BNB Mastery Program BNB Hosting Accelerator

The great real estate opportunity of 2020

Start Growing your
BNB Business Today!

Get inside access to our professional courses, hosting community, and much more!

Get Started for FREE

SUBSCRIBE:

SUMMARY:

What real estate opportunities are available in 2020? Find out how to take advantage of a huge opportunity to generate revenue from real estate without upfront capital. 

FREE TRAINING:

Earn a full-time income managing other people’s properties on Airbnb:

FREE TRAINING:

Become a top performing host on Airbnb: 

FREE DOWNLOAD:

Get your free profitability projection tool:

AIRBNB FOR DUMMIES:

Today, I want to talk about the great real estate opportunity of 2020. When we think of the great recession of 2008, we remember that housing prices drop drastically. This was a very challenging time for many, but for others, it represented a great opportunity. You may have been able to buy a property for well below market value, and now you’ve seen the property skyrocket in value over the last 12 years. 

Right now, we’re also experiencing a lot of hardship – many have lost their jobs and are struggling financially. But there are a lot of people who are taking advantage of a huge opportunity that’s out there right now. With this opportunity, you need to be able to identify it early, and be in a position to act on it. If you want to take advantage of the opportunity that’s happening now, you need the right skills and tools. 

One of the biggest opportunities in real estate right now is unique because you don’t need money to get started, but you do need specific skills and tools for it. If you’ve watched my other videos, you know that there’s a huge opportunity with Airbnb right now in 2020. Contrary to what people would have expected, this year has been a tremendous year for Airbnb and other short term rental listings. 

The reason behind this is simple: Airbnbs aren’t as crowded as hotels. So when people are looking to stay somewhere where they can have their own space without people around, Airbnbs offer great value. The other side of it is that there is a lot of domestic travel happening right now, especially in big countries like the US. All the money that would usually get spread across the world in tourism is now staying mostly domestic. The dominating force for the rest of 2020 and 2021 will be domestic tourism. 

So there’s couple different ways to get started with Airbnb. One way is to buy a property to list on Airbnb. Right now, that might not be the best call, because it takes a large amount of upfront capital to pay for the down payment, furnishing the home, and setting it up, especially with the real estate values being up in the air in many markets. It is potentially risky. The other option is called rental arbitrage. That’s where you rent a property, furnish it, and put it onto Airbnb. There are some opportunities for that, and a few companies who have defaulted on their properties that are now available and mostly furnished, and the owners are looking for someone to come in and take over these properties. 

The biggest risk with rental arbitrage is: what do you do it you come across a rough patch, or a sustained amount of time with no bookings? You already paid first and last month’s rent out of pocket, as well as the cost of any additional furniture. Another issue with that as well, is that you’re constantly needing to reinvest your profit for your future listings. There are definitely some potential solutions to these problems, and some work with this model, but just know that you’re carrying a risk and the stress associated with it. 

There is a really great third option, where you manage a property for a percentage of the overall revenue. That means you’re not paying rent, you’re not paying for the furniture or the damage deposit. You’re going to the owner and saying, “I will take care of all the details and day to day management of the property in exchange for a percentage of the overall revenue.” The great thing about this for you, is there is no upfront capital, and no risk. The worst case scenario where the property doesn’t have a single booking (which is very hard to do) is that you’re just at zero, never in the negative. 

The benefit for the property owner is that they get to increase their income. With the right skills, you can boost revenue so that they can make even more than they were before, even though they’re paying you a percentage. If you want to learn exactly how to get started with this opportunity, click the link for free training to check out the step by step process to build your business. 

VIDEO TRANSCRIPT:

What's up guys, it's James here. And in today's video, I want to talk to you about the great real estate opportunity of 2020. Now, a lot of us remember, we think back into the past, we remember the great recession of 2008, you know, this huge collapse of the financial markets, we remember that housing prices drop drastically.

And for so many people, this is a very, very challenging time. Now, for other people, this represents a time of great opportunity, you might be one of those people that was able to snatch up a property for Well, well below market value. And you've seen that property value skyrocket over the 12 years that have followed. Now, right now we're experiencing a lot of hardship. There's a lot of people who are out of jobs, there's a lot of people who are struggling financially right now.

And just as there was in 2008, there are a lot of people who are reaping massive rewards by taking advantage of a huge opportunity that is present right now. Now, the hard thing about this is that it's oftentimes, not until after the fact that most people realize the opportunity that was sitting right in front of them. Also, of course, you need to be in a position to act on the opportunity, you know, just identify that there was an opportunity back in 2008 didn't mean that you were able to take advantage of it.

You needed to be positioned well enough that you actually had the cash set aside, when most people were struggling massively to go in and buy up undervalued properties, you know, fix them up, renovate them a bit, hold them for a long time, whatever it took to make sure that property ended up being a really great worthwhile investment for you. Now, similarly, right now, if you want to take advantage of the opportunity that's happening in 2020, you need to have the right set of skills and tools and really have yourself prepared to take advantage of this.

Now the nice thing about the opportunity that's happening right now, one of the biggest ones that I see in real estate right now is that you don't have to have money to get started, the barrier to entry is not financial, like it was back in 2008. Now, what you do need to have is the right set of skills and tools to take advantage of this. And so I'm going to talk to you more about that. In this video, I'm going to talk about what this opportunity is and how you can take advantage of it.

And so, we all know if you've been sticking around with this channel before, if you've watched my other videos, you know, there's a huge opportunity with Airbnb right now in 2020. You know, very contrary to what most people would expect myself included, this year has been a tremendous year for a lot of Airbnb and short term rental listings. Now the reason behind this is quite simple. Airbnb s are a great place to book that are not hotels are not as crowded as hotels.

So for people that are looking to travel, they can stay in a place where they're going to have their own place and not be near other people. Now at face value, you think, Okay, well, that's great, but people still just aren't traveling James. So it doesn't matter if it's a better place to travel to than a hotel because people aren't traveling at all. Now, I would have expected the same. But the reality is actually quite different from that. The reality is that there is a lot of domestic travel happening right now, especially in big countries like the US who spend billions and billions and billions of dollars on tourism every single year. And typically, that money would go all over the world for tourism.

But now it's very much domestic tourism, we're seeing a lot of people staying within a couple hundred miles of their home, because they don't want to hop onto a flight or quite frankly, they just can't. And so they're choosing to travel very close to home, that's going to be the dominating force for the rest of 2020 and into 2021. Now, if you want to get in on that opportunity, then the formula is quite simple. You know, there's a couple different options for how to get into Airbnb. One is to buy a property for Airbnb, now, markets are going crazy real estate values are up in the air.

And so buying a property might not be the best call, especially because it takes a huge amount of upfront capital to pay for that downpayment, get it all furnished set up for Airbnb, that's going to potentially be pretty risky. The other option is what's called a rental arbitrage where you rent a property and furnish it up and put it onto Airbnb. Now there are some great opportunities for that there's a couple different large companies that do this, like for example saundra that some of you may have heard of, that have started defaulting on a lot of their properties, because they just weren't able to hold those properties hold on to them.

And so they've left properties that the owners really want someone to come in and take up those properties. A lot of time they even still have furniture in those properties because they were just flat out abandoned. And so as a rental arbitrage operator, you can go in and take advantage of that opportunity and rent up that property. Now the huge risk here is that hey, what if you do come across a rough patch in your hosting What if you do have a sustained amount of time without bookings? Obviously that's what Sondra and these companies were experienced.

thing that led them to default on the properties in the first place, not to mention the fact that you have to go out of pocket for the first and last month's rent, as well as any additional furniture that's needed for the listing. Now, this can be a good model, and people can do well with it. If you're, you know, quick to find solutions to problems, like for example, having longer term bookings, when the pandemic first hit, you know, those are some potential solutions, however, you still are carrying that risk and the stress associated with that risk with you as you grow.

Now, the other challenge with this whole business model is that you have to keep reinvesting your profits in order to grow the business because you're going to take those profits and invest them into first and last month's rent plus furniture for another listing. So for all those reasons, I don't think that rental arbitrage personally is a strategy that I would ever pursue I have in the past. And I wouldn't do it again, for those reasons. And I don't generally recommend that most people get into it.

However, if you do want to get into Airbnb, and you don't want to do it through buying, and you don't want to do it through the risky model of rental arbitrage, there is a really great third option as an option that's actually fantastic right now and booming with demand, because a lot of people are opening up their properties for Airbnb and opening up for the opportunity of having a property manager for a couple of key reasons. So what is this opportunity?

What is the third chance that you get? What is the third model you can use to get into Airbnb that doesn't require the risk and doesn't require the upfront capital? Well, again, if you're not new to the channel, if you've seen any of my other videos, you would have heard me talk about a lot. It's Airbnb property management.

This is where you manage a property for a percentage of the overall revenue, meaning you're not paying for rent, you're not paying first month's or last month, you're not paying for the furniture, the property owners taking care of all that, you're just going to the property owner and saying, Look, I'll take care of all the details all the management of the day to day in exchange for a percentage of the overall revenue. Now the great thing about this for you is that there's no potential downside, there's no upfront capital, there's no risk, the worst case scenario and your worst possible month, you would just be at zero.

If the property brought in Not a single booking, which is really, really hard to do, you would still never go negative the way that you could with rental arbitrage or home ownership, because you have those overhead costs of your rent, your mortgage, utility bills, internet, things of that nature. So that's a really, really great model to get started. Now the huge benefit for the property owner is that they get to actually increase their income. Now this seems a little bit counterintuitive, because they're getting a percentage of it to you.

But if you know the right skills, in order to optimize the performance of the listing, you can actually boost that up and help them to make even more money than they were without you. Now again, if you want to learn exactly how to get started and that, you know having no experience with Airbnb, or maybe even a little bit of experience with Airbnb, wherever you might be starting at, there's a link down the description below to a free training where you can check out the step by step process that I use to do this and build this business from the ground up having never even stayed in an Airbnb before.

I started with no experience about four and a half years ago. And I built up the business really quickly to be a very successful nice lifestyle business. So if you want to check that out, just check out the link in the description below, you can go through that free training and see me walk through step by step how to do this, and how to do this in a way where you're adding a ton of value to the property owners that you work with. That's at the core of all of our business philosophies, honestly, and all of our business strategies is really being able to deliver a massive amount of value to property owners. Now, there are a ton of property owners right now that need this service.

Because one of the great things about Airbnb is that as things do start to rebound, there's going to be a huge opportunity for people to recap money on their properties that they've lost over the last four months with having it sit vacant, if it was a traditional long term rental. There's also a lot of property owners right now that are living outside of their hometown. You know, they're traveling to places that are cheaper to live because they can so many people have remote work right now.

So we're seeing a big influx of people that are reaching out to us and saying, hey, look, I'm moving down to South America for the foreseeable future, and need someone to manage my property up here because I'm not going to be nearby. That's a really, really big opportunity if you're into managing properties in a specific area. And you can help property owners to do that. And so there's also a lot of property owners that want to have their property on Airbnb and short term rental but don't want to have the risk of having these rental arbitrage people default on the rent, and then having to take all that risk without actually reaping any of the upset at the reward.

Nice thing about this for the property owner is they're not locked into any long term commitment. They don't have to wait on the property on the property manager the rental arbitrage to make money and to pay them every single month. They just have bookings coming in from Airbnb consistently. So as long as the property is getting booked, they know that they're getting paid. There's a huge amount of advantages. We talked about all them in more detail down the train that's linked down below as far as the advantages for the property owner that make this a total No brainer for them. Now like I shared, as you can see with this model, you can get started in it and get into it without any upfront capital. But you do need to have the right tools, there's a right way and a wrong way to build this business.

And if you want to get certain you want to be able to look back at 2020 as a year of massive opportunity and massive upside for you, you need to make sure that you really hone and refine those skills, so you can skyrocket over the next year. The next year here is going to be looked at by many as a time of economic turmoil and a lot of hardship and challenge. But for the right people who are in the right place at the right time, and are prepared to take action. They're going to look back and see this upcoming year as a year of massive, massive opportunity.

Already we have students all over the world who have been having their best years ever on Airbnb, so many people are so stuck in thinking that Airbnb is dead and short term rentals are dead and tourism is dead. But they're just missing this massive opportunity where hosts are making incredible returns on their properties just from longer term bookings and domestic travel and housing health care workers that need housing, there's a lot of opportunity, you just need to know where to look for it. So if you want to get started in this, you want to start taking advantage of this then just check out the link down below to the free training. And I'll see you on the inside. Until next time. I'll see you in the next video.

Expand

Get Started for FREE!