Business Overview: 

619 Sombrero, LLC invests in luxury vacation homes in a prime location, a tropical beach destination for short-term vacations rental in the Florida Keys. We specialize in buying and managing large vacation rentals with 6-8 bedrooms and 6 bathrooms to accommodate sizable gatherings like Family Reunions and Large Groups vacationing together in the Keys.

The larger the vacation rental, the more money we can charge per bedroom. 619 Sombrero, LLC brands our vacation rentals as being the best Family-Friendly vacation rentals in the Florida Keys. The website and dba is called FloridaKeysVillas.com.

Florida Keys Villas is conveniently located on Sombrero Beach Road, a major street leading to the most popular beach in Marathon called Sombrero Beach.

Everyone driving to the beach passes the property and sees the prominent vacation rental sign.

Florida Keys Villas aims to create a premier experience for all of its guests by offering a number of luxurious amenities not offered by many other competitors, such as: keyless entry, private saltwater heated swimming pool, hot-tub, shuffleboard, beach volley-ball court, deep-water dock, pool table, poker table, foosball table, game room, bocce ball courts, outdoor kitchen with BBQ, and a small playground for children.

 Acquisition Criteria  

· Property Type: High-end, short-term waterfront rental in Florida Keys

·  Year-round vacation rental with 5 years of existing clients and bookings for 2021

· Average accommodation size: 6 bedrooms, 6 bathrooms with total capacity for 14 people

·  Estimated Average Weekly Rental: $8,500 - $12,000

· Deferred maintenance and rehabilitation is expected on most properties

· Primary target markets: Guests from all over the U.S. and overseas; large groups of family and friends

· Ideal location: Tropical Designation Location in Florida Keys with current bookings year-round

· Management team has successfully managed short-term vacation rentals and is the owner/operator

· Management and property won in FLARBO as the best Florida Keys Villa with over 39 weeks booked out of 52 weeks

·  Recession resistant business, historically; Affluent clientele leading to high occupancy and minimal price sensitivity

·  Significant opportunity to further increase in value. Florida State implemented laws to limit and prohibit building rights by 2023 – automatically increasing all the existing properties in the Florida Keys

·  Home to rent with one of the highest number of bedrooms (6) and 6 bathrooms. Few homes were built with more than 2 to 4 bedrooms. This allows more rentable square footage, producing significant weekly cash flows upon stabilization

·  Competition is limited with large number of bedrooms and waterfront access for those coming to the Keys to go fishing with their boats.

·  Cater to large families or groups of friends looking to go on vacation together in the Florida Keys and desire to rent a large home with 6 bedrooms all the amenities

·   Acquisition price is less than 20% of the Fair Market Value

· Upside: current list of existing bookings for 2021 and existing loyal clients – ready to rent and property is about $500,000 below market value.

·  Possibility of more income: Short-term rentals in destination areas are usually listed at higher prices with nightly rates. This can significantly increase the income you are collecting at a faster pace.

All investors in 619 Sombrero will be paid quarterly earnings that are generated year round in the Florida Keys.  We have had as many as 40 weeks booked in any one year or a vacancy factor of 25%. What makes us so different, we do all of the hands on management and marketing while other rental vacation owners rely solely on outside rental managers to keep their properties full. 

Since our competitors relying on others to pack their rental homes these houses are never close to being full on a yearly bases.  Due to direct competition of the rental management’s in-house list of available houses they can redirect any client to other properties especially if they don’t like the price of that rental. 

We don’t have to worry about competing houses with our clients. There is no conflict of interest we represent only one rental home. So our yearly income and rental is fuller than the norm in the Keys. The unfulfilled rental weeks are closer to 57% when using a rental manager.  

Our occupancy rate is higher due to hands on managing and more consistent marketing campaigns for just that property. We anticipate a holding period of 5-7 years.  All the while paying a project preferred rate of return around 10%.

Vacation Rentals

Florida Keys Vacation Rentals offers the very best location in the U.S. to invest in for real estate investors.

• Florida Keys is one of the most popular destination locations in the U.S.
• The tropical warm weather, tranquil turquoise ocean waters plus white sandy beaches.
• Fishing MECA for Sports Fisherman from all over the world come to Marathon Florida and the Keys. It’s the top location for avid fishermen.
• Florida Keys is the perfect investment location because it’s now a year-round destination location for people from all over the world. Making our vacation rentals much more profitable for our investors than other seasonal type vacation spots.
• We acquire luxury hard assets by purchasing the properties out right. We don’t sub-rent these properties. We own the real estate so investors reap all the benefits of ownership plus the Capital Gains when it’s sold.
• We strategically purchase existing vacation rentals. Because of their years of rental history and great customer base with 5 star reviews.
• We find properties to optimize income by turning part-time rentals into full-time year round vacation rentals. Increasing these profits by 50%
• We find properties to optimize income by turning part-time rentals into full-time year round vacation rentals. Increasing these profits by 50%
• Vacation Rental growth is 160+ Billion and is experiencing 12.5% year-on-year growth in the U.S.
• So many more advantages when investing with us!

Some additional information of interest. The city of Marathon is the only city in the Keys which allows “weekly rentals” of vacation homes in Florida Keys. The other cities voted out weekly rentals and only allows a minimum of a 28 day or Monthly stay by short-term renters. How many people can get a 28-day vacation in the states?  As you well know weekly rentals allows us to make much more than monthly rentals. Which effects our bottom-line.

TIme Advantage

One more salient fact to consider, the Florida Keys, has a moratorium on all building permits by the coming year 2023-26! This permanent moratorium on building on any vacant land is to prevent overcrowding and damage to the fragile sea life and Keys infrastructure facilities.  This is good news for our investors because it will only increase the value of all the current real estate due to increase demand in the Keys. So now is the time to be buying property in the Keys especially in Marathon given there 7-day rental period. So, this puts us in a rush to find and purchase as many vacation properties as we can before 2023. Currently, we’re buying several profitable properties with 5-10 years of rental history and 5-star reviews. Because of this time crunch we want to buy as many properties as possible before the real estate sky-rockets in the Keys.

The Market

Florida Keys Vacation Rentals is a Leader in a Growing Market .

Under the new federal tax law that went into effect on January 1, owners of rental properties that are operated as businesses will be able to deduct mortgage interest on these properties, along with business expenses related to the rental. If you operate your rental as a business, you may also be able to deduct up to 20 percent of net rental income from your income taxes. Check with your CPA.

Real Estate Appreciation

Another important advantage of owning our vacation rental is the money you can make in the long term when we decide to sell the investment property. Vacation rentals are always in demand (especially in the Florida Keys), which means that the value will increase over time. When the time comes that we decide to sell the investment property, cash in the profits you made you can use it to finance another investment property!

SEC Form C Link: Form C

Captain Robert Stephens, spent five years in the Vietnam period flying from Warner Robbins Ga to Vietnam and other Air-Force bases around the world.  Capt. Bob has a degree in finance, from SIU, and started a Masters in Hotel & restaurant management.  Since being honorable discharged from the Air-Force Capt. Bob has been in the entrepreneurial style of businesses with mostly a real estate back-ground.  Has owed and operated a self-storage business for 10 years, built over a dozen $1m spec homes in Highland Park, Tx, operated a luxury 100’ yacht in SE Alaskan waters, started and sold numerous restaurants from pizza to fine dining in AZ.

Created a rooming house concept in Seattle where he owned 5 buildings with a 92% occupancy and sold each property for over $1m. Total managed rooms 49.

Capt. Bob basically retired at 40 and has been creating cash flow investments for his portfolio ever since. Capt. Bob also wrote a book called “Voyages of the Heart” which consists of 125 short stories of the reality of what we fail to see on a daily basis---as we walk down the path of life, every day, without smelling the roses.

Liz Kohout, is the marketing director for Floridakeysvacationvillas.com and owned and operated a repackaging facility in Cleveland, OH in a 50,000 Sq.Ft. building with 50 plus employees.   The business was doing over $2.5m per year until Nafta was signed then over the next few years all the business, that she personally developed, went over-seas looking for cheaper labor. 

 Liz is also very creative and has been crossed trained in web-design and has an excellent marketing back-ground. 

 Both Capt. Bob and Liz are hands on type of people and like to make sure all the dots and T’s are crossed and do not rely on a lot of hired help to get simple tasks accomplished. Capt. Bob’s son owns and operates a small pizza chain, doing $5m per year-90 employees and real estate development company all with Capt. Bob distant and welcome advise. Tanner is only 37 and retired well at 35.  Runs in the family.