HOW INVESTING WITH 'HIRSH BROTHERS' WORKS ?
Below you find all the answers to frequently asked questions at one glance. If you still have questions, just give us a call and we will be happy to answer them for you.
QUASTIONS & ANSWERS
01. How much do I have to invest?
Our investing-model is set to $100,000 per investor, per property.
02. What type of investments?
Hirsh Brothers invests in income producing short-term rentals. We hand pick single-family properties below market value in high desired locations in Miami, remodel them for small money and rent them for top dollar per night. The plan is to hold the property for about 5 years, generate high income, gain equity and sell to make maximum profit.
03. Why can I only invest $100,000?
The reason behind our set investment amount is to have equal partnership and make investing affordable for all budgets. Furthermore, we believe in investing in multiple properties, rather than a single one to maximize income and reduce risk.
04. Why investing in Miami?
The ROI for property investors in Miami is impressive and the tourism industry booming. In just ten years, the Miami real estate has seen a cumulative appreciation of 22.64%, ranking it among the top 30% of cities in America. That’s roughly 2% growth each year.
05. How long to exit?
In average we keep each property for about three to five years until exit. We are watching the market consistently. When we feel we can sell the property for highest value, we sell.
06. Why vacation rentals?
Investing in short-term vacation rentals is an excellent strategy for investors to gain high income in a short period. This is due to the fact that short term rental prices are about 25% higher than long-term rental prices. Vacation rentals also give us the option to rise our nightly rates during high seasons and lower them if needed during slower seasons.
07. What is the average return per investor?
We estimate an average of 120-150% return per investor in total. This rate is based on a 10-14% annual cash flow plus the upside at exit.
08. Do I have any liabilities?
When you invest with Hirsh Brothers you are safe from liability. To remove the legal liability, we use a certain legal structure, known as an LLC, to hold each property. LLC law specifically stipulates that no member of the LLC is personally liable for the obligations of the LLC. A member cannot be sued in connection with any matter concerning the LLC and is shielded from legal liability.
09. Do I have to pay taxes?
As an investor with Hirsh Brothers you are only subjected to your individual income taxes. All other tax-related matters will be taken care of by our in-house accountant.
10. What are the risks in investing with Hirsh Brothers?
Investing with Hirsh Brothers involves very low risks, but like any other investments, you could face losses. To minimize those risks, we invest with our investors as partners and only pick properties we believe in. We pick the best and most favorable vacation spots and buy short-term rental properties below market value that have the potential to generate high income. To be on the safe side, we calculated our average return with a 30% vacancy rate and the lowest nightly rate.
11. Do I have to pay any additional fees?
No. The only fee besides the investing amount is the sign-up fee in order to set you up with our investment group, we charge a sign-up fee of $900 per transaction. This covers everything, from the paperwork involved, negotiating and closing the deal, to managing the property, sending quarterly reports etc.
12. How often do I get paid?
We pay our partners on a quarterly basis via wire transfer and include detailed reports of all income and expenses, along with occupancy rates, breakdowns etc. At exit all proceeds will be disbursed to our partners by our attorney/title company.
13. Who will manage the property?
The property will be managed by our partner company Rility Vacation Management.
14. Who will sell the property at exit?
Hirsh Brothers will determine the best time to sell the property for top dollar and will take care of the entire closing process.
15. Can I get my money out earlier?
You can transfer your units with your rights and interests at any time. Please take a look at our operating agreement section 9 for more information. (Right of first refusal, unit transfer etc.)
16. Who is doing the accounting?
The accounting is done by our partner company Short-Term Rental Accounting.
17. How can I start investing today?
Ready to invest with us? Simply fill out the form below or give us a call!