Traditional real estate investing requires saving for a down payment and securing a bank loan before you purchase an asset. And this process limits how often you can add properties to your portfolio. But that is not the only way to acquire real estate, and Scott Glass contends that with a little creativity, you can own more properties and accelerate the growth of your STR listings!

Scott Glass is a serial entrepreneur and real estate investor who manages 65 STR units in his native Canada, the US and the Dominican Republic. He has been active in the space for nine years and full-time for the last five. Today, Scott joins me to share his unconventional method of acquiring more properties more quickly, the land contract or seller financing strategy.

Scott explains how the above-average cashflow of the Airbnb model supports land contracts and walks us through the process of finding FSBO properties and negotiating with owner-investors. Listen in to understand how Scott’s focus on larger properties helps him stand out on STR sites and learn how he leverages what he calls clustering to accommodate large groups and earn a premium on his listings!

Topics Covered

Scott’s background in the STR space

Active nine years and full-time last five
Listings in Canada, US + Dominican Republic

What inspired Scott to pursue Airbnb

Unconventional strategy to acquire properties
STR provides above-average cashflow

Why Scott uses land contracts or seller financing

Deal directly with investor-owner
Find motivated seller living in different market

How Scott finds seller financing deals

Basic research on Craigslist and Zillow
Search FSBOs by zip code (larger properties)

The terms + conditions Scott proposes

Cash offer for significant discount
Zero down, balance of sale over 60 months

Scott’s success with the land contract strategy

Recoup investment within two years
Own asset debt-free by year five

The fundamentals of land contracts

Title held by owner until final payment
Value-add in lieu of down payment/interest

Scott’s success in secondary markets

Attracts business travelers, tradesmen
Recoup investment in 15 months

How Scott stands out on Airbnb

Large properties to accommodate groups
Less competitive and higher yield

Scott’s cluster listing strategy

List entire nine-unit building (i.e.: weddings)
List entire floor (cluster of three units)
List clusters of two 60 days out
Make singles available 30 days out

Connect with Scott

Scott’s Airbnb Profile

Resources

STR Legends Live

Craigslist

Zillow

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When Towns Go Missing | Podcast Episode 85