Don't Arbitrage! BUY THE AIRBNB with ZERO money out of pocket! "Sub2" expert Adam Johnson!
Apr 27, 2022
auto_awesome
Adam Johnson, expert in using the "subject to" method to buy properties with zero to little money down, talks about turning properties into cash flowing Airbnb/STRs. They discuss the benefits of using Guesty for Hosts, managing an Airbnb business with an assistant, acquiring homes through subject to and rental arbitrage, the importance of diverse skillset and direct bookings, the use of phone numbers and links in Airbnb pictures, controlling guest reviews, Boostly's direct booking sites for Airbnb hosts, and paying for direct booking and the 'do on sale' clause in real estate.
Using social media is an effective tool for attracting sellers and finding subject-to opportunities.
Focus on the potential cash flow of the property rather than equity when considering subject-to deals.
Direct bookings provide more control over the booking process and eliminate the reliance on Airbnb.
Deep dives
Finding Subject-to Opportunities
To find subject-to opportunities, Adam initially used bandit signs and posted on Facebook groups. Over time, people started calling him directly, either from his Facebook posts or through referrals. He mentioned that social media, despite being slightly cheesy, is an effective tool for attracting sellers. He also mentioned that realtors and other investors would sometimes reach out to him, knowing that he specializes in subject-to deals.
Avoiding High-Equity Houses
Adam looks for houses with low or no equity when considering subject-to deals. He mentioned that equity is not a priority for him, as he focuses on the potential cash flow of the property. He prefers houses where he can rent them out for at least 30% more than the mortgage payment to ensure profitability.
Helping Sellers in Challenging Situations
Adam shared a story about a house occupied by a tenant with 26 pets. The odor was so bad that he couldn't enter the house. However, the desperate seller was willing to pay Adam $10,000 to take the house off their hands. Adam accepted the offer, fixed up the house, and turned it into a successful Airbnb property.
Mistakes Made and Lessons Learned
One mistake Adam made early on was not structuring a deal to cover the cost of repairs upfront. Instead, he paid for the repairs himself and didn't receive any compensation from the seller. He now ensures that he is reimbursed for any expenses he covers, either immediately or over a set timeframe.
The Power of Direct Bookings and Controlling the Process
Direct bookings provide more control over the booking process and eliminate the reliance on Airbnb. By offering guests the option to book directly and save money, hosts can bypass Airbnb's service fees and have a better chance of attracting responsible guests who follow house rules. Furthermore, direct bookings allow hosts to handle guest communications, reviews, and refunds themselves, giving them more control over their properties and minimizing the risk of negative experiences.
Harnessing the Potential of Subject-to Deals in Real Estate
Subject-to deals involve taking over mortgage payments without assuming the original loan. This strategy allows real estate investors to acquire properties with little to no money down and without the need for financing. By negotiating with distressed sellers, investors can help homeowners avoid foreclosure and assume control of the property. It is important to address the due-on-sale clause with lenders and provide reassurance that mortgage payments will be made in a timely manner. Subject-to deals can provide substantial opportunities for investors to build wealth and create a portfolio of cash-flowing properties.
Guest: ADAM JOHNSON
IG: @ADAMJOHNSON_REALESTATE
The Great Adam Johnson returns to LLT and is bringing the heat! He's uses the "subject to" method to buy properties with zero to little money down and turns them into amazing, cash flowing Airbnb/STRs. Also, he averages over 50% in direct bookings, leaving the middle man Airbnb out of his pockets! LIVE LET THRIVE Y'ALL!!!
Holler at Steve and Myka!
www.liveletthrive.com
liveletthrive@gmail.com
469-530-0239 (KEEP THE QUESTIONS COMING!)
IG: @liveletthrive
FB: https://www.facebook.com/LiveLetThrive/
Join our Fan Group:
https://www.facebook.com/groups/186424225256615/
Sign up for Guesty For Hosts (Formerly Yourporter): https://hosts.guesty.com/?r=liveletthrive
Myka's Info:
FB: https://www.facebook.com/myka.a.artis
IG: @sharebednbreakfast
IG: @mykaartis
Airbnb listings:
www.sharebnb.com
Myka's Consulting:
1-on-1 Consulting - Clarity.fm/sharebnb
Timeshare Course - https://gum.co/qErMd
Become An Airbnb Host - https://www.airbnb.com/r/mykaa5?s=6&t=061n0g
Sign up for Minut – Use promo code MYKAA
Sign up for Stayfi - https://stayfi.com?lmref=xSakAg
Get $65 off your next Airbnb trip - https://www.airbnb.com/c/mykaa5?referral_share_id=8c6f5e7b-fe89-4ab2-9bd0-26808cf9f36d
Sign up for Pricelabs - Referral Code - NpgYJI
STEVE'S INFO:
WWW.ARGESTRENTALS.COM (YOUR 1 STOP SHOP FOR EVERYTHING AIRBNB/STR MANAGEMENT, CALL STEVE NOW!)
www.facebook.com/stevenche
iG @stevenCheSuarez
iG @argestRentals
cell: 817-566-4777 (send me a shout!)
Mahogany Fitt's info:
www.facebook.com/Mahoganyfitt/
#airbnb #airbnbhost #shorttermrentals #BRRRR #realestate #turo #homeaway #VRBO #corporatehousing #shareeconomy #podcasts #podcast #liveletthrive #realestateinvesting #airbnbsuperhost #airbnbpodcast #sharebnb #liveletthrivepodcast #biggerpockets #shorttermrentals #directbookings #directbooking #bookdirect
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode