Acquiring Properties Through Creative STR Strategies

Traditional real estate investing requires saving for a down payment and securing a bank loan before you purchase an asset. And this process limits how often you can add properties to your portfolio. But that is not the only way to acquire real estate, and Scott Glass contends that with a little creativity, you can own more properties and accelerate the growth of your STR listings!Scott Glass is a serial entrepreneur and real estate investor who manages 65 STR units in his native Canada, the US and the Dominican Republic. He has been active in the space for nine years and full-time for the last five. Today, Scott joins me to share his unconventional method of acquiring more properties more quickly, the land contract or seller financing strategy.Scott explains how the above-average cashflow of the Airbnb model supports land contracts and walks us through the process of finding FSBO properties and negotiating with owner-investors. Listen in to understand how Scott’s focus on larger properties helps him stand out on STR sites and learn how he leverages what he calls clustering to accommodate large groups and earn a premium on his listings!Topics CoveredScott’s background in the STR spaceActive nine years and full-time last fiveListings in Canada, US + Dominican RepublicWhat inspired Scott to pursue AirbnbUnconventional strategy to acquire propertiesSTR provides above-average cashflowWhy Scott uses land contracts or seller financingDeal directly with investor-ownerFind motivated seller living in different marketHow Scott finds seller financing dealsBasic research on Craigslist and ZillowSearch FSBOs by zip code (larger properties)The terms + conditions Scott proposesCash offer for significant discountZero down, balance of sale over 60 monthsScott’s success with the land contract strategyRecoup investment within two yearsOwn asset debt-free by year fiveThe fundamentals of land contractsTitle held by owner until final paymentValue-add in lieu of down payment/interestScott’s success in secondary marketsAttracts business travelers, tradesmenRecoup investment in 15 monthsHow Scott stands out on AirbnbLarge properties to accommodate groupsLess competitive and higher yieldScott’s cluster listing strategyList entire nine-unit building (i.e.: weddings)List entire floor (cluster of three units)List clusters of two 60 days outMake singles available 30 days outConnect with ScottScott’s Airbnb ProfileResourcesSTR Legends LiveCraigslistZillowTo subscribe to the podcast, please use the links belowClick Here to Subscribe via iTunesClick here to Subscribe via Stitcher (Android users)If you like the show, please consider leaving the show a review in iTunesor Stitcher. A couple minutes of your time can help the show immensely! Thanks! Hosted on Acast. See acast.com/privacy for more information.