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Understanding the Home-Sharing Industry (Airbnb) with Brian Page
In today's episode, we're going to talk all about Airbnb with Brian Page. Brian will also share who he is, how and where Airbnb works best, and why it's a good way to have cashflow. So many things you will learn in today’s episode so don’t miss it!
- Who Brian Page is
- How he got into real estate
- Teaching Airbnb and experiencing living on one
- Understanding short-term rentals or home sharing
- Where you can do Airbnb
- Amount of money you can make
- Kinds of people who rent the areas [Airbnb]
- Why someone would choose Airbnb over a traditional hotel
- The next step to take after finding a place to turn into Airbnb
- Difference between a tenant and a guest
- Who will do the cleaning
- Having a review both ways [guest and Airbnb provider's review]
- His student's success stories
- Parting words for the listeners
- "The key is to get in front of the wave."
- "Finding the owners that wants to try this is the key."
- "Get it up and running, make money off it every single month. Consistent income, consistent cashflow, and then move on to the next one and then keep doing that. Keep repeating the process."
RESOURCES AND LINKS FROM THIS SHOW:
Larry: Welcome to the Brain-Pick-A-Pro Show live from Lake Wylie South Carolina. Hey guys I’m really excited I’ve had a lot of people ask me about Airbnb. And we’re getting ready to do a webinar here before too long about it but I wanted to get the author, the coach, the mentor, the guy, the man himself the legend and the myth Brian Page on to talk all about Airbnb. Welcome Brian, what’s up buddy?
Brian: Hey Larry, how’s it going? Thank you for having me.
Larry: Man it’s going great. How you been?
Brian: Awesome man. I am actually in Australia right now. This is Melbourne Australia that I’m coming to you from.
Larry: Awesome, yeah there’s a little time difference there huh?
Brian: Yes. It is early morning here yeah.
Larry: Yeah I was going to say it looks like we caught you right after daylight right.
Brian: Yes. Exactly.
Larry: That’s really cool man. So let’s just start off, why don’t you tell our listeners a little bit about yourself? Who is Brian Page?
Brian: Sure. Well I’ve been an entrepreneur just about all my life even when I was a kid I dreamt of working for myself. And just tried all kinds of different businesses, launched many different kinds of ventures and most of them for me didn’t work. But I eventually found real estate and got into real estate just right after college roughly.
Brian: And did all kinds of different real estate deals, enjoyed some success there before the real estate bubble collapsed. And that was kind of my work for many years and then eventually I got into home sharing and Airbnb and teaching this to people and that’s kind of been my path for a few years now. It’s been very interesting.
Larry: It’s funny you say home sharing, not a lot of people understand that term right.
Brian: Yeah. Home sharing, there’s many different terms for it. Some people call it short term rentals, home sharing many different ways of calling it and there’s lots of different ways to do it. There are many different services out there now like VRBO and HomeAway and Airbnb has become a big giant industry.
Larry: It really has, hasn’t it? It’s a huge industry. So what about Brian the person? Tell us about you. Do you live in Melbourne? Tell our listeners.
Brian: No, I do not actually, I live in the US in South Carolina actually as well in beautiful Charleston South Carolina. But I am travelling right now for a few months with my wife and we’ve been going to several different countries. We’re actually staying in Airbnb’s.
So I’m living and working kind of from these places like this particular unit here. And just trying to experience what it’s like to be on the other side. And I’ve always wanted to kind of live internationally and this is the best way to do it. So I not only do Airbnb and teach it but I also stay in Airbnb’s when I travel.
Larry: But you’re also a client, right.
Brian: Yes also a client exactly.
Larry: Like the hair comb for men right.
Brian: Exactly and that’s what I really enjoy travel I do a lot of international travel. It’s one of my number one passions. And my wife has joined me I’m newly married and we’re on this adventure together.
Larry: Awesome well congratulations. That’s great.
Brian: Thank you.
Larry: So let’s start out and tell our listeners what is home sharing or short term rentals like Airbnb?
Brian: Yeah sure. One of the things that you and I are going to be doing here shortly is a free online training where I kind of go into depth exactly what I do. But I got involved with Airbnb a few years ago I had been out of real estate for a couple of years.
I basically got to the point where I was nearly bankrupt from the real estate collapse. And I didn’t know how get back into making money with real estate. And I wanted to do it in a way that didn’t require me to go get debts and to go buy properties again because I wasn’t able to.
Brian: So what I did is I basically just started with what I had which is a rental. I had an extra two bedroom and I put that on Airbnb because I heard people were making money that way. And I ended up where I made over six figures in my first six months on Airbnb and over 300,000 in my first year. And I did it all without owning any properties at all.
I just worked with property owners in other words leasing properties, and then taking them and putting them on Airbnb. And there’s tremendous amount of cash flow that you can build doing this. And then over the course of the last years and a half or so, I started getting a lot of requests for people to teach them how I did what I did.
And I that led into me becoming kind of a teacher and having a whole another business. And now I teach people around the world even here in Australia how to do this as a business. Not just cute little room or one little property in Airbnb but how to build a big portfolio with Airbnb.
Larry: That is awesome. And the coolest thing about it, you don’t even have to own a property to do it, right.
Brian: Yeah, no. you do not need to own a property no. it’s a great way to build equity and wealth if you do own rental properties and you want to go that route. But for those of your students or most people don’t have vacant properties around that they can try this with, I can show them how to not only locate the properties but how to get the owners on board. Which is a little easier than you think, and then start making money every single day. Actually you can make daily money with Airbnb. It’s pretty cool.
Larry: That is really awesome, that’s really cool. Now so a lot of people who say, “Well I don’t have any money I don’t have any credit I can’t get started,” anybody could sign a lease, right.
Brian: Yeah, well no I started my credit was decimated. I had no savings to speak of when I started. And no I talk about exactly how to do that, how do you work with an owner when your credit’s not great? How do you get approved for leasing? And also how to do it on a month to month basis.
There are ways to do this business where you don’t have to sign a long term lease at all. You can actually partner with the owner and share some of the revenue with them. There’s several different models to do this but all the models that I teach are based on using other people’s properties.
Larry: Wow. So give us an idea as far as the amount of income that somebody could earn on a particular property. Like if it’s a house, I mean do these houses have to be in resort areas or places like Melbourne Australia or Charleston South Carolina to be able to make money?
Brian: Well I’ve gotten on that I’ve had several thousand students go through the program and do exactly what I teach. I’ve seen people doing this successfully in everything from big cities to very small towns to college towns. In fact I’ve got one student that’s got cabins in rural Canada.
Brian: He’s out in the middle of nowhere, he’s the only one with listings in his entire county. He’s got five cabins that aren’t his by the way and he does very well with them because people want to go stay in the woods there. And they use Airbnb to do that. Another student have focuses on college towns. He’s in a small little college town of about 30,000 people does extremely well.
So it doesn’t have to be necessarily a big city, there are many different types of towns and cities and locations that you can do this. And it’s more finding the best location in your particular area. So the amount of money that you can make that’s completely relative to how much the property costs. So some students are getting into very cheap one bedrooms and studios that cost five, six, $800 a month.
And they might be making five, six $700 net cash flow. And then I’ve got other students that are doing literally multimillion dollar properties where they’re bringing in over six figures on a property. Now I’m not saying that’s typical, it’s not typical.
Brian: But generally I’m seeing a lot of people can make double or even triple if they have a hot property, in other words if they rent a property for 1000 they might be able to bring in 2000 or 3000 a month with Airbnb. Which is unlike anything that I’ve ever seen in real estate. I’ve done every kind of real estate deal you can imagine from flipping to wholesaling to renting, owning and being a landlord and cash flowing multifamily property all that stuff.
You really can’t make that kind of cash flow with long term renters. But you can by renting your own bnbs. And that’s the power of doing home sharing, is that you’re essentially just playing arbitrage between how much you can rent a property for and how much that property will bring in by essentially getting nightly guests in that property.
Brian: And it’s a tremendous model, it’s an old model. It’s the same thing that hotels do except that we’re doing it in private properties.
Larry: That’s huge, I love that. It’s like do you want the whole pizza pie or do you want to buy it by the slice, right.
Larry: So you’re buying it by the pie and you’re selling it by the slice right.
Larry: That’s really good. Now you mentioned it doesn’t necessarily have to be in a resort area. Who rents these Airbnb properties? Is it people travelling on vacation or is it business or coming in town for weddings? Or what’s the typical client look like?
Brian: There is no typical client. It’s about as diverse as you would see with hotels. So depends on where you’re located. If you’re in a resort area, obviously you’re going to get skiers in Colorado and you’re going to get beach travelers in Florida at the coast and that kind of thing.
But in cities like Atlanta Georgia or Dallas Texas it could be people just coming for a conference. It could be people coming to visit their friends and family to come visit a local college. If you’re in an area that does big conventions it could be that you’re servicing people that go to the conventions.
So it’s really not one particular kind of person and the client, the guests can vary completely differently depending on what city and what area you’re in. But the demand is growing exponentially, in fact the number of Airbnb listings has been going up almost doubling every 18 months.
Brian: Yeah every 18 months, in fact just a few years ago Airbnb was so small that it was just kind of a blip on the radar. And now it’s to the size where the number of travelers with Airbnb is equivalent to the largest hotel chains in the world. But yet even with those numbers, even with that growth it’s still the hospitality industry is over 99% hotels and inns and regular traditional hospitality.
So it’s still a very small slice but what’s happening now is there’s a trend and the trend is people want to stay like I’m staying in this beautiful two bedroom condo overlooking Melbourne for way less than one hotel room. So I have an expansive two bedroom condo for cheaper. So why wouldn’t I stay here, right? And that’s the opportunity that you have when you travel with sites like Airbnb.
And it’s why people are now choosing to do this and that’s why there’s so much demand. So there’s a tremendous demand and as more and more people learn what it is, they’re going to start travelling this way. And the key is to get in front of the waves, get in front of the trend.
Larry: That’s awesome. In fact I was just getting ready to ask you, why would someone choose Airbnb over a traditional hotel? But I think you just answered that.
Brian: Oh there’s way more than that. I mean you go to a city like Las Vegas, there’s many cities that add on all kinds of fees and taxes and resort fees and all that stuff. So your price on what you get for the hotel actually goes up. And generally the hotel experience is people go to a giant box, then sleep in a box and that box looks like every other box.
And every hotel room looks exactly alike, and if you stay in a Hilton it looks like every other Hilton pretty much. I mean it’s the same experience, it’s a commodity experience. And when you go to an Airbnb you’re staying in an actual personalized property, it doesn’t look anything like anyone else’s property.
And it’s a very different experience. And if you want to stay in a four bedroom home, you could. If you want to stay in a four bedroom home, you could. If you want to stay in a castle or yacht or anything you can get it on Airbnb, whereas with hotels you can’t. You just get a hotel room and it’s a very different kind of thing.
And also the cost I mean, what you get for your money is tremendously more with home sharing. So once you try it out and you realize how I works it’s like me I want to live like a local person, I don’t want to be in a hotel district. And here being in this condo I feel like I live in Melbourne I don’t feel like I’m a visitor staying in a massive hotel with a whole bunch of tourists.
Larry: That’s awesome. You get to dig into the culture.
Brian: Yeah that’s the thing, that’s kind of what Airbnb talks about, is living like a local. And that’s what you get to provide for people when you get into this business.
Larry: That’s really cool, that awesome. So let’s get into some nuts and bolts, let’s say you’re out there you find a property that you want to lease, from someone and turn it into an Airbnb. What’s the next step? I mean you first sign a lease with them or you do a partner program with them. And then you got to furnish it right?
Brian: Yeah and that depends and I go into this real in depth, and we’re going to be talking about this in the training that we’re doing. And it’s totally free by the way if you guys want to check this out.
Larry: Yeah we’ll have a link below that they can launch.
Brian: Yeah we’re going to have a link and essentially you’re either going to find- I try to focus on finding furnished properties. Not every property is going to furnished so if you find one like most of my listing are not furnished. So what I do is I teach people how to furnish it quickly and in expensively. And then get that money back in your pocket that you spent to do the furnishings.
So it does take some time and effort to set up the listing but once you set it up, the kind of cash flow that you’re making, it’s so worth it because in traditional real estate if I had a studio apartment for example and I rented it out to a long term tenant let’s say I own the unit, I might make two, $300 a month somewhere in there $400 a month cash flow.
But if take that same listing that I don’t own, I furnish it and then I put it on Airbnb, now I’m can make $2000 a month. And actually I’ll show you my account in Airbnb where I’ve made that kind of money, $2000 a month on one little tiny studio apartment which is unbelievable. But that’s what’s possible. So to answer your question, yeah I show people exactly how to break it down so that they get it set up properly.
And finding the properties is the key, finding the owners that are willing to try this and do this is the key and I’ve kind of cracked the code on how to do that. Because I’ve talked to so many owners and found out what their objections were and why they’d say no and why they’d say yes. And now I got it down to a system where it’s very easy to basically talk to an owner and tell them what you do and have them say, “Yeah I’ll do that with you.”
Larry: It’s plug and play.
Brian: It’s actually beneficial to the owner, there’s many different reasons why there’s actually going to be less wear and tear on their property. It sounds crazy but it’s actually true because when guests stay in a property they’re not going to come in and paint the second bedroom pink right. They’re not going to have pets digging holes in the backyard because they don’t have pets with them.
They’re not going to treat the property like it’s their own and do all kinds of modifications and crazy stuff that tenants do. Tenants cause problems, guests generally vast majority do not cause any problem. So it’s a very different kind of model. And once you explain that an owner, and they understand that there’s going to be a cleaning company coming in every other day to clean their property top to bottom and make it absolutely perfect, they’ve never seen anybody maintain a property to that standard.
So when you explain to them and educate them then they’re like, “Oh I get it,” and I’ve seen so many owners tell me, “Oh my gosh my property has never looked like it does now. You’re the best tenant I’ve ever had.” And that’s while running a BnB.
So once you understand how this works and the owner understands how it works then you start getting people that will come to you and say, “Oh my gosh Brian I’ve got another listing you can have, I got another property you can have that you can put on Airbnb. I teach exactly how to do that.
Larry: Wow that’s huge. And just to reiterate we’re going to have a link below where you guys could sign up for that free webinar. But I think you hit the nail on the head, the difference between a tenant and a guest. I love that analogy.
Brian: Yeah because I was a landlord in the past with all kinds of units, and tenants cause all kinds of problems because to them that’s their place. So I had an owner contact me a few months ago and he actually said, “Hey Brian you told me originally what you did and I wasn’t sure if I wanted to try it. But now I’m ready because I’m sick and tired of these college students destroying my beautiful properties.”
And he has these million dollar plus properties in a nice part of town and these students come in and what they’ll do is they’ll put a satellite dish on the roof without asking permission. They’ll change the property in some way they’ll let the yard become overgrown or have bonfire in the backyard. All these crazy things that a guest would never do.
A guest is coming in for two days with their wife or something and then leaving right. And you can specify that your guests are never going to smoke in the property, they’re never going to bring a pet with them if you want to have pet free guests. They’re going to have reviews, they’re going to leave a deposit with you, they’re going to have their identification with you.
All these things are done before the guest ever shows up. So I’ve never had a gest trash a property, I’ve never had a guest do these horrible things that I see with tenants. So when you educate an owner about how that works then they’re much more likely to say yes. And that’s kind of what I do. So it’s beneficial to the owner.
And in fact sometimes you can even offer the owner slightly more than what they would normally make. So one of my listings is a $1200 rental so two bedrooms and I offered that owner $1300. And I did that because I knew $100 made no difference to me at all.
Larry: That’s awesome, that’s really good. Now you mentioned about cleaning, does that not cut in a lot into your profit?
Brian: That’s a great question. Well first of all you never have to clean do this business. You don’t have to clean properties, you don’t have to- the way I teach you can even outsource the communication with the guests. In other going back and forth with the guests. I teach how to automate everything, so you’re removed from the process as much as possible. But no, the cleanings are charged directly to the guests.
Brian: So if the cleaning let’s say earns you $80, it’s added on at the time they check out with Airbnb. So the guests automatically pays you an extra $80 which you turn around and you pay to your cleaner at the end of the month. So no the cleanings do not come out of your pocket at all, so that money goes in your pocket whatever is left over after you pay the rent and expenses.
Larry: That’s really cool. You also mentioned about reviews. So the guests get to review the property and as an Airbnb landlord for lack of a better term or provider, you get to review the guests as well. Correct?
Brian: Yes you can review both way and basically it allows you to go in and say we’re only going to accept guests that have already stayed in someone else’s place and given them a good review. And that way you get the best people staying in your properties.
And yeah it’s all the same way that when you go on EBay somebody has reviews and you get to see is this person trustworthy, is this somebody that I want to work with. And that’s essentially the same way it works with Airbnb. So the typical person that uses Airbnb is somebody that obviously has to have a credit card because they’re putting it on the site.
They’ve already paid in advance in full because as soon as they book the place even if it’s a month out they’ve already paid for the place. So the money is already there so you’re not going to ever not get paid. Airbnb holds the money and releases it once the guest checks in. you can also specify that you want somebody to have their license or their passport.
So you know who it is, you know without a doubt who’s staying in that property. It’s pretty cool. So everything is all put in there so they thought about these things. So you’re as safe as possible. And I thought about all these things as well because I’ve worked with owners these are someone else’s properties I got to make sure that I’m taking care of them.
Larry: That’s really good. Yeah I was about to ask you about the collections but it sounds like they just put a credit card in and Airbnb handles everything, collecting the money and sending you your money right.
Brian: Yeah, you don’t have to advertise with this business because Airbnb does the advertising, you don’t have to collect payments. Really all you do is you create your listing online which is not hard to do, and then you start adding listings. So you might start the first a lot of my students the goal is what I teach is within 30 to 60 days to get your first listing up and running.
And then after that work on looking for your second listing and then keep building. And I’ve had students that have literally gone out and they got three or four listings like in no time. And I’d say the average is one or two listings within the first few months and that’s the goal. Because one listing is great you can make some money doing that.
But the goal is to scale it, you can scale it to really any height you want, in fact Forbes Magazine just talked about there’s 75 people that make over a million dollars a year with Airbnb which is mind blowing. So seven figures and I’ve actually interviewed and talked to some of these people and it’s really cool to see people have 60, 70, 80 listings on Airbnb.
Larry: Wow. That many people making over a million a year that’s huge.
Brian: Yeah and actually that was written a while ago. That article came out a couple of years ago so that number has gone up tremendously. And the number of people that are earning over six figure is in the thousands of thousands.
Larry: That’s great. So man this is really great information. Guys watching this you need to sign up for this webinar just get on the link right below and sign up for the webinar. On the webinar you’re going to go into a lot more detail, right Brian?
Brian: Yeah I’m going to go into a lot more detail obviously there’s a lot of different moving parts with this. I’m going to show you exactly inside my account what I earn with my listings. I’ll show you photos of my properties and exactly what I’ve done like to kind of open the door and show you. And then also you’ll get to hear from some of my students that have gone through the course and got their own results.
So that you know that it’s not just Brian that did this but there’s lots of people that are doing this. But no one else teaches what I teach I’m the only one that teaches this system. And the most important thing about this system is once you get this business up and running you ought to be able to remove yourself from the equation.
So that you have cash flow coming in now without you having to go “work for it” right because we don’t want build a job for ourselves. We want to have just like somebody owns a hotel building and they hire someone to manage it, we’re going to do the same thing with our BnBs. Because we have like a little- think of it like a hotel where all the rooms are spread all over our city.
We’re going to have the same thing, we want to be able to have somebody manage that hotel for us so that we can work less and less. So that’s totally possible to actually work very part time and yet have a tremendous income with this business.
Larry: That is great. And I know you’re going to dive really deep on the webinar and share a lot of success stories. But just tell us about some of your students and some of their success stories before we go.
Brian: Okay, sure. Well I have a gentleman named Dave Bynum actually he is a good example because he’s not in the webinar he’s a more recent student. And you’ll hear from three or four students on the webinar. But Dave is out Phoenix Arizona Scottsdale area. And he decided to take my program and my teaching and go do high end properties.
So he went and his first property he ever got was a multimillion dollar home in Scottsdale. And now I don’t recommend starting this way because it’s expensive to go get a five to seven- I think it was a $7000 a month listing. But 7000 is a lot of money to pay for a rental but he made over six figures in bookings. Over $100,000 in bookings in the first like 90 days.
Brian: So you can do the math okay, $7000 a month, $100,000 in bookings in just a few months. So he’s profiting very handsomely on that property and then he went and got I think he’s up to like four or five big properties. And he’s like, “Hey Brian there’s no competition because these people have these big properties, they’re not finding tenants for them.
I can go to them explain to them what I do and then make tremendous money renting them out.” He’ll put a guest in there for $500 or $600 a night and that’s what he does. So he’s been doing extremely well with the high end luxury properties.
But you don’t have to start there, you can start with a small little $800 studio apartment, studio condo or townhouse. And I teach people how to just start with one, get it up and running make money on it every single month, consistent income, consistent cash flow. And then move on to the next one, and then keep doing that repeating the process.
Larry: Wow, that’s really good. So he’s really crushing it out there in Scottsdale. That’s awesome.
Brian: He’s crushing it but I mean I have so many success stories and video interviews with people that have gone out and got their first, second, third listings. It’s not rocket science in fact you could do it on your own I mean you could go get a listing without me, without my training.
You could certainly go get it but if you want to build a business if you want to build an actual BnB business that’s scalable and not pull your hair out and know how to do this at scale, that’s what I teach. That’s the expertise that I bring to the table.
Larry: That’s really good. Well I always say success leaves clues and you’re obviously successful with it, you have a lot of other students that are successful with it. So guys make sure you get on that webinar, the link is right below. Click on this link, register for the webinar it’s coming up very soon. So make sure you get on there and check it out.
Brian thank you so much for being on today I really appreciate it. It’s been a lot of fun as a kind of a preview for the upcoming webinar, I really appreciate it. So what kind of parting words to you have for our listeners?
Brian: Well thank you first of all Larry for talking to me and letting me talk to everybody else out there. The partying words I would have for you guys is that this is a massive change in the way people travel. It’s disruptive just the same way Uber has completely disrupted the way that we travel. Instead of using taxis we now use Uber.
This is now happening in the hospitality industry. And it’s the ability for us to go in and make what I believe is really important which is cash flow, is very important. If you’ve read Rich Dad Poor Dad it’s all about the cash flow.
Brian: How to make cash flow and make it quickly like in the first 30, 60, 90 days have a business. I don’t know many businesses where you can become profitable in 60 days but you can in this business and you can do it without having to go get hundreds of thousands of dollars in debt to go put down a big downpayment.
You could just do it using other people’s assets which is brilliant and if you want to learn how to do that, you want to do it quickly and you want to create either a little side hustle or a side income or you want to build a big business like I did, then I can teach you how to do that. And it’s all going to be explained to you in this free training.
Larry: That is awesome. Guys make sure you register for the webinar, it’s going to be Brian and I live on the webinar so I’m really excited about that. So make sure you click on the link below and register for the webinar, and we’ll see you there. Brian thanks a lot buddy I really appreciate it, I hope you enjoy your vacation.
Brian: Alright thank you so much Larry and I’ll see you guys all in the training very soon.
Larry: So great, thanks a lot. Bye-bye everybody.