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How to make money in REAL ESTATE in 2020

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SUMMARY:

Are you looking to make money in real estate but don’t know where to begin in the current climate? This video talks about a massive opportunity that has come up and how you can get started with no money!

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The opportunity that I want to talk about in this video is specifically about Airbnb and what I have seen over the last couple months. I know you’re thinking that’s crazy when tourism is at an all-time low.  You’re right – it’s not an opportunity everywhere.  It is a huge opportunity in a few places in the world, including the United States. 

That is because tourism has largely bounced back in the United States, but it is limited to domestic travel.  Americans are the world’s second largest spenders on tourism – every year they spend about $144 billion. That normally is spread throughout the world, but with COVID-19, American’s cannot travel internationally.  They’re spending that money at home.  

Airbnb is seeing a surge because a lot of travelers do not want to go to crowded hotels and stay next to a bunch of other people.  They want their own space where they will not be interacting with others.  In fact, the number of recent bookings on Airbnb in the US has actually surpassed the numbers from 2019. 

To add to this, you are also seeing people wanting to book places to work from.  People cannot go into the office but their home is inadequate to work out of and so people are booking longer-term stays at properties they can use for work.  There’s also large families with both parents working from home and there’s not enough room for everyone in the same household.  So they are finding a larger place on Airbnb for 30 or 60 days.

Another factor is that the supply has gone down dramatically in 2020.  When the pandemic began, a lot of people transitioned their properties to long-term rentals or sold their properties.  That creates less overall competition for those whose properties are still up on Airbnb. So not only are properties being booked out, they’re getting booked for higher nightly rates.  

I have done a bunch of research in different markets and I have seen the average daily rates steadily climb over the last couple months.  So there’s a huge opportunity to get started with Airbnb and there’s a few different ways to do it. 

You could buy a property, furnish it and list it on Airbnb.  If you have some money set aside for a down payment, renovation and some furniture, that can be a really good option right now. Assuming this trend continues, you will have a really great return on your investment.  Another way is to rent a property, furnish it up and flip it on Airbnb.  I don’t typically recommend that because you are taking on risk but not building any equity. 

The third option is the best opportunity right now because there’s a big demand for it in the Airbnb marketplace.  It’s called Airbnb property management, what we call the percentage management fee model. There’s a link above to free training where we go step-by-step for how you can get started managing others properties.  It’s a brand new training I put together specifically geared towards what is going on right now. It goes into the different services you can offer and how to automate and outsource all the day-to-day operations. I’m also going to show you how you can manage properties remotely from anywhere in the world. 

Basically, what you will do is manage people’s properties for a percentage of the overall revenue. Property owners want someone to turn the work over to, to take care of the pricing, guest communications, organizing the cleaners and all of that. You’re saving them time and often you can help them make more money because you can do things to increase the overall revenue of the property. Property owners may also want their property on Airbnb but do not know how to do it and do it well. 

What this also means is that because you get a percentage of the overall revenue, you have no risk. The worst case scenario is that the revenue drops to zero and you make zero but are never losing money. I work with hundreds of property managers all over the world. There’s a huge amount of opportunity here and if it is something that you’re interested in, click the link above in the description. 

VIDEO TRANSCRIPT:

What's up guys, my name is James and in today's video, I want to talk about how to make money in real estate. This is going to be a video where we talked about one of the best ways to make money in real estate right now in 2020, with everything going on the way that it is in the world right now. So a lot has been turned on its head recently when it comes to real estate when it comes to investing, when it comes to really just about anything business related A lot has changed over the last six months, as you already know.

And so the strategies have changed for how you can make money in different business models, different industries, such as real estate, I want to talk about one of the best opportunities right now that honestly has been created purely from everything, all this craziness going on in the world. And that is stemmed from it and it's created this massive opportunity in the real estate space right now I want to talk about that and show you how you can actually get started with this real estate opportunity without any money.

Now there are different strategies you can apply here so you can do them where you are buying properties or renting cars. phrase. But I also want to talk about a strategy where you can make money in real estate right now in 2020, without having to buy rent furnish any properties whatsoever, and how you can do it without investing any of your own money into the real estate itself. So let's just dive right into it. The opportunity that I want to talk about in this video is specifically about Airbnb and this opportunity that I've seen over the last couple months.

Now, I know what you might be thinking, James is, that's crazy. How can Airbnb possibly be an opportunity right now in 2020, when tourism is an all time low, and you're right, it's not an opportunity everywhere. But there are a few places in the world where it is a massive opportunity, the main one being the United States, right in America. And the reason that's a really huge opportunity is because tourism has actually bounced back largely in the United States. When we're talking about actual domestic travel. The amount of money being spent in America on tourism is absolutely huge. Right now.

Now I've discussed this a little bit in a previous video. But basically what's happening right now in the United States is that Americans, like everyone else in the world can't leave their own country, but they can travel domestically. And as you may know, Americans are the world's second largest spenders on tourism. Every single year in the global economy, they spent about 140 $4 billion every single year. Now normally, that spending gets spread all over the world, they're gonna go and spend in all other parts of the world wherever they might travel to.

Right now, Americans can't travel to any other countries internationally. What they can do is stay within their home country and spend that hundred and $44 billion at home. And that's pretty much what they're doing right now. They're taking a whole bunch of that spending, and they're allocating it within the US because they're wanting to get out of their town, but they're not wanting to hop on flights because they can't travel internationally. And a lot of them don't even want to hop on a domestic flight. They want to drive somewhere and so what we're seeing is hyper Local travel and a lot of that tourism is going into Airbnb.

The main reason being that a lot of travelers don't want to go to crowded hotels and stay right next to a whole bunch of other people. They want to be in their own space that they know they're not going to be interacting with other people. And so what's happening is you're seeing in all kinds of markets all over the United States. Demand for Airbnb properties is absolutely surging right now. In fact, we've seen in recent months of 2020, the demand for Airbnb s and the number of bookings on Airbnb in the US has actually surpassed the numbers from 2019.

We're actually seeing we're on your growth in Airbnb bookings in the US at a time where everything shut down seems so crazy and most people are totally blind to this. You're actually seeing a number of headlines in the media, but for the most part, people are not really aware of what's going on. They don't really believe it. Now, it seems kind of counterintuitive to think that Airbnb will be booming at a time like this. So what's happening is that Americans are one To travel, but they're not able to travel domestic or travel internationally. So they're traveling domestically, typically within a couple hundred miles of their home so they can drive there.

And they're booking Airbnb s as opposed to booking hotels so they can stay further away from other people. We're also seeing, adding on to that stockpile of opportunity is that you're also seeing people wanting to book places to work from, you're seeing people that can't go into the office, but their home is inadequate to work out of, you're seeing people booking longer term stays 30 days, 60 days, longer term stays at properties near them where they can go and work out of, or you're also seeing larger families that don't have enough space for their kids to be home and both parents to be home working from home, everyone in the same household.

And so they've decided, hey, for the next 30 days, the next 60 days, we're going to go and book a larger home with a bit more space, a backyard so that we can live there and we can work out there and be a bit more comfortable to see all these different reasons for people booking travel domestically. And so in a country like America, where there's a huge population it spends a ton on travel and tourism every single year normally, that creates a massive, massive, massive opportunity. Now, as if that wasn't enough, as if the demand going up wasn't enough.

You've also seen supply go down dramatically over the last nine months. Because when everything first started to go crazy in the world, a lot of people transition their properties to longer term rentals or sold their properties. For whatever reason, they couldn't afford to have down months, whether it was because they were over leveraged because they bit off more than they could chew, or they just weren't comfortable with that amount of uncertainty. They transition those properties away from Airbnb and on to long term rental platforms, or they just sold the properties all together.

And so what you've seen is that in most markets around the US, you've had a pretty steady increase of number of properties on Airbnb, you know, as demand keeps going up year over year, you're seeing that more and more people are putting their properties onto Airbnb because there's more and more of an opportunity and then all of a sudden Airbnb to crash and so what happened is a ton of People left Airbnb a ton post took their properties off Airbnb. So in a city that just arbitrarily speaking, used to have 100 listings on Airbnb, now they only have 70. And so those 70 units are left with less overall competition. And initially, that still wasn't that great because demand hadn't popped back up.

But now we've seen demand search, there's more than 100 people looking for listings. And so there's even less than 100 people who add listings on Airbnb and even more than 100 people again, just arbitrary numbers here looking for properties on Airbnb because that demand has gone up dramatically over the last couple months. And so what you're seeing is that not only are properties getting booked, but they're getting booked for higher nightly rates, people are able to increase their prices drastically, because their properties are in higher demand.

There's a surplus of demand, not enough supply too much demand cause an increase in price simple economics, you don't have to be you know, have some some fancy degree to realize that that's what's gonna happen is that prices are going to go up And this is exactly what we're seeing in most major markets. If you look at, I've done a bunch of research into this looked at a bunch of different markets, I've seen the average daily rates have steadily climbed over the last 30 and 60 days. And so there's a huge, huge, huge opportunity right now to get started with Airbnb and there's a few different ways to do it.

Obviously, the most, you know, the most obvious the most, you know, expected way to get started in Airbnb would be to buy a property, furnish it, set it all up and get it listed on Airbnb. And if you have some money set aside for a down payment for a bit of renovation for some furniture, that can be a really good vehicle right now, because, you know, assuming that this trend continues on, you're gonna have a really great return on your investment. Now, the less obvious way to do it is again requires a little bit of an investment but it's to rent a property, furnish it up and then flip it onto Airbnb.

That one I typically don't recommend though, because you're not building any equity and you're still taking on risk if you own the property. You're building equity and you can always transition to long term rental, whatever might happen. And so you're still having a security blanket around yourself. And you can still do quite well regardless, if you rent the property, though, and you furnish it, you have no equity in the game at all, maybe a little bit of equity in your furniture, if you can call it that, because there is some remaining value that you could sell it for.

But realistically speaking, you're not building any real equity. But what happens is that if things do take a turn for the worse, like they did a couple months ago, then you're left high and dry. And those are the people who lost a lot of money when that happened because they had rent payments that were due, but their income and dried up. Now, the third option that in my opinion, is the best opportunity right now because there's a whole big demand for it right now in the marketplace.

And you take no risk is Airbnb property management, what we call the percentage management fee model. Now I've got a link down below in the description to a free training where I walk through the exact step by step guide for how you can get started managing other properties, other people's properties, using This exact model, it's a brand new training that I just put together that is specifically geared around what's going on right now talking about the opportunity. So if you want to check that out, just check out the link in the description down below.

But basically, what this is, is you're going and you're managing people's properties for a percentage of the overall revenue. Now, overall revenue is going to be sky high right now, which is amazing. So you're gonna get a huge return on every single property that you manage for. And the reason that property owners would want to do this for with you and have you manage their property is because right now, things are changing so much, right? They want someone to where they can do all the work over to say, hey, you take care of pricing, the property responding to guest messages, organizing cleaners, all that stuff, and then I'll just be, I'll just be over here, I'll collect my percentage of the revenue and I'll be happy not doing any of the work. And then you can come in and you can take care of all that for him.

So you're saving them time And oftentimes, you can help them to make more money because by more accurately setting the prices You know, adjusting and keeping up to date with all that stuff, you can actually increase the overall revenue of the property. And when you do that they make more money the property owner does, and you do as well. So it's a total Win win. Right now there's more demand for it than ever, because number one, property owners that are already on Airbnb want a lot of help managing this because it's become too burdensome for them.

And number two new property owners who are seeing this video seeing this opportunity right now are coming on, they're going, Hey, I want to take advantage of this. I want to get my property over onto Airbnb, but I don't know how to do it. I need someone to manage the property for me. And so for that reason, there's a huge, huge opportunity right now. Well, it also means is that you as the property manager, don't have to invest any money into renting the property furnishing the property. You're not spending any money out of pocket upfront to do it.

In fact, in the free training down below, I show you how you can actually make money right out of the gate before you even get your first booking every single time that you bring onboard. New property. What this also means is that because you get a percentage of the overall revenue, you have no risk, right? There's no such thing as having a down month, your revenue can drop to zero and you're still just making zero, you're not losing any money.

And so and even in the worst case scenarios here, we still, you know, I work with hundreds of property managers all over the world is what I do, I train people on how to manage properties on Airbnb, and our revenue didn't even drop to zero in the worst tourism meltdown of the entire, you know, recorded history, right, because you can always transition the property over to long term rental and still make your cut on the overall revenue, the property. So it's a really fantastic model, because there's a huge amount of opportunity. There's human human upside, there is no risk, no downside. It's a huge win win between you and the property owner. So you're still providing massive value to them, and it's really helpful to them.

It's a very in demand service. And right now, there's more demand than ever for this type of service. So again, if that's something you're interested in, you want to learn more about that. Just click the link down below in the description to our free training on how to earn a full time income managing other people's properties on Airbnb, just training that just recently put together here that covers all the steps exactly how I grew my business and how you can grow yours.

And by the way, we also show you how to automate and outsource all the day to day operations. So you don't have to be involved in any of the actual daily operations such as messaging guests, you can automate that setting pricing, you can automate that cleaning the properties, you can outsource that you can automate all the scheduling. So we show you different systems you can set up to very easily automate and outsource all the day to day operations of the business so that you don't have to be spending your time actually doing the day to day operations in the business.

And you can run this business completely remotely. I'm also going to show you inside the training how you can manage properties remotely from anywhere in the world just getting started out. So you can be living in, you know Australia and the managing properties over in the United States here. So we're gonna walk through all that just click the link down below to that free train to check Get out if you want to learn more about that. As always, if you liked this video, found it valuable, then just give it a quick like just click that like button down in the bottom corner there.

It helps you tremendously with YouTube's algorithm. So if you could just do that if you got value from this video, just click like give it a quick thumbs up. If you're new to the channel here. Or if you're one of those people who has been watching this channel for a while, but hasn't yet click that subscribe button, then just click that subscribe button down the bottom corner there as well. And then you could subscribe to the channel.

You'll know when we post new videos we post them twice every single week talking about all the latest updates on Airbnb property management, earning an income on Airbnb, starting your own business, everything in that space, we're gonna be posting new videos twice every week on and if you're subscribed to the channel, then you're going to get updates when those things come out so that at times like this when there's a huge opportunity that there's never been a better time to get on top of and you want to be really timely about it and get in at the right time.

Then you can know right away when that video comes up. So just click that subscribe button to be notified of all that stuff. As always, I really enjoyed this video and I will see you You.

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