I WANT TO START A SHORT TERM RENTAL BUSINESS

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I WANT TO START A SHORT TERM RENTAL BUSINESS

Santiago Ortega
Member since 2021 · 7 posts · 0 votes

Hello! My name is Santi and I’m from Spain. I just graduated from school and I’m hoping to start my real estate investment journey in the following months. Specifically in rental arbitrage since have no ability to get any loan or purchase any home on my own. I’m planing to start my business around West Palm Beach area where I just got a job. I’ve been doing a lot of research the past 3 months in real estate investing and short term rentals but I still have questions I can’t seem to find an answer to 😂😂. Everything on the legal requirements on doing rental arbitrage and short term rentals in Florida and Palm beach county, how to fully automate my business and the negotiation process with the landlord. I’m hoping I can get some tips here! I will appreciate a lot any tips you guys can give me since I have no experience! 

Thank you!!!! 

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
5y

@Andrew Lastivka

Neither wholesaling nor STR arbitrage are real estate INVESTING, both are operating businesses within the real estate business arena. As long as the person getting into the business realizes the commitment, hard work, risks, capital needed, organizational and operational skills necessary, and time component, and realizes that they are starting a business and not investing in real property, then they have the same chance for success as any other business startup. The problems arise when they are led to believe by parties with a vested interest, that they can make easy mostly passive income with a small or no investment that they are bound for failure and major disappoint.

Private Mortgage Financing Partners, LLC
WebsiteView Page
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    2Reply
  • Santiago Ortega
    OP
    Member since 2021 · 7 posts · 0 votes
    5y
    Originally posted by @John Underwood:

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    Why do you think arbitrage is such a bad option? As a newly graduated foreigner I have no credit record, no career or anything that will make anyone eager to offer me a loan 

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y
    Originally posted by @Santiago Ortega:
    Originally posted by @John Underwood:

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    Why do you think arbitrage is such a bad option? As a newly graduated foreigner I have no credit record, no career or anything that will make anyone eager to offer me a loan 

    Arbitrage is a job like working at Walmart. It is not RE investing. 

    0Reply
  • Santiago Ortega
    OP
    Member since 2021 · 7 posts · 0 votes
    5y
    Originally posted by @John Underwood:
    Originally posted by @Santiago Ortega:
    Originally posted by @John Underwood:

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    Why do you think arbitrage is such a bad option? As a newly graduated foreigner I have no credit record, no career or anything that will make anyone eager to offer me a loan 

    Arbitrage is a job like working at Walmart. It is not RE investing. 

    I want to use rental arbitrage to fund my future RE investments! I don’t have the means to finance or cash buy any properties, that’s why I want to start with arbitrage. But still don’t think it’s a job like working at walmart since you can have a rental arbitrage business fully automated and make passive income! 

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y
    Originally posted by @Santiago Ortega:
    Originally posted by @John Underwood:
    Originally posted by @Santiago Ortega:
    Originally posted by @John Underwood:

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    Why do you think arbitrage is such a bad option? As a newly graduated foreigner I have no credit record, no career or anything that will make anyone eager to offer me a loan 

    Arbitrage is a job like working at Walmart. It is not RE investing. 

    I want to use rental arbitrage to fund my future RE investments! I don’t have the means to finance or cash buy any properties, that’s why I want to start with arbitrage. But still don’t think it’s a job like working at walmart since you can have a rental arbitrage business fully automated and make passive income! 

     Sounds like a get rich scheme. They usually work out well.

    0Reply
  • Andrew Lastivka
    Member since 2018 · 9 posts · 10 votes
    5y
    Originally posted by @John Underwood:
    Originally posted by @Santiago Ortega:
    Originally posted by @John Underwood:

    Instead of arbitrage look for equity partners or owner financing. Get an owner to carry back a 2nd mortgage for the down payment. Wholesale a few house to build up a down payment. Anything but Arbitrage. This just a job, not a beginning to RE investing. 

    Why do you think arbitrage is such a bad option? As a newly graduated foreigner I have no credit record, no career or anything that will make anyone eager to offer me a loan 

    Arbitrage is a job like working at Walmart. It is not RE investing.  


    And you think wholesaling is RE Investing? What is the difference from wholesaling to build capital vs rental arbitrage at building capital? The people I see wholesaling are scummy. At least those who arbitrage will take care of a property. 

    0Reply
  • Nancy Bachety
    Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
    5y

    @Santiago Ortega Congratulations on graduating and your new job. Save your money from this job, work on establishing credit and continue to position yourself to buy a property, probably out of your area. 
    While it’s likely you can make some money with arbitrage, some folks say they do, it’s a job. What John is saying, it’s not building any equity and is not real estate investing. You’re working it to hopefully make some money like any business but not investing. Do more reading here and elsewhere with open eyes,  or wearing blinders.

    Good luck. 

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    5y

    @Andrew Lastivka

    Neither wholesaling nor STR arbitrage are real estate INVESTING, both are operating businesses within the real estate business arena. As long as the person getting into the business realizes the commitment, hard work, risks, capital needed, organizational and operational skills necessary, and time component, and realizes that they are starting a business and not investing in real property, then they have the same chance for success as any other business startup. The problems arise when they are led to believe by parties with a vested interest, that they can make easy mostly passive income with a small or no investment that they are bound for failure and major disappoint.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    5Reply
  • Scott K.
    Member since 2020 · 223 posts · 233 votes
    5y

    Wholesaling is pretty close to arbitrage... it's not investing, but there's nothing wrong with it. It's just a job like any other.

    If you aren't fortunate enough to have the capital to invest, it's a fine alternative until you do.

    If you want to learn about arbitrage, this forum isn't great. Look up 'airbnb automated' on facebook.

    1Reply
  • Deb S.
    Investor · Punta Gorda, FL · Member since 2010 · 154 posts · 128 votes
    5y

    You need to build some credit even if you want to do arbitrage.  The landlord who will rent to you is still going to want to do a background and credit check.  Apply for some credit cards: just do a google on 'credit cards for new graduates' and you will see plenty of sites where you can apply.  Then use them!  Charge your gas, food, makeup whatever and make payments so that you build a credit history.

    You have to build a foundation before you can build a house.  I realize you want to do this immediately but you are asking a complete stranger (potential landlord) to take a risk with you but he has no information about you to gauge how much risk there is.

    3Reply
  • Nadia DaggettBusiness Member
    Real Estate Broker · Tampa, FL · Member since 2019 · 102 posts · 64 votes
    5y

    @Santiago Ortega would love to talk more with you. I ran a very successful corporate rental business in Alaska for over 15 years. I move back home to Florida four years ago and moved the corporate rental/short term rental business here locally in the Tampa Bay. I did have to do a lot of research on the regulations, and worked with many different platforms to find the one that I liked the most that includes accounting, automations, vendor support and links with short term rental platforms. Let’s chat sometime!:)

    [email protected]813-527-1030
    2Reply
  • Keenan Fitzpatrick
    Realtor · Anchorage, AK · Member since 2017 · 230 posts · 179 votes
    5y

    @Santiago Ortega I can confirm that the property that @Nadia Daggett ran was top notch. Not only was it ran successfully, profitably, and professionally, it was done in an area that took a little extra effort. Some places, like Girdwood, are so easy that you can trip and fall into success. This location took a little more intention. After seeing what she was able to do with her Alaska property, it would be an obvious choice for me to consult with her on acquiring an investment in her area. 10/10 would recommend 

    1Reply
  • Austin Drew
    Rental Property Investor · West Palm Beach, FL · Member since 2019 · 155 posts · 57 votes
    5y

    @Santiago Ortega Send me a message, I have a few STR's in WPB. Would love to hear what your plan is

    1Reply
  • Connor Cushman
    Realtor · Cumming, GA · Member since 2018 · 158 posts · 127 votes
    5y

    Best thing you can do is find good mentors. Find a local investor. Buy them lunch and ask questions. Podcasts and books are free ways to spend hours with mentors and often you can get into the details as you listen to stories. Follow people on instagram and through posts and stories you'll learn more than what you might find on a bp forum

    0Reply
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