Spring Bank Loan Prospectus

REPAYMENTS

This would be the baseline for repayment priority.

Any extra Airbnb Income would have priority of repayment in the following priority.

1. Bank Loan

2. Reserved Minimum Maintenance Fund (Minimum of 10K for maintenance, repair & major incidentals)

3. Extra Payment to Principle

4. Members Equity or Dividend

Without any STR Income

If there is no Airbnb income - each person would need to fill in the gaps of the payments. Need 4k a month. $48K a year.

Julian & Steph -$1000 Amelia & Tyson - $1000
Oscar & Clare - $1000
Maggie- $500
Tessa - $500

With STR Income

We’ll take a conservative approach on speculating occupancy.

This model would be if the cabin ran next year at 25% & 40% occupancy.

Other considerations unique to this property

• 5 day minimum booking

• $200 cleaning fees

EQUITY

Keeping it simple - All expenses prior to LLC creation count towards a persons paper value of the expenses installed. This must include itemized receipts for all purchases. Forward All receipts to the listing email.

P&L STRUCTURE

2. PRICELABS Dashboard

3 - Earned income TURNO - AKA TURNOVER-BNB

CURRENT LANDSCAPE

Repayment if sold -

$168, 583 to equity payments

Disbursements from expenses incurred $65,104

$233,687 TO Break Even

Current home value on Redfin 825K

Current Loan $505,000

Selling & Listing fees - 65K

$570,000 (Loan + fees) + $233,687 (need to recoup) + 46,737 (+20% on investment for doing most of the work) = $850,424 Minimum Sale Price

-Buyer credit - $50k for Siding & $20k for Roof

$850,424 Minimum sale price +$70,000 (buyer credit)

NEW LISTING PRICE - $920,424

The Honest Situation:

• The STR market is cyclical. It’s soft now, but this isn’t a forever trend — destinations, markets, and regulations shift.

• You bought at a premium, and selling now means eating transaction costs (6–8% with agent fees, closing costs, and possibly taxes) and walking away without seeing long-term appreciation.

• Interest rates are high now, which actually works in your favor as a holder — because you’re holding an appreciating, scarce asset while others are priced out.

• When would you realistically ever buy this property again? If you sell now, you're out of the market. Re-entry at today’s or future prices with future rates is likely cost-prohibitive.

“Guys — look, we’re not just investing in a P&L statement. We own a physical place, a slice of land and time we couldn’t replace now even if we wanted to. It’s not cash flow positive today, but it has the potential to be a family memory maker. Don’t lose site of the dream!

The Strategic Financial Argument:

Hold and reposition.

• Shift to alternative payment strategies for owners feeling stressed.

• Run off-season promos, give aways, influencers, we have NO BRANDING

• Refinance when rates soften — even a 1–2% drop changes the mortgage math. It’s already down at 7%

• In the meantime, we build equity and wait out the dip.

"We’re not trying to win the next 18 months — we’re trying to win the next decade."

Replacement cost estimates — how much would it cost to buy this same property now (with current rates + prices)?

Is the cost to exit higher than the cost to carry.

If we sell, we lose control of an appreciating asset — and we lock in the loss of potential equity.

Proposal - HOLD

Don’t make payments if you can’t

Utilize a strong capital position.

DETAILS

How are decisions being made?

• Each major responsibility will name a regional manager and a deputy to assist.

  • Airbnb Listing & Communication

    • Manager - Julian

    • Assist - Oscar

  • Supplies, consumables & Inventory management

    • Manager - Stephanie

    • Assist - Tyson

  • Finances & Reporting

    • Manager - Clare (-Julian to help initiate)

    • Assist - Amelia

  • Decorating & Homestyle

    • Manager - Tessa

    • Assist - Maggie

  • Managers get discretion on day to day expenses for consumable goods - soaps, shampoos, rags, towels etc to keep Airbnb operational. - likely a corporate card with a spending limit per person.

• Airbnb Basics

  • $400 a night base price

  • 5 Night Minimum - $2000 Minimum booking value

  • Airbnb gets priority for summer months

    • June

    • July

    • August

  • Heavy cleaning fee adds $50 per hour to renter

• Can we book our friends? Yes!

  • We will turn this page into the direct booking site that allows for direct bookings, instead of Airbnb getting the fees, we collect 100% of the incomes. - We should look into making sure we should pay more for Insurance rates to cover that idea. We haven’t played with direct bookings because we don’t want another platform to manage unless it was completely synced with our other current technology for managing our units.

• Discounts?

  • We can program these discounts during setup. Typically we offer 25-30% discount to stay more than a week.

• What about cleanings?

  • There are settings that allow for days to be set aside before and after each booking so there can be ample time to clean the unit after each use. Can be multiple days if needed.

• What should the cleaning fee be?

  • Roughly $200 - It also depends, we’ll have to get in there and actually see how long it takes to do a flip.

• If I do the cleaning, do i keep the money?

  • Owners can do cleanings, and those dollars could go directly to the person who cleans. Also, there are places that you just drop off laundry and they will wash and fold laundry by the pound.

• Can one person own more of the house?

  • Any family may choose to put more cash into the house over the years to pay down the debt, but we no person may own more equity than another. We’ll set maximum share value so that owners can get to their maximum share value faster than others, but not more than the agreed upon split of the pie.

• How do we sell?

  • As time goes on, and equity is built, a sale price gets split based on the amount of equity earned at the time.

• What about a divorce?

  • Divorce equity should be bought by LLC and equally distributed if possible.

• Last minute topics of discussion.

  • Cleaning checklists - Steph in progress.

  • Stockroom with all the extras - Almost Done

  • Sink into the guest experience - local coffees, honey, staples in pantry etc. - Guidebook needs DRI

  • Prepare all templates for communication ahead of time to limit the conversations at time of booking.

  • Hospitality without being there. -Communications DRI -

  • Clean & knickknack free design yet homey and comfortable with all the amenities. - Tessa & Maggie

  • Pay for the first few guest to give great reviews - Wheel Invite? Grand Prize Winner for something on social media?

  • Don’t underestimate the lifetime value of the guests. - Return Guests Require No Marketing $$$

  • Loyalty & referral program? Give them a reason to return.

  • Direct Booking - This is a Short Term Hospitality Business - Must have sync’ed DB Website

  • Build digital real estate Brand on Social Media

  • Customize booking airbnb URL - Birchwood Peninsula….

  • Name and property logo

  • one page website to send book now button.

  • hosting business mastery method - Brand - Operations - Prioritize Profits - Forecast

  • Brand

    • Mission: Pets YES!

  • 5 Star reviews are POWER

    • Cleaning & Attention to detail

  • Savvy Systems -

    • Par Level Supply audit systems

    • Start up Essentials Checklist

    • Co-host Tool Bag

    • Rental Contract - Direct bookings

    • Guest communication cadence

    • Emergency Safety card.

6 - INDIVIDUAL LISTING SITE Problems

Each site has is own quirks - like VRBO has a clunky guest interface when it comes to finding the check-in instructions if your not on the app. Links in emails sometimes hard to search for and retrieve.

Automated Messaging on Hosthub can eliminate many of the common problems with guest check in experience

Improving the experience by automating the frequency of correspondence with personalized emails.

1. Welcome Email - 1 hour after booking.

   • Thanking them, telling them our story and why they should be excited to stay with us. Gives them incentive to care for our house.

2. Follow up resources for trip planning guidebook - 1 month after booking

   • Lets tell them where the goods are, tricks of the trades, whats near, where to go while in town,

3. Check in Instructions - Day of Check in

   • Many guests book on desktop and dont remember to download the app. Give them check in codes, wifi instructions and any helpful perameters - shoes off!

4. CRASH COURSE IN STR

   We’re not running an Airbnb - We’re now property managers that operate a beautiful vacation home and Short Term Rental Property for BIRCHWOOD LLC. Airbnb is just a well known listing site that charges 15% but it casts a HUGE Net - We should be on ALL BIG 5 SITES - AirBnb, VRBO, Booking.com, Flipkey is Trip Advisor, and our own Direct Booking Site in order to monetize this property, so eventually we don’t have to.

   Premise - This will be fun if it’s easy. - Just wanted to walk everyone through the workflow of creating happy owners long term so that we feel great with an added bonus of having other people pay off our mortgage.

   —> Searching for a listing

   • Keywords in reviews are now how AIRBNB ranks listings. Many listings fell to the bottom or crashed this winter because they were trying to be something other than what reviews mentioned. If a guests said the property was great for a week long rental, we’ll start popping up in more long term rentals.

   —> When someone books, Airbnb / VRBO / Booking.com / Direct Listing blocks the local calendar,

   • Listing Site PINGS ALL TEAM MEMBERS with notification of Booking request or Direct Booking.

   • Any team member can take communication to the next level with Superhost support, set up template responses, alter dates, request damages, run financials, reporting, marketing, claim damage reports, etc.

   —> Immediately Syncs with HOSTHUB

   —> HOSTHUB - Blocks Dates on ALL calendars on all the multiple platforms, including our direct website calendar. They Guarantee no double bookings. Monthly Fee = $50 a mo for your first listing, $14 per mo for the 7th listing.

   —> BOOKING SETTINGS PUSH TO PRICELABS. Pricelabs now generates new rules based on the gap between booking dates to see if shorter stay could be possible. *Changes minimum rental night rules to increase occupancy. Monthly Fee $18/mo. Pricelabs also fluxuates pricing based on demand. We set minimum pricing limits to keep margins in check, while increased demand triggers pricing increases during peak demand in summer.

   —> SENDS CLEANING REQUEST - TurnoverBNB AKA TURNO - Creates calendar invites and PINGS cell phones to all cleaners. Cleaners can choose to accept or deny the request. Once cleaning is accepted, and completed, TURNO triggers payment via Company Credit Card,

   —> CREDIT CARD SYNC - In quickbooks, expense is pulled within a set rule into QUICKBOOKS as Cleaning Fee Attached to a specific Contractor 1099 - or to an owner. 1099 sent from Third Party Software - no need to file from within Quickbooks.

   —> PAYMENT - Payment from listings are assigned to individual EIN Numbers - Tax reporting is all Listing Specific. Reporting can be accesses by any team member at anytime.

   Takeaway - We’re really on the hook for making sure everything is Accurate & Clean, and that we’re super Responsive to our guests so that they leave great reviews.