(00:00) let’s get real I want to talk in this video about some of the real pros and some of the real cons of getting into Airbnb whether it’s through co-hosting or Arbitrage or investing because there’s so many people out there now they’re touting around how you can make millions overnight and do absolutely nothing and just go and borrow all of the money in the world and leverage yourself to all heck getting into Airbnb and that you’re just going to become a millionaire with no extra work and I have a big problem with that
(00:39) because for anyone that’s been watching keeping track I’ve been in the Airbnb space whether hosting or co-hosting or investing or teaching for almost a decade now and there’s been a recent Trend over the last six to 12 months maybe of a lot of bandwagoners jumping in and not trying to throw shade with this video but there’s just a lot of people out there that are giving people the wrong idea about what it actually takes to succeed with Airbnb and I want to clear up some of that and share with
(01:09) you some honest pros and cons with Airbnb and how I recommend getting started in 2024 let’s start with the pros yes you can make really great money yes you can get started without having to put your own money in but no I don’t recommend doing that and sure it might be possible but I don’t recommend doing that through going and maxing out a bunch of credit cards so that you can hopefully pay those down by the time you get your property rented so yeah there are great ways to start this business and to successfully start without or
(01:43) with very little money down I should say there’s always going to be some little investments into your business whether that’s for training and education whether that’s for little different softwares you’re going to have but you really don’t need to go and spend 5 10 $15,000 getting a business started when it comes to Airbnb you can do this using the co-hosting model where you go and you approach property owners who are looking to get help managing their property and you can offer that as a
(02:09) service in exchange for a percentage of the revenue from their property it’s a really great way to get started without the risk that comes with buying a property or doing rental Arbitrage what I really don’t like seeing that I’m seeing more and more of now is these people that are spreading the idea of going and getting a business line of credit and then pulling out as many credit cards as you possibly can and maxing them out renting a property getting your first month’s rent paid your last month’s rent paid your
(02:36) security deposit then grabbing those credit cards and maxing them all out Furnishing the property this is an incredibly incredibly risky strategy that is honestly just stupid it’s a bad financial decision it’s a bad business decision it’s just a bad decision even if it may work out for some people a broken clock is still right once or twice a day here’s why I think it’s just such a bad idea and here’s why this is a real con to rental Arbitrage is because when you rent that property there’s no
(03:12) guarantee that you’re going to be able to rent it for more on Airbnb you need to do lots of research really know what you’re doing doe due diligence to make sure that property is going to get rented consistently and make sure you’re going to do so at a high enough nightly rate that you’re going to be profitable on the proper even when you do that after accounting for expenses like your software expenses your cleaning expenses your supplies expenses for the property you’re probably going to be pretty lucky to
(03:41) profit about $1,000 a month on a property that you rented for $3,000 maybe $4,000 a month so now you’ve got a property that you just maxed out a bunch of credit cards to take on you paid $3,000 first month’s rent $3,000 last month’s rent and let’s say conservatively that you spent eight or nine or $10,000 Furnishing that property well now you’re into that property for upwards of $122,000 and you’ve got to rent it for 12 months just to pay back that credit card debt but that’s not accounting for
(04:14) interest those credit cards are probably picking up 20 25% interest every single year and it’s accumulating on a monthly basis well now suddenly you’ve got a whole bunch of debt that you need to go and keep on working to actively pay off that is not a business that is not a smart financial decision that’s just going and taking a whole bunch of unnecessary risk to get these properties and a lot of people out there will tout about how their properties are making thousands and thousands of dollars a
(04:43) month but they don’t talk about the expenses they don’t talk about all the costs that go into it and they don’t talk about the initial investment they made they don’t talk about the people that go and buy Properties or rent properties that are the wrong properties and that don’t actually perform well and end up needing to sell all that furniture second hand take a big huge loss on that and now you’re left with a big pile of debt long story short if you’re going to be getting into rental
(05:06) Arbitrage which I generally don’t recommend anyway because of all the risk and because of how challenging it can be from a cash FL perspective to run and grow that business then you want to make sure that you’re doing it with your own money that you can afford to lose you don’t want to go and use money that you need to pay for your bills and you certainly don’t want to go and borrow money to go and get started with something like rental Arbitrage now if you’re getting started with co-hosting
(05:30) you can get started you don’t actually have to go and spend a whole bunch of money on setting that business up it can be relatively inexpensive now you will want to get business training whether that’s just binge watching all the content on a YouTube channel like this or some of the other ones out there that are really fantastic and great educational channels about Airbnb and about short-term rentals heck there are even some really really great channels out there about rental Arbitrage where the people are actually doing it doing a
(05:57) great job and learning can go like that or or you can join one of the training programs that are out there for me or other people in the space but you definitely want to get educated are you a brand new or experienced Airbnb host co-host or investor who wants to host as successfully as profitably and with as much fun as possible if so then I would love to invite you to check out BNB tribe Linked In the description down below this video it’s our exclusive Community for Airbnb hosts investors and co-host from all over the world where I
(06:32) share some of my best trainings that go into detail on every single aspect of Airbnb hosting from A to Z we’ve got Advanced Training playbooks that will help you to use more advanced strategies to take things to the next level and make more money and have more fun hosting co-hosting or investing on Airbnb you’re also going to get access to an incredible community and over $2500 worth of deals perks discounts bonuses that I’ve negotiated with other vendors in the short-term Ral industry so if you want access to all of that and
(07:03) a whole bunch more check out the link in the description down below for B&B tribe and I would love to see you on the inside education is going to be what speeds up your learning curve to make sure that you don’t have to take on all those mistakes that myself and other people have made in the past you can learn from our mistakes as opposed to making them yourself that’s going to speed things up so it’s going to give you a big leg up over the competition so that you can actually have experience
(07:26) and actually provide really great value to your clients I’ll be the first to admit that for the first couple clients that I had when I first started my journey 10 years ago I made mistakes and I didn’t deliver as high quality of a service as I would be proud to honestly put my name on and that’s just because it was learning it was a learning curve to it I was new to it it was all new to me and you don’t want to start out with that if you can avoid it so training is a big one there there is a big learning
(07:51) curve that comes with Airbnb it’s not just set it and forget it do nothing there are proven strategies that work that get properties to per form well that you can use to get clients that you can use to analyze properties and make sure you’re getting the right properties but ultimately you still have to go and learn those and Implement them make sure you’re doing things properly it is not by any means something that you can just pop into and with no education no training no experience just go ahead and
(08:18) perform well you’re going to make mistakes it’s going to be a big learning curve so there is definitely work that needs to be going into building the business now let’s talk about the other side of this which is actually investing in properties for short-term R Al now there are some obvious pros and big benefits to short-term rental investing I invest in my own short-term rental properties I think it’s a really really great strategy but that’s not to say that it’s just all sunshine and rainbows
(08:42) and there are no downsides to it at all it is again work just like anything else there’s no something for nothing in this world and if you find yourself following someone who is touting the idea of getting rich overnight getting rich quickly getting rich without any effort then you’re probably following the wrong person you might want to be a bit more skeptical about that of course there are lots of opportunities to be successful but they require work they require expertise they require actual effort and
(09:09) so when it comes to actually purchasing properties for short-term rental there are some great Pros you get to build long-term equity which is really really great you get to see that property appreciate over time which is going to build your wealth you’re paying down principal on the mortgage as you own that property so that’s Building Wealth for you as well and you can generate great cash flow with the right property you can put money directly back into your bank account and that cash flow can then be used to either pay for your
(09:33) expenses give you some supplemental income or you can reinvest it into the next property it’s a really great strategy and there are benefits to short-term rental investing over long-term rental investing like the increased cash flow and the increased control that you get over your property but there are also drawbacks to the strategy that you have to be aware of for starters renting shortterm is going to be more work than renting longterm and and so if you do want to be completely hands off then you either
(10:03) have to hire a property manager which by the way that means that you’re still going to be putting work into finding that property manager sure it can be hands off down the road once you have things set up but you absolutely need to go and find that property manager or you can build your own internal property management team and systems which again takes work to set up initially it can be highly passive down the road once you have that structure all set up you’ve got the team in place you’ve got all
(10:29) your systems working well in terms of your guas communication automation your pricing strategy all that stuff you can set that up to require 30 minutes an hour week to maintain ongoingly but that’s not going to happen in the blink of an eye you have to put work in to setting up these softwares hiring these team members putting everything in place so it can run smoothly for some people that’s a really really great option because some people are not afraid of putting in that extra work and they want to build that Sweat Equity they want to
(10:55) put the work in and build a system that they then they can multiply with because Lely if you have the system set up for one property the nice thing is you can multiply buy a second property a third property a fourth property and still leverage a lot of those same systems and same team members that you have in place for the first one so it can be really effective it also is going to be something that if you do it the right way allows you to reach a significant enough financial cash flow monthly coming in that you don’t need to worry
(11:22) about your job and you’ll be able to do that with a lot fewer properties than you would long-term rentals that cash flow lower that means taking on less debt means taking on less leverage means taking on less risk uh it can be a really great strategy there’s lots of Pros to it but don’t be fooled there are downsides as well the workload being one of them you also have to deal with issues that come up it’s not going to be a business that has zero issues ever come up now you can have a team in place
(11:50) to handle those issues but the issues will still come up nonetheless whether it’s a guest leaving your property a little extra dirty sometimes damaging the property different elements like that maybe you’re going to have neighbor complaints and again there are strategies and solutions to all of these problems I’m not ragging on short-term rental I’ve been doing it for 10 years I love it I teach people about I built a whole business around this I absolutely love short-term rentals but I don’t
(12:15) think it’s fair to say that there’s absolutely no downside and I don’t like that there’s a lot of people out there right now touting that you can do this with no work no effort you can get there overnight hopefully this video has given you an accurate picture of the real pros and the real real cons of short-term rental it is absolutely a really really great strategy to get involved with whether you want to start co-hosting whether you want to host your own space whether you want to get started
(12:38) investing if you do I’d highly recommend that you join and jump into uh a collaborative Community like the one that we built with B&B tribe that’s there to help you we’ll give you support we’ll teach you all the ins and outs of different pricing strategies optimization strategies how to avoid mistakes how to pick the right properties everything you could imagine if you want access to that there’s a link in the description down below you can join that Community get access to all the training get access to all of
(13:02) our deals and perks everything else that we have to offer in there it’s a really really great place to get started or a really really great place for any of you who are already doing it to jump in and level up your hosting we’ve got something called Advanced Training playbooks in there that are going to allow you to leverage different strategies like direct bookings using AI for guest communication all these different strategies that are going to make hosting or co-hosting or investing more profitable and more fun it’s a
(13:26) really great Community I highly recommend checking it out it’s also extremely affordable um so check that out Link in the description down below but I really hope that you get started on Airbnb on the right foot with the right expectations most importantly if you like this video make sure you hit the thumbs up button it really does help me to grow this Channel and get these videos in front of more people if you have thoughts comments questions let me know in the comment section down below if you want to see more videos like this
(13:50) take half a second just hit the Subscribe button I promise it doesn’t cost a thing and we post two new videos every single week here on the channel talking about everything you can imagine that will help you to succeed with Airbnb so make sure you hit the Subscribe button and if you want to stay update and get notified when we post those two new videos you can hit the notification Bell as well well all that said I hope you enjoyed this video and I’ll see you over in the next one