Buying An Airbnb with No Money Down

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Hey, what's up guys, it's James here and in today's video, I'm going to talk about how to buy an Airbnb property with no money down. And no, this is not some different way of positioning rental arbitrage where you just rent a property and then flip it onto Airbnb, I'm not even talking about managing a property and just controlling it with a percentage management fee, which is a great model, though that I do recommend as well, I'm actually talking about owning a property without any money down and actually owning it and being able to benefit from both the equity appreciation of the property, whether you force equity appreciation through actually doing strategic renovations, or just a consistent appreciation year over year, also benefit from the built up equity that you have from the mortgage paid down and also benefit from the cash flow being generated from the property on Airbnb.

So again, this is real property ownership we're going to be discussing in this video without any of the downpayment. So I'm going to talk about all that in detail. Now, for anyone before we get started, who is interested in investing in short term rentals, whether using this strategy to deal with no money down without having a mortgage that having any money down, or if you just want to go the more traditional route, and you have a downpayment saved up, you want to you have mortgage capability, and you want to invest into a property for short term rental, maybe you're new to investing or maybe you're an experienced investor, but you actually just want to get started investing in short term rentals and Airbnb properties, then click the link in the description down below to schedule a 15 minute chat with me, I would love to chat with you and see if we can help you to reach your goals.

With short term rental investing over the next six to 12 months here, I'm going to work with a really small group of just 15 people over the next six months, helping them to invest in profitable short term rental properties, profitable Airbnb properties. So if that's something you're interested in, then just click the link down below to schedule a quick 15 minute chat with me. Now, these 15 minute shots are only going to be open for the next couple weeks here. So I apologize if you're getting this video too late. There are some other really useful links in description down below that I recommend you check out as well. And hopefully, you'll be able to get into that 15 minute chat with me before the spots all fill it up. And before it's too late.

So all that out of the way, let's dive into it, let's start talking about how you can actually invest in a property for Airbnb with no money down. Now, what this strategy really comes down to is finding what we call a money partner for the deal. Now, this is actually something that just anyone can do if you know how to do it. And there's a couple things that you need in order to do that. But basic strategy is that you're going to go and find a person who is interested in investing in a property, and you're going to bring the management to the to the table and the off market deals.

So you're going to find the deal for the property and you're going to take care of the management, the other person is going to take care of the money and the mortgage. So those are the four M's of doing a real estate deal, you've got the management, the off market deal, the money and the mortgage. Now for the person bring the money and the mortgage, they're going to be completely hands off. So there's a really nice and beneficial to them is that they can actually invest into a property, you can show them pro forma of how you project it's going to do give them some nice projections, and they're going to get a nice cozy return on their investment every single year, you're going to have some different ingredients draft out for the way things are going to be structured.

There's a whole number of different ways you can structure this take it really advantageous for that person putting in the money and the mortgage, and they're going to get to be completely hands off. Now, a really cool thing about that. And the reason investors are interested in doing this is number one, that is a really great return. And number two, that they get to leverage their mortgage capability. Now a lot of people out there, we like to say there's, you know, an abundance of two things in North America and in the world, it's money and mortgages, a lot of people have money sitting around ready to deploy, that they would love to have invested into something that's going to yield a much stronger turn, but they just don't know what to invest it into or have the time to figure that out.

And the other thing a lot of people have access to is a mortgage. And the really cool thing is that, you know, for a lot of people, they have access to a mortgage, meaning that they'd be able to go and apply and get approved for a mortgage on a property but they're not using it, let's say they already have their own primary residence, they could get a second mortgage or even a third mortgage, but they're not using it. Well then that lending capability where you can go and borrow hundreds of 1000s of dollars at a silly silly low interest rate and apply it to a house where you can actually get that cash flowing for you. Well, they're huge. They're taking this huge, huge asset, they have this mortgage and they're not using it.

So if you come along and you can actually help them to use that asset that's going to yield them not only return on their actual money, they have to invest for the down payment, the closing costs,but it's also going to be able to get them a return on that mortgage, that mortgage that they're going to be able to get from the bank. So they're using both their cash asset and their other assets is hidden asset that most people don't think of the mortgage capability and they're able to get a phantom return on that investment.

And then from your side of things, it's fantastic as well, because you might not have the mortgage saved, or the mortgage capability, you might not have that downpayment fully saved up. And so you get to go and use your expertise in managing this property ongoingly, making sure that it performs well. And finding that off market deal, which is a challenging thing for a lot of people to do, because that person that has the money set aside and wants to invest passively is oftentimes not the person that wants to go and put the work into managing the property ongoingly, or into finding an off market deal or learning the strategies required to do that with minimal input, they usually just want to take their money handed to someone that they feel confident in, and just not worry about it.

So the really cool thing here is that you guys each get to benefit in different ways, and you get the reward without putting any money into the deal or using your mortgage capability, you now get the ability to actually benefit from both the equity build up in the property and the cash flow of the property spitting out. So it really is the best of both worlds, it's a really fantastic model for both of you guys, it can be a really huge win when you actually get to own this asset that's ideally going to appreciate in value over the years. But even if it doesn't, we never want to invest based on and hoping for appreciation we want to invest for cash flow.

So the really great thing here is that not only are you going to find a property is going to be able to actually cashflow several $100. And I'm going to show you as well how to do it where you can even generate over $1,000 a month in cash flow from the property, you're also building equity by just paying down the mortgage on that property year over year over year. So it's gonna be a really great long term buy and hold strategy. And you can do things initially to build instant equity. So if you buy the right property that needs some strategic renovations, then right off the bat, if you get that property for a good deal, you do the right strategic renovations, and you use another person's capital to do those renovations, then all of a sudden, now you can build up 30 $100,000 in instant equity.

Again, depending on the property, if you're buying a smaller property, you're gonna have less instant equity build up. But the deal that we recently did, we were able to add about $150,000 of additional equity. Now if you take off of that the cost of our renovations, we're still sitting with about 8070 $80,000 worth of additional equity that we have in that property that's just been created through that renovation, right. So right off the bat, you can make a huge amount of money just with that and the equity build up alone. And that's before the property's even listed on Airbnb and starting to actually cashflow. Now, again, I can go into and talk for days about why the strategy is so fantastic.

It's just a really, really great opportunity to keep on going and building up your real estate portfolio. Know when you might be limited by the amount that you can deploy into a first month or a certain on a first month's rent, but rather into a first payment that down payment for the property for your next property. And your mortgage ability might be limited as well. Now, it's not to say that you can't also put money into the deal or also be a part of the mortgage, you can also work things out. Generally, if you're getting putting some more money into the deal. And you're actually going to have involvement in that downpayment as well, it just means you'll get a bit more equity in the deal as well.

So this is great for people that maybe have a little bit of money saved up, but not quite enough for a full downpayment, that they can get some skin in the game as well. And they can have their money working for them as well and leverage this asset, even though they wouldn't technically be able to actually qualify for a mortgage. There's a whole bunch of different ways you can structure things to make it really advantageous and make it a win win for both parties. But honestly, this is a strategy that I absolutely love for getting into Airbnb and short term rentals.

I've talked about in the past why I don't like rental arbitrage, because you're putting money into first and last month's rent and furniture for the property. So you're actually putting up your own money. And when you do that you don't have any equity, you're not buying an actual asset that's appreciating your advanced buying some furniture, that's going to depreciate heavily right when you pop by and set it up in the front and the property. And then even more so once it gets used by your guests on Airbnb.

Whereas with this strategy, you're actually investing your own money, it's not just an expense that's going out the window, you're investing it into an appreciating asset of real estate. And you get to reap all the rewards of property ownership without actually putting your own money into the deal. And you now get all the advantages as well of managing properties on Airbnb plus, so if managing properties on Airbnb is going to yield you cash flow as for a management fee, you only imagine that you're going to get a great return as well. If you actually are 50% owner in that property and you get 50% of the cash flows 50% of the equity that it comes to the renovation of the property, and 50% of the equity that comes from paying down the mortgage every single month. It doesn't take a lot of complicated math to realize that this formula absolutely yields a huge win for both parties.

So again, if you're interested in learning more about How to actually do this how to make this happen, make it a reality, then just click the link in the description down below. There's a quick link where you can schedule a 15 minute chat with me. And I would love to talk to you more about how we can make this reality for you. Again, it's very, very limited capacity. So if you're interested, click the link right now to get started, book yourself into a chat, because I'm only going to be having these chats with people for the next couple weeks here.

And we only have 15 spots available for our cohort of people that we're going to be working with closely over the next six months to work with them to get their first profitable short term rental listing up and running, purchased up and running. So again, working with a small group of people, don't miss your chance. If you're interested, just click the link in the description down below and schedule yourself into a 15 minute chat and I would love to discuss and see if we'd be a good fit to help you with your goals or not. I hope you've gotten a lot of value from this video. If you have please give it a quick thumbs up. It really helps out tremendously with YouTube's algorithm if you just click the like button, click to give this video a quick thumbs up and I will see you in the next video.