All Forum Posts by: Isaac Chun

I would like to find out if seller financing can be done on a property that still has a mortgage? If so, is there any differences in the process?

@Marty True

Hi Marty, thanks for sharing your insight. I have also read a bunch of articles online that have spotlighted the bad side of Airbnb homes here in the valley. I’ve take this into account and will have a property manager/cohost living on site to enforce house rules, maintain the property and provide customer service to our guests. I feel this will be a win us, win for the guests and a win for the neighborhood 👍🏽

I have contingency plans in place should the climate for legally doing less then 30 day Airbnb rentals change in my city. Definitely not placing all my eggs in one basket without a back up. 

@Chuck Kramer

Thank you for your input. I may just consider approaching this as a sole proprietor under a DBA company name without the additional entity. Though I would be sure to carry a fair amount of liability renters insurance to cover most of potential negative situations that could hurt my personal finances.

@John D.

Hi there sir, yes it’s true that many investors/lenders will be put off with this particular arrangement. Though I just need one who understands the numbers and believes in this deal nearly as much as I do. As mentioned in my post, worse case scenario I have to sell and the investor still gets there investment and the agreed upon interest earlier then planned. Have a great day sir!

Hello BP members!

I am seeking the financial assistance to fund the rehab/ furnish portion of a property deal I have pending in North Las Vegas,NV. 

So as to be upfront and transparent from the get go, this will be my first REI deal/transaction. Though I am no stranger to tackling any task/mission that is put in front of me. This has been ingrained into me throughout my nearly 20 years served in the United States Army. I am proud to have served my country honorably and look ahead to enjoy the right to pursue happiness that I so willingly defended in and out of war time.

This is how I have the deal structured:

1)24 month lease/option agreement

2)Rehab and furnish the property(My team and I will be handling all of the labor, which has reduced the rehabbing of this property by more then 50%) I wanted to be sure to show any lenders/investors that I am putting my sweat equity into this deal, to show that I am personally invested to make this deal a success!

3)Market on Airbnb and other vacation rental platforms

4)Manage property myself, along with other professionals in their perspective fields to efficiently run a smooth and profitable operation

5)Use traditional financing between 12-18 months to exercise my option to purchase the property and repay any lenders/investors. Will be allocating some of the positive cash flow to build up a emergency cash reserves for any unexpected situations and to use for a down payment should I need one(plan to use VA or FHA loan program).

6)It is my chosen strategy to buy and hold this property to use as a rental property, but I have a very good amount of equity built into this deal that would allow for a sale of the property if an exit is needed(which will add further assurance that my lender/investors will recoup their funds in this deal in a worse case scenario. 

I believe this lays out my plans and intentions. If you are seeking a moderate risk and calculated investment with a time horizon of 12-18 months, then please private message me for further details of becoming a lender/investor in this deal. 

God bless and I hope everyone has a wonderful day! 🌞 

@Mike Benitez

Most of the flooring needs to be redone, interior painting and other cosmetic things like fixtures. A little landscaping will help it as well. That’s things off the top of my head. The property belongs to a long time friend that is relocating out of state. 

@Patrick Shea

Thank you for the valuable personal experience data that you shared! When I was researching comp properties from Airbnb in my market, it appeared that they were nearly booked up during the summer months and not less then 60% 60-90 days out. So, I could be overestimating my average vacancy by 10%-15%. Only time will tell and my ability to market to my target/niche customers. 

@Jonathan Streufert

Not quite sure what you mean by hand waving. I have taken those expenses in consideration. I just didn’t include them into my calculations, as they are not shown in the searches and will always cover my expense of having the property cleaned between each reservation. Thanks for the well wishes!

@Dennis M.

Well thanks for stopping by, but you haven’t shared anything to substantiate your very brief statement lol

Where did you come up with 47 bedrooms?? Also, if you were an actual interested investor who wanted to work with me I'd be sharing every small nuance of my deal with you. Also, how can you strereo type me and my ability to construct a deal simply because it's my first REI deal. Sure you're entitled to your opinion, but you seem to come across as a rude person.

@Jonathan Streufert

I will be managing the property myself, until I add more properties into my portfolio. I have already sourced out some initial house cleaning staff. I didn’t add a cleaning expense, because it is typical practice to pass those expenses on to the guest. So, I’m figuring it to be a wash between what the guest is charged and what I pay my cleaning staff. I do expect to invest enough hours to consider this a part time job, but with full time cash flow. I do plan to set systems in place to almost fully automate my Airbnb rentals to allow me to keep scaling my business portfolio. So am on the look out for good investors to grow along with me.