Building a STR Empire

0:03You mentioned that you're still considering buying you know you're still you still would buy today that sort of like the the elephant in the room question that I get almost daily with the people I work with is you know can you still buy in this market you know obviously we've had a lot of appreciation it's super competitive does it still make sense to buy from your perspective yeah absolutely so we the short-term shop so we have agents in 11 markets that we work in and the Smoky Mountains has over the P I mean it's historically been the most competitive market but what I've seen lately is investors dismissing themselves because of the last like 18 months worth of appreciation so like we'll post on our Facebook

0:51Group like the day before we post something on the MLS will say oh here's an off-market opportunity for you guys and it'll get a ton of comments and people will say oh man that's a great deal oh man that's going to go for like 200 over asking and they psych themselves out of even offering because they assume it's going to be so many offers and they we'll get like one offer and they totally could have won it so I think now is an interesting time because the market is changing a little bit it has softened quite a lot so it's easier to get deals now because the interest rate situation has kind of shaking out the weak hands of investors so only the really serious people are kind of in the game now so you're not getting those 20 30 40 offers on every single property and every single Market anymore so while you know not every thing that hits the market is going to make sense

1:40You now at least have a really good shot of if it happens to be one that does make sense you've got a good chance of getting it whereas before it was like I'm not even going to bother there's 20 other people in line so it's a really good it's a really good time to buy right now because a lot of people are like a little freaked out with the interest rates so as long as you run your numbers and they work which there's still Lots lot of areas where they do then you're in good shape got it okay and when you have a new client call you and they say you know I'm like there probably a lot of listeners on on this podcast that that fall in this category they're like you know I don't have any short-term rentals yet but obviously I've heard a lot about it it's you know I want to get into this space What are the first kind of steps that you recommend to a new client to to take to be ready well you want to make sure that you get your financing in order first I know I mean we

2:28All listen to a ton of real estate investing podcasts you know I've got a whole list of them in my phone and everybody does and there's a lot of times people will hear stories from other investors that worked for them in another asset class in another period of time in history so you know five years ago it was a different thing and I hear a lot of people say oh I'm gonna get the deal first and find the money later you can't really do that right now especially in short term there's always somebody who's ready to go like you really do have to have your money ready first and it's really not difficult you just go get I mean short term is like the easiest thing in the world to finance like financing an apartment building is hard you have to find a bank that agrees with what you're doing that thinks you're good enough to do it and build a relationship and then they give you this commercial financing with with short terms it's single family residential you can go get a conventional loan it's super easy

3:17So it's really easy to just go get that pre-approval to get ready to go that's the number one thing and then number two I would say you know familiar familiarize yourself with analysis and with running the numbers on short-term because even though it's eased up a little bit in terms of being able to get deals you still have to be able like you can't sit around and analyze for three or four days when you see a deal it's going to be gone so learn how to do it so you can do it quickly when something hits the market that you like and that you think might be a good one that you can do it really quick and and make your offer got it yeah and and a lot of people are curious what which lenders to to go to because some lenders obviously are are more and more getting more familiar with short-term rentals but some still you know aren't willing to to lend on short-term rentals

4:06Are there specific lenders that you direct people to well since you mentioned it I do own a mortgage company called the mortgage shop other things yeah and we do specialize in that so we've got a bunch of different products for that but when you're shopping lenders you you really want to just make sure that you're using a lender who does the type of loan of in the asset class that you're buying in the market that you are buying in often so there's a lot of big Nationwide online lenders that you know they're doing lots and lots of advertising and they're doing you know you're going to get routed to some random loan officer working from home in some random state that probably does a lot of primary homes every day but they might not be familiar with doing short-term rental beach houses in dtin Florida and they've never done that before then

4:54There might be some things that they get tripped up on so you want to find either a local bank or if it's not not local just a bank that or mortgage broker that has done a lot of deals in that market because they don't have to be local to have done it before there's plenty of you know work from home Mo virtual Banks now so just make sure whatever Bank you use that you're using one that that is familiar with that type of deal and it's if it's a bank or a mortgage broker that's like advertising super low interest rates that are really like way out of line with everything else you've seen that's probably something you want to check into a little bit further because they're making their money somewhere everybody's rates are going to be really really similar so if it's wildly low that's something that I might

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