Luray Yurt is operated by Nomad Inc. We are opening the same model to capital partners: you fund one yurt, we do everything else, and once it is running you are paid before we share in the profit.
How a partner yurt works
- Who owns it
- You and Nomad, through an LLC for that one yurt. You put in the down payment on the construction loan and the costs the bank does not cover, such as furnishing and opening costs, typically $250-300k in all, and hold nearly all of the economic interest with no vote. Nomad manages the company and puts in a token $10k in cash, land or kit. If Nomad already bought the lot or the kit for that build, you reimburse it at cost. Nomad takes the tax depreciation.
- Who borrows
- The yurt company borrows the rest from a bank, and you and Nomad both guarantee the construction loan.
- Who runs it
- Nomad. It builds with its builder and runs the yurt day to day. For that it takes 20% of room revenue as its operating fee, cleaning fees and refunds excluded.
- Where the guest dollar goes
- First to running costs, the bank and Nomad's fee. You are paid next: a preferred return in the 7-8% a year range on your capital, paid from that year's cash, and any unpaid part does not carry forward. Profit above that is shared, typically 75% to you and 25% to Nomad. In a year that runs short you receive nothing.
- How you exit
- Nomad may buy you out at any time for 1.25x of your cash. It is Nomad's option, not a promise. You may sell only to a buyer Nomad approves, who signs the same agreement, and Nomad may match any offer first.
What one yurt could return to you
One yurt, your $250k next to Nomad's $10k and the rest from a bank loan (the example assumes a 30-year fixed loan), guest revenue growing 3% a year, and the terms above. Year one starts when the yurt opens. Guest revenue and running costs are set at round levels we consider achievable for a new yurt, shared on a call rather than published here. Illustrative, not a forecast.
- Your cash in
- $250kNext to Nomad's $10k
- Cash to you in year one
- $28k11.2% of your cash
- Average yearly cash yield
- 13.0%Years 1 to 6, before any buyout
- Buyout payment to you
- $313k1.25x of your cash, whenever Nomad buys
- Total back
- $507k2.0x your cash, yearly cash and buyout together, after year 6
- IRR
- 15.5%With a buyout after year 6
- Cash received by then
- Buyout payment
| After year | Cash received by then | Buyout payment | Total back | Multiple | IRR |
|---|---|---|---|---|---|
| 3 | $89k | $313k | $402k | 1.6x | 18.7% |
| 6 | $195k | $313k | $507k | 2.0x | 15.5% |
| 9 | $318k | $313k | $631k | 2.5x | 14.9% |
Why Nomad will want to buy you out
Your buyout price is fixed in advance. The yurt's value is not. As the loan pays down and the yurt appreciates, a refinance grows large enough to pay your buyout, and Nomad then owns the yurt, its profit and its appreciation outright. Your share of the profit costs Nomad more each year than the bank charges for the same money. Every year Nomad waits, it keeps paying you that share while the buyout gets no cheaper, so buying you out is the financially rational move as soon as a refinance can fund it. House prices in the counties around our markets rose 6.5% to 9.5% a year from 2015 to 2025 (FHFA). Past appreciation does not predict future returns.
What comes with your yurt
- Stays
- $10k a year in stays, any dates, giftable to family and friends. At your yurt, nights count at the all-in guest price. At any other Nomad yurt, 1.5x that price.
- Friends and family
- A personal code for 15% off direct rates at any Nomad yurt, up to 30 nights a year, not stacked with other offers.
- Your mark
- Your name on the sauna, a trail, a door plaque or something else in the yurt, and your story on its page. The first night is yours, before any guest, with a say in furnishings and decor.
- Reporting
- A monthly statement, an owner dashboard for your yurt, and the annual K-1 with a plain-English letter.
15 jobs, 11 of them ours
- Nomad
- You
- Together
- We pick the lot together, yours or one we find
- We find the bank and close the loan
- We bring the traveling builder
- We manage construction
- We furnish and open
- We price and market it on our site and the channels
- We manage the guests
- We handle refunds and disputes
- We find and manage the cleaning crew
- We handle repairs and upkeep
- We keep the books and send your monthly statement
- We handle insurance, permits and your K-1
- You put in the down payment and furnishings
- You use $10k of stays a year
- We guarantee the construction loan together
Register your interest
This is not an application and commits you to nothing. We reply by email.
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This page is not an offer to sell, or a solicitation of an offer to buy, any security. Any investment would be offered only to accredited investors under Rule 506(c) of Regulation D, through definitive documents. The example above is hypothetical. It rests on assumptions we share on a call, not on the results of any property, it is not a projection or a forecast, actual results will differ and may differ materially, and no return is assured. A stake in one yurt is illiquid and can lose money. Nomad Inc. operates the properties.