real estate investment Ebook
Overview of Airbnb/ Vrbo real estate dimes and why they matter to me
My family loves to travel; We are thankful for the memories we created and continue to create.
We enjoy visiting my older son who serves in the Airforce and has been deployed a few times.
We want to invest in vacation homes so that we can lodge with comfort for free, travel together, and eventually become digital nomads in a few decades.
Target audience
Professional and seasoned real estate investors can list their units on short-term rental sites (Airbnb/ Vrbo etc.) after analyzing local data. In most markets, short-term rentals (STRs) are more profitable than long or mid-term tenants.
Budding entrepreneurs can rent units and list them on short-term rental sites. Even if you have bad credits, you can do this by leveraging credit of a business entity. This is more profitable than several other side hustles.
First Steps to Short-Term Real Estate Investments
Form a team of real estate investment professionals like real estate agent(s), insurance agent, CPA and/or tax strategist, property manager(s), loan officers, etc. For example, a good tax strategist can help you save and significantly leverage your financial resources. My team with experienced and large-scale investors has numerous contacts, and we can share them with you. I interviewed multiple tax strategists before selecting the right strategist. We can help you significantlysave time.
Get educated and understand how basic tax strategies can positively impact real estate investments and accelerate wealth creation. Create a business entity like a LLC or S Corp or C Corp after discussing with a tax strategist and get a tax id. Our team can help you become an educated and more profitable investor. We can help you accelerate your success.
Funding Short-Term Real Estate Investments
If you do not have money to invest, apply for business-friendly cards using the business tax id. Use these cash reserves to rent a unit that can be a short-term rental. Make sure you budget to furnish the unit (s).
Your investment can increase your cash reserve and help you improve your credit score. In the future, several creative strategies can be used.
Professionals can apply for traditional/ commercial conventional loans. Private loans and crowdfunding can also be used. You can also use velocity banking techniques like helocs, credit card loans, or investor-friendly insurance policies to save monthly payments to increase cash flow.
Seller financing is a creative strategy that can be used, learning this strategy, and working with your team to do it right can save you a lot of money and protect your investments.
Each year, use tax strategies, such as 1031 exchanges, and depreciation to increase the cash reserves that you can re-invest.
Short-Term Investment Strategies
If you want to start very small, find a one- or two-bedroom unit that can be rented. Be honest with the homeowner and/or property manager and let them know what your intentions are. You have better results when you use a scripted conversation. Your lease can be terminated with penalties if you do not notify the owner.
Real estate investors can use short-term rental strategies, such as buy-and-hold, fix-and-hold, and turnkey investing. If short-term rentals become non-compliant when the local markets or local regulations change, make sure you have other exit strategies. Analyze the numbers of each deal diligently. I analyzed several deals with my team before I made the final decision.
Short-term rentals should always be compliant with local regulations, rules, and laws. Investing as a member of a team will help you.
Benefits of Real Estate Investments
The benefits of purchasing short-term rentals are appreciation, and tax advantages like depreciation of the investment. Real estate investments are tangible and can be managed using numerous creative strategies.
Purchasing or setting up rentals as short-term units will increase cash flow.
Your short-term rentals in growing markets will increase your annual income and when you travel you get to stay for free with great comfort.
Short-term rental tenants do not damage the property because the renters receive reviews on online platforms. The renters try to be very careful. Airbnb has insurance that will cover damages.
Increased profits will significantly improve the value of the properties.