Today’s REI Classroom Lesson
As Duncan Wierman explains, you can start off small by renting a single room in your current property and earn a decent profit quickly. As your capital grows, your opportunities to rent more space increases. This brings more profit to your wallet.
REI Classroom Summary
Duncan shares some of your options, depending on the amount of capital you currently have. From having no money to having thousands of dollars, there are options available to you.
Listen to this REI Classroom Lesson
Real Estate Investing Classroom Show Transcripts:
Mike: Welcome back to the flipnerd.com REI Classroom where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.
Duncan: Hello, everybody. My name is Duncan Wierman from duncanwierman.com, and a rockstar of Airbnb. I’m hosting today REI Classroom, and today’s topic is, how much money do you need to get started?
Mike: This REI Classroom real estate lesson is sponsored by theinvestormachine.com, FlipNerd’s private investor coaching program and your blueprint to investing success.
Duncan: I tell you this is a great topic because you can get started from as little as nothing, all the way up to a few thousand dollars to getting into this business, and making a ton of cash. So using Airbnb really is the easiest way to start making extra money in your spare time.
And the beauty of it is that you could actually make a six figure income with it or you can just make a little bit of extra pocket change. It’s really up to you to set and define what your financial goals are. But if you’re like a lot of my students when they begin, they’re just looking for a way to make a couple extra hundred dollars a month to pay off some debt.
Well, I tell you what, my students get involved in this, and they’re overshooting in their goals by thousands of dollars in the first month. So we have a couple of different business models that people can choose from, and that lets them decide how they can begin.
So the first question to ask yourself is, how much capital do you have to start to work with? Keep in mind that it’s very common to make $1,500 per month by just letting out one room. So this investment pays for itself very, very quickly.
So let’s talk with the no money to get started. Well, surprisingly even, if you have no money to start with you can actually begin by offering a reservation management services to other people who will let out their house.
So you simply approach other people who have an extra room and need extra income, and you help rent out their rooms, marketing their space and sending guests their way. And you can charge a one-time listing setup fee of $500 and take 20% from all their bookings so, that way they get more bookings and you make more money. It’s a win-win.
So the next way is if you have $100 to $500 as a start. So you can rent rooms out like an empty space in your current home or apartment, or you can buy an air mattress, a futon, a pull-out couch or even anything really, and you can start renting it out tonight if you have any of those, so it doesn’t need a lot. You need some clean, fresh bedding, and you’re good to go.
So experience is showing that you’ll actually get your first guest within 24 hours and put money in your account within the first seven days. So that’s pretty good quick cash. So let’s say you now have a $1,000 to $5,000. So with as little as $1,000 you can furnish and theme out three or four guest rooms in your home.
And with a little creativity, I’ve known people to put up tents in their backyard with an airbed. They put mattresses in their shed, put some patio furniture out with twinkle lights to create a garden oasis. It’s really crazy. I think probably a lot of you have a timeshare you’re not even using. You can even get free timeshare on the secondary market.
People on craigslist and eBay give this stuff away, and you can simply put that $1,000 into paying your first year’s maintenance fee, and you can rent it out for $2000, $3000, $4000, $8000. So you can quadruple your money very, very easily.
How about all you people who do rent to own homes? You know instead of renting them out to long term tenants, never again. Take those rent to own home opportunities and turn them into short-term vacation rentals. The cash flow is absolutely ridiculous.
So if you have lots of money, from $5,000 to $25,000 and you find that there’s an ideal property that would make for a good guest stay on Airbnb, go lease it out and turn that into a spectacular thematic experience for somebody, and put it on Airbnb. I can tell you that it’s going to rent because everybody is looking for an experience. They don’t want a hotel room. They want something different.
So guys, Airbnb is really a phenomenal way to start up making some extra cash even if you have no dollars to mega dollars. Start looking at that as your next investment best use real estate vehicle.
So once again my name’s Duncan Wierman, if you want to find out more, what I’m doing with Airbnb go to doubleyourrentalincome.com. And once again, I’m your host of REI Classroom and look forward to our next edition.
Mike: Are you looking to change your life through real estate investing? If you’re interested in either getting started or taking your business to the next level, please check out FlipNerd’s private program at theinvestormachine.com. This is the most robust real estate investor coaching, networking, and mastermind on the planet and designed for your success.
If you’re ready to roll up your sleeves, ready to take personal responsibility for your own success, and ready to dive into a world class instructional coaching program that provides you step by step instruction to help you achieve financial freedom, then you should apply today. Spaces are limited, and candidates are only considered after an application and interview process. Our 12-month investor program is unparalleled. Think you might be a fit? Learn more today at the investormachine.com.
Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of flipnerd.com or any of its partners, advertisers, or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
Are you a member yet of flipnerd.com, the hottest real estate investing social community online? If not, you can join for free in less than 30 seconds and get access to hundreds of off-market deals, vendors in your market to help you and your business, and you can start networking with thousands of other investors just like you. Get your free account now at flipnerd.com.
Please check out the FlipNerd family of real estate investing shows where you can access hundreds of expert interviews, quick tips, and lessons from leaders across the real estate investing industry. They’re available at flipnerd.com/shows or simply search for FlipNerd in the iTunes store.