Austin LeFevre is the face of Warrior Ethos Life, yet another short-term rental coaching program.
His business partner, Jarem Atkinson, delivers the overview.
“We recommend you start with a bottom up approach,” he says. “So start in the tertiary markets. There’s a lower value, due to a lower demand, which means a lower purchase price. Just make sure you look for cities and towns that are near attractions that bring a lot of people to them. When you do that, you can hit a gold mine.”
Smaller cities have less competition. Homeowners aren’t getting hit up every week by deep-pocketed investors wanting to buy their properties for cash. So it’s easier to get their attention and negotiate on price.
As far as what to look for, is there a state or national park nearby? An ATV trail? A great photo op? To the new generation, remember, experiences matter more than material stuff or an impressive population.
Live small and buy small in the beginning, so you can live and invest big later on. Right?
And regardless of the market, there’s always opportunities available, Jarem explains.
If interest rates are high – like they are right now – home prices are lower. Great for buyers. You can always refinance later at a better interest rate. Even when interest rates are low and home prices are therefore higher, tertiary properties will still be undervalued.
Never let people who aren’t even in the game tell you how to play. “Oh, now’s not the time to buy. I’d wait.” Or “Gosh, are you sure about that area? Who’s gonna need an Airbnb there?”
Ignore it.
Do your calculations, make a decision, send the offer.
Scout for deals no one else sees coming. How? Network with real estate agents in the area. Meet the neighbors. Small town gossip can work in your favor. Get a partner. Two sets of eyes are better than one. Join community Facebook Groups. Connect with wholesalers, investors, lenders, the country surveyor, you get the idea.
And offer fair deals. Sometimes you just gotta pay the asking price; just ’cause you can talk ’em down doesn’t mean you should.
When the numbers make sense, pull the trigger. Be straightforward on costs to upgrade, remodel, restore, etc. Leave emotion out of the negotiation. Facts don’t have feelings.
“Don’t be afraid to make a crazy offer,” Jarem says. “For example, if you’re looking to owner finance, show the seller the amortization schedule. Help them to see how much more money they’re going to make as a result of that. A lot of these folks will be older. They’re house rich, cash poor. Help ’em to see the vision. It’s okay if they say no.”
“Another awesome tactic that we had a student do recently is to try and assume the loan that’s already existing with the seller,” Jarem continues. “In today’s higher interest rate environment, that could save you 3-5%.”
“Again, don’t be afraid to be creative and be flexible and throw out some crazy offers. The beauty of operating within a tertiary market is you don’t have the super time-sensitive competition that you do in a primary or a secondary market. So you have more time to work with people,” he points out.
Jarem shares a story of how he and Austin were approached by a seller who had seen their impressive work transforming another property in the area into an Airbnb.
The seller wanted them to buy their house, but Jarem and Austin didn’t have the funds. They asked for an additional 4-5 months before they could commit to the purchase, and the seller agreed.
In a major metro area, such an opportunity would’ve been snatched up by a big-shot investor or large REI company.
Anyways, check out Warrior Ethos Life to discover more about their coaching program and its pricing.