All Forum Posts by: Ken Breeze

Hey @Kaloyan Karamazov , nice to meet you. 

We are a growing group of european individuals who are also preparing to get active from wholesale, flipping, to buy & hold multiplexes to refinancing and sale. We're seeking individuals just like yourself - all the way from 'boots on the ground' activities to turn key investment opportunities - who want to learn from the BP community and create real estate wealth together. Feel free to send me a PM and colleague request so we can synergise.

The thing with Europe vs. the US is that the game rules (taxes, laws & regulations, etc.) are so much more favourable over in the States than here. I should probably write a blog post or create a guide on this topic some day. I also invite anyone in the BP community to contribute their experience, skills and knowledge to a guide like this. I will collect the info and work out a nice volume.

Cheers, from Cuxhaven, Germany  - Google it ;-)

Nothing is more cosy and comforting than a real fireplace. Especially since they have become extremely rare. I'd keep the fireplaces but make sure your insurance covers guest activity. We have also installed three light weight fire extinguishers and fire blankets with in every room that could cause a fire. Security cards explaining the main issues and smoke detectors should be installed in EVERY room. Always ask your guest prior to arrival and afterwards what they cherished most about your home and amenities. Also ask what is missing and could have increase the value for future guests. This way you'll get a feel for how important 'playing with fire' might be to them ;-)

Shanna, welcome to the BP world community and greetings from Germany ;-) It's good to hear from you.

Sharing Economy 2.0

I’ve been exploring a few Airbnb (short term rental) options in Europe in the past few years. My mid and long-term goal though (among other things) is to grow hundreds of buy and hold multiplexes in my portfolio over the next 5-7 years. Who’s with me? ;-)

Quiiiiiick Tip ;-)

Airbnb is named most often and definitely the top dog in the STR field but I highly advise to list your same listings in TripAdvisor (HolidayLettings), Booking.com and Wimdu.de (The german/european version of Airbnb). There are many other big (HomeAway) and small (9Flats) portals out there, and some of the big old sharks are acquiring the small fish left and right to make up for their decades of failing to innovate the market, but they are not worth the time, effort or fees they charge. This conclusion is based my own experience and on interviewing hundreds and hundreds of guests and hosts that I have crossed paths with over the last five years.

Short Term Rentals…

have their advantages but also disadvantages as some of you have already stated in this and other posts. My strategy is to Rent2Rent short term, Buy2Rent short term and finally buy-and-hold to rent long-term. It's a steady growth in experience and capital gathering for each next level of your real estate career.

What Happened?

One of the very cool things about the evolution of the internet in just the past five - ten years is that it has provided us with affordable, cheap and sometimes free SaaS tools empowering anyone on the planet with some drive and an internet access with not needing to own real estate anymore to make money. Imagine for a moment…, this entry level strategy was not possible just a few years ago. A lack of expertise, reach, human and financial resources were prohibitive. Now I can rent a dwelling on an island and rent it out again with roughly 100-250% profit. Again, it’s not for the faint at heart (that’s why you get the big bucks) nor a stable smooth ride (which startup is?), but a rather volatile journey which ultimately serves the purpose of getting back into the classic game of RE investing. And keep in mind that the property and human management skills learned on the way are priceless.

Location, Location, Location

The key is to look for assets in the best location with a balance that cater to students, tourists, and workers alike. Attractions, events, beach (no farther than a half a mile away) and the like. Seasonality with a dwelling in a summer and beach environment or a locale where freezing Canadians travel over the winter to relax in a whirlpool, strawberry daiquiri in hand, will suffer hard in the 6 month off season. Depending on your goals, it’s almost not worth the effort.

Mind you that I’m not steering towards anyone who has owning a nice house free and clear, near the bach some far away day. I’m looking for immediate cashflow (Kiyosaki) and to build passive residual income with continuous growth potential. A house can’t do that. But leveraging by renting many apartments to gain cash and momentum to finance the next multiplex can. I recommend BP Podcast 52 with Ken McElroy just to name one with a huge vision.

The Winds of Change

The regulations around the world on short term rentals are in flux (so is everything else), but as Victor Hugo once said:

"An idea whose time has come cannot be stopped."

So it's a matter of seeking out the areas that adapt to the changes of our sharing economy future first, in order to benefit and reinvest those profits into longer-term holdings. Over the years many more communities and nations will follow suit, since the changes are unstoppable.

Future is Now

Europe is writing an outline to prohibit communities, EU nations and cities from forbidding short term rentals. It is said to be put into law by the end of this year. We'll see about how long it will really take since the old Kings won't give up their fortresses without a fight :-) but in the end the winds of change are shifting to push us forward into the direction the human race needs to go anyway - more temporary, versatile, sustainable, cheaper, mobile and modular living.

The Elephant in the Room

A very interesting and sad documentary can be seen on Netflix or iTunes called "The Hunting Ground". It deals primarily with the abuse of America's college and university girls. It's a mean money machine. The underlying corrupt money-making system on their backs is the stronghold of the problem. It involves billion dollar football money and community real estate corruption. The complexity of challenges and troubles are the reasons why schools, colleges and universities are free of charge in Europe. Education for everyone. It's very much worth a look to get a better understanding of all the above issues.

That Said…

We should keep helping each other out in this awesome BiggerPockets community - it's very unique and valuable - to keep each other updated on the ever-changing local regulations of short term rentals (and everything else real estate - there are more changes ahead of us.

Quiiiiiick Tip

Read everything by and about Peter Diamandis to get a heads up on how startups are already changing our lives faster than we can react to them. And these changes are hitting everyone involved in real estate as well - for better and worse. This is, of course, food for at least another post . He and Ray Kurzweil founded the Singularity University. It’s not important that you agree with him or not, because he will disrupt your comfort zone, it’s rather a modern day survival tactic to keep our eyes on the ball. I love change, but he marvels and scares even me. So put on your coat, wake up and smell some coffee ;-)

And Shanna, I hope all of this inspires someone, just as so many bloggers here inspire me. Of course all of the above is just my opinion and experience. I would love to continue a conversation about lease options and seller financing, since I'm in the process of gathering German and Chinese private investors to create and lead a real estate acquisitions company fund to invest into US multiplexes. I'm looking forward to connect to all of you here on BP. Send me a PM or a colleague request, I would be delighted to build a legacy with you.

Here's more: I use AirBnB for private rooms, entire homes, penthouses and villa. And every tribe is different. Travelers have different needs and are reachable on different channels. I don't use the paid portals and some others for may reasons, one of them being the hideous UI and UX stuck in the 90s. Getting listed, adding listings and communicating with them is ridiculous. As an Apple fanatic we have a saying: “Once a Mac you never look back.” The same is true for AirBnB vs the rest. Many of the others (9flats, flip key etc.) are not worth the extra effort when focusing on a chosen few, that bring home most of the cake (80/20). I prefer using the ones that participate in your success instead of paying upfront fees. I don’t negotiate with people who I can sense are bargain hunters. You get what you pay for (guest) and you get what you ask for (host). You attract the quality of people depending on what you ‘send out’. Dr. Wayne W. Dyer anyone? Regular and constant engagement with your listings, pricing and communication are one of the most important activities to stay high in the search results. Being on the lookout for events, that take place in your area, will allow you to increase pricing if necessary. We use the newly built in automatic smart pricing feature from AirBnB so we have less work. You might loose a few coins but I’m striving for ”The 4 Hour Work Week” (Tim Ferriss), aren’t you ;-) There are more and more free or subscription pricing tools coming. This industry is ever-changing and evolving. The spirit in the host and traveler community with AirBnB is bar none. It’s a place of safe souls. I haven’t experienced this mindset anywhere else. AirBnB will be partnering with Deliveroo soon to make all our lives even better and easier with making revenue. Do they get a cut? Of course. They deserve it. Depending on your country there are many services spawning do to AirBnB’s disrupting the paradigm. The powers are shifting, take advantage of the technologies. Guys, thanks for all your feedback and tips, there’s so much to learn. Let’s keep in touch :-) A few resources: Everbooked.com, GetProperly.com, Guestly.com, Handy.com, KeyCafe.com and who knew, never changing Craig’s lIst is still a player nobody can avoid. Cheers, and happy hosting, Ken ;-) P.S. I won't hold it against you if you connect here with me or Facebook or any other social media channel and check out my awesome dwellings in Europe. We’re adding more every month. Who is we? My 16 year old son, 18 year old daughter and wife. Finally something that works as a family business gain :-)

I've been using Airbnb and other platforms for years and nothing comes close to Airbnb's ease-of-use and streamlining all the processes humans need to get things done. No matter what platform though, people are lazy and spoiled these days and it will probably just get worse in the future. They do a search and click on every button possible to send out many inquiries and all the hosts start jumping up-and-down trying to catch a fish. I usually reply within the first 10 to 20 minutes with the amazing Airbnb app (Again no other app comes close) but you need to count on losing at least 50% to the birds. People are people :-) Platforms that bring in the most are by far AirBnB at the top, booking.com, home away and for Europe definitely Wimdu.de. Everything else is just more work, less revenue. Remember the 80/20 rule :-) Keep up the spirit though, when it works, it's a fun business. And take note, according to much of the information out there, the travel industry is among the top five booming industries in the next 2 to 3 decades.

Jorge J Gonzalez William Valdez Hi Jorge, hi William, hi BPers ;-) I'm renting out a villa in Tuscany and north Germany. Vacation rentals are as old as time but I started with Airbnb because they disrupted the entire industry first. I love pioneers. That said there is not one but there are a few strategies you can use to succeed, and like real estate, they are all different and you need to find the one that makes you enjoy the game ;-) When deciding on the where and what and how, never be attached emotionally to the assets. Do the numbers. Choose and conquer. Like Brandon says: Believe. Learn. Live. Meaning:, do your homework and pull the trigger at some point. There's much to be said and learned (LearnAirbnb.com ) about this topic and as mentioned above (everbooked, pricemethod, beyondpricing), there are many websites to learn from. (getproperly, guestly, rented.com) Like everything else in life, it takes time and effort to build something and on the way you make mistakes. But after a while it started to pay off. Sooner or later you will need to list your assets in all the major vacation rental portals such as homeaway, holidaylettings, booked.com, VRBO, flipkey, Wimdu.de, and a few more. The reason is that your customers like to hang around their different 'drinking holes'. In other words you have to pick them up where their eyeballs are. And just because I think AirBnB is the best, doesn't mean that the other 80% love it as much as I do. But since you want to get those customers as well, you're going to have to do the work. There's also an extensive knowledgeable community on Airbnb where you can find answers to already posed questions or ask your own. A treasure chest of wisdom. Jorge, start your Airbnb account today!!! Get your feet wet. The tool is awesome. I'm not sure I can share URLs or email addresses here, so PM me and I can email you an instantly redeemable coupon ($88) to get started on Airbnb as a host or traveler. I'd also like to share the links to my listings so you can get an idea on pricing, how it all looks like and much more. Cheers, Ken MyNewDwelling at G Mail

Hi Lee,

Thanks for checkin' in. Yes, I'm near Bremen in north Germany for the time being. We're preparing to bridge our come back to the good ol' US of A latest by 2017. Connect with me and check out my LinkedIn page for more details on what I've been up to in the past years ;-) What projects are you working on? Is there any way I can add value to your team or venture? I'm guessing wholesale activity could get my Breeze team (my wife and 2 kids ;-) ) warmed up for some cash savings and deal learning. What do you think?

Be awesome, Ken ;-)

Hi Elizabeth,

Thanks for your welcoming words. I hope to be of value to your team some day. I was thinking to get my feet wet in wholesaling since I can offer my time remotely. What do you think?

Cheers, Ken

Hi Bigger Pockets Community, 

I am fairly new to BP. I am American/German and I am seeking to join/partner with an experienced wholesaler/wholesaling team. My goal is to gain equity and cashflow in order to fund a US comeback with my wife and two kids. My background is Marketing, Sales and New Business Development in US (California and Arizona) and Germany. I am looking forward to connect with you here. 

Best, Ken