From the desk of Cody Sperber:
Well…October is off to a great start. We are on track to do $300K plus in wholesale profits (currently at $244,000) and the rehabbing/development biz is on 🔥…22 total projects going on at the moment.
I’m feeling confident the market is going to stay this way for at least 6-12 more months because of extremely low inventory (thanks ibuyers) and historically low interest rates.
But…my #1 focus over the next few months isn’t wholesaling or rehabbing though…
It’s a process I call BRRRBNB.
You see…over the last year I’ve been scooping up luxury (and some non-luxury) Airbnb properties but we are doing it in an extremely creative way (one that you can steal from me)!
Here’s the model:
Step 1 – We find a distressed luxury property from a local Realtor or wholesaler (or on our own).
Step 2 – We examine it to see if it fits our Airbnb criteria
Step 3 – We bring in a financial partner to gap fund the deal. Typically around $400,000 – $600,000.
Step 4 – We buy, renovate, furnish, market, and manage the Airbnb.
Step 5 – We refinance the property once it’s done into long term financing from a lender that lends to LLC’s with no restrictions (4.25%). This pays back our financial partner around 60% of their cash investment.
Step 6 – Whe then run the Airbnb and every dollar that is collected goes to the financial partner until they are whole at which point we begin splitting profits 50/50.
We do the work…they put up the mula & at the end of the day my company owns 75% of the equity and the financial partner owns 25% but we split the profits from running the Airbnb 50/50 ONCE THE PARTNER GETS ALL THEIR MONEY BACK.
WIN/WIN deal for both parties!
It’s an easy money raise (especially once the cash investor see’s the financial model and how fast they get their investment back)…and it’s also great for the investor because they literally do ZERO work and get an asset plus massive cashflow.
Most of our Luxury properties are creating $200,000 – $350,000 a year in top line income…and I only pay 15% to a phenomenal property manager lady who handles all the listings and turnover of the properties.
And the best part is by doing the BRRRBNB strategy versus a normal rental is the fact that these babies cashflow 3-4 times what a normal rental typically brings in!
And now we are starting to buy them in a bunch of killer locations like Vegas, Sedona, Park City, Hawaii etc so the lifestyle part of being able to use our luxury exotic properties whenever we want is going to be awesome.
What do you guys think?
Do you think I should put out some training breaking this strategy down further and show some case studies?
Let me know and if I get enough comments I’ll put something together for you guys.
Also if you are interested in being one of my financial partners just email my business partner Bryant@GreenElephantDevelopment.com and he can go over the program with you.
Hope your October is going great as well and I hope to see you either at Free House Formula Live (we sold 138 tickets and the event is sold out) or at Thrive (Make Money Matter) in November.
From The Training Vault:
Today, I have a content-packed 17 minute video for you where I’m going to show you 5 different ways to evaluate and analyze real estate investments.
Check it out HERE!
Also CLICK HERE to Skip to the 3:53 mark to learn the simple lesson from my Dad that has kept me from getting Sc$w$d by shady business partners.
Recommended Reading:
The Alchemist—Paulo Coelho
This is one of those books I believe everyone should buy instead of borrow.
Paulo Coelho’s books are insightful and I personally find them to be an easy read. To me, The Alchemist is one of his most inspiring novels, probably ever written.
In short, it’s an allegory in which you’ll follow the journey of a shepherd from Andalusia. The alchemist is someone he meets on his way to Egypt to find buried treasure.
Eventually, many ups and downs teach him the importance of finding the ‘treasure within’. Cliche, I know 😂
But seriously, to me this book reveals how anyone can be an “alchemist” by discovering something about themselves.
Also, after I read it, anytime I see it on my shelf, it’s been a visual reminder to keep pushing forward—in life, business and obtaining self-knowledge—because you never know what can happen.
This book is for anyone at any point in life, but I think you’ll find it especially valuable when facing a challenge or while on a path of self-discovery.
Luckily, it’s a fairly short novel, so it’s an ideal book to get to know Coelho and his storytelling approach to life lessons.
This is one of those short reads that absolutely deserved their 300+ weeks on the New York Times bestseller list with over 60 million copies sold! That many people can’t be wrong, go check it out!
Students Success Story:
This is John Wiley from Washington DC. He is a single Dad, mentor for high school students trying to get to college, and a great spirit!
Hi everyone. John Wiley, Washington DC here. I just want to thank my coach, and the team over at Clever Investor for everything.
They are absolutely amazing. Cody’s course is very practical. It also just gives you everything that you need. Our mentor was amazing. She really took the time to walk me through each and every detail, and answered every question – just really patient with me. I am so looking forward to getting out there and getting started because I know I now have what it takes in order to be successful in the real estate industry. If you’re looking for the right way to go, this is it.
