If you wanted to get into real estate before, you would have to keep saving until you had enough to put down on a property. Usually, you would put down 15%, and the rest you would finance, then find a tenant so you can collect rent. This process would be rinsed and repeated. I guess the goal was to keep doing this for about 20 or 30 years until you had enough passive income to live off for the rest of your life. But, because of technology, you have more options available today, the most trending one being slipping beds on Airbnb. Today, you will learn what this means and how to get started on this trend quickly. Let’s continue…
So, the actual terminology for this business model is rental arbitrage. What this means is you would pay for a property long-term, then list it on Airbnb and hope you would make enough to pay it off. Then when you sell it, you can make a significant profit from it, or you can keep renting it out. You also have another option: rent out a nice little condo for around $1500 a month and get permission from the owner to list it on Airbnb as a short-term rental. If the owner does allow you to list it, you can list it for anything above your initial rental price, which will allow you to pocket the difference. For example, if your rental is $1500 and the Airbnb price you list it for is $2500, you would pocket $1000 per rental. (minus your expenses)
I mean, if you think about the time and effort you would put into the traditional real estate deal, the Airbnb model is much more rewarding and enticing for people to get into…right? No wonder so many people want to get into flipping beds on Airbnb. But, if you ask me, this seems way too good to be true…doesn’t it? It just sounds way too easy. Next, is this stuff even legal? Well, supposedly, if the property owners are ok with you renting it out as short-term on Airbnb and you get it in writing, then yes, for sure…this stuff can work with some hard work.
Now, let’s talk about the major elephant in the room. How will you get property owners to permit you to use their property as a short-term rental? I mean, you will be making more than they do just doing the traditional rental..right? Also, I’m sure these property owners would be worried about the wear and tear of some college kids renting it for the weekend and having a party. Or something crazier happening which would put your property in the news…lol. Anyways, I and many others believe these two factors would be the hardest about this mode, and anyone who tells you differently is full of crap. However, the question is, with everything said and done, is this thing doable? Well,
Yes…but it is going to be tough. Several Airbnb businesses have been built using rental arbitrage. If you have a good sales pitch, are focused and work hard, I’m sure you will be able to close a few properties. But this is the least of your worries because I heard Airbnb will be cracking down on this. Also, after some recent incidents, Airbnb is setting a bunch of new rules that make it more complicated for people to rent properties, which will directly interfere with your business.
Anyways, with all that said and done…one way to get property owners to agree with you is by making it rewarding for them, too…for example,
Instead of saying you will rent their property for 12 months, you can offer to rent it for 24 months for a higher price. Also, keeping the property as clean and neat as possible is in both of your best interests because people will be interested in renting it on Airbnb. Oh, and to top that off, you are protected somewhat by the $1 million liability insurance offered by Airbnb. Finally, if the property owner is still unconvinced, you can offer them a rev share or something (you guys would have to work that out).
Now, if everything is clear for you, you have to consider another downside (if any). For example, I did some research and found some training offered by my marketing gurus who are in this business and can show you what to avoid. But, they have a $5,000 price tag on the training to walk you through everything, like the staging, marketing, etc. So, it seems like too much of a headache compared to the other online training, including my favourite one, which you can learn by clicking the orange button below.
TRENDING: That’s Why We Do Virtual Real Estate
I have spent my life reviewing thousands of programs, courses and spoken to coaches worldwide to help you make the RIGHT choice when starting your business. And here’s what I’ve LEARNED and why I HATE many of the programs out there!