Luxury Air BnB Investment By The Beach
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
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
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
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).
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).
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.
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).
—————————————— 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.
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