Rentals
I am located in Mexico and have 2 vacation rental properties that I have a acquired through long term leases that I have then turned around and rented short term with the owners permission. The profit has been phenomenal and I would like to expand. My expenses when acquiring new properties consist of the deposit and furnishings, which usually only take about 6 months to get back. I have proven the concept and would now like to set up a business name, website, etc. My question is this: What is the best way to borrow money so that I can expand more quickly? I have many people interested in the business and would give me money but I want to make sure I am not giving the farm away. Any advice would be greatly appreciated.
4
Answers
Fractional CTO
Many ideas come to mind.
You might book some calls with people you follow on Clarity, to flesh some of these out better.
Start a Kickstarter project with high dollar perks of some number of weeks.
Setup a travel site about how to enjoy your particular part of Mexico (sites, activities, seasonal fruit, festivals) + buy traffic from Outbrain + Taboola to your travel site. Then sell your services as a broker to book lodgings. You will first book out your properties, then charge a fee to other property owners to book out their properties.
There are many spins on the above idea.
For example, cut deals with some City's Chamber of Commerce to do an export seminar, where you charge $5K-$10+ for a 30 day excursion for people to come + learn about products they can import from your area.
Now that I think about it, I did created a set of recordings... geez... must of been nearly 10 years of first one, about generating cashflows in other countries. If this might interest you, PM me + I'll try to find these recordings + resources.
Answered about 7 years ago
Entrepreneur,, Head of Product, Consultant
This is a super interesting business, probably listing your properties in Airbnb you can get high quality (high paying) customers.
On the raising for the business itself, I would do a mix of a loan + share of benefits. For example you get X on a 5% interest a year, and if the property makes more than 50% profits over ROA then you give a Y%. This way you make it safe for the people that are investing (with a sure return) plus a nice bonus if everything goes well. If things go bad, then you know the max you might pay is X * (1+5%) which you can diversify between several properties.
This is just an idea, and a way to get the people that give you the money a good deal. Remember that the important part is that everyone is happy, if not, on a model like yours which is low in capital investment, but high in need for cash flow will have limited growth without future investors.
Answered over 6 years ago
Experienced Associate
The best way to grow your vacation rental business is by creating your business online presence. You can launch your own website and app or get registered on thor-party booking platforms to expand your business reach and create brand awareness.
But for the vacation rental business, it is always advisable to at least have your booking website where travellers can browse and book on your website.
With the visible boom in the tour and travel industry, the percentage of online bookings has increased. Talking about the current scenario the booking rate on the business website has also increased with the benefit of direct contact with the team, availing discounts and opting for services of their choice which get limited when booking from a third-party booking website.
Along with this what perk I can see of launching your own vacation rental website is that:
1) With a website of your own, you can now get direct booking saving the cost of commission that you have to pay on third-party booking websites.
2) It becomes easy for the company to increase their visibility in search engines
3) Collecting reviews from the customers becomes easy as the majority hesitate to share a review on third-party booking websites due to data security reasons.
Other than the above mentioned ways you can always opt for business growth strategies like:
a) PPC campaigns (paid promotion on the relevant website)
b) Get registered on online vacation rental platforms like Airbnb etc.
c) Create your social presence on platforms like Facebook, Instagram etc where people generally spend most of the time searching for places to travel.
d) Try content marketing by creating quality blogs, articles, videos or graphics that are niche specif to general organic and referral traffic to your website
e) If you already have a vacation rental website and you are not satisfied with the performance you should definitely opt for SEO services that will help improve your website ranking and performance.
If you are planning to launch your own vacation rental website should consider niche specialized software like FunAway for their website development. Such vacation rental software offers you market-ready features saving costs on customization and integration if opted for other eCommerce software.
The link to FunAway is mentioned below. Do consider if you are planning to upgrade your website or launch a new vacation rental website:https://www.fatbit.com/online-travel-activity-marketplace-solution.html?=pc
Answered over 2 years ago