The only constant in today’s economy is change. Business is continually evolving thanks to the development of new technologies, sociocultural advancement and countless other factors that influence the exchange of goods and services. Virtually every industry is seemingly going through some sort of reinvention—to include real estate. The exponential growth of the sharing economy offers travelers with unique and comparatively affordable lodging choices. Over the past few years, Airbnb has grown into an overwhelmingly popular option and continues to be a source of profitable opportunities for savvy real estate professionals looking to diversify their portfolio of revenue-generating assets. In fact, purchasing an Airbnb property is potentially one of the most dynamic moves an investor can make. There are countless Airbnb hosts that have been successful enough to where they can quit their day jobs and live full-time off their rental incomes.
With that being said, the acquisition process of an Airbnb investment property and making it guest-ready is an admittedly costly process. The issue is that the majority of aspiring investors who are looking to tap into this niche rental market typically do not have adequate cash reserves to purchase a property outright. Accordingly, one of the most common questions among those looking to get involved in the Airbnb rental space has to do with funding options. Successfully obtaining funding for Airbnb rentals is not quite as easy as investors think it is. Because of their short-term focus, investors are often met with enhanced scrutiny form conventional lenders during the underwriting and evaluation process—making it a stressful and lengthy process with a minimal likelihood of getting the funding you need.
That’s where Alpha Funding Partners come into play. With our flexible and efficient rental loan program, you can get the money you need to close on the perfect Airbnb property when you need it—and with the added bonus of knowing that you are getting the best financing terms. Our 30-year rental loans are perfectly-suited for Airbnb rentals. The Alpha Funding Partners team is comprised of experienced financial professionals that make the loan application and approval process a comparative breeze, meaning you can obtain funding in a matter of days as opposed to the months it takes for traditional banks to disburse funds.
But the real value of partnering with Alpha Funding Partners for your Airbnb investment plans is our 30-year loan option. The extended period means that you have substantially lower monthly payments as compared to commonly-utilized short-term financing plans. This allows real estate investors to free up more capital that they need to purchase multiple investment properties or to fix up existing Airbnb rentals so that they can charge higher rental fees. More passive income-generating properties with better amenities translates into a much healthier bottom line. Another key advantage of opting for our 30-year rental loan is qualifying for other loans if you do in fact decide to acquire more than one investment property. A big determining metric in obtaining approval for a loan is your debt-to-income ratio, which is found by dividing your monthly debt payments by your overall monthly income. Alpha Funding Partners’ 30-year long term rental loan provides you with the financial freedom by drastically lowering your monthly loan payment and boosting your monthly income by increasing your liquidity. That in turn enhances your debt-to-income ratio, allowing you to tap into multiple funding sources to grow and diversify your rental property portfolio to maximize your earning potential.
Alpha Funding Partners understands today’s dynamic real estate industry, and we are confident that Airbnb and VRBO will continue to fuel the housing markets in major travel locations across the country. Are you an aspiring real estate investors looking to target key rental property markets? Contact us today to learn more about how we can help you make your investment dreams a reality!