One of the most popular app today is AirBnB, it is actually an old concept that has gotten a new lease with the advent of technology. In the past, many people would travel and go around different tourist spots and stay at a bed and breakfast place, since not every small town has a five star hotel. Bed and breakfast places have been adored by most travelers, as being homey, comfortable and being local so you get attuned with the happenings in the town you are visiting. Most people who have spare rooms or apartments or guest houses often offered their spaces for overnight stays or even 2 or 3 days at most. Then, the guests move on with a positive feedback for the homeowners and then when the guests go back to their place, they recommend it to their friends. Such arrangements are a gold mine, you can charge for their stay and put a free breakfast in and then stay for a night or a couple of them and then leave. You make decent money and you do not need to invest as much since you already own the place. As more and more people stay at your place you realize that you can actually make money out of it and probably start a five bedroom B and B so you would not have to turn away other guests. Fast forward, and in these postmodern times, we now have a web application that lets you advertise your space for a fee and where guests can also book their stay using just their phones and gadgets.
More and more people are now realizing the ease and practicality of staying in an AirBnB rental than in a hotel or a resort which may costs you a thousand dollars more. Most people travel with a set budget, we do not usually travel carte blanch, and in the past a lot of those budget was allocated for hotel rooms. With the option of renting an AirBnB place, then you can free up that budget and spend it in more tours and activities. The popularity of AirBnB has also made it a viable business venture. If you do have an extra property or space, you can get on AirBnB and start getting bookings. If you do not have one, you can actually secure an AirBnB financing to help you acquire or purchase that real property you had been eyeing on to start your real property business.
Real Property and AirBnB Financing
In order to become part of the growing community of entrepreneurs with AirBnB at its core, you need a real property like a family home, a studio apartment, a condominium or even a flat or loft that you can advertise and rent out through AirBnB. If you are thinking of making this a business venture, then you need to have your own real property, and one way of getting that is to purchase one. You can only do so if you have a saved a lot and is able to buy it outright in cash, more often than not, you do not have that kind of money. Hence, the best way to get that start you want for your business is to secure an AirBnB financing loan from reputable lending firms.
Most lending firms offer various loans, but with the observation that more and more people are investing in real property and making those available in the AirBnB platform have also led to a new loan product called AirBnB financing. This type of loan allows you to borrow enough capital to purchase or acquire that viable real property which you can turn into an AirBnB rental. The possibility of the loan getting approved is dependent on your plans and goals for the future, and also the market value of the property. If it is in the more exclusive and pricey part of town, then the market value is much greater while it is also an advantage to figure out what locations will be seeing development and tourist attractions in the future. In this way you can purchase a real property at a lesser value and see it increase in the next few years, which alone makes the investment already profitable.
It is true that great things start from small ideas, and if you can see your AirBnB dream take off successfully, then you need to decide on where you will get your AirBnB financing. The most obvious choice would be a lending firm that has have extensive experience in the business and one that will not only just give you the capital, but also help you develop and provide you with ways to grow it.
Is an AirBnB Financing Necessary?
Most of us have probably some nest egg tucked away for the future, and most people do not even entertain the thought of becoming business women and men as it is too much complicated and the risks are very high, what if the business will fail and you have already spent your retirement fund or your kid’s college fund. But the opportunity for getting into the real property business is now ripe as ever and it will surely be a missed opportunity if you delay it any longer. However we look at it, we do not have the capital to start this business and the opportunity is too important to pass up. The answer to this is of course loans for AirBnB financing. Lending firms are not any different from banks, although they do have higher interest rates than most banks, but when it comes to real property loans, banks appear to have a negative perspective on it. This may have been due to the financial crisis a few years back regarding the influx of housing loans and so many developers where making so many houses and yet not being able to sell them. Such that banks are not very keen on giving out home related loans.
Lending firms have a much more positive stance on this, and real property is always an excellent investment choice as it does not depreciate. Therefore, if ever you fail with your AirBnB plans, you can still sell the property or convert it to something else and it still would be worth something as real property is always increasing in value. The answer is, yes an AirBnB financing is necessary, it is the only viable option that you have to raise the capital you need to acquire that property.
How To Get an AirBnB Financing Loan?
Although we are inclined to think that getting an AirBnB financing loan is complicated, the truth is, it is not. One can simply look for a lending firm that you feel comfortable working with, one that has excellent track record, and one that have helped so many business owners and that are not just in it for the money. Lending firms like Kram Capital have been providing business and personal loans to thousands of clients in major cities and towns around the country. They do provide not only financial loans but also expertise in handling real property requirements and legal contracts.
To apply for an AirBnB financing loan, you just need to apply for a loan using their application forms online which you can find in their website. You just need to fill out all the needed information, and if they see that you qualify for the loan then they will contact you and ask you to submit a letter of intent. In the letter you will have to explain your business plans and what you hope to achieve in the future, if you have already written a business proposal then you can also use this to enrich your letter. You will need to demonstrate in your letter that you are able to manage the property, and that you already have plans to make it grow. Once the firm is convinced by your letter of intent, the firm will then ask you to come for the underwriting and the funding. They will evaluate or assess the market value of the property you want to purchase and will also provide you with the amount they are willing to grant you as a loan. On average, lending firms will have this amount capped at eighty percent. Your participation in the purchase is needed to demonstrate good faith. Then if all goes well, you will then have to submit the necessary documents and legal contracts and the firm will then release the loan amount. From the beginning of the application process to the release of the loan amount, the lending firm will probably take a month or less to complete it. The loan amount can range from one hundred thousand to two million dollars.
Most AirBnB financing loans are long-term in nature as it will not be possible to pay off a huge loan in under two years, thus on average lending firms will give you five to seven years to completely repay the loaned amount. This would give you ample time to pay the loan and also realize your return of investment. Since this is just the beginning, it is possible that in the future will have more than ten properties on the AirBnB platform.