Brian Page loves posting motivational quotes on his Instagram. It’s kinda hilarious that he somehow posted a quote regarding cultivating the habit of taking “surprisingly bold risks.” Basically, you’ll need such habit when you follow the business model in his BNB Formula course. Continue reading the review below to know why.
Brian walks the talk when it comes to real estate. He’s in it for real and not just selling a course. He even founded Page Fund, a commercial real estate financing firm for accredited investors. I may have set the standards too low but I’m glad that he’s not a make-believe internet persona like Josh Snyder. Can’t be a fake one when you must show up for your interviews in Forbes and Entrepreneur magazine.
Does this mean that you should pay his BNB Formula course that costs thousands? Not necessarily. I mean, you can’t associate the quality of someone’s course based on their news presence. Sorry to burst your bubble but being featured on a popular magazine is not that prestigious as you think. You can just pay those agencies to show you off. Picture the Obama awards himself a medal meme, that’s what a paid feature basically is.
Anyway, I’ll be straightforward and say that I don’t recommend paying for BNB Formula. It’s ridiculously overpriced. Just a google search and some asking on Airbnb forums will equip you with knowledge to do rental arbitrage. The concept is not that complicated. Find a landlord, rent their place on a long-term basis, and list the place on Airbnb so you can offer it to guests on short-term basis. That’s it. The execution of the said business model might be hard, but Brian’s course won’t make it easier.
Doing you own research will also enable you to see the ugly side of rental arbitrage. With Brian’s, he’ll try so hard to put you on a rose-tinted glasses with all the unreasonable claims. Verdict on Brian’s claim on rental arbitrage being risk-free? Nope, not true at all. It’s quite the opposite. How about the claim of earning six-figures within six months? Low chance of hitting that mark at such a fast rate especially with Airbnb being a highly seasonal biz. Well, how about the claim of earning passively? Like the risks involved, it’s also not true unless you outsource your guest management duties. Basically, all the claims are not substantiated.
I also don’t know about you but I’m not a martyr that is okay with being liable to other people’s misbehavior. In Airbnb, it’s quite common to have unruly guests. To be fair, the damages are usually quite minimal like the likes of stained sheets, a broken plate, or a clogged toilet. However, there’s still a chance of significant damages. You know, those which requires at least a grand to repair. Worst, major damages are usually a ground for your landlord to kick you out. This means you incur a net loss without the means of recovering it.
Speaking of loss, rental arbitrage is one of those businesses where it’s likely to operate at a loss. There’s a reason your landlord is doing LTR, you can’t rely on guests booking on a short-term basis. It is far from a steady income. You might ask that maybe you’ll be on the look out for long term renters then. But no, they’re not your target market. They can approach landlords directly for cheaper rent. Your main advantage is the ability to provide a shelter for short-time guests on properties you don’t own but that’s about it.
Also, good luck finding a place and landlord that will agree to said setup. If you’re from UK, too bad that subletting and/or STR is not allowed in most cities. Similar bans are getting popular too in the US. For example, there’s a law in New York wherein you can’t rent out apartments for less than 30 days. Basically, say goodbye to your competitive edge.
Finding a landlord that will agree to you listing their properties on Airbnb can be such a pain too. Why would they partner with you when they can list their properties on Airbnb by themselves if STR is truly a lucrative biz as Brian claims? Quite frankly, the glamour of STR is not that true but at least, someone with their own property can pull it off better than those without one.