Need help with $100,000,000... Believe it or Not- I need help.

[Deleted35442]

That exists. It's in Silicon Valley, and it's for a fraction of the price.

For example, I stayed with a friend who's in a $3.5MM house. 9 people total in the house. Average company valuation of people living there at $5MM. He's paying $1,200 a month to share a small bedroom. So for $2,400, he can have his own bedroom/bathroom (studies show that physical proximity to people make you closer and more trusted; do you really need more?). On top of that, he can walk down one block, and step into an $8MM startup house. A block further, a $4MM hacker house. A block further he has Stanford where he can recruit anyone, etc.

Access to all the top talent in the world. Costs as cheap as $1,200 a month. Human capital value a lot higher than paying $50k a month to live in the Gatsby house.

^ This guy gets it. Look, the market for a conducive co-living environment for entrepreneurs does exist and there's much demand for it in places like here in NYC. Look at the success of WeWork, they do what you're proposing with office space and are taking off fast and expanding globally (supposedly leasing new office space by the week). Taking it that step further with co-living space is even more lucrative AND interestingly enough, while this might be happening in places like Silicon Valley, etc, it's starting to catch on big time here in NYC and one of the only guys starting this are called Founder's House where people are more than happy to pay $1200 a month to bunk in a room of 3 other guys in places like Dumbo, Brooklyn.

I pitched this to a very well off individual that I'm collab'ing with ($100mm net worth at least) here in NYC and he sees the value in it. Not to go completely off-topic. But if you have cash, some time, and want a part in this, hit me up.

I think I speak for every millionaire or aspiring millionaire here when I say that these guys don't really want "roommate situations" after they've made it and like to fly under the radar after that time and have their own pad. Look what approximately one month's rent at your mansion gets you for a whole year in Gramercy (Manhattan), right by Union Square Park. 3bd: https://newyork.craigslist.org/mnh/nfb/5345357230.html

As far as the value proposition for this project @iAmTrade. It's weak and you couldn't sustain this if you had even one vacancy. Your costs are way too high, your margins way too slim, and there are too many uncertainties that @JustKris @MJ DeMarco @theag and @Ubermensch addressed.

 

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[McFirewavesJr]

Sounds crazy enough to work lol

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[Achilles]

nvm gatsby house. I think the problem lies in getting the owner of the property to take on rent purchase, unless he is some form of distressed. Secondly, the odds of anyone wanting to live in Kingspoint with 150k a month money to want to live with a bunch of strangers is slim to none. I dont see it. Unless Gatsby has some magical value to it and touched their lives.

 

[Antw]

This sounds like a cool concept. Just asking... Is all of this hypothetical or did you speak with the owners of the home? Is he/she willing to go with a deal like this? From my travels not all people that have properties they don't live in are in dire need to sell them.

Also, it looks like the home used to be owned by billionaire Tamir Sapir and was purchased by the current owners for 15.85 million and they never moved in.

 

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[Ecom man]

As a person who should clear near 3/4 of a million in profit this year, I would never do this in a million years. If I am spending any large amount of money for rent/house payment (5k, 10k, 50k etc. a month) I would want the privacy of my own home/apartment. I have a hard time believing entrepreneurs would want to pay 50k a month to rent a room in a mansion. If you run it like a hotel/vacation rental where it is x per night or x per week for a room then It would be cool to rent a room for a few days or even a week.

 

[MKHB]

Try @MKHB

Hey @Leo Hendrix

This is was a probate sale a couple of years ago, they picked it up for 13.8M and are trying to unload it for 100M. They (new owners) are not going to enter into any deal/arrangement with anyone other than all cash, pre-vetted buyers. They are trolling for a sovereign fund or HNW investor that is looking to park offshore money in a solid US trophy asset, e.g., Chinese, Russian, Middle Eastern.

Appreciate the initiative @iAmTrade , but you might want to scale down your approach a bit, how about a live/work incubator in Scottsdale AZ? https://www.thefastlaneforum.com/co...ive-at-the-starbucks-in-say-scottsdale.61623/

 

[iAmTrade]

I think you're missing something.

I was merely wondering why such a concept would not work for homes of such large constituted price lines.

Have gotten that answer. It works with a certain demographic, upon where people currently making a few Million $ a year are more interested in owning as opposed to living in anything co-op.


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[RHL]

This is was a probate sale a couple of years ago, they picked it up for 13.8M and are trying to unload it for 100M. They (new owners) are not going to enter into any deal/arrangement with anyone other than all cash, pre-vetted buyers. They are trolling for a sovereign fund or HNW investor that is looking to park offshore money in a solid US trophy asset, e.g., Chinese, Russian, Middle Eastern.

Ten minutes is the difference between goodness and greatness.

That ten minutes of research was all that was needed to figure things out.

 

[liquidglass]

I know the original point and question have been thoroughly answered and/or nullified. But I would like to point out two things.

1) two years ago the house was valued at just over $30M. I don't like your math or the owners math and I would hesitate do business with either of you.
(unless the buyers intentions were in line with @MKHB of course)

2) "millionaires living like billionaires" doesn't work with the billionaires are sharing a house. In that case they would better off to live like millionaires and have their privacy.

@AgainstAllOdds is right about this kind of thing around silicon valley...however, you still would be losing money with the costs associated.

Have gotten that answer. It works with a certain demographic, upon where people currently making a few Million $ a year are more interested in owning as opposed to living in anything co-op.

You needed a other people to tell you that?

 

[MKHB]

Have gotten that answer. It works with a certain demographic, upon where people currently making a few Million $ a year are more interested in owning as opposed to living in anything co-op.


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It could work if the economics were more favorable, but this is a timing issue and rampant speculation is preventing this.

In Fastlane vernacular you are not solving a need. There is no problem. The present owner is a speculator and he's not looking for recurring cash flow, he instead wants the max possible yield (IRR) via asset sale.

However, If this were 2012 when the asset in receivership/or distress, yes, you could have solved the lender's problem by taking a non performing asset off their balance sheet.

 

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[MattCour]

I didn't look through everything in regards to maintenance and clearly didn't include that in my price per room calculation. From what I gathered just moments ago for the property size, 40-50k$ a month would suffice. Thanks on the tip-out to look into it.

Definitely need to.

It's an interesting concept, but execution sounds next to impossible. It would seem easier to acquire an apartment building that generates cash flow that normal people would live in.

 

[JohnZ123]

If you're thinking about this why not just buy an apartment?

 

[M&A]

What is the largest business deal you have ever done ?

I remember you had another hypothetical thread about clearing over million on some quick sourcing deal, how did that pan out ?

I feel like your trying to jump straight from little league to MLB in one go correct me if I'm wrong.

 

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