how people are crushing it with airbnb · is the go to expert in the entire industry for airbnb...

www.RealEstateInvestingMastery.com

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HowPeopleAreCrushingItWithAirBNBHostedby:JoeMcCall

Guest:BrianPage

Joe: Heyeverybody,welcome.ThisistheRealEstateInvestingMasteryPodcast.Today'sgoingtobeagoodepisodebecausewe'regoingtobetalkingaboutoneofmyfavoritesubjectswithagoodfriendofmine.We'regoingtobetalkingaboutAirBNB.

Joe: Ihavetotellyou,thisisreallyexcitingformebecauseI'vebeengetting,youknow,youknowwhatIteachandwhatIdoIdoalotofleaseoptions.I'vehadlatelyatonofstudentscomingtomeandsaying,heyJoe,I'vebeendoingAirBNB’s,I'vebeenturningtheseleaseoptiondealsintor.Justhadaladyrecently,likeliterallythreeorfourdaysago,hernameisAnna.SendmeamessageonFacebook.Shetookherfirstdeal,herfirstleaseoptiondeal,herfirstAirBNBdeal,likeherfirstdeal.Shegotitunderaleaseoptioncontractwiththesellerfor$1,250amonth.It'sanicelittlethreebedroomranchinagoodbluecollarneighborhood.It'snotinthefancyareasofhertownwhereallofthevacationersgo,wherethehotAirBNBspotsare.Thisislikeinthebluecollar,middleclass,suburbanarea,right.

Joe: Andinthefirstfourdaysshegotthepropertyundercontractonthe15thandonthe19thshe'dalreadyhadabout$1,400inAirBNBcommissionsorcollectionsorfees,whateverthey'recalled.Shesentmeascreenshotwithinthefirstfourdays,youalreadyhadlike$1,400bucksinthere.Andthecrazythingisthis,thehousewasstaged,thesellerhadbeentryingtosellit,couldn'tsellit,sotheywerejustadvertisingitforrentorsomethinglikethat,Idon'tknowallthedetails.Shecontactedthesellerandthesellerwasmotivatedandsaid,yeah,I'lldoaleaseoptiononit.Shenegotiatedpartofherpaymentwouldbetokeepthefurniturethere.Sothehouse,I'mnotsureifitwasused,ifitwasstagedwithastagingcompany,BrianwillbeabletoanswerthatquestionI'msure.

Joe: Butlikeshe,negotiatedaspartofthedealtokeepthefurnitureinthehouse.Shenowisusingthatandthepicturesshowgreat.Infact,Ithinkshe'susingsomeofthepicturesthattherealtorused,whichweredonebyaprofessionalphotographerfromtheMLSlisting.She'susingthatinherAirBNBlisting.Anywaytosayshewassuperexcitedisanunderstatement.Sofastrewindaboutthreeweeksago,I'mon


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anairplaneflyingfromsomewheretosomewhere.Idon'tevenrememberBrian,Ithink,wasn'titfromNashvilletoAtlanta.

Brian: YeahIthinkso.

Joe: AndBrianwaslike,I'msittingupinfirstclassandthisguycomeswalkingin,hesays,Hey,I'msitoverthere,Iwas,okay,cool.SoIgetupandthenhegoesandsitsdownthenIsitdownandlike,it'slike30secondslaterIlookathimandhelooksatme.He'slike,Hey,we'resittingrightnexttoeachotherwekneweachotheritwasfunny.SoIsaidtoBrian,listen,Iwanttogetyouonapodcast.Wetalkedforlikeanhour,anhourandahalfaboutAirBNBandtheawesomethingsthatBrian'sgotgoingoninthisbusiness.AndIsaid,gottogetyouonapodcastandIwanttodoawebinarwithyou.Sohe'sgraciously,Iknowhe'sabusyguy,hetravelsalot.He'sbeengraciousenoughtosay,hey,yeahlet'sdoapodcastandnextweekwe'reactuallygoingtobedoingsomewebinarsandI'lltellyouguysmoreaboutthat,butletmejustsaythistoo.

Joe: FirstofallBrian'sgotsomereallycoolthingstogiveaway.Oneofthemisanaudiobookofhisbrandnewbookandhe'sgoingtobegivingthataway.AndI'mgoingtogiveyoualinktothat.Ifyou'redrivingrightnowandyoucan'ttakenotes,youcanalwaysgettheshownotesandthePDFtranscriptionsofallmypodcastsatRealEstateInvestingMastery.com,RealEstateInvestingMastery.comgothere,gettheshownotes,downloadthePDFandreadthetranscriptionalotofgoodresourcesthere.

Joe: AndIalsofinallywanttosaybeforeIfinally,finallygetBrianon,pleaseleaveareviewonITunes.Ifyoulikethisshowandyougetalotofvalueoutofit,it'slikemytipjarIappreciateyou.GointoITunesorevengoingtoStitcher.Ithinkthosearetheonlytwoplaceswhereyoucanleavereviews,leaveareview,letusknowwhatyoulikeabouttheshow,whatyoudon'tlikeeven.

Joe: Andwe'dappreciatethat.Wereallywould.Allright,soBrianPagefromBNBFormulaisontheshowinthehouse.Brian,howareyousir?

Brian: I'mphenomenal.HowyoudoingJoe?


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Joe: I'mexcited.Good,reallygood.Iamhonoredtohaveyouhereasaguestonthepodcast.Brian,youknowwe'vegotpeopleandlisteners,I'mnotkidding.Wehavelistenersinover170differentcountriesthathavelistenedtothispodcastsinceIstartedit,eightornineyearsago.It'scrazy,youcangointothestatsandseewhatcontrolspeoplearelisteningfromandeverysingleepisode,there'satleastat30differentcountrieswherepeoplearelisteningtothispodcast.Sothere'speopleallovertheworldandeverybodylisteningtothis,nomatterwheretheylivehasheardofAirBNB,right.Andifthey'retraveling,they'reprobablystayinginanAirBNB.AndIrememberBrianwhenwefirsttalkedafewyearsago,Iwaswonderingatthetime,likemandidwemisstheAirBNBwave,youknow,hasthebubblepoppedisAirBNBdone?AndIrememberthinkingthattwoorthreeyearsagoanditisnot,it'sstrongerthaneverandI'mjustblownawaybythestoriesI'mgettingfromstudentsofmineandthataresaying,man,I'mturningtheseintoAirBNB’sandworkingreallywell.Sothanksforbeingontheshow.I'mgladyou'rehereman.

Brian: Well,thankyou.Iappreciatebeinghere.Andthatwasagoodconversationwehadontheplane.AndI'vealwaysbeenabigfanofwhatyou'redoingandhopingthatIcaninspiresomepeoplewithwhatI'mdoingonmyend.

Joe: Yes,Iknowyoucan,youalreadyhave,Ihadyouonthepodcastbefore,guys,BrianisthegotoexpertintheentireindustryforAirBNBstuff.Sowe'vegottheexperthereonthepodcast.Brian,wheredoyouliverightnow?

Brian: IaminbeautifulCharleston,SouthCarolina.

Joe: That'sright.That'sright.Okay,cool.Andwe'vetalkedbeforeaboutyourstory,butwouldyoumindtellingusagainwhatwereyoudoinginyourcorporateworldbeforeyouquityourjobandhowdidyougetintoAirBNB?

Brian: Sure,sure.Well,youknow,Icomefromrealestateinvestingbackground,soI'vedonetheflipsandthewholesalesandmultifamily,singlefamilyevendabbledinconstructionforalittlewhile.Ididallthatthroughtheearlytwothousands,and,kindofwentthroughthatwholebubblecollapsethatalotofyourlistenersprobablyparticipateinaswell.Andbasicallylostmy,myportfolioofpropertiesandkindofhadtostartoveragain.


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Brian: AndsoforquiteafewyearsIwasjustlookingforanewopportunity.Kepttryingdifferentthingsthatdidn'twork,didpickupajobjusttokindofmakeendsmeetbecauseIhadlostmostallofmywealthinrealestateduringthatcollapsedin2008.AndsoIwasjustlookingforthenextopportunity.Iwantedtogetbackintorealestate,butIwasn'tsurehowIdidn'treallyhavethecreditanymoreorthemoneytobeabletogobuypropertiesandIdidn'tknowifIreallywantedtobuypropertiesagainandyouknowthatkindofthing.SoIwasjustlookingforanopportunityandIwasmakingalittlebitofmoneywithaspareroominmyapartmentthatIrented.

Joe: Wereyouworkingafulltimejob?Wereyoudoingthisontheside?

Brian: Iwasworkingabout50hoursaweekatatechcompanyandIwasdoingmarketingforthemandthenIwouldjustkindofhavemylittleroomasmysidehustle.

Joe: Okay.Whatdoyoumeanbythatsidehustle?

Brian: Asidehustleiskindofanewtermthatpeopleusetodescribeanythingthattheydo,youknow,tomakemoneyontheside.Sosomepeople,theirsidehustleisUber,youknow,intheirsparetime.SomepeopledoAirBNB,somepeopleyouknow,dothingsonline.There'sallkindsofdifferentsidehustles.Sothat'skindofwhatIwaslookingforatthetime.Ididn'treallythinkbeyondthat.

Joe: Okay.Andsoyouwererentingaroomout.Didyouhaveanapartmentorsomething?

Brian: Yeah,Ihadatwobedroomapartment.Ihadaroommate,roommatemovedoutwithoutmuchnotice.AndsoIthought,well,youknowwhat,let'sputthatthingonAirBNBandseeifwecanmakesomemoneywithit.Anditdidandmademoneyrightaway.Butitwasn'tuntilIwasactuallyonaplane,believeitornot,anotherstoryofbeingonaplane,Iwasonaplane,Idon'trememberwhereIwasevenflyingtoo,butitwasalongflightandIwassittingnexttothisguythatseemedvery,verysuccessfulatleastwhen,youknow,theimpressionhegaveoffwashewasaverywealthyguy.AndwestartedtalkingandheaskedmealotofquestionsaboutwhatIwasdoingwithmylittleroomonAirBNBandIhadnoideawhythisguywasaskingmesomanyquestions,whyhewassointerestedinwhatIdid.


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Brian: Iwaslike,youknow,it'snotabigdeal.Andhekeptaskingthesequestionsandwhenweweredonetalking,hesaid,youknow,you'resittingonahugeopportunityhere.Iwaslike,wellhow,what'stheopportunity?Andhesaid,well,youknow,youcouldgetmoreoftheselistingsandstartscalingyourbusiness.AndIsaid,well,howwouldIdothat?Idon'treallywanttogobuyproperties.Idon'thavetheabilitytobuyproperties.Andhesaid,no,no,no,youdon'thavetobuypropertiesjustrentthem.Ifyourenttheseproperties,youcouldlistthemandyoucouldstartgrowingyourbusiness.Andthatoneidealiketransformedeverythingforme.

Joe: Washeaninvestorhimself?

Brian: Yeah,he'sactuallyheinvestsincompanies.Hebuysandsellscompanies,youknow,allthatkindofthing.ButhadnohehadnoinvolvementinAirBNBatallanddidn'tknowmuchaboutit.

Joe: Wereyouflyinginfirstclass?

Brian: Iwas,yeah.There'ssomethinghappenswhenyou'reinfirstclass,right.

Joe: Wellthat's,thatiscool.AndIstartedflyingfirstclasslikemostofthetimeaboutayearortwoago.Andit's,sojustnumberone,it'ssuperniceandcomfortable.Andyougetofftheplanemorerelaxed,moreenergizedandnottotallycompletelydrainedwherethelifegetssuckedoutofyousittinginthemiddlerowofsomethingintheback,butyoualsomeetsomefantasticpeopleandyougetalotofworkdone.

Brian: Iwasgoingtosay,that'sapivotalmomentformerightthere.andit'snotagroundbreakingidea,butit'sanideathatIcertainlydidn'thave.AndsoIjustIdidthat.Iwentoutandfoundarentalaroundthecornerandknockedonthedoorforrentsignonthefrontyardandtalkedtotheladyandsaid,Ihavethisharebrainedidea,willyouletmerentyourpropertyandputitonAirBNB?Andshesaidyes.AndsoIdidthat.AndIthinkImadeitrightaround$1,600myfirst30days.Wouldthatpropertythat'safterexpenseswerepaid.

Joe: Afterexpenses$1,600bucksnice.


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Brian: $1,600bucksonaonebedroom.So,youknow,comingfromarealestateinvestingbackground,I'dneverevenheardofthatkindofcashflowthatwasinsanebecauseIwasn'tmaking$1,600netonmytriplexorfourplexatthetime.Sothatkindofcashflowfromasmalllittleunit,Ithought,man,I'mreallyontosomethinghere.AndIjust,atthatpointIjustwentoutandgotasmanyrentalsasIcould.Ikeptaddingonerentalafteranotheranditbuiltintoareallybigincome.

Brian: Andthenfromtherepeoplestartedreachingouttomeandaskingmetokindofhelpthemandteachthem.Andbecausethere'sreallynobodyteachingitatthetime,onlineoranywhere.AndsoItaughtthemwhatIknewaboutscalingandautomatingandhowtodothisveryparttime,evenwhenyouhaveabunchoflistings.Andsothat,thatkindofledintomebecomingateacherandthensuddenlypeopleallovertheworldkindoflikeyousaid,Idon'thave190whatevercountries.Ithinkwe'vegotlike40countriessofarthepeoplearedoingthisin,butAirBNBisineverycountry,almostvirtuallyeverycountryonearth.Soit'saglobalopportunity.

Joe: Youknow,Itellafunnystorysometimes.IwasinMunichwithmyfamily,Ihaveawife,fourkids,andwewereonabiketour,bikingaroundMunich,Germany.AndIhadareservationon,IthinkitwasHomeAway,oneoftheproperties.Andtheladyneverrespondedtomeortheguywho,Idon'tknow,theyneverrespondedtometoconfirmthatIhadthispropertyreserved.Andit'shardenoughtofindaplacethattakessixpeopleandwedon'tlikerentingroomsweliketogetthewholehouse,whatever,right.SoI'mkindoffreakingout,youknow,and,andit'saboutthreeo'clockintheafternoonandwedon'thaveaplacetostay.Wehavearentalcar.AndIdidn'twanttostayinahoteleither.Iknowwecould'vegotone,but,sowhileI'monmybike,IopenuptheAirBNBappandwheneverIgointoanewcountry,Ijustgetasignupforaprepaiddataplanwithwhatevermobileproviderthatisthere,right.

Joe: SowhileI'mridingmybikeandI'minthebackof,mywife'sinthefront,kidsareinthemiddle.I'montheAirBNBappandI'mlookingforapropertytostayinthatnight.Andmywifedoesn'tevenknowyet.I'mjustthinking,I'mgoingtotrytogetthisresolvedandfixedbeforesheevenknowsaboutitbecauseI,youknow,Idon'twanthertostressedoutaboutit.Ifindaplacethatcantakesix.It'sitsownhouse,youknow,I'mreserveitandpayforitandallofthatrightthereonmyphone.Sheactuallyconfirms,repliesback,confirmsitandit'sdone.I'monmyphoneridingon


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abikeonabikeinthemiddleofnowhereinMunich,GermanyandIreservedthisplace.Theladywassupercool,youknow,likewegotoachurchhereinSaintLouisandchurchisimportanttous.

Joe: Andsocometofindout,shegoestothischurchandshegoestoareallycoolchurchinMunichthathas,thatsimilartothestyleofourchurchhereinStLouis.Butthentheyalsohave,it'sinGerman,butyoucanlisteninEnglish.Sothere'satranslatoryoucanputontheheadphones.SosuchacoolstoryandI'vealwayslovedthesimplicityofAirBNBbecauseyoucanreservethesethingssofastinanycountry.We'vestayedinAirBNB’s,inCroatia,inTurkey,intheCzechRepublicandsixdifferentcountriesthere,SpainandEngland.Soit'strulyamazing.ButIthinkBrianMaybesomepeoplethatarewonderinglike,man,isn'tittoocompetitivenow?Liketherearesomany,AirBNB’s,isittoolateformetogetinvolvedinanddothegamemyself?

Brian: That'saquestionIgetalot.What'shappeningrightnowwithAirBNBisthatthegrowthrateofthenumberofpeoplethataresigninguptouseAirBNBfortheveryfirsttimeisjustfarexceedingthenumberofhoststhatareavailable.Andyoucanseethisacrosstheboard,notjustintheUSbutI'lloverseas.Infact75%ofthelistingsarenotevenintheUSrightnow.Soit'sjust,mostpeoplethinkit'saonlyaUScompany,butit'sallovertheworld.Andwhat'shappeningisthatalthoughalotofpeoplehaveheardofAirBNB,ifyouasksay10ofyourfriends,howmanyofyouhaveusedAirBNBtostayinaplace?Usuallythatnumberisgenerallyverylow,thenumberofpeoplewhohaveactuallyusedit.SoawarenessofAirBNBintheuseofAirBNBaretwototallydifferentthings.

Brian: Andsowe'restillveryearlyinthegrowthphaseofhomesharingingeneral.There'sotherplatformsbesidesAirBNB.IlikeAirBNBit'swhatI'veusedandit'stheonlythingIuse.Butsowe'reseeingthatandthere'sabookcameoutthatcameoutrecentlycalledTheAirBNBStoryandinthatbooktheysaidthatthe,the,um,thenumberofnewuserssigningupeveryweekgetthis,it'snotamisprintisoveramillionpeopleaweekthataresigninguptouseAirBNBfortheveryfirsttime.

Joe: Nowthat'snottolistAirBNB’s,that'stolikestayhere.

Brian: Touseit.YeahtobookaplaceonAirBNB.Yes.Peoplethataresaying,youknowwhat,Idon'tneedtostayinahotel.I'mgoingtostayinanAirBNB.AndIcantell


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youthenumberofhostsisaminusculeamountcomparedtothatmillion.Imean,it's,yeah,it'slikethere'sonehostforevery20listingsthatarecomingonline.Soit'sdefinitely,we'restillwellintothegrowthphase.Andit'sbeenprovenby,youknow,I'vegotstudentsinevery,everystatearoundthecountry,everysizecity,smalltown,whatever.Andthey'rejust,theopportunityiseverywhere.It'snotinoneparticularplace,likeinCharleston,becauseit'satouristcity.Infact,I'dsaythevastmajorityofmystudentsarenotintouristtownsatall.

Brian: SoIwasjustdowninDallas,Texaslastweek,actuallymeetingupwithacoupleofstudentsandthey'reinDallas,FortWorthareaandoneofthemhasbeenastudentforninemonthsandhejustcrackedup$100,000inbookingsonAirBNB.SoinninemonthsafterworkingwithmeonmytrainingandI'vegotlotsofstudentsthathavecracked$100,000ormultiple,hundredsofthousandsandsoit'sthepotentialistheretoscaleittoreallyanysizethatyoulike.

Joe: NowaquestionthatIhaveislike,youknow,I'minSaintLouisandthere'scertainpocketsofSaintLouiswhere,youknow,allthecoolpeople,notthepeoplewithkids,youknow,whoaresuburbaniteslikeme,butwherethecoolyoungpeopleliveandyouknow,youcanfindalotofAirBNBsdownthere.BecausewhensomebodywantstocometostayinSaintLouisandtheywanttoseethearchandthebreweryandgoseeaCardinalsgameorwhatever,theystaydownthere.ButcanyoudoAirBNB’s?IstherestillademandforAirBNB’sinthesuburbsorineveninlike,youknow,let'ssayinSaintLouisandmedianhomepriceislike$150,000,okay.CanyoudoAirBNB’sinlikethehundredto$150,000range?Kindoflikethose,they'renotlowendareas,butthey'relikemiddleoftheroadareas.Makesense?

Brian: Yup.ThebestwayIcouldanswerthatis,anywherethatyoucouldrenttoanormaltenant,youcoulddoAirBNB.Infact,thepropertythatIjustwenttoinDallaswherethisgentlemanKenhashislistings.Actuallyhe'sgothislistingspreadalloverDallasandFortWorth.Itwasanondescripthouseinanondescriptneighborhoodinthemiddleofnowheresuburbsandhe'sdoingabout300%overhiscosts.Inotherwords,300%moreincomethanwhatitcostshimtorenttheplace.Andhe'sgotlistingskindofspreadout.Sothereisnorhymeorreason.It'sreally,ifthere'sahotelanywherenearorinthetownthatyouwereconsidering,thenthatmeanspeoplearepayingmoneytostayshortterm.Andwherearetherehotels?There'shotelseverywhere.


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Brian: Imean,youcanbeonthehighwayinthemiddleofnowhereandthere'sgoingtobeahotelateveryexit.

Joe: That'sagoodpoint.

Brian: Becausesomebodyneedstostaysomewhererightbythenight.Andhotelsdon'tjustbuildmulti-milliondollarpropertieswithoutdoingresearchtheyputtheminlocationswherepeoplewanttostay.Sotheshortanswertoitisitcanworkanywhereitreallycan.Andnowthedifferenceinwhatyoumakeisgoingtobewildlydifferent.Soifyou'reinacenterofacitythat'svery,veryhot,youthenyoumightbeabletocommand$300,$400$500anightormore.Ifyou'reinaluxuryproperty,you'regoingtocommandalotofmoney.Nowifyou'reinasuburb,kindofnothingspecial,maybeyou'llgetlesspernight.Butthenagain,therentsarealsoalotcheaperthere.

Brian: Sotheamountthatyoumakeistotallyproportionatetowhattheactualcoststorentthepropertyare.Soyeah,youcanmakemoreinnicer,moreindemandareasorhigherendareas.ButyoucancertainlyalsomakemoneyinjustplainJaneareas.Soyeah,youcandothiseverywhere.AndI'veseenstudents,eveninruralareasthataredoingquitewell.We'vegotonestudentinruralMaryland,he'slikeanhourandahalfoutsideofDC.Imeanthat'stheonlywaytodescribeit,it'strulyinthemiddleofnowhere.It'sabout6,000peopleinhiswholetown.Andhehasfivelistings,fiveAirBNBlistingsallbookedout.AndIwaslike,howintheworldareyoudoingthatinthemiddleoflikeasmalltownof6,000andhesaid,Brian,there'sactuallyzerohotelswhereIlive.

Brian: Sotheonlyplacepeoplecanstayisinahomesharingsituation.

Joe: Soyouknowwhostaysinthosehomesinthesuburbanareasorinthesmalltowns?

Brian: Goodquestion.Wellanybodywhoneedstogothere.Sosomebodythat'svisitingfamily,somebodythat'sconsideringmovingtothatareaandneedsaplacetostayforafewdaysoraweekwhiletheylooktomove.Therecouldbepeoplethatarethereforajob,youknow,they'recomingintemporarilyforajob.Imeanwhoknows,there'sallkindsofreasons,allkindsofreasonsthatpeopletravel.Theydon'tjusttravelforbusiness,theydon'tjusttravelfortourism.Theytravelforany


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reasonthatsomebodywouldstayinahotelisthesamereasonsomebodywouldstayinanAirBNBexceptthedifferenceiswhywouldyoupayxnumberofdollarspernighttostayinasingleroominahotelversusawholeplacewithtwobedroomsorthreebedroomsoryardorpooloryouknow,adrivewayandagarageandyouknow,allthethingsthatyouhavewithaunit,withanactual,youknow,residentialunit.

Joe: Yes.Weknowit'scrazybecauseIwasjustinGeorgetown,Texasabout,whichisanareanorthofAustinprobablyIdon'trememberevenamonthago.Andlookingfor,wewereeithergoingtostayinahotelorastayinahouse.Iwantedtostayinahouse.AndIhadahardtimefindingahomethatwouldaccommodateus.Wedideventuallystayinahotelforalongreason,butthatwaswhatalotofpeoplearedoing.Andyouknow,inaboutamonth,I'mgoinguptoAnkeny,Iowa.HaveyoueverheardofAnkeny,Iowa?

Brian: No.

Joe: It'salittlesmalltownnorthofDesMoines,Iowa,rightinthecenterofIowaforalittle,afamilyreunion,birthdaypartything.Andyeah,we're,we'restilltryingtofindaplacetogo,butifIfoundagoodAirBNB,they'reprobablygoingtodoit,right.Sothat'sgood.

Brian: That'sthething.Imean,theideaisasoldastimeitself,theideathatinfact,Imean,youlookatthebiblicaltimes,right?Peoplewerestayingininns,right.So,Imean,it'saveryoldconcept.Theonlydifferenceisnowwithtechnology,anythingcanbecomeaninnorhotel.Imean,even,evenyachts,peoplearecleaningup,takingyachtsandputtingthemonAirBNBbecauseyou'reallowedtodothat.I'massumingyouhavepermissionfromtheMarinayoucanmakeatonofmoneywithayacht.Youcantakeatrailer.I'vegotonestudentthattookanairstreamtrailer.Hedidn'tevenownthetrailerhejustapproachedtheguy,hadit,haditparkedinhisdriveway,andhesaid,canIrentyourairstream?Andtheguythoughtthatwaskindofodd.Hesaid,I'llrentitfor$200amonth.

Brian: Theguy'slike,sure.Herenteditfor$200amonth,turnedaroundandputitonAirBNBandhemakeslike$1,500amonthonthetrailer.It'snotevenhis.Soreallyanythingcanbemonetizednowtohavetogivepeopleaplacetostayonanightlybasis.Soitallowsyoutoessentiallybecomelikeanhotelier,exceptyoudon'thave


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toownthehotelandyoudon'thavetocomeupwithallthemoneytobuyahotel.And,andthat'sthecoolopportunitythere.It'snotjustlimitedtotownhousesorcondosorsinglefamilyhomes.

Joe: Wow.I'mlookinghereandAnkeny,Iowarightnow,andsomeofthesehomesare$200bucksanight,$300bucksanightinAnkeny,Iowacomeon.

Brian: Itjustshowsyou,youdon'thavetobookthecalendarupfully.Somepeoplearelike,well,whointhe,howintheworldamIgoingtogetpeople30daysamonthtostayinmyplace?Andit'snotlikethat.Imean,youcanbeprofitable15daysamonthifyouhavetherightcoststructureortherightpricethatyou'recharging.SowhatIteachpeopletodoistofigureouthowtomakemoneyevenwithouthavingtheircalendarfilled.

Joe: Solikethathouseinparticular,let'ssayit'sonlyrented$200anight.It'sonlyrentedhalfofthemonth.That's$3,000amonth.

Brian: Yeah.Solet'sdothemath.Howmuchwouldthatmortgageonahouselikethatcosts?Probablylessthanhalfthat.

Joe: Yeah,$1,500.

Brian: Atleast,maybeevenlessthanthat.Andsoyouthrowinacoupleofhundreddollarsforutilities,$200or$300forutilities.Soyeah,youknow,whatI'mseeingispeoplearewalkingawaywithatleasta$1,000dollarsamonthnetmostofthetimeifthey'redoingitcorrectly,butthatcangomuch,muchhigher,$2,000thousand$3,000thousandperunit.Soyou'retalkingaboutabusinessthatyoucouldstarttodayandwithinthenext30daysbegenerating$1,000incashflowroughlyperunitimmediatelywithouthavingtoputitdown,paintitdownwithouthavingtobuyanything,withouthavingtogointodebtwithouthavingtoanyofthatstuff.Nowifyouownproperty,great,Ihavenothingagainstowningproperty.Ifyouownproperty,youcandothisaswell.Butyouknow,theROIonputtingdownadownpaymentandafirstmonth'sdeposit,firstmonth'srentanddepositandsayafurnishedproperty,becauseIliketofocusonfirstproperties.Imean,it's,it's,it'sthroughtheroof.Imean,theROIisunbelievably,it'sbetterthananyotheropportunityinrealestatethatIknowof.


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Joe: Sosomebody'sthinkinghere,whywouldIwantto,well,whywouldanownerofahouse,maybeevenafurnishedhouse.Whywouldtheywant,whywouldtheyletmedoanAirBNB?Whydon'ttheyjustdoitthemselves?

Brian: Thatisthequestionthatstopsmostpeoplefromevenattemptingthis.AnditstoppedmeintheearlydaysbecauseIthought,well,thisisn'tgoingtoworkifIgotalktoowners.Buthere'swhatIfoundaboutowners.Anybodywhohasapropertyforrent,that'stheonlypeoplethatItalkedto.Hispeoplethatalreadyhaveapropertyforrent,they'relookingforatenant,okay.I'mnotkindoftrytoconvincesomebodythatdoesn'thaveapropertyonthemarket.SoI'mlookingforlandlords,theyhavepropertyonthemarket,they'relookingforatenant.AndIfoundthattheyonlywanttwothingsgenerally,andIknowthisbecauseIwasalandlordandhadlotsofrentals,isI'mlookingforsomebodythat'sgoingtopaytherentontimewithoutanyhassle,paytherentontime,andnumbertwotakecareofthepropertyandnotcauseanydamagesoranykindofrisktome,thosearethetwothingsI'mlookingfor.

Brian: Soifyoucanconvincesomebodythatyou'regoingtopaytherentontimeandthatyou'regoingtotakecareoftheirproperty,theywillconsiderit.Now,I'mnotsayingallownerswilldoit,butIdon'tevencareif,Idon'tknowifeightoutof10ownerssaynobecauseIcangolookat10rentalsinaweekendoroverthecourseofaweek,it'snothardtogolookat10placesthatareforrentandjusttalktotheowners.Andtwoofthem,itmightsayyesoroneinfivemightsayyes.Andsothat'swhatIdo.AndwhatItellthemisIsay,look,I'mgoingtotakebettercareofyourpropertythananytenantwouldbecauseatyourpropertyisgoingtobeprofessionallycleanedtwoorthreetimesaweekbymycleaningcompanybecauseIhaveto,youknow,makesureit'sinimpeccableshapeforthenextguest.

Brian: AndgenerallywhatIdoisItakecareoftheminormaintenance.Soanythingunder$100,Icoverthatfortheowner.SoItelltheowner,whenwasthelasttimeatenantfixedsomethingandyoudidn'thavetopayforit?Thatneverhappens,right.SoItakecareofthatkindofstuffandItellthemthat'sanotherbenefit.IgivethemmyreferencesofpeoplethatI'verentedfrominthepastoranyreferencesthatIhave.And,andIbasicallyputitalltogetherandIsay,look,thisisgoingtobeabenefittoyoubecauseI'llbethebesttenantyou'veeverhad.I'mgoingtotakeincrediblecareofyourproperty.Andthenthere'salsootherthingsyoucandolike


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insuretheproperty.It'sveryinexpensivetogetinsurancenowadaysforthiskindofbusiness.

Brian: Soyoucancoverthemforliability,youcancoverthemfordamagesifanythinghappens.AllthosethingsI'vethoughtofbecauseI'vemetfacetofacewithhundredsofpeoplekindofpitchingthemonthisidea.Andthere'snotthatmanyobjectionsthatpeoplehave.Andifyoucaneverovercomethoseobjectionsandsometimesyouevenhavetoovercomeanyobjections,peoplejustsay,sureI'lldothat.Ifyou,ifyou'rereadytorentitrightnow,let'sdothis.Andsothat'swhatitis.Youjustworkwithownersandyougivethemtherentthatthey'relookingfor.Youcanalsokindofsweetenthepotalittlebit.SooneofthethingsIliketodoissomebodysays,Hey,Idon'tknowifIwanttodothat.Andthey'reaskingsay$1,500amonth.ThenI'llsay,wellwhatifIweretopayyou$1,600or$1,700month?

Brian: Becauseitdoesn'tmattertome.Anextrahundredbucksamonthdoesn'tmatter.BecauseIknowthatpropertycouldbringinthreeorfourkamonth.SoI'llsaythattoanownerandthensuddenlythey'llchangetheirstoryreallyquicklyandbelike,okay,wellifyou'regoingtopaymore,let'ssignthelease.Sothat'skindofhowIdoit.

Joe: Somepeoplethinkthisiscrazy.I'mgivingyouthesesoftballquestions,Brian,Ihopeyouappreciatethat.

Brian: Givemesomehardballones.

Joe: Thisisagoodonethough.Thepeoplethink,wellyouknowallofthesepeopleinandoutofthehouse,that'sgoingtocausealotofmaintenanceproblemsandhassles.Explainwhythat'snottrue,it'stheexactopposite.

Brian: Okay,that'sagreatquestion.ThatissomethingI'vegottenfromownersislike,wellIwouldn'tdothisbecauseyou'regoingtohavepeoplepullingtheirluggageandnowthepropertycomingandgoingalltimesofthenight.Iwon'tknowwho'sinthere,who'sgoingtobeinmyproperty,allthosekindsofthings.SothisiswhatIwouldsaytoanownerlikethat.Iwouldsay,well,firstofall,Iwantyoutoknowthateverypersonthat'sgoingtocomeintoyourproperty,Iknowexactlywhotheyare.IhavetheiridentificationIhavetheircreditcardbecausethecreditcardis


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alreadyonfilewithAirBNB.Ithey'vealreadybeenvettedbyme.Iknowthatthey'dhavereviews.Iknowsomethingaboutthesepeoplerightnowwhotheyare,andsecondlyyouthinkitmightbemorewearandtear,butletmeexplaintoyouwhyit'slesswearandteartohaveshorttermguestsinthepropertyversustenants.AndIplaythislittlegamewiththeowners.Isay,okay,Iwant,Iwanttosaysomethingandyoutellmewhetheritsoundslikeatenantorsoundslikeaguest.

Brian: AndIsay,okay,somebodyputsasatellitedishontheroofwithoutpermission.Isthatgoingtohappenwithaguestthat'sstayingfortwonightsoratenant,right?Theanswerisatenant.Who'sgoingtoleaveacaronblocksinthedrivewayoroilinthedrivewaywhentheyworkontheircar.It'snotgoingtobeaguest.Who'sgoingtohaveadoginthebackyarddestroyingthebackyardoverthecourseofayeardiggingholesorwho'sgoingtopaintthethirdbedroompinkwithoutpermissionorwho'sgoingtohavetheirexboyfriendshowupatthreeinthemorning,kickedthefrontdoor?Andyouknow,thatstuffhashappenedtome.It'shappenedtoalotoflandlords.Itdoesn'thappenwithguests.Andguestsdon'tlookatthepropertyasifit'stheirown.

Brian: Theydon'tsay,thisismypropertyandIcandowhatIwantinit.Becausetheydon'ttakeownershipinit.It'snot,they'rejuststayingthereforanightortwo.Andso,youknow,there'sacompletedifferencebetweenguestsandtenantsandtenantsinmymindcanbeheadachesguestsgenerallyarenot.AndsoIexplainedthattoownersandthey'relike,ah,IseeIgetit,Igetit,Igetit.Andthenexplainittothem.Andthenalsotheyhaveaccesstotheirproperty.It'slike,heyMr.owner,youcangoinyourpropertyanytimeyoulikebetweenguests.Youcanwalkrightinandcheckitoutwhileourcleanersaremakingyourproperty,youknow,100%spotfree,youknow,cleanreadyforthenextguest.Andsowhenyouexplainittosomebody,you'relike,there'sactuallylesswearandtear,there'slesschanceofdamage,there'ssomanybenefitswithgoingwithguestsovertenants.

Joe: Wellyoualso,youknow,you'renotrunningthewasheranddryereveryday.

Brian: They'reveryrarelyyeah.Ornotusingthedishwasher,ifyou'reinaplacewherepeoplearegoingtogoeatoutalot,Ifindthatgenerallythey,guestsuselesswater,theyuselessutilitiesthanatenantwould,andit'sjust,Imean,there'sjustatotallydifferentthing.


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Joe: Youalsohavethecleaningcompanythatcomesineverytimeandtheywillbeabletospotwaterleaksoryouknow,you'llbeabletogetthingsyou'regettingthepropertyinspectedeverycouplethreedays.

Brian: Yeah.AndIhavemycleaningcrewthatwilltakecareoftheminorthings.Solikeifthetoilet'sclogged,theownersnotgettingacall.AndsoItelltheownerthat,I'mlike,look,I'mnotgoingtobethekindofpersonthat'sbuggingyouevery,everyweek,everymonthforsomepiddlylittlething.I'mgoingtotakecareofitbecauseIknowmyguestsarecheckingininthreehours,soI'mgoingtotakecareofthosethings.Anyminorthings,anymajorthingsyoucancover.AndIdon'tcareifI'vegottopayforthosethingsonceinawhilebecauseI'mmakingsomuchmoneyonthelisting.Andsotheownersarejustamazed.They'relike,Ican'tbelievelikeyoufixedmydishwasher.I'mlike,yeah,itwasa$50thingandwegotitfixed.They'rejustamazedthatIwoulddothosekindsofthingsandthey'relike,you'rethebesttimeI'veeverhad.

Brian: Andsothat,thatopensalotofdoors,right?Soalotofownersownmorethanoneunit.SoI'vehadmanyownersthatsayyou'vedonesuchanamazingjobwiththisunitandkeptitinthekindofconditionthatI'veneverseenbefore.I'mgoingtogiveyoumoreofmyunitswhentheybecomevacant.AndI'veneverhadanownersaytome,youknow,Brianthat'sthemostamazingidea.I'mgoingtotakeitoffthemarketrightnowandputitonAirBNB.I'veneverhadsomebodysaythat.Andeveniftheydidsaythat,I'dsay,good,goodluck.Goaheaddoit.BecauseIdon'tcare,there'smillionsandmillionsofpropertiesforrentallthetimecomingonthemarket.There'snolackofsupplyofrentals.

Joe: I'mlookingrightnowatapropertyinasuburbanareawhereIusedtolive.It'sathreebedroom,twobath,1,400squarefootranchinanicesuburban,beautifulgreengrassarea.Andthey'reasking$1,600amonthinrent.Soforthisneighborhoodthat'sprettygood.That'srightaboutaveragemarketrents.Anditlookslikethere'sfurnitureinthepictures.

Brian: Ohmygosh.Soundslikeaslamdunk.

Joe: Yes,okay.Sohowwouldyou,andthere'saphonenumberhere.Um,itlookslikeit's,it'sDavidwhoisa,withacompany.SoIdon'tknowifit'sapropertymanagementcompanyorleasingcompany.Whatwouldyoudowiththisadhere?


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Brian: Wellwe'regoingtogointothatindepthinthetraining.Likehowdoyouactuallygetaholdoftheowner,howdoyoufindthem?Mygeneralruleisyouwanttotalktoownersandnotthethirdparty.Youdon'twanttotalktopropertymanagersorrealtorbecauseyou'rejustgoingtogettherunaround.Youreallywanttotalkdirectlytotheowner.AndItalkaboutinthetraining,howtogettotheownerandgetinfrontofthemandthenexactlywhattosaywhenyougetinfrontofthem.Butyeah,Imeanthegeneralruleofthumbisanywherefrom200%to400%.Soifyou'relookingata$1,600rental,thatthingcouldbringinanywherefrom$3,000onupinactualbookings.

Joe: Soyoudodouble.Sosaythatagain.Howdoyoufigurethatnumberout?

Brian: 200%to400%generallyoftherent.Solet'stakearoundnumber.Let'ssaya$1,000dollarrental.A$1,000rentalwillmakesomewherebetween$2000and$4,000onAirBNBdependingonwhatareayoulivein.Sosomepeoplewerelike,well,whatifitdoesn'tmake$4,000?AndI'mlike,doesit,doesitmatteraslongasyou'remaking,you'remakingincrediblecashfloweitherway.Youcouldwalkawaywith,youknow,let'ssayutilitiesare$200.Solet'ssayit's$1,000unitutilitiesare$200becauseofthesmalllittlestudio,thenyou'retalking$1,200.Soifyoubroughtin$2,000,you'regoingtopocket$800.Ifyoubringin$3,000you'regoingtopocket$1,800andthenitcouldgoupfromtheredependingonwhatkindofareayoulivein.Sothat'skindofagoodruleofthumb.

Brian: Sosamethingifyou'relookingataluxuryproperty,Ijustsecureda$1.2millionpropertyinScottsdale,Arizonaluxuryproperty.Anduh,therentonthatisalmost$7,000amonthbutwe'reprojectingit'sgoingtobringinover$20,000amonth.So,youknow,yougotohigherend,Idon'trecommendstartinghigh,higherend,butyoucandoluxurypropertiesaswellandtherulestillapplies.

Joe: Doyoulikecollegetowns?

Brian: Ilovecollegetowns.Yeah.Ihaveseveralstudentsincollegetownsthatarekillingitbecausecollegetownsalwayshaveatransientpopulationthat'scomingandgoing.Professorscominginoutoftown,family'scomingtovisittheirkidsincollegeorcollegekidslookingatthecollege.Yeah,itcollegetownsareamazing.


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Joe: Youknow,let'ssayapropertyisa,there'sapropertymanagerthatyou'vegottotalkto.Youcanstilllikeleasethepropertyfromthepropertymanagerandthepropertymanagercanstayinplace,right?Butyoujustgottotalktotheownertogettheownertosay,yeah,I'mokaywithyouturningitintoanAirBNB.Isthatright?

Brian: Yes.NowtherearepeopleouttherethatwillsneakaroundanddothiswithoutpermissionIdon'tteachtodothat.Isayyouwanttogetitinwritingfromtheowner.Soaslongasyouhaveitinwritingfromtheownerthatthey'reallowingyoutodoit,thenyou'regoodtogo.Andthat,soI,youcancertainlydothat,goingthroughamanagementcompany,butmyexperiencereallyneedtogetinfrontoftheowner,thedecisionmakerbecausethepropertymanagementcompany'snotgoingtogotobatforyouorexplainitcorrectly,youreallywanttogetfrontoftheowner.

Brian: Butyeah,soandthenandthenyouknow,youdon'thavetoworryaboutsubleasingclausesandallthatcrapthat'sintheleasebecauseyoucanjustmodifytheleaseordowhatIdo,Iactuallygivepeoplemyleaseandtheycanjusttakeittotheownerandhavetheownersignitoryouuseanaddendum,somethingverysimplethatattachestotheleaseanditjustsays,youknow,basicallyinlayman'stermsitsays,Brian'snotgoingtoliveintheproperty.He'sgoingtohaveguestsstayinthepropertyandtheownerisawareofthatandisokaywiththat.

Brian: Andthenbeyondthat,Joe,we'reevendoingmonthtomonthagreementsnow,whichisgreatforpeoplethatdon’twanttocommitthemselves,they'relike,Brian,whatifIsignayearleaseandthisdoesn'twork?AndI'mlike,wellwhynotdomonthtomonth?Andpeoplearelike,wellownerswouldnevergoforthat.AndI'mlike,wellyoudon'tknowuntilyoupitchthemandifyoupitchthemtheidea,youcanalwaysofferthemalittlebitmoremoney,gettheminonthegamealittlebit.Soyousay,look,I'mgoingtotakeyourproperty,you'reasking$1,000rent.Ithinkit'sgoingtobringinbutmorelike$2,000whatifIgaveyou20%oftheprofits?

Brian: OrwhatifIcutyouinonsomeoftheprofitsonwhatI'mgoingtodo,it'snoextraworkforyou.AndtheonlythingIaskiswedoamonthtomonthagreementwithlikea60daynoticetoquit.Sothatwayyouhave60daysonthecalendarthatyoucanbookout,youknow,youdon'twanttoquitovernightifyouhaveguests.And


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sothenthere'snocommitment.There'snoriskreally.Imeanit'salmostlikezerorisk.Youcouldtestouttheirpropertyandifitworksyoukeeprentingfromthem,ifitdoesn'twork,nobigdeal.Sothere'sallkindsofwaystodoit.There'ssomanycreativewaystodoit.

Joe: I'mlookinghereinoneofthecollegetownsinMissouriandthere's353threeplusbedroomhomesforrent.AndactuallyifIjustsit,likesinglefamilyhomes,there's224andthat's.DoyouthinkBrian,ifsomebodytriedtomarkitto224rentals,theywouldfindoneofthemthatwoulddoanAirBNB?

Brian: MyworststudentthatI'veeverheardfrom,Ithinklookedatlike15maybe17togetoneyes.Imeanit'snotthathard.Imean,youdon'tevenhavetodothatmany.IfyoudowhatIteach,youcangooutonaweekend,lookatabunchofrentalsandyou'llgetoneperson,they'llsay,yeah,I'lldoit.Andit'snotlikeyou'reevenreallypitchinganybody.You'rejustsaying,heylook,thisiswhatIdoifitworksforyou,letmesignaleaserightnow.Ifitdoesn'tworkforyou,nobigdeal.Andthenyoujustleaveitintheircourtandsometimestheygetbacktoyouaweekortwoorsixmonthslater.They'vehadahorribleexperiencewithatenantinthere.Like,okay,Brian,I'mreadytodothis.

Joe: NiceIloveit.Heyguys,I'vegotmorequestionsforBrian,butIwanttoinviteyouallfirst.Nextweekaswe'rerecordingthisasyou'relisteningtoit.Wellitwillbecomingupsoon.I'mdoingalivewebinarwithBrianandI'mgoingtogiveyoualinkheretogogetsomemoretogetonthere.Andifyougotothislink,youcangetafreeaudiobookversionofhisnewbookthat'scomingout.AndifyougotoREIMPodcast.com/Brian.REIMforRealEstateInvestingMasteryPodcast.com/Brianandregisterforthewebinar.He'sgoingtobedivingintoalotmoredetailandteachingthiskindofstepbystepstuffthatwe'regoingtobe,thatwe'retalkingabout.REIMPodcast.com/Brian.Okay,cool.Brian,canIaskyouafewmorequestions?

Brian: Sure,absolutely.

Joe: Let'stalkaboutfurniture.Whatdoyoudowithastagingthehouseandyouhavetogobuyatonoffurniture?Whataretheoptions?


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Brian: Itrytofocusonfurnishedproperties.Ifyouknowhowtosearchproperly,youcanfindthemouttheredependingonwhatareayoulivein.Somehavesometownsandcitieshavealotoffurnishedrentalsandsomehavefewer.Butreallywhenyou'retalkingaboutfurnishedpropertiessometimestheirrentsarealittlebithigher.ButIdon'tmindthatbecauseit'ssomucheasiertogetthosethingslisted.SoIlovefurnishedpropertiesandIwouldsayabouthalfthetimeyoucanfindafurnishedproperty,theotherhalfofthetimeyou'llhavetofurnishityourself.AndIactuallyteachpeoplehowtodothatvery,veryinexpensively.

Brian: WhatIdoisIdon'tputanythingnewintheunitexceptfor,ofcourse,themattressesandthesheetsandtowels,youknow,Idon'twanttobegross,but,butfurniture,Iwould,there'snoreasonI'deverbuylikebrandnewtableorbrandnewcouch,thatkindofstuff.YoucangetthosestufffornexttonothingonFacebookMarketplaceandthosekindsofsites.AndIteachpeoplehowtodoitonthecheapandgettheplacefurnishedreally,reallyquickly.Andthenwhatyoudoisyougetthatmoneybackinyourpocket.

Brian: Soifyou'regettinga$1,000,I'mjustgoingtouseitanotherroundnumber,I'llsayit's$1,000.Soifyourusing$1,000fordeposit,$1,000dollarsforrent.Andsoyou'reputtingdown$2,000ktogetintotheunit,you'regoingtolookatputtinganother$2,000,maybe$3,000kintothefurnishings.Anditcouldbedonecheaperthanthat.Butthat'sjustsaythat'splenty.Andwhatyou'lldoisinthefirstmonthortwo,you'llgetthatmoneybackinyourpocketfromthecashflowontheunit.Andthenafterthatit'sgravy,everythingafterthat.

Brian: Sothat'stheideaisyes,youwouldhavetohavesomeinvestmentinit,butcomparedto,youknow,doingmostothertypesofrealestatedeals,theamountisvery,veryminimal.Andthenofcoursesomebodywantstobootstrapandsomebodysays,well,whatifI'mdeadbroke,Ihavenothing?ButthenIwouldsay,youshouldstartwitharoom,listaroominyourplaceorlistaroominsomeoneelse'splaceandlistitonAirBNBanddosomekindofprofitsharewiththemandmakesomemoneythatwaytosaveupforyourfirstlistingandthat'sifyouhave$0dollars.Andnowsomepeople,someofmystudents,whatthey'redoingisthey'redoingtheagencymodelwheretheydon'tevendoaleaseatall,theyjustapproachownersandsay,letmelistyourplaceonAirBNBandwe'lldoarevenueshareonwhateverwebringinandjustsignhere.


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Brian: Andthere'snoleasethere'snoagreementofanykind.It'sjustlike,it'slikeyou'reofferingaservicetotheowner.Andsothere'szerorisk,zerostartupcostsbecauseyou'reonlygoingtodealwiththefurnishedpropertiesifyoudotheagencymodel.Sothere's,there'swaystodoitthatway.Italkedtoagirl,hernameisTiaandshe'sinWashingtonstateandshe'sgotlikeninelistingsjustkillingit.Andshe'sgettingmoneyonthefrontendfromowners.Shetellsthemifit'snotfurnished,youknow,shetellshim,shesays,Iwillfurnishitforyouifyoupayforthefurnishingsandmyfeeis$5,000.Peoplearepayingit.Soshegetstogoshoppingforpeople,furnishtheirunit,gets$5,000inherpocketandthengetstomakemoneyonAirBNBwithapropertyshedoesn'town.Soshe'sreallymilkingit.Peoplearegladtodothatbecausetheirpropertyissittingvacantandnotmakinganymoneywithit.

Joe: Canyouleasefurnitureoristhatcostprohibitive?

Brian: Youcan.Ihaveneverattemptedit.I'mnotreallyfamiliarwithhowtoleasefurniture,butI'msureyoucould.Butyouknow,thewayIteach,it'ssocheaptogetfurniturenowadays.There'ssomanyappsthatyoucangetonyourphonewhereyoucanmakestupidlylowoffersonstuffwithoutactuallyhavingtotalktoahumanbeing.Youknow,likeFacebookMarketplaceorwhatever.Somebody'sgottheircouchontherefor$300bucksandyousay,I'llgiveyoua$100andpeoplesay,sure,comegetit.Soyouknow,lookingfornicequalityusedstuffthatdoesn'tlookusedthat'swhatIgofor.Peoplearealwayslike,wowyourplacealwayslookedsonice.AndI'mlike,yeah,it'sallcheapusedfurniture.Sothat'sit.

Joe: Whodoyouusetomanageyourproperties?

Brian: Well,there'sacoupleofdifferentwayswe'regoingtogointothatindepthinthetraining.Butyeah,basicallywhatIwantpeopletodoisoutsource95%ofthedaytoday.Sothere'sdifferentwaystodothat.Thereareservicesonlinethatcandothis.Youcanhireavirtualassistantasmanydifferentways,buttheideaisthatyoucouldhave10listingsallgeneratingcashflowforyouandstillonlyworkthreeorfourhoursaweektomanagethem.

Brian: Andmostpeopledon'tknowhowtodothat,whichiswhymostpeopleonAirBNB,thevastmajorityofpeopleonAirBNBonlyhaveoneortwolistings.Andinfact,it'slike99%ofpeoplethatusethesiteashostsonlyhaveoneortwolistings.Somy


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studentsareinthetop1%,I'minthetop1%.Iteachpeoplehowtogetthere.Andthat'sallaboutbuildingsystemsandautomating.

Joe: Soit'snotthathard.

Brian: No,it'snotthathard.Imean,there'snothingsupercomplicatedaboutthebusiness,butyoudoneedtoknowhowtostructureitthatway.Otherwiseyou'regoingtocreateanotherjobforyourself.Andpeopledon'twantto,youknow,youdon'twanttogetintoittocreateajob.Youwanttohaveasourceofcashflowinyourlifethatdoesn'trequirealotoftime.That'swhyyoudothis.

Joe: Canyoutalkaboutlegalissues?Alotofbigcitiesarecrackingdown,areclampingdownorputtingrestrictionsmightbeabetterwordonAirBNB’s.Whatdoyou,whatdoyouseeinthehorizonandhowdopeopleworkwiththat?

Brian: Sure,okay.SoAirBNBisamassivedisruptorbydisrupter,Imeanthatit'schangingtheentirelandscape,notjustforrealestate,butforthehospitalityindustry.Andwhenadisruptioncomesin,justlikeAmazonisdisruptingWal-Martandotherbrickandmortars,youknow,people,company’sfightbackandthesamethinghappenedwithUber.Youknow,IusedtobewhenyouwenttoVegas,youcouldn'tgetanUberbecauseVegas,allthetaxicompaniesweresopowerfultherethattheywouldn'tallowUber,butyoucan'tstopagreatidea.Andthat'sexactlywhathappenedwithUber.Theywonandnowthey'rethereandUber'sbecomeaglobalthingandthesamething'strueofAirBNB.It'soneofthosethingsit'sdisruptingindustries.Andthehotelindustryreallyisthreatenedbecauseit'sanewmodel,right?

Brian: It'satotallydifferentwaytotravel.Andsoincitieswhere,wherehotelsarepowerful,let'snamesomecitieslikeSanFrancisco,NewYork,someofthelargercities,theyarefightingtoothandnail.Andsomeofthesecitiesarewhatarecalledredzone.Theircities,Idon'treallyrecommendnecessarilydoingAirBNBin,butIhavestudentsinthoseareasthataredoingwell.Andyoumightbewonderinghowisthatpossible?Well,thewaythattheydoitistheysimplygoaroundtheredzones.Soifyou'rein,SayNewYork,forexample,NewYorkproper,it'sverydifficulttodoAirBNB’sinManhattan,butthere'snothingwrongwithgoingacrosstherivertoNewJerseyanddoinglistingsthere.AndIhavestudentsthataredoinglistingsinNewJerseyanddoingquitewell.Soit'sjustgoingtowheretheopportunityis.It's


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thesameway,ifyou'rearealestateinvestor,you'renotgoingtogointoaresidentialneighborhoodandopenahairsalonandit'sjustnotzonedcorrectly.

Brian: SothesamethingherewithAirBNB,yougottogowheretheopportunityis.SoliketheguyCamthatImetwithdowninDallas,Texas,Isaid,howfardoyoudrivetogettoyourlisting?Hesaid,45minutes.Isaid,wow,that'squiteadrive.Hesaid,no,Inevercomeherelikemycleaningcrewcomeshere,butIdon'tcomehereveryoftenatall.Sohewenttowheretheopportunityisandgotalistingthereandthat'swhatItellpeopletodo.Sodoesitworkeverywhere?No,itdoesn'tworkeverywhere.But92%oftownsandcitiesintheUSdoallowshorttermrentals.So8%don't.92%doandIjustteachyoutogotothat92%.

Joe: Wellthe,Iwastalkingtoonestudentaboutthisandshe,hercitydoeshaverestrictions,butshesaidit'snotabigdeal.IjustwentandIfiledapermitapplicationandtheyapprovedme.Soshefoundoutinhercitywhattherequirementswerejustwentandmetthem.Andeverytimeshegetsanewproperty,shehastogorefileforanewapplication.It'snotabigdealshesaid.

Brian: Yeah,yeah.Andthat’sabsolutelytrue.That'snotevenwhatIwouldconsideraredcity.Aredcityisonethat'sjustreallynot,it'sreallynotallowedatall.And,butthefunnythingis,eveninthoseredcities,onlyhalfofthoselocations,thosetownsandcitiesareevenenforcingtherules,soI'mnotsayingwillbreaktherules,I'mjustsayingthattownsandcitiesarenotevenenforcingtheirownruleswhenitcomestothis.Sopeoplearestilldoingit.

Brian: Andifyouwant,ifyouhaveanydoubtsthatit'sbeingdoneintheseplaces,justgopullupanycityintheUSIdon'tcarewhatcityitis.LookinNewYorkCity,lookinManhattanandyou'llbeshockedatthenumberofAirBNB’sthatarethere.Sotherearepeoplestilldoingit.Ijusttellpeople,look,ifyouwanttobuildarealbusiness,don'tdoitinaredcity,doitaroundthemornearby,youknow,doitsomewhereelse.AndI'vegotstudentsnowthataredoingitinmultiplestatesandevenmultiplecountries.

Joe: Orjustdoitas,haveamonthtomonthleasewiththeseller.

Brian: Yeah,absolutely.


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Joe: Askforforgiveness,notpermission.Ididn'tsaythat.Ididn'tsaythat.Igotoneortwomorequestionsforyourealquick.Brian.Um,you,weweretalkingontheplane,youwereworkingonrehabbingahouse.

Brian: Yeah,we'redone.We'redone.We'redonewithit.SoIdecidedto,youknow,allmylistingsuptothispointhavebeenrental,leaseproperties,butIdecidedtojumpbackintothegame,um,thistimewithoutanydebt.SoIgotacheapfixerupperinlet'ssayatransitionalneighborhood.It'snotaveryniceneighborhood,butitdoesn'tmatterbecauseIknowtheROIonthispropertyisgoingtobeoffthecharts.It'sgoingtobeinsane.Infact,there'ssomedatacompanieswhereyoucanpullupanactualaddressandit'lltellyouwhatitcouldprobablymakeonAirBNBit'sreally,reallycool.Sowedidthisonthispropertywejustfinishedrehabbingit.AndletmejustgiveyousomenumbersbecauseIknowyou're,Iwouldn'tnormallygivethesenumbers,butIknowyourlistenersarerealestateinvestorsandtheylovenumbers.Sohere'sthenumbers$44,000,Ipurchasedthepropertyfor$44,000,whichisreally,reallycheap.It'saboutthecheapestthingyoucouldfindanywhereinthiscounty.

Brian: WasthisintheMidwest?

Joe: No,it'srighthereinCharlestonarea.$44,000Iputanother$40,000intoitrightaround$40,000soabout$84,000allincompletelyrenovated.Everysinglesystem,theroof,theplumbing,theelectrical,theeverything.Kitchen,bath,flooring,youknow,younameitbasicallylikeanewhousenow.So$84,000intoit.Andwebelievethispropertyisgoingtomakearound$35,000ayearnet.

Joe: $35,000ayearnet.

Brian: UhHuh.OnAirBNB.

Joe: That'susinga...

Brian: We'reonlygettingcharged,we'reonlygoingtocharge$100to$140anightforathreebedroom,onebathhouse.Sosomebodycomingtothearea,itneedsathreebedroom,onebathhouse,they'reonlygoingtospend$97to$140andweexpectoccupancytobeuparound90%to95%sobasedonthosenumbers,we'regoingtobringinabout$3,000amonth,somewherebetween$2,500$3,000soIthinkitbe


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around35,000kamonthayear.Soyou'relookingattakingaproperty,renovatingit,atleastthat'swhatIdid.Youdon'thavetorenovate,butIdecidedtorenovateandbasicallypayingitofforgettingyourmoneybackinlessthanthreeyears.SotheROIonthatisjust,it'soffthecharts.

Joe: Soyourgoingto,waitasecond.You'regoingtopayitfromtheprofitsinthreeyearsandhaveatotallyfreeandclear.

Brian: Well,Ipaidcashforitsoit'salreadypaidoff.Butifsomebodyweretoborrowallthemoneybecauseit'slow,Iwanttosaylowincome,butlet'ssayit'saveryinexpensivearea,it'sgoingtobeeasiertopayoffacheappropertythanifIhadboughta$300,000property.Now,yes,I'mnotmakingasmuchpernight,butIdon'tcareaboutthat.I'mjustlookingattheROI.AndsonowI'vetakenapropertythatifIhadborrowed,Iwouldhavepaidoffinthreeyears.AndnowIhave$35,000ayearforlifeonthatpropertyfromAirBNB.Soit'sjustunbelievable.Imean,Iknowthenumbersoundscrazy,butyoucandothemathevenat$100anight,30nightsamonth.IfIbookedeverynight,that's$3,000amonth,right?

Brian: ButI'mactuallyplanningtodomorethana$100dollarsanightandwork.Andwhenyoucrunchallthenumbersthatyou'relookingatseriousincome,andso,sothatjustshowsyouthatyoucandoAirBNBonthevery,verylowend.YoucandoAirBNBontheluxuryhighend,youcandoAirBNBinaspecialtouristarea.Thisisnoteveninatouristareaandit'sintheCharlestonarea,butit'snotanywhereinthehistoricareaoranythinglikethat.Sothat'spotentialforyourealestateinvestorsoutthere.Youcanbuildequityandwealthsomuchfasterwiththismodelthanyouevercouldwithalongtermtenant.

Joe: That'sawesome.Really,reallycoolguysyougottogetonthewebinarifyou'renotconvincedalready,okay.GotoREIMRealEstateInvestingMastery,REIMPodcast.com/BrianagainREIMPodcast.com/Brian.Andlisten,we'reonlygoingtohavethiswebinarupforoneortwoweeks.Sohopefullyyou'relisteningtothisbeforethatawebinarisgone.Butgottocheckthatout,REIMPodcast.com/BrianandBrianissomebodylisteningtothisaftertheWebinar'soveranddone,what'sagoodwaythattheycangetaholdofyouordoyouhaveawebsitepeoplecangotogetmoreinformation?


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Brian: Yeah,absolutely.SomywebsiteisBNBFormula.comBasinboy,NasinNancy,Basinboy,justlikeAirBNB.SoBNBFormula.comandgothere.AndIjustwanttosaysomethingreallyquicklytoJoe.Thisaudiobook,IwroteabookcalledSixFiguresinSixMonths.Andthat'sbecausemystoryisIdidoversixfigures,$117,000myfirstsixmonthsonAirBNBandwithout,withoutowninganyproperties.AndsoIwroteabookaboutit.Andsothisbook,thisaudiobook,Isellfor$29online,butI'mjustgoingtogiveittoyouforfree.I'veneverdonethisbefore.Actually,thisisthefirsttimeI'veeverdonethisforanybody'saudience.Sotheywillgettheaudiobookwheretheycanimmediatelystartlisteningtomystoryiftheywantustoitbeforetheycometothe,cometothewebinarandthetraining.

Brian: Andsothatwouldtellyoumystory.I'llgiveyoualittlebitofbackgroundonhowIdidthisandIkindofshareallmynumbersandthatkindofthing.SoI'lljustgivethattoanybodywho'slisteningrightnow.AndthenwhenyoucometothetrainingwithmeandJoewillgointothisindepth,I'mgoingto,I'mnotjustgoingtoteachlikeconcepts,I'mgoingtoshowyouthelistings.I'mgoingtoshowyouthephotos,I'mgoingtoshowyouinsidemyAirBNBaccountsandseehowmuchIearnoneachoneofthem.I'mgoingtotellyouthewholeprocess,starttofinish,howIautomateeverything,allthatkindofstuff.Andbasicallyhowyoucouldgogetyourfirstlistinginthenext30days.Andifyouwanttogetyoursecondlistinginthenext30daysyoucouldpossiblydothattoo.Ihavesomestudentsthatgettwolistingsinthefirstlikemonthortwo.Soit'sreallyjustuptoyouhowfaryouwanttogowithit.Butdefinitelydonotwanttomissthistraining.

Joe: Verynice.Awesome.Wellcool.AndyouthinkyouwanttosayBrianbeforewegojusttoclosethisup?

Brian: No,Joe,I'mabigfanofyours.It'sgreattofinallymeetyouinpersonontheplane.AndI'mlookingforwardtothistrainingwe'regoingtodoandseeifwecanhelpsomeofyourpeoplestartearningbigonAirBNB.

Joe: Yeah.Thisisreally,reallyimportantguys.Andthere'snobodybettertoteachitthen.Brian,I'vebeenthroughhiscourseit'sphenomenal.It'sverythoroughandIdon'tknowanybodyelsethatteachesthisthathasdonemoredealsthanBrianandI'msurethereare,butthatteachesitaswellashedoes.Nope.Imean,thecoolthingaboutBrianasIwastalkingtohim,hewasbraggingabouthowmany


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studentshehasthatdowaymoredealsthanhedoeswaymoredealsthanhehas,right?Andhewasbragging...

Brian: Theyblowmeaway.Imean,that's,that'sanamazingthingandthey'vejustabsolutelyblownawaywhatI'vedone.Andsothat's,youknow,what'sreallyimportantinanymentor,Ithinkisfindingsomebodythatyoucanteachyouinawayyoucanunderstand,butthenfindingsomebodyalsothat'sgottenresultsforotherpeople.That'sthemostimportantthing.

Joe: Verygood.Allrightguysonemoretime,REIMPodcast.com/BrianyoucanalsogettheshownotesatRealEstateInvestingMastery.com.Getthetranscriptionaswellofthispodcast.Thishasbeenreallygood,Brian.Iappreciateyoubeingontheshowandyouguys,ifyoumissedthewebinaroryoucangotojustaBNBFormula.comtogetmoreinformationaboutBrian,BNBFormula.com.Cool.Thankyouverymuch,Brian.Wewilltalktoyoulater,man.

Brian: Thankyou,Joe.Appreciateit.

Joe: Seeyouguys.We'llseeyoualllater.Bye.Bye.

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