World Series of Golf, Inc. (OTC PINK: WSGF), through its subsidiary Vaycaychella, published a compelling presentation showing that its innovative sharing app can potentially revolutionize the market for real estate investment and rentals.
The premise is relatively simple- the app takes the current laborious process associated with the real estate investment and management market and simplifies it to where short-term rental property buyers, investors, and would-be operators, can quickly evaluate and act upon investment opportunities. The innovative app can also calculate the return-on-investment opportunity for purchasers and, if necessary, factor in costs to renovate and operate a target property independent of the buyer’s current cash reserve and credit rating. It’s more efficient than conventional investment methods and adds a win/win component to the finalized deal.
Look at its value in another way. An Airbnb (NASDAQ: ABNB) operator has to manage a property 100% of the time. They need to keep the lights, and the gas turned on; the linens cleaned; the yard tended, and repairs maintained. Moreover, owners must pay property taxes, most likely pay a mortgage, and then account for managing rental fees and paying sales taxes. Then, after all of that work, they need to make sure they reconcile each account for tax purposes to follow complicated IRS guidelines in an industry where income and expenses tabulations are becoming more scrutinized. That does not need to be the case.
Vaycaychella is changing the landscape by offering an attractive alternative. And their app combines functions that allow investors and operators to save valuable time and resources by eliminating the often non-negotiable steps in conventional property investment and management. In particular, Vaycaychella has designed its app to seamlessly manage property acquisition and maintenance. Here’s how.
Seamless Investment And Management
The power behind Vaycaychella’s approach is that it saves time and money by helping to avoid the requirements associated with conventional loans. Specifically, if parties agree, the app can eliminate the most restrictive provisions in place that need to be completed before closing traditional style real estate transaction. That includes eliminating the need for property inspection, eliminating lengthy loan application and approval processes, and the delays associated with the title being cleared and transferred. In short, Vaycaychella is leveraging its app’s power to allow for a more efficient way for investors to take part in the multi-billion dollar short-term rental property market.
Best of all, the app opens the door well beyond a narrow sector of candidates by allowing even single property owners and investors an opportunity to join the burgeoning industry. And because of its ease of use and transaction-focused applications, Vaycaychella believes it will substantially widen the short-term rental property ownership and operator opportunity to a much broader sector of candidates. It will also extend investment opportunities to a significantly larger class of potential investors.
The great news is that virtually anyone can be a player.
Taking A Non-Conventional Approach To Real Estate Investment
Historically, except for some Airbnb property owners, the short-term-rental investment and ownership market has been a reserved space for high net worth individuals or specialized REIT-style companies with virtually unlimited capital to invest. Of course, that’s fine if one has the means to participate. But what if individual investors don’t?
For example, to be currently considered and approved for conventional income property financing, a buyer is often required to provide a 30% down payment for the property. Then, they need to meet minimum income to debt requirements and have a credit score considerably higher than would be allowed for a general mortgage. Don’t blame the lenders entirely.
Much of the restriction is in place from government regulation stemming from the financial crisis in 2008 that saw real estate prices tumble following poorly managed mortgage ratings and loan portfolios that were artificially inflated. Banks are now obeying new rules that keep them privy to various government guarantees to back their property loan portfolios. And while some of the imposed standards have loosened slightly, chatter about the same faulty practices creeping back into the process is getting louder. These practices only play to the deficit of smaller investors.
Vaycaychella, though, is seizing on ways to capitalize on those challenges that especially hurt smaller investors. Rather than following institutional models that allow banks like Wells Fargo (NYSE: WFC) and Citibank (NYSE: C) to provide inconsistent mortgage approvals by leveraging other client’s deposits and government guarantees, Vaycaychella is bringing the opportunity straight to investors. After all, it’s entirely feasible to eliminate institutional participation by delivering the investment/mortgage directly to the borrower, partner, and short-term rental property buyer without all the associated delay and overhead. That’s the Vaycaychella advantage.
Their approach is simpler to manage and allows investments to be evaluated based on the viability of the short-term rental property enterprise rather than arbitrary conventional bank criteria influenced and regulated by government oversight. Don’t underestimate that value.
Those attributes can make the difference between credit denial and investment property ownership.
Vaycaychella Changing The Landscape
Vaycaychella is not entirely new to the property investment space. For the past three years, they have been developing a pilot portfolio of short-term vacation property rentals by acquiring properties that have either been distressed for one reason or another or are located in developing economic regions. Other opportunities to build its portfolio came from properties where hurricanes devastated communities and others from abandoned locations due to the area’s prevailing economic conditions.
The important part to note is that all of the properties are located in exotic, high-demand regions, and none of the properties would have been viable to purchase as conventional mortgage candidates. Notably, while the company takes advantage of targeting specific geographic opportunities, they also provide a local opportunity to manage and develop those locations.
Supporting its portfolio, Vaycaychella is now in the final stages of developing its core P2P app to connect short-term vacation property owners and investors without the conventional limitations of traditional banking.
The app’s strength is similar to how Airbnb, Bookings.com (NASDAQ: BKNG), and VRBO cut out the traditional corporate travel agency network by offering destination booking alternatives. The difference is that Vaycayhella is bypassing the traditional banking middleman by directly connecting individual investors to real estate secured investment opportunities. The benefit is that these properties are then managed by entrepreneurs that the investor can independently evaluate.
As noted, the app is in late-stage development, and recent testing showed enormous potential and strong user interest. Testing was so well received that management said it believes the app can generate upwards of $100 million in the first 12-months following its official launch. They also project that after adding additional functionality updates, the app will be completed in January, and beta testing will begin in February.
That launch could set up Vaycaychella for a massive year in 2021. The app’s revenue, though, is also expected to benefit from additional initiatives that include the launch of a branded Visa Card service for hosts, also planned for beta launch in February of 2021. By the way, that card is being designed to target short-term rental hosts market-wide, thus adding an additional source of revenues to the company. Therefore, combining each potential source of near-term income could expose current valuations as extremely undervalued.
The bottom line is clear- Vaycaychella is taking a diversified approach to position itself well for a breakout year in 2021. Its innovative app can have broad appeal, and its Visa services card can attract millions of host users across the globe. Thus, with two potential catalyst announcements planned by February, the plan to increase shareholder value is well underway. Keep this one in focus.
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