$100K in 90 Days?! Building Equity in Airbnbs

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What's up guys, it's James here. And in today's video, I'm going to show you how you can make $100,000 in just 90 days. Now I know that's a big promise. And there's a couple little caveats to that. So I don't want anyone grilling me in the comment section here and roasting me about this because this is a legitimate way to do exactly what I just stated. But there are a couple of caveats and I'm warning you about that upfront. But if you stick with me through the video, I'm going to walk you through the whole step by step process.

Now, for anyone who is interested in investing in properties for Airbnb, I highly recommend that you schedule a quick call with me down in the description below, click the link schedule a call with me. And we can talk more about how you can deploy the strategy that I'm about to talk about in this video into your own investing and achieve a similar result. So that is out of the way. Now let's talk about how we can follow up this big claim of being $100,000 in just 90 days.

Now that's obviously a lot of money to make a 90 day. So how do we do it? Well, it's through something called the birth strategy be AR AR AR AR AR lots ours on there. And it stands for buy rehab, or renovate, rent, refinance, repeat for Rs. There they are. Okay, so what does that actually stand for? What does it actually mean? Well, if you're not familiar, let me walk you through it.

When I recently did on a property that we purchased for $520,000, as we went and bought a property that really needed renovation, I'm talking blue carpeting I'm talking this carpeting was spray painted, I'm talking about plays hadn't been renovated. In years, it really needed work, when you walked into the place, it smelled. So that property is not very desirable to a lot of people until it's gotten a big, faceless and a lot of renovation. So what we did is we bought this property for about 520,000. Well, exactly $520,000. And then what we did is we then went in and we renovated the property.

Now on the renovation, we spent about 60 $70,000, let's call it $70,000 to be on the conservative end, because we ended up spending about $80,000 total, but a bunch of that went to furniture. So we had furniture, we had a hot tub, a sauna we put in. And so that stuff is not going to count towards the renovation, because that's not going to increase increase the value of the property that was strictly for the uses in Airbnb.

But let's say we spent $70,000 on the renovation in total, to buy the property for $520,000. And then we spend another $70,000. Let's just even include all the furniture and call it $80,000 to keep the numbers round. So that all in we've now got $600,000 into this property between the purchase price of 520. And the renovations of $800,000.

Now, an interesting thing happens when you go in to renovate a property. A lot of people will talk to me and they ask you questions, I posted another video where we talked about this whole strategy. And a lot of people reach out and they're thinking, Well, you know, what, if you buy a property for $520,000, and you put $80,000 of work into it, well, then now it's just worth $600?

Well, no, not quite, that's actually not how it works. Because you have to remember that if that were the case, if you could buy a property for $520,000, and then put $80,000 to the work into it. And now it's worth 600 $600,000 no one would ever buy that $500,000 property that $520,000 property, they will just wait until someone else came and did all the renovation for them, and then buy it from them. But then there wouldn't be anyone to buy and do the renovation because why would they possibly want to do that?

Why would they go and buy a property and then renovate the property, when they're not going to make any money doing it, they would just spend months of work and put up a bunch of risk premium buying this property financially, they'd have to go and buy it everything else spend all the money just so that you could break even that wouldn't make any sense. And so naturally, people value properties that are fully renovated much more highly than they value properties that need renovation work.

People want to buy turnkey properties, people value them more the market deems them more valuable. And so if you go and buy a property for $520,000, and you do $80,000 of that renovation work, then good chances are it's going to be worth more than $600,000 when you go to sell it or if you go to the bank and try to refinance it. Now how much more than $600,000 is going to be worth Well, that depends on the renovations that you've done. If you go in and you do a bunch of renovations on stuff that people don't care about, like let's say that you turn that garage into a bedroom that's not really going to add value to the property because a lot of people want that garage to be a garage where they can park their car.

So that would be a non strategic renovation that might have merit for something else you're trying to do if you're trying to turn into an air b&b and sleep more people that say, but it's not gonna actually add value in the home or if you go out and overland scape the heck out of it. Maybe you put all $70,000 of that investment into a pool. Well if people don't want pool in that property and that doesn't necessarily improve the value of that property.

If you still if you have a property that's got blue spray paint and carpet and still looks like crap smells like crap and it's got a pool in the backyard, it's not suddenly now a $700,000 property, it's still just a $520,000 property with a pool, right? So you have to be strategic about the about the renovations that you're doing. Now in our case, we went and we renovated the kitchen, we renovated the bathrooms we renovated the whole gutted the inside of it got rid of all that carpeting, put down some nice laminate flooring, nice inviting, sorry, sorry, vinyl flooring, not laminate.

So nice, luxury vinyl plank, we went and redid the bathrooms redid the kitchen, we finished the basement, which is really great. I mean, it made so there's three more bedrooms in the basement we added and really nice kind of theater area in the basement. So we made this property that was 3000 square feet total. But only about 15 100,000 1500 of those square feet were actually usable when we first bought the property because the basement wasn't finished.

Now all 3000 Square Feet are usable. Do you think that a new buyer cares about that? Well, absolutely, it means that the property is has twice as much of usable space now. And you can also do things like renovating an attic or adding an addition onto the house, you know, all these things are going to add strategic value to the property.

So now we're going to get that property reappraised. And that appraisal is coming out to about 707 or $20,000. So that means that in 90 days, that's the total amount of time for the renovation we actually did in about two months, it was actually very, very, very quick that we did this renovation. But typically a renovation like this would take about three months, we just managed to get everything kind of really go in our favor. And we stayed even ahead of schedule on this project. But in 90 days or less, we're able to now add $100,000 in value to the property. And so you can make $100,000 in 90 days really cool.

Now, do I actually have $100,000 more in my bank account? No, because I am holding on to this property. So I don't get to reap the rewards of that equity right now. In fact, if I were to go and actually sell the property, I would also have to pay closing costs. So I'd have to pay the realtors Commission's that have to have those things coming out of my paycheck. So in reality, if it was $720,000, then in that case, I might end up with about $100,000 in profit, more than likely, I'm probably going to end up with closer to $80,000 in profit on that property.

Now, I'm also gonna have to pay tax on everything else. But that is a gross profit of $100,000, roughly, in a total of 90 days, if I were to go and sell the property, now the best burst would also work is flipped. So that's how you know you've got a really great burn on your hands. But instead of doing that I'm actually holding on to this property, it's now worth about 707 or $20,000. And it's going to continue to appreciate regularly at about two to 3% we can say per year until I go to sell it now it might appreciate more than that it might have some down years in it as well, the market starts to drop.

But I'm planning on holding this property long term. The reason why is because of this property is now cash flowing $40,000 a year for me having it listed on Airbnb, and I was able to pull all of my initial investment for the furniture, or sorry for the renovation costs and for the down payment closing costs back out of the deal. So I can use that to buy the next property. So all that's really cool.

That's basically how it works. If you have questions, if you want to learn more about this strategy, how you can do this for yourself, then just click the link down below schedule a quick 15 minute call with me. And I'd love to talk to you more about how we can help you to deploy this exact same strategy in your real estate investing and making your $100,000 pay day in 90 days. If you do things properly.

That is we're going to walk you through how to find the right deal, how to analyze properties, find properties that are a really great potential candidate for this type of strategy or whatever other type of strategy you want to use investing, but overall just how to invest in short term rentals strategically so you can get a great ROI. So if you want to learn how to do that, if you want to work with us directly to have us hold your hand and do that, then there are still a couple of spots left, we've only got a handful of spots left, that we're going to be working with students in a private mentorship program.

So if you want to grab one of those last few before they're gone, and no, this is not fake scarcity. I'm serious. There's a really small group because we want to be able to give really high level individual attention each student in the program, so we're only letting a few people into this intimate mastermind group that we're starting up. So if you want to grab one of those last spots that we've got available, then just click the link down below, schedule a call with me and we can get you in there before things close up.

So I'd love to work with you. I'd love to chat with you more about how we can maybe make that happen. Click the link below schedule a call. As always, if you liked this video if you got value from it if there was a moment in this video where you went, Oh, that's cool. Thanks James. Then just show me that by clicking the like button, hit that like button, give me a thumbs up it does help me out tremendously. So even if you hated the video, then just like it anyway because it doesn't cost Anything and it creates good in the world, and you're going to be rewarded with eternal riches. And all the best things in life are going to flow to you directly if you just press the like button.

So press the like button, give me a thumbs up helps me out a lot. Please do that. And last but not least, if you have not yet subscribed to the channel, what are you doing? What are you waiting for it, you're here, you listen to me for the last 10 minutes. Clearly you like either my face or my voice or the stuff that's coming out of my mouth right now. So just click the subscribe button so you can get more of all of that we post two of these fun little videos every single week on this channel and I've been doing that consistently for over a year now.

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