The new age we live in has resulted in many changes—from the emergence of digital technology and jobs, to the ability to market oneself on the internet, it seems that there are a wide variety of opportunities for people to take advantage of. This includes options like the rise of Airbnb, who allow ordinary people every day to host and rent properties and take advantage of the new job market—and can even be done with loans to help finance it.
Hosting with Airbnb usually means renting out part of one’s own personal apartment or home. The price of travel and hotel costs often make Airbnb fees reasonable and realistic for travelers. Though, it’s not always necessary to use one’s own home. Some people are taking advantage of this new money-making opportunity by purchasing and renting out a new space, instead of their personal living quarters. And, like can be done with financing a new rental space, people are taking advantage of the types of Arizona Airbnb Loans available to make a profit.
As part of Airbnb Select, Airbnb’s latest program, to improve the quality of their service and lend a helping hand, loan considerations for people in highly rated spaces and areas are becoming available. In addition to Airbnb Select, a partnering with Quicken Loans is making it easier for Airbnb hosts to maintain quality standards, which are the driving force for these Arizona Airbnb Loans. If landing a win with the bank isn’t immediately in the cards, there is the possibility that your area and space quality are attractive for travelers if you want to rent out a small portion of your current space. Later, these rentals could be provided in a bank portfolio. Considering that LA is one of the top cities of Airbnb occupancy, it isn’t outrageous to think that you couldn’t be driving business from your home.
How to Find a Win-Win Solution with You and the Bank
The problem with getting a loan for Airbnb properties has to do with the risks the bank is taking. For example, the bank does not know how much will be made on this type investment. Even if it is a sure-fire trend around the world, the consistency on one individual is not solid. When considering the proposal for Arizona Airbnb Loans, you should consider location. Is your property in a tour-isty area or local to any popular locations and landmarks? How does your rental fare against the rest of the area? What kind of accommodations can you provide that can compete with hotels? If your place isn’t up to par, part of your proposal for your Airbnb loan should, like other proposals, take into account the margin for profit, and any fees related to things such as renovation costs, etc.
How to Make a Profit
Making a profit with Airbnb is feasible given the current trends, but evaluating your circumstances will determine just how marketable your space is. Whether working through Airbnb or the bank, you need to consider possible accommodations and renovations, interest rates and fees, and the repayment period. Being prepared with realistic expectations of the borrowing process as well as the hosting process can result in success in a market currently at its all-time high.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO
NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave | Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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