How to Build Your STR Business Through Fundraising (Ep513)

By Jasper

October 10, 2022

Do you dream of growing your short-term rental portfolio to tens or even hundreds of units?

Yes, a successful host can invest their profits in buying additional STRs. But it doesn’t take long to run out of your own money.

So, what if you could use other people’s money to purchase more vacation rentals? How does it work to fundraise capital from investors for your STR business?

Daniel Kalenov is Chief Investment Officer at Diversus, a boutique private equity firm that invests in luxury hospitality and affordable housing. Since 1999, Daniel has analyzed, purchased, repositioned and managed income-producing real estate assets, and he has an MBA from Harvard Business School.

On this episode of Get Paid for Your Pad, Daniel joins me to explain how his mother’s experience with the stock market inspired his interest in real estate investing and why he made the shift from single-family rentals to the STR industry.

Daniel shares his best advice for hosts who want to grow their portfolio through fundraising, describing how a private equity fund works and how to educate prospective investors on STR opportunities.

Listen in for insight on partnering the right deal with the right investor and learn how Daniel has built a global portfolio of ultra-luxury STRs, mobile home parks and boutique hotels.

Topics Covered

How Daniel and his mother emigrated from Russia to the US
Why Daniel’s mother lost much of her retirement savings and how that experience led him to real estate investing
What inspired Daniel’s shift from investing in single-family rentals to the STR industry
How Daniel’s private equity fund was born when he ran out of his own money
Daniel’s advice to STR hosts who want to grow their portfolio through fundraising
Why Daniel suggests sitting down face-to-face to educate prospective investors around the opportunity in STRs
How Daniel explains private equity as pooling money from individuals to fund a real estate deal
How Daniel leveraged fundraising to scale his portfolio
Why Daniel focuses on luxury hospitality and affordable housing
Daniel’s 2 boutique hotel projects in Belize and why he chose that market
Why it’s crucial to couple the right deal with the right investor