New to this platform. Need advice with Airbnb Arbitrage

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New to this platform. Need advice with Airbnb Arbitrage

Angelica Byrne
Member since 2024 · 3 posts · 1 vote

Hello everyone,

I am newbie to this network and with investing in general in real estate. I have come across a few investing academies that help you set up an LLC and pretty much hold your hand in setting up your first arbitrage or Airbnb property. One seems legit but the price for the course is 11k. Is it worth to pay that much for 1:1 coaching for 6 months and a laid-out course? If I don't do any of these courses, any other resources someone suggests for help in getting started on arbitrage?

I am ready to start investing in real estate but know no one personally already doing it.

Thanks a bunch

Excited to start learning and connecting with Bigger Pockets community!

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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Angelica Byrne:

Hello everyone,

I am newbie to this network and with investing in general in real estate. I have come across a few investing academies that help you set up an LLC and pretty much hold your hand in setting up your first arbitrage or Airbnb property. One seems legit but the price for the course is 11k. Is it worth to pay that much for 1:1 coaching for 6 months and a laid-out course? If I don't do any of these courses, any other resources someone suggests for help in getting started on arbitrage?

I am ready to start investing in real estate but know no one personally already doing it.

Thanks a bunch

Excited to start learning and connecting with Bigger Pockets community!


 Personally I could not justify investing $11k in a course that teaches you to rent a property then turn around and rent it to others. 

Also for me I do not consider this as investing in real estate. You may run a company but you are not investing in real estate as you don’t own anything. You are a renter and subletting that people rebranded to make oodles of dollars on.

I would also be curious to see how profitable this is, especially as the economy continues to show more signs of major cracks

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  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    Hey @Angelica Byrne, welcome to the BP Forum! What is the draw for you to do Airbnb arbitrage? Have you identified a property? 

    [email protected]
    1Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y
    Quote from @Angelica Byrne:

    Hello everyone,

    I am newbie to this network and with investing in general in real estate. I have come across a few investing academies that help you set up an LLC and pretty much hold your hand in setting up your first arbitrage or Airbnb property. One seems legit but the price for the course is 11k. Is it worth to pay that much for 1:1 coaching for 6 months and a laid-out course? If I don't do any of these courses, any other resources someone suggests for help in getting started on arbitrage?

    I am ready to start investing in real estate but know no one personally already doing it.

    Thanks a bunch

    Excited to start learning and connecting with Bigger Pockets community!


     Personally I could not justify investing $11k in a course that teaches you to rent a property then turn around and rent it to others. 

    Also for me I do not consider this as investing in real estate. You may run a company but you are not investing in real estate as you don’t own anything. You are a renter and subletting that people rebranded to make oodles of dollars on.

    I would also be curious to see how profitable this is, especially as the economy continues to show more signs of major cracks

    7e investments53 Reviews
    WebsiteView Page
    3Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Angelica Byrne

    can you start with a house hack? if STRs are something you're interested in, then house hack an STR.

    do not start with a random $11K course.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    I hate to be a pessimist but if you search on here most do not have good things to say about arbitrage. Let us use an example:

    Average 3/2 pool home in Pinellas County within 10 mins to the beach, $3000-3500 per month rent. Lets say you negotiate $3,000. Add utilities, lawn and pool care $800-1000. Lets go under at $800 so now monthly expenses are $3,800. Furnishings and outfitting run about $20/ft professional but if you DIY at $15 and its 1,500 sq ft $22,500.

    AirDNA has the property at $65,000 Annual Gross. That is $5,400 or so per month so $1,600 profit. That is $19,200 annual profit so you would be -$3,200 in 1 year with no factoring of breakage and maintenance. Its a risky expensive job.

    Obviously this is one market but the trend is not positive.

    [email protected]813-563-0877
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  • Angelica Byrne
    OP
    Member since 2024 · 3 posts · 1 vote
    1y

    Hi @Jaycee Greene thanks for the welcome. The draw to Airbnb Arbitrage is due to not a lot of capital to start with. I don't have a lot of capital to buy a property right now in the area that I would like.

    0Reply
  • Angelica Byrne
    OP
    Member since 2024 · 3 posts · 1 vote
    1y

    @Nicholas L. Aside from arbitrage, I am looking into multi units. If I go the multi-unit route I would put myself in debt for a bit, which is fine for long term investment. Then again, I just don't have the knowledge or guidance on how

    0Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1y

    @Angelica Byrne

    can you just save up enough until you are able to house hack?  arbitrage is not a short cut to owning property.

    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    1y

    We've paid more than $11k for a mastermind and haven't regretted it one bit! Your networth is your network! And while these groups help you a lot with the actual strategy, the best part is the network you'll gain which pushes you 10 times further then googling all the free stuff. It also helps you look more professional at the start instead of someone looking like they barely have a clue, which makes others hesitant to work with you. I'm not sure what group you have your eye on, but I know that Michael and Elizabeth Chang has one of the best STR arbitrage groups out there!

    [email protected]330-557-3021
    1Reply
  • Dan Schwartz
    Real Estate Investor · Tempe, AZ · Member since 2012 · 874 posts · 648 votes
    1y

    Data point: we have a long-term rental in a popular STR neighborhood listed through Zillow right now.

    Every person who writes asking to do some sort of arbitrage is blocked by the Zillow platform.

    I don't even have to say "no thank you anymore."  Zillow blocks them automatically.  Not because I asked it to.  It just does.  Which means to me that Zillow is cracking down on people hunting for arbitrage on its platform.

    Consider that, and other potential barriers, when assessing your marketing tools.

    0Reply
  • Diane Pizarro
    Real Estate Agent · Oahu · Member since 2024 · 2 posts · 1 vote
    1y

    @Sarah Kensinger do you mind if I ask which mastermind class you took? I'm completely new to this, just signed up, and I've scheduled a call with one of them that posts a lot on social media...maybe the same one. I'm seeing a lot of negative stuff here and it's a big price tag, but for me I think I really need the coaching rather than hunting and pecking on my own since my learning curve is huge and I don't even know what region to begin in. Thanks!

    0Reply
  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    1y

    The chances of you getting $11K in value from a course is likely quite slim.

    1.  Spend at least 2 hours per day researching online about your desired investment strategies. Save related articles to the cloud for reference. 

    2. Attend every local REI MeetUp you can. Business is about relationships; with the right relationships, you'll have much of what you need to get out of the starting gate. There is simply no substitute for creating relational capital.

    3.  Use the $11K for marketing instead of for a course which, at best, will be generic and will lead to the next course upsell. 

    0Reply
  • Sebastian MarroquinPro Member
    Real Estate Agent · Pasadena, CA · Member since 2015 · 477 posts · 263 votes
    1y
    Quote from @Angelica Byrne:

    Hi @Jaycee Greene thanks for the welcome. The draw to Airbnb Arbitrage is due to not a lot of capital to start with. I don't have a lot of capital to buy a property right now in the area that I would like.


    People that get into businesses like these have a common thread, they are go getters and hustlers! Which is great. But do look at the shiny penny and spend big sums of money to learn. If you would really like to explore the sector : why not go and message 10 to 20 operators and offer to look after their property or clean their property for a month in exchange for their knowledge and details on the numbers. I bet they would jump on it to save the money- or simply help them with social media marketing etc. The point is to work for knowledge instead of the $11k price. 

    Aside from this: I would become a middle woman! You could look into different sectors in real estate and see what you like and what you are good at; think 

    1. Real estate sales 

    2. Construction 

    3. Air b and b 

    4. Staging 

    5. Design 

    6. Marketing 

    Etc etc 

    I have done this all my life. Ill give you some examples: 

    1. Real estate : you could become good at advertising and marketing or simply asking people you know if they want to buy or sell: Any realtor will give you $1k to $5k depending on the price to get that buyer  or seller. It will take you about 60 to 90 days to create some momentum but think about it. After 6 months : if you start getting 1 per month. That’s 6 in 1 year : or $6k minimum 

    That’s more than any rental out there would give you per month in cash flow lol 

    2. Constuction : Any contractor would again, give you $1k to $5k for a ready to start project. 

    Same idea. 

    3. Marketing ; the same and the ideas keep coming and coming 

    My thinking is that you need more income and a sellable skill. 

    Once you make some money - you will prove the concept and once you prove it, you will have a skill that you can charge a lot from and then use it to make more income and then invest in RE ;) 


    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    1y
    Quote from @Diane Pizarro:

    @Sarah Kensinger do you mind if I ask which mastermind class you took? I'm completely new to this, just signed up, and I've scheduled a call with one of them that posts a lot on social media...maybe the same one. I'm seeing a lot of negative stuff here and it's a big price tag, but for me I think I really need the coaching rather than hunting and pecking on my own since my learning curve is huge and I don't even know what region to begin in. Thanks!

    We're part of STR Secrets so if you've been checking out that group feel free to reach out! I highly agree that coaching or even just joining a group that can help you learn the ins and outs, is worth every dollar. It does save so much time, and you also get great advice on what to do or even watch out for. There's nothing like the experience of others to help you not only sound more professional in the beginning but also miss a TON of pit falls! 
    [email protected]330-557-3021
    0Reply
  • Diane Pizarro
    Real Estate Agent · Oahu · Member since 2024 · 2 posts · 1 vote
    1y

    @Sarah Kensinger Thank you so much! I've been reading a ton here as well and am learning every day. I appreciate the willingness of you and everyone else to share!

    1Reply
  • Scott Anderle
    Property Manager · Nashville, TN · Member since 2018 · 22 posts · 16 votes
    1y

    Welcome @Angelica Byrne! I live in Nashville, TN. I used to help manage 30+ STRs in the city with a McSwain Management. Now I am getting in the game myself. Right now, I have one STR that is a house hack.

    There is a REI meet up happening once a month that I go to. Would be great to have you there. We are meeting This Friday (Feb 7) at 7am at Just Love Coffee, 1528 Demonbreun St, Nashville, TN 37203

     

    1Reply
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