119 No Travel? Why’s AirBNB Booming?
The Carolina Capital Management team is here to talk about the current status of AirBnb.
Is the industry of AirBnb dead right now due to the pandemic? Is it even getting booked?
Hear the answers to these questions by watching this video.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the “Small Builder” borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and “Ground-up Construction Loans” for investors only in NC, SC, GA, VA, and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
Bill Fairman (00:00):
So I always just keep us Merck. Oh, hi! Wendy. Would you like to start us off today?
Wendy Sweet (00:06):
Yes. So I know you’re really excited about getting ready to listen to Ron LeGrand. We’ll stop your excitement right now because he hasn’t shown.
Bill Fairman (00:19):
That’s right. Ron’s apparently having some technical difficulties and the tease is not giving you the answer during the tea.
Wendy Sweet (00:35):
That’s right. That’s exactly right.
Jonathan Davis (00:36):
But it’s okay. We can talk just about anything,
Bill Fairman (00:40):
Right. Well, thank you for joining the Active Income, Passive Wealth second show of the day we are Carolina Capital Management. Our website is CarolinaHardMoney.com. We are lenders in the Southeast. If you’re thinking about borrowing money, go to our website again, CarolinaHardMoney.com. Click on the when is it? Apply now.
Jonathan Davis (01:07):
Bill Fairman (01:07):
And then if you’re a passive investor looking for,
Jonathan Davis (01:14):
I’m gonna get you cards.
Wendy Sweet (01:14):
What are you?
Bill Fairman (01:14):
No. If you’re looking for passive returns by being the bank click on the accredited investor tab, don’t forget to share, like, subscribe, hit the bell, all that good stuff. We like this to be interactive as possible. So we have a comment section to the right or underneath, depending on the platform that you’re viewing from, by the way, we are going to be a part of the cashflow expo coming up February 18th through the 20th, there’ll be more than 30 speakers. There’s a link that you can go to register. It’s probably the least expensive education you can get, less than a hundred dollars.
Wendy Sweet (02:01):
And you get the recording.
Bill Fairman (02:02):
And the recording come with it. Obviously you can’t spend two days.
Wendy Sweet (02:07):
That’s right. That’s right. It’ll be great. It’ll be incredible
Bill Fairman (02:10):
So we’re going to discuss Airbnb right now.
Wendy Sweet (02:18):
Bill Fairman (02:18):
Wendy Sweet (02:18):
We can. We can if you wanna do it. What do you want to talk about?
Bill Fairman (02:20):
I don’t know. You’re the Airbnb person
Jonathan Davis (02:23):
Is Airbnb dead right now? Is it like, are you able to find product to Airbnb and is it even staying booked?
Wendy Sweet (02:32):
Well, here’s, what’s really funny is literally as we’re sitting here, I’ve just got a booking for one of my Airbnbs. So, you know, I’m really, really excited about short-term rentals and, how the growth is happening. And so here’s, what’s really good.
Scott Paton (02:51):
I’m sorry to interrupt you, but we’ve got breaking news and I would like to bring on a very, very special guest. He is here.
Wendy Sweet (02:59):
Scott Paton (02:59):
I’m gonna say good bye and welcome!
Wendy Sweet (02:59):
Thank you, Yay!
Jonathan Davis (02:59):
There you go!
Wendy Sweet (02:59):
The legend is here.
Bill Fairman (02:59):
Wendy Sweet (03:00):
How are you doing Ron?
Ron LeGrand (03:13):
Can’t hear you.
Wendy Sweet (03:13):
Oh, no. He’s working on it. Let’s see
Bill Fairman (03:21):
Can you hear us now? Scott, would you mind putting run back into the green room and talk to him about getting his,
Wendy Sweet (03:31):
Help him get his sound back.
Bill Fairman (03:33):
Situated. Thank you.
Wendy Sweet (03:35):
Yeah, that’s awesome. So I’m really glad he’s here. So really, what the tease was going to be as that legends start at zero, right? Everybody starts. Yeah. Everybody starts at zero and Ron is in our Collective Genius group and we have the pleasure of actually getting to be in the same room with him and learn from the master. I can tell you so many people that I know not only got started in the business with, you know, from what they’ve learned from Ron, but continue to be successful with the education that he gets out. It’s just absolutely, absolutely amazing.
Jonathan Davis (04:15):
Even now and then, someone’s born that burns a little bit brighter.
Wendy Sweet (04:21):
That’s right. That’s right. And it’s him. Ron, can you hear us now?
Wendy Sweet (04:29):
I don’t think he can.
Wendy Sweet (04:29):
I think the answer to that question is probably not. So he’s starting to work on his, he’s working on his equipment there, but, you know, one of the things we talk about when we’re trying to get started in the business is, you know, where do you start? What’s the first step that you take? How much education do you really need to get started? I think the biggest thing that people don’t do is they don’t take that first step out of fear. They become education junkies,
Jonathan Davis (05:00):
Whoever, when we talk to, I mean, education is important [Inaudible].
Wendy Sweet (05:02):
Absolutely it is.
Jonathan Davis (05:02):
But you know, everyone we talked to says education is great, but you just really don’t have an opportunity to apply that or really learn the deep stuff until you do a deal. We talked with a guy a couple of weeks ago. I mean, that was like, you know, he spent like 50 grand in education and didn’t do a deal. Finally did a deal and it was terrible. He lost so much money but from that deal, he learned so much and now he’s on a trajectory, you know, of wealth building. So, you know, education is great. It’s good foundation, but you have to do something.
Bill Fairman (05:42):
Yeah. Now part of the reason he lost money is because the person he was doing business with ripped him off. So one of the main lessons is do business with people, you know, like, and trust.
Wendy Sweet (05:54):
That’s exactly right.
Bill Fairman (05:55):
But he did learn about that.
Wendy Sweet (05:58):
Ron, can you hear us now?
Bill Fairman (06:02):
Wendy Sweet (06:03):
We can hear you. Can you hear us?
Bill Fairman (06:06):
You’re looking good though.
Ron LeGrand (06:12):
I can. I’m in.
Bill Fairman (06:12):
Sorry but the technical issues. The last thing I’m gonna say Ron is that your camera is looking at your lap. So if you could back up so we can see your face.
Wendy Sweet (06:48):
We’re going to try to fix the feedback that’s going on with you as well.
Ron LeGrand (06:54):
We got a sound problem folks.
Bill Fairman (06:54):
You know what? We really appreciate that you’re on and I hate to waste this time, but, you know, maybe we need to book you for another time and then we’ll go in there.
Wendy Sweet (07:18):
Cause there’s not enough time to learn everything that we need to learn from him.
Bill Fairman (07:21):
We’ll do a video and get on a phone call to make sure that we have the settings right on the next one. How’s that?
Ron LeGrand (07:26):
Wendy Sweet (07:27):
Thank you Ron!
Bill Fairman (07:27):
Alright. Thank you Ron. See you in a few.
Wendy Sweet (07:46):
Folks, this is the joy of doing stuff live. Right?
Jonathan Davis (07:49):
I love it.
Wendy Sweet (07:51):
Who can tap dance?
Bill Fairman (07:53):
Okay. So I have a question about Airbnbs and we’re talking short term rentals. It doesn’t have to be through the Airbnb site.
Wendy Sweet (08:04):
Jonathan Davis (08:05):
it could be VRBO.
Wendy Sweet (08:05):
So we call it short term rental. Sometimes I get stuck on the Airbnb, but really, it’s a short term.
Bill Fairman (08:08):
So do they have to be in,
Wendy Sweet (08:10):
Well, here’s what I think is cool. And here’s where I was going before Ron, just so rudely interrupted us by showing up. So one of the things that I’ve really discovered yesterday and I’ll know why it took me so long to understand this is I’ve been talking to other landlord, friends of mine who have long-term properties and both of the two, then I just talked to yesterday, have three people each that are not paying the rent. They have, you know, several properties and they each have at least three people that have not paying the rent. One, since for the past nine months has not been paying rent. So short term vacation rentals? Not an issue. It gets paid. So most of the properties that we have, we’re renting them on 30 day stays because when we upload them onto these sites, we give a hefty discount if you’re going to stay for 30 days, we want to make it attractive for hefty. For me is 18 to 21% is really what we’re giving off on that. And I’m amazed at how full we stay from these 30 day, month to month stays that people are coming in. I’ve got, you know, out of 11 that we have, there are one, two, three of them are, month to month stays for more than three months at a time. One of them is for a year. That’s kinda cool.
Bill Fairman (09:33):
And I know it says short-term vacation rentals, but that’s a myth, it doesn’t have to be a vacation place.
Wendy Sweet (09:39):
Yeah. Take the vacation out.
Bill Fairman (09:39):
Talk about some of the best places to have a short-term rental.
Wendy Sweet (09:47):
Well I liked the small town. In fact, that’s what I’m going to be talking about on the webinar that that will be going on. And I think it’s February six, it’s finger, fifth or sixth. I’ll get that for us before we leave. When I let somebody else talk and I’d pull up the website on it. But I’m going to be talking about investing in small towns. That’s what, it’s a gap. You know, you go to Charlotte, which is real close. There’s a ton of short-term rentals there. In rock Hill, I don’t have as much competition here. You know, you pull up Lancaster, you know, who’s going to go to Lancaster? You’d be surprised at how many people go to Lancaster. Family reunions, traveling workers, whether it’s nurses or construction workers and, you know, funerals, weddings, all kinds of things happen in those smaller towns and people think, Oh, well, if I have a short-term rental, it’s gotta be in a vacant patient type area.
Jonathan Davis (10:45):
Or somewhere like that has a draw appeal to it that is, you know, Charlotte has, you know, downtown Charlotte whitewater center, all these thing. It looks like, Ken ask a question. Do you have them all fully furnished?
Wendy Sweet (11:00):
Yes. And that’s a great question. So can we do fully furnished them and fully furnished to me is going to cost me about five to seven grand, depending on what I put in there. So when I’m buying beds, I buy that bed in a box on Amazon with the metal frames. They are absolutely comfortable. In fact, I even bought one for my own bed because they were so comfortable in the Airbnb and they’re cheap. They’re, you know, 3, 400 bucks. They’re, really, really inexpensive. They sell them at Sam’s and Walmart too, but they’re a little more expensive when you buy them there. So if you buy them online, they deliver them. It’s just so easy. The other thing is, is the sofas that we buy in every unit, I want to at least get two people in every bedroom, but I also want to be able to sleep people on couch. So every couch is a sofabed type couch, and, you know, I might spend five or 600 bucks on that. It’s pretty cheap. And then, you know, we peruse yard sales and I always go to discount places that sell lamps and just little funky things that, you know, you normally wouldn’t put in your own house, but they look cool in an Airbnb.
Jonathan Davis (12:16):
It looks cool when they stay there for a few days is Vermont.
Wendy Sweet (12:17):
So yeah, we furnish them, you know, pots, pans, coffee makers, coffee. All of them
Bill Fairman (12:26):
So, you know, knives, forks, all that stuff. And you don’t, you don’t have to buy that stuff new. A good place to go to get that kind of stuff,
Wendy Sweet (12:37):
Is by those house.
Bill Fairman (12:37):
Is to go to a state auctions because a lot of these companies are auctioning off, somebody who’s passed away. All their stuff. The antique dealers are not,
Jonathan Davis (12:51):
They’re auctioning off stuff. Not the people who passed away.
Bill Fairman (12:51):
That’s right. The antique dealers are there to get the antique stuff, but if you go in there and you’re just looking for plates and cups and Rives and forks, you’re going to get that for next to nothing because that’s kind of how they value it because it’s not antiques that they’re going to be resold.
Wendy Sweet (13:08):
Okay. I have the website for this webinar that we’re going to be doing, and it is www.irarocketfuel.com. So it’s I R a rocket fuel .com. That is the website that you can actually go to, to sign up for this webinar and I’m pretty sure it’s free. We can have up to 200 people on it and it looks like it’s getting close to being booked. So, give that a shot and I see Scott’s put it over in our chat. I don’t know if he, did he make a banner for it yet?
Jonathan Davis (13:50):
Bill Fairman (13:50):
He’s not that fast.
Wendy Sweet (13:50):
It’ll be up here shortly.
Bill Fairman (13:54):
That’s the cashflow expo.
Jonathan Davis (13:54):
That’s the cashflow expo.
Wendy Sweet (13:54):
Yeah. But anyway, go ahead. Did you want to talk about set mouth, but yeah. Did you want to bloviate? And you got six minutes to bloviate, Bill
Jonathan Davis (14:04):
Cause I want to go masticate.
Wendy Sweet (14:06):
I don’t know that I’d put that on mute.
Bill Fairman (14:08):
That’s means lunch.
Jonathan Davis (14:08):
Wendy Sweet (14:13):
Listen, folks, if you have enjoyed this, showing this, viewing this video, this, live thing, then you’re our tribe. This is just a great example of how anything can happen when you’re doing a live show. And you know, you’re either going to go through to the end or are you going to quit. [Inaudible].
Jonathan Davis (14:44):
We’re gonna force you to quit. Are you gonna do it?
Bill Fairman (14:45):
Let me give you a little piece of advice. If you want to be successful in real estate, you have to learn to be flexible and you have to not be worried about changes in the market and
Wendy Sweet (15:01):
And just in a room.
Bill Fairman (15:01):
That’s right. So just take it as it comes and,
Wendy Sweet (15:07):
And laugh along with us.
Bill Fairman (15:07):
And take advantage of the opportunities that are handed to you at the time. So just a little bit back on the Airbnb stuff.
Wendy Sweet (15:20):
He won’t let it die.
Bill Fairman (15:22):
I liked that space and the things that you’re looking for when you’re purchasing a property for this use, number one, can you long-term rent it at a profit? Because if it doesn’t work out for short term,
Wendy Sweet (15:38):
Well, that’s number one.
Bill Fairman (15:38):
You want to make sure that you have an exit strategy.
Wendy Sweet (15:41):
And every one of ours, the first thing we always do, because the short-term rental is the gravy. You know, if it works out for short-term rental yay! And usually we’re doubling what we would normally get for long-term rent and that’s after we’ve taken out the cost for what we’re doing.
Jonathan Davis (16:00):
Now, so when you do short-term rent it. So let’s say like an investor buys this with a hard money loan or a loan from a private lender, whatever it is, and they want to short-term rent it and they do that, what’s their, how do they exit that loan into a long-term loan product? Can they?
Wendy Sweet (16:23):
Well, there are companies out there that are doing short term. I couldn’t tell you who they are. Cause I don’t know.
Bill Fairman (16:28):
Yeah. They were doing short-term rentals prior to COVID.
Wendy Sweet (16:31):
And now it’s changed.
Bill Fairman (16:33):
I don’t know if they’re still doing them or not. I’ve seen people advertise for them
Jonathan Davis (16:37):
Since COVID though. Have your bookings increased, decreased or stayed the same?
Wendy Sweet (16:41):
COVID actually, as soon as COVID hit the first couple of weeks, we got cancellations on everything. And I mean, literally,
Bill Fairman (16:52):
Well, they were locked down on the house.
Wendy Sweet (16:52):
Yeah. Right after those first two weeks, we were booked. Not booked for their future. Booked instantly. And we stayed full. It was actually April, May, June were our biggest months ever. It was amazing. Just amazing constant back-to-back, you know, in and out and it’s still just rocking and rolling right now. So we had people that were quarantined that had to come. Sorry.
Bill Fairman (17:20):
Sorry. So yeah, that’s a reason to, at least you know you got two weeks. So who is a month to month kind of short-term renter? And that would be a contract nurses.
Wendy Sweet (17:37):
The traveling nurses.
Bill Fairman (17:38):
If your home is close to, let’s say a power company,
Wendy Sweet (17:42):
Bill Fairman (17:42):
The hospital, it used to be universities and now come back, depending on who’s open and who’s closed, but there’s a lot of people that are there for a month or two at a time.
Wendy Sweet (17:57):
Yeah. that happens a lot.
Bill Fairman (17:57):
They don’t want to stay in a hotel. People are always dying and people are always getting married.
Wendy Sweet (18:05):
But yeah, but not in our Airbnb.
Bill Fairman (18:10):
What I’m saying is, people are, it doesn’t matter how big the town is. People are still gonna come to these places. Funerals and weddings are very popular.
Wendy Sweet (18:20):
And what are their options for hotels? If they’re in a smaller town, what is their hotel option?
Jonathan Davis (18:25):
I don’t know. I heard they were doing zoom funerals now.
Wendy Sweet (18:27):
Yeah, that’s true. I’ve actually been to one. So yeah.
Bill Fairman (18:31):
Now if they had their druthers, they’d rather be there. Well, a lot of people don’t like going to the funerals.
Wendy Sweet (18:35):
I don’t know. We spent a lot of money on travel. But anyway, yeah, it’s an amazing option. And I hope you will go to, IraRocketFuel.com and learn about how short-term rentals work and the reason why the word IRA is in there is cause we are gonna touch heavily on how you can use your IRA to help finance it. So you don’t want to miss that.
Bill Fairman (19:05):
Excellent. So we’re at the top of the hour.
Wendy Sweet (19:08):
Bill Fairman (19:08):
I know it was exciting. Fast moving with a lot of unexpected twists and turns. Thank you so much for joining us on our Active Income, Passive,
Wendy Sweet (19:19):
Bill Fairman (19:19):
Wealth Show. So we are Carolina Capital Management. We are lenders in the Southeast. If you were interested in borrowing money in the Southeast, go to CarolinaHardMoney.com and click on the borrower tab. I’m sorry. The apply now tab. If you’re an investor looking for passive returns, go to the accredited investor tab, don’t forget to like, share and subscribe. Don’t forget. Oh, hit the bell. Don’t forget that the we’re going to be on the cashflow expo and we’re going to run that link one more time. I really suggest you do this because again, at least expensive education, you can get anything else?
Wendy Sweet (20:02):
And that link is also over in the chat too. So if you open up your chat, you can just copy and paste it.
Bill Fairman (20:05):
Wendy’s always doing her Wednesday with Wendy.
Wendy Sweet (20:11):
Wednesday with Wendy. That’s right.
Bill Fairman (20:11):
So click on that as well.
Wendy Sweet (20:13):
That’s in the chat as well.
Bill Fairman (20:14):
All right. You guys have a great day. Jonathan’s going to go master masticate.
Speaker 3 (20:36):