The Top 5 Mistakes New Airbnb Investors Make

What’s up guys, in today’s video, I’m gonna be talking about the five biggest mistakes that I see investors making when it comes to investing in short term rental properties. And I especially see this happening with people that are just getting started or looking to buy their first short term rental property.

So let’s jump right in. And I’m going to start with number five. One of the big mistakes that I see investors making is just waiting too long. I see investors all the time waiting too long, delaying dragging their feet. And they’re constantly worried that either they don’t have enough money to invest, or they’re worried about the market or all these other things, or they just think about it and talk about it but never take action. And one of the biggest lessons I learned I actually did this myself for a number of years, I delayed on actually buying real estate and buying short term rental properties. And it’s one of the biggest financial regrets that I have, if not the biggest financial regret that I have of my life. Because it is really incredible having your money work for you, outside of when you’re going and working for your money. And real estate is such a phenomenal way to do that. And the sooner you get started, the sooner you start having cash flow coming in that you don’t have to work every day for the sooner you start building appreciation on your asset. And the sooner you start building up more equity in your asset by paying down principal on the mortgage. So it really is something where the best time to start is now. And the second best time to start is right now. Right. Or as a lot of investors say the best time to start is years ago. And the second time best time to start is now there’s a reason people say that there’s a reason it’s a cliche, but it really is better to actually just get started as long as you’re doing it the right way. So that’s one of the big mistakes I see investors making is just waiting too long. The number four biggest mistake that I see investors make and this is a super, super common one, especially right now at the tunnel I recording this video, interest rates are high, they’re peeking around 8%. And I see a lot of investors worrying about interest rates on their mortgages on financing. And this is a really, really big mistake, because you forget about the reason that you’re investing in real estate or short term rental properties in the first place. Ultimately, you’re not going to be the one paying the interest on the mortgage, and the guest is going to be the one paying the interest on the mortgage. So yes, you do need to be mindful of your interest rate. And absolutely, you need to factor that into your calculations. But high interest rates are not a reason to not invest in real estate or not invest in short term rental properties, if anything is just even more reason to get started. Because as interest rates climb, prices tend to come lower and lower because less people can afford those properties. There’s less demand. So now is actually a really, really great time to buy. And it’s funny actually being able to witness what’s going on with this kind of bird’s eye perspective that I have. And it’s funny, you know, when interest rates were super low a couple of years ago, everyone wanted to get in and that’s when prices were sky high. And that’s when I was the most sceptical like Warren Buffett says, when others are greedy, be fearful when others are fearful right now, this is the biggest opportunity for buying a long time, it’s a great time to be buying real estate, if you can find the right deal, the cash flows really well. Especially if the cash flows with these higher interest rates and cash flows really well. And you have enough margin for error that you know, the property is never going to cashflow negative, even in a worst case scenario, we’ll have that just means it’s still a really great investment, you’re still getting great cash flow, you’re probably getting the property for a lower price than it’s actually worth because there’s fewer people buying right now. And when interest rates do come back down, you’re gonna be able to refinance and squeeze even more cash flow out of the deal. So again, like Warren Buffett says, when others are fearful, that’s when you want to be greedy, I see a lot of investors getting worried about is now the right time to buy. And ultimately, there’s never a perfect time to buy, it’s really more just about the deal, there’s never a bad time to buy a good deal, and there’s never a good time to buy a bad deal. And so as long as you know how to analyse and find good deals and distinguish them from bad ones, there’s never actually a better or worse or you know, perfect time to buy. So what’s the fourth mistake that I see investors make is just worrying too much about interest rates. Now the third big mistake that I see new and seasoned investors making all the time I see this even amongst people that already have 1234 properties that they already own is they just take the list price at face value, and they only run their numbers on a property at the listed sale price. Now again, especially in a time like this, when sellers a lot of them are dropping their numbers dropping their list price and need to get out of their properties because they’re in a bad spot on them. All prices are negotiable. Even when the market was going crazy. I was even able to get a property for $100,000 below this price, and I was able to pick up a deal that was really really incredible the cashflow exceptionally well that had been sitting on the market for 60 days with no other than that touching it simply because people were scared away by the list price, it’s important to realise that putting an offer out there, there’s virtually no harm in it contacting a seller to just see how negotiable they are, there’s virtually no harm in it. There’s all these opportunities that are waiting for investors to grab them up, that just aren’t getting touched, because people are afraid to negotiate or they don’t think that they can, they don’t think it’s gonna be worth while. The reality is there’s tonnes of ways to negotiate on a deal purchase price being one of them, and one of the biggest levers that you can pull on. So I highly recommend that people actually look at, especially right now, the list price real property as big negotiable. And the numbers don’t work at the actual listed price, just realise that you can always go and ask or put an offer in at a lower price than that. So that’s another big mistake that I see people make that just holds them out and makes them off to wait longer because it’s harder to find deals if you’re not willing to negotiate on price. Now the second biggest mistake that I see people making all the time as well. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnbs. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training linked in the description down below as well, there’ll be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. Now, the second biggest mistake that I see people making all the time as well is just spending too much time thinking about or trying to figure out the perfect market to invest in and go, a lot of people have this idea in their head that if they just find that next big thing that Gatlinburg of years past, then they’re going to you know, really buy their lottery ticket for the rest of their life

and just have this property that’s going to blow up and perform really well. And though finding a really great market, and a good opportunity is very important. It’s not nearly as important, as I think a lot of especially new investors make it out to be. The reality is there are a lot of great markets, there are a lot of less great markets. And in the worst markets, it just means it’s hard to find really great deals and the great markets, it generally means it’s easier to find really good deals. But notice that I didn’t say it’s impossible that you’re going to find a great deal in a bad market. And it’s also not guaranteed that you’re going to find a great deal in a great market, the end of the day, the deal is way more important than the market itself. And so I think just a lot of people try to find this little unicorn market where they can find any single property, they’ll run the numbers on it, and the cash on cash is incredible. The numbers are just amazing. And it’s just kind of a fool’s errand because that type of market doesn’t actually exist. Now, that brings me to the number one biggest mistake that I see investors making all the time. And it’s really tied right in hand in hand with number two. And that’s not emphasising enough on the actual deal itself and running the numbers and spending enough time actually making sure the deal itself makes sense. Just like I said before, it is so much more about the deal than it is about the market or anything else. And so this is actually where you do want to put time into your analysis is actually looking at the deal looking at the worst case scenario, looking at a reasonable scenario, looking at the best case scenario, looking at your different exit plans, and just really taking the time to dive deep into the numbers and do it the right way. Let’s see a lot of investors out there just trusting their realtor blindly when the realtor says hey, this is going to be a good short term rental, or I see a lot of people doing kind of back of the envelope back back of the paper napkin na and saying, Well, if I rent it for this many dollars a night and I get it rented 20 nights a month, all 12 months of the year, then great, I’m gonna do well. And the reality is that’s not actually how things are going to play out a lot of the time, it’s just guesswork they’re using to determine that nightly rate and to determine their occupancy rate and they’re not actually doing proper due diligence. And so what happens is either they have something they have a kind of formula worked out that grossly overestimate how well a property can perform. And as a result, they’re gonna go and buy a really bad deal and end up upside down on a really bad spot. Or they grossly underestimate what a property can do. And as a result, they’re passing up on deal after deal after deal and they ultimately will never find a deal using that strategy. He because they’re just being too conservative too far on the one end of the spectrum. And so what you really want to do is find that balance where you actually have an accurate analysis, it’s not helpful to be over projecting revenue or under projecting revenue, you need accuracy when it comes to short term rental investing. And that comes from having real numbers and doing proper due diligence. So this is one of the biggest things that you can do to set yourself up for success, especially with the first property is just getting a really great property that’s going to cashflow really well, because I always tell people, if you buy a bad deal, you can do everything else after that perfectly and still come out behind. And if you buy a really great exceptional deal, you can make mistakes on every single thing after that and mess it all up and still come out way ahead. So you want to really look at that first deal, or just actually buying any property, your portfolio as being the number one highest leverage thing you can do. You want to take your time with that to make sure you actually do it right. So again, if you want our help with any of this stuff, then just check out the links in the description down below for our free trainings on how we can help you do all that and how to just invest successfully in short term rental properties. As always, if you liked this video if you found it helpful if it pointed out any mistakes that you might be making or that you would have made if you hadn’t seen this video or if you just liked this channel like this video and want to support me please take half a second to hit that like button I really do appreciate it helps me out a lot with growing this channel and getting these videos in front of more people and helping more short term rental investors out. And last but not least hear let me know in the comment section down below if you have any comments, thoughts, questions, anything or all you want to share with me and make sure you hit that subscribe button down below the video as well again helps you out because we post two new videos every single week on this channel helping you to invest and manage properties on Airbnb and short term rental more successfully. So with all that said, thanks so much for watching. I’ll see you in the next video.