It’s the new fad—airbnb. Hotels and motels are trending out and airbnbs are in. Don’t miss out on creating a handsome profit with a vacation home.
Sarah and Jim Nelson had finally retired. They had looked forward to traveling the world, to spoiling their grandchildren and to enjoying the rest of their lives. Unfortunately, they had both spent their professional careers as teachers. Their state pension met their living expenses; they would be able to pay their bills and live close to their pre-retirement standard of living. Their mortgage was reasonable, and they had thoughts of selling their home that had tripled in value. But, they loved their home and they didn’t want to give it up. Thoughts of starting a small business had been an option until they realized opening up a tutoring business was about the only thing, they were confident in running. After over 25 years of teaching that was the last thing, they wanted to do the rest of their lives. They wanted to have fun and feel free after years of a regimen of predictability.
EAGER TO FINANCE AN AIRBNB LOAN
As soon as school had let out on that final school day, for the Nelson’s, they took off to the wine country of Napa Valley, California. They thought they would try something new; and so they stayed at an airbnb. Their children had recently skipped the sameness of hotels and motels and begun staying at airbnbs when they traveled. So, mom and dad followed suit. It was fabulous. They spent a little more than they had previously on hotels and ended up in a 2 bedroom 2 bathroom condo in the heart of the wine country.
Sarah and Jim began discussing buying another home in Santa Barbara, where they resided. Their thoughts were on simply buying a small condo and renting it out as all these other people had done. How hard could it be? They knew they would make enough to make the mortgage—at least to start—and the sky would be the limit. As soon as they arrived home they went to the bank to discuss a second home.
Their dreams were immediately crushed. They were informed that their options for buying a house to start an airbnb were impossible. Because they already had a mortgage on their primary residence they had only two options: a second-home loan and a non-owner occupied loan. On a second-home loan they would be defaulting on the loan terms if they ever rented it out. And, a non-owner occupied loan would require a 33% down payment. Neither of these options would work for the Nelsons.
Finance an airbnb loan and reap the benefits
The Nelsons started hearing about hard money lenders. They had heard of them before, but knew nothing about the process. Hard money lenders are private money lenders. What this meant for the Nelsons was that they could take a loan out for very little down because the hard money lenders were aware of the demand for airbnbs in Santa Barbara and felt confident giving the retired couple the loan. They found a beautiful property and brought the details to the lender. Along with that the lender needed: a Note, a Deed of Trust (of their asset), the last 3 years of their tax returns, proof of income, and proof they had access to sufficient cash to preform proposed property renovations. Their lender worked with them and made it possible to turn their retirement dreams into a reality. Today the Nelsons own four airbnbs and are traveling the world, spoiling their grand children and enjoying their freedom!
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
© 2016 Level 4 Funding LLC. All Rights Reserved.Copyright | Privacy Policy | *Terms & Conditions
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.