#41 How to Build a Airbnb Arbitrage Empire with Lazaro Vento
Nov 25, 2021
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Lazaro Vento, Managing Director of Happy Travels Miami, shares how he built a million-dollar Airbnb empire without owning any property. Highlights include optimizing Airbnb portfolios, leasing cars for rental purposes, and the advantages of real estate investing.
Starting an Airbnb arbitrage business locally allows for better understanding and personal management before expanding to other locations.
In the Turo car rental business, smart car investments and understanding market trends play a crucial role in making profits.
Scaling an Airbnb business requires efficient management of housekeeping, finding reliable employees, and establishing partnerships with real estate agents.
Deep dives
Starting Locally for Airbnb Arbitrage
When starting an Airbnb arbitrage business, it is recommended to begin locally. This allows for a better understanding of the business and the ability to personally manage operations. Once the local operation is running smoothly, expanding to other cities or even countries can be considered.
Making Smart Car Investments for Turo
In Turo car rental business, it is important to make smart car investments. Buying or leasing fairly new cars allows for a better chance at making a profit. Researching and finding good deals is crucial, as well as understanding the market and trends. Additionally, keeping an eye on the car values and the potential for future price increases can lead to unexpected windfalls.
Finding Deals and Flipping Cars
Having experience in the car business can provide an advantage when flipping cars for profit. Knowing where to find good deals, such as auctions or dealerships, can make a significant difference. Buying cars at lower prices and selling them at higher prices can lead to substantial profits, especially when combined with the rental revenue generated from platforms like Turo.
The Airbnb market post-COVID
According to the podcast, the Airbnb market is rebounding after the COVID-19 pandemic. Many hosts went out of business and Airbnb is looking for more hosts to accommodate the increasing demand. International travel is picking up, leading to a surge in reservations. The platform Booking.com, which had slowed down during the pandemic, is now experiencing a resurgence. The podcast also mentions the importance of transparency with landlords, as they prefer not to be involved in the Airbnb business.
Scaling the Airbnb business
The podcast delves into the host's experience of scaling their Airbnb business from a few properties to over 115 units. Initially, they started with a few properties and gradually expanded by acquiring multiple units within one building. They also partnered with a real estate agent to act as a buffer between them and the property owners. The podcast highlights the challenges of scaling, such as the need for a housekeeping company to manage cleaning and the importance of finding reliable employees. The host also mentions their mentorship program, where they provide fully furnished Airbnb units to individuals interested in starting their own Airbnb businesses.
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Lazaro Vento is the Managing Director of Happy Travels Miami, one of the most profitable Airbnb empires in business with 115 total Airbnb units and a fleet of 22 cars rented on Turo. In this episode we discuss how Lazaro turned a $1,500 investment into a business that is currently netting $1 million per month on AirBnb without owning any property.
Episode Highlights:
- One of the biggest bottlenecks to growing any Airbnb business is the housekeeping required to reset each unit between each tenant.
- Your Airbnb portfolio can be better optimized by keeping all of your units geographically close together so that your housekeepers can reset the units faster.
- For Turo you don’t necessarily need to buy the car with an auto loan. One option to minimize upfront capital requirements is entering into an auto lease and then lease it out on Turo. Just be sure to be aware of your lease terms.
- Given the current microprocessor shortage, less cars are being built, which has recently caused cars to actually appreciate in value when they usually rapidly depreciate.
