Airbnb Arbitrage With No Money? (Run Away Fast…)

Transcript:
(00:00) if you’re on Instagram Tik Tok or unfortunately even YouTube these days you have probably seen people talking about getting started with Airbnb rental Arbitrage without having any money down using a bunch of credit like this one let’s roll the tape I leased 35 Airbnb rental properties without using a dime of my money what I did is I purchased an aged company that was 3 and 1/2 years of business history that got me access to 250k worth of funding I dumped that 250 k a funding and 35 rental Arbitrage units that produce $80 to $90,000 a
(00:35) month for me I didn’t even purchase that company with my own money I used another business credit card to purchase that aged company then that age company gave me 250k and then I leveraged all that money to into properties that produce $80 to $90,000 a month for me now that’s working smart not hard now I I can’t stress enough in this video I really want to share with you why doing this is a really really incredible strategy for completely ruining your financial future this has got to be the stupidest most insane
(01:17) Financial strategy ever this is not working smart this is working so so dumb I know that this is going to be a somewhat controversial take I know that I’m you you know really tting a a strong opinion right now but I just can’t stress enough how incredibly dumb this strategy is for really anyone this person is talking about taking on a quar million in debt to rent property not even own it to rent property and to buy furniture which depreciates I cannot stress enough that if this person if this I don’t know who this is that made
(02:03) this video I don’t know the guy but if his property stop renting then he’s screwed he’s out a quar million do if the city he’s in passes regulations that don’t allow him to rent properties on Airbnb anymore he’s screwed he’s at a quarter million dollars he has nothing to show for it other than maybe some used furniture if the landlords decide that they don’t want in the property anymore or they don’t want to renew his lease he’s screwed he’s out of money he is going to be out a quar million dollar
(02:39) and all the while when he does this he’s not talking about any of the expenses sure he’s saying and don’t have any facts to actually back up the claim of making $80 $90,000 a month but that’s before all of his expenses he has to pay rent every single month he has to pay utilities every single month he has to pay his internet bill every single month he has to play his cleaning team to go by and do turnovers at every one of the properties every single month he has to pay his software expenses the list goes
(03:09) on what is he going to be netting probably not that much probably not enough to very quickly Reet recoup that $250,000 and get back to the coveted Z Break Even point he is literally losing money until he gets back to that break even point he is out like we we got to really think about this even if it’s not your money even if you’re borrowing the money you still have to make that money back just to get to break even you can’t think about this going hey if it’s not my money that I’m at break even from day
(03:45) one no you’ve got a qu million dollar in debt to pay back from day one so he has to work to manage all these properties which by the way doesn’t happen without work it’s not going to just run passively from the GetGo he’s going to have to create teams create systems create processes and run this stuff and he’s going to have to run them for months if not over a year just to get back to break even and if he gets there and the property owners don’t want to renew the lease or the city passes
(04:18) regulation or the properties don’t rent well at any point in that process he is out a quarter of a million dollar with nothing to show for it in terms of assets other than some used furniture because let’s not forget the money that you spend on rent does not create any Equity you don’t actually own the property are you a brand new or experienced Airbnb host co-host or investor who wants to host as successfully as profitably and with as much fun as possible if so then I would love to invite you to check out BNB
(04:51) tribe Linked In the description down below this video it’s our exclusive Community for Airbnb hosts investors and co-hosts from all over the the world where I share some of my best trainings that go into detail on every single aspect of Airbnb hosting from A to Z we’ve got Advanced Training playbooks that will help you to use more advanced strategies to take things to the next level and make more money and have more fun hosting co-hosting or investing on Airbnb you’re also going to get access to an incredible community and over
(05:22) $2500 worth of deals perks discounts bonuses that I’ve negotiated with other vendors in the short-term rental industry so if you want access to all of that and a whole bunch more check out the link in the description down below for B&B tribe and I would love to see you on the inside I cannot stress enough this is just a horribly horribly stupid way to start a business especially when you can go out and use something like the co-hosting model to go and get those same properties picked up without having
(05:51) to spend a quarter million dollars and put yourself in so much Financial Risk the truth is rental Arbitrage is a strategy that can work it’s not not in my opinion the best strategy but I think that even someone that does rental Arbitrage and is big on rental Arbitrage could agree that going and taking out a quarter million dollars in debt and you know just to access that quarter million dollars debt having to put yourself into high interest credit card debt just to be able to get access to it because you
(06:19) couldn’t get access to it without this business is just plain dumb it’s just a bad strategy it is highly risky it is not intelligent if you’re thinking about your business the cash that you have in your business is the lifeblood that keeps it alive no one can really Advocate with any business sense to them that taking on that kind of debt right from the outset just to get started and hopefully make money could possibly be regarded as a smart decision it’s a bad financial move I want to know your
(06:50) thoughts let me know in the comments section down below if you want to learn the right strategies for how to get started on Airbnb and really perform well then check out all the trainings we have Linked In the description if you like this video if you agree let me know pop a like in there I just really wanted to create this video I know I know it’s a little bit negative I know I’m kind of ranting a bit but I really hate seeing this stuff online people tting putting yourself into massive holes of debt just
(07:13) to try to get started with Airbnb when you number one don’t have to number two it’s a horrible financial decision so if this video serves to help any one of you guys to avoid making this huge mistake then I will feel very very good about it so sorry for a bit of the rant here but just really want to share this because it’s something that really frustrates me about these people that are now kind of jumping onto the Airbnb bag wagon and kind of have no idea what they’re talking about subscribe if you want to
(07:37) see more videos WE Post uh normally very educational videos twice every single week on this channel uh so you can subscribe to see more of those with all that said thanks for watching this video and I’ll see you in the next one