All Forum Posts by: Robert Gilstrap

@Rex Romano Not sure why anybody would be trying to talk you out of arbitrage but I would actually encourage you to get started that way while you build capital. Arbitrage is an excellent way to leverage property to create cashflow.

Airbnb coverage is in fact insurance despite what others say. Depending on locale it's underwritten by Zurich or a subsidiary. In the US it's typically underwritten by either Allstate or North Light Specialty.

I will agree with others that you need your own insurance as well depending on your circumstance. If doing arbitrage then you need renters insurance to cover your contents since you are the tenant. That also comes with some liability coverage but it's a toss up as to whether that would cover any guests under your Airbnb arrangement. You still have Airbnbs liability coverage but remember thats just liability and I'm not sure I would rely on that exclusively. The companies they mention in the thread specialize in the short term rental market so they can provide good options to keep you covered.

I use local credit unions for the reasons @Nathan Gesner mentions. Local underwriting, low fees, etc. I've just done multiple loans at 5%. There are plenty of institutional lenders out there who will do rental loans too (although I would not mention STR because they want a LOT more paperwork). Finance America, Lima One Capital, etc. Fees are higher though.

Samsung Smartthings. There are a dozen different ways to issue lock codes; much of the automation based stuff you can use Rboy Apps to control.

Most private lenders are going to want a 1st position unless you have an incredible equity position in the property. Still have personla loans, credit cards, etc. as an option. How much do you project to spend per unit?

HELOC, line of credit, 2nd can all be used to pull out cash to fund furnishing the units. You can also rent furnishings and there is even a couple companies that will rent you the stuff and split revenue with you so you only pay as you make. It's more expensive that way but can be done.

This is really my same worry as I expand my portfolio; outfitting a larger home can be expensive so it limits my speed of growth. The repayment should be quick though. Friends in the business have told me they are repaid within 8-9 months depending on the size of unit.  Right now I'm just bootstrapping it and using my own funds which kind of sucks so i may resort to my lines of credit against the properties I have now.

$20/yard for carpet is pretty steep!   We buy $7-8 for carpet, $1.25/yard for 6lb pad and then labor of $3.00/yard. If it's really nice carpet then maybe up to $11.00/yard for the carpet, pad and labor are the same. Some will try and charge you $.75 - 1.00/yard for removal of old carpet and pad. Get solution dyed nylon or Olefin based product and it can be cleaned with bleach if necessary.

LOVE TCL Roku TV's because they don't get any simpler than that. My personal choice is a FireTV or stick due to the flexibility of adding virtually anything. We just download all the common apps on the TV (NEtflix, Hulu, Prime Video, Pandora, etc.) and guests bring their own logins, we don't provide any cable service. Only had one guest ever complain so I activated YouTubeTV for him. 

If I were to provide something I would have to go the IPTV route. LOTS of options there for very little $$.

You just start a new account under a different email address.

only a 22 year old would consider 9 days a month of work full time employment...

@Daine Johnson seriously congratulations on getting started in your investing career! Learn everything you can because there are so many opportunities out there to make good money on real estate. Pay attention to cycles and really learn the business behind it. 

I just refinanced 6 properties in th elast 2 months and I can tell you I had a 100 places I could have gone to for funding. If you mean new purchases , OK I get that and you see 20-25% but remember that of LTV. I can get a loan all day long with zero out of pocket depending on the deal I find.

Not trying to dissuade you, just saying its much easier than you think unless you are only going after complete newbies who will agree to anything and pay anything.