How to SCALE Airbnb Investing

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What's up guys, it's James here and in today's video, I want to talk about how to scale your Airbnb investing. Now in this video, I'm going to talk touch on a few different key components that are going to allow you to scale your Airbnb investing to 510 however many properties that you want, so that you can really scale your cashflow up and be earning 10 2050 $100,000 a month from your Airbnb portfolio. Now, in order to do that, you really need to have a few different pieces of the sort of pipeline, so to speak, really dialed in. And so I want to touch on that and share different strategies for allowing that to be set up the right way so that you actually can scale things. Before I do that, before I dive into that, I just wanted to like, let you guys know that there is a free training link in the description down below, that's going to walk you through step by step by step exactly how we invest successfully in short term rental properties. So if you are interested in getting started or scaling your Airbnb investing, I highly recommend you check out the link in the description down below, it's also going to share you some tools that are going to help you to get started on the right foot. And really just help make sure that you don't make any mistakes along the way. So that you're not wasting time you're not wasting resources, you're not losing money, because that's obviously the worst case scenario that we want to help you avoid. So if you're interested in that at all, just make sure you click the link in the description down below, register for that training, get yourself a spot before it is too late, make sure you grab that that's going to be super, super helpful. So with that being said, let's jump into it and talk come just from the top of the funnel to the bottom of the funnel. And what I mean by that is that like when you're investing in short term rental properties, I like to envision it like a funnel where at the very, very top of the funnel, you have your deal flow actually finding properties to invest in. And at the bottom of the funnel, it's your systems for actually managing the ARV means that you do acquire properly profitably. And so right through all the way through from the top of the phone to the bottom, you need to have things dialed in if you're going to be able to scale. And so at the top of the funnel, you need to have your deal flow dialed in if you're going to be scaling your Airbnb investing, because obviously, if you're only looking at a few deals a month, then you're not going to have the amount of deal flow, you need to actually acquire more properties as you scale. So you need to have a few different ways of getting deals. One is by either expanding your geographical area so that you can have more access to more properties, or expanding the sort of sources of deal flow that you have in one given market that you're investing in. So for us, we don't like to expand our geographical area to too much because it does make things a little bit more challenging down the road. If you are working as your own property manager, if you're managing property yourself in house, that it does pay to have property centrally located. So you're really just managing one clean team, one guest communication team, one maintenance person, that sort of thing, it just scales a lot more nicely. It's the same reason that I recommend to the people that I work with helping them scale their property management companies, I tell them make sure that you really just focus on scaling in one single geographical area, before you actually go and look to a second, you really want to get to 1015 20 properties before you go and expand into a new area. And so you have an option, if you're going to be be managing the properties yourself, you really will want to work in one area. Whereas if you're managing the properties with a property management company, it really opens up the opportunity for you to then expand and purchase properties really wherever you want. As long as there are good management companies in that area. Now I work with students that do both I have a student I work with now who has just locked in his fourth property under contract after about four months of working with us five months of working with us. And he has all the properties managed by professional management companies he's got his own business wants us to be completely hands off completely passive. And he really just made sure that he was getting good deal flow by expanding geographically and looking in all sorts of different areas. Now, that's one way to do it. And then the other way is just to like I said, increase the source of your deals. So for example, if you're in one single area, you can't rely on just on market properties, you really then have to be on wholesalers list. So you can get those deals, you want to be doing some off market property property buying and attraction so that you can attract some off market deals. So that way, you just have a lot more deal flow. And ultimately, it allows you to be a lot more selective with which deals you are going to pull the trigger on. So you can buy the best possible properties. So that's the very first top of funnel pieces that deal flow component. And again, if you want to know more about our strategies for exactly how to buy off market properties, all these different aspects, you know, hire the right property management company, whatever it might be, then just make sure you check out the link in the description down below for that free training. It is going to walk you through everything step by step. And then from there, you now really need to have your criteria dialed in. So make sure that you have really crystal clear criteria and that you have the tools to be able to analyze properties effectively so that you make sure they are meeting those goals. criteria, the biggest piece to scaling, I always remind people that even more important than making money is ensuring that you don't lose money. Because when you're scaling your portfolio, you're scaling your net worth, you're scaling your wealth. If you lose money, it sets you back disproportionately, right? If you have $100, and you lose 10%, you now are at $90. And that means you have to gain more than 10%, just to get back to breakeven, because gaining 10%, or $90 would only put you back at $99. Right? A lot of people don't think about that. So if you lose money, it really sets you back, it really delays, things slows things down. So you just need to make sure that you have your analysis dialed in. So you're getting all winning deals. And the more you know, the bigger winners those deals are, the more that's going to fuel your ability to reinvest that capital and that cash back into scaling your portfolio, scaling your net worth and scaling your monthly cash flow. Now the other PCF dial, then next on on the list is going to be your financing. So how are you actually funding the deals is one thing and then also, how are you financing the rest because good, chances are, you're not gonna be buying all these properties in cash, you will either be using using traditional financing, or you'll be going TO to a short term rental property sort of financier, so you're going to be going to a lender, for example that specializes in Airbnbs, and will lend based off the income. Again, I've talked about these different options as well and another video on this channel in great depth, and we cover them as well in the train, it's linked in the description down below. But one of the best and one of my favorite kind of methods for really scaling an Airbnb portfolio when it comes to financing is to do joint venture partnerships, joint venturing with people is basically where they're going to put up the money and the mortgage, and you're going to be the expertise. Now in exchange for that it means that you're going to get 50% stake in the property or more, as well as the 2% or more of the cashflow. And they're going to put up their own money, they're going to take care of the financing within a lender. And so you don't end up getting capped out because you can always work with multiple joint venture partners. And as you grow and as you scale, you're going to find that even more and more people are coming to you wanting to do deals with you. So it just gets easier and easier as you go along. And so that's really the next stage is that financing component, then from there, you need to have your team set up so that you can do any renovation work that needs to be done, and make sure the properties get set up effectively. So that just really means having a bullet proof step by step system for getting the property from purchased to listed and as short of the timeframe as possible. Because obviously, after you purchase a property, you're then paying the carrying costs on that property. So you really want to limit that timeframe from when you purchase it and close the deal to when you list it to be really three months at the top. And if you're doing a big renovation, it really should be limited to about three months. But if you're not doing renovation, you're just furnishing and listing it, then you should have that down to just a few days or weeks. And so you really want to shorten that timeframe. So that again, you're not losing money as you grow, because losing money is really really bad, right? It obviously it should go without saying that's bad. But a lot of people I find just underestimate how much that loss actually ends up costing them, and the opportunity costs and the delay everything else. So that's kind of the next piece of your funnel is just making sure that everything gets set up properly, then the next piece that you're going to want is management. So management is really just going to mean that once you scale, as you grow, there are some things that are going to get easier, and some things that are going to get, you know, a lot more difficult if you don't have the right systems in place. So for example, cleaning, maintenance, those things should if you have the right system set up, get easier as you grow because you then have more work to give your teams and that should make them even more motivated, even more reliable and even more dedicated to just working with you. If you think about it, if you're running a cleaning team, or if you're a handyman, and you know, someone comes along, and they've got a few hours or the work for you per week, that's, you know, that might be attractive, but it's not the biggest deal in the world. It's not a huge win. Whereas if someone comes to you, and they say, Hey, look, I've actually got near full time work for you to do that's attractive, you're gonna give them more attention, you're gonna give them more care, you're gonna make sure that you impress those people. And so if you have the right system set up, then you are going to have things get actually easier as you scale for a management perspective. But if you aren't organized and you can't dial things in well and make sure that everything's being done efficiently, then all those little mistakes that you make with one property get multiplied every time you add another property portfolio. And usually it's actually even more than just a direct multiplication because as you start to scale things, it gets even messier if it was already messy to begin with. So just making sure that you have the proper systems for actually managing everything or for selecting the right management team. If you are going to be outsourcing management working with a property management company, you need to make sure that that company is dialed in because there are lot of companies out there that don't do a great job that aren't going to manage your property effectively, and you aren't going to have the time to really dig in and do proper due diligence on every single thing they do, every single month, you want to front load that do the due diligence, right at the very beginning to make sure they're good people, and they're gonna do a great job. So that way, you don't have to be sort of micromanaging and really scrutinizing over everything they're doing longer term, because you trust them, and you know that they're going to do a great job. And the last piece is really just going to be optimizing the portfolio, that's the next really kind of big opportunity there is that so many people that have a few properties, for example, I started working with a student a few months ago, and he had nine properties. And none of them were fully optimized, there's a whole bunch of opportunity that was just really low hanging fruit, because taking one property and optimizing it can generate an extra 1020 $30,000 a year, when suddenly you have nine, that can be hundreds of 1000s of dollars a year just by optimizing the properties further and making sure that they're dialed in and performing as well as possible. So once you have all those things dialed in, that really is going to allow you to scale your Airbnb investing and scale it in a way where it's not adding a whole bunch of additional work onto your plate. You know, one of the things that I always look for is that whenever we're growing and we're investing in more properties, we're scaling. And this applies to our investing. But it also applies to any business I'm running, I always want to make sure that everything is really dialed in before we grow. Because when you grow, things tend to break, things tend to get more complicated. If there are any mistakes that you're making any issues you have, when you're smaller, they're only going to get amplified when you're larger. So you really want to make sure that you have all the systems dialed in before you grow and have those mistakes that are going to cost you money and cost opportunity along the way. Again, if you want to shortcut that whole timeline, if you want to start right out of the gate with the exact right systems and make sure everything is super dialed in before you get started, then I highly recommend you check out the free training is linked in description down below. That's going to walk you through absolutely everything from start to finish. And really make sure that you get a good grasp of exactly how to run this type of business successfully. Make sure that you're investing in the right properties, make sure that you have the right financing strategy set up make sure you've got the right deal flow you're you know, analyzing properties properly, managing them, setting them up optimizing everything from start to finish again, all that is completely free at the training that's linked in the description down below. And we're even going to give you some tools like our analysis spreadsheet that are going to help you to do that again all that completely free. So make sure you check that out again link is in the description down below. If you liked this video, make sure you hit the like button give it a thumbs up it really does help me out tremendously with growing this channel and helping more people to invest and manage properties on Airbnb, so make sure you hit that like button. Also make sure you subscribe to the channel if you haven't already I post two new videos every single week on this channel have been for years now. So if you're interested in learning more about Airbnb investing area management, then I highly recommend you hit that subscribe button to stay up to date. And then last but not least make sure that you let me know if you have any questions, any comments, any thoughts? Anything at all you want to share you want to chat about just let me know in the comment section down below. I hope this has been really helpful. I hope has been valued for you and I hope that you have a fantastic rest of your day. I'll see you in the next video.