Airbnb arbitrage

Over the past few days, been reading a lot about “Airbnb arbitrage.” It works like this:

You lease a house or an apartment.

You then put it up on Airbnb, with the landlord’s blessing (you might have to try a few landlords before finding one who’ll agree to it).

You outsource all the Airbnb work like cleaning and handling communications…

You pay your lease…

And you keep the difference.

In a typical case, with a couple of hours of work a month and $2k of startup capital, you can create $1k-$2k cash flow each month (the Airbnb earnings are typically 2x-3x what the rent is).

And since it requires practically no work, you can rinse and repeat with a second property, and a third, and fourth. I’ve read case studies of people who have a dozen or more of such cash-cow properties, none of which they own.

I bring this up for two reasons.

First, you might find it interesting to investigate Airbnb arbitrage yourself. It seems like a genuine opportunity right now if you get the details right. But as with all arbitrage, it won’t be around forever.

Second, I find this Airbnb arbitrage kind of inspiring.

I’ve read stories of seasoned property investors who are saying, “I can’t believe how well this works.”

In their mind, there’s no comparison to the traditional route of taking out a mortgage for $300k, buying a house, finding long term tenants, all for a couple hundo a month.

With the Airbnb scheme, you get about 10x the cash flow, with 1/100th of the risk, and you can repeat as many times as you want.

Same thing if you’re a wannabe entrepreneur and your goal is to create “passive income.”

The standard route to this utopia is to create an online business.

And it’s definitely possible.

But it’s unlikely that you’d be collecting $5k a month within 2 months, which is what many of the Airbnb arbitrage people seem to accomplish.

And the point of all this, to me at least, is the power of a change in perspective.

The right change of perspective opens up incredible opportunities, and eliminates a lot of struggle and hard work.

Even if you’re not interested in starting your own Airbnb empire, I think this is something valuable to keep in mind.

Anyways, the reason I’ve been doing all this reading about Airbnb arbitrage is because I’m rewriting a lead for a VSL. ​The VSL sells a course, which lays out all the details about how to do this Airbnb stuff successfully.

I won’t try to sell you on the course itself.

I won’t even try to sell you on hiring me to write a VSL for you. But if you want some advertorial knowledge, which you could use to create traffic that leads to a VSL, then check out the following:

https://bejakovic.com/advertorials/

How to become a multimillionaire if you’re not smart or lucky

Yesterday, I watched a video by Mark Ford in which he shares his 7 essential elements for wealth building.

If you know about direct response marketing, odds are you’ve heard of Mark or his work.

He’s one of the guys who built up Agora into a $500 million (soon to be $1 billion?) business.

He also started AWAI, a training school for copywriters.

He’s got stakes in other multi-million dollar companies, owns dozens of real estate developments, and — as if all his other activities aren’t enough — he is also a broker of fine art from Latin America.

Mark’s personal wealth is not public, but based on hints he drops, I assume it’s in the tens-of-millions to hundreds-of-millions range. In spite of this, he will flatly claim he is not smarter or luckier than other people. When a guy like this decides to share his advice on wealth building, it makes sense to listen.

So, according to Mark Ford, here are the 7 elements you should have to become almost as rich as he is:

1. Time
2. Financially valuable skills (one or more of marketing, selling, creating, managing, and buying)
3. A high net investable income
4. Knowledge of how individual businesses create profits in individual industries
5. Seeking average returns for each asset class
6. Diversity among 4-5 asset classes
7. Risk aversion

In the video, Mark admits this list isn’t sexy. But, he says, he’s discovered (along with Bill Bonner, the founder of Agora) that…

“…there is an inverse relationship between the value of knowledge and what people are willing to pay for it. The most important things in life you’ve probably heard a hundred times before, but you’re not paying attention. When you’re in the right place and you hear it, you have that ‘aha’ moment and everything changes.”

Like I said, when a guy like Mark Ford speaks, it makes sense to listen.

At least that’s what I’m doing. I guess I’m on a decent path because I’m well along in developing a financially valuable skill — marketing.

In case you’re more of the creating or managing type, then we might be able to help each other out. Get in touch with me, and we can discuss how to get richer together.