#47 Ground Up Airbnb Property Development with Alex Jarbo
May 3, 2022
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Alex Jarbo, founder and CEO of Sargon Investments, discusses the benefits of building modular cabin homes to hedge against volatile lumber prices. He emphasizes the importance of not relying solely on Airbnb and the power of building an email list for real estate. The podcast also covers finding a reliable cleaning company for short-term rentals and strategies for maximizing capacity and driving bookings.
Building modular cabin homes helps hedge against volatile lumber prices and eliminates delays from unpredictable weather patterns since each module is manufactured in a climate controlled warehouse.
Never work with a single cleaning person. If they get sick or otherwise can’t work, your entire business will suffer.
By developing new properties you have complete control of how the property will look and feel and avoids the irrational competition common with typical single family home properties.
Deep dives
The benefits of short-term rentals in real estate investing
The podcast episode explores the advantages of investing in short-term rentals. The guest, Alex Jarbo, shares his experience as a founder and CEO of Sargon Investments, focusing on unique Airbnb properties that provide great guest experiences. He discusses how short-term rentals can be a scalable and profitable investment strategy, allowing for maximum income streams and financial independence.
Transitioning from self-financing to partnering with investors
Alex explains how he started his real estate journey with self-financing but eventually moved towards partnering with investors. He discusses the importance of bringing on capital to expand the business and overcome limitations in obtaining loans based only on personal finances. He shares insights on the process of raising money, working with friends and family initially, and eventually developing joint venture and syndication deals with investors.
The process of building and developing short-term rental properties
Alex shares his experience and insights into building and developing short-term rental properties. He discusses his journey from purchasing his first property, a custom-built A-frame cabin, to expanding the portfolio to multiple properties. He highlights the importance of finding the right location, working with architects and contractors, and managing the development process. Alex also mentions the need for well and septic systems, as well as the importance of building unique and attractive properties to attract guests.
Transitioning from listing platforms to direct bookings
The podcast explores the benefits of transitioning from relying solely on listing platforms like Airbnb and VRBO to direct bookings. Alex discusses the advantages of building a list of guest emails and remarketing to them for future bookings. He mentions using technologies like StayFi to capture guest email addresses and sending regular email newsletters to stay top of mind with guests. He also mentions the potential for saving on service fees and having more control over the booking process by encouraging guests to book directly through his website.
Important considerations for successful real estate investing in the short-term rental market
Alex shares key considerations for successful real estate investing in the short-term rental market. He emphasizes the importance of researching and understanding local regulations, zoning laws, and permits related to short-term rentals. He also highlights the significance of finding reliable and trustworthy cleaning companies and property managers to ensure smooth operations. Alex stresses the value of building a brand and reputation in the industry and the potential for future exits by selling properties with an established client list.
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Alex Jarbo is founder and CEO of Sargon Investments, a short-term rental developer and manager with a goal of developing 650 cabins in the next 3 years. Alex was born and raised in Detroit, served in the Marine Corps for 4 and a half years, and holds an MBA
- Building modular cabin homes helps hedge against volatile lumber prices and eliminates delays from unpredictable weather patterns since each module is manufactured in a climate controlled warehouse.
- Never work with a single cleaning person. If they get sick or otherwise can’t work, your entire business will suffer.
- Alex uses apps like TurnOverbnb.com to automate certain aspects of his Airbnb business.
- By developing new properties you have complete control of how the property will look and feel and avoids the irrational competition common with typical single family home properties.
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