Will This Airbnb Secret Help You Become Rich?
Some may say that the rich keep secrets from the rest of us. In this video, Matt reacts to one of the ‘secrets’ that up until now have been withheld from the general public. Take a watch even for a good laugh.
There are tons of people out on social media giving business advice. Some of it is good advice, but most of it isn’t good. In this series watch CapForge’s owner react to different advice videos. He’s an expert in all things business and has 20+ years of experience under his belt. Some of the things he reacts to might even surprise you!
Video Transcript:
Business Advice Video:
Secrets the rich don’t want us to know. Here’s some the rich do that you can do too. Boom. You gonna go get a loan in your LLC. Because it’s a loan this is gonna be tax-free. Use that money to do a down payment on a house. Use that asset as leverage to buy another house. Then you gonna list those properties as short-term rentals like on Airbnb. You gonna use that cash flow to pay back that loan. Then rinse and repeat. Follow for more.
Matt’s Review:
Okay, so I just go get an LLC. Great I can do that through Legal Zoom for a few hundred bucks. And then I go to the bank and I say “Hey I just paid some money for this paperwork, now I’d like
you to give me a large loan.” What do you think they’re gonna say? Absolutely not. Why would they give you a loan just because you set up an LLC? In order for you to have a business that can afford to borrow enough money to use as a down payment for our rental property that business has to have been in operation for at least two years. It has to have significant revenue and positive cash flow, enough to support being able to pay back that loan. And not just barely pay it back but by two or three times the amount. So if you need loan when you pay it back is gonna cost you $10,000 a month you need at least 25 or 30 thousand dollars positive cash flow before they’re gonna give you a loan that cost $10,000 a month to pay back. And when you get a loan from for a business, it’s not a 30-year loan like a mortgage with a low payment that you pay back over 30 years, it’s a short-term loan so the payments are gonna be much higher. So again with like so many of these videos, they leave out a huge chunk of information. They just say go you know have an LLC and then go get a loan and buy it use it to buy a rental property put it on the Airbnb, as if automatically putting any house on Airbnb just dumps all kinds of money in your lap. Not true either. Back in the early days of Airbnb, it was much more possible to do that cause there wasn’t as much competition, that was a new concept. But these days some markets are completely flooded with Airbnb rentals. And even you know there’s now restrictions on how many Airbnb’s there can be and so on and so forth. And they’re trying to really hard to collect that you know hotel tax from Airbnb renters and property owners and all kinds of stuff. So none of these things are nearly as easy as they make it sound in the 60-second TikTok. And I think most people figure that out after they think about it for a few minutes or you know do a little bit more research. So I’m not even sure why they bother making these videos that are just so easily to debunk. I guess but that’s what I’m here for I guess. So I guess keep on making these silly videos and I’ll keep on debunking them.
