$0 to $2.4 Million in 9 Months Airbnb Business

$0 to $2.4 Million in 9 Months Airbnb Business


hey what’s up guys this is Sam Kwak here
back in the studio and we have a special guest to talk about how he went from
$0 to $2.9 million gross income in just nine months using
Airbnb welcome back everyone so we have cheat our special guest who went from
zero to two point four million dollars in gross income through his Airbnb
business.So, Chi what’s going on man what’s happenin brother what’s going on
so He’s all the way from California he’s here in our studio to share his
story and also through the next two videos he’s gonna share how he went from
zero two point four million dollars gross income so Chi how did you like
let’s let’s go and get to the back story what were you doing before Airbnb and
why did you go why did you choose to transition from what you were doing to
Airbnb well firstly it’s just awesome to be in
chi-town for one and secondly before Airbnb I was in the mortgage industry
Ohio and through the thick and thin of the bill I ran a reverse mortgage
brokerage for like ten years yeah exciting stuff it was so much fun
it paid well but at the end of the day like October 2017 there was a
legislation change that just decimated my business being young and aggressive
at the time I thought if they got rid of my pool of qualifying applicants then I
can just mark it more you know send out more mailers more internet leads but it
doesn’t work that way you know there’s a point of saturation ah but luckily for
that I was able to get into Airbnb because I had I was pretty much out of
money my business was going out and I had to make a critical decision do I pay
for food or do I pay for a rent and hunger wins every single time you guys
every single time so I called my I called my dad I remember I was like I
haven’t seen you guys in a long time I want to come visit and he was like yeah
it’s cool you know the Wi-Fi needs work so come on over
spend two weeks there and I put my property on Airbnb and say I’m gonna
tell you what I was so surprised yeah that my rent was three thousand nine
hundred right in the SF Bay Area and Airbnb paid for that you know in two
weeks I was I was mindful so it’s two weeks so Eric so you were able to earn
thirty-nine hundred dollars in two weeks a little bit more than that but okay so
you came a little bit ahead yeah I’m not sure about you guys by thirty-nine
hundred is a lot of money when you don’t have it and a light bulb just went off
of my head I thought to myself whoa in two weeks if I can pay for rent and make
a little bit of money what would happen if I leave this thing on for an entire
month and curiosity is a huge motivator from that point on through the massive
amounts of cash flow you can earn through Airbnb I was able to scale with
all the profits month after month and over a short time period of just nine
months we ended up with thirty properties that does about 2.4 million
dollars a year in gross revenue and about half of that in profit right on
right on so in your in that journey and we’ll get
to the tactical and you know Wilshire how you know the strategies and all that
but we want to first highlight your story were you married at the time when
you transition or was that like okay so there’s a thing I learned a critical
lesson about we went through through this I was in a relationship at the time
as my mortgage business was going out you know the person that I was with
found many reasons to hate me you know so as a man it’s really important to be
able to provide I suppose you know like it goes back to our natural instincts as
as people you know viscerally women need to feel secure in that you can provide
for them so ah so yeah as I went down we just split up you know and it was not
only emotionally taxing on me through losing my business
it was also emotionally taxing because my other half my support also left me
so I really really was in a really dark time of my life and had to dig myself
out of it I think it was so emotionally impactful this entire experience because
it was just felt like my entire world crumbled on me on all ends that I had to
make it work so hmm so I really do want to thank Airbnb for creating this
incredible platform that not only allowed myself to provide the financial
freedom that I need today and because of that I was also able to meet my wife and
it wasn’t we built this business together you know so it’s a project that
we work on together and she got on really really cool so tell us about and
I know some of you guys might be interested in Airbnb in general tell us
at what point what what are some of the challenges I mean of course having 30
properties it’s you got to have some sort of system right you’re gonna have a
business behind it you have a team behind it
at what point you felt like as you were growing you felt the challenge coming
out you know you just felt that resistance sure so so I don’t know about
for the average person but I’m terrible at responding to things like texts and
emails you know so for me it was immediately mm-hmm you know I couldn’t
like my biggest challenge is responding to things in a timely matter so I knew
that right away I needed multiple assistants to handle
each and every single facet of this business one being being really
efficient and responding to these inquiries that come in okay in case you
guys are not familiar with how Airbnb works it’s very similar to say booking a
hotel but instead of dealing with a front desk person you’re dealing with
individual property owners so and I saw all these requests coming in at first
every time I heard my phone go off with that Airbnb ringtone it it just made me
smile internally because I knew that the bills were going to get paid and you
know and I would put food on the table so but it’s also tip you guys important
that you respond within a minute because if you don’t you fall lower on their
search ranking or I knew that I was terrible at that so
right immediately I hired my assistant and he got right to work and from that
point on it’s snowball to Java wheel so I’m gonna ask a question that everyone’s
asking at this point where’d you get the money because a lot of times what
happens is people think you know you went you went from zero to thirty
properties right how did most people are probably
thinking how did you buy 30 properties what did you do differently then than
the rest of the people out there sure so why this is so attractive is that
anybody can get started so as I was crashing through my mortgage business I
really had no personal funding left in fact I was borderline homeless again
remember I had to choose between food or rent so the thing is a lot of people
assume that the only way you can get into Airbnb is to own the property right
but that is not true with landlord consent you can lease the property and
put it on the platform you know so for me how I had how I started my business
because I had no more money was that I leveraged credit cards okay that as soon
as I left that property on Airbnb for a couple weeks and I saw its potential I
thought to myself it’s time to go all-in you know it for sure definitely Yolo my
business already failed I had nothing else to lose my girlfriend left me at
the time might as well just go for a Hail Mary and see what happens and I
applied for two hundred and fifty thousand dollars worth of credit cards
and I got it pretty much within a week and with that I was able to start about
ten properties really really rapidly and I just kept reinvesting all of the
profits every single month into creating more and more and more property by far
the most lucrative way of creating cash flow in real estate period so how so
real quick is on backtrack how did you get the two hundred fifty thousand
dollar credit card right because most people most people can’t pull it
necessary to qualify for that or most people are thinking wow that’s that’s
out of my realm so a little background story on the Twitter feed that was no
how’d you get how’d you get to that point
short soup a lot of people don’t know that the way credit card systems work
over the way they underwrite that the applicants is through a automated
underwriting system so if you understand all the specific criteria is that the
system is looking for it’ll approve you you know and unlike
applying for a mortgage loan with credit cards you don’t need to supply pay stubs
or tax returns or anything like that it’s just like getting to know that the
woman that you want to pursue if you know exactly what she wants more than
likely you guys will hook up you know so it’s just about understanding what they
want and giving them exactly what we want okay so with the 250 that you come
from the mortgage background so you probably have a better understanding
than most people so what’s that multiple credit cards or is it just one credit
card or yeah it’s a great question so it’s a multiple credit kyle’s so it’s
really difficult to get one large credit card so you can break it up you know and
for me it was it was through 15 or so credit cards to get to that two hundred
and fifty thousand dollar mark now if you’re watching this video I don’t want
you to go out there right now and start applying because you will 100% get
denied okay so there’s a really really really specific and tailored method to
making this happen so so let me sort of regurgitate from what I’m understanding
you started going out you started renting people’s property as if you are
a tenant right mhm so you go and rent out other people’s property and then
with their consent with the landlord’s consent you were able to obviously you
know deck this place out with furniture and bed and all that and then put it on
air baby yep that’s correct Airbnb is just a lot
like tinder you know it’s an online platform but instead of your face that’s
on the profile it’s your property so you have to make it attractive you have to
make it sexy it’s up to you whether people swipe left or swipe right right
all within your control right and I’m not gonna try to explain the after the
pole for people who we don’t know they have because we do have a couple people
you know obviously it’s that’s out of their realm but so yeah because you were
able to run you’re not buying a property right what’s the cost what would you say
per property cost of not only renting but furnishing
the place getting all the furnitures up what would you say is a ballpark figure
in terms of getting one property ready to go it’s different in every single
market just because you have to consider things like you know your first month’s
rent and your security deposit right so being in being from the San Francisco
Bay Area the typical property for me would start at about $4,000 a month so
if you consider first month rent and security deposit that’s already $8,000
okay and now you have to furnish the property the right way and when I say
the right way I definitely don’t mean Craigslist or let go or Facebook
marketplace like what some of these other Airbnb you guys are suggesting
because you can’t scale that way there’s no consistency and your property will
end up looking like a garage sale you don’t want that right so you want to
make sure its pristine you know it’s easy it’s automated that you have your
shopping list ready to go every single time you get a new property and your
rapid fire you know and that way you don’t have to think and you already know
that this look is proven it’s it’s high perceived value and people will pay for
it right you know it’s already proven so you yeah you can move right so okay so
we’ve been talking about how you went from zero to two point four million
dollars growth and that’s gross income and you are achieve that in nine months
so what that what did that nine months look like if we were to go back and look
at cheese Journal right what’s like bimonthly
timeline what what does that look like a lot of amazon packages you know I
remember the very first home that I set up yeah it felt like awkwardly Christmas
in January just because like when I showed up to my door I remember seeing
these boxes piled up all the way to the ceiling and it moved really quickly you
know I got one property and then two property the next month and I sort of
thought I had the system down so it went from two to three a month and then three
they’re like three four five you know and it was compounding because the
amount of income you can make from this is
really ridiculous like I like I mentioned earlier this is by far the
absolute best way to create cash flow and real estate period nothing else
comes close I’ll give you guys an example I don’t touch any deal
regardless of where it is in the country today if it doesn’t make at least $2,000
of profit mm-hmm net income okay so per month per property so if you
think about this month one if I made two thousand if my properties make more than
that but if it just made two thousand by month two if I started a second one I
still have my first one and also the second one so that means your income now
is now four thousand it’s compounding right imagine that your job if you try
to go to your boss and say I want twice the amount of income next month for my
paycheck they’ll laugh at you so case in point is get into real estate and you
know you can create your own future you can grab it and create the income that
you want you’ll get paid as much and as hard as you want at as hard as you work
absolutely so real quick before we move on and we’re gonna sort of wrap this up
but we are gonna come up with a next video which we’re gonna go deeper into
how we’re gonna go talk about the house side right the strategy of what does
cheat look for how does he shop for the properties
what sort of metrics does he look for in terms of making sure that your Airbnb is
profitable so if you want that video be sure to subscribe to this YouTube
channel because you don’t want to miss the next video as well as hit the like
button once again cuz it does help us a lot with our YouTube algorithm so G next
video we’re gonna go talk about how to get started
what’s the metrics and we’re gonna talk about all the fun stuff so to be
continued I’ll see you guys in the next video guys could if you’re interested at
the B&B University oh yeah we’re gonna go and leave that down below and you
link this link description section I will give you guys Chi’s contact
information as well done below so you can go and check that out and again hit
the like button and subscribe and we’ll see you guys in the next video

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About the Author: Oren Garnes

6 Comments

  1. There still opportunity in Airbnb but, there’s a lot of local governments creating a lot of regulations that can restrict business, but don’t let that stop you, I keep trying to teach this stuff on my YouTube channel too 🔥👍👍

  2. These clowns are scammers!!!!! Ive dealt with them…… They use their Asian stereo types to FOOL folks into thinking they are smart n successful 😂😂😂😂😂

  3. What is the specific credit card underwriting guidelines that we need to know? Don't just tell us it's possible but show us how to duplicate it. That is a small but very important little tip he left out. Great story nonetheless. Thanks again for the content.

  4. I had the privilege of going to a Kwak brothers meet up and seen Chi in person I thought he did a great job Keep up the good work! Giving value

  5. Thank you for this!! I have one rental property and am confinced that AirBnB at least for now is the way to go!!
    more of this please!!

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