ABOVE MARKET RATE OF RETURN
- Vacation Rental Capital is able to pay above market rates of return due to the lack of lending by banks, especially in the commercial and investment real estate markets.
- Vacation Rental Capital pools investor money and earns income based on the yield between the interest rate paid by developers and the rate paid to the investors.
- Investors that fund the majority of any property have the opportunity to earn the direct interest rate.
- Vacation Rental Capital operates in above average real estate markets. These markets, mostly on the west coast and Hawaii, have the most desirable climates and stable real estate markets to ensure growth and safety.
- Vacation Rental Capital works with developers that have an excellent track record and have a proven history of creating value with successful projects.
- Vacation Rental Capital works on projects where the developer has a significant stake in the property and has a minimum equity position requirement on each property.
- Vacation Rental Capital will be on first or second lien position on the title to each property. Exceptions are made where a particular investor contributes a majority of the funding for the project, in which case this investor will be on title and earn the direct interest rate with Vacation Rental Capital earning a fee from the developer.
- Vacation Rental Capital has a draw system in place so that developers must reach certain milestones in a project before funds are released.
- Developers are required to have the necessary insurances that are deemed fit for each property.
- Vacation Rental Capital works with and trains realtors and developers to source vacation rental properties that are in our niche markets and that can be purchased at below market value.
- Vacation Rental Capital ensures that all properties have the proper zoning and permitting to qualify as legal vacation rentals.
- All interests in the property are held by contractual rights that are recorded on the deed to each property through a title office.