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