Luxury Air BnB Investment By The Beach

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Our business model is simple:

1. Buy 314 Beach Lofts & Air BnB the units.
2. Generate annual profits for our investors.
3. Sell when market conditions are favorable.
— Jim Simcoe, Managing Member

Investment Summary

  • Investors receive:

    • 10% annual preferred return for the life of the project

    • Pro-rata share of 75% of all operating profits

    • Pro-rata share of 75% of all sales profits

  • Profit distributions start in 2020

  • Hold time is 3-5 years

  • Exit plan is to sell the property within 3-5 years

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About 314 Beach Lofts

  • Address: 314 N. Cleveland Street, Oceanside, CA, 92054

  • Description: Luxury vacation rental lofts in a walkable community by the beach in Oceanside, California

  • Brand new construction, built using the latest in green building methods & materials

  • 10 residential lofts, 2 retail condos

  • Mix of 2 & 3 bedroom lofts, 1000-2100 square feet

  • Open floor-plans, luxury appliances, oversized balconies

  • 2 community decks & ocean view deck

  • Approx. total retail square feet = 1370

Exit Plan

  • Create a monthly income stream from short-term rentals (Air BnB, corporate housing, etc)

  • Distribute annual profits to all investors

  • Sell the property in 3-5 years when market conditions warrant or keep and cash flow

  • If market conditions/city regulations change we can exit by:

    • Selling the units as condos

    • Selling the building as an apartment building

    • Selling the building as short-term corporate housing development

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Investment Specifics

  • You are investing in the LLC that owns both the 314 Beach Lofts property and the 314 Beach Lofts HOA.

  • Investors receive a preferred rate of return of 10% annually.

  • Profits will be paid annually starting Q1 2020.

  • Self-Directed IRA investment, 1031 exchanges & foreign investment are allowed.

Our Competitive Advantages

  • HOAs written specifically for Air BnB allowing us to be one of the only properties operating legally in the Oceanside area.

  • Executive team is made up of experts in Air BnB, real estate and hospitality.

  • Brand new luxury homes with upgraded appliances & finishes; big windows, lots of natural light, etc.

  • Close to everything (beach, restaurants, shops, transit, etc).

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Why This Deal Works

  • Property can be utilized for vacation rentals, corporate short-term housing, long-term rentals or a combination of all three.

  • Flexible exit plan- With a final condo map already in place the units can be sold at any time as condos.

  • Very little competition: 314 Beach Lofts is the only new construction project in the Oceanside market that legally allows short-term rentals.

  • Large market of vacationers looking for short-term rentals year round in Oceanside.

  • Great location for corporate housing- can serve SD, OC and LA easily with nearby Amtrak station.

  • Lots of amenities for vacationers including ocean view deck, 2 patios, oversized balconies, extra storage, oversized elevator, etc.

  • Located in a walkable community with a Walk Score of 90 (out of 100).

Risk Mitigation

  • The approved condo map in place allows us the flexibility to sell one or all of the units at any time if/when favorable conditions present themselves OR if city regulations change.

  • We control the HOA so there is no risk of another owner in the building shutting us down.

  • We have three clear ways to make money outside of Air BnB. We can operate as a corporate rental; long term rental or sell the units. This allows us to mitigate market conditions and city regulations effectively.

  • Very little competition: 314 is the only new construction in the immediate market that legally allows short-term rentals.

  • Large target market of vacationers looking for short-term stays year round in Oceanside.

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About Jim Simcoe, Managing Member

  • Managing Member for Beach Vacation Properties, LLC

  • Sustainable home developer and author

  • Certified Green Building Professional

  • Real Estate Broker

  • Featured on NBC, Fox, SmartMoney.com, San Diego Insider TV

  • Past speaking engagements include: San Diego State University, University of California at San Diego, University of San Diego, etc.

  • Published in Personal Real Estate Investor Magazine, BiggerPockets.com, San Diego Business Journal, EcoHome, etc

How to Invest

  • Review the Investment documents (Operating Agreement & Capital Investment Agreement)

  • Complete the investment documents, sign and make arrangements to deposit your funds.

  • We accept check, wire transfers and self-directed IRA funds

  • To discuss a larger investment as a capital partner or a debt position contact Jim Simcoe (760.271.7128).

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—————————————— FAQs ——————————————

Q - What is the minimum investment amount?

A - The minimum investment amount is $50,000.


Q - Will you be offering debt positions (mezz debt or second trust deed funding) in addition to equity positions?

A - Yes, please contact Jim Simcoe to discuss the debt positions available.


Q - How do I make money?

A - As an investor you make money in two ways.

  • You receive a preferred return of 10% per year.

  • You get your share of profits based on how much you invest relative to the total investment pool. For example, if you invest $100k and we raise $2M (investment pool), you’d have 5% of the total profit pool.


Q - How are profits split between investors and the company?

A - Investors receive 75% of all profits. Our company receives 25%. At time of sale our company does not receive any profits until all investors have been paid back 100% of their initial capital.


Q - Can I invest through my self-directed IRA or 1031 Exchange?

A - Yes. Call us to discuss how best to set this up.


Q - Where can I get a copy of the investment documents and projected proforma?

A - Call us to get a link to those documents.


Q - What is the exit plan?

A - We have three potential exit plans on this deal:

  • Sell the building as a whole in 3-4 years.

  • Refinance it in three years and cash-flow indefinitely.

  • Sell units individually in 3-4 years if/when market conditions are favorable


Q - What advantages do we have over other Air BnB properties?

A - We have several advantages including:

  • We target three distinct STR communities: Air BnB renters, corporate housing renters and gov’t contractor renters (due to proximity to Camp Pendleton).

  • Our building is brand new and built to luxury standards.

  • We control the HOA and have City cooperation to operate as an Air BnB property.


Q - When will construction be completed?

A - Construction is scheduled to be completed by July 2019.


Q - What plans do you have to increase units (and thus increase profits)?

A - We are currently working with our architect to add 6-8 units to the development. This would be done by moving a few walls and reconfiguring a few entranceways. Once the plans are complete we’ll present to the city. With their approval we would take one unit offline at a time while we complete the work. Luckily none of the work is structural so it should be completed relatively easily/quickly.

To Learn More About Investing Contact:

Jim Simcoe

760.271.7128

Jim@SimcoeCapital.com

(text for fastest response)