Reply to Ideas to scale up from a single vacation rental bringing over $26,000/month

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]if you scale up, it will not be unique anymore[/quote]

Yeah... In our best-case scenario, we scale as quickly as possible to get to 100 of those structures (1-5 per state), then package up this $30m/year 80% profitable business and sell to investors for $200m before competitors copy us too much and lower prices. I would give this scenario a 2% chance of actually happening, but we will do everything possible to get there :)

So far it seems like private investors are the best next step.[/quote]how much of the potential $200m do you think the private investors will require?[/quote]

If we give up half the company now (49%) for a $4m investment - it will give us 6 new structures in 12 months. Then, we can refinance all 7 with a business appraisal that takes the profits into account. Ideally, that ($5m) + income from 7 ($2m) would give us enough to do another set of 10-12 new properties, without further dilution. Rinse & repeat. So 1 -> 7 -> 18 -> 40 -> 86 -> 150+ = sell
Obviously wishful thinking, rosy glasses, etc. But it's not in the realm of the impossible.[/quote]

I don't see anyone giving you $4mm at this point for 49% of the business which is a few months old and you had equity of 0.5mm in it.Super high income needs to be "stabilized" e.g. last for a few years for anyone to believe in it. Appraisal of you "structure" based solely on income stream won't be likely, particular if they know anyone can build just the same fir 0.5 mm they won't give you $4mm for your project.

You need to finance yourself and grow slowly.

Or steal from US government or something similar to get broader initial capital base[/quote]

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