Most people have only really heard of long-term rental investing—this is where someone buys a house, maybe a condo, a townhouse, whatever it is, and rents it out on a 12-month lease to tenants. In this traditional arrangement, the owner is trading a great place for tenants to live for a monthly income off of that property. A tried and true method that we think is fantastic, but there are more ways to make money in the real estate market than just long-term rental investing. That’s what we’re talking about in this episode, and be sure to take advantage of the EXCLUSIVE link to set up a private consultation with a Wealth Factory Architect.
“Airbnb Arbitrage is a small-scale investment strategy that, with the right application, can yield large-scale returns.” – Andrew Mayhew, Wealth Architect, Wealth Factory
So, what is Airbnb Arbitrage?
There are a lot of different ways to do short-term rental investing, and there’s a way to get into short-term rental investing without almost any capital upfront and without the risk of purchasing a property. It’s called Airbnb Arbitrage.(You could probably apply it to VRBO or some of these other platforms, but it’s become popularly known as Airbnb Arbitrage.)
Airbnb Arbitrage is basically a sublease scenario in which you work with a landlord or a property owner to rent out their property in return for the ability to post that property on Airbnb or another platform. The result is you get to keep the cash flow above and beyond that 12-month lease that you’re paying to that property owner. So why would a property owner go for this option rather than managing the property themselves as a short-term rental? One of the primary reasons is that a lot of people don’t want to take that risk. They’re not sure if a jump to a short-term rental makes sense in their area, and they don’t necessarily want to do the work in order to manage a short-term rental. There are, in fact, MANY benefits for both the property owner and the arbitrager, and it is a great way for the arbitrager to earn some additional income and get experience in the short-term rental market. It’s also a great way for that property owner to continue receiving a 12-month lease without any additional risk. Be sure to watch today’s episode for a deep dive into all the specific pros and cons of participating in Airbnb Arbitrage! It will help you to determine if Airbnb Arbitrage is exactly the“in” you were looking for in real estate investment!
We are going to talk about the costs, the risks, and most importantly, the potential for creating new cash flow. If you are the property owner, you will get a great idea about the pros and cons of working with an arbitrager. Most people are surprised at how low-risk/high-yield these arrangements can become!
Are you looking for a simple introduction to real estate investing?
An Airbnb Arbitrage is perfect for those who want to create income through real estate without a lot of capital upfront, and it enables a person to test out short-term rental options to see if it works for them. If not, it’s a relatively low-cost, low-risk way of figuring that out. Airbnb Arbitrage is one of the best options out there today to start increasing income and getting into real estate investing. A lot of different ways to do that, even outside of what we’re talking about today! That’s why it’s important to have a personal Wealth Architect take you through all of the options and make sure they work with your specific strategy and goals.