THE SMARTER WAY TO GROW AND EXIT YOUR SHORT-TERM RENTAL BUSINESS
Grow.Get Paid onWhere You Finish.
We're a group of short-term rental owners who combine our businesses, grow together, and sell together — for a lot more than any of us could get alone.
You keep running your business. You get paid based on how much YOU grow it. Not where you started.
This is for focused hypergrowth. If you're targeting 5-10% annual growth, this isn't for you. And that's okay.
HOW IT WORKS
Three Steps. That's It.
No complicated structures to understand upfront. Here's the whole thing in 30 seconds.
Roll In
You "roll in" your business — think of it like merging onto a highway. You keep running it day-to-day. Nothing changes operationally.
Grow Together
For 4 years, you grow your business with shared resources, marketing support, and a network of other owners doing the same thing.
Exit Big
When we sell the whole group together, you get paid based on how much YOU grew — not where you started. Bigger growth = bigger payout.
In Simple Terms
Imagine 15 rental businesses joining forces. Together, they're worth way more than the sum of their parts. You keep running yours. You get paid based on your results. The harder you grow, the more you make.
THE PROBLEM
Most Deals Pay You on Where You Start
The Coaster
Brings in $500K in annual profit. Grows 10% per year. Collects a paycheck. Exits at $732K annual profit.
Gets paid on $500K entry value.
The Grinder
Brings in $300K in annual profit. Grows 45% per year. Hustles every day. Exits at $1.33M annual profit.
Gets paid on $300K entry value.
In a typical deal, the coaster and the grinder get the same deal: a multiple of their entry value.
That's broken. We fixed it.
In Simple Terms
Most deals pay you based on what your business is worth TODAY. We pay you based on what it's worth when we sell. If you're a grower, that's a much bigger number.
"Annual profit" is what the finance world calls EBITDA — earnings before interest, taxes, depreciation, and amortization. We'll use both terms throughout this site.
THE CHOICE
Go Alone or Grow Together?
You can sell your business today for a standalone price. Or you can join a group of hypergrowth owners and unlock significantly higher returns. Here's what you get with us.
Go Alone
Lower Sale Price
Small businesses sell for 3.5x-7x annual profit. The smaller you are, the less you get.
No Shared Resources
You pay full price for everything. No group buying power.
Limited Growth Capital
No access to outside money for acquisitions or expansion.
You're on Your Own
No network, no strategic support, no shared playbooks.
Grow Together
Higher Sale Price
A group of businesses sells for 12x+ annual profit — 2-3x more than going alone.
Shared Resources = Lower Costs
Group buying power for technology, marketing, insurance, and more.
Growth Capital Available
Access to outside investment for acquisitions and expansion.
Network of Grinders
15 operators sharing playbooks, strategies, and support.
In Simple Terms
Selling alone, a $500K/year business might get $2.5M. Inside our group, that same business — after 4 years of growth — could be worth $8M+. The group sells for more because bigger portfolios attract bigger buyers who pay higher prices.
YOUR NUMBERS
See What Your Business Could Be Worth
Slide the bars to see your personalized target payout. This is based on YOUR numbers — your starting profit, your growth rate, and the resulting exit value.
In Simple Terms
The more you grow your business over 4 years, the higher your payout multiple. A business that doubles gets a good deal. A business that 4x's gets a great deal. Play with the sliders to see what's possible for you.
Your 50/50 Payout Calculator
See your floor + upside based on growth
Rollover Equity (50%)
$5.4M
~3.5x contribution
Operator Promote (50%)
$6.9M
4.45x tier multiple
Selling Alone (6.0x)
$9.3M
With FRDM (7.95x)
$12.3M
+32%
That's $3.0M more than selling alone
*Target payouts assume portfolio exit at 12x or higher. Actual payouts depend on portfolio performance and may be reduced pro-rata if proceeds are insufficient. Rollover equity provides a structural floor; operator promote rewards performance.
Like what you see?
No commitment. Tell us about your business and we'll walk you through the details.
HOW YOU GET PAID
Your Floor + Your Bonus
Your payout has two parts. One protects what you brought in. The other rewards how much you grew. Together, they create a structure where grinders win big.
Your Floor
WHAT YOU ROLLED IN
When you join, your business gets a value based on your annual profit at entry. This is your "floor" — you get this back regardless of how the rest of the group performs.
50% of your total payout comes from your floor. It's structural — based on what you brought in, not how you performed.
Your Growth Bonus
BASED ON HOW MUCH YOU GREW
The other half of your payout is based on your ending annual profit. The bigger you grew your business, the higher your bonus multiple. This is where grinders make serious money.
50% of your total payout comes from your growth bonus. The more you grew, the higher your multiple. Top growers also share a Performance Bonus Pool.
In Simple Terms
You get paid twice. First, you get back what your business was worth when you joined — that's your floor, it's protected. Second, you get a bonus based on how much you grew. The bigger you grew, the bigger the bonus. It's like having a safety net AND a rocket ship.
What Could You Get?
Your total payout depends on your ending annual profit. Here's a simplified view — the bigger you grow, the more you make per dollar of profit.
| Your Ending Annual Profit | Target Payout Multiple | vs Selling Alone |
|---|---|---|
| Under $500K | ~4.5x | +20% more |
| $500K - $1M | ~6.0x | +25% more |
| $1M - $2M | ~7.5x | +30% more |
| $2M - $3M | ~8.8x | +36% more |
| $3M+ | ~9.5x | +39% more |
*Target multiples assume portfolio exit at 12x or higher. See the full tier breakdown on our Reference page →
Standalone multiples based on IBBA/BizBuySell market data and precedent STR transactions.
REAL EXAMPLE
Meet "The Grinder"
The Numbers
Payout Breakdown
Compare: Solo vs With Us
Sell Alone (6.0x)
$9.0M
If you sold alone at 6.0x your ending profit
With FRDM (7.95x)
$11.9M
Floor + Growth Bonus combined*
+$2.9M
More than selling alone
In Simple Terms
This operator started with a $350K/year business. After 4 years of growing at 45% per year, their total payout is $11.9M. If they had sold alone, they would have gotten $9M. That's almost $3M more — just for being part of the group.
* Target returns assume portfolio exit at 12x. Actual returns may vary based on portfolio performance.
YOUR JOURNEY
Your 4-Year Path
From joining to exit, here's what the journey looks like.
In Simple Terms
Year 1: You join and keep running your business. Years 2-3: You grow, we help with resources and support. Year 4: We sell everything together and you get your payout. That's the whole arc.
You Join
- • Your business rolls into the group
- • You receive your equity shares
- • File a tax election within 30 days (we'll help)
- • Your entry value is locked in
Grow & Earn
- • Focus on growing your annual profit (target: 40-50%)
- • Access shared resources & group buying power
- • Earn additional equity based on performance
- • Quarterly check-ins & portfolio support
Scale & Compound
- • Continue aggressive growth
- • Expand through acquisitions using business proceeds
- • Position for optimal exit value
- • Annual equity grants compound your stake
Exit & Get Paid
- • The whole group sells together at 12x+ annual profit
- • Your ending profit determines your payout tier
- • Floor + Growth Bonus paid out
- • Top growers receive bonus pool share
- • Taxed at long-term capital gains (~20%)
Target: ~4.5x to ~9.5x on your ending annual profit
TRANSPARENCY
What Needs to Be True
We don't hide the assumptions. Here's exactly what needs to happen for this to deliver target returns.
In Simple Terms
For this to work, three things need to happen: the group needs to grow, we need to sell at a good price, and costs need to stay reasonable. Here's exactly what we're assuming — no fine print, no surprises.
We believe in radical transparency. Here are the assumptions that must hold true for this model to deliver target returns. If any of these break down, payouts may be reduced.
Exit Multiple
12x or higher
Portfolio must exit at 12x EBITDA or higher to pay all target tier multiples.
Why: At 12x, enterprise value is ~$216M, generating ~$150M operator pool after preferences and carry.
Risk: At 10x, operator payouts may be reduced. At 8x, significant pro-rata reductions apply.
Portfolio EBITDA
$18.0M net
Combined portfolio EBITDA must reach ~$18M net (after corporate overhead at Year 4).
Why: This EBITDA level qualifies for the 12x multiple tier in the market multiple table.
Risk: Lower EBITDA = lower multiple = smaller pie for everyone.
Operator Growth
40-50% annual average
Operators must grow aggressively—this isn't for 5-10% annual growth businesses.
Why: To reach $20M gross EBITDA from ~$5M starting requires ~40% average annual growth over 4 years.
Risk: If operators coast, portfolio won't hit target EBITDA, reducing everyone's payout.
50/50 Split
Rollover + Promote
Operator pool is split 50% rollover equity (floor) and 50% operator promote (performance).
Why: Rollover provides structural floor based on entry value. Promote rewards ending EBITDA performance.
Risk: If promote pool is insufficient, top-tier operators may see reduced promote payouts.
Hold Period
4 years
Target exit at Year 4, with potential extension up to Year 6 if value-accretive.
Why: 4 years allows operators time to compound growth while maintaining investor liquidity expectations.
Risk: Early exit may not capture full growth. Extended hold may frustrate investors.
Seed Capital
$5.0M
Seed provides 1.50x preference ($7.5M floor) plus 5.0% participation in remaining proceeds.
Why: Without seed capital, there's no runway to support operators and build portfolio infrastructure.
Risk: If seed isn't raised, model doesn't work. Operators would need to self-fund overhead.
HoldCo Overhead
$2.0M/year
Corporate overhead starts at $2M/year and grows 8% annually (~$9M total over 4 years).
Why: Covers management, marketing, shared services, and technology to drive operator growth.
Risk: If overhead doesn't deliver value-add, operators may question the ROI assumption.
Market Conditions
Favorable STR M&A
Short-term rental market must remain attractive to strategic and financial buyers.
Why: Exit multiple depends on buyer appetite. Precedent deals (Monarch, Nocturne) show 10-14x is achievable.
Risk: Market downturn or regulatory changes could compress multiples.
The Bottom Line: Floor + Upside
With the 50/50 structure, operators get a structural floor (rollover equity based on entry value) plus performance upside (operator promote based on ending EBITDA). If we hit $18M net EBITDA and exit at 12x, the model works as designed. If we underperform, the promote pool is reduced first—but your rollover equity floor is protected.
Best Case (14x)
Full payouts + large bonus pool
Target Case (12x)
Full payouts + healthy bonus pool
Stress Case (9x)
Rollover protected, promote reduced
STRAIGHT ANSWERS
Questions You're Thinking
THE BASICS
THE MONEY
THE DETAILS
Have more technical questions about share classes, PIUs, or the waterfall? Visit our Reference page for the full details.
LET'S TALK
Interested? Start Here.
No commitment. Just tell us about your business and we'll show you what the numbers look like for you. We'll reach out within 24 hours.
Interested in Rolling In?
Tell us about your business and growth goals
Is This For You?
This is for operators who are ready to grow aggressively. Not 5-10% per year. 40%+.
If you're ready to grind, we're ready to back you. If you're looking to coast, this isn't the right fit.
We want operators who want to win.
Let's TalkEmail: [email protected]
Important Disclaimer: *Target returns are illustrative and assume portfolio exit at 12x or higher. Past performance is not indicative of future results. The projections and scenarios presented are based on assumptions that may not materialize. Actual results may vary significantly based on portfolio performance, market conditions, and other factors. Nothing in this presentation constitutes a guarantee of returns. All target multiples and payouts are illustrative and subject to actual portfolio performance. If exit proceeds are insufficient to pay all target amounts, payouts may be reduced pro-rata.