Why Is Airbnb Investing Exploding in Popularity?

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What's up guys, it's James here and in today's video, I'm gonna be talking about why it is that Airbnb and short term rental vacation rental investing has been exploding recently. Now, if you're interested in getting in on this huge growth curve, if you want to start investing in Airbnb, short term rental properties yourself, then I highly recommend you check out our free training on exactly how to do that it is linked in the description down below, we're also going to give you access to our spreadsheets that you can use not to analyze deals, it's the exact spreadsheet that I use for analyzing all of our deals. So highly recommend you check it out, it's linked in the description down below. Now, all that being said, let's jump into it. And let's just talk about why it is that as of late Airbnb and short term rental investing has been really, really growing quickly. Now, this comes down to a few things, but probably one of the biggest drivers I would say in the investing space is that right now you're seeing a big squeeze on long term rental investing returns, long term rental investing is just cash flowing worse and worse and worse. And we're likely to see that even become more of a factor because you know, just prices are going up right prices are getting higher and higher. And we're seeing this all across different markets, North America, Europe all over the place, we're seeing prices rise pretty dramatically. And so with prices going up, rents aren't really going up to match it. And so your returns are really just being squeezed. There's very few places you can invest, especially in North America right now and buy a long term rental property where you're going to be able to cashflow as well as you were able to cashflow let's say five years ago. And so for that reason, as more and more investors get their cash flow amounts squeezed when it comes to long term rental investing naturally, they look for other opportunities to generate more yield on their investments, more cash flow. And so naturally, one of the great options for that is short term rental investing. This is why I'm really bullish about short term rental management, which we'll talk about a lot on this channel as well. If you are interested in managing other people's properties on Airbnb and short term rental, there's another link in the description down below for free training on that. And there's gonna be a huge surge in demand for that over the next couple years, we're already seeing the demand going up massively for those types of services, but also really great opportunity for investors to get in and start buying short term rental properties. The other really big piece is that short term rental properties just cashflow insanely well. So not only is it just another option for people who are traditionally in long term investing, but I think that the word is getting out that short term rentals cashflow better than people thought was really possible with real estate, the numbers are quite insane. I've talked about in another video, I've actually a couple other videos on this channel about how we purchased a property about a year ago now. And its first six and a half months of operations. It profited after all expenses were paid the actual profit, the cashflow was over $48,000 Now $48,000 In six months, that's enough to replace your full time income for most people. So when people see that, and people hear that they go, Wow, this is a real opportunity for me to be able to escape the nine to five to get real financial freedom. And then to build a lot of long term wealth. Just think about it, if you have an investment, let's say you even keep your nine to five job, if this investment is rolling in now $50,000 every six months, that means that you're going to be bringing in, let's say, I'm going to say conservatively $70,000 a year because again, it's not going to go exactly as planned, you know, we're going into the low season here as well. So naturally, the tailing six months aren't gonna do as well as the first six months, they're just for that property specifically, but I'm gonna say conservatively that over a 12 month period, that property is going to bring in 70 to $80,000 each year. So at 70 $80,000 a year, you can buy another property every year just off the cash flow alone without having to do a refinance. So that's pretty powerful. So there's just a lot of opportunity here, people are seeing it more long term investors are coming into the space and we're seeing an explosion in growth. The other really cool thing about short term rental investing that I don't think is really contributing that massively to its growth, but I think is a really big benefit is that you can get into these properties for very little money. We're seeing that there are a lot of secondary markets. And again, I've talked about that in other videos on this channel, the markets, the cash will invest and do the best. But a lot of these secondary markets where you can pick up properties that cashflow really, really well because they are secondary markets, you can buy properties for not a lot of money a couple $100,000 234 $100,000 and get your really great investment property. And so the barrier to entry is very, very low. Now one of the things that I also think is going to really kind of pour gasoline onto this fire of the growth of short term rental investing is lenders becoming more and more comfortable with lending to short term rental investors, we're already seeing options for people to be able to buy short term rental properties with no money down or very low money down without using their own income to qualify for the loan. There's all kinds of different options out there for you to get invested into short term rentals, where you can get favorable lending as the short term rentals become more accepted by major banks by lenders. So that's a really great opportunity here because as that lending becomes more available just means that more people are going to have the option to start investing. And that's going to really fuel the growth of the industry. Now, I always recommend that you make sure you're still investing diligently because there are still bad deals out there. So don't mistake someone's ability or willingness to lend to you as an indication that you're actually going to succeed, you still need to do your own due diligence, you still need to make sure that you're investing intelligently within the parameters of your risk tolerance levels. But that being said, if you do it the right way, it's very, very low risk, you can really make calculated decisions when you're investing in short term rentals. I've got tons of content on this channel. That is really our goal. Our goal is not doing our speculatively, I know some people do that. That is just not for me. If I'm investing my hard earned money into a property, I want to make sure that is a sure thing. I always like to make sure the worst case scenario that property is still going to cashflow positive, and I'm looking for a 20 to 30% cash on cash return whenever I invest in these properties, or greater, frankly, because I like to have that buffer there, I like to have that safety net. And I like to be able to hire a property manager to you know, take it completely off my plate if I want to. Now for me, I'm in a unique situation where I've got a property management company that I can leverage, I've got a team I can leverage to be able to do that for me. But I always really liked to honestly be probably a little bit overcautious when it comes to investing. Because I know that it's my hard earned money and I don't want to lose it. I like to follow Warren Buffett's philosophy of rule number one, don't lose money. Rule number two. Don't forget rule number one. So all that being said, if you want to learn more about how to actually get into this space and get into it the right way, invest properly in short term rentals. So you can generate massive cash flow, build long term wealth, and you know, protect your downside as much as you're maximizing your upside. And I highly recommend that you check out the free training, it's linked in description down below, I see a lot of people making different mistakes. I want to help you avoid those when it comes to short term rental investing, and use the expertise that I've developed over the last six and a half years here to really help you to invest the right way on a solid foundation. So if you want to just leverage that knowledge and that expertise, then just check out the link in the description down below. That train again is completely free. The analysis spreadsheet we're going to give you is completely free. And we're also going to give you an opportunity to set up a call with our team completely free to really map out a plan for your investing strategy over the next several years. So hope you get value from that, check it out in the description down below.
I hope you got value from this video. If you did, give it a thumbs up, hit that like button, make sure you subscribe to the channel as well. So you can stay up to date with the two new videos you post every single week. And I just want to give you a second. I know sometimes I'll say that stuff and people won't listen. I'm guilty of that whenever I watch videos on YouTube here as well. I know from looking at my analytics, a lot of you guys are not actually subscribed to the channel so take a second and actually hit that like button if you got value from the video. There you go. Take a second and actually hit that subscribe button if you want to stay up to date with the video. There you go. All right. And so now I will assume that everyone that has liked the video has liked it everyone that wants to subscribe has subscribed. Welcome to the channel if you just subscribe. I really look forward to serving you with more videos twice every single week. I hope you enjoyed this one. I hope you enjoy the rest of your day and I'll see you in the next video.