Beginner's Guide: How to Connect with Insurance Companies to Grow Your Mid-Term Rental Business

Summary

In this engaging video by Mid-Term Rental Insurance Experiments, viewers are guided through the process of connecting with insurance companies to grow their mid-term rental business. The session begins with the guest expressing their journey into the mid-term rental strategy and subscribing to the host's content. A series of informative exchanges cover topics such as the feasibility of using mid-term rental strategies in house hacks, understanding when such strategies may not fit as an exit plan, and effectively building relationships with insurance companies. The session highlights practical tips like utilizing databases for visibility, exploring in-law suites, and leveraging social connections to enhance rental opportunities, making it a valuable resource for beginners.

Highlights

• House hacking with a mid-term strategy can work if financials and location align. 💡
• Check regulations before choosing mid-term rentals, as certain restrictions may limit options. ⚖️
• Better visibility comes from being present in databases and on rental platforms, increasing chances of insurer contacts. 🌐
• Interacting naturally with insurers helps in fostering lasting professional relationships. 🤝

Key Takeaways

• Starting with house hacks using mid-term rental strategies is doable, but remember it's dependent on the deal's numbers and criteria. 📊
• When considering mid-term rentals, always assess the regulations like HOA restrictions, which could impact your strategy. 🚧
• Listing properties in databases like AL Solutions and using platforms like Airbnb can help connect with insurance companies. 📱
• Building relationships with insurers involves being listed where they search and maintaining open communication. 🤝

Overview

The video kicks off with an informal greeting and a dive into how the guest discovered and came to appreciate the host’s content through YouTube. The conversation eases into the main topic with an enthusiastic discourse about the feasibility and potential of integrating mid-term rental strategies, particularly through house hacking, a clever property investment method that involves renting out portions of a residence.

As the discussion deepens, the host shares vital insights into why certain markets might not be suitable for mid-term rentals, advising enthusiasts to understand HOA and other regional regulations that could hinder their rental strategies. The advice extends to considering dual exit strategies to ensure reliability, even in fluctuating rental markets, thus laying out a foundation of smart and strategic thinking.

Towards the end, the video transforms into a practical guide on building efficient relationships with insurance companies, starting with being visible in key databases and online platforms. The host emphasizes natural and ongoing communication to strengthen these connections, supplemented with tips on identifying promising property types like in-law suites, which can open more rental opportunities.

Chapters

• 00:00 - 00:30: Introduction and Personal Connections In this chapter, the host introduces the format of the 15-minute MTR coaching Hot Seat, where participants can ask up to three questions in less than 15 minutes. The conversation transitions to personal connections, with the participant sharing how they discovered the host's content on YouTube. They explain that they found the host's videos while researching the midterm rental strategy, which led them to delve further into the host's material.
• 00:30 - 03:00: House Hacking and Mid-Term Rental Strategy The chapter discusses a conversation between two individuals, where one is thanking the other for subscribing to their channel. The dialogue leads into a question and answer session, with one person (who lost the original questions) deciding to ask new questions in real-time. The primary focus is on the concept of house hacking, indicating a practical approach to managing real estate investments with strategies like reducing living expenses by sharing or renting out portions of a property.
• 03:00 - 05:00: When Not to Use Mid-Term Rentals The chapter discusses the suitability of the mid-term rental strategy in a house hacking scenario, particularly in multi-unit buildings like duplexes or triplexes. It addresses a question about whether insurance companies would prefer sending clients to smaller units (duplexes or triplexes) over larger single-family residences. While the response isn't fully articulated in the text, it hints at potential considerations involved in choosing the right rental strategy based on property type.
• 05:00 - 09:00: Building Relationships with Insurance Companies The chapter titled 'Building Relationships with Insurance Companies' discusses the transition from single-family homes to alternatives like townhomes. It emphasizes the need for options that resemble what residents are accustomed to. Despite the challenges faced by people who are displaced from townhomes, the chapter advocates for maximizing opportunities by beginning with existing resources. The chapter reflects on the motivation to enter the market, aiming to find places where significant income is possible, mirroring the success seen in lucrative vacation markets.
• 09:00 - 13:00: Resources and Market Advice The chapter 'Resources and Market Advice' discusses strategies to optimize real estate investment through 'house hacking'. It emphasizes ensuring that house hacking numbers are viable for Short-Term Rentals (STR) and making optimizations for Long-Term Stays. The chapter starts with experiences from Georgia, capitalizing on the 'shiny object syndrome' to maximize returns. It also highlights the importance of being listed in relevant databases to secure constant bookings, particularly in the midterm rental insurance segment.

Beginner's Guide: How to Connect with Insurance Companies to Grow Your Mid-Term Rental Business Transcription

• 00:00 - 00:30 welcome to the 15minute MTR coaching Hot Seat where you get to ask three questions or less than 15 minutes or less and I gotta ask you brother before we start where did you hear from me how did we connect where did I hear from you man I feel like I just find people on YouTube and then like the ones that I like I just Dive Right In and you know keep learning more from them um I think it was when I got looking into the midterm rental strategy of course um and then your videos popped up a couple other popped up and yours are pretty
• 00:30 - 01:00 interesting I'm not going to lie thanks man hope you did I get a subscribe from you or what's up oh of course first video you asked I I provided thanks brother how could I help you man I don't see I don't think I have a cheat sheet here that shows me the questions that you submitted so but you got you get three of them so shoot I don't know I don't know if I I didn't get it but it's all good you can do it in real time cool I lost them so I actually kind of created new one so it's good that that it worked out that way so first and foremost um I'm looking to house hack
• 01:00 - 01:30 right I'm looking to do my first property as a house hack and I was curious if you could use the midterm rental strategy with a house hack um if you were to get a building with multiple units so like a duplex or a Triplex would there ever be a time that insurance companies are looking to send their clients to a duplex or a Triplex as opposed to a larger single family residence like you always talk about yeah so good question I think uh there's two things to keep in mind right if
• 01:30 - 02:00 they're coming from a single family home and you know they're going to move into what is almost the equivalent of a town home they're going to look for an option that's probably Rel U um to what they're used to now there's tons of people that get displac from town homes too but the thing that I like to say is I want to increase my chances now I'm a huge fan of starting from where you're at that's why we got into this space in the first place because we weren't in those markets where people were grossing like 20,000 a month in vacation markets that
• 02:00 - 02:30 was kind of like right the shiny U um that you know shiny object syndrome right we're like okay how can we make more with what we have right and we started in Georgia so I would say if you got a deal right now where you're like the way I would look at it if you're going to house hack make sure that the house hacking numbers make sense for a SDR and then be optimized for long-term St because remember the midterm rental insurance once you're optimized for it once you're in the database Etc we still get booking some times for like on
• 02:30 - 03:00 Airbnb for like two months or we literally had a a midterm rental client stay with us for four months and it's just Airbnb paying you there's Airbnb for work where the temporary relocation Specialists they're not like you know maybe they might look for they they might filter for like single family only but Airbnb doesn't really care about that unless it's really like this saying like hey this is like you know what I mean so keep in mind you're opening up doors for more MTR opportunities start with what makes sense if you're looking
• 03:00 - 03:30 at a deal right now and it makes sense and you can run the numbers yes you can absolutely do it does it mean that someone that's coming from four-bedroom home or three-bedroom home or five-bedroom home with single family fenced in backyard will choose yours maybe maybe not right so it's just knowing what you're facing and then making the educated decision to move forward with what where with based on where you're at is the best advice I can give okay cool that's a great answer thank you um let's see so this one was kind of you know
• 03:30 - 04:00 I feel like it's an easy question but it was when does midterm rentals just absolutely not not make sense for your exit strategy like when would it just you know you shouldn't even consider it that's that's an easy one so when you're in a market that doesn't allow you to do s strr as an exit strategy so if you're in a place where it says HOA you're not allowed to do less than 30 days I wouldn't do the mentals because you basically have no backup plan and the last thing I want to do is be like oh Ruben man like listen I've been like starving for the last three months I have got an insurance inquiry or
• 04:00 - 04:30 anything and I can't make money on Airbnb and the long-term rentals numbers don't make sense I don't know what to tell you dude that's not for me that's not an asset I would invest in like I want to have as many chances as possible to have an exit if if you can hit the three that's like let me know but it should at least be can this work as a strr yes what are the regulations is there licensing play okay great what does it cost me is there any foreshadowing of of regulations being like absolete at some point maybe that
• 04:30 - 05:00 works in my favor if I get one now or maybe it's like we're green okay great what are the MTR uh the MTR number that's the thing I always want to analyze that as an Sr deal the MTR number is based on the value of the home if you I don't know how many of my videos you watch but that's kind of like the rule of thumb is 20 to 30% of that home's value if it's an insurance relocation that they're that's their budget that they're willing to work with but then I would ask the other question okay what if I don't have an MTR contract am I close to a hospital am I close to Metro City like those the the
• 05:00 - 05:30 asset type and the location the fundamentals of real estate still apply right then I would like a look at maybe third and i' only look at this today is like could I could I long-term rental it and usually the numbers don't check out anymore especially with these interest rates that I at least want two exit strategies but if you go into a deal be like hey Reuben I'm in an HOA they say that I can't have less than 30 days leases and I can't be on Airbnb dude going to other direction because you're
• 05:30 - 06:00 just setting yourself up for for failure or at least stress I don't want to have that stress right all right cool and then this is a a big one for me obviously because I'm a beginner so as a beginner I'm sure you have videos on this but in my little time of of digging I couldn't find them um how can I build rapport with insurance companies um as a new investor you know not even like new to the midterm rental space like completely completely new no Properties or anything yet you're saying build
• 06:00 - 06:30 relationships with an investor no the uh the companies insurance companies yeah Lois hanging fruit the building the relationship starts with where do they hang out right where where where are they looking that's going to be in the databases that's the lowest hanging fruit so uh you've heard of like the AL Solutions you've heard me say that CRS THD when you get your property it's an absolute must that you list your property in a database takes two seconds
• 06:30 - 07:00 half of them don't even require you to have pictures enter them there because that's where they're looking the second one is Zillow rental manager that's where they're looking they're looking online they're looking at first their database then they're looking online then they'll go on Airbnb then the third it's Airbnb like I want to make sure I'm there I want to make sure I'm wide open my calendar is wide open I use the duplicate uh listing strategy uh that I Implement I know I teach a lot of my students about that where you have one Sr listing and one MTR listing the MTR listing is wide open so that you're open for business but you don't allow
• 07:00 - 07:30 yourself to get booked instantly by removing instant book and that allows you to at least have visibility in the marketplace where you're raising your hand you're saying hey I welcome long-term stays with my furnished accommodation so those are the lowest hanging fruit once you get a first Contact that reaches out to you then it's just like me and you we'll Foster relationship maybe we get to meet again jack but I reach out hey Jack how's the search going man everything good did you land a contract do you find that house hack you're just checking in see how you can help you're building relationship naturally right you start with one and
• 07:30 - 08:00 then I might say hey Jack by the way you know this is if I'm and I'm I am licensed but I'm not like literally seeking out for your business but I might say hey what what state are you based in by the way Jack oh New Hampshire New Hampshire okay cool um I have a license in Mass I know a guy who could probably help you in New Hampshire by the way is there someone else in your circle that could be possibly interested in also buying a home for the first time I I'm just having a natural conversation and then I got that contact oh cool man that's awesome is it okay by the way if you you you send me the property details cuz my is to help as many families as possible
• 08:00 - 08:30 relocate and I know it could be I know it could be a drag right jack like I'm just trying to have a feel by the way Jack is it okay if I continuously follow up with you like is it okay if I because I don't want to the last thing I do if you're anything like me I don't even look at my inbox it's full of spam so the last thing I want to do is end up in your spam box so is it better for me to call or send you a text right or is it better for me to email like you see what I'm saying I'm just trying to see like I'm giving you options and then and then we build a relationship so just just like any fundamentals How to Win Friends
• 08:30 - 09:00 and Influence People is a great book for that that's all we're trying to do but first and foremost live in the databases once they reached out to you and if they reached out to you then that's when you can start the relationship genuinely based on Supply that's great that's awesome that's awesome bro listen um if it helps um have you grabbed my MTR Insurance blueprint yet no I haven't okay go on my website grab that cuz it has some good
• 09:00 - 09:30 resources and then I send some pretty uh helpful emails uh that going to drop it in the chat right now that way you have it grab this blueprint it'll give you basically what I just said it's free just got to put in your email and I just dropped it in the chat can you get it oh right there yeah yeah grab that and uh then sometimes I have some free webinars and stuff but yeah YouTube's a great source brother and like I'll make make sure that uh you
• 09:30 - 10:00 listen to the podcast as well oh yeah lots of good stuff man and obviously if I can be of any help I'm glad you're able to come in here and ask questions in the flesh that shows me your commitment but New Hampshire firsttime buyer yeah I'm actually GNA be buying in North Carolina and making the move I graduate school in uh about two to three months so well done man I'm hitting the road you're ahead of the pack bro North Carolina is a great market and I have a few I have a few connections out there so if if you're on Instagram just DM me
• 10:00 - 10:30 and you know I can kind of send you a few guys I know Jeremy Warden we were just on the Pod together he's based out there too Michael alonte Mike Riley there's a lot of people out there andy the guy who's just on the MTR Hot Seat is out there too so uh you're in a great Market you're in great company man I'm so glad you're getting started early right after school me too man I I'm dying too I can't wait house hacking bro start with that um if you if you can uh leverage another big Leverage point that
• 10:30 - 11:00 we've used and I can tell you that I've helped a lot of people is when you're looking your realtor might not always know this so if you are looking are you currently looking or you're under contract or what oh yeah I'm looking I don't have anything under contract unless I'm going wholesale it here's a little hack you can thank me later look for a four bedroom three bath where there's a there's two separate entrances it's still considered a single family home but it's you you you're buying it as a single family home which is less expensive than buying as a duplex and has a middle door in the middle the way
• 11:00 - 11:30 you can find those is by looking at looking up um if you're looking yourself in law Suite second kitchen those are some of the keywords that I've used and you can just filter you'll be like oh my God har people not not like taking advantage this because they don't know so most of our homes almost all of our homes are accessible through the basement like that means like when you open up the door you can see outside and they have two entrances and either have a middle door or can add a middle door
• 11:30 - 12:00 and that is your duplex my friend and I always have a bathroom downstairs upstairs there's a home I literally bought like that with two kitchens already it's it's called the in-law suite look for that and house hack that and let that just be the one that takes you to the promised land that's crazy can I put that in like Zillow do they have a feature like that for real Zillow realtor.com DM me if it doesn't work but like that's that's what one of my buddies that I helped cuz I helped him get a property and I had was on the MLS I'm like how did you get H that he's like oh I just put in in-law suite shout
• 12:00 - 12:30 out to Brian Hatcher that's my guy try it in one azilla realtor.com in-law suite second kitchen as a key word and it'll pop up it'll start filtering you know you'll have some good gems to buy because your lender is going to look at that as a single family home and it's really a duplex right on d That's gold absolutely man listen man bless you bro I can't wait to hear from where of your success make sure you share the receipts when you do man I love it I live off of it absolutely I will man awesome salute Jack take care brother
• 12:30 - 13:00 talk to you soon stay in touch on social all right cheers yes sir byebye