Let the short-term rental experts build your portfolio for you
After years of teaching individuals how to start and run their own short-term rental portfolios, Richard Fertig, Founder & Chief Investment Offer at Stomp Capital, realized there was a growing number of individuals who were interested in the investment merits of short-term rentals but didn’t want to take on the operational burden of running the properties themselves. That’s when Stomp Capital was born.
We take a portfolio approach
At Stomp, our goal is to build a portfolio of short-term rentals that are diversified across many different aspects, including seasonality, geography, client type, activity/attraction, etc. Through portfolio construction, we aim to smooth out the “chunkiness” of cash flows at the portfolio level by owning a variety of assets that peak in different parts of the year.
Target Returns at a Glance
18%Net Internal Rate of Return (IRR) over 10-year fund life
5.0xNet Multiple on Invested Capital (MOIC) over 10-year fund life
QuarterlyCash distributions from operations, once stabilized (expected 2024)
We manufacture alpha through active management
Sourcing Off Market
When possible, we secure the first look at unique properties that aren’t actually for sale. Our Outer Banks and Nosara properties are prime examples. In many instances, we’re able to buy at extremely attractive valuations — in part because of Richard’s brand and visibility in the STR arena.
We’re securing our future by buying land in key, forward-thinking locations at attractive valuations. When Stomp owns the land, we can develop for years to come. Like a spigot, we can dial things up when it’s a good time to develop or slow things down when it’s not an ideal environment.
Built to Short-Term Rent
Our team has extensive ground-up development experience, which we lean on to develop purpose-built short-term rentals. We design our properties with multiple flexible common areas, en-suite bathrooms, commercial kitchens, and other location-specific amenities. By knowing our niche, we can design a better stay from the beginning.
We seek out deals where others aren’t looking - avoiding crowded markets and bidding wars - and focus on value-add opportunities. We like to buy inexpensive assets and redevelop them to their best short-term rental use, monetizing that upside. In certain instances, we have changed zoning/ordinances to allow short-term rental uses.
We create bespoke, custom experiences for our guests that develop lasting relationships, repeat business, word-of-mouth marketing, and referrals. We don’t simply list our properties on Airbnb and click ‘accept.’ We manufacture a desired guest profile and provide experiences they can’t replicate elsewhere.
We take a centralized approach to operations, leveraging technology solutions to scale and improve efficiencies at individual properties and the portfolio level. Through the thoughtful implementation of tech-enhanced solutions, we are able to enable guest experiences in new ways without significant additional overhead.
We are driven by a top-down, thematic view of the world
We identify themes or megatrends representing secular shifts that will influence how we live, work, and travel for years to come. These trends impact our decision-making today to position our forward-looking portfolio for tomorrow. In simple terms, we skate to where the puck is going, not where it has been.
With that backdrop, here are a few megatrends we are monetizing today. In our view, these changing consumer preferences may soon be the ‘norm,’ as opposed to the exception, in a generation or two.
Experiences > Luxury.
Why Stomp Capital?
We are in the very early innings of a disruptive shift in consumer preferences for lodging, as consumers, young and old, seek ‘unique’ experiences and form a true connection to place. The Covid-19 pandemic accelerated our human desire for a more aligned and cohesive life filled with passion and meaning enabled by remote working (doing work you love from inspirational locations rather than a cubicle in a city).
A deep fundamental understanding of consumer preferences (from Richard’s STRU front row seat), coupled with our forward-looking investment strategy, creates an unparalleled asymmetric risk / reward profile. Furthermore, the short-term rental playing field is wide open (for now) and we have a massive sustainable competitive advantage as an early adopter with the ability to cherry pick (1) locations, and (2) individual assets to maximize profit from rental income and future price appreciation.
This all adds up to an opportunity that’s ahead of the curve, a chance to develop custom-built, short-term rentals in unique locations that inspire creative energy, get people excited, and create stronger relationships with people around them.
We are investors at our core. Our investment team has decades of capital markets experience at leading investment firms, such as Blackstone, Ramius Capital, Morgan Stanley, D. E. Shaw & Co., and others.
Short-term rental investments are our singular focus at Stomp Capital. We are a vertically integrated owner and operator, which allows us to drive industry-leading margins and a superior guest experience.
Speak with us today
To learn more about investing, please schedule a call with our Investor Relations team by using the Calendly link below.