Airbnb Expert Aaron Byerlee reveal the power of the Co-Hosting model… and how it’s possible to get started generating positive cashflow and building your wealth, with virtually no financial outlay.
Hey everybody, Aaron Byerlee here…
I just want to come to you with a success tip today. A little bit niched, a little bit different.
We’ve got an incredible course that we do with BnB Professionals when talking about Airbnb and hosting other people’s properties. So today I really want to focus in on a success tip to do with that…
We show people how to do a lot of different ways with leasing properties and being upfront with the owner and signing the legal lease with them. But one of the things that we love that’s really working out here today is the co-hosting platform.
Why I love this, because anybody from any walk of life with no money in the bank account, as long as they know the formula on how to do this, can change their financial situation in 12 months, in 6 months, and very, very quickly in 3 months.
So the way that this works is we find property owners that have apartments or houses in council-approved, in Strata-approved areas, the short-term accommodation that is zoned, and they want to put it on short-term accommodation rather than a long-term lease because they know they can get a 25 percent extra return, a 50 percent extra return, sometimes double their return from a long-term renting.
And a lot of those owners are too busy, they don’t want to know how to do it, they can’t be bothered doing it or they’re overseas and they travel back and forth. They want somebody to host that property for them. They want someone to manage the cleaners, manage the guests, manage the traffic to Airbnb and Booking.com and HomeAway and do all of those things and want someone to host that property for them.
And these guys are everywhere. They’re at networking events, property investment seminars, social media. They go and do a letterbox drop in all the beautiful houses. I mean, the number one, one of the most expensive Airbnb’s in Sydney for example, in Bondi, is $10,000 per night. Ten thousand dollars a night. Now imagine if you just got that booked for 7 nights of the month, 1 week, that’s 70-grand in bookings that you’re going to take.
Now, the common model that hosts take is they’ll take an 80-20 split, so the owner gets 80 percent of that and you get 20 percent of that. So that’s $14,000 a month for just 7 nights booking if you are hosting that property on Airbnb, Booking.com, HomeAway and etc. in Bondi. Now, go on Airbnb and look it up. I guarantee you there’s a property there in Bondi for $10,000 a night right now. It’s beautiful, right on the beach.
So go and do letterbox drop in beautiful properties that you know that you can get $1000, $2000, $3000 a night. You do an 80-20 split with the owner. You do not need a license to host properties on software platforms like Airbnb and Booking.com. Anybody can do this. The owner pays for everything. The owner has got to pay to fit it out. They want you to do some work and help to put the furnishing in and make it look great, but the owner has got to pay for all of that. If you like spending other people’s money, you like taking their Black Amex card, you can have some fun with that.
But you want to fit it out and make sure it looks classy. The owner pays for all that. The owner pays for the electricity, the gas, the water, the amenities, everything. You pay for nothing. Okay? So the owners pay for everything, you host it, you do an 80-20 split. Every single month you get booked out, do a good job. Follow our formula and you’re going to make a lot of money. And then do that a second time. Do that a third time. Do that a fourth time. Do that 50 times.
One thing that we’re seeing out there at the moment is a lot of real estate companies are buying out rent rolls. One, 2, 3, 4, 5000 properties. Managed at 7 or 8 percent. Great residual income for a property. A company has set it at 21 and these companies do have rent rolls, but a lot of companies don’t have a short-term accommodation rent roll if they want one.
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So think outside the box here. What about this different idea? You go and find a property, you host it for the owner and you get good at it, you do that a second time, you do that a third time. You have 20 properties, you have 50, you have 100 properties managed at 20 percent. You do not need thousands of properties to be successful at this. Three years down the track, you can show some numbers, you can show some books, you can show some profits. A big real estate company offers you half a million dollars, a million dollars, 5 million dollars for your portfolio. This is happening every month, every week at the moment. And it’s something that we work towards with our students at the moment with the co-hosting model.
So if you’ve got work ethic, if you’ve got strong mindset, if you’ve got desire, but nothing’s quite worked for you at the moment or things are working for you but you are looking for a side gig, because I’m telling you, this is that good and that simple, it costs you zero dollars to do it. So you’ve had some hard times but you got that work ethic and you got 50 dollars in the bank, let me show you how you can do this co-hosting program with none of your own money, none of your own properties that you own, build it up and get some incredible cashflow and sell it for a 7-figure payday. If that interests you, reach out to Zadel Properties and we can talk.
So guys, I just wanted to share that tip with you today. It’s something that not many people think of, not many people think they can do, not many people know how to do. I hope I’ve given you something to think about with the niche thinking outside the box but taking it a step further as well, which we’re excited to teach with our students. So that’s something that anybody can do. Think about it. Put it into action and change your financial situation the next 12 months like nothing I’ve ever seen before.
Cheers guys and have a great day!