March 4, 2020

Episode 16: This Should Make You Excited About STRs

No Responses
Economic and Market conditions

How to build an Airbnb business: This Should Make You Excited About STRs

The world is changing and so is the way that people travel. 100 years ago people were riding horses to many of the cities and towns where we now operate short-term rentals. Traveling is now easier than ever and the way we live is changing as a result of that. As investors in short term rentals we are in the perfect position to take advantage of the trends but we need to position ourselves appropriately.

6 people check into Airbnb every second
Remote Airbnb location
How learning is changing
Becoming a part of our changing future

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Welcome to short term rental riches will discuss investing in real estate but with a specific focus on short term rentals quick actionable items to acquire manage and scale your portfolio I’m your host Tim Hubbard.

We are back things are changing and we want to be in a position to take advantage of these changes so let’s dig in a little bit about how and why things are changing and how quickly they’re changing when I see changing I’m talking mainly about the way we live the way we travel which is directly related to Airbnb and as a real estate investor it’s directly related to us we can be a fantastic spot. Every second. 6 people check into an Airbnb. Every single second. And you know that. Only a little over 10 years ago no one. Was checking into an Airbnb because it didn’t exist.

Isn’t that amazing $80000000000. Was paid out $80000000000 last year to hosts that’s a big number that’s a big number and 1.6000000000 this is according to Brian Chesky in a recent interview he’s a co founder of Airbnb and so this is directly from him 1.$6000000000 were paid out in taxes. Now why is that exciting. Well because those taxes were paid to governments that happily took the taxes and didn’t really have to do anything to earn that 1.$6000000000 think about it they didn’t have to build a hotel they didn’t have to create some new business or hired thousands of people they made that 1.6000000000 because there are a lot of people staying in their babies and Airbnb has partnered with 500 cities if someone stays in Airbnb in any one of these cities. Airbnb will pay the taxes to the government automatically. So that’s pretty exciting and I find it really hard to believe that any of these governments that’s just raking in the dough from something they didn’t really have to do a lot of which are already struggling financially and they need more money for infrastructure and to improve the city I find it really hard to believe that they might just turn that off I don’t think that they will and I know that people are not going to stop traveling this way because the world is changing.

I just stayed in a tiny house for the first time and I guess I should mention this because I think it’s relevant not just because it’s a tiny house or that it’s an Airbnb but I think it’s relevant to know where it was I’m down here managing in Columbia and I drove my little old school Montero. About an hour out into the middle of nowhere. Santa Elena what’s up the middle of nowhere but it’s definitely much more remote than it is here managing and I stayed in this tiny house. Which I think I paid 70 Bucks or something like that and now I think this is really important because that was not possible. Or so it wasn’t possible before Airbnb NASA 1012 years ago but to look back you know 1520 years ago at the idea of a gringo in Columbia to drive his little jeep out in the middle of nowhere and rent an Airbnb that probably just wouldn’t have happened. And that’s everywhere I mean there’s Airbnb is in short term rentals everywhere in the whole world 0 in 91 countries they’re in right now and I just do not see it stop and I thought that was really cool going out there it was a cool place to and and actually on the return side of this thing whoever owned that property is making a killing because the property itself must not of cost more than I don’t know like 15 or 20000 no joke and they’re making 70 Bucks a night $2100 a month if it stayed fully occupied that’s pretty darn good it’s amazing no we just have these options.

Everywhere all around the world I didn’t have to plan a lot of things out I mean they sent me all instructions I was able to read reviews from dozens of other people that already stayed there so that made me feel more comfortable actually was a recommendation from another friend and I had a great time and so I left a good review and that is how the cycle works with the short term rentals more and more people are discovering short term rentals still I think honestly ladies and gentlemen we are in the first inning maybe the second any and I mean this thing is just getting started.

It’s tough to to focus in on all the doom and gloom in the potential recession coming in and all of those things without seeing the bright side but there’s 2 sides to everything and. The side for short term rentals and investment opportunities it’s super excited I’m excited I’m excited talking about right now so why else well what what are some other reasons why I just think that this is not gonna stop wall the way people are living is different. We’re settling down later especially for millennials which is the biggest demographic in the U. S. and we’re valuing things differently we’re valuing experiences more than we are material things and this is evident in these tiny homes the way that a lot of properties are being furnished now minimalism there’s a whole movement behind the US and that is changing the way that we live and how long we live in one place for valuing experiences were valuing things like travel it’s going to keep on going and now we’re also we’re working differently so whereas in the past maybe let’s just say we value experiences just as much in the past but maybe we weren’t experiencing as many things because we couldn’t financially we couldn’t take our computer with us and connect to the internet 20 years ago in some remote little spot of Columbia and work from our laptops it was just yeah it was a very possible and now you can do that the the whole you know Tim Ferriss 4 hour work week really spawned a lot of this to where the digital nomads where.

Our digital we work offline Amer nomads were not leaving anywhere permanently for a long time maybe extended stays you know for several months at a time. But are you going to be buying a property to live in it several months at a time most of the people aren’t and that’s where short term rentals are going to continue to play a really big role and are going to continue to be an awesome investment for us real estate investors what else is changed well the way we’re learning is changing too what if I told you that everything every bit of content I’ve ever sat on this podcast during my events or online came from YouTube would you be mad Kimmel from YouTube obviously I’ve done a lot of trial and error and that’s that’s really my goal we had this podcast is that you guys can learn from that but I do learn a heck of a lot from you tube and it’s also current you know if if were enrolled in college a lot of times as classes that were taking in and I’ve gone through all the formal education to what times are outdated it can take a while for those to get approved you know sometimes a year for a class to get approved and if we were.

Teaching specifically about the short term rental industry I could tell you that a lot has changed in a year and it will continue to change so the way were learning is changing too you know the demand is there Airbnb and that’s just Airbnb there’s lots of short terminal platforms paid out 80000000000 last year every second 6 people stay in an Airbnb. We can talk about the Olympics this is this was really interesting when Rio de Janeiro had the Olympics 85000 people went in that was made possible because of Airbnb they don’t have that many hotels and actually the Olympics is recognize this and now they’ve partnered with Airbnb and they’re only going to be. Having the Olympics in cities it can guarantee an extra 40000 rooms. Incredible every image change the world. Change experiences we have it’s changed the way and how long we live in certain places and it’s also created amazing opportunities as real estate investors. So there’s not a lot that we can accurately predict about the future with 0 percent certainty really there’s not hardly anything but there is one thing that we know and that’s that the future will be different and we’re seeing that now we are seeing that take shape right now the way that people are living. Is changing. And hopefully as excited as I am to be on the other end of this transient living where were moving around a lot more hopefully years excited as I am to be on the other end of that is a real estate investor and to provide those accommodations.

So it’s not all doom and gloom folks there’s 2 sides to everything there’s a lot to be excited about have a wonderful day. Want to get on the fast track to financial freedom through short term rentals what all searching the properties you. You want to make sure that you acquired the right properties I want to give you my. Yes that there is no charge to my gift to you for being one of our subscribers the rest methods.com R. E. S. T.. methods.com.