Creative Financing Strategies to Acquire Airbnb Properties – with Isaac Moore & Andrew LeBaron (Ep393)

Creative Financing Strategies to Acquire Airbnb Properties – with Isaac Moore & Andrew LeBaron (Ep393)

Creative Financing Strategies To Acquire Airbnb Properties

If you have dreams of buying properties to list on Airbnb but you don’t qualify for a traditional mortgage, all is not lost! You can still acquire real estate and build a portfolio of short-term rentals by way of creative financing.

Isaac Moore and Andrew LeBaron are the Cofounders of Buy More Time, a short-term rental property management company out of Arizona. Isaac and Andrew are also experienced real estate investors who specialize in using creative financing techniques to scale a STR portfolio and helping others do the same.

On this episode of Get Paid for Your Pad, Isaac and Andrew join me to share their top creative financing strategies for acquiring Airbnb properties. They explain how to leverage seller financing, hard money or personal lenders to build your short-term rental portfolio and offer advice on using non-qualified mortgage products to purchase properties. Listen in for Isaac and Andrew’s insight on selling a lender on your hosting track record and get their five-step plan for buying your first STR properties with creative financing.

Topics Covered

How Isaac & Andrew got into short-term rentals

  • Seller financing deal in Mesa, Arizona
  • List on Airbnb to earn 3x market rent

Isaac & Andrew’s journey to starting Buy More Time

  • Sold lease on first unit for $30K
  • Use profits to arbitrage additional listings
  • Start property management company

Isaac & Andrew’s first seller financing deal

  • Take over mortgage, no money down
  • Lease with option to purchase
  • Control property without ownership

Why a property owner would do seller financing

  • Lessee makes upgrades to property for STR
  • Lessee takes over mortgage payments

The note and deed of trust method of seller financing

  • Offer small non-refundable down payment
  • Pay 1% or 2% interest on balance of home
  • Pay mortgage (through 3rd-party company)

How Isaac & Andrew partner with a personal lender 

  • Friend in network willing to loan $30K
  •  6 arbitrage units up and running in 30 days
  • 10% interest-only payments for 12 months 

The benefit of non-qualified mortgage products

  • Prove rental income with Airbnb statement
  • Put toward purchase of another property

The difference between hard and soft money

  • Hard = at least 10% interest, short-term
  • Soft = 7% to 9% interest, long-term

What makes hard money a good tool for STR

  • Lenders willing to finance based on ARV
  • Refinance and use equity to buy more units
  • No pre-pay penalties

Isaac & Andrew’s 5-step plan for getting started

  1. Find landlord willing to do lease option
  2. Furnish, beautify and list on Airbnb
  3. Document everything to show income
  4. Ask landlord to deed/seller carry property
  5. Refinance property with Isaac

Connect with Isaac & Andrew

Buy More Time

Email information@buymoretime.com

Resources

Live Let Thrive Podcast

Weststar Mortgage

Get Paid for Your Pad on YouTube

The Obstacle Is the Way: The Timeless Art of Turning Trials into Triumph by Ryan Holiday

Email jasper@getpaidforyourpad.com 

Sponsor

Hostfully [Discount Code PAD]

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