馃攳
My $11k/Month AUTOMATED Airbnb Subleasing Property Part 3 of 3 | Jorge Contreras - YouTube
Channel: unknown
[0]
What's up guys Jorge Contreras here and welcome聽
to part three of the three video series on how聽聽
[5]
this sublease a property that I do not own but聽
got permission in writing from the owner makes聽聽
[10]
$11k a month on Airbnb completely on autopilot聽
and in this video we're going to talk about聽聽
[17]
how we manage and how we automate the property聽
and then secondly we're going to talk about the聽聽
[22]
actual numbers and how much we actually cash flow聽
meaning the monthly profits from this property so聽聽
[29]
first let's talk about the structure and uh I聽
want you guys to definitely check out a book聽聽
[34]
called The e-myth Revisited by Michael E Gerber it聽
talks about the three levels of Entrepreneurship聽聽
[40]
you have the technician at level one the manager聽
at level two and the entrepreneur also known as聽聽
[46]
the Visionary at level three and whenever somebody聽
launches an Airbnb and they have a technician AKA聽聽
[53]
an employee W-2 mindset they do all the cleaning聽
themselves they do all the maintenance themselves聽聽
[57]
all the communication themselves and therefore聽
they cannot scale because they're too work too聽聽
[62]
busy working in the business a lot of times聽
this person also has a limiting belief of if聽聽
[67]
I wanted done right I have to do it myself and聽
they think that they're going to save money by聽聽
[72]
basically doing all the work but it in fact it's聽
the exact opposite but that's number one they聽聽
[78]
basically do all the work and number two is when聽
you go from being the technician to becoming the聽聽
[83]
manager when you are the manager in your Airbnb聽
business you now manage the three technicians so聽聽
[90]
imagine you go from doing cleaning maintenance聽
communication to becoming a manager you hire a聽聽
[95]
dedicated person to do cleaning you hire a聽
dedicated person to do maintenance whenever聽聽
[100]
needed and then you hire a person dedicated to聽
do all the virtual Communications now you are the聽聽
[106]
manager this allows you to now scale because while聽
your team the technicians are handling these three聽聽
[111]
things you can go and start looking for your next聽
Airbnb travel the world spend more time with your聽聽
[117]
family because you're no longer trading time for聽
money or running your business like a job level聽聽
[123]
three is where you become the entrepreneur also聽
known as the Visionary now you are working on聽聽
[129]
the business not in the business and that's聽
where I am operating from I have a manager聽聽
[135]
who manages the technicians in the business I聽
have a weekly short meeting with the manager we聽聽
[141]
go over all the property see if there's anything聽
that needs to be changed any adjustments whether聽聽
[145]
it's on the pricing the reviews whatever it is聽
to help us run a very efficient and profitable聽聽
[152]
short-term rental business so again I am the聽
Visionary we have a manager and the manager聽聽
[158]
manages the technicians and so I don't have a you聽
know third-party management company everything聽聽
[164]
is in-house because if you hire a third-party聽
management company they're going to basically eat聽聽
[169]
up all or most of your profits so the best thing聽
that I've done that I teach my students is how to聽聽
[175]
build an in-house management structure so that you聽
can really maximize your profits next let's talk聽聽
[181]
about the numbers the moment you've been waiting聽
for so this property on average makes about 11聽聽
[187]
000 a month from there we've got to聽
subtract the monthly rent which is 4聽聽
[192]
000 a month and this property gets cleaned about聽
eight times a month at a two hundred and fifty聽聽
[199]
dollar per cleaning cost which is another two聽
thousand a month we have all the utilities and聽聽
[204]
Landscaping at about 500 a month and then I always聽
like to add like another two hundred dollars for聽聽
[209]
miscellaneous stuff that we replaced from time to聽
time like body wash conditioner soap detergent so聽聽
[214]
that basically leaves us with a monthly positive聽
cash flow of four thousand three hundred dollars聽聽
[221]
a month another thing to note is that we basically聽
recouped our investment at about the three to four聽聽
[227]
month time frame because remember we had to put聽
the first month deposit Furniture appliances the聽聽
[232]
course applies up front it took about three to聽
four months to make that money back and after聽聽
[238]
that it was basically all profit all in the聽
grade another thing that I want to point out聽聽
[242]
guys is everything that we got from the furniture聽
appliances the core we went like medium to higher聽聽
[247]
grade when I first started my business in 2017聽
I still remember guys I bought this old school聽聽
[253]
1997 Toyota Tacoma and I was buying stuff off聽
of OfferUp and Facebook Marketplace and I was聽聽
[261]
basically buying all you stuff like I'd go聽
buy a couch for like 60 bucks but like if I聽聽
[267]
opened this up it was tore up there was like聽
all this food and spiders and all messed up聽聽
[272]
and yes I was saving money in the front end聽
but it was costing me money and to back in聽聽
[277]
because again when you're creating an experience聽
with you know short-term rentals people want to聽聽
[282]
have a great experience and they want to ripe to聽
a property that's clean respected taken care of聽聽
[286]
and so don't try to cut Corners guys the reason聽
this property does 11 000 a month is because we聽聽
[291]
really went again medium to high grade we really聽
invested a lot of money into this property to be聽聽
[297]
able to create a unique but also one of the best聽
if not the best experience in the area you have聽聽
[303]
to be willing to invest that money up front in聽
order to maximize your return on investment also聽聽
[309]
guys again I did get permission in writing from聽
the property owner to acquire this property which聽聽
[315]
we've been subleasing for almost three years聽
you know I get DMS on Instagram all the time聽聽
[320]
people that say Hey Jorge the landlord found out聽
they're evicting me what do I do and here's the聽聽
[325]
truth guys whenever you get a lease agreement in聽
all lease agreements 100 of the time it says no聽聽
[331]
sub leasing because it's intended for you to live聽
there so you have to actually talk to them about聽聽
[337]
hey can I rent your property and use it for my聽
short-term rental business again there's a lot聽聽
[342]
more to it that's just like the behind the napkin聽
strategy but you want to make sure that you get聽聽
[347]
permission in writing otherwise you will not have聽
a sustainable and scalable business model these聽聽
[352]
people that don't get permission right as soon as聽
the owner or Property Management finds out they聽聽
[357]
are evicting this people and imagine paying first聽
month rent Furniture supplies to court photography聽聽
[363]
like you're investing thousands of dollars just聽
for it to be short-lived so it's really important聽聽
[368]
for you guys to really learn how to speak to聽
landlords how to overcome their objections how聽聽
[373]
to provide win-win situations and everything that聽
you need to have in writing to be fully protected聽聽
[378]
another point when it comes to the actual expenses聽
is everything from furniture appliances of course聽聽
[383]
applies photography I put everything on a credit聽
card people always ask me how do you fly first聽聽
[388]
class how do you get free hotels all inclusive for聽
you and your family and that's the thing guys is聽聽
[393]
you see guys I put everything on a credit card聽
but I always make sure that I I paid off within聽聽
[398]
30 days so that I don't accrue any interest and聽
all I'm doing is basically building free points聽聽
[404]
because sometimes it's like 10 or 15 grand for聽
all that furniture appliances the course applies聽聽
[409]
photography and why would I do that you know pay聽
that with the debit card and get nothing I might聽聽
[414]
as well put it on a credit card immediately I can聽
just pay it off with my checking account and boom聽聽
[419]
I got all these free points so it's important for聽
you guys and I talk about this more in my videos聽聽
[424]
in depth but guys set up your LLC so you can have聽
more credibility from the very beginning and apply聽聽
[430]
for a business credit card so you can start聽
building credit on your business and eventually聽聽
[434]
you can start applying for business loans business聽
lines of credit that can allow you to grow and聽聽
[440]
scale your business all right guys thank you so聽
much for watching part three of this three-part聽聽
[445]
video series if you haven't watched part one or聽
two make sure you guys watch it and also let me聽聽
[451]
know in the comments if you guys like this it's聽
the first time I ever do this I literally had聽聽
[455]
this idea yesterday hit up my boy yesterday I said聽
hey let's do this three-part video series let me聽聽
[460]
know if you guys liked it I wanted to do something聽
different and unique and give you guys an actual聽聽
[464]
experience go over the numbers the strategy the聽
launching the automating also guys there's going聽聽
[468]
to be a link in the description down below where聽
you guys can book a free 15-minute consultation聽聽
[473]
with my team to learn how to predictively generate聽
10K a month on Airbnb in 90 days or less without聽聽
[481]
owning real estate so check out that link down聽
below there's also going to be a free ebook in the聽聽
[485]
link and make sure you guys follow me on Instagram聽
WE Post content every single day and I also have a聽聽
[490]
podcast that we release an episode every week and聽
of course we are releasing YouTube videos a couple聽聽
[496]
times a week so make sure you guys subscribe聽
turn on the notification Bell make sure you guys聽聽
[500]
like this video send me a DM on Instagram let's聽
connect and I'll see you guys on the next one
Most Recent Videos:
You can go back to the homepage right here: Homepage