Holly: Hi everyone, and welcome back to the blog! Today, we have a special guest with us: Aviram Shahar, co-founder and CEO of Lendlord.io. He’s here to talk about a topic that every property owner dreads: those periods between tenancies. Aviram, thank you so much for joining us today.
Aviram: Thank you, Holly. It’s great to be here, and I’m excited to dive into this important topic.
Holly: Fantastic! So, let’s get right into it. I know a lot of landlords and property owners really struggle during those vacant periods between tenancies. From your experience, what are the key funding strategies that can help owners navigate this financial challenge?
Aviram: Absolutely, Holly. Between tenancies, cash flow can become a significant problem for property owners. One of the most important things is to have a well-rounded approach to funding strategies. Many property owners still rely on traditional options like bank loans—and that’s fine—but the market is evolving, and there are now creative approaches that can help bridge the gap, such as utilizing tenancy contracts templates to ensure smooth transitions and secure financing when needed.
Holly: Right, I’ve heard a lot about alternative methods lately. Could you expand on what some of these newer approaches are?
Aviram: Sure thing. One of the most exciting developments we’ve seen is the rise of crowdfunding in real estate. Crowdfunding allows property owners to raise capital from multiple investors, which is great if you’re looking to fill in gaps without going through traditional banks. It’s an innovative way to bring more people into the real estate game, and for landlords, it’s a way to access funds they might not have been able to get otherwise. Plus, using tools like a bridging loan calculator can help property owners determine their exact funding needs and evaluate whether crowdfunding or another method makes the most financial sense.
Holly: That’s really interesting—and it’s all about flexibility, right? What about seller financing? I think that’s another one that isn’t always on landlords’ radars.
Aviram: Exactly. Seller financing is a fantastic option, especially if the property seller is willing to act as the lender. It bypasses the hurdles that can come with bank loans, making it easier for property owners to secure favorable terms. It’s great for property owners who might not meet the strict requirements of traditional lenders, and it also offers a streamlined closing process. This can be especially beneficial when dealing with a tenancy agreement rolling contract, where flexibility in financing and timing is crucial.
Holly: Sounds like a win win for both sides, but there’s got to be some challenges, too. I know market conditions can play a big role. How should property owners adapt their strategies based on these market dynamics?
Aviram: You’re absolutely right, Holly. Market conditions are huge in determining which strategy is best. For example, during economic downturns, getting traditional loans might be more difficult because of tighter lending standards. That’s where creative approaches, like crowdfunding or seller financing, can really shine—they offer flexibility when other options dry up. But it’s also critical for property owners to understand the risks. Market volatility can lead to changing property values, tenant issues, or unexpected maintenance costs. Having a solid reserve fund and effective budgeting strategy is key.
Holly: Makes sense. So, it sounds like a mix of being proactive, flexible, and having some creative tools in the toolkit is what’s really going to help property owners through those vacancy periods.
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