Recently I read an article that stated some eccentric star is now renting their apartment our for 40,000-60,000 per week (not including gratuity and taxes!). This highlights a not often mentioned real estate investment possibility that I like to call the “private time share”. We have all heard about going to some “presentation” where you can win a trip to Vegas or some such thing to sit through a sales pitch for a new fractional-ownership development.
I know many that have been happy with these investments and just about as many who felt they wasted their money…the jury is still out on this one. I for one would like to have full control over my investment rather than leaving those reigns in the hands of a large faceless corporation.
If you decide to buy a luxury apartment/vacation home in a trendy vacation spot (that you also like of course!) then you can have a professional management company rent out the weeks that you don’t plan on being in the house yourself. This will pay for the property and all it’s costs with the added bonus of giving you cash flow in between your personal vacations! This strategy is not new, basically the old-school AirBNB for the sophisticated real estate investor.
Granted, you may not be able to get the 40,000/week that a celeb can for their property – but keeping your prices lower than a hotel in a good location you can command very lucrative rates for your property and the housekeeping/management fees/maintenance could all be deductions on your taxes – make sure you ask your tax team to confirm these details. Imagine having your annual share holders meeting for your real estate corporation at your favorite vacation spot? ( I can see you on that beach now)
To your success,
– Respect the hustle