The only business that keeps on growing in value despite what may happen in the market is real estate. Having a piece of property may it be an apartment, a studio unit, a storage area, a family home, a store, a warehouse or even a prime lot can mean a secure future. As more and more people are making their way to the city or in urban areas to come to work and set up businesses, the need for real estate properties are also increasing.
One of the best ways to invest your hard earned money or to start your own business is to have your own space or property and then put it up for rental. This is one business that will never go out of style and you would not even have to worry about spoilage as it does not rot or go stale or out of fashion. However, owning a property from your own savings is far from reality, truth is, working two or more jobs will never get you the capital you need to own a property that you can also use as a business for extra source of income.
Thus, if you are thinking of finding AirBnB financing, then you need to go real property financing firms that offer various kinds of loans for that very purpose.
The advent of AirBnB have taken the world by storm, and even if you have doubts about it, AirBnB actually works and you can very well make money or earn extra for a space you have not used at all. AirBnB is a web application that allows property owners to advertise their extra rooms, spaces, houses and condominium units for rent at a specified rate and all transactions go through AirBnB and takes the hassle out of having to hire someone to oversee the business.
Simply with the app, homeowners are able to put up their spaces for rent, while those wo want to visit that particular place can choose from the many AirBnB rentals in that area. More and more people now prefer AirBnB than hotels since it is way more cheaper, and you get to use the entire house, loft, or unit and you can use whatever amenities is in there and you can check in and out without much effort.
With the increase of customers who book AirBnB spaces, the potential for making this as a business enterprise is very high, and one that may prove to have very high yield also. However the question of where to secure funding for AirBnB financing remains.
Are Your AirBnB Financing Options?
The housing bubble that occurred in first part of the twentieth century still have negative repercussions on the public. For one, the prices of real property although still improving but many homes had been foreclosed and many housing mortgages have remained unpaid to this day. As such, banks are now not so keen on providing real-estate or housing related loans, for fear that the bubble may again burst.
If you are thinking of buying a property to convert into an AirBnB rental, definitely the banks are not a part of your options. You can take out loans from your parents or rich uncles but this would not give you much capital to work with. You can also make a loan against you retirement benefits, but this is risky and might prove to be too much to decide on. Your last option would be to secure a loan from firms that specialize on providing capital to real-property related ventures. The answer to your AirBnB financing problems would be to know more about these kinds of firms and determine if what they have to offer and what you need to pay them back are just and fair.
is AirBnB Financing Loans?
Lending firms who provide personal and business loans to entities and individuals are the lifeblood of real-property development. It is safe to say that most banking institutions are wary of such loans and fear they might not get paid, thus they often out rightly refuse or deny the loan application. Lending firms like Kram Capital have had a long history of providing loans to individuals and groups who would like to build, purchase or improve real property may it be a home, a building, a shop, an apartment or a storage space. Since you are in need of capital for your AirBnB financing, then Kram Capital is your best option. With the firm’s experience in real property, they will be able to not only provide the capital you need but also help you along the way to make your aspirations become a reality.
The firm offers a number of loans all related to the purchase and development of real property in key cities in the country. You might have observed that your town is becoming a tourist destination and more and more people are coming to visit, it could be to your best interest to buy a property and rent it using the AirBnB app. By renting out your property, you are also making money from it, and being assured that you do have a property to your name. There are a number of loans you could apply for, although the firm will help you with choosing the most appropriate one for your needs. The firm also have a specific AirBnB financing loan of up to one hundred thousand to two million dollars as capital for your AirBnB rentals.
To Make An AirBnB Financing Loan?
The loan application process is fairly straightforward, you just have to apply for a loan in person or by submitting an online form. The application forms identify the needed information that will qualify you for a loan. If you do qualify, then you will be asked to submit a letter of intent to the firm detailing what the loan is for and how will you be using the loan proceeds. Then you just need to wait for the firm to contact you regarding the additional requirements and then to the underwriting and funding.
It is in this stage that the firm will assess the value of the property you wish to purchase and develop and will ballpark the loan proceeds at eighty percent of the market value of the said property. The firm will then proceed to release the amount once all the legal contracts have been completed. Once the loan proceeds have been released, you are now required to follow through with the payment arrangement that you have agreed on during the loan application process.
The entire processing of the loan from application to release may take from fifteen to thirty days at most, depending on your ability to submit all the necessary requirements and documents.
Long is the AirBnB Financing Loan Terms?
Larger financing firms can offer longer loan terms as they have more capital to work with, on average, the usual AirBnB financing terms can be from five to seven years which gives you ample time to pay off your loan and have enough to realize the return of your investments. The company can offer you a longer term depending on the amount that is granted in the loan. The lower the loan value, the shorter is the loan terms.
If your loan amounted to a million dollars, then you could expect the moan terms to be about six to seven years. As long as you pay it consistently and strive to pay it even before the loan term ends, then you can be sure that the company will not hesitate to grant you another loan if you need it. Moreover, once you pay off the loan, the property is now yours for a lifetime, and you can also sell it and then buy another property, this time you would not even need to take out a loan.
AirBnB Financing The Right Decision?
It is a sad reality that most people would not be able to realize financial security if you just depend on your monthly income, all of the successful businesses out there succeeded not because they were working for a company or for someone, but rather they took the risk and went out of their way to make their business ideas work to their advantage.
Having your own business may seem impossible, but when you do get there you will fondly look back and say that it was all worth it. Not a single employee have been able to gain that satisfaction from a business they did not own. Taking out an AirBnb financing may be scary and daunting, you may be worried about the financial burden, thus it should also be a decision that you need to think over and over and to be able to outweigh the pros and the cons and whether you are ready for this business venture.
If you ask the industry leaders, they would tell you that real property is the safest and most lucrative business you could ever have, and even if your AirBnB plans do not fall through, you can still have that property leased or rented on a long term basis, and you would still make profits from it.
About Author: Rachel Johns
I am business grad with majors in Marketing and New Media, and I work as an independent marketing strategist. Writing is my passion as it gives me an opportunity to express myself. I love traveling and exploring the world, but most importantly, how the world is evolving.