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This article was first published business insider.
This told essay is based on a conversation with Saeed Lateef, a 36-year-old Airbnb Superhost from Chicago. Edited for length and clarity.
I’m the CEO of SyedBnb. SyedBnb is a short-term rental company with over 300 units and 100 employees.
After dropping out of college for a year, I returned to complete my degree. work in finance, But I didn’t want the lifestyle of a corporate vice president. I wanted wealth, exotic cars, luxury vacations, time, and freedom. real estate.
I started my business in 2017 and in 2023 I had $11.5 million in revenue and $1.4 million in net income.
Real estate was the key to the life I wanted
After being let go from my first job as a financial analyst, I went to work for Allstate. I was promoted three times in five years. salary increases It didn’t meet my expectations.
I realized that the wealthy people I knew in my community who had nice homes and cars were involved in real estate, and I came to believe that it was one of the main drivers of wealth. Ta.
I started listening to the podcast “BiggerPockets” and read “Rich Dad, Poor Dad.” That motivated me to pursue this work. economic freedom. I expected it would take 15 years to replace my salary income from real estate, but I was determined.
In 2016, I used savings from my finance job and a 401(k) loan to purchase my first apartment complex in Chicago.put one of the units on Airbnb The goal was to earn twice the expected rent from long-term tenants in one month.
I hired a cleaner, virtual assistant We implemented pricing software from the beginning to handle administrative tasks (I use PriceLabs).
Within four months, I was earning three times the expected market rent for a long-term tenant. Realizing this was a great opportunity, he converted all the units in the building into Airbnbs. I became addicted and wanted more.
After 3-4 months of starting my side job, I handed in my resignation, even though my family and friends encouraged me to keep my salaried job. I am now, full time entrepreneur.
Since launching, I have grown the business to over $35 million in revenue.
One of Lateef’s units in Chicago.Courtesy of Syed Lateef
I Airbnb Superhost In 2018, my average review would be at least 4.8 out of 5.
In the second year, rental arbitrage After realizing that (renting a unit from a landlord and subleasing it on Airbnb) was an easier way to grow the business. After furnishing the unit, we didn’t have enough cash to buy more rentals. I currently own 13 apartments and 320 arbitrages.
In 2019, my revenue amounted to $2.8 million. 2020 was a down year due to the coronavirus disease (COVID-19). By 2022, I’ll have my first eight-figure year with earnings reaching her $10.5 million.
only work a few hours a week
With the help of employees and author implementation gino wickmanFollowing the basic principles of EOS (Entrepreneurial Operating System), my working week is approximately 2 hours.
EOS is a set of concepts and tools that help entrepreneurs put people in the right seats, track scorecards, document processes, identify problems, and drive business forward. Weekly leadership meetings using the EOS system help achieve a two-hour work week, but those two hours are intensive meetings.
I also deal with landlord relationships and business growth, which is a regular occurrence and the occasional proverbial fire.
The biggest mistake I made was growing up too fast.
The biggest mistake I made was being too optimistic about pre-pandemic winter growth. I started scaling and ran out of cash, but I didn’t expect COVID-19 to be so devastating to me. My income has dropped to zero. Airbnb refunded all future guests. I didn’t have money to pay rent to my landlord.
I negotiated with all the landlords to allow them to continue doing business. We were able to buy assets from bankrupt companies and expand significantly. For example, I bought furniture from a bankrupt company for $250 per apartment.
My advice on Airbnb is this
My best advice to other aspiring Airbnb Superhosts is to learn from other hosts’ experiences. Join the Airbnb Facebook forum to connect with others. Attend networking events. Hire a coach or purchase a course to help you start your business.
Then take action. If you can’t afford to buy a property, consider rental arbitrage. So many people get stuck in the learning and planning process. Inevitably, you will learn in actual business.
When I started, I asked my sister, who is interested in interior design, to help me furnish our first Airbnb. We modeled the hotel based on guest needs to see what items would create a comfortable stay. I learned everything myself through experience.