My partner and I have been investing in short term rentals, for 3 years and, now have 14 properties we operate full time in the Los Angeles market. Through trial and error and putting in the work we have developed systems and strategies to grow this business with no outside investment. We've hit a ceiling and would like to scale up because we see the demand is insatiable in the LA area. We are adding a unit or two monthly by reinvesting our profits but still have more deals being presented to us because of our branding and track record.
Any suggestions how to secure additional capital in order to grow our portfolio even more? We are looking for about 25k - 50k. We don't own any of the units but have arrangements with owners/property managers which allow us to operate by sharing part of the revenue. We are consistently generating 150% annual ROI and have done over 1000 transactions on the Airbnb platform. Any feedback would be appreciated.
I have not checked into it (YET!) but ClearBanc consistently advertises to AirBNB business developers.
@Alex C. When you invest in short term rentals, what factors do you consider? Do you look at any data to evaluate your investments? I think I might be able to help!
@Heath Wiggins Thank you for the suggestion. Have looked into them and were offered 10k however their terms for repayment were unsatisfactory.
@Jillian Klinvex Thanks for you response. We consider multiple factors such as location, relationship with owners/management, price, and neighbors. We use airdna.co along with our own experience. We were early adopters, as I starting use Airbnb back in 2010 to travel.
Clearbanc is a great option to get your revenue up front in 6 month cycles. There's also services like Payfully which gives you cash when you get booked at a nominal fee as well as Lendio which gets you to investors willing to give you the hard money needed to scale. I've gotten away from purchasing properties as it ties up too much cash and moved towards a similar model that you are doing with a couple of edits which generates a much higher cash flow.
@Account Closed Oh got it. Yes we've used Payfully a couple of times. Haven't heard of Lendio yet. I'll look into what they offer. Thanks so much.
@Alex C. What type of data do you find most valuable on airdna when making decisions? I have been trying to explore it myself a bit.
@Jillian Klinvex Once we identify a potential deal, we use airdna.co to review comps and look at reviews and type of people booking in that area among other things. It's very helpful but I use it more once I've got a deal to potentially work on.
@Alex C. , sounds like you have a great track record. Obviously, you are looking for a business loan, for a service business and not an asset based loan. Have you tried one of the peer to peer lending platforms?
Are you related to PAC Properties..is this your operation?
Hi Alex - thanks for sharing the post here! I was curious what insurance you use for the portfolio of short-term rentals that you have? I have been struggling to find an insurance solution that efficiently covers my short-term rental portfolio. We are trying to find 1 overall policy which we can add properties too as we continue to expand. We have about 10 properties now working towards 20 over the next several months. Can you share your experience on the insurance side of things?