more than just maintaining the property. We’ve embraced a forward-thinking approach, consistently conducting inspections to preemptively tackle any looming issues. Coupled with technological tools, such as predictive analytics, we’ve been able to forecast high-demand periods, ensuring optimal occupancy and unwavering quality. This comprehensive strategy has solidified our reputation as a reliable choice in Austin,” recommends STR Management.

20. Nurturing a versatile team

“As is true with any business, your employees are critical to your success. We are a relatively small vacation rental management company so when hiring our reservationists and managers, we look for people who are willing and able to be a jack-of-all-trades and exhibit the flexibility and smarts to jump in on whatever is needed and to expect the unexpected,” recommends Beach-N-Bay Getaways.

21. Adopting a software management platform when you expand

“The primary focus for property managers should be on delivering excellent experiences for guests and homeowners. However, the complexities of managing monthly statements, booking inquiries, and pricing strategies can often divert attention from this vital role. As portfolios grow, pursuing excellence becomes even more challenging, and guest reviews may slip,” shares Gather Vacation Rentals.

“At Gather, we’ve confronted these challenges firsthand. Our solution extends beyond a mere set of tools; it’s a comprehensive partnership designed to streamline various facets of property management. This includes simplifying financial reporting through an integrated accounting system, efficiently handling inquiries, creating optimal pricing strategies backed by real-time data, and enhancing marketing efforts through targeted campaigns. Moreover, we offer risk and portfolio management insights, provide business development resources to fuel growth, and support a robust tech stack that aligns with the evolving needs of the industry.”

Source: redfin.com

Home Builders Need Workers, Buildable Lots and Distribution Transformers

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The top five most affordable major housing markets in the second quarter of 2023 were:

Top five least affordable major housing markets—all located in California:

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Builders Again Pressed Into Using Sales Incentives

Business cash management accounts

Brex

Mercury

Arc

Rho

What is a business cash management account?

Benefits of a business cash management account

Drawbacks of a business cash management account

What is a business loan default?

Business loan default vs. delinquency

What happens when you default on a small-business loan?

You lose your collateral

You lose your personal assets

Your lender sues you

You damage your credit

How to avoid business loan default

Review your business finances

Talk to your lender

Work with a professional

Introduction to Accredited Investors

Criteria for Becoming an Accredited Investor

Best Investment Opportunities for Accredited Investors

1. Fundrise

2. Equitybee

3. Percent

4. Masterworks

5. Yieldstreet

6. AcreTrader

7. EquityMultiple

8. CrowdStreet

9. Mainvest

10. Vinovest

11. Arrived Homes

12. RealtyMogul

The Future of Accredited Investing

The Bottom Line – Top Investments for Accredited Investors

FAQs – Investment Options for Accredited Investors

About the Author

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A Start-Up No More

Innovation Plays a Starring Role

Adjust priorities, offer training

Start with a test run

Tailor it to your company

Expect bumps in the road

1. Expanding your network in the STR landscape

2. Navigating a competitive market with trifecta-like customer service

3. Offering virtual guides and demonstration videos

4. Turning a million-dollar setback into success with rapid recovery and communication

5. Crafting unique spaces and thoughtfully designed rooms

6. Embracing technology for extra booking and revenue growth

7. Focusing on local expertise in vacation rental management

8. Automating and integrating processes for success

9. Maximizing value in challenging times with consistent occupancy

10. Streamlining rental management processes through online platforms

11. Setting a price strategy

12. Maximizing revenue and guest satisfaction

13. Researching markets before you enter

14. Prioritizing customer service and resolving problems quickly

15. Hiring local property managers for out of state STR owners

16. Adapting to changing market conditions

17. Fostering repeat visits

18. Increasing bookings with The Big Three

19. Forecasting a conducting thorough inspections

20. Nurturing a versatile team

21. Adopting a software management platform when you expand