fbpx
BNB Co-Hosting Mastery BNB Investing Blueprint BNB Hosting Accelerator

Talking to investors every day means I hear a lot of questions. In this video I answer the seven most common questions I hear. 

From finding the right property to understanding market cycles, interest rates, and location choices, this video has all my answers for newbies and seasoned investors alike.

How do I find the right property and make sure it’s profitable? Learn how to identify the right property and why it’s crucial for your investment success.

Is now the best time to invest in short-term rental? Uncover the truth about market cycles and why now is actually THE time to be buying.

What do I do if the interest rate is going to be 6, 7 or 8% on the purchase? The secret to “high” interest rate investing.

What’s the best location, and do I need to invest where I live? Discover whether investing close to home or remotely works best for your goals.

What about regulations? Well, what about regulations? I share how I view this whole topic. 

How can I finance the property? There’s a LOT more to know than just what most assume: 20% down and using your own income to secure the loan.

Isn’t investing in airbnb’s time consuming and a whole lot of work? Doesn’t have to be, and I talk about how to do it.

Let’s jump in.

🚨 Grab these to learn more about Airbnb investing👇

FREE TRAINING AND STUFF!

Learn how to invest in short term rentals

Airbnb For Dummies Book

Click here to subscribe to our YouTube now! Two new videos every week!

Expand Transcript

What’s up guys? In today’s video, I’m going to be answering your most frequently asked Airbnb and short term rental investing related questions. Wow, that was a mouthful. But for any of you guys that are here and are wondering about investing in short term rentals, maybe you’re just getting started, maybe you haven’t started yet. Maybe you’ve already got a property. I consistently talk every single day with various different short term rental investors from all over the world. And I almost always get the same exact question. So I wanted to put together a quick video on the channel here, just directly answering some of the questions I get all the time from any of you Airbnb investors out there. So let’s get started. I’ve got them written down on my phone here. The first one I’ve got here is how do I find the right property and make sure it’s profitable? So really great, great question. And I always remind people, when they ask this is that that’s actually exactly the question you want to be asking yourself when you’re just getting started. Because a lot of people don’t realise that if you buy the right property, you can make a lot of mistakes after that pretty much every single one in the book, and still come out ahead if you buy the right property for the right price. But if you buy the wrong property, you can do everything after that completely perfectly, and still come out behind on your investment. So buying the right property is super, super crucial. Now I’ve done videos that go into detail on exactly how we analyse and all these different things. But the bottom line, at the end of the day, it comes down to doing your research and doing your due diligence, and vme inner circle, we walk every single one of the investors through a process we’ve developed to help them find the best possible location, scout out neighbourhoods, understand regulations, and just ultimately find areas where there’s really great buying opportunities. Then from there, we create what’s called your buy box, right? What are the criteria that you’re looking for in your next investment property. These can be things like your budget, you know, qualitative things you want the property to have, because maybe you want to use it as a lifestyle asset as well. And so we create your buy box, and then we have a process for filtering down and finding really great properties that fit into that Buy Box. Ultimately, we have a whole analysis process that we use to analyse and run the numbers on those properties to see which ones are going to be a great investment. Now, there’s a whole detailed process for all of that, as I’m sure you can imagine. But ultimately the answer to how do I find really great properties, it’s knowing your numbers and doing your due diligence. What you want to avoid is any form of guesswork involved in this process. We’ve seen from other reaction videos to other YouTubers that have posted about this, the negative impacts of you know, just kind of not doing your due diligence not doing this research. So you want to make sure that you do your full analysis, you analyse the reasonable scenario, and the worst case scenario and that you really really know your numbers is now the best time to invest in short term rentals. Should I have I missed the boat? Should I maybe wait a bit? A lot of people are asking me, you know, should I buy a short term rental now? Or is written out really the best time? And my answer is always a resounding yes. There’s never a bad time to buy real estate. There’s just bad deals that you can buy at any different time and at different point in the market cycle. Now, I will say it’s much easier right now, this is counterintuitive for a lot of people. But it’s actually a lot easier right now than it was 612 1824 months ago to find really great deals. The reason for this, like Warren Buffett says when others are greedy, you generally want to be fearful when others are fearful. That’s when you want to be greedy. And right now, there’s a whole lot of fear in the market, with interest rates having gone up significantly from where we saw them at two years ago. There’s a lot of people that are scared. There’s a lot of people that are uncertain. You know, the fact that this question is one of the most frequently asked question tells you something two years ago, I didn’t have people asking me Is now the right time to buy. And frankly, they should have been. Now we’ve got a lot of people that are kind of trepidatious they’re uncertain, they’re fearful. And the result of that is that a lot of people are getting out of the market. So there’s great buying opportunities, and there’s not as many people getting into the market because of all the fear. That means less competition. So properties are generally sitting on the market for longer, there’s way fewer people to compete with so we’re not seeing as many bidding wars, we often see negotiation on purchase prices where you can actually get the property for less than what it’s listed for. There’s a whole number of factors going on that make now a really great opportunity to buy. That being said, there really never is a good or a bad time to buy. There’s just certain times within the market cycle when there are more good deals or less good deals. Right now we’re at a time where there are more good deals and that’s a really, really great place to be. If you’re looking to buy property. You just have to really know your name. numbers so that you don’t have to go in blindly or go in with all that fear. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnbs. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties, there’s actually another free training linked in the description down below as well, there’ll be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that will definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. You know, what do I do if the interest rate is going to be 678 percent on the property and purchasing? And my answer is cashflow. This is actually one of the biggest reasons why short term rental investing is such a great strategy. Ultimately, it doesn’t really matter what your interest rates are as long as you’re cashflow positive, and you’re still getting great cash on cash returns on your property. Meaning that after you pay for your mortgage, including all the interest and all of your other expenses, you want to make sure that you’re still profiting a good chunk of change every single month. And we can make sure this happens by just running the analysis on deals. And generally there is a correlation a relationship between interest rates and purchase price. As interest rates go down and money becomes less expensive to borrow, purchase prices go up. We saw that or last couple years. And then as interest rates go up, purchase prices tend to go down, we’re starting to see that now where we’re seeing prices drop, we’re seeing prices have a lot more room for negotiation where you can get a better deal on properties. I personally would rather get a better deal on a property and pay a higher interest rate for a couple of years and still be cash flowing on top of that interest rate still be paying down principal still building long term wealth, still reaping the words of appreciation, because as interest rates do come down, those property values are going to go up naturally over time those property values are going to go up. I’d rather be doing that than sitting on the sidelines, how am I money right away to inflation. So it’s always better to get time in the market than to try timing the market? And the answer to how do I invest successfully with interest rates being what they are, is, again, very simple. You just invest in good cash flowing assets that have enough revenue potential when you run that analysis that you know for sure you’re going to achieve your target rate of return, even when you factor in the higher interest rates that are just, you know, part of the business right now is what’s the best location do I need to invest where I actually live? And this is another really, really great question that I love answering. There’s ultimately no one size fits all right answer for this question. And again, the truth is that you can get a really great deal in just about any market with some markets been clear just for regulation purposes. So

there are certainly a few markets where you shouldn’t buy a short term rental. But there’s not just one market where you should. There’s a lots of markets where you can find a really, really great deals. And again, there are some markets where it’s easier to find good deals and some other markets where it’s harder to find good deals. But ultimately, that all depends on your unique criteria, what you’re looking for your budget, your goals, your aspirations, all these different things. If you’re curious and you want to learn more about what the best market for you specifically might be, then I encourage you to check on our free trainings link down below and or sign up and jump jump on a call with a member of our team. So we can discuss that in more detail and give you an answer that’s more specific to your exact situation. As far as whether or not you should invest remotely, I highly recommend that you invest remotely, you certainly can invest in your own backyard, you can invest locally, there’s no real problem with that. But I personally just think that for a lot of people investing remotely makes a bit more sense because you then open yourself up to lots more opportunity. You can buy some really great lifestyle assets that way in places that you want to make vacation to spend more time in, and it also makes it so that you kind of force yourself to be more hands off. And again, we can walk any investor through all the different systems and processes to make sure they can buy and manage a property completely remotely and be hands off. And ultimately, that is the best way to build passive income from your short term rental investing is to make sure that you’re hands off whether the property is right next door to you, or whether it’s all the way across the country, but just recognise that either one is definitely possible. What about regulations? Well, what about regulations? There’s no again, no easy one size fits all answer this, ultimately, regulations are a critical component of your short term rental investing, you want to invest where regulations are favourable, and you want to fully understand where the regulations are going to go in the future, in addition to just knowing where they’re at right now. Now, again, ultimately, no one has a crystal ball and can predict with 100% accuracy where things are gonna go in the future. But there are a number of things you can do to really stack the deck in your favour. Again, I talked about this at length in other videos, but there’s a few things that we do to make sure that the markets that we’re investing in are number one, currently very favourable to short term rental investing, and make it really easy to do so. And number two, that they’re also going to likely stay that way well into the future, so that we’re not going to run into issues down the road. Now, ultimately, we always factor in backup plans to our investment plans. So that if ever we’re not able to rent the property short term, we have a backup plan that’s going to have us coming out ahead financially. And again, we can talk more about that for your specific situation, you jump on a call with our teams, you reach out to us. But ultimately, we have that backup plan in place. So that if we ever need to, we can transition away from short term rental, but we want to optimise for not having to so that we can just ultimately maximise our returns, how should I finance the property? Can I do it with low money or no money down? And the answer is yes, there are a variety of different ways that you can finance your properties, you can use traditional lending, you can use DSCR loans, you can use commercial types of loans, depending on the property, you can do joint ventures you can find private money to invest with. And you can do it with low money or no money down that way. There’s all kinds of different ways that you can finance short term rental deals. And probably the biggest mistake that I see people making when it comes to investing in short term rentals and trying to figure out the financing, is that they think that there’s only one way to do it, a lot of investors out there think that the only way to buy properties is with your traditional 20% down, finance the rest of it use my income to qualify. And that’s just only going to get you so far. Ultimately, you’re limited by the amount of borrowing capacity you have based on your income, and the amount that you’re able to save up for things like downpayment closing costs, furniture, etc. And so if you want to grow more quickly, or you want to just, you know, build the portfolio much more quickly than you could otherwise, you want to leverage different types of financing, whether that’s creative financing, joint ventures, whether it’s DSCR lending, again, there’s just a variety of different ways you can finance properties. And so no matter what your situation, the answer to financing is yes, it is definitely possible is isn’t owning Airbnb or short term rentals, a whole lot of work people are concerned isn’t this just going to take up a whole bunch of my time I’m going to become unmanageable, especially as I grow and have multiple properties. And the answer to that is absolutely it will if you invest the way that most people invest and manage your properties way most people manage their properties, which is doing everything themselves without any systems without any processes without any automations without any team. Whereas on the flip side, if you have processes systems automations and you have a good team in place, it can actually be very, very hands off, it can be just as hands off as managing a long term rental property. But with the added benefits of way more cash flow way more control over your property never need to deal with evictions way better, you know use of your property right you’re getting people in there for a couple of days, they’re not marking up the walls, you’re not causing damage to your maintenance costs tend to go down significantly. You know, and I get that’s a controversial opinion. Anyone that hasn’t done Airbnb is going to tell you that your Airbnb or maintenance costs are gonna go through the roof. And anyone that has done it is going to tell you the exact opposite. So there’s a whole bunch of massive advantages to investing in Airbnb and short term rentals if you do it the right way, not the least of which are better care of your property, you know, more control over your property, no need to deal with evictions way better cash flow. And if you do it the right way. With the right systems, the right processes, the right team in place, you can have be completely hands off. So it really is passive income for you. Now, there’s a few different ways you can do that. You can hire a property management company, you can build your own teams internally. And which route you go with depends on your unique situation, your unique goals and exactly where your portfolio is. Again, if you want to get our help with building your portfolio, whether you’re just getting started or you want to scale to the next level, then let us know reach out to us we’ve got free trainings, linked in description down below you can also just reach out and set up a call with our team jump on a strategy section we’d be happy to help you through and see how we could potentially help you grow your portfolio. So with all that said, those are all the frequently asked questions if you have more that are on the top of your mind that have been kind of itching at your brain let me know in the comment section down below and I put together another video in the future answering some more of your guys’s frequently asked questions for now let me know in the comments section hit like on this video if you had any of these questions if you liked this If you got value from it at all just hit that like button if you want to support the channel and you want to stay up to date with the two new videos we post every single week here on the channel. Make sure you hit that subscribe button as well like I said I post new videos every single week had been for a number of years now and I’m my goal is really just to help you with Airbnb property management, Airbnb investing, whatever your journey with Airbnb and short term rentals is I’m here to help so make sure you hit that subscribe button so you can stay up to date with that. And last but not least, thank you so much for watching this video and I’ll see you in the next one. Take care

<< Back to Video Blog list

Join BNB Tribe!

LEARN MORE ABOUT OUR COMMUNITY