Blog

The Issue with Buying Rental Properties

Over the past several years, rental properties have taken the real estate market by storm. Instead of booking hotels, people are now gravitating towards renting rooms, apartments, and even entire houses for days, weeks, or months at a time—mainly through online services such as Airbnb. It’s no surprise, then, that many entrepreneurs have turned to buying rental properties, which they can rent out, in order to make passive income.

They are faced with an enormous challenge, however, when they realize that owning and managing a rental property is not quite as passive as they assumed.

When Passive Turns Demanding

At first glance, rental properties seem like a completely hands-off way to earn money. Buy a property, post it online, rent it out, and collect the cash.

Simple, right?

Not so much.

The inherent problem with buying rental properties is that, in doing so, you also assume the role of property manager—which means you deal with an extensive list of tasks and issues that may arise while someone else is staying at your property.

First, you are responsible for all maintenance, utility issues, and repairs that your property may require. Leaks don’t wait to happen until you have free time—and water damage is unrelenting. These issues must be addressed immediately, forcing you into a position of being “on-call” at all times, should an issue arise.

Next, you have the tenants themselves. While some are great, some will undoubtedly be difficult in unpredictable ways—from demanding refunds to hosting over-the-top parties in YOUR rental home. When you think of passive income, you don’t think of collecting red solo cups from a yard at 6 a.m….but this could be your reality.Lastly, your property won’t market itself. While properties such as Airbnbs are in high demand, there will always be work on your end to keep up with reviews, post updated photos, and manage booking requests to ensure you are actually making—and not losing—money on your rental property.

An Alternative to Buying Rental Properties

Giri Devanur, a serial entrepreneur, had this and more in mind when he launched reAlpha, a company dedicated to helping people invest in real. Through reAlpha, normal people will be able to become Alpha Humans, investing in and partially owning Airbnb properties without having to take on the role of plumber, electrician, or housekeeper.

reAlpha has been called “the Robinhood of Airbnbs”—and with its brilliant AI that guides app users through the process of choosing properties to invest in, it allows them to partially own and make truly passive income from a variety of Airbnb properties all over the world.

Gone are the days of investing in intangible assets such as stocks. Now, excited and innovative investors can invest in real lucrative real estate, and reap all the benefits of doing so.

It’s not only allowed, but encouraged, to visit and stay at the Airbnbs you invest in—after all, they’re yours! And, when you’re not there, you’re constantly making money from those who are.

The best part? You never have to upload a listing, sweep a floor, or answer a renter’s call at 3 a.m.

Join the waitlist now for the chance to not only build a real estate portfolio from your phone, but win a dream vacation on us here at reAlpha.

We’ll see you there.

DISCLAIMER

EQUITY CROWDFUNDING INVESTMENTS IN PRIVATE PLACEMENTS, AND START-UP INVESTMENTS IN PARTICULAR, ARE SPECULATIVE AND INVOLVE A HIGH DEGREE OF RISK AND THOSE INVESTORS WHO CANNOT AFFORD TO LOSE THEIR ENTIRE INVESTMENT SHOULD NOT INVEST IN START-UPS. COMPANIES SEEKING STARTUP INVESTMENT THROUGH EQUITY CROWDFUNDING TEND TO BE IN EARLIER STAGES OF DEVELOPMENT AND THEIR BUSINESS MODEL, PRODUCTS AND SERVICES MAY NOT YET BE FULLY DEVELOPED, OPERATIONAL OR TESTED IN THE PUBLIC MARKETPLACE. THERE IS NO GUARANTEE THAT THE STATED VALUATION AND OTHER TERMS ARE ACCURATE OR IN AGREEMENT WITH THE MARKET OR INDUSTRY VALUATIONS. FURTHER, INVESTORS MAY RECEIVE ILLIQUID AND/OR RESTRICTED STOCK THAT MAY BE SUBJECT TO HOLDING PERIOD REQUIREMENTS AND/OR LIQUIDITY CONCERNS.

FORWARD-LOOKING STATEMENTS

ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, CONTAINED IN THIS WEBSITE CONSTITUTE “FORWARD-LOOKING STATEMENTS”AND ARE BASED ON THE REASONABLE EXPECTATIONS, ESTIMATES AND PROJECTIONS OF REALPHA ASSET MANAGEMENT, INC. (THE “COMPANY”) AND THE COMPANY’S MANAGEMENT AS OF THE DATE OF THIS PRESENTATION. THE WORDS “PLANS,” “EXPECTS,” OR “DOES NOT EXPECT,” “IS EXPECTED,” “BUDGET,” “SCHEDULED,” “ESTIMATES,” “FORECASTS,” “INTENDS,” “ANTICIPATES,” OR “DOES NOT ANTICIPATE,” OR “BELIEVES,” OR VARIATIONS OF SUCH WORDS AND PHRASES OR STATEMENTS THAT CERTAIN ACTIONS, EVENTS OR RESULTS “MAY,” “COULD,” “WOULD,” “MIGHT,” “WILL” OR “WILL BE TAKEN,” “OCCUR” OR “BE ACHIEVED” AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION, STATEMENTS REGARDING OUR PROJECTED NUMBER OF PROPERTIES, REVENUES, ASSETS UNDER MANAGEMENT, VALUATION, INVESTMENT RETURNS, EXPECTED CUSTOMER DEMAND, AND THE COMPANY’S BUSINESS STRATEGY. FORWARD-LOOKING STATEMENTS ARE NECESSARILY BASED UPON A NUMBER OF ESTIMATES AND ASSUMPTIONS THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY’S MANAGEMENT AS OF THE DATE OF SUCH STATEMENTS, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC AND COMPETITIVE UNCERTAINTIES AND CONTINGENCIES. THE ESTIMATES AND ASSUMPTIONS CONTAINED IN THIS PRESENTATION, WHICH MAY PROVE TO BE INCORRECT, INCLUDE, BUT ARE NOT LIMITED TO, THE VARIOUS ASSUMPTIONS OF THE COMPANY SET FORTH HEREIN. KNOWN AND UNKNOWN FACTORS COULD CAUSE THE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS. SUCH FACTORS INCLUDE, BUT ARE NOT LIMITED TO, OUR SUCCESS IN RAISING CAPITAL THROUGH OUR REGULATION A OFFERING AND THROUGH OUR PLANNED SUBSEQUENT OFFERING TO SYNDICATE MEMBERS, OUR ABILITY TO OBTAIN THE FINANCING REQUIRED FOR THE DEBT PORTION OF THE PURCHASE PRICE OF PROPERTIES OUR ABILITY TO OBTAIN THE DEBT FINANCING REQUIRED TO PURCHASE PROPERTIES, OUR ABILITY TO ACQUIRE THE NUMBER OF RESIDENTIAL PROPERTIES WITHIN OUR PROJECTED TIME FRAMES, CHANGES IN DEMAND, INDUSTRY COMPETITION, LEGISLATIVE, FISCAL AND REGULATORY DEVELOPMENTS, ECONOMIC AND FINANCIAL MARKET CONDITIONS INCLUDING BUT NOT LIMITED TO THE CURRENT COVID-19 GLOBAL PANDEMIC OR FUTURE LAWSUITS. MORE INFORMATION ON THE FACTORS, RISKS AND UNCERTAINTIES THAT COULD CAUSE OR CONTRIBUTE TO SUCH DIFFERENCES IS INCLUDED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING IN THE “RISK FACTORS” SECTIONS OF OUR OFFERING STATEMENT ON FORM 1-A. MANY OF THESE UNCERTAINTIES AND CONTINGENCIES CAN AFFECT THE COMPANY’S ACTUAL RESULTS AND COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED IN ANY FORWARD-LOOKING STATEMENTS MADE BY, OR ON BEHALF OF, THE COMPANY. THERE CAN BE NO ASSURANCE THAT FORWARD-LOOKING STATEMENTS WILL PROVE TO BE ACCURATE, AS ACTUAL RESULTS AND FUTURE EVENTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED IN SUCH STATEMENTS. ALL OF THE FORWARD-LOOKING STATEMENTS MADE IN THIS PRESENTATION ARE QUALIFIED BY THESE CAUTIONARY STATEMENTS. THESE FACTORS ARE NOT INTENDED TO REPRESENT A COMPLETE LIST OF THE FACTORS THAT COULD AFFECT THE COMPANY. THE COMPANY DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, EXCEPT TO THE EXTENT REQUIRED BY APPLICABLE LAW OR REGULATION. THE READER IS CAUTIONED NOT TO PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS.