Unfortunately, there are only about 55 homes available for rent in Archuleta County, and only about 486 homes available for sale.
I wonder if any of the 1,042 homes, that are now held as STR inventory, were purchased with Federal Loans intended to provide relief to small business owners during the COVID-19 pandemic?
Billions in United States COVID relief money has been lost to fraud. Paycheck Protection Program (PPP) money was fraudulently used to buy some Short-Term Rentals (STR). Recently, for example, Konrad Bicher — the so-called ‘Wolf Of Airbnb’, age 31 — recently pleaded guilty to wire fraud in connection with his operation of real estate companies. Wire fraud carries a maximum sentence of 20 years in prison.
Konrad Bicher has agreed to forfeit $1,740,407 and must also make restitution to victims in the amount of $1,985,251.
From July 2019 to April 2022, Bicher and his associates listed many STR units on Airbnb, and other short term rental platforms. These STR units racked up more than $1,170,000 in rental income for Konrad Bicher and his associates.
From April 2021 to July 2021, Bicher obtained government-guaranteed loans through PPP. During the scheme, Konrad Bicher submitted at least four (4) applications for PPP loans on behalf of at least three entities, and obtained more than $565,000 in loan proceeds.
Mr. Bicher apparently likes to refer to himself as the “Wolf of Airbnb’ and favors this colorful nickname because:
- He told media outlets that he was “hungry and ruthless enough to get on top of the financial ladder.”
- He claims to have the “ferocity of a wolf, because wolves are territorial, vicious, and show no mercy when provoked.”
Fortunately, Federal authorities are now tracking down PPP money fraudulently used to buy Short-Term Rental units.
I hope, for the sake of Pagosa Springs, that STR inventory was not purchased with Federal Loans intended to provide relief, and to help small businesses owners during the last few years when STR inventory sky rocketed in Archuleta County.
That would be a real shame if “investors” had used PPP money to jack-up home valuations, and had significantly raised annual property tax bills for years to come.
Hank Lydick took ‘early’ retirement to build a home in Austin, Texas, and a cabin in Pagosa Springs, Colorado.