Sid's passion for his business is infectious. He's dropping knowledge bombs all throughout this video. If I were in this space, I would definitely get my notebook and note down his business tips. This was sooo educational.
except he said zero or little money needed is lie. you still money for airbnb arbitrage or 20 percent down payment for hard money loan. the only thing that you don’t need money is rent out your individual room out ( house hack )
To keep profit margins at 75-80percent occupancy. Absolute genius. if your bookings are lower the 75%, then they are too expensive, if higher, then your bookings are higher then raise the price. Gold. @@UpFlip
The love I have for the Airbnb business called Shortlet renting here in Nigeria is so crazy... I have learned a lot from this interview than I have gathered in the Last 2 years of gathering information on the business
Did you guys see their credentials? The guy is a Wharton MBA and the wife is a Michigan MBA, UCLA undergrad in finance and Microsoft employee. No wonder his business is so organized.
That makes sense. I could tell there was something different about them. They are building synergy and looking at long term potential in both rental and human capital.
Great video! Really love how detailed they are on standardization. One thing that slightly bothered me is they are calling the $3m/year their revenue, which it is not. Their revenue is 25% of that or $750,000 if they are doing $3m in total property volume. It would be the same as Airbnb claiming their gross booking volume (e.g. every dollar going into Airbnb) as their revenue.
Standardization is a very interesting thought not just on short term rentals but long term as well. Having the same fixtures and flooring could go a long way. And I definitely will keep this in mind for my rentals!
For earning $20,000 per month you need to list $1200 per night, make sure get 80% occupancy rate every single month.I don’t think it’s truth. My Disney Airbnb single family house with Luxury renovation, 3500 sq ft, can host 18 guests per night, with private swimming pool and a professional home theatre,I only charge $350 per day,just got 60% occupancy rate.
Yeah some of the figures they quoted maybe are a bit unrealistic. In a perfect world 80% occupancy is great. But I think 60% is more realistic. So if you put your property on the STR market given this % you will be better off
AirBnB’s are ruining the housing situation on Maui. People who don’t even live here buy up all these houses and condo’s for AirBnB/Vrbo. Maui people have no where for their families to LIVE because of all of the short-term rentals everywhere.
Yeah but with enough money you can forget about ethics and empathy. I really hate this kind of videos is just a slap in the face to everyone that can't afford a house because of businesses like this. Legally they are ok but ethically I could never seeing the state of things.
@@V1N_574 - So true. I’m glad the people in the video are so successful at this, but these kinds of short-term rentals are an absolute nightmare here on Maui.
let me guess. You are local right ? And I own 9 listings here, so whats up :)) Look like I give a F ? Just move . thats it. Btw, I live in San Francisco :))
@@UpFlip - It’s the current situation here. The county and state are cracking down on the illegal short-term rentals and the nuisance ones that are located in residential neighborhoods where they don’t belong.
@@UpFlip Ep 152! Making 100M from scratch in real estate! I took good notes from that one. Loved the tips he shared about getting a lot big enough to place two houses or a row of apartments. Those apartments with the rooftop area were so nice!!
@@shanellanderson9791 hello ma sorry if am disturbing you please I really wish for your assistance ma, am a African student who is finding it hard to see myself through school due to the bad polices Of the government, please any assistance from you will go a long way to help me start up something for myself, am real am not a scammer am just soliciting for help for whoever wish to help me ,you can call if you wish I can drop my contact for you God bless you as I await your your reply thank.
Just beware of all the squatters now in Airbnb, as well as rental houses. Too many in my area are having issues with professionals (educated individuals with good income) squatting in Airbnb and rentals. Just look into that pitfall before rushing into this one.
@@AndrewNguyenOfficial My apologies, I don't want to discourage anyone, but please beware of this issue. You can look it up on youtube as well. Good luck kind sir .
i’m confuse . he said you don’t no money or very little money but then at 24 mins into the video , they require their homeowner clients to have high quality furnishing and high standard home ( which you will need a lot of money to furnish your home to his standard . everything else he said are on point and it make sense
AirBnB stories are quite misleading because it has now become very competitive and if you had started a couple years ago like this couple and have built up reviews you are much more likely to continue to be successful - much much harder for someone to come in new. Also there are many places where your rental income yield is not very good due to high property values. So not everybody can buy a house for $15,000 and rent it for $500/m...that is unheard of in many places. I love in an area where you cannot find deals so you are assured a yield of 10% or less.
@@UpFlip quite frankly all of it. I'm looking into becoming an entrepreneur and this video is like a tutorial to start a great Airbnb business AND make it succeed over time. Every bit of it was great. I can't wait to get started owning real estate.
Host: 1. How to handle emergencies and cost such as water leak, gas, electrical, fire, major damage to property ? What kind of agreement / contract so both host and owner are on the same page with no conflict (and law suit)?
What great content, great job NICASA thank you for selflessly share all the amazing tips, wish all the success in your business I would love to work with you!
Great ideas 💡 and education. I think the very first most important factor even before location is determining the potential for STR local law changes. Many municipalities have restrictions making STRs very difficult or not feasible. I guess in Seattle STRs are not as restricted as other municipalities. In Hawaii being a high tourist destination STRs were booming. But the hotels and tourism boards are more politically connected than your average private homeowner. Soon after the new regulations came out many of the STR investors sold their properties, many at a loss. They didn’t have a well defined exit strategy. Of course no one has a crystal ball for future political changes. But due diligence should include researching the political climate of the area you’re considering buying. Next have a clear exit strategy in case STRs become too restrictive.
Basically the company profits between $15k to $30k per month, let's say around 250k per year profit. For the company. Then the company has to pay taxes on that $250k. Then you have more taxes if they want to take the money to their own bank account. So in the end, they get like 50k each or less.
What kind of calculation is that, they are married, you think they paid 150k tax on 250k income? The tax would be around 20 to 30 percent max. So there take home is 180k to 200k
This is the last thing the reeling real estate market needs right now, as an Air BnB investor i think due to the similar mode of operation like WeWork, we might soon be run off the market. Essentially why i'm at large for exit measures or where to allocate $1m
The only thing I think about is how these people make a ton of money by making sure 22 properties cannot be purchased by others to have as their primary residence.
Taking housing away from locals, increasing housing costs. Glad the bubble has burst. Sell your Airbnb at a fair price for locals, not tourists. Or, rent it long term to a local.
So 900x365 doesn’t even come close to 3 million on 7 properties. But that’s renting it for 900 per day he mentioned it goes as low as 300 per day. Ama call another cap. 85% occupancy a year we’re getting further away from the 3 million a year lol
@@nyrubinRelevant but perhaps not on this video: Rule of thumb on house tours and the likes is that any amount thrown out there is actually double of what it really is at a yearly peak. I am a video editor and I cannot stand the amount of lying that clients expect me to just gloss over. They bend facts and numbers and I have to cut dialog and video to remove anything that gives away the truth. Lying is the norm currently.
I just got an offer declined on a home I was trying to purchase in my small coastal town I’ve lived, rented and been a community member in for almost 10 years because a guy from out of town wanted to start an airbnb and had all cash to do it.
@UpFlip nothing particular....just something a person could do even for a side job to make money....lot of people have ideas just don't know where to start.....I've had shopify store and had a few sales....but need faster shipping times, Aliba alternatives......or maybe a .....oh a food order business like oh .....nuts or something. Coffee is popular. Some suppliers will put your logo on the items for you for Coffee or nuts or whatever. I've had the pressure washer idea before.... those are good videos
If you want to learn the nitty gritty of starting this business, please head on over to our blog and listen to our podcast for more detailed information. Best of luck! 👊
Hopefully I can have my testimony 2025; I have sooo many projects I’m tackling. Wholesaler as well. 🔥🙌🏽‼️📿🙏🏽27 year young single mom of 3🔌💪🏽💕🥰😍 no excuses. Life is beautiful and it’s what you make it. ‼️🙌🏽
Im at minute 18:58... $836 just in airbnb fees is why I will never support airbnbs. Just ridiculous. You can get a nice spacious hotel in downtown for $2600 on those same dates with walking distance to everything. Or you can do boutique hotels or boutique management companies like Sonder and get a two bedroom house/apartment on those same dates for $2100 out the door. Compare that with $4,900 these people are charging. Double the price! Unbelievable.
