How To Make Passive Income With AirBNB...

hey guys Mike Dillard here and today we're gonna do something pretty special we haven't done this in a while I'm joined by my good friend Brian Paige here how's it going and for those of you who've been listening to the podcast for a while you might remember the episode that I recorded with Brian last year on Airbnb and essentially short-term rentals now that was a new topic to the podcast because we don't really talk about real estate that much when it comes to my audience but it was a game changer like people were blown away by that interview and your story and a ton of our audience ended up going through your program on how to set up Airbnb and make you know essentially residual income and we're here with two of his students today up in Dallas in one of their properties and so we thought it would be an amazing opportunity to come in kind of do podcast episode two but do it in video format and hear from some of some of Brian's students and the results that they've actually been getting because this was one of the the opportunities the few opportunities that I've come across where if you're you know not into the internet marketing thing if you don't want to write an e-book if you don't want to produce webinars and all of the the typical stuff that I've traditionally taught but you still want to be financially independent and start a business like this is it this is kind of the Holy Grail in many ways so Brian thanks for joining us and this is Jeremy and can and Brian if you could man why don't you just start with your story from the top sure for those who didn't hear your podcast last year and we'll go from there sure I come from a real estate investing background I flipped a bunch of properties back in the early 2000s and kind of participated in that real estate bubble or the mid 2000s and built up a huge portfolio was doing all kinds of deals and when the real estate market crashed I lost everything I lost all my properties my personal residence basically had to start over and so I kind of floundered for a couple years looking for a new opportunity and really wanted to get back into real estate but I couldn't because for years my credit was ruined because of all those foreclosures and quite frankly I didn't want to take that risk again I didn't want to sign my name to millions of dollars and loans again at real estate but I heard about this Airbnb thing I knew that Home Sharing was starting to take off and I was renting a two-bedroom apartment and my roommate moved out unexpectedly and so I listed his room on Airbnb mhm and my goal is just to make a few hundred dollars a month because I had a full-time job and what happened is I made enough to pay for the rent and all the utilities so I was essentially living for free at apartment hack the apartment that I lived in and I thought you know what this would be great but how could I scale it and so I just had this wild idea that I could go approach owners of rental properties and convinced them to let me list their properties on Airbnb and so I did that the first month with a little apartment around the corner and made about $1,700 my first month in my pocket on that property and then I did it again the following month and another month after that each time with a new property and I ended up doing over a little over one hundred seventeen thousand dollars my first six months on Airbnb over three hundred thousand my first year and then people started reaching out to me and asking how to teach them and then before I knew that I was teaching people thousands people around the world how to do the same yeah so that to me was the cool part because you're not having to go out and buy the property no which is the big piece to this you know you're thinking like oh crap I've got to go get a mortgage for 500 grand 300 grand mm-hmm and you bypassed that entire process which I thought was awesome yeah so it's creating cash flow in your life it's it's like being a real estate investor without actually owning any real estate so that's great if you own property we're going to talk about that you can take property that you own and make considerably more cash flow with that property usually two to three or four times what you would normally make but if you don't want to own property you you don't own anything you can immediately start making cash flow on other people's properties which is really powerful yeah or your spare bedroom or your spare bedrooms you want to start there yeah I've got friends in Austin who have a spare bedroom and they've been renting that out to you know young entrepreneurs who come into town for years now and it's just paying for their mortgage which is just really cool so instead of diving into the how to's and the mechanics and all of the details here today we're actually going to do a live webinar for you guys where Brian's gonna go through this extensively we thought I'd be a really cool opportunity to talk to some of your actual students and we're in one of their houses right now that is rented out so you know cam this is your place tell us how you got involved in Airbnb and how it's been going for you we got involved in there being me just test the model see how this you know Home Sharing alternative rental besides the long term rental because that's kind of where I come from is we do long-term rentals so took bronze course and then we started with three properties but within two months we were doing ten thousand dollars in revenue we added three more properties and we're eight months in to the deal and revenues is one hundred and five thousand a year eight months and eight months nice awesome yeah less than a year and we're in a four bedroom here this is a four bedroom house that we rent out nightly rents usually around a hundred fifty two hundred seventy-five on the weekend is 250 if I were to rent this house out would be $1,500 a month on a long term remote month contract but we're probably doing around three thousand a month in revenue on this house so pretty much 2x a long-term rental rate amazing great and Jeremy tell us about your listing you have one as well yeah so I have one it's a condo it's my first one it's a downtown Fort Worth it's a pretty good hotspot for future growth and whatnot it's a 1-bedroom 1-bath not a studio but it does have a living room and it's it's normal rent would be around 900 bucks a month but doing the the Airbnb system it actually magnifies it by about three times so there's a lot more to it the loss story short if I did fool Airbnb the full time it would be cash fair bringing in revenue three to thirty five hundred a month there's some stipulations with the condominium association which brian recommends to avoid I also recommend to avoid but that being said it's still able to bring in two thousand and and so double the rent rate and that's with stipulations so it's brilliant absolutely brilliant concept so you're looking at two to three times what you could do the traditional model of renting long term absolutely that's great and that's super impressive to everybody who have shared with mmm-hmm so you know what are some of the common questions or you know objections that you know people typically have around short-term rentals because the neat part about this Brian when we talked about it is that you've automated this entire process so that was the second part of this that was really mmm-hmm impressive to me is the fact that you've systematized this and one of my one of my good friends Danielle is has a property in the outskirts of Austin that she Airbnb she's to live there and she moved to Colorado Airbnb xur house out and she makes about four grand a month and profit from it well and the whole thing is automated so she doesn't even have to live in the same city which is amazing so talk a little bit about that process because I that was one of the things that just blew me away yeah absolutely well as I started growing my Airbnb business I went from something like a side hustle into you know real business and I realized that once you have two or three or four listings you're kind of running your own distributed hotel where the rooms are all over the place and so if you're gonna run your own hotel you got to have a front desk you gotta have a maid service you gotta have all these services to run it and a lot of people make the mistake of doing it all themselves when they don't realize you can outsource almost everything like 95 98 percent of the tasks day to day tasks you can outsource and so what I teach people how to do is to scale while outsourcing so they don't have to do any of those day-to-day tasks and that's one of the things that I really enjoy teaching because it's you're making almost truly semi passive income so some of those tasks would be what having the place cleaned between guests and stocked and and let's talk yeah those the standard things cleaning getting ready and staging for the next guest but the the more important thing is communication with the guests because you're gonna have people asking questions and asking can i book and I reserve these dates can you get me more towels or whatever you know whatever the question may be you can have third parties now take care of that for you see don't you don't even have to do that so now you take yourself out of the element where you're you're kind of like the hotel owner but you're not the front desk clerk right and that's really really powerful and actually I can't could speak to that because he now has six listings and you're managing six listings so give us an idea how much time it takes you to manage six listings doing over six figures in the last nine months so if you follow the course frightens poor see you oughta made the front front end and the back end which is the cleaning and refilling supplies and all of that I spend couple hours a week if that because everything is online on on your phone it takes a half a minute to response and if you follow the course and put enough towels in in there and basically anticipate all the needs I was in Thailand for two weeks I was the front Ian and so I was managing it from on a beach and talent for two weeks you know that's how much on automation that's if you implement it it's hands off now I understand that you own some of the properties but you also don't own some of them you lease them correct so tell us how that works correct so we we all know cut a couple property and then the course teaches how to go out and use other properties that you don't you could get into the business so that's exactly what I did went up to a property owner and told them exactly what I wanted to do or what we're doing show them our listings prior listings and you know the reviews and explain to them the insurance that's covering their property we profess have a professional claim three times a week minimum and there's it okay let's try it so we open one they liked it got another unit from them so we operate a two-bedroom and a one-bedroom out of their complex and they're doing you're doing a rev share with them no no we straight up please oh so you leased it essentially leased it from them straight out right and then you're doing the short-term rental yep yeah awesome so they're getting the money they wanted and you're correct making the physically they're just fulfilling their occupancy level and you know I'm paying the market rent one one was twelve hundred one was nine hundred for the one bedroom the $1,200 two bedroom our revenues probably around twenty five to three thousand a month so it's 2x you know that's how I gauge it 2x what the cost you know so let me play devil's advocate here there's a lot of people that might be watching might be thinking why in the world would an owner let you do this there's no way owners would let you take their property put on air VB so how did you overcome that why would an owner want to do this with you well a lot of the owner they they're in their their line of business to do long term rental they want to be passive they think air B&B is running Hotel which essentially it is but if you do it right it's it it's not as active as you would you know so a lot of people do not know the power of the air B&B me being one I was like well people show up I'm testing this out because I I don't think we're in a huge tourist area I mean would there's people coming in but we're not the top tourist area and we're not Orlando you know people come to Disney World and the demand is there this house is in the middle of the suburbs in Dallas yes were nowhere special I was very surprised okay so you're from Missouri yeah yeah I'm not from this area okay so that's another thing that people often say is they say well Brian that's great that it works for you you live in a tourist area but I don't live in a tourist I don't even live in a destination city so what would you say to somebody like that because you have a listing that I would guess is not in one of those type of location right right it's in more of like a central area I mean it takes a leap of faith to start because you have to buy into it and then you know if you take the course things to make a lot more sense but I don't think it started any differently for him or hi it started with the leap of faith but you do that but then you know when you have your property and then you just honestly reciprocate the advice that's given to you yeah it it's kind of like you know Brian's course hold your hand the whole way and show you that it's not really about the area it's about maximizing the occupancy and what not if I'm understanding correctly yeah good question yeah yeah absolutely so the first the first thing you would think of who you customers would be somebody's coming here on vacation and that's a portion of it I'd say 20 30 percent there's all kinds of people coming and needing we just have somebody to check in they're remodeling their house for a month so they booked 28 days we had a convention coming to town there's more business people we have somebody coming in for somebody was at the hospital their relatives so they wants a bigger place so it's not necessary you don't need to be in the middle hotbed of the tourist attraction place yeah oh my friend Danielle's house is not anywhere near downtown Austin it's in a outskirts suburb like this and she's just booked all the time in crankin so from a from a marketing and and let's just call it a customer acquisition side is it as simple as just listing on Airbnb and and that's it or well the beauty of my Airbnb is you don't have to do any marketing at all I've never done any marketing outside of Airbnb the key is though you want to give your it's a really good experience you want to make sure you get the great reviews because the better your reviews are the higher you get on the results page on Airbnb and another thing I teach it's very important is having photos that are exceptional if your photos are exceptional people will click because they're really the only thing they see is that one photo and so you got to get people to click on your listing in order to even consider booking it so I spent a lot of time teaching people how to get the right photos of their listing to get people to click and if you do those things correctly you don't have to do any outside advertising Airbnb does it all in fact there are just still millions and millions of people I was reading a statistic that there are 1.2 million people a week that are joining the platform every week which is insane but that was in the Airbnb story the book that came out recently so over a million people a week joining the platform and it's growing exceptionally fast overseas and and I'm finding that it's working in everything from luxury properties all the way down to very inexpensive low income neighborhoods in fact I've started to buy homes and low income areas because the ROI is just off the charts so so yeah it works in kind of all ends of the spectrum so I remember one of the one of the things that really caught my attention last time we talked about this was the fact that the amenities that you provide basically are standardized across your different properties you know can I so you had a bottle of wine when we walked in and you know a snack snack for Desiree yeah but you you can essentially start to create your own brand yeah of properties that you own right so you could have you know the can real estate group or whatever maybe and that way people know that once they stay one of your properties they know the amenities to expect they know the type of experience and cleanliness that you have and you can just start to build up this massive real estate portfolio frankly across the world without actually owning any of these properties which i think is a really really cool idea yeah so this is one of the things I teach in in my training is that you can get a bottle of wine like this what you say spend for this two dollars fifty two dollars and fifty cents okay so you want to make sure you get a wine that maybe is kind of new people don't know it's to a $2.50 but when you walk into a hotel I can tell you because I stay in all kinds of hotels in fact I was in a 5-star Hotel in New York City and they did not give me a bottle of wine so your guests aren't expecting this and when they come into the listing and they see a bottle of wine they see that you have coffee and you've creamer and you have you know all the amenities that you would have in a hotel plus some then you give them that kind of a while experience and they're staying there usually for less than it actually costs to stay in a hotel so you've been doing this for a while you get in good comments and reviews just on the single $2 bottle of wine I get so much review because we don't list these kind of things it's just a nice surprise and it doesn't cost very much and it makes world that different you know people walk in they're starting their vacation you got snacks and a bottle wine I always hate go to hotel and you can't touch here is right and I think that's why people are doing spending their money on Airbnb is because they're getting more for their money you have a kitchen and I think we found that to be one of the biggest factor of why people rent because if they do a hotel they can't cook their own food yeah you got a you got a family here that needs four bedrooms what would that cost them to stay in a hotel we're here you have an entire house a four bedroom house that is equivalent to a hotel in the area and that same product same price yeah you know another thing you can do is go partner up with the local restaurants or you know whatever maybe leave coupons or you know things on the table and even potentially get a kickback from oh yeah those introductions right additional income so what are some of the other major major questions people have aramis okay so one of the things that's a hot it's a hot-button topic but I'm gonna bring it up and it has to do with regulation Airbnb regulations now there are parts of the country there are cities in fact we're talking about Austin is one of them where they're kind of what I call red zones they're not super friendly in fact they can be downright opposed to short-term rentals and Airbnb and these are areas where it's it's either not allowed or it's very difficult to do Airbnb in areas and the people sometimes say well Brian what do I do I live in this town I live in this place and and so we started doing some research I hired a research firm and we spent a long time looking at the top 2000 cities in the country and what we found is that 92% of cities and towns in the u.s. allow Home Sharing 8% don't and so you're gonna find there are some pockets of areas which not as ideal to do this kind of thing but we found that we have students in basically every every location in the country almost every city every major city and medium sized city and I wanted to talk to some of you too because I can and I were discussing this earlier what would you say to somebody that would say well I'm in an area where it's restricted I can't possibly do this go to the next town over and which is fine we're talking about property rights and all that takes a lot of money Airbnb so new home sharing is new so your next town over across the road because you don't live around the corner right no I don't and I mean we're 30 miles from our listings I probably visit my listing once or twice a week you know so I even though I'm close yeah I don't come if I have to look at so so just to move it five miles over and ten miles over very easy no there's a town speaking of which on that call grapevine just right down the street and they actually put a ban on it but then it went through the court system and they lifted lifted a bit within like six months this just happened yeah so what's happening right now is Airbnb very much as like where burr was a few years ago uber wasn't even allowed in Vegas I remember going there one time I tried to order an uber why is uber not here so because it's such a new technology it's well it's not really a new technology but it's it's disruptive and I'll tell you it's disruptive to the hotel industry yeah and they do not like that to any city town Austin downtown Austin so any city that's powerful hotel lobby like New York City San Francisco these cities Airbnb is not very open there so so but I think that Airbnb has winning many many cities are winning over the laws are changing and it's in flux but for the vast majority of people they can do this there's absolutely no reason you can't do this because somewhere near you will be a town or city that you can do Airbnb in so that's a biggie obviously any others yeah yeah one of the things that people ask about often is is you know about the lease commitment because you're signing a lease for what a year six months six months okay six months or a year so committing yourself so people want to know what oh you know what if it doesn't work so what would you say to somebody that say well I don't know if I want to sign at least and commit without knowing this is going to work so a lot of when I went to sign at least we we got we got six month leases but most of the time is 12 month lease but think about it this way if you break the lease you pay one month or two months so it's basically a two thousand dollar gamble mm-hmm you know don't think about oh I'm stuck in the leaf for 12 months it's the least that's the beauty that we're to the real estate world that's a very small amount of money compared to any other kind of real I mean any two thousand dollars to do a real estate investment that's basically the deposit yeah right so I think it's it's money that you could spend and and that's the mom recuperate yeah yeah Jeremy and I were speaking earlier about the fact that people are now partnered with the owners so they don't have to sign a lease and they can share in the revenue right absolutely it's it's super brilliant he obviously mastered it but the idea is you partner with somebody who has a home that it's just been sitting there for quite some time and hey you guys interested in making some extra money out of this place for example my neighborhood yup he goes to Chicago six months out of the year and I've been pressing a 10-member so let's make some money with the property and he's close but yeah but that's the idea that you can partner with these guys in yeah you can say let me do the work you just give you supply be that property and we'll split the revenue somehow yeah very very simple no riff this is ear arrest there's zero cost that's a nice part about the home sharing as opposed to the lease mm-hmm what are some others you know that's one of the things that people ask sometimes is well what if I don't have any funds what if I have zero money and I want to get started in this but I I don't have any funds to start the business what would you say to somebody like that well if you have a house already you you could rent that extra room like how you start it mm-hmm cuz you're already paying for that Yeah right save up a little bit of money then you could do like a two-bedroom by itself place that's one way another way is partnership there's a lot of money out there that people are willing to the partner switch you and quite frankly it doesn't cost that much to start an Airbnb you know couple thousand dollars do the least furniture if you frugal you could do use use furniture you're not to buy all-new yeah and where else can you invest in real estate for five thousand yeah you know seven thousand even more so on that point you can get a friend or family member to invest $5,000 of course it's amazing how many people out there would just have money they're willing to short-term loan you yeah and if you don't have somebody like that the quality my advice is you're not trying hard enough because they're all over the place oh you know what that reminds me of another question that I was wanting to ask you both is how quickly before you how many days or how many how long did it take you once you got your properties listed on there before you start seeing bookings and money coming in - super easy yeah two days two days yeah immediately start getting reservations yes and the pictures like you said helped a ton but no teaches you how to furnish the place decorated what to have in it two days okay cool my mom was about two days through the days the first reservation came in it was like being on the phone and I'm like my goodness first one and the funny story was she moved in a water heater broke the a/c broke oh wow very first day okay right and I'm like okay this is you know but we got it taken care of the next day and it was all been uphill from there the first 15 days we did $3,000 and then the month after that we did like 8,000 or so the months after that we did 10,000 11,000 in revenues and we're not talking about big property we're talking $90 a night talkin hundred and twenty dollars a night adds up so what would you say what would you say your next steps are what's your goal now you have six listings you're gonna get more so I'm a believer the first six was we try different size we you know one bedroom two bedroom four bedroom three bedroom house so I'm a believer in the Mart the demand and that was my main concern was okay if we do this will they come you know and we prune that concept you know $100,000 of revenue I mean I couldn't imagine that in six month I mean where else it's amazing is to make you know your revenue coming in over $10,000 and you're not someone managing it which is yeah best part yeah I mean it takes me a couple hours yeah that's all and I gotta ask this did you have any prior experience with Home Sharing or Airbnb before you heard about this I stayed in one air being that's you know and that's why I took the course was that okay I could guess that this well or I could just have it all hand it out hand it to me do this do this do this do this and you know be successful yeah so guys Brian's perfected this process over the last few years like he has a course that I've been through that's phenomenal he gives either contracts the paperwork the resources to outsource everything to have your house taken care of you know someone who comes in and cleans and you know puts new toilet paper in and stocks the fridge and puts the wine out like it's all completely white glove so anything else we want to who we need to cover should we just kind of tell everybody about I would say let's let's invite them to this joining it's gonna be very viable for them so we're gonna do a little live webinar Brian and I are gonna do a live webinar for you guys where he's gonna dive into this entire system and detail kind of A to Z and a much more extensive format than what we've done here today we'll put the time and the date below so wherever this video is YouTube Facebook wherever it may be we'll put a link below that'll take you to the registration page this will be absolutely live it's gonna be me and him on there so fingers crossed we don't screw this up and mess it up and but yeah like literally we just did this with this podcast last year and we've just had tons and tons of people you know keeping in touch and saying that they've gotten this set up that they're making money with it and you know again if you're not into the traditional internet marketing stuff that I've traditionally taught buying courses mastering copywriting getting in front of the video camera on YouTube if you don't want to do that because I know there's a lot of people that's just really uncomfortable for but you still want to become an entrepreneur you still want to make residual income two to ten thousand dollars a month in your first month or two is about as good as it gets so we just want to introduce this model to you guys give you an opportunity to check it out obviously if it sounds like a fit for you that's great if it's not a fit that's great too yeah but we'll put the link below for the registration page come and join us we'll be in on their live answering your questions saying hi to everybody and if it makes sense man this has been has just been awesome for so many people yeah don't miss this looking forward to bringing you so amazing value and showing you how you can get a business that essentially you can be profitable in the first 30 days you don't have to own any real estate you don't have to have hourly any money to launch one of these and you can scale to any size you like so it's an absolutely massive opportunity absolutely well guys Jeremy can thanks for joining us my ass has been super cool awesome cool awesome brother thank you guys we'll see on the webinar

Channel: Mike Dillard

Views: 82,776

Keywords: Mike Dillard, Brian Page, air bnb, passive income, real estate rentals, short term rental, Home Away, VRBO

Id: fGXHesU45YY

Length: 30min 6sec (1806 seconds)

Published: Mon Apr 01 2019