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Bank Of America Expects To Lose $50B

by blogger1
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on Wednesday, 05 July 2023
BestTransactionFunding

While many parts of the country are seeing very strong and growing real estate markets and home prices, new data seems to reflect a sizable amount of stress still bubbling under the surface.


What does it mean for real estate investors?


Bank Of America Expects To Lose More Than $50B

While the Fed has proclaimed that banks have been passing stress tests with flying colors, Bank of America seems to be among those that are much more pessimistic.


The Feds have predicted the bank will bring in a lot more revenue, with fewer losses than the bank is forecasting. Which across anticipated losses on loans and credit, and goodwill, they expect to exceed $50B, in just a nine month period.


Interestingly, while the Fed is expected to continue hiking interest rates, they are also calling for banks to have higher capital reserve requirements.


We can expect these trends will make banks even more cautious about making loans, and their capability in doing so. Especially on the consumer and homebuyer front.


Airbnb Revenues Crashing

While Airbnb hotly contests the numbers and say they are growing, one short term rental data analytics firm has proclaimed that hosts are suffering a 50% drop in revenues.


Altogether the above suggests that many short and long term rental property landlords may be about to run into more issues. Both in being able to get financing and making ends meet.


Real Estate Wholesaling

While there will continue to be buyers of income properties, that pool may shrink. There are also likely to be a lot more distressed asset sales coming down the pipe.


Real estate investors that are on the front lines of this may find it high time they switch to a real estate wholesaling model.


This enables you to get in, out, and paid, without worrying about long term financing, or renter dynamics. Nor being pinched between inflation and rent controls.


Best Transaction Funding is also continuing to actively lend on wholesale deals.


If you need to keep your income up, profit margins up, and utilize smart leverage, it could be time to embrace this model.

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Flipping To Airbnb Landlords? Here’s The Features They Need The Most…

by blogger1
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on Wednesday, 18 August 2021
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Flipping and wholesaling properties to short term rental operators like Airbnb landlords can be a highly lucrative strategy for investors. Here’s the 411 on what type of inventory you should be sourcing for them…


The Short Term Rental Market Is Growing

Recent events have only accelerated the need and demand for short term rentals. This includes those on platforms like Airbnb, Homeaway, and VRBO, but not exclusively. In fact, Airbnb alone has said that it is facing a shortage of 1M or more units.


Regular landlords are switching to short term rental arrangements to get away from eviction bans and being tied to bad tenants.


Ongoing travel limitations have created a boom of domestic travel. As remote working is also making it more common that people will look for new places to stay for a few weeks or a month at a time.


Of course, these types of rentals also rent for far more than the average annual rental as well.


Serving Up The Product

There is a huge need for properties that can be used in this way. You can fill this gap as a wholesaler and fuel your business with deal flow and higher profit margins if you have the right product.


That means understanding what’s most important to their end users. So, what features should you look for and can find to create a better product for them?


Realtor Magazine recently published a lot of data on the top features these renters want, as well as the top issues that turn them off.


Price

Price was the most important factor for guests. With most looking for units in the $50 to $99 per night range. Remember that some of these platforms can add 30% or more on top of the nightly rate in fees, so be sure to factor that in. So, on a $100 a night rate, the owner may only get $70, before all of their costs.


Location

Real estate is all about location. In this case, tourism based cities were actually the least desirable.


Style

Users’ favorite style of place to stay is actually traditional, not modern or contemporary.


Internet Connection

With more people working on the go, reliable and fast internet is a top need.


Parking

Poor parking is one of the top pet peeves of guests. They don’t want to have to pay extra for it. They don’t want to have to struggle to find it. They may need two or three parking spaces.

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