Have you ever wondered how you can start making money on a vacation rental
property but you don't have a lot of money to put down? You want to buy a
vacation rental. Well, I'm going to be telling you how. This video is going to show
you and tell you exactly how to buy a rental property with no money down. Let's
go.
In this video, I'm going to give you some clear steps and tell you some great
secrets on number one, how to start getting those rental properties that
make a lot of money. Where to find them and who you should be talking to before
you ever even decide to buy that rental property. 2, I'm going to tell you what to
say and how to set up the agreements so that you can get those properties with
no money down. And then we're going to talk about how to scale the business where
you can get furniture furnishings and everything that you need for your rental
property without spending any of your own money. When it comes to vacation
rental properties, there's a lot of money to be made but you often have to put
money down in order to get the property. Especially if you want to buy the
property, own it and then furnish it and start making money with the vacation
rentals or with Airbnb or however you... Whatever websites you want to put it on.
So, we got to kind of talk about how do you get properties. Before we ever even
get into the short-term rental, let's talk about how you would even get a
property with no money down. The first thing that you want to do is start with
marketing. You want to find people and market to people that have property
problems. This is a great niche for real estate in general but it's perfect for
buying properties without money down. Most people, if they're just looking to
sell a property and they put the property for sale with a real estate
agent, they're going to want you to bring a pre-approval letter. They're going to want
you to get qualified by a bank. And they're going to want you to come up with
some down payment so that you can put earnest money down and then buy
the property. Well, that's one way to do it.
But here's a better way. You can do what we call a lease purchase or a purchase
option. And this will give you the right to have the property. It's yours. The
leases in your name and then you can purchase the property at a later time
for a set amount of money.
Many states call this a lease purchase. Some states
call it owner financing. Some states call it leased with a purchase option. Check
your state to find out what the correct terminology is. But the general idea of
this is that you lease the property for a certain amount of time for a certain
amount of money and then you purchase the property. Or you have the option to
purchase the property. You don't have to purchase the property. You have the
option. So, let's talk about what type of properties might work for this. The
properties are going to be your same vacation rental type of properties,
wherever there are hotels essentially. So, if there's a hotel in that town or city,
then you probably could have an Airbnb there. Because remember, I've taught you
this before. This is another link to a video so you can learn all about it.
You're competing with hotels mostly, not rental properties. So, if there's a hotel
in your city or town, then you probably could have an Airbnb there pretty easily
as well. So, it's not so much about the property. So now, we've decided, "Okay, the
property is okay There's rent there's Airbnb is in that area already." So now
we've decided it's suitable. So, who would we target? Who would we market to? Well,
people that have a problem with their property. These people are going to be
way more open to negotiate with you. So, you're going to market to people that are
in divorce, that someone died, that they're in foreclosure they're behind on
their payments, they lost their job. Whatever the situation may be. Where they
are not able to make those mortgage payments. And they are more open to
options where you could go in and negotiate and get that property and
start making some money. Maybe joint ownership or you know, some joint
ventures with the seller. Well, I'll give you some great options there. But these
are easy, easy ways to reach out to people that have a problem and then
offer a solution where they make money and you make money. Once you've
identified these property problems and you've contacted the seller, okay? So, you
sent out letters or you put out signs or you know you called around to see people
that were in foreclosure, you bought a list. Again, I have some videos here that
teach you about how to find people with property problems. It's pretty easy. So,
you found these people and now you're on the phone with a seller. And they're
behind on their payments or they're losing their job. Or they're being
relocated or whatever their issue maybe. You talked with them and you negotiate
with them to get that property and you let them know what your business
proposition is. You pitch to them essentially.
And I'll give you some words that you can say. You let them know that this is
the business that you do that you are going to be using their property and
you're going to have short-term vacation rentals and you're going to have business
travelers in that property. I would probably stay away from the word Airbnb
because that does scare some people and they don't necessarily have enough
information about what Airbnb is. They may not even know or understand what it
is. So, that's not probably a term that I would use. I would say vacation rental
people or vacation travelers and business travelers. Keep it simple to
terms that they understand. Let them know that you are going to pay the rent. You
are going to be responsible for paying the rent. They're not going to be collecting
rent from all these different people. You'll make one payment directly to them.
You will furnish the property if it's not already furnished and you will
maintain the property and deal with the guests. They don't have to worry about
anything. This is a pretty easy sell especially if someone is having an issue
with their property where they can't pay for it. And they're looking for a way to
get out of the property but not ruin their credit. So, you really got to be
able to explain to that seller that this is such a benefit for them. Many of them
might be a little bit scared off and think, "Oh! Well, what if this person
doesn't pay?" Again, they don't need to worry about those vacation renters or
those business travellers. You handle that. Let them know that this is
basically an agreement between you and them. Try to minimize that there's all
these other people in the mix. Because it really doesn't concern the
seller. You want to keep your conversation really clear and what the
benefit is for them and sell yourself. Okay? You're selling yourself that you're
a professional, you're a business owner and that you're going to maintain this
property and this is the business that you're doing. And I promise you so many
tired landlords are so interested in this. I actually have a list of them. We
have some contact information below if you want some more information on that.
But we have a ton of tired landlords that are looking for people that will
manage their properties and they don't have to pay these 2. Now, once you have
gotten the seller to kind of agree to do this for you, usually what I do is I say,
that "We're going to do this for a year." And actually do this for my own benefit. So,
with the lease purchase, I agree to lease the
property for one year. And if I find that the property is profitable, then I will
buy the property. If the property is not profitable for me, I just break the lease
or after a year, I just terminate and I give them the property back better than
they got it. And I'm telling you so many landlords are jumping all over this
because I'm managing the property. No more phone calls, no more late night this.
No more late payments. I will pay the rent. I will handle everything else. And
they are jumping all over it. Now, you have to furnish the property. You got a
great property. You're ready to go. You haven't put any money down or you put
just a little bit for the lease deposit. And again, so that may be a question that
you have. "What about the security deposit? What about the security deposit?" So, this
is why I said to you that you are looking for people that are in an issue.
So, say for example they're behind on their payments and you need to catch the
payments up so that they can move out of the property. Well, this is where business
credit comes in, okay? And again, I have a video here for you that talks about how
to get you some business credit or even just use your personal credit while
you're building your business credit and then transfer that debt over to your
business. I'm going to make a whole video on that because that is super informative
and something that you need to be doing. So, if you can't if you don't have
business credit yet which again, after like 3 or 4 months, you're going to
have business credit. So, say you don't in the beginning and you just need to use
your credit cards, that's what you will do. Many places like rooms to go and a
lot of these other furniture stores, they have these interests, no interest for a
certain amount of time and you get the furniture and you make payments. Now, some
of you may be a little bit afraid by that but please don't be. Remember, you're
in a business. And each business will have expenses in order to get started. And
one of your expenses in your business maybe furnishing that place. And so you
may borrow the money to furnish the place. But again, you're going to keep
treat this as a business and you're going to be making profits once you list
that property. This is why we list our properties really quickly and we start
making money really quickly so that if we have debt, we pay it off. And now, it's
time to buy the property. So, it's been a year. You've been renting this place out
on Airbnb. You're making 2, 3 thousand dollars
month. Hopefully you're doing it the smart way and you're putting some of
that money aside. Because what you want to do is start saving that money for the
down payment when you eventually go to buy that property. Or in many cases, I
have some great mortgage lenders that'll teach you how to refinance the property.
So, you don't even have to buy the property. You already have the lease,
you've been owning it essentially. And now, you can refinance the property into
your name and that's how you bought the property with no money down. I hope that
you really understood everything that I said and that you got a lot of value out
of this. If you have any questions or any comments, please comment below. I read
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