BNB Formula is a real estate investment training course and mentorship by Brian Page. The program will teach you how to make money using rental arbitrage. This program teaches you on how to make money online by listing other people's properties on Airbnb.
In this BNB formula review, we will answer several important questions. Who is Brian Page and what do people say about him? How effective is his training course? Is rental arbitrage profitable in 2022? Read along and find out.
We can compare rental arbitrage with local lead generation. Local lead generation deals with digital real estate. You earn passive income by renting out your site to local businesses. If you're looking for a way to make a monthly income through rent without the hassles of traditional real estate, check out Local Lead Generation.
Who Is Brian Page?
Brian Page is a real estate investor from Charleston, South Carolina, who started flipping houses in 2001, and has built residential houses and condominiums. After losing everything in the 2008 financial crisis, he returned to the real estate industry after learning about Airbnb. In 2016, Brian founded Thought Axis, Inc., in which he launched the BNB Formula course and other products. Today, the company has a revenue of over $5M and the course has over 25K students in 47 countries.
As an active philanthropist, Brian co-founded The Medici Society in 2020. The Medici Society is a charitable social club for extremely wealthy people. Only private members may take part and membership is selective and only available by invitation. The goal of the club is to forge high-level connections in order to provide funding for those who are tackling the world's most critical problems.
Brian founded The Page Fund in 2021. This private real estate fund offers accredited investors wealth protection and growth through multi-family buildings.
Brian has a short web series called House Hackers. The show is a competition between a handful of his students to see who could build their business first. The series shows some methods that Brian uses in the training course.
While Brian is a well-known figure in the real estate industry, having been endorsed by some of the biggest names, there is some controversy surrounding his business.
Brain makes 6-figures from Airbnb arbitrage and yet makes 7-figures selling his Airbnb course. While many have seen this as a negative, keep in mind that rental arbitrage is not the only type of business that Brian invests in. The reason some dismiss his legitimacy is that people often want to sign up for mentors who have splendid success themselves, so they ask why Brian would sell a course on rental arbitrage when he said only makes 6-figures.
There could be several reasons for this, so take it with a grain of salt.
Brian used this rental arbitrage business method to reach $300K in the first year. He has then put most of his time and money into other types of business and purchasing property. He is also heavily invested in his course that blew up in popularity. It could be because his course is more lucrative than his arbitrage. The large amount of revenue he earns from his course may also be a sign of its effectiveness and the high success rates of its students.
There is also a consumer fraud controversy surrounding the BNB Formula course. There have been a lot of posts all over the web that promote the course or offer you a discount if you apply through a link. These links bring you to a non-official site where you will complete the transaction. These are essentially scams that have cost many potential students their money and damaged the course’s reputation.
It took me one search on Google to find a couple of these scams:
This first scam shows you discount codes and coupons for the course. The links bring you to a site that has logos of BNB Formula. Safe to say, you'll be compromising your account once you enter your information here.
Below is another example which offers a discount. If you click on the link, it will direct you to a page that has copied content from the official site with a slightly different URL that won't even raise suspicion.
Pros and Cons of BNB Formula
Access to a global online community of other BNB business owners to learn more and be informed of the most recent trends.
Access to private Facebook page. Access to a global network of realtors, lawyers, other Airbnb business owners, and more.
Consistent monthly coaching.
Comes with all the tools and systems that you'll need.
Course is pricey.
Training materials are common and can be found in other courses or found online for free.
BNB Formula hasn't prevented scammers from using its name for consumer fraud.
The course lacks diversity, as it only focuses on one specific business model.
Starts at $1,997 for BNB Formula Course. Various upsells are available.
30 Day money-back guarantee for BNB Formula Course. BNB Coaching Program (including marketing kit) has a no refund Purchase Agreement.
BNB Formula is under Thought Axis, Inc., founded in 2016.
The overall rating of the course is positive. Scammers using the BNB Formula name have harmed the company's reputation.
Who Is the BNB Formula Program For?
BNB Formula training focuses on rental arbitrage using short term stay sites, specifically Airbnb. The intended audiences for the course are:
- Beginners to the real estate industry who do not have the capital to purchase property.
- Experienced real estate investors who would want to try or switch to rental arbitrage.
- Current rental arbitrage investors who are looking for help to scale their business.
If you find this course doesn't sound for you, check Anbe Group Rental Arbitrage.
What Do You Get With BNB Formula?
The BNB Formula Master Class comprises 8 weekly video training modules. The package includes 9 BNB toolkits, such as a deal analyzer, forms, templates, and contracts. These come with monthly coaching calls, access to the private Facebook group, and 11 other bonuses.
Module 2 explains in 5 videos how students should work with homeowners, apartment managers, and landlords to find homes to turn into short term rental units. It describes collaboration with cleaners and lock installers as well.
Six videos make up Module 3 and discuss how to find the ideal Airbnb listing, the 3 kinds of profitable properties, and the kinds of properties to avoid. This is the first step you take into creating profitable listings.
With 7 videos, Module 4 teaches how to stage the property after it has been secured. It discusses how to furnish it for very little money how to prepare the property for guests.
There are 7 videos in Module 5 that explain how to properly list your vacation rental property on Airbnb and how to use calendar hacks to achieve high or maximum occupancy. The module also teaches you how to write titles and descriptions that will entice people to click on your bnb listing.
Module 6 has 7 videos, which are about checking specifics before welcoming visitors. It provides additional guidance on pricing strategies and calendar hacks to get 90-95 percent of the days booked. They will also teach you ways to receive 5-star reviews from clients.
7 videos make up Module 7, which teaches students how to outsource almost all of their guest communications. Automating 95% of the daily duties allows you to list more properties. This is the last step in running an Airbnb rental arbitrage business. The next step would be to scale.
Module 8 covers scaling in 7 videos. It teaches problem-solving techniques, how to address issues, and how to expand their business to list multiple properties.
How to Make Money With BNB Formula?
This master class teaches you all the steps you need to know, and more, on how to make a successful Airbnb arbitrage business that is possible for you to do in many places in the world. The main idea is to earn a profit by offsetting the landlord's rent with your Airbnb listing.
Here's an example based on average prices throughout the United States:
In 2022, the average rent in the US for a one-bedroom apartment is $1,659 a month. Let's say you rent a property for $1,650 a month. If your landlord has a $1,200 mortgage on the property, he makes a $450 profit by collecting your rent. This is an example of a traditional rental investment.
Now you need to calculate how much you spend daily on your monthly rent. As we can break a year down into 30 day chunks, this comes to $55 a day for rent. The average hotel price in the U.S. is $150. If you charge $150 a night, you only need to book 11 days out of the week to cover your rent.
If you booked 20 days in a month, you would have earned $3,000. Take away your $1,650 rent plus $200 for utilities, and you keep a profit of $1,150. If you consistently booked 20 days a month for an entire year, you would've earned $13,800 in profits.
How Successful Are BNB Formula Students?
Students of BNB Formula have generally received the training positively. There are over 564 promoted video and photo success stories on the official site.
Here are some reviews of students on real estate investing forums.
The following ones are from a post on a real estate forum by a BNB Formula student. The updates follow his 10-month journey since purchasing the course.
The only criticism you'll find from students is that the training materials are rudimentary and can be found online for free. The monthly coaching calls, networking, and support groups offset this downside.
Overall, it appears this course has much to offer in helping you become successful in running your Airbnb arbitrage business.
BNB Formula Alternatives
The Airbnb Freedom Fast Track by Jonathan Farber teaches you the Airbnb rental arbitrage business model as well as how to make money through co-hosting, partnerships, extended stays, and creative financing. In this program, Jonathan shows you how to automate your business and pulls the curtain back on the best cities for Airbnb arbitrage. He even shares what credit cards to use in your business.
Price: The price of the Airbnb Freedom Fast Track is revealed to you after you apply.
More Info: Airbnb Freedom Fast Track Review
Short Term Rental Secrets by Michael Sjogren is another course that teaches real estate investors how to make money on Airbnb. This is a 12-month program that focuses on teaching you how to automate every aspect of an Airbnb business, such as bookings, access/security, guest communications, and turnover management. Michael hosts weekly coaching calls and you get a free 45-minute strategy session with Michael when you sign on.
Price: The cost of Short Term Rental Secrets is given to you on your initial call.
More Info: Short Term Rental Secrets Review
Aribnb Empire Academy by Derek Cheung is an in-depth Airbnb arbitrage course. The course comes with a multitude of bonuses and resources. Coaching and mentorship are also available with multiple packages.
Price: $5,000 - $25,000 depending on chosen package.
More Info: Airbnb Empire Academy Review
Stride Academy by Rafa Loza is a short-term rental arbitrage course. There is monthly membership available or those who want mentorship.
Price: $4,995 1st payment and $100 every month succeeding.
More Info: Stride Academy Review
Airbnb Rental Property Potential in 2023
The pandemic negatively affected a lot of BNB business owners. As fewer people traveled and with all the added travel restrictions, the hotel and sharing economy declined. As travel restrictions ease up worldwide, Airbnb business shows promising opportunities. Airbnbs are more suited to accommodating groups of friends and families, which makes up 41% of traveling Americans.
In 2021, Airbnb was valued at $113 billion, up from $75 billion from the previous year. Economists expect the global sharing economy to become a $355 billion industry by 2025. This would mean that there is a good business opportunity for you as an Airbnb host in 2023, IF you are the property owner. What about Airbnb arbitrage? The answer is, it will depend on your commitment.
Pros and Cons of Rental Arbitrage?
Rental arbitrage is when you lease a property and list it on short term rental sites like Airbnb and VRBO. You basically act as the property manager as you maintain and rent it out..
Here are the advantages and risks of listing an Airbnb property that you do not own:
Limited start-up costs. You only have to cover the down payment and the cost of refurbishing.
Can help you raise capital for future investments.
Outsourcing daily duties with a profitable listing can bring you passive income.
You can do this business anywhere in the world as you don't have to be there in person.
Risks of having negative cash flow due to short term rentals being seasonal. If you cannot hit the desired occupancy rate, you will be at a loss.
Unforseen damages, utilities and extra housing costs will cost you more money.
Some markets do not allow short term renting, and even more are putting restrictions on short term rentals daily.
When your contract with your landlord expires and you cannot renew, you basically lose your business.
4 Landlord Concerns in Rental Arbitrage
Why would landlords agree to rental arbitrage when they could earn more if they listed the vacation rental property themselves? There are 4 major concerns that landlords have with the business model, and if you can provide them with a solution to this, then you might convince them to seal the deal.
If the landlord believes the area is not a prime location for short term rentals, they may be concerned that you will not make money to pay your rent. If you have done your research and found the area profitable, you need to give the landlord a guarantee that you will pay rent on time.
Some communities look down on short term rentals because of security and environment concerns. Ensure your landlord that you will enforce strict rules to maintain discipline among your guests.
Since you will cover the cost of furnishing the property, the landlord may be concerned that the quality may be substandard due to low profit margin. You need to convince him you are a motivated, high-quality investor.
Many guests would mean increased wear and tear. You need to give assurance that you will keep the property clean and well-kept. Inform him of Airbnb's $1M insurance and that you can get additional short term rental insurance for as little as $50-$100 a month, which policy covers liability and damages. Put down the owner as the beneficiary.
Is Airbnb Arbitrage Worth It in 2023?
All that said, being an Airbnb business owner can be very lucrative. But as rental arbitrage goes, it's more of a job than a passive income business. You are still the tenant and are bound by your contract with the landlord. When your contract ends, you will need to repeat the entire process from the start.
Real estate investing is a high-reward and high-risk business. With the proper methods and outsourcing, it can turn into a substantial passive income business. Traditional real estate investment methods take a lot of time and capital to build and expand. It is a full-time job that needs your full commitment.
There are other ways to make money on Airbnb without owning property.
Passive Income Models in 2023
There are several business models that can create passive income. Each has its own advantages and disadvantages. Ecommerce businesses such as Amazon FBA, can earn you income passively with proper automation. Affiliate marketing is another model that you can use in conjunction with other marketing businesses.
Other forms of real estate investment dealing with another property type, such as multifamily housing and corporate housing arbitrage, have the potential to create passive income with the right automation. These models have high risks as well and this is where local lead generation stands out.
Why Local Lead Generation Stands Out?
Local lead generation business is like investing in a sort of of digital real estate. It costs very little to start-up and barely needs any maintenance. It doesn't come with the hassles of the real estate industry. Like traditional real estate rentals, local lead generation can give you consistent cash flow through monthly rent.
Once you rank your sites and get your clients, it can run smoothly for years without you doing anything. Local Lead Generation is a true passive income model that will allow you to put your time into the things you want to do.