Brian Page created Airbnb Formula to give people the necessary tools to live rich while working less. He claims that you can be financially independent on Airbnb without the need to purchase a house. Basically, he suggests that you can become a real estate investor without owning a single real estate property. Is the business model offered by Brian worth it? Know the answer by reading this Airbnb Formula review below.
AirBNB Formula is an 8-week virtual masterclass that discusses how to start an Airbnb business without the need of owning a single property. Basically, it suggests rental arbitrage which means you lease a long-term rental (LTR) on a property, then you list it on Airbnb to re-rent it out on a short-term basis. It was founded by Brian Page, a real estate entrepreneur and host of the Digital Titans podcast.
The main training course is broken down as follows: Week 1 module titled preparation is all about planning, proper use of productivity tools, and efficient scheduling. Next is week 2 module titled Partner which suggests outsourcing many of your business’ day-to-day tasks. Week 3 module titled Identify is discussion on how to find the properties you can sublease. Week 4 module named Stage shows techniques to give guests a better quality of accommodation compared to their expectations for little to no cost. Week 5 module named List cover topics on how to create your own property listings and setup your calendar in the best way possible. Meanwhile, week 6 module titled Start-up discusses the most important thing to note and simplify during the first 30 days of your Airbnb biz. Week 7 module titled Automate discuss what the title suggests so you can live your life on your own terms – earning full-time income while only working part-time. Lastly, week 8 module titled Rinse and Repeat is compilation of tips and hacks on how to keep your business sustainable and scalable.
The main training 8-week training course requires you to pay $2,000 upfront. To be fair, the program offers a 30-day money back guarantee, but it is still quite expensive for my taste. There are also allegations of upsells and pressured selling of services outside the necessary training course which is not ideal.
To add, there is a huge risk of operating at a loss using this business model. There are times when you cannot sublease a property which is bad since you are still paying the landlord for LTR and the salary of your employees that you paid for outsourcing the business’ day-to-day tasks. The course suggests the said outsourcing to make your work less tedious, otherwise the business will require a lot of work from you. You will also shoulder the cost for maintenance and repair (usually expensive) if something breaks under your LTR.
There are also concerns if there would be landlords who will agree to such business at all. A commenter in an Airbnb forum suggested that not only few will agree on this setup, but it is also frequent in the UK to have a legislation or a contract clause which restricts subleasing especially short-term rentals (STR). In most cases, it is also a ground for eviction. To add, the bans on STR is also gaining popularity on the US. Overall, what you really need to rent a property and use it for Airbnb is not an overpriced course but a very rare opportunity – a place without any legislation that bans it and a landlord that will also allow it.
There is no sufficient evidence to say that Brian Page and his Airbnb Formula is a scam. In fact, Brian Page is a legitimate real estate investor who has been featured in Inc Magazine, Forbes, and Entrepreneur. He is also the founder of Page Fund, a commercial real estate financing firm for accredited investors. This shows that he is knowledgeable in the field of real estate. Still, I do not advise to sign up for his course since it is overpriced and offers a business model I am not inclined to recommend. If you are really interested in the said business model, it is also much better to learn from free YouTube tutorials first and discussions on AirBNB forums since the AirBNB Formula is not that extensive at all.