All Forum Posts by: Ben Scarborough

Very excited for this! I was shocked I couldn't really find a good REI group when I moved to Gulf Shores this past December without having to drive to Pensacola or Mobile. Also, side note I heard your ep on Avery's Short Term Show podcast and really enjoyed it. Thanks for setting this up!

@Jeremy Kitchen thank you! So my wife and I just closed on a couple deals recently and used up a lot of our free cash to fund those deals through traditional financing… so I guess the next question is, if I am looking to get into a deal soon with low or no money down, my most realistic bet is finding a private money lender?

@Jay Hinrichs thank you!

Curious the difference between hard money vs private money lenders? Could someone please explain to me and let me know the pros and cons of each?

Thank You!
Ben Scarborough

Been putting in a decent amount of offers on STRs in PCB, Gulf Shores, Blue Ridge, and the Smokies but am continuously getting beat out by all cash offers on $400k+... Anyone else experiencing this? I unfortunately can not ball like these folks this early in my REI career so I am trying to think of ways to get creative. I feel like I have tried getting as creative as I can with agents in their respective markets short of waiving inspection contingencies and the full appraisal contingency. Curious what other people are finding successful in similar markets? Also curious if there are lenders who will front all cash to buy a property for their client and then finance the property to the client before closing, similar to wholesaling process I suppose without it being wholesaling? Any help or suggestions are greatly welcomed, thank you!

Recently moved to Gulf Shores, AL and looking for like minded investors to connect with in the area... I was trying to find a local REIA and had no luck, so hoping to start a monthly meet up of some sort. If you are interested in BRRRRing or Short Term Rentals and live here along the gulf coast of AL, please reach out to me!

In the short-term, I would 100% use the money to invest in a thriving STR market in the Southeast (Smokies, Gulf Coast, Blue Ridge). With current inflation rates, you are theoretically losing money the more liquid you are.

In the long-term, I highly recommend utilizing your VA loan to snag a 2-4 unit MFH in a metro market.

In this long-term scenario for you, I would recommend finding an LTR/STR in a Metro market for a few reasons:

1. If I was planning to utilize a VA loan, I would not want to live in a big tourist or vacation destination for my primary residence

2. You give yourself the option of having LTR demand if STR gets outlawed (this may get some backlash, but this is with the assumption that I don't want to live in a tourist destination for my primary residence, otherwise I am always buying an STR in a market that thrives on STRs

3. Reliable long-term appreciation

Good Metro Options to look into if moving from Jax and want to stay in Southeast: Atlanta, Nashville, New Orleans, Orlando

Important item to note: I know Atlanta just created a few restrictions for STR, but still worth looking into

Best,
Ben Scarborough

Like @Brandon Turner says in his "The Book on Rental Property Investing" about Landlords who approach their business like a hobby or a side project, "When this Landlord goes bankrupt, and he most likely will, you and I will be there to get a great deal on his property, turn it around, and start managing it like a business."

If people refuse to put in the time, research, and effort, it will catch up to them. Hopefully not to the point of them filing bankruptcy, but they will come around eventually or give up. 

Isn't everything more fun and rewarding when you put in the time, research, money, and effort anyways? Thanks for posting!

Regards,
Ben Scarborough

Not sure how many STRs you have thus far, but if you are just starting out, I highly recommend looking into the mountain markets due to year round tourism, it is the safest route into the short term rental world in my opinion and markets like the Smokies and Blue Ridge, GA are established and could end up a much lower risk!

Regards,
Ben Scarborough

Definitely recommend Short Term Rentals/Vacation Homes for new investors to get a good jump on returns for their investing careers. I typically recommend starting in the Mountains for STRs though like the Smokies or Blue Ridge, GA where you will have year round tourism. Finding something <$300k may make that complicated though when seeking an established market. However you will certainly check the boxes for cash flow and appreciation and will likely have a much better Cash on Cash Return in an STR over something like a Long Term Rental.

Regards,
Ben Scarborough