AH . Yes
This coffee, is really good
Again, siphon coffee. No I'm not paid by siphon coffee to tell
you how awesome the coffee is, I'm just in Houston for the day, and this is where I like to go to get coffee.. so welcome back
today I'm going to give you something because you asked for it one of you did
Brian what you asked for is a checklist how to get started doing rental
arbitrage what is it that you need alright so let me break through some of
the myths about real estate here and teach you how to do rental arbitrage
from the beginning without any of the the BS or all the elitisisism.. ..elitism?
Elitism, okay cool you don't have to own property you can do it right from
the beginning easy a few thousand bucks you know it's not a big deal so let me
tell you separated okay so welcome back Airbnb family like I said I'm in Houston
I'm working on one of my properties let me tell you about this little cool thing
so set up the property it's a two-bedroom but only one bedroom could
get done in time because there's an amazon prime shipping delay as usual..
right so what we did is we marketed off the property as a one bedroom and left the
other bedroom unfinished and rented it out for a week while waiting for
everything else to show up and I went to Dallas and did my thing and now I'm back
to finishing the second bedroom video on this place coming soon by the way so you
know I know how much you guys love looking in my interior design skills (sarcasm)
with that said without further ado the startup checklist. I need to tell you a
story about how I got my first lease before I did my Airbnb lease I think this is kind of important to know
There's flies everywhere here I think flies like coffee -too here at Siphon. They've been genetically
modified to drink coffee I started my business in 2010 but I formed by LLC for
that business in 2012 only because I needed to pick up an apartment in
Thousand Oaks California the address for this place is 300 rolling oak strike in
Thousand Oaks California it's an apartment complex you can look in so
what they said because I was evicted in 2009 and had that on my on my
good so I couldn't get a place cuz I went homeless in 2009 and a lot of you
know this right it was a hard year it was really hard year so for those of you
new to the channel don't even start with me it's lessons learned I need to learn
on this channel about that so 2009 evicted car repo'd everything
so now 2012 they're like well if you want to stay here why don't you just
start an LLC and apply as a company and will approve you that way
Cha-Ching, right? so I formed a Texas LLC and gave them personal cash
flow statements from my regular bank account or my business bank account that
was under my social security number DBA style and that was sufficient and I got
approved like four days after my LLC was finalized that's how fast it was so
here's some things some like leasing agents or leasing offices will require
that your LLC is two years old some some will require that you have a dun &
bradstreet number on top of that and that that dun & bradstreet number is a
couple years old also some will require that you have business credit like a
paydex score forty or sixty or eighty five things like that some will require
three months of cash flow four months of cash flow one year of cash flow or tax
returns or an income statement all these things could be required but very rarely
are they all required so let's get realistic here and it's talk about what
you need from that list but there's one other thing bonus that I'm gonna give
you two you need an LLC unless you're talking to landlords like little houses
or just a few properties or easily influenced maybe have like one or two
multi families cool you can talk to them and get them to agree to do business
with you and you could do it as a show to fry it or ship and there you go
right you could but most times when you play with the big boys they want to see
that your big blue - right so or a big girl - sorry I hate just full like why
do we use the word boy or men you guys right let's see if they want to see that
you're playing in the big leagues next up is they'll want to see the money cash
is king so the way I do this is I normally opted a show of bank statements
three or four months of bank statements one building asks for a year of bank
statements just to show that we had enough income over the course of the
year because their leases were for a year and that was cheddar right a lot of
places will allow you to use your personal income and it might need
3.5 times rent for point times five point four point five times rent or like
ten times worst case scenario of rent that I've read once in application
well here's B's pulled out that lets say you're applying for four leases the
monthly rent is 1500 ollars a month okay you then show that you make four point
four point five times $1,500 a month and that's good even though you're picking
up for leases at the total rate of six thousand a month they still only wanted
four point five times of one alright you don't have to be rich to do this if you
make six or seven thousand dollars in revenue in your bank account that's not
even net income right let's say you're borrowing money from friends and giving
that money back there's just cash in and out of your bank account seven thousand
dollars of cash in and out of your bank account will be enough to pick up to
$1500 lease before but five of them alright got it now
some places this is not good in you'll need it but dun & bradstreet number to
get a Dun & Bradstreet number it's easy you go to D and b.com right you can get
a free one it takes two months to do you free dun & bradstreet number otherwise
you can get an expedited one pay almost 200 bucks and you have one in the five
business days so some places with your LLC Dyna Bradstreet number and proof of
income you're done right that's it but some it's more like taxing let's get
into that some buildings require that your businesses around two years or your
dun & bradstreet number has been in file for two years and you have me
delinquencies this will happen if this is the case you'll have to wait through
these buildings if you cannot convince them to change their mind you can always
go to the owners of the building and get them to approve you but that's also
separate process and less easy we're talking about getting started right okay
so here's another way that you can do this let's say your business is new you
don't even have a done in bradstreet number but you have your LLC maybe of
cash flow maybe you don't there are some places that if you provide proof of like
like trade lines they'll approve you if you provide five people five businesses
that claim that they do business with you you're never late on your payment's
you're not delinquent or whatever if they can get three of those five
verified they'll approve you anyway right yardie pro does this with some
buildings it's embraced our properties sorry great star this is true so you can
get in at super low barrier to entry just as long as you have people that
like you how about that so on this checklist it's good to have friends
five of them in business had your LLC get a Dun & Bradstreet never as soon as
possible try to make sure that your bank account
has at least seven thousand dollars a month cash coming in and out of it for
at least three months maybe four months and that should be enough to get you
started and to get you first leased or source for leases okay you don't have to
have a student ice every word oh geez trying to rig my coffee and talk to my
friends guys okay okay so that's it right as you grow you get you give
rental references from other buildings and sometimes those rental references
will matter when you're getting new property but let's say you pick up
something with property management company a and you keep expanding with
property management company a through multiple locations they'll already have
approved you at one so it's gonna be like a domino effect of approvals so
breaking some of these myths you don't have to own property to get an A or
maybe you just don't have to um you don't have to have a ton of money you
don't have to be an investor you don't have to be rich that's a lot of the junk
that we've been told okay so here's the thing I firmly
believe that people with money try to make it look like it's hard to get money
because they want to keep you from trying they don't want to create
competition by inspiring all these people to go out and make their own
money if I was a doctor and said being a doctor is not all that hard
medical schools not all that hard why don't you go and do it if I make my job
like being a lawyer a doctor or anything else look easy and I flood the industry
with doctors lawyers or CPAs they make less money I know guys like a person
know guys who define themselves by their work I kind of do as a business in its a
lot of my identity that's an ego Jake right I'm a white-collar professional
I'm a doctor I'm a surgeon what they do you can make more money than a surgeon
makes with like 15 Airbnb properties Russia you make like 15 $20,000 a month
game over so skip it if you want to unless you
want to save laps and if you want to save lives you're good for saying so
ramble shut off let's show that ramble off thank you for watching there may be
automated it's really simple to get started I think so if you have any other
questions for me leave in the comments and I'll do my best to get back to you
and until that time I'm gonna have some more coffee
thanks Fanny and Brian yes if specifically this video is because you
asked for so Brian Cordova in in Arizona start
your first Airbnb just go out there and get it and I'm looking forward to seeing
it when you post it online leave it in the comments thanks for
watching everything be automated I will see you on the other side