Get Paid For Your Pad | Airbnb Hosting | Vacation Rentals | STR Revenue Management Creative Financing Strategies to Acquire Airbnb Properties – with Isaac Moore & Andrew LeBaron
If you have dreams of buying properties to list on Airbnb but you don’t qualify for a traditional mortgage, all is not lost! You can still acquire real estate and build a portfolio of short-term rentals by way of creative financing.
Isaac Moore and Andrew LeBaron are the Cofounders of Buy More Time, a short-term rental property management company out of Arizona. Isaac and Andrew are also experienced real estate investors who specialize in using creative financing techniques to scale a STR portfolio and helping others do the same.
On this episode of Get Paid for Your Pad, Isaac and Andrew join me to share their top creative financing strategies for acquiring Airbnb properties. They explain how to leverage seller financing, hard money or personal lenders to build your short-term rental portfolio and offer advice on using non-qualified mortgage products to purchase properties. Listen in for Isaac and Andrew’s insight on selling a lender on your hosting track record and get their five-step plan for buying your first STR properties with creative financing.
Topics Covered
How Isaac & Andrew got into short-term rentals
- Seller financing deal in Mesa, Arizona
- List on Airbnb to earn 3x market rent
Isaac & Andrew’s journey to starting Buy More Time
- Sold lease on first unit for $30K
- Use profits to arbitrage additional listings
- Start property management company
Isaac & Andrew’s first seller financing deal
- Take over mortgage, no money down
- Lease with option to purchase
- Control property without ownership
Why a property owner would do seller financing
- Lessee makes upgrades to property for STR
- Lessee takes over mortgage payments
The note and deed of trust method of seller financing
- Offer small non-refundable down payment
- Pay 1% or 2% interest on balance of home
- Pay mortgage (through 3rd-party company)
How Isaac & Andrew partner with a personal lender
- Friend in network willing to loan $30K
- 6 arbitrage units up and running in 30 days
- 10% interest-only payments for 12 months
The benefit of non-qualified mortgage products
- Prove rental income with Airbnb statement
- Put toward purchase of another property
The difference between hard and soft money
- Hard = at least 10% interest, short-term
- Soft = 7% to 9% interest, long-term
What makes hard money a good tool for STR
- Lenders willing to finance based on ARV
- Refinance and use equity to buy more units
- No pre-pay penalties
Isaac & Andrew’s 5-step plan for getting started
- Find landlord willing to do lease option
- Furnish, beautify and list on Airbnb
- Document everything to show income
- Ask landlord to deed/seller carry property
- Refinance property with Isaac
Connect with Isaac & Andrew
Email information@buymoretime.com
Resources
Get Paid for Your Pad on YouTube
The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph by Ryan Holiday
Email jasper@getpaidforyourpad.com
Sponsor
Hostfully [Discount Code PAD]
Hosted on Acast. See acast.com/privacy for more information.