Epic Real Estate Investing - Good News for An Exit Strategy You Might've Overlooked | 1101

Episode Date: November 26, 2020

This week, a short term rental company, AirBnB went public amid the pandemic! Furthermore, the recent AirBnB IPO has shown that a short term rental investment strategy is still a profitable enterprise! Therefore, in today’s episode Matt explains what AirBnB IPO means for your short term rental real estate investing strategy. Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit REA.

iAase.com. Here's Matt. Hey, there, Epic Investors. Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early, with an emphasis on going from paychecks to profit, with an emphasis on using more mind than money,

use more of your intellectual currency than that that sits inside of your wallet, that sits inside of your bank account. This is the Epic Real Estate Investing Show. And if this is your first time here, really glad that you found us. If you like what you hear, make sure you hit the subscribe button before you go.

And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. I thank you for that every single week because you're the absolute best for that. And I'm so grateful and probably, yeah, double grateful today. It's Thanksgiving, right? I'm grateful for you and you hanging out with me each and every week. And I wish you only the best for the rest of this year. you know, as bad as it has been for so many of us on so many different fronts, as bad as it is right now for so many people.

I am really optimistic that the worst is behind us. You know, as bad as it is right now for so many people. And we've still got some serious stuff to go through, right? But with the idea that the three vaccines are essentially ready for distribution, they're supposed to be available any week now, and a fourth one just announced this last week, and that one's a not-for-profit vaccine, which was nice to hear. But I think 2021 has to be far better than 2020, right?

That's the position I'm taking. I'm taking that position, I'm sticking with it. And as they say, easier said than done. But I'm going to flip that this week. And it's easier done than said if you just turn off the mainstream media news because we've been in quarantine. I've probably been watching the news, right along with everyone else, much more than I ever had before my life. And I'm really detecting on just how much mess and how much toxic information gets injected into our brains.

And, you know, I've been dialing it back gradually. But this last week, I did a major pullback. And I can't tell you how different I feel. My blood pressure is certainly thanking me for it. And speaking of the news, what's good, right? Let's look at the good news. This week, Dow Jones Industrial, top 30,000 this week. And that's kind of a big deal.

And I pay attention. I'm not really invested in the stock market. I got a few little small things, but nothing significant whatsoever. But I watched that because I think it's kind of an indicator as to what's going on behind the scenes, right? We hear what's reported to us. But as they always say, if you really want to get down to the, the nitty-gritty, follow the money. And if the Dow Jones is surging,

I kind of take that as a sign that, you know, maybe it's not as bad as the media wants you to believe. But how it all started, you know, the Dow was in the dumps during the onset of the pandemic, trading below 19,000 in March. And industries such as energy, travel, and banking, all of which were featured prominently in the Dow, were crushed,

disproportionately due to the lockdowns. But now, how it's going, those beaten down industries are enjoying a renaissance, so to speak, thanks to what Bloomberg is calling the back-to-normal rally. God, from their mouth to God's ears, I hope. Skyrocketing tech stocks like Zoom and Peloton are taking a breather, while names like Boeing and AMC are mounting a nice comeback. And, you know, what's driving the back-to-normal?

Rally, it's likely several things, right? One, the news that an effective vaccine or vaccines could be rolled out in weeks. Two, uncertainty around the election result fading away following President Trump's legal setbacks. So it seems like we'll be moving on, whether you like the result or not, moving on is good for society, I think, right now. And number three, expectations that President elect Joe Biden and his Treasury Secretary nominee Janet Yellen will push for more economic stimulus, which we all need, right?

I mean, if you have anything invested in cryptocurrency, good news there for you as well. You're probably a happy camper for sure. Bitcoin is floating with its all-time highs, but that other cryptocurrency you might have heard of or not, Ethereum has actually been outperforming the big, bad Bitcoin over the last 12 months, and Ripple crushed over the weekend as well. So much so that Ripple is now my biggest holding in cryptocurrency. And just as a disclaimer,

I am not an expert by any means in crypto. I absolutely know nothing about it. I read a little bit here or there, but I mean, I could say some stuff that would make me sound smart, but I really don't understand what's going on behind the scenes. And my investment strategy is solely that of

FOMO. Just fear of messing out. Because if this thing does take off, I put some discretionary money in there. Money that I don't mind if I lose or not. And boy, I think of like almost quadrupled my money since I made that decision. And this last week was kind of exciting. But other stuff in the news, Purdue Pharma pled guilty to three federal felonies related to its role in fueling the opioid epidemic. Elon Musk, congrats to him, is now richer than Bill Gates and everyone else on earth, except Jeff Bezos.

And then France is easing some lockdown restrictions while the UK will allow households to form a Christmas bubble. And restaurant workers, sadly, are getting laid off again. And the Mike Tyson verse Roy Jones Jr. fight is this Saturday, November 28th, at Staples Center in Los Angeles. It's an exhibition boxing match, if you don't know.

It's kind of a big deal, though. It's not just any exhibition. It's between former undisputed heavyweights world champions Mike Tyson and former four division world champion Roy Jones Jr. If you follow Mike Tyson on Instagram, this is kind of what makes us exciting. I'm not a huge boxing fan. I'm not a huge fighting fan. But if you follow Mike Tyson on Instagram, you know how amazing he is looking like he's a kid again. So it's got me a little bit excited over for the weekend.

I can't imagine these two all-time grades either. fighting at exhibition levels or exhibition speed. I don't think their egos are going to allow it. So I think it's going to be entertaining at the very least. So I'm looking forward to that. And 88% that's the percentage of small businesses that have used up all of their PPP funding, according to a September Goldman Sachs study. And if you don't remember, PPP stands for Paycheck Protection Program.

a loan scheme established by the CARES Act to help small businesses stay afloat during the pandemic. And so lots of small business owners are hoping more aid is on the way, especially as COVID-19 case numbers continue to climb. But we can help too during this season of thanks as an easy way, I guess, is to really just shop small businesses throughout the holidays. whether you're looking for gifts or a little something for yourself. Let's take this opportunity to make small businesses great again. I'm going to go out on a limb here and predict Amazon is going to be all right. They're going to pull through this. They should have landed on their feet next year.

So small businesses, they need us. So do your best to support small businesses, particularly this holiday season. They could really, really use it. and as they say, good things come from small businesses. That's what they say, right? I think so. Another thing in the news, real estate related this one. Imagine that.

This will be of special interest to you if you're using short-term rentals as an exit strategy. Or if you've thought about it. Or if you haven't thought about it, you might want to. I made this for the YouTube channel this week over at epic rei.tv. If you haven't subscribed, you can head over there. and click on that subscribe button. I post cool stuff like this each and every week, typically three times a week, epic r-e-i-dot TV.

And I thought for the holiday, I'm just going to keep it kind of light today and play the audio here for you. And we'll resume back to regular programming next week. I've got some great guests lined up for you. Again, happy Thanksgiving. Enjoy your day, your weekend, and enjoy this episode. This week, short-term home rental company,

Airbnb went public amid a pandemic at that what does the Airbnb's IPO mean for your short-term rental real estate investing strategy the answer to that and so much more coming right up but before we begin click the subscribe button and ring the notification bell because I post cool stuff like this each and every week and you don't want to miss it let's go hi my name is Mad Terrio CEO of epic real estate and I help frustrated professionals shift from paychecks to profits by using more mind than money. Private REIA's client, Anita Hearth, who uses short-term rentals as one of her primary exit strategies and leverages Airbnb to market her rentals, has done very well in her Denver area

market for many years. But when COVID-19 unleashed its havoc on the globe, her short-term rental biz came to a screeching halt. Anita's story didn't seem to be an isolated one, as Airbnb's overall business wasn't able to dodge the viral blow either, suffering big losses following the pandemic's first wave in March and April. In May, the company laid off almost a quarter of its workforce when it watched its revenue plunge 72% in the second quarter. But Airbnb mounted a furious comeback, as did Anita, mostly thanks to the mass migrations of people from major metropolitan to more rural areas of the U.S.

They need a place to live and many opted to rent, turning to short-term rentals while they decided their next move. The migration was so large, in fact, that Airbnb even turned a profit last quarter on $1.3 billion in revenue. Now, if we were to zoom out a bit, you'll recognize that just about everyone has an opinion on the future of travel and what that might mean for all short-term rental and hospitality companies like Airbnb. Most layman opinions seem to be on the gloomy side of the spectrum. And if you're tired of gloomy news, do me a favor and smash the like button. Because those that know, like Expedia CEO Peter Kern, has a much

more optimistic outlook. As Expedia's third quarter earnings report shows a company that's still pulling in $1.5 billion in quarterly revenue, far exceeding mid-pandemic expectations. Now, parts of the business, such as airfare sales, have totally tanked, but others, like its short-term rental home platform, VRBO, are picking up the slack. Jay Massey, CEO of Cashflow Diary. It's a training company that shows people how to invest in and operate short-term rental businesses. They are thriving through creative positioning and marketing. Massey says, where there's chaos, there's cash flow.

It's because of all the world's changes that short-term rental operators have increased their revenues this year, and this trend gets stronger with each passing day. Skift, a media company that provides news, research, and marketing services for the travel industry, is very bullish on the short-term rental industry. They are of the mind that the travel landscape has a... evolved substantially since the dawn of the internet in 1991 and that we are at a stage today where it is unlikely to imagine a lodging landscape without short-term rentals. Now, it's a well-known story by now that Airbnb's rise has been one of an upward meteoric trajectory. And even COVID-19,

with all its might, is proving to be no contest against the global demand for short-term rentals. Now, after a successful IPO, it appears that the ascension of Airbnb will resume. And all some, Summed up, you could conclude that the short-term rental exit strategy for your real estate is as sound as any. By the way, Anita, after two and a half months of zero business during quarantine shutdown, she had zero vacancy through this summer, and here we are in the fall where 2020 is shaping up to be a record year for her. If you found this episode valuable, who else do you know that might? There's a good chance you do know someone else who would, and when their name comes to mind, please share it with them

and ask them to click the subscribe button when they get here. I'll take great care of them. That's it for today. God loves you. So do I. Health, peace, blessings, and success to you. I'm Matt Terrio. Live in the dream.

Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home for us. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com. Thank you.