160 Short Term Vacation Rentals – Real Estate Investor Show – Hard Money for Real Estate Investors!

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160 Short Term Vacation Rentals – Real Estate Investor Show – Hard Money for Real Estate Investors!

Now is the time to be considering investing in short-term rentals because most of the country’s destination areas don’t have enough Airbnb to choose from.

This episode of Real Estate Investor Show – Hard Money for Real Estate Investors features a video of Wendy Sweet and Walter Walford discussing their current short-term rentals which are available in different areas.

Timestamps:

0:01 – Introduction

1:40 – https://www.CarolinaHardMoney.com

1:58 – Wednesday with Wendy: https://calendly.com/wendysweet/wednesdays-with-wendy

4:07 – Short Term Rental Pow Wow 2021

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). North Carolina hard money lenders and South Carolina hard money lenders.

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. North Carolina hard money lenders and South Carolina hard money lenders.

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Bill Fairman

00:00:00

Hi, folks. It’s Bill and Jonathan. Wendy is on her way to vacation land. With that said, now is the time to be considering short-term term rentals because actually most of the country in destination areas, it’s hard to find any places.

Jonathan Davis

00:00:23

I was in Clearwater and to rent an Airbnb for one night was 5, $600.

Bill Fairman

00:00:32

Yeah, it’s unbelievable. There’s a shortage of short-term rentals in a lot of areas and not even destination areas. So, in a little bit, and when we get back, we’re going to have a video of Wendy and Walter Wofford talking about their current event. It’s only about a week ago, about short-term rentals in different areas. 

Bill Fairman

00:02:19

So, we wanted to talk about short-term vacation rentals at this time because we’re all thinking about vacations. We’re all either going on it or already have, or are in the middle of it. Right? So we thought this would be a good time to talk about that.

Bill Fairman

00:03:24

We decided that we would insert a video here. It’s an interview that Wendy and Walter Wofford did about their short-term rentals. I know Walter has several in Jackson, Mississippi, which again, you wouldn’t think of as a destination, but a couple of his short-term rentals are right on this big, major lake. It’s a beautiful place. Just got to watch out for those swimming logs. We call them alligators, but they look like swimming logs. So if you’re taking a dip in there, you need to watch out for those logs, they get closer and closer to you. So we’re going to go ahead and try and play this video now. Enjoy.

Wendy Sweet

00:04:07

Hey! Wendy Sweet here, with Carolina Capital Management. My side gig is short-term vacation rentals. How would you like to learn from the top short-term rental people in the nation? You’re going to get that opportunity. We’re actually doing a small venue, short-term vacation training, and it’s going to be incredible. There are 5 other people there that will be recording some pretty incredible information about short-term rentals. Every single topic you can possibly imagine. I’m going to talk about short-term vacation rentals that are located within 3 miles of my office in dinky, little downtown Rock Hill, why they’re coming, what we’re doing in a house, how we figure out which house we’re going to buy, the due diligence that we do on that. And then I’m also going to be talking about how to finance those properties. There are a multitude of ways that it can be done and I’m going to share as many of those ways with you as I possibly can. In addition to that, there’s so many other incredible people that are going to be able to share information with you, too, about everything you can imagine from, from 2-day stays to 90-day stays. It’s just amazing what you’re going to see. So if you’re interested in getting this video for yourself cause we’re recording these, there’s only 20 people that are gonna be at this venue. So we have to record it to be able to share it with so many of you. You’re going to get that opportunity to buy that video.

Walter Wofford

00:05:44

Walter Wofford here with an all-star team – Pam Whitworth, Alicia Merriman, Wendy Sweet, Al Williamson, and me, Wally Pop. We are going to do something to kick the COVID bug to the curb with an event that we’re having in Jackson. But if you’re watching this video, we intentionally decided to have it for 20 people and we’re going to videotape it. So it’s a 2-day event that we’re going to have. And so each of the presenters will have a 45-minute presentation followed by a 30-minute Q & A. And then we’re going to have over 10 sessions. And so let me just show you, it’s going to cost $197 and we’ll deliver the videos within a week of the event, plus the handouts and slides that we have, and you’ll get all that in an electronic version so you can watch it all.

Walter Wofford

00:06:46

So, let’s kick it off. Pam, tell us about yourself and your topic.

Pam Whitworth

00:06:53

I’m Pam Whitworth from Waco, Texas. And I want to talk about the 5 Stages of Hosting, and what stage that you might be in and how to identify it and how you make a decision on whether you want to accelerate that, or maybe you’re perfectly happy where you’re at today. I’m in about Stage 4 on my hosting and I’m working on the fifth stage right now, which has to do a whole lot with systems and organization and setting up a business to be scalable. So I think as most of us started out, we’ve become more of a side hustle. We’re all in real estate. And we hear about Airbnb. That was me in 2012, I heard about Airbnb and I had a little cottage in my backyard.

Pam Whitworth

00:07:39

And so I thought, well, that sounds cool. And I put a bathroom in it and just started advertising it. In 2012, there were no statistics. There were no comps. There was nothing to go by. It was just a Hail Mary, just try this out. And so I started out as a side hustle host. I was plenty busy with my regular job and I just decided to do Airbnb in the backyard and give it a try. I thought I’d do about a thousand or $1,500 a month. And I think the first year I booked $30,000 and the next year, $35,000, the next year, $40,000, then I realized I really had something special going on here. And then of course, Airbnb started to accelerate from there. And there’s a “traditional host”, just the host that Airbnb had in mind. I think when they started all of this, that’s a person that identifies with their Airbnb and then may be in a situation like this with the cottage. I think I used to be in that position. I was one that did everything. I was the one that met the guests. 

Pam Whitworth

00:09:41

So the traditional host is more of a person that their identity is wrapped up in being a host. And so my personal goal with this as I’ve begun to evolve with this business and realize the potential of the income is I want to accelerate to Stage 5 to where I have a very scalable business and a business to sell. And that’s where I’m going with it. With COVID, I had about 20 properties. I owned 6, we were managing the rest. I lost 10 of them. So I was down to 10 properties and 6 of them I owned. So I really didn’t have much after COVID. We refunded a whole bunch of money. The bank account went empty. And so I had to just kind of dog pedal for that year. Last month, we had the biggest month we’ve ever had with fewer properties.

Pam Whitworth

00:10:33

We had some of our units double in bookings. And so the income potential, we’re charging 30% to manage. So I’m making more off of most of the properties that I manage and ones I actually own. So my goal is to work up to the highest level of hosting. And so I’m going to talk about the different types of hosts, where you are, whether you’re just a side hustle or the traditional, or maybe you’re a hectic host. I stayed in the hectic host position for several years to where you just kind of did the Hail Mary and you hope it all worked out and the place was clean and nobody complained or found a bug or a mouse or something like that. And so I’ve been at the hectic host position for a long time. And fortunately, I’ve risen above that, but we talk about that.

Pam Whitworth

00:11:18

And I’m going to talk a little bit about if you do want to scale your business, and that’s something that you’re willing to do and do the systems, there comes a point to where you can have a very sellable business. And there’s a lot of the bigger companies when you get 50 units, that’s when they’ll come into a town and start buying out these smaller companies. So that’s my goal. We’re almost back up to the 20-mark again and rising, but I’m going to go over in the next session about some tools and things, but we’re using some tools that are just amazing that I wish I’d used years and years ago. So there is a lot of potential there. If you want to accelerate beyond the side hustle or the traditional host, and step up beyond the hectic host and make it, this can be actually very simple to where you can step out of your business and just manage it with VAs.

Pam Whitworth

00:12:12

We’re starting to use more VAs and it’s working beautifully. So I’m going to go into depth about the different types of hosting and how you can do it and where you can hire some people and take it to the next level.

Pam Whitworth

00:12:39

All right, Alicia, hit it.

Alicia Merriman

00:12:42

All right, guys. My name is Alicia Merriman and I’m from Huntsville, Alabama, and just like Pam and Al, Wendy, I am an extended stay and short-term rental owner. And so, I have taken it this year to a new level where I am starting to optimize all the profit centers and the properties that already have, or the ones that are coming down the pipeline.

Alicia Merriman

00:13:08

And part of the way that I’m doing that, are a few out of the box ideas that maybe you’ve never touched on. And one of which would be adding a billboard in front of your property, especially if you’ve got a high traffic area, like I intentionally sourced out a property that was on the highway, that was one of the reasons that the property itself was a great opportunity. Things like adding vending machines, being able to rent out detached structures or even making that detached structure, deed it, and give it its own parcel number. I’ve also been taking flips and subdividing that property and on the sale of the flip, I’m getting that land, free and clear. And I have every intention of creating either short-term sites to build. So things like glamping, if have you ever heard of that, Wally?

Walter Wofford

00:14:04

Oh yeah.

Alicia Merriman

00:14:04

Yeah? Oh, the returns are good, man.

Alicia Merriman

00:14:06

I’m planning on building some new extended stay and short-term rentals and I’ve been able to actually get a lot of my land for free. And I’ve got a few ways of how I’m actually doing that. And another way where I’m getting the land, one parcel for free, let’s say within a subdivide and selling the flip, keeping part of the land free and clear, and then wrapping up an owner finance and letting that owner finance the equity that’s coming for that pay for the build. Right? So I’m doing a lot of different things right now with a lot of moving parts where I’m really optimizing every angle that I can in my properties.

Walter Wofford

00:14:49

That’s great. That’s super. All right. So session three will be all of us. I’m going to moderate it with technology and automation. So I’ll give you some categories before we talk.

Walter Wofford

00:15:01

Alright, Wendy Sweet!

Wendy Sweet

00:15:23

Wendy Sweet. I am with Carolina Capital Management. By day, I’m a lender, a hard money lender. And by night I am a short-term rental freakazoid. And I can credit Pam Whitworth for getting me in this business in the first place. If you haven’t been in any of Pam’s houses, you need to go in there. It’s eye candy everywhere. It’s just the coolest place ever. She just exploded my mind on all the things that you can do. Now she’s in a great destination area in Waco. I’m stuck in little dinky, Rock Hill, South Carolina, and guess what?

Wendy Sweet

00:16:01

I am kicking it. We have 13 properties now in Rock Hill, South Carolina, all but 2 of them are within 3 miles of my office. And that’s what I love. The people say, “Well, who goes there?” We’re going to have a whole session on talking about why people come to dinky little Rock Hill, and it’s not just Rock Hill. It’s any small-town. People travel for all kinds of reasons. And you just have list after list after list as to why they’re coming. I want to go after those people. One of the reasons why I really liked the small-town type business or the non-destination type business, because when COVID hit, I had, oh, 50% of the people that were booked, canceled. And within 2 weeks I was booked again, not only was I booked again, but the COVID year, the whole COVID year was the best year I ever had. Because I had a whole new clientele coming in and staying at my properties.

Wendy Sweet

00:17:06

It was just truly a blessing for me on that. So I really want to talk about all of that. And I also want to kind of get down and dirty as to how do I find a property? What numbers am I using when I decide that this is a deal, or it’s not a deal because we want to be cautious about the investments that we’re making. We can’t just count on appreciation. We’ve got to make sure it can stand alone as a rental property on its own. So I really want to talk about that part of the business as well because I love my exit strategy or my plan, which is Plan A, set it up as a short term. But gosh, if Plan A backfires, I want to be able to have something to fall back on. So got to have B, C, and D in place as well.

Walter Wofford

00:17:52

Thank you, Wendy. Al Williamson.

Al Williamson

00:18:08

Hey, I’m Al Williamson. I am in Sacramento, California, and running a corporate housing company called Easy Corporate Housing and I’m responsible for the marketing. So it’s all on me and my team. So I want to share with folks coming about how you can keep your extended stay rental filled without worrying about vacancies. That’s the thing I focus on. So I focus on 30-days and longer, so that’s the extended stay market. So one thing we’re going to talk about is how you can market so you can have complete domination over your area. I know that’s not going to be good for the folks and everyone’s in Jackson. I’m not sure that’s going to be good.

Walter Wofford

00:18:48

Hey, we’re cooperating.

Al Williamson

00:18:52

So we’re going to do that and we can make the big corporations beg for mercy because they just can’t keep up with this. So we’re going to do that in that 40-minutes slot that I have, and we’re going to talk about 3 overlooked ways to make Google rank you number one. So it’s going to help you break away from Airbnb and really market independently without any reliance on other online travel agencies. And the third thing in that first session is going to be how to turn your family and friends into your biggest, fiercest promoters, let them get in on the action. So that’s gonna be an exciting thing. So I’m looking forward to that. That’s my first one.

Walter Wofford

00:19:38

All right. So, and then I got session six. So this is an IRA on short-term rental arbitrage.

Walter Wofford

00:19:44

So this would be an interesting study of, we like the income, right? From the short-term rentals? How about let’s just take it tax-free and I’m gonna show you how to set it up and do that. And we’ve got a 2-unit right down from my house that we paid market rent for, and that’s $1250 a month, a 2-bedroom, 1-bath, and we’re routinely bringing in 2,400 a month and that’s IRA-owned arbitrage. So, I’ll show you how to put $750 a month in your retirement account without debt. How many of those you want?

Walter Wofford

00:20:20

More, right? All right, so Alicia, next topic.

Alicia Merriman

00:20:28

So my next topic is going to be about unique stays and the outdoor collections under Airbnb. Have you ever scrolled down whenever you’re searching as a guest and there’s actually where you can normally search for just regular houses and then down below it, there is a button that says “unique stays.” Well, if you’ve actually never clicked on that link, you’ll find a lot of opportunities that are very, very unique. And if you look at the numbers associated with these types of dwellings that are generally tiny dwellings. As investors, the smaller the dwelling, especially if you built it, it’s going to be cheaper to develop. And these are unique in that most of them are things like Mongolian huts, they’re geo domes, their teepees, their yurts, they are tree houses. There are some of them that are actually Hobbit holes.

Alicia Merriman

00:21:30

Of course, like what Michael Hicks is doing up in Tennessee, Chattanooga it’s shipping container houses. So these out of the box ideas are bringing home just insane returns on what, compared to what you actually got in the property. And so I want to dive deep and really express and do my own research and be able to share that with people on what exactly I intend to do myself here locally. And as well as what I think the returns will be. This isn’t something that I have done yet, but this is something that I hope to be able to share and at least plant seeds and ideas with others as to how you can get in this market and about what you can expect your returns to be on different products. So I am now the proud owner of HuntsvilleGlamping.com. And I really plan to tap into that market.

Alicia Merriman

00:22:29

I’ve already got 8 acres right outside the city, and then I’ve got another 6. So I am slowly collecting up property and I’m doing it in a very, very wise way, in my opinion, I’ve leveraged. And I’ve intentionally selected the locations. For example, let’s say that you selected an area where it’s not commercial. Like you can’t exactly just rent out dwellings, but maybe it’s deemed “Ag.” So what stops you from actually having a petting zoo on that property at your rental and leveraging that opportunity? Okay. You could do that. Now you are deemed “Ag” because there’s “Ag,” there are animals there. So little things like that, that I’ve kind of learned along the way that in my research, as well as things like this is the opposite of what I thought it would be. I kind of thought that if I was going out to stay at a place that was glamping or any of these kinds of non traditional dwellings that I would want, like privacy, tranquility, you know, kind of like an intimate experience? That’s actually not true.

Alicia Merriman

00:23:42

People, apparently, seem to get a little bit wigged out whenever they can’t see another dwelling. So they like to have multiple yurts within eye distance. That’s actually the opposite of what I would have assumed. Right? So little tips like that, I think are gonna make a big difference. But with that little tip, well, heck that’s even better to put multiple properties, multiple dwellings on one property. So yeah, I’m deep in the throes of my research and I hope that everyone can grow from it.

Walter Wofford

00:24:13

Wonderful. Thank you, Alicia. All right, Wendy?

Wendy Sweet

00:24:17

Well, you know, I mentioned earlier that by day, I am a covert hard money lender, and so I’m kind of like the money lady. I’m always looking for ways to finance stuff. So that’s one of the things that we’re going to talk about and we’re going to get in really deep on how to finance.

Wendy Sweet

00:24:36

There’s so many different ways that you can finance these options, whether it’s land that Alicia is talking about, whether it’s using somebody’s low dollar IRA or big dollar IRA, or there’s big lenders out there, there’s small lenders out there. There’s a way to combine all of that with seller-financing. There’s so many different options out there. And that’s what we’re going to talk about are all the different ways that you can finance a short-term rental.

Walter Wofford

00:25:08

Excellent. All right. So we got Al.

Al Williamson

00:25:13

Yeah, So from coming back, once you’re up and going, once you know how to keep the place filled, well, how do you operate for the long-term? So I’m just going to touch on that. So we’ve been talking about how you can operate a six-figure extended stay rental business without feeling frazzled and maintain it for absolutely for free. So I’m gonna give that to you.

Al Williamson

00:25:35

I’m gonna bring it to you like the small things that you need to do that really spin the flywheel. And that’s what you want to do is get that flywheel, that money flywheel going. And then it’s the processes that you can use to put things on autopilot. We’re going to go over those and then how you can schedule small surprises, things like that, that really nudge your customer into being super loyal repeat clients for you. So can’t wait to bring that. Can’t wait to see everybody! Let’s do this!

Walter Wofford

00:26:08

Well, and then session 10, we’ll have a Q & A at the end. Now let’s be honest. Aren’t we all pretty selfish? We want to know from, learn from other people? Yes. So that’s, we’re sharpening each other’s sword.

Wendy Sweet

00:26:23

It’s just this little powwow that got my brain back open. Alicia’s got me all excited about the glamping because I live on a farm and I have a tiny house on my farm, but now I’m thinking, “Oh, I need to set up some campsites.” And let them take care of my pets. They can feed my chickens and clean out the horse stall and do whatever they want.

Bill Fairman

00:26:50

Well, wasn’t it an interesting start off? We had a little bit of technical issues, but it worked out well. We are going to try to get you the information so you can sign up, I know they’re going to be doing videos on this. I’m not quite sure if it’s going to be a live event as well on Zoom, but I know they’re going to have videos available for that. And there’s a lot of good information in there. I want to thank you, guys. And did you want to add anything?

Jonathan Davis

00:27:32

No, I said it’s a great thing, once we get the information out, sign up for it, learn it. If you’re at all interested in short-term rentals, you will learn a lot.

Bill Fairman

00:27:44

Well, just my little tidbit at the end, anytime you buy a property in order to do a short-term rental, the first thing that you need to do is make sure that it will work as a long-term rental, because you always want multiple exit strategies.

Jonathan Davis

00:28:02

When you’re buying a short-term rental property, don’t buy it as a long-term rental. Cause if you’re buying it as a long-term rental, it always makes sense. If you’re buying it because it’s like, “Oh, we can make 5,000 a month on this.” Don’t do that.

Bill Fairman

00:28:17

Yeah, sometimes it doesn’t, especially if you’re buying them in destination areas where they tend to be higher dollar properties. And if you can’t, long-term rent it and still cashflow it. Don’t do that.

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