Jorge Contreras believes that AirBNB is the most effective for earning money while being able to quit your daily -95 job, essentially giving you financial freedom. Because unlike the others like eCommerce and stocks/forex/crypto trading, which require lots of capital and experience to truly succeed. AirBNB is easier and more accessible to get into, while still having the potential to earn more. In fact, according to his own mentoring program, “The Real System“, he claims that you can start to earn passive income using AirBNB, even if you don’t own any real estate property. How is that possible? Scroll down for more on Jorge’s AirBNB strategy.
The idea here is that you need to get in touch with landlords who are willing to let you rent their properties so you can set up your AirBNB business with them. How do you find one and get in touch with them? Jorge prefers using the Zillow platform. The Zillow online platform allows you search for properties that are being advertised, hoping to find a long-term tenant. As for the qualities that you should need to look for, look for properties that are located in a cool spot that offers good accessibility for tourists, and also something that is fully or partially furnished. Once you’ve reached out to the landlord, you can offer them one of two things.
One, tell them that you’re going to set up a short-term vacation rental business. You then ask if they are interested in making more money without having to work too hard on it. Basically, offer them to do “co-hosting” with you for the business. You run Airbnb for them. You don’t have to pay rent or a deposit. There is no need to buy furniture or equipment. You provide a service, while they provide the property, and then you split the profits as per agreement. Do not try to close the deal on the phone. Invite them to say yes to a face-to-face meeting where you can close the deal.
Two, you can do what is called “subleasing.” It goes like this. You rent the property from the landlord. Let’s say they charge you $1500 a month. Then you list the property on AirBNB. Let’s assume you can earn $3,000 per month for doing it. You pay the rent to the landlord, and then you have a $1500 difference in your pocket. Basically, you become something like an “AirBNB Bank.” You’re taking advantage of other people’s properties in order to create a good stream of passive income, while greatly reducing your risks.
If you find the right property for this, any monetization method will work. Also, you’ll need a property with a good amount of free parking. Make sure there is no ongoing maintenance that you will be responsible for. This would defeat the purpose as it would be a very active source of income. The property should be in good to very good condition. If it smells bad, if there’s visible structural damage, if any of the provided appliances are broke (especially the dishwasher, fridge, etc.), people are going to complain, leave bad reviews, and worse, will want a refund.
What else? The air conditioning and heater should work well. Especially when the location is vulnerable to fluctuations in temperature during the summer or winter. Also, Jorge prefers single-family homes. The tenant gets a better return for his money. They have front yards, backyards, driveways, and everything in between and they get a nice place to stay. It’s also more peaceful. Condos, townhouses, and apartments are too jampacked and even noisy. The AirBNB renters don’t want to stay in a place where they can hear their neighbors constantly complain, right? That’s why single-family houses are much preferable for this business.
Other tips? Make sure to have a written agreement with the landlord. Protect yourself. Also, do not offer them extra money that is higher than the market rent. If you go off the beaten track, it’s not your fault. If they to get more money from the property they own, they can always go out on their own and explore the AirBNB game (if they can). Finally, before making a transaction, double-check with the city if AirBNBs are allowed in this area. You don’t want to experience something like, 30 days later they’ll shut you down, hit you with several accusations, and, in the worst-case scenario, lock you up in jail.
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