What’s up guys, in today’s video, I’m going to share with you the problem with real estate investing that most people just don’t talk about. I see so many people posting about all the upsides of real estate investing. But I see very few people talking about the downsides. But yet, when I get on calls with investors and actually talk to them, I hear a lot about the problems that they often face. And so I wanted to share in this video some of the most common problems that I see investors coming across when it comes to real estate investing. And I also want to share with you how you can avoid them, because real estate investing isn’t necessarily all it’s cut out to be.

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So let’s jump in. And let’s start by talking about some of the problems with real estate investing, the first of which being the eviction process. So many investors that I speak with have tenants in their homes, in their properties that they own, that they’re not able to get out of there because of lengthy eviction processes, and a whole bunch of different regulations and rules that say that they don’t ultimately have control over that property. Now, I don’t know about you, but for me, if I’m going to invest 10s, if not hundreds of 1000s of dollars into buying a property. And I’m going to take on the risk associated with owning that property, having my mortgage payment that I need to pay every single month and everything else, I sure as heck want to have control over that investment. So many people get into real estate investing, because they realise that investing in things like crypto, the stock market index funds, just doesn’t give them real control over their investment. And so they turn to real estate, and they’re attracted to it, because it gives you so much control. The problem is, when you operate that real estate as a long term rental, you often don’t have real control, you may think you do. But when it comes down to get a bad tenant who is not paying rent out of the property, in a lot of countries and a lot of states, it’s just really challenging to do that. The next big problem I see people facing is damages, their tenants will just damage their property, not actually take good care of it, and leave it in worse condition so that by the time the tenant actually leaves that property, there’s so much work to do, just getting the property back up to par with where it needs to be painting the place cleaning the place, repairing any other damages, that it knocks out a large part if not all of their cash flow. So suddenly, now you think you’ve been cashflow positive every month for the last year, but your tenant moves out. And you realise that there’s so much renovation work and so much fixing up that needs to be done that you don’t actually get any cash flow. And the other big challenge I see people facing all the time right now that is more common than not is the variable expenses, people are seeing that their expenses are going up. And they’re just not able to raise their rents enough to be able to profit, we’re seeing this across the board and areas that do have rent control in place like all kinds of areas within Canada, where you can only increase your rent cost by a certain percentage each year. And it’s very, very minimal. Whereas suddenly, your variable rate mortgage just went up 2% Over the last few months here. And so now you’re sitting there struggling going well, you know, my cost of owning this property has gone up significantly. But the income able to bring in can’t go up accordingly to match. And so I’m seeing a lot of people in either cash flow neutral or worse cash flow negative positions on their properties. And so now it becomes a really risky proposition. And if you’re investing in long term rentals, where you can’t actually accommodate and account for that increased costs, and you have really small margins to begin with, there’s really not a lot you can do. And so obviously, the solution to all of these problems is to just get more control over your property, you want to be using your property in a way that gives you have full control over who’s in there, how they treat your property and how much you charge for the property. You also want to have additional protection so that if people aren’t paying or they’re not leaving your property, or they’re damaging your property, you can actually do something about that and be fully protected, and not have you be the one bearing the cost for all that the reality is as a long term rental landlord, you’re paying the cost for any damages that a tenant does, you’re paying the cost for the last rent because that tenant isn’t paying while you go through the eviction process. That’s why short term rentals are where I see a lot of investors turning to short term rentals gives you the control to be able to actually decide how much you charge for your property who’s in there and who’s not. And it protects you from any damages. With any one of these platforms. Now you get up to $3 million in damage protection, not to mention your home insurance policy that acts as a backup layer of protection and the security deposits that you can collect from guests that add a third layer of protection. So now suddenly, when guests do cause damages, you’re not the one left holding that

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and having to pay for that. And also you get to control who’s in there and who’s out of there. Because with short term rentals, the people that are staying at your property are guests, not tenants, they don’t get the same rights that tenants do. And so if someone is overstaying their welcome, or they don’t pay you or you have an issue with them, they’re trespassing, you can just get them right out of the property, as opposed to having to go through some lengthy eviction process where they hold your property hostage. And next, you also get to actually control how much you bring in. Right, you can increase your prices if you need to. And so for things that are happening, like variable rate mortgage increases, if your insurance goes up to your property taxes go up. As a long term rental investor, you’re left holding the bag, there’s not much you can do, you can raise the rent in some areas, but in other areas you can’t. And with a long term rental, it just doesn’t give you that real control over your asset. Whereas with short term rentals, you get to decide how much you’re charging every single step of the way, not to mention the fact that there’s a whole bunch of additional margin built in with short term rentals, we’re regularly seeing 15 to 20% cash on cash returns on the properties we’re investing in. Whereas with a long term rental, you’re lucky to get half of that. So short term rental investing, you get more control, you get less wear and tear, because people aren’t in your property damaging it for an entire year, you literally have a cleaning staff that goes in there every few days to make sure the property is in good condition, and you get way more protection in case anything does happen. So not only you’re getting more return on your investment, you get more margin, which allows you to make more money with a lot less capital upfront, a lot less time and effort and also gives you the margin to actually be able to outsource and still make cashflow. It means your capital expenses aren’t eating up all your cash flow. So you can actually build real wealth and actually keep investing in compounding that that investment that return that you’re getting, you have more protection and more control. It really is the solution to most real estate investors problems. And so that’s why every single day I’m talking with real estate investors who want to start investing in short term rentals. And their big question is how 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 ease 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 Airbnb. 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, that’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’ll 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.

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How do I do it because the reality is it is a different game than long term rental investing, you need to know how to analyse properties differently, you need to know how to manage the property differently. You need to know how to do everything to make it a knock out of the park homerun success. Because again, there are certainly investors who get into without the proper know how without the right tools without the right experience. And they’ll make mistakes that ultimately cost them a whole lot of money and a whole lot of time. So if you are one of those real estate investors, who wants more control over your property, who wants better returns, who wants better protection, less downside and more upside who doesn’t want that, then just check out the link in the description down below. We’ve got a free training that walks through exactly how to invest successfully in short term rental properties. I can tell you from speaking with hundreds of investors that this is a way better path than investing in traditional long term rentals that give you no protection, minimal upside and a lot more risk. So if that’s something you’re interested in, check out the link in the description down below. We’ve got a free training video that walks you through all of it step by step it’s gonna give you everything you need. We’re always going to be going to give you some free tools to help you get started on analysing properties, and just started on really having more control over your investments and getting better returns. If you’re out here working hard for that money you want your money to be working hard for you doesn’t make sense to put it into an investment vehicle that takes over your time and just barely breaks even or barely beats the market. I also see way too many real estate investors accepting breakeven cash flows and banking on

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The appreciation that’s like buying a lottery ticket, you don’t know what’s going to happen in the market. And the reality is if you buy a property that breaks even now, good, chances are that in a couple of years from now, it’s going to be cash flowing negative, because your costs are going to keep going up, and your income is likely not going to be able to keep pace because of the lack of control that you have over when it comes to long term rentals. And so naturally, that’s just a really, really bad position to be in. You never want to be in a position with a property where you’re cashflow negative, because if you can no longer afford to hold that property and support the negative cash flow, you’re going to be forced to sell. And if that’s not aligned with when the market is in an upcycle, you’re going to be left holding a really big bag that is not fun to be holding. So if you want to find the solution to all that and you want to invest successfully and strategically into short term rentals and get a great return on your investment, then again just check out the link in the description down below for a free training that walks you through all of it step by step. I hope this video helps you any of you guys that are real estate investors that want a better path. Make sure you check out the free training that’s linked in description down below. Make sure you like this video give it a thumbs up if you got value from it if you can relate to what I’m sharing here. If you’re one of those investors give this video a thumbs up help it to reach more investors like you. Let me know in the comment section down below if you have any thoughts, comments, questions, anything you want to share with me. And last but not least, make sure you hit the subscribe button for you leave the channel as well. We post two new videos every single week helping you to succeed with your short term rental investing. So make sure you subscribe to the channel to stay up to date with those two new videos every single week. With that being said thank you so much for watching, and I’ll see you in the next video.