With more and more people opting for Airbnb over traditional accommodations, now is as good a time as any to get into the hosting business. Here's how to get an Airbnb loan to start using your home to turn a profit, even if you've got no upfront money.
Airbnb is exploding. If you haven't been living under a rock for the last decade, that probably comes as no surprise. But just how popular is the homestay juggernaut? Consider this: the average Airbnb host made an extra $924 per month and the company is projected to top $8.5 billion in profits by 2020. In fact, more than one-quarter of the world's travelers will book an Airbnb at least once this year.
With all that growth, anyone with some extra space and an entrepreneurial spirit can get into the game. Of course, there is a range of initial costs that can be prohibitive for some. There are supplies to buy, like soaps, shampoos, and snacks, plus you'll have to equip your place with towels, furniture, and electronics. And, on top of it all, Airbnb requires insurance for liability purposes.
All of these expenses can add up fast, requiring you to shell out thousands of dollars before you've even booked your first guest. Luckily, as a potential host, you've got financing options like Airbnb loans to help you get started.
Airbnb loans to help you launch your rental property
Because of the incredible popularity of the hosting site, Airbnb loans have emerged in recent years to give homeowners options for getting their feet in the door. For some, a short-term loan will help with fixing up a current home. For others, a loan can help with buying a new property to be used for income.
The pros and cons of Airbnb loans
Some loans for opening an Airbnb may be hard money funding, which cuts through the red tape that a typical loan is bound by and that means it can get into your hands faster. However, since they are typically considered a higher risk, a loan for Airbnb may often come with loftier rates, but many Airbnb hosts are able to turn a profit quickly and pay it back without getting behind. If you're considering a foray into the vacation hosting world, speaking with a lender may be your best bet.
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.
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