Grow your Airbnb business infinitely faster using OPM (other people's money)
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- Опубликовано: 27 окт 2024
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DEAD TO YOU.......DAMN #HARSH! I HIT THE BUTTON
I was like ohh damn oki oki even though I already liked when it started. 🥰
you are my star commenter, Jill. You could never be dead to me.
@@Robuilt ahhhh shucks!
Of course, that’s just Rob’s humor!! haha
ME TOO! I CAME TO THE COMMENT SECTION TO SAY HOW SCARED I WAS! LOL GREAT CONTENT! CAN'T WAIT TO START MINE IN FEB :)
We need a class on this! All the way from agreements to legal to a deep dive on the math. I'm here for it!
Jheez nearly 100K! I’ve been here since 17K ish. It’s so cool looking at how you’ve grown as a channel and gaining more experience in AIRBNB
I am working on the same thing, right now! In fact I’m borrowing the initial cash outflow @10% interest only on a 5 year balloon and having another investor get the mortgage from the bank. I thought it would be harder doing this as a 19 year old, but surprisingly the investor who keep the emotion out of it only care about the deal. This was super helpful on how I can structure future transactions after I close on this first one! Thanks Rob!!
I’m 19 years old and trying to do this, just wondering how it has gone so far?
@@noodletatakai6228 It’s gone well! It also helps that the property appreciated over $100k since buying 7 months ago
That is awesome to hear
I love your idea of overvaluing OPM. I find a lot of developers are the opposite, and are too quick to blow investors' money. I have always felt the way you do. Because of that, I just use my own cash on most of my deals, because I don't like the added pressure of OPM.
I just want to tell you how much I enjoy your channel. I've learned a lot, and two of my three offers were accepted this weekend, and my little empire is about to get off the ground. Thanks for your knowledge and your great attitude. It's very refreshing.
If you ever get up to the Nashville area, let me know. Would love to host you for dinner and have a beer.
You're my hero. You're channel has been very helpful in getting my first 2 STRs up and running
@@summerxiii13 I have a studio apartment with 2 beds 1 bath in a quiet neighborhood that does really well. And I have my family farm with 2 glamping tents and some camp sites.
Perfect timing! We meet with an investor this morning, one that we have been working for a couple weeks. This video is so, so timely. Thank you!
I’ve been watchin ur vids since the “building a tony home for 72000 in LA” or smthn and it’s nice seein you grow over time
me too ... i used to understand everything, now i feel like rob has learned so much i gotta watch these vids a few times to understand em! way to go rob, you have grown so much!
I’m digging the “late-night hair look”!!
You are very impressive, I have to say. I think most people on YT claiming to know something about finances and business are full of BS, or they talk a lot of hot air about 'manifesting' and don't give any concrete advice. I don't live in the US, or have the money to invest in you right now, but if I did, I would do it in a heartbeat! You are an inspiring entrepreneur, my dear. Go forth and conquer! (and thank you)
This perspective on investment partnership is LITERALLY what women have been trying to get the patriarchal society to understand for years! Perfectly said! Listen again at 26 minute mark.
Never ever disappointed to watch all your videos, I’m definitely a super fan
Legit AF! That spreadsheet is incredible.
this was the exact video I needed at the exact same time I needed it.
I'v been full time in this niche (kind of in a way...I can explain) for 20 years and I am learning from you...tnx mate
Great insights! This is def a video I will need to watch several times. When I saw the title I said out loud (yes, out loud) "This is what I have been waiting on!"
You and that mustache have me so charged to look into this for us. I appreciate all that you share and its incredibly inspiring. Thank you
This is insightful because I have investors wanting to give me money but I wasn’t sure how to structure the deal
Thank you for the spreadsheet and free information!
Congrats on the 1 year from 1k!! Eager to see you hit 100k.. and then 1 million (:
Hey Rob, thanks for all you do! Specific question based on working with investors. What keeps you in the game if the market drops, occupancy rates aren't what you expected, turns out to be a bad investment, etc...? In other words what protection or assurances do you offer an investor on a deal like this to insure they aren't left hanging?
The first rule of investing; never invest what you can’t afford to lose. Every investment comes with risk. There are no guarantees.
Bro, I’m new to your channel but your editing is top notch! Keep it up fam!
Informative video. Perhaps a follow up video on vetting your potential partner both on the investor and manager/operator side. ie what are you looking for in a business partner. Both tangible and not so tangible qualities.
It would be interesting to see the spreadsheet with an option of a "private money" loan vs equity partner, to get an idea of how the COC's differ. Great tool and thank you for sharing it!!!
Can you clarify this a bit? Maybe I’ll make one!
@@Robuilt for sure and thanks so much for the consideration!
Currently looking at an STR property and talking with an investor who does both private/hard money lending and equity investment. They would be bringing the 20% down payment for the property via one of those two avenues. Would be cool to be able to run both scenarios (or others you may have used) thru the spreadsheet tool and see how it impacts both the investor/silent partner and GP/borrower.
Knowing there are many ways to structure deals, I always like to evaluate the various routes to get there and it would open up avenues to have conversations with potential investors about the best way to partner in specific projects.
Thanks again!!
@@rbmarler8874 Hi, just curious what you ended up doing? If someone else is putting in the cash, then your specific cash on cash will be higher, especially if you're comparing it to a private money loan which will typically have much higher rates. Equity investor is taking a bigger risk as their hit is in the appreciation unless you set up other deal terms
I’m going to buy you a burrito(a big overstuffed extra cheese) !!This is super valuable info for me right now. Seems like your videos appear right when I need them. I’ve been subscribed for a few weeks. First saw you on Shelby Church’s channel. You both are very inspiring.
How do you decide when to sell the house you bought with a partner? What if one of you wants to sell at some point and the other doesn't? Who decides?
Hey Rob what sort of reports do you deliver to the investors each month? I assume they want some sort of reporting to keep track of everything.
THANK YOU! Been waiting for this!
Really great; I haven't seen these dollars and cents on a STR partnership broken down like this before.
Hey Rob, love all the videos and info!
How much would someone need to be a silent investor? I don’t know if I’m there yet, but I believe you know this area better than anyone else I’ve seen or heard.
he's got a section on this on his website, just check the link under the video :)
Thanks for all your helpful videos Rob! Are you using conventional loans for your properties? I am wondering how you are getting loans with 10% down.
Rob! I bid on that same house in JT! Went on the market, our agent went to see it ASAP, and told the sellers agent we were putting an offer, and 2 days later it was sold before we even saw it! Yikes.
Glad we are in the right track. Can you suggest a lender willing to loan out 90% and only 10% down? Only finding 20% down for these more expensive homes. Would really appreciate it!
I have found challenges as well looking for more than 80 percent loans in investment properties
Amazing content, I’m wondering thought from previous and current experiences what if they say why would I partner and you work for free when I just can hire someone for 15-20% management fee?
Great question! Ultimately, there's still a ton of work to do before you ever host your first stay.
1) You've got to identify a market
2) Identify the property
3) Move on the property quickly with an offer
4)Furnish the property
5) Set up your listings, automations and processes.
And THEN you can hand it off to a property management company. A lot of people don't want do steps 1-5 (or know how).
@@Robuilt I think #3 is huge in the current market we’re in and not knowing when that will change. As you mentioned, having your $$ lined up before you starting really honing in on properties, is key. The earlier you’re in with an offer, not only the better odds of winning, but the better deal you’re likely to get!
The camera effects on “do the numbers even work out on something like that” at 10:25, how did you do that?! Also, I happen to have liked the super casual laid back hair, I’ve never seen it other than its usual sky-hi-coif mode👍👍
Thanks for the info Rob!! Starting my journey
You are so freaking awesome!!!
I absolutely love your RUclips Channel!!
I only got 100k to invest and no experience into any of this stuff. Would love to partner up with someone that really knows what’s he’s doing and also learn along the way too !! That would really be my dream !!! 😃
Congratulations on your new Baby !!! Too cute !!!😍
Great video! If they don't see your value they'll be a bad partner - talk to someone else - or network to meet new people and then talk to someone else.
Brain is hurting, must watch again and again.
Impressive !! You inspire me !! Definitely working toward glamping . Definitely would do Sweat equity.
Sweat equity is amazing! My wife and I are putting so much sweat equity and hoping to see the pay off in the future
Always Valuable Content 💰
This was fantastically informative and empowering. WOW. Amazing. 🙏🙏🙏🙏🙏
Love your videos. They provide lots of value.
Your editing is incredible!
I need MORE!! videos on glamping, tiny house etc!! Taxes, extras! Consulting business etc!! ALSO!!! WOULD YOU EVER CONTRACT WITH TENTRR?? why, why not?
What is tentrr? Never heard of that
…always dropping knowledge bombs #thanks
I've noticed that Airbnb has insurance to cover guest damages to the property and items in the structure. Is this enough insurance? I am trying to get a tiny house on wheels ( a retired fishhouse that looks like a log cabin) to be accepted by my county. I was just told that even though I was going to have a composting toilet in the unit the ordinance states that " the short term rental unit must be connected to an approved SSTS or served by central sanitary sewer system.
" I don't know a tiny house on wheels that have septic connected to the mains. Rvs and camper trailers are not allowed to be rented in this area. do either of you know a way around this hurdle?
Sounds like classic Government overreach again. DaveCaresForYou would probably serve an affidavit to the city or county & get the ruling removed. He has info in how to go about those things.
do you build a pitch deck for each deal? how did you get your first investor? how/where did you meet?
Great info rob! Thanks a bunch!
Such a good informative video. Thanks for sharing!
this is a world class video, thanks !
When you buy, is it in the name of the JV? Or your name? How do taxes work?
I'm not sure how Rob handles it but typically banks won't lend to a JV or LLC unless it can show substantial assets to guarantee the loan. From what he said in the video it sounds like his investor buys the property in the investor's name and then adds Rob to the title. Taxes are pretty complex issue but I assume they are probably just taking the income as a pass thru and paying ordinary income tax on it. But again everyone situation can vary.
Two weeks out from going in for permit on my 1600sf shipping container home!
Can we see a copy of your JV agreement? That would be awesome. I have the opportunity to work with investors, but they are concerned with the legalities.
When working with an investor, are both parties included on the loan application? Thanks.
@robuilt thank you for all of your content. I watch and rewatch all of your videos. One question: why isnt the cleaning fees factored into the payout?
It’s a pass through. What I get paid for cleaning is a passed onto cleaners. Thus, it’s a break even expense.
@@Robuilt thank you for the response! I guess what I'm still confused about is why isn't it subtracted from the overall Net Profit.
Doing initial research in the East Cost (Catskill area to be exact) any helpful ideas would be awesome as well!
@@maxwellkatz7633 you can, and you should. I just don’t do it in my videos to keep them concise and simple.
If I make $10k in cleaning fees and pay $10k in cleaning fees, it’s effectively a wash. So I try not to make it look like I’m unnecessarily inflating my numbers for the sake of simplicity.
@@Robuilt got it. It just hit me that the guest is paying this fee. That is what I was missing. Thanks again for everything!
You’re welcome!
Great stuff Rob! Can someone explain the "Payment to you" amount at the time of selling the property in this example (at year 10)? I've downloaded the free spreadsheet (THANK YOU), but not connecting the dots with the deal at the time of sale. How is the equity from paid principal, and appreciation split? I'd assume 50/50% split, but numbers don't appear that way?
Please share what broker(s) you’re using to get an investment property loan with only 10% down
Great question, I am wondering that as well
Thumbs up for the Queen rendition
Thanks for all you have given us.
thank you for the information..how do you find your investors? we dont want family want to keep everything all business. We have land in the mountains a couple of hours from your Smokey Mountain site we have a lake, hiking and wineries all very close.that needs STR desperately We can put 4 or 5 tiny houses..
I’m late to this party, but I want to know where are you “going” to look for your properties?
the key to success is working for free!!
What are tour thoughts on lending - are your investors using standard residential mortgages? Do you have any issues when then air bnb ing these properties (breach of mortgage terms?) or do you obtain specialist lending? Asking from the UK 🇬🇧
Buena informacíon muchas gracias eres muy generoso con tu conocimiento. But how would you divide up profit if you owned the property and wanted to set up a glamping situation and just need an investor to fund the set up, todavía 50-50?
Our long term investments are 10-15% ROI. Currently selling for STR's!
Good post, glad to see hear another queens fan. Will you make customers sign a waiver for Bears near Smokey mountains?
Nah. Couldn't hurt though.
From an investor standpoint, I would only feel comfortable partnering up with someone that already has a proven track record. Would such experienced hosts typically still be looking for investor money? Thanks.
Hey Rob! How are you buying with 10% down on an investment property? Don't you need 20+?
I don't get it, so are you saying investors pay everything, and you take 50% equity, and then you are still charging 7% of management fee?
Plus, 50% of the profits. It's such a bad business deal for the investor.
@@daitrong Yeah giving up 50% equity after taking out the entire loan yourself is INSANELY risky for the investor. There are a lot of assumptions being made here including the post-covid travel boom continuing uninterrupted for the next 10 years, and property that has appreciated 300% in the last year continuing to appreciate. Any flaw in those assumptions and the investor could wind up HUGELY underwater because they're essentially starting with an extra $425k debt on their loan by immediately giving away half their equity.
The question isn't "why wouldn't the investor just do this themselves", it's "why would the investor do this instead of just hiring a typical property manager that takes 20% while keeping 100% equity in their home"? Because the immediate $425k loss the investor gets on day 1 is completely left out of the numbers and any correction to real estate values could really cripple them.
I look forward to the day when Robuilt opens an REIT.
In the works, my friend ;)
Great video again
What does 'CASH ON CASH' return?
Do you show your potential investors that spreadsheet?
Great video thank you!
Just found you -as I’ve been researching land development. Do you have any experience and interest (or videos) in campgrounds?
Will Robuilt crowdsource for a property? That would be awesome
That spreadsheet I download it was totally different from the one that was in the video
You're amazing!!!!!
Where do you factor in renovations on this sheet? Did I miss that somewhere?
I'm looking for 10 to 20 acres outside of Dallas in 30 to 45 days... 👀👀 I want to start glamping, what do you say partner?
Great videos!!!!
Where do the Yearly Expenses & Shiz come from? What are they?
I don't know if this question has been asked, sorry if you have. If you split 50/50 who pays for the mortgage? Or does it get paid before the 50/50 split?
pretty sure it’s 50/50 profit split assuming airbnb pays the mortgage.
Por lo que escucho has logrado excelentes sociedades con terceras personas llegando a arreglos que ambas partes estén ganando y se sientan satisfechos. Saludos, Roger Erosa.
Is your name on the mortgage too or just the investor? How do you legally have equity in the home?
Thank you for your great info. So, I tried to get your spreadsheet, but it won't work. I downloaded it but it says the file is corrupted... is there a different way to get this?
107k WOW CONGRATS
Question regarding the 50% of equity - at a refinance or sale, do you allow the investor to take back their downpayment/start up cost capital out of the deal first before splitting 50/50? For instance, if the investor put down 100k on a 400k purchase and the sale is now 500k, do you split the proceeds of the 500k or the proceeds minus their original 100k?
Did you ever find your answer for this question?
Where is that spreadsheet Rob? Thanks!
Great video! 30% Not too bad!
100k is so close. Let's gooooooo
What kind of lawyer/other professional do you need to find to set up an arrangement like this?
congrats!
Would this still apply if I didn't do a short-term rental, let's say fix n flip with the same scenario, silent partner?
I usually like your videos but it sounds more like I make 30% to be the loan holder and you make 70% to run the a Airbnb. Hopefully the 50% of the equity that you get is after the investors cash they put down for closing fees, furniture, down payments, lawyer cost etc. Is given back first.
I would be more interested if the 50/50 looked more like I put 100k down for cost, you hold the loan in your name and im add to the deed so I'm not responsible for property "it effect your debt to income" I get 50% after the bill is paid if we lose money I pay 50%. At the end of 10 years i get my 100k back first then we split the equity.
Does the 50/50 split include the equity gained in the house or just the profit split from the Airbnb money? When you said your part of the sale would be $53,000, it appears you aren't getting 50% of appreciation in the house.
Correct, it includes the equity and appreciation in my particular partnerships. But it might be totally different for you and your partners!
I currently have my backyard carriage house rented as an AirBnb (which has been very successful) and I am looking into doing a glamping site. One of my concerns is how to keep the property secure in between guests since they do not have the typical door with a deadbolt, etc. How do you manage that?
I think it may be worth having a contractor install a lock that can be open and close and manages with an app over wifi
@@buildfixflip Thank you. How would that work with something like a bell tent? Do they have the capability of being locked?
@@hblechwar I don’t think a lock would do much since the shell could be easily cut and damaged. We decided to begin with a stronger structure for now (prefab she’d) and in the future we will get into tents, but it will have to be a “safe” property and we will install cameras in the common areas to bring up the safety rating of the lot and keep an eye on things and deter criminal activity
@@buildfixflip yes that was my thought as well. Good luck in your new venture!
Haha great content spoken straight from the horse's mouth haha good stuff dude
Sounds like you said you've done this "40 years" at 6:50, how long have you been doing this?
It feels like 40 haha. But 4 years.