Jorge Contreras is a Real Estate Investor & Airbnb Coach who is passionate about helping people create time, financial and location freedom with AirBNB and Real Estate Investing. He retired at age 29, became a millionaire by 30, and now earns 7 Figures with his AirBNB business.
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Guest Resource
Jorge’s Instagram – Follow Jorge on Instagram!
3 Value Bombs
1) Airbnb arbitrage is the most effective way to replace a nine to five.
2) Everyone should try to own as much real estate as possible since that is where you create long term wealth. But the reality is that not everyone has the capital.
3) The goal is to be able to break even at 10 days, double whatever your rent or mortgage payment is at 20 days, and then have the opportunity to triple at 30 days.
Sponsors
Podopolo: The best podcast listening app in the world is here! Visit Podopolo.com, download the app for free, mention John Lee Dumas (my Podopolo username) when you sign up, and start listening now!
HubSpot: Learn how HubSpot can help your business grow better and get a special offer of 20% off on eligible plans at HubSpot.com/eof!
Show Notes
**Click the time stamp to jump directly to that point in the episode.
Today’s Audio MASTERCLASS: Build an AirBNB Empire WITHOUT Buying Property
[1:33] – Jorge shares something that he believes about becoming successful that most people disagree with.
- He doesn’t agree with working hard equals success. Working hard will get you to a certain level. Getting to the next level is all about leverage. Building teams. Building systems and just working smart.
[2:25] – AirBNB arbitrage – what is it?
- Arbitrage is a great way for those who are getting started in entrepreneurship, or who want to wet their feet in real estate but don’t have the capital to buy.
- Everyone should try to own as much real estate as possible since that is where you create long term wealth. But the reality is that not everyone has the capital.
[3:57] – How to get into AirBNB.
- Contact the local building department in the city to verify what their regulations are.
- Look at software that allow you to look at the revenue and occupancy of AirBNB’s anywhere in the world.
- Get permission in writing from the owner. Two things that you want in the lease agreement is that you have permission to utilize the property as a short term rental and to change the locks.
[5:41] – Will this take a lot of time or can we have this automated?
- There’re people who have a lot of money and don’t have a lot of time, and then there are others who have a lot of time but don’t have a lot of money.
- Those who have a lot of time and less money, it makes sense for them to do this themselves so that they can save on costs.
- For those who have a lot of money but don’t have a lot of time, it would make more sense to just hire a team from the get go.
[1:25] – Examples of AirBNB arbitrage.
- On a craftsman home that was fully renovated, they started sub leasing it from the owner in July of 2021. They paid $4700 for the first month and then every month after that. Then he invested about $17,000 in furniture, decor, design, photography, all the supplies and appliances.
- This property has been cash flowing a little over 3,000 a month pretty much since day one. So, he was able to make his entire investment back in about 8 months and then after that it has been all profit.
[9:02] – A timeout to thank our sponsors!
- Podopolo: The best podcast listening app in the world is here! Visit Podopolo.com, download the app for free, mention John Lee Dumas (my Podopolo username) when you sign up, and start listening now!
- HubSpot: Learn how HubSpot can help your business grow better and get a special offer of 20% off on eligible plans at HubSpot.com/eof!
[11:38] – Pricing our listings to maximize full calendars
- The goal is to be able to break even at 10 days, double whatever your rent or mortgage payment is at 20 days, and then have the opportunity to triple at 30 days.
- We don’t always get 100% occupancy. We don’t even always get 80% occupancy.
[13:33] – Where do we start in AirBNB arbitrage?
- Entrepreneurs struggle the most with the shiny object syndrome. Decide on your one thing.
- What is the one thing that if you did that successfully, it would make everything else easier or unnecessary?
[15:02] – Why is AirBNB arbitrage getting popular?
- We are providing a great experience at a fraction of the cost. That’s the business model here that AirBNB has created that has given this opportunity so much momentum.
[16:40] – Jorge’s key take away and call to action.
- AirBNB arbitrage is the most effective way to replace a nine to five.
- Jorge’s Instagram – Follow Jorge on Instagram!
[19:08] – Thank you to our Sponsors!
- Podopolo: The best podcast listening app in the world is here! Visit Podopolo.com, download the app for free, mention John Lee Dumas (my Podopolo username) when you sign up, and start listening now!
- HubSpot: Learn how HubSpot can help your business grow better and get a special offer of 20% off on eligible plans at HubSpot.com/eof!
Killer Resources!
1) The Common Path to Uncommon Success: JLD’s 1st traditionally published book! Over 3000 interviews with the world’s most successful Entrepreneurs compiled into a 17-step roadmap to financial freedom and fulfillment!
2) Free Podcast Course: Learn from JLD how to create and launch your podcast!
3) Podcasters’ Paradise: The #1 podcasting community in the world!
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