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The Short-Term Shop

The Short Term Show with Tamar Hermes

The Short Term Show with Tamar Hermes

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The Short Term Show with Tamar Hermes

Tamar Hermes discusses her unique approach to passive short-term rental investing. Partnering with a skilled investor, she brings capital into the deals while her partner manages the properties, allowing Tamar to earn a substantial return with minimal involvement.

Avery: Hey guys, welcome back to the Short-Term Show. Today we have Tamar Hermes, a very good friend of mine, who does things a little differently than a lot of us in her short-term rental investing journey. She’s a passive short-term rental investor, so Tamar, welcome to the show! Thank you very much for coming. Tell us a little bit about yourself and how you got started.

Tamar: Well, thanks for having me, Avery. This is so much fun to hang out and share what I’m doing with short-term rentals. I’m going to speak not just about my overall investing portfolio but really focus on short-term rentals since that’s what this show is about.

Essentially, what happened was that I knew people were making a lot of money in Airbnb, but I just felt like my schedule didn’t permit managing it all and setting up the systems. So, I met a partner who was really skilled at short-term rentals, and he didn’t want to use all of his cash, so I brought cash into the deal. We made it an investment.

Together, we own two large homes in Gatlinburg, and we’re about to buy a third. We bought those together, and he set up all the systems, does all the management. I make my return, which is between 15 and 20 percent annualized, plus I have equity in the deal. That’s how it works—we keep finding properties, and as we like the deals, we go in on those together.

Avery: Awesome! Can you give a little detail? Take one of those deals for example and give us some high-level numbers—what the purchase price was, the amount you put into it, the amount you’re getting out, and how you’re getting paid (monthly, quarterly, annually)?

Tamar: Sure. So, generally, we bought these right before COVID, so everything has a little bit of a caveat. Obviously, COVID slowed things down for a couple of months, so it wasn’t a traditional way we would do this, but I’ll take one of the properties.

One of them was purchased for, I believe, $800,000. I put in around $83,000, if I remember correctly. I don’t have the exact numbers, but that’s pretty close. I make about $20,000 on my money, and I own, I believe, 12.5% of that deal. The way it works is that I don’t pay the 25% fee for management—my partner manages it.

Of course, we do have people who take calls, and things come up, no matter how automated you are. So, we have someone managing that. There’s also the cleaning staff. After all those costs, that’s pretty much what I make. I should also say, I’m not on the loan for those properties; my partner handles that part. We’re pretty even on equity, but I’m essentially a passive investing partner.

Avery Carl

Avery Carl

Avery Carl was named one of Wall Street Journal’s Top 100 and Newsweek’s Top 500 agents in 2020. She and her team at The Short Term Shop focus exclusively on Vacation Rental and Short Term Rental Clients, having closed well over 1 billion dollars in real estate sales. Avery has sold over $300 million in Short Term/Vacation Rentals since 2017. An investor herself, with a portfolio of over 100 Doors, Avery specializes in connecting investors with short term rentals with the highest ROI potential, and then training them to manage their short term rental from their smart phone from anywhere in the world.

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