Airbnb wish list- Airbnb mortgage financing and Airbnb insurance policies

Rene-and-Zac0
Level 10
La Quinta, CA

Airbnb wish list- Airbnb mortgage financing and Airbnb insurance policies

Since it’s almost Christmas, I thought I’d make a wish to Santa Claus for just two things from Airbnb this coming year. 

1. Airbnb starts to finance mortgages for Airbnb host, so we can acquire property to list on Airbnb.

Tradiotional funding sources cringe when they hear you want to borrow money for an Airbnb property. Airbnb can see a host’s track record of hosting and make decisions that traditional lenders won’t make. If Airbnb is creating a new paradigm for hospitality, let’s shake up the lending and financial markets while we’re at it. I’m talking about put the billion dollar machine that is Airbnb to work for the members of the Airbnb community. Invest in US Brian, like WE invest in YOU. 

2. Airbnb brand name insurance policies that hold up when a claim is made.

 

thats all Santa, just those two things and if I can get a mortgage I only need $190 for my next project. Thank So! Kisses! 

34 Replies 34
David126
Level 10
Como, CO

Do any other booking system do this, if so in which Countries?

David
Sean119
Level 10
Blue Hill, ME

In regard to financing it will never happen.  ABB follow the Tyson chicken production model....all of the capital investment is at the risk of the producer which, in this case, is the host.  

Mark26
Level 10
Melbourne Beach, FL

@Rene-and-Zac0

Personally, I would not invest any significant amount of my own money into an Airbnb listing. Too risky, nearly impossible to forecast potential bookings, and Airbnb as a platform is not reliable enough to trust to respect their own rules and policies related to payment. 

 

Mortgages are usually a long term  issue, AirBnB is mainly focussed on arranging short term bookings, not an obvious match.

David

Hi Jessica and Henry

i am a new host. Why do you say ABB is not reliable or trustworthy please?

 

@Christina299

Because Airbnb does not respect their OWN rules and policies related to cancellations and payment. Airbnb has the right to make whatever final decision they feel like making without any accountablity. Airbnb can arbitrarily decide to not pay hosts or to issue refunds to guests without giving hosts a chance to challenge those claims and there is very little hosts can do about it. - so while I enjoy hosting and I haven't had any serious problems or concerns yet, based on my observation to date, Airbnb is not the type of organization I'd trust with any significant amount of money that could affect my financial stability.

Rene-and-Zac0
Level 10
La Quinta, CA

@David126 What about an Airbnb Visa card with miles rewards and cash back? Earn points towards stays and all that fun stuff. The mortgage stream is most definitely a ‘good match’. The capital is reinvested into product that expands the offering portfolio and it creates a new revenue stream. Wealth is created through mortgage originations and Airbnb has the cash on hand to nuke the traditional mortgage market. It’s about developing revenue streams and being vertically integrated. It’s a ‘new’ way of doing business and the old paradigm is vulnerable and becoming obsolete. I’m just saying, is it rhetoric or is the whole ‘community’ just a cute marketing ploy? 

@Rene-and-Zac0

 

Everytime I go into Home Depot thay ask if I want another one of their cards, I have one and loads of others and only so much space in my wallet.

 

Of course they are just branding, the card is dealt with by other organisations.

 

Not sure why I would want a ABB card, I do not buy from them, well I have booked as a Guest once, AirBnb Miles?

 

ABB Investors do so in ABB to make a higher rate of return than is available in say the Mortgage market, can not imagine they would be happy with funds raise been used for that purpose.

David

One of the reasons I doubt they'd do it is that people would be buying properties whole to specifically be entered into the short term rental market....and cities everywhere are cracking down on exactly that model.  Here in London, hosts can only host whole properties for 90 days and in some municipalities short term letting places like AirBNB are being outright banned.  The whole concept isn't stable enough I think.  



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Edwin57
Level 10
New York, United States

You never know it might happen, is a good ideal I will never said no or yes but things do happen

Fred13
Level 10
Placencia, Belize

I read somewhere Airbnb is getting into the housing market in certain cities.

Christina299
Level 2
Chicago, IL

Mortgage financing is a fantastic idea; it would build the Airbnb brand and community exponentially and be such a win win for all. Especially while mortgage requirements have tightened up and lots of folks Airbnb in order to pay for their homes. Also, self employed people who do not have a steady source of income would be more likely to develop their Airbnb business if it would allow them also to be homeowners. Brilliant Rene and Zac

The reason Airbnb is a billion dollar company is because they do no own property. Mortgage lending is property ownership and the risk is huge. Perhaps you've forgotten the lending crisis that bankrupted many US Banks and major investment banking institutions? This was 100% due to mortgage lending. 

 

You must look at buying a second property as a business expense, not a personal home  mortgage. Banks are reluctant to provide funding for second homes but will look at business financing and business lending when you have a business plan showing that your income can outweigh the expenses. Write out your plan, show a solid investment plan with a proven record for someone turning a profit, banks will consider all good plans and gladly lend you the money.