WHERE'S YOUR SKIN IN THE GAME?

Jack Laurier is not a fund. We see the private equity model as broken. We structure each property partnership as a standalone investment. We do well only when the investment generates cash profits and grows, and our time is spent entirely on value creation at the asset level, rather than fundraising.

We offer a service to property investors (not LPs) that allows them to earn strong risk-adjusted returns, by investing in uniquely hedged, very well executed luxury vacation rental deals.

We don’t co-invest with our owner partners. We are operators. And we’re one of the best in the world at generating profits with this asset class.

I don’t believe that the more traditional route of sponsoring an acquisition with a minority investment somehow determines how much conviction I have in the opportunities I present to owner partners.

And I believe that a) the quality of the deals we present and b) our track record can speak for themselves. 

The deals we present are completely free of the restrictions normally associated with traditional pooled real estate investments. 

This means our partners own the asset and everything in it. And we own the operating system that generates the shared profits. 

There’s enough downside protection built into the asset itself (at least in the deals we source) that make the asset class one of the smartest places to park capital for investors who like real estate. And our owner partners enjoy the flexibility to actually pick their investments or exit their position early if they really need to.

The partnership is ultimately a marriage kept together by choice, not by force of investment contract.

We believe this is what best reduces downside risk for everyone, keeps interests better aligned, and creates stronger long-term partnerships that are focused on upside.

And we like to work with property partners that share our thinking, who can focus on the quality of the deals we present to them, and who understand the value of our track record.

Historically, we have a proven track record of outperforming 99% of all luxury vacation rental properties and managers, both globally and locally within our operating markets. 

That’s in rental income, operating GRMs, and annual profits generated on a per property basis. 

We operate assets in the 5x to 6x GRM range, and generate margins above 50%. To put that into perspective, 90%+ of the luxury vacation rental inventory is operating at GRMs above 15x, with most assets producing negative cash flow for their owners.

But our track record also goes beyond generating rental profits throughout the hold, because we’ve done some profitable renovation projects too.

So far, our premium renovation projects have produced record prices per square foot and investment equity multiples of 2.5x (e.g. generate $250k in value on a $100k budget).

Our operational strategy and design experience is one of our biggest competitive advantages. 

We invest $40,000+ of cash and resources, at minimum, into the onboarding of a new asset rental operation. Which goes into the planning, the marketing asset creation, and the onboarding of each new asset we manage. 

It goes into time, market research, finding the deal, travel expenses, photography, videography, post-production, branding, ad graphic & web design, professional copy, display & media placements, custom booking funnel creation, interior design and FF&E plans, dedicated staff sourcing, recruiting and training, etc…

And then, we have anywhere from 3 to 6 months of 24/7 booking operations before getting our first commission cheque. Which is another $30,000 to $60,000+ invested in labour hours.

All in, we’re looking at $70,000 to $100,000+ in total resources allocated before we start earning revenue.

Albeit the majority of resources allocated are labour and not cash, but it’s zero sum.

And that’s why our services aren’t suitable for most properties, owners or investors. 

We're not interested in working around property defects or extended delays on important maintenance solutions. And we’re not going to market uninspired properties or waste time nickel and diming over value-add improvements on building systems, design, FF&E, OS&E, etc…

Without a nominal engagement fee and minimum CAPEX investment from owner partners into our luxury property improvement plans, we are then disproportionately invested into the success of the rental operation. And this is a situation we do not engage with.

Instead, our management services focus on the kinds of properties that offer enriching lifestyle experiences to even the most discerning guest. Beautiful spaces, in picturesque settings, filled with gratified guest paying market-leading ADRs.

We work with owners who can get their minds around that story and willing to do what it takes to make sure things stay that way.