No Surprises
Fees, Risk, and What Happens If We Underperform.
Most operators bury this. We put it on a public page so you can read it before the first call — and hold us to it after the close.
Compensation
How We Get Paid.
One-time fee at launch. Ongoing share of net cash flow. That's it.
Build & Launch Management Fee
One-time, paid at closing. Scope: deal coordination, renovation oversight, vendor sourcing, furnishing project management, listing build, and 90-day post-launch optimization. Smaller turnkey builds at the low end; full builds at the high.
Ongoing Profit Share
Calculated monthly on NOI (gross revenue minus operating expenses, NOT minus mortgage). Investor receives 80% of NOI. We earn when the property performs.
What We Do NOT Charge
Cleaning, maintenance, supplies, and software are pass-through at cost. Invoices available on request.
If Things Slip
What Happens When a Property Underperforms.
Underperformance isn't a possibility — it's a certainty at some point. Here is exactly what we do when it happens.
On-Track
Trailing 6mo within 10% of underwriting
Standard monthly reporting. Quarterly call available.
Watch
Trailing 6mo 10–20% below underwriting
Diagnostic memo within 14 days. Pricing strategy review, listing audit, comp re-analysis. Owner call within 30 days.
Material Underperformance
Trailing 6mo 20%+ below underwriting
Written remediation plan within 30 days covering pricing, positioning, capex, or exit scenarios. Profit share waived on any month NOI falls below debt service.
Risk Disclosure
What Can Go Wrong.
Real risks, written plainly. If any of these surprise you on the first call, we haven't done our job.
STR Regulation
Local regulation is the single biggest external risk. Markets we operate in have been stable, but cities can and do change rules — caps, permits, density limits. We track this in every market and disclose any pending legislation we're aware of when presenting a deal. We will not pursue properties in markets actively considering moratoria.
Interest Rate Sensitivity
We currently underwrite at the actual rate available to you at the time of offer — not a forward assumption. If you finance, debt service can move materially. Every deal includes a sensitivity table showing cash flow at +1% and +2% rate movements. We will not present a deal that goes negative under a +1% rate shock without flagging it explicitly.
Insurance
Insurance costs in coastal and mountain markets have risen 15–30% annually for three consecutive years. We get a binding quote (not an estimate) before presenting any coastal property and rebuild underwriting around the actual number, not last year's number.
Demand Volatility
Short-term rental demand is more volatile than long-term. A recession, an extreme weather year, or a competitor adding 200 units in your submarket all impact revenue. Our underwriting assumes 62-66% occupancy in most markets — well below comp-set median — to absorb this.
Liquidity
Real estate is not liquid. A typical sale takes 90-180 days. If you need access to capital in under 6 months, STR investment is the wrong vehicle. We say this on the first call, not the last.
Operator Risk (Us)
We are a small team. If our key personnel become unavailable, day-to-day operations continue through our vendor network, but you would want to evaluate replacement management. We carry E&O insurance and maintain documented SOPs so any qualified operator can step in within 30 days.
Our Line in the Sand
Things We Will Not Do.
- ✕Project returns we can't defend with comparable sold properties
- ✕Use 'top of market' rates in base-case projections
- ✕Markup vendor invoices or take referral fees from service providers
- ✕Pursue properties in markets with pending STR moratoria
- ✕Sign a deal where the underwriting requires rates to drop to work
- ✕Hide problems in monthly reporting — issues get a phone call, not a footnote
Founding Partners
First Three Investors: Reduced Profit Share for Life.
We're new. We know it. Our first three investor partners pay a 15% profit share (vs. our standard 20%) on the first property — for the entire hold period.
It's our way of saying thank you for backing us before there's a track record. The Founding Partner pricing closes after the third deal funds, no exceptions.