3 Ways to Make an EXTRA $90,000 OR MORE on Your Next Airbnb

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What's up guys, it's James here and today's video, I'm going to talk about three different ways that you can earn an additional $90,000 or more on your next Airbnb investment. So if you're interested in that, stay tuned for the rest of the video, we're going to break down those three different ways. And there are ways that most people don't think of most people think that the only way to increase your earnings on Airbnb is by just, you know, pricing your property better and getting more bookings. And the reality is that with Airbnb investing, you're gonna be earning a return on your investment in a few different ways. And so there's actually a few different levers that you can pull to dramatically increase the overall return of your investment. So we're gonna talk about that more in this video. Now, for anyone who is interested in learning more about exactly how to invest successfully in short term rental properties, everything from finding the right markets, to analyzing properties to renovating to setting them up to managing them optimizing pricing absolutely everything from A to Z. If you want it all laid out in a clear step by step easy to implement pathway then I highly recommend you check out the link in the description down below for our free training that covers exactly that. I've been investing in managing consulting on Airbnb s for about seven years now. I literally wrote the book on Airbnb, Airbnb for Dummies, which by the way, we're coming out with a new updated version in early 2023. And so if you want to learn from me who's got tons of experience in Airbnb and knows my way around Airbnb and short term rentals overall, then check out the link in the description down below to check out that free training, it is guaranteed to be valuable to you, it's guaranteed to be helpful, I can guarantee you without a single bit of doubt that if you watch that training and you implement it effectively, it will save you or make you at least an additional $30,000 On your first or your next investment property on Airbnb, mark my words hold me to it. So I hope that you get value from it, make sure you check it out in the link in the description down below. Now, that being said, let's talk about the first of three ways that you can make over $90,000 or more on your next Airbnb investment and not number one is negotiating. Now, a lot of people don't think about this, a lot of people think that real estate prices just are what they are, especially with the market being as hot as it is right now. Most people assume that they cannot negotiate on deals. And I'm here to tell you that anyone that thinks that is wrong, and they're stepping over literally 10s of 1000s of dollars every time they operate that way. And so what you need to do is know exactly how and when to negotiate, and when you actually can and be able to deploy that effectively. So first off, if you're looking at off market deals. Well, I mean, first off, if you're not looking at off market deals, you got to get on that because those are where there's a lot of really great opportunities for insane ROI. So if you want to learn how to actually find and acquire off market property deals, again, links in description down below, we're going to talk about that in more detail. But off market deals and you know exactly how to get those and how to negotiate them, there's tons of room for negotiation with those because obviously, there's way less competition than on market deals. And with on market deals, you didn't know the ins and outs of how to actually use the system to your advantage. So if you get an offer accepted conditionally, and I know a lot of you guys think you have to go in firm right now because everyone else is. But the reality is, you can go unconditional and still get your bid accepted on a lot of properties, even when the market is really, really hot. And then what you can do is then leverage the fact that you're conditional, and basically just find ways to negotiate the price down. So for example, if you're conditional on inspection, and the inspection shows that there's going to be additional need for renovation or anything comes up, really anything you can come up with can be used as a lever point to bring down that price. A lot of people think that once they're conditional on a property that the deal is closed, and the number is firm, and they don't realize that during that conditional phase, you can close you can opt out of the deal, or you can negotiate and renegotiate terms, you can renegotiate price, everything is still very flexible. Because at the end of the day, you can negotiate or just walk away, the seller is going to be in a better position to want to negotiate with you. Because once they accepted your offer, even though it's conditional, they went and turned down all the other offers. So if they were to put the property back on the market, they would then have to go through the whole rigmarole again, relisted everything else. And so that will be a giant pain for them. So they're a lot more likely to negotiate down 5000 10,000 $20,000, even depending on what you find in the inspection, or whatever else comes up, then they are to want to go through the whole process over again and start over from scratch. So that's step number one is negotiation. And there's a whole bunch of ins and outs of exactly how to do that, when to do that, why you would want to do that what your reasoning can be for negotiating on different points. And again, we go into more detail on that in the link in the description down below in that free training. And you can even set up a call with our team out for that, again, completely free if you want to discuss exactly how to negotiate in a bit more detail. So that's method number one. I'm looking at my notes here. Method number two is renovation. That's The other way that you can earn a whole bunch more money on your next investment. So just think about right, if you negotiate even $5,000, it's probably one conversation that it's going to take to negotiate $5,000 off of your purchase price $10,000 On a recent property we purchase, we even negotiate $100,000 off of the purchase price for the property off the list price. And that was in the market that was crazy hot, you know, the property had been sitting there for a while we knew what levers to pull on. And this was when most properties on the market were going for way over asking and they were going within days of the property being listed. And so we were able to get $100,000 off the asking price just there. Imagine what you can do on the average property. And so next is going to be renovation, renovation is a really good way to ramp up two different types of ROI. One is your renovation ROI, I like to call it basically forcing appreciation on the property. And then two is by making the property more desirable as a short term rental and therefore increasing your cash flow from the property. So if you do right renovations, for example, strategically renovating kitchens, bathrooms, that kind of thing, then you can increase the value of the property disproportionately to what you actually spend on the property itself, plus the renovation, we did this on a recent property, it's pretty commonly known as the burr strategy where you buy rehab, rent refinance, repeat. And basically all that means is you're buying a property that needs some strategic renovations, not a nice property that you think could use some renovations, but a property that the entire market agrees, needs some renovation. So these are typically going to be, you know, really outdated, they've maybe got some stinky carpeting in there, maybe some popcorn ceilings, really bad paint job, like those different things, maybe they need some bathroom works and some kitchen work. And so you're going to buy that property, and then you're going to do that renovation work. And then maybe you spend, let's say $500,000 on the property, another $40,000 on the renovation work, but then the property value jumps up to 580,000 $600,000. So that difference there between the 500,000 You paid plus the 40,000 used to renovate that brings you to 540 the direction that and the new value the property, let's say 580 or 600,000, that is additional return that you've gotten you now if you were to sell the property, you'd be able to sell it for 580,000. If you refinance the property, you can refinance it at 580,000. So that's an additional $400,000 where the room that you can play with, you can either pull out through a cash out refinance, or that you can, you know, you can do whatever else you want with you can sell the property for a profit, which obviously wouldn't want to do in this scenario, because you just have a great property now, but you got this additional return for the future when you either do a cash out refi when you sell it down the road long term, or if you pull out a HELOC, whatever else the other really cool thing is that now you've got a property that's going to perform like a $580,000 property, but you only bought it for $540,000 500,000 plus the 40,000 for Reno. So needless to say, your cash flow is probably going to be better on that property, your overall returns are going to be better because now it's performing like a $580,000 property. It's got nicer amenities, it's nicer renovated, it's more in demand, people are willing to pay more for it. And so that's going to ramp up your cash flow from the property. So that's really fantastic as well, that's method number two for increasing returns. And from experience, it's very easy to the right property, increase your property value by 30,000 50,000 $80,000 on that property, depending on how much you're purchasing for of course, and then you can easily capture an extra 510 $20,000 in just cash flow from the property by doing the right renovations and getting it more desirable for your guests. So that's method number two. And you can easily generate 10s of 1000s of dollars of additional returns just through the right renovations. And then third is pricing. It's really just having a dialed in pricing strategy. This is probably the easiest way to pick up additional income, you don't have to go through and understand how to negotiate. You don't have to actually go through and renovate the project, which obviously takes some time and some work, you really literally just have to price your property better. Price it higher at the right times price it lower at the right time. So you get booked up better, and you overall increase the overall returns for your property. Now, most properties that I look at are underperforming by 10 to 20%, sometimes even 30 40%. If your property is bringing in even $50,000 a year, then at least you're leaving, I would wager about $5,000 on the table every year just by not pricing your property as well as you could be more likely you're leaving 1020 $30,000 on the table every single year. Just by not pricing the property as well as you could be I can speak from my own experience that on one of our properties is last year we had projected $120,000 as our best case scenario, and it was only because we were pricing the property diligently with the right pricing strategy and the right pricing tools that we were able to get the property up to $150,000 because the market actually boomed and kind of took off that year. If we had had the right tools, we would have 100% Absolutely left that extra $30,000 on the table, we wouldn't have even known it was possible. And so most people are leaving a huge amount of money on the table because they just don't know how to price their property well. So again, if you want access to all of our pricing tools, or pricing strategies, everything if you want to learn more about that, check out the link in the description down below. For that free training, we're gonna give you our analysis spreadsheet. If you want to learn more about how to actually implement these three different strategies and really make some fantastic returns on your next short term rental investment, check out the training that's linked in description down below. Now lastly, if you liked this video, give it a thumbs up it really does help me a lot. So if you got any value from this, if you enjoyed it, if you want to see more videos like this, take a second and just hit that like button. I really really appreciate it helps me out tremendously with growing this channel. Thank you very much. Also subscribe to the channel. I know a lot of you guys don't I know a lot you guys watch these videos. I know you guys like these videos, but I know a lot of you guys do not subscribe to these videos. So make sure you actually hit the subscribe button. It should turn a different color for you make sure you do that. There you go. I post two new videos every single week and I my sole goal with these is bringing more and more and more value. So make sure you subscribe so you can stay up to date with that and then also drop me a comment let me know what you think. Let me know any questions you have comments, thoughts, anything wants you to let me know in the comment section down below. All that said Have a fantastic rest of your day and I'll see you in the next video.