Why Investors Want to Give You Money for Airbnbs

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What's up guys, it's James here. And in today's video, I'm going to talk about the other side of an equation that I've talked about in a previous video. And in that previous video talked about how you can buy real estate for no money down how you can actually get invested into short term rental properties without using any of your own money and without using your own lending ability. So not needing to get your own mortgage on the property. And that was by working with what I call joint venture partners. Now, I also want to do this video just talking about the other side of that equation and sharing with you why other people why investors want to give you their money and want to give you their lending capability in order to invest in short term rental properties. I'm going to break that all down, because I had a couple people reach out and say, Well, I understand that, James, why would someone want to give me a couple $100,000 to invest for them, when they could just go and do it themselves. And so I want to address that in this video here. And I want to share with you why you know myself, I've gotten so much interest in investing with us that I've actually had to shut it down, I'm not working with investors anymore, because the volume was just overwhelming. There's so many people reaching out wanting to give us their money, but we just had to shut it down, we had to close the doors on it for now. So I want to share what that perspective is of those people that are reaching out why they want to give their money and how you can get in on that action, and actually work with investors to make a really great win win opportunity. So we're gonna be talking about in this video today. Now, if you want the full detailed training on exactly how to work with investors, how to invest in short term rentals, and you want to become more knowledgeable so that you become more attractive to these investors, then check out the link down below to the free training, it's completely free, you don't have to pay anything, just register, grab yourself a spot jump in there, I'm going to walk through all the basics you need to know in order to invest successfully in short term rental properties, this is going to make you insanely capable and attractive to investors. So you'll definitely want to check that out. If you haven't done so already, again, links in the description down below. So that being said, let's just dive in and talk about, you know, why is it that investors would want to work with you. And ultimately, this comes down to just a simple equation of the return on their investment versus a ton and a half to put into it. Now, despite what all kinds of gurus are going to tell you. Real estate investing is never passive. There's no scenario where honestly, any investment at all ever is fully passive. The idea of passive income when most people think about is this idea that you can just put your money somewhere, and it'll just make you money with no effort, no thought nothing. Now the closest thing to that would be putting your money into a savings account, it requires a little bit of effort upfront, you have to go and open up the savings account after all. So it's not absolutely no work. But it's very, very close, you have to go research the savings account, open up the savings account, and then put your money in there. I don't know if you've looked at the interest rates on those savings accounts straight recently. But they're about one to 2% Maybe. So in that scenario you're going to be having, you already need to have earned millions upon millions of dollars of hard earned money to put into that savings account and actually be able to make any kind of a livable income or you know, it's still a garbage return, frankly. So obviously, the more the most passive comes with the lowest return. Now we look kind of one step up from that it'd be index funds. Now, if you think about it, index funds, you still have to do research. So there's more research involved, because he probably you know, a lot of people don't even know what an index fund is you have to research learn about it, you know, research the different index funds, how they work, what's different between an index fund and ETF all these different things, right. So there's still work to be done upfront. But then when you do that work, you put the money in, and then I work for you. Now generally you can get, let's say a six to 8% return. If we look at the last, you know, 50 years of history, typically you're going to be earning about 8% a year in an index fund. So that's great. That's not a fantastic return. But it's not bad, either. It's not a one or 2% return like you get in a savings account. So you know in my book, putting that extra time into researching it is going to be worth the additional return you're going to get Now what if you want to earn a higher return than what the market can give you? Well, you can look at different options like picking individual stocks, and that's probably going to bite you in the butt because it's not going to go too well for most people. And it's going to take a whole lot more time and energy sure you're not going out there and slinging bricks, it's very, you know, non laborers work, but it is still a lot of work to go and figure out what stocks to buy, you know, do any kind of day trading stuff like that. You can also look at real estate investing in this category. It's another way to earn a much better return on your investment. And certainly it's going to be more likely to give you that returns a lot more secure than if we look at the historical returns of picking individual stocks as an average everyday investor so you get better returns and more security. That's why a lot of people love real estate however you then again have to go and do more work because you have to learn about different mortgage options. You have to go and get pre approved for a mortgage. You have to go and find Find a property and you don't understand how to analyze properties, there's all this work you need to do. And then you own the property, and you've got to manage it or find a management team. And so there's all again, this work that you would not have to do, were you to just do the most passive thing, which would be just parking your money in a savings account. So it's not to say that you have to go and manage everything yourself, and do everything yourself when you're investing in real estate. But even if you are an investor, and you want to hire a management company, you want to work with experienced professionals, it's still going to, number one cost you money to do that. So that's going to decrease your return. And number two, it's still gonna take you time to go and learn all that stuff that you need to learn still, so you might not be actually spending time doing it, but you are gonna be spending the time on learning all these different elements to be able to invest successfully. So what's an investor to do, you know, you've got a bunch of money, you don't have a whole bunch of time, you don't want to go and spend all your time to learning this, it's not your area of expertise, but you want to make a better return, then you know, your 2%, you're going to get in your savings account, or the 8%, you're going to get an index fund. Well, that's where joint venturing can come into play. That's where joint venturing makes a whole lot of sense. What this gives you the option for as an investor is to go and park your money with someone that you trust. And for them to go and learn. They've already learned everything where they are learning everything about investing that money into real estate. So you get these returns from real estate, you're obviously going to pay a fee for the fact that you have a professional who's helping you out someone who's learning this and reducing your time. So you understand that and you're not going to put have to put in that time in return. So you get better returns, you get all the security that real estate offers, but you don't put in the time. And so ultimately, if we look at the average real estate investment that we're doing the short term rental property we're earning, usually, you know, 30% cash on cash return. And then you also have additional returns that you're earning from appreciation, the property equity build up. So let's take an example of property we're earning, let's say 25 30% cash on cash return? Well, if you take that and you split that between the investor and the joint venture partner, the active partner in the deal, then they're still gonna be making 12 and a half, or 15%, just cash on cash, not a lot better than 8%, they're going to get from an index fund, and they earn additional additional returns through appreciation and through the equity pay down from paying down the mortgage equity build up, I should say from paying on the mortgage. So more realistically, their annual return is closer to 15 to 20%. Now we're looking at it being double, even more than double, sometimes even triple what you would get with your average index fund. And ultimately, it is still more active than an index fund because it takes quite a bit more work to research and find a good joint venture partner, I would say that it does to research and find a good index fund. But it's nowhere near as much energy as needing to go out and learn all this stuff yourself and do it all yourself. So ultimately, the equation really just comes down to you get a better return than other options out there for less work than the other options that will get you an even better return. It's all a spectrum, you know that the free market works in a pretty magical way where the more work you're willing to put in, the better return you can get. If you want to do something passively, you're just not going to make as much money doing it, the most passive is going to give you the least returns. And the most active is generally going to give you the best returns right up to you know starting your own business, for example. So if you want to do that, if you want to be the most active and you want to actually start your own business, then we've got free training link down below for how to start a business managing other people's properties on Airbnb, if you want to start a business of actually investing in properties and work with joint venture partners to invest in property or Airbnb, again, we've got a free training down below for exactly how to do that. Because the other thing there is that a joint venture partner someone with that money in that mortgage capability is only going to want to work with you. If you know your stuff, they need to make sure that they're actually going to get that return that they're not just going to be over promised and under delivered. So they want to feel confident in you. So if you want to learn how to develop that skill set, how to develop everything you need in order to attract joint venture partners and have more money than you know what to do with, then you'll want to check out the link in the description down below to that free training. And we put together the walkthrough, all the details, everything A to Z, you'll also have an opportunity at the end of it to set up a personalized one on one strategy session with my business partner Riley, who has been a full time real estate investor for over five years now. So that's going to be again completely complimentary, you have the opportunity to do that after you watch that free training video. And then that's also completely free. We're offering as much value as we can we really want to help people out here to invest more in short term rentals because honestly, this is just an insane opportunity. I put together other videos about some of our properties and how they performed and they've just honestly far exceeded even my expectations and you know having been in the Airbnb space for years and years now, being one of the foremost experts on Airbnb and short term rentals. I'm blown away by the returns you can get and so I want to share that with other people. So if you're interested, just click that link in the description down below. If you got value from this video, if you thought it was insightful, then please let me know show it some love. Hit that like button, it just takes half a second just boop just hit that like button. It really, really helps me out tremendously with growing this channel, which by the way, thank you guys for helping us get over 1800 subscribers. We're almost at 2000 I'm very happy now. So if you are is watching this video and you're not subscribed, hit that subscribe button help us get to 2000 subscribers. I'm really excited about that. Otherwise, that's all I've got for you today. And as always, I will be back very soon with another video we post two videos every single week on Tuesdays and Thursdays. So again, just make sure you subscribe so you don't miss out on that great new content. And I'll see you in the next video.