Maximizing Earnings from Properties You Don't Own

Author

Nicholas Burrus
December 04, 2023

Presented by Astra Properties LLC
Maximizing Earnings from Properties You Don't Own: An Insider's Guide!
By Nicholas Burrus · 12/04/23
Thanks for tuning in todays read! Read time for this week is roughly 9 mins

Welcome back and Happy Monday!

We love the idea of getting rewards on real estate with minimal risk, and that's one of the things we’ll discuss today.

Risk without owning is something everyone would go for.

So how can we make that happen?

Let’s dive in! 

Lets Go Waiting GIF by The Animal Crackers Movie

Start Your Own AirBnB Business Without a Property

You don't need to invest in a property to become an Airbnb host. 

Some are make a living by simply pointing to ideal properties for travelers to lease. It's called "rental arbitrage.”

Stay careful as Airbnb is constantly updating its regulations and guidelines. Do you own due diligence in your area to see if this can work for you

Here’s how it works:

Find a centrally located property and sign a long-term lease for these properties with the owners (lessor). Once leased, rent the space out to travelers as a lessee.

Check with the lessor first to ensure you can do this on their property.

Don’t want a sticky situation down the line 😓 

The beauty of rental arbitrage is that it's less risky yet lucrative for the lessee. You don't have to spend a fortune on a property to rent it out. Because the property is centrally located, it will attract a lot of travelers.

Of course, you have to spend money to make money, so there will be some fees to settle as you become an Airbnb host. 

This model is great for new investors who aren’t in a position to take larger risks, or have low capital to work with.

The goal:

Build a small portfolio of properties you don’t actually own!

Easier said than done, but educate yourself on the model, and if you think it’s a fit, execute on it.

Some things to consider before diving into rental arbitrage:

  • Rental to travelers should be short-term only

  • Short-term rentals should be legal in the state where the property is located

  • You'll pay the security deposit (about two month's rent) to the property owner

  • You have to hire an attorney to broker the deal

  • Secure appropriate insurance

  • Furnish the property to make it attractive to travelers

3 Ways to Invest in Your Education as a Real Estate Investor

Investing in real estate is lucrative, but

not without effort! 

It takes continuous and constant learning to become better and grow daily.

The game is always changing, so keeping yourself in the loop is the 🔑 to success.

That's why investing in yourself is crucial to your success. 

3 ways to invest in your education:

Read: That's right, continue being a voracious reader and learn about the ins and outs of the industry. Many books and blogs can teach you basic to complex real estate investing strategies and rookie mistakes to avoid.

Hint - subscribing to our newsletter is a start!

Our top books?

We’re glad you asked!

Listen: Search for podcasts by industry experts to learn valuable techniques, insights, and information on real estate investing.

We suggest starting with interviews of successful investors and industry experts to improve your skills. 

Want some favorites?

Got you.

  • BiggerPockets Real Estate Podcast

  • Commercial Real Estate Investing From A-Z

  • BiggerPockets Real Estate Rookie

All these are available on Spotify. Not sponsored by BiggerPockets, but BP feel free to sponsor us if you’d like 😅 

Learn: Attending workshops is a great opportunity to learn new skills, connect with fellow investors, and find mentoring opportunities.

How to?

  • Attend Networking Events

  • Join your local Chamber of Commerce

  • Find a mentor

Investing in a mentor (at least for us at Astra), is a game changer.

Having someone to keep you on track and accountable will help push you 10x further than you think.

Invest in the right mentor is investing in yourself.

💫 What Else is Poppin? 💫 

10 “Mungerisms” to Become a Better Investor

Charlie Munger, the iconic investor, businessman, and philanthropist, has died at 99.

As the longest-serving VP at Berkshire Hathaway, Munger was known for his deadpan humor, witty one-liners, and investing mantras. In honor of the legendary exec, we're sharing some of our favorite Mungerisms:

10 Mungerisms to Become a Better Investor

"If I can be optimistic when I’m nearly dead, surely the rest of you can handle a little inflation."

"The big money is not in the buying or selling, but in the waiting."

"All intelligent investing is value investing, acquiring more than you are paying for. You must value the business in order to value the stock."

"Invert, always invert: Turn a situation or problem upside down. Look at it backward."

"Live within your income and save so that you can invest. Learn what you need to learn."

"Lifelong learning is paramount to long-term success."

"The best armor of old age is a well spent life preceding it."

"A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control."

"I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up, and boy, does that help—particularly when you have a long run ahead of you."

"The world is not driven by greed. It’s driven by envy. I have conquered envy in my own life. I don’t envy anybody. I don’t give a damn what someone else has. But other people are driven crazy by it."

Rest in peace, king 🙏 

What’s going on with Apple? 🍎 

Tech giant Apple has ended its credit card partnership with Goldman Sachs Group Inc.

An insider familiar with the matter says the partnership will end in "12 to 15 months."

Apple has yet to find a replacement for Goldman Sachs.

What does this mean for you, an iPhone user?

The broken ties between Apple and Goldman Sachs will affect products like Apple Card, Apple Savings, and Apple Pay.

  • The Goldman Sachs Group, Inc. reported net revenues of $11.82 billion and net earnings of $2.06 billion in the third quarter of 2023.

  • Goldman’s shares got a 1.7% boost over the past six months compared with the industry’s 1.5% growth.

  • The group tried to offload General Motors' credit card program earlier this month.

Click the links for more info on each section

Weekly Mindset Check In 💡 

It’s that time!

Time for us to check in and ensure everyone is on the same page and feeling like their best self.

Tip of the week:

Meditate

Every morning I strive to meditate for at least 5 mins.

This leads to focus and clarity throughout my day.

I noticed when I fall off even for a few days, it effects my mood, productivity, and focus throughout the day,

Taking care of yourself physically is a part of life.

But many overlook their mental and emotional health which is also essential 

Take my word for it.

Find a way to squeeze it into your daily routine, even for just a few minutes.

You’ll feel the difference almost instantly 🙂 

Never forget to water your pot daily

Catch the latest episode of the AstraCAST podcast!

Have you subbed to our podcast yet?

You can catch me and Marcos on YouTube, and soon Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.

Don’t be shy, check us out here!