What investors need to know about Airbnb. How fixer uppers can be Airbnb's - selling my house to southernbelleproperties.com

I find the story below very interesting as I’m sure many local investors will as well. The new trend for homes that are in the right location is to look at short term rentals to generate lots of return on investment. If an investor were to become a partner with Airbnb now in their little hometown when they began to look around the country for additional areas an investor might just have the inside track to a wonderful partnership. Why do most investors think I have to buy fixer uppers or flips ? It is simple many new investors are hypnotized by the Tv shows like fixer upper, flip this house, flip or flop and so on. I will admit I’m sometimes entertained but I realize these are staged tv shows very far from the real world of teal estate investing. After doing hundreds of hours of research about the industry and interviewing many of the best in the business I find that they have many of the same beliefs or practices. First if your the man in charge be in charge, you don’t waste time swinging a hammer doing some $10 and hour demo work. Your focus as the owner or manager is to be looking for the next deal or next lender to fund that next deal. It comes down to it there are flippers and there are Real Estate Redevelopers. Can you tell me the difference ? A flipper may be able to handle a couple of projects at a time ending up with 6 to 9 projects completed in a year if they are good at it. A Real Estate Re-developer can handle from 4 to 12 properties at any given time. Yes 4 to 20 projects going at one time. Your thinking yeah right. It is only done by RED’s they build a great team around them and outsource much if not all of the work. During some of my conversations with some successful investors they talk about the Airbnb strategy very little. I will be attending a conference in December with literally thousands of flippers and a few hundred Real Estate Re-developers, I will update you in mid December on more of their thoughts on this topic. Please read the attached article I have also included some links with more information on the subject. I would like to thank the authors who wrote on these topics.

Airbnb Now to Build its Own Apartments

Daily Real Estate News | Tuesday, October 17, 2017

Airbnb, a short-term rental startup, plans to overcome its disputes with cities over short-term leasing by building its own apartment buildings.

The company plans to build a 324-unit apartment building near Walt Disney World Resorts in Kissimmee, Fla., and says it plans to build more in the near future.

Read more: Airbnb, realtor.com® Team Up

The first building in Florida will be called Niido Powered by Airbnb and will open in early 2018.

Tenants will be able to rent out their units for up to 180 nights every year. Tenants will have access to an app to manage guest stays remotely, oversee check-ins, and arrange for cleaning and linens services. Tenants who rent out their apartments on Airbnb will share revenues with their landlord. Tenants keep about 75 percent of the revenue they bring in from renting it out.

“This partnership shows how landlords, developers, and Airbnb can work together to create value for everyone and better serve tenants,” Jaja Jackson, Airbnb’s director of global multifamily housing partnerships told CNNMoney.

Airbnb has encountered critics in several cities recently that have argued its service is turning some apartments and homes into unofficial hotels. By building its own apartment, Newgard CEO Harvey Hernandez, the developer of the building, says he hopes it’ll eliminate “barriers by encouraging home sharing and creating solutions that work for everyone.”

Airbnb says it is planning a series of developments to support its home-sharing model. The firm plans to first target the southeastern U.S. and then expand to markets like Nashville, Charleston, and cities in Texas, Hernandez told CNNMoney.

Source: “Airbnb-Branded Apartment Building to Open Near Walt Disney World,” CNNMoney (Oct. 12, 2017)
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