Did you know that the short-term rental market has now soared past a $1.2 trillion valuation? This stat comes directly from Airbnb’s recent IPO filing, which we should remind you took place against all odds…in the middle of a pandemic. What is even more staggering is that there is more potential for the valuation of this market to soar even more when you look at the combination of existing demand, the post-pandemic travel boom, and the shift towards remote working.
Airbnb CEO Brian Chesky recently went on record stating that they are short millions of hosts. If you remember your first year economics class, this means that demand is outpacing supply. So, one might conclude that now may be a great time to start buying some short-term rentals of your own. However, real estate startups are on a historic climb and a look at national and even international Airbnb listings is enough to give anyone sticker shock.
There was a 25 percent surge in demand for short-term rentals in destination and resort locations between 2019 and 2021. This year, the average cost on an Airbnb rental was about $160 a day during the first quarter, a rise of about 35 percent over the same period in 2020. By the third quarter, hosts generated a staggering $12.8 billion through the platform.
It’s all just the latest proof that the age-old path of property ownership is key to investing riches. Of course, that morsel of knowledge is nothing new. Many billionaires hold anywhere from 20 percent to 40 percent of their net worth in real estate. However, real estate investing (especially with short-term rentals) can be expensive and time-consuming, effectively screening out the everyday investor from this lucrative sector. Simply put, it’s much more tricky than just investing in $ABNB stock on Robinhood.
However, Real estate startup reAlpha is changing that. They use artificial intelligence and the power of their world-class team to revolutionize investment in this growing market for everyone, enabling them to purchase partial property ownership and make passive profits without any of the headaches of most real estate deals.
Right now, investors aren’t limited only buying into short term rental properties with reAlpha. They can literally buy into reAlpha itself during its current Reg A+ stock offer, becoming a shareholder in the company’s entire portfolio and industry-disrupting business model.
The reAlpha approach to finding and buying high earning potential rental properties is as simple as it is groundbreaking. Using their proprietary algorithm fueled by machine learning, reAlpha scores each property on a variety of factors, predicting the short-term rental viability and long term value of each property.
Under the guidance of a broker-dealer, reAlpha investors search those top-rated prospective properties, then buy into the ones they like, just like they’d buy a stock on Robinhood. The reAlpha process pairs those like-minded investors together to buy the property, often with just 10 percent as a down payment as opposed to the usual 25 percent required.
Unlike when you buy a property yourself, reAlpha is a 51 percent stakeholder as well and handles all the particulars, including renovations, rentals, and all the ongoing maintenance. While reAlpha does all the heavy lifting, members can sit back and benefit from the fractional ownership model, earning their share of rental profits, all while the property appreciates in value. And, syndicate members can even stay at the properties they’ve invested in during select black-out dates—making their investment all the more real.
Of course, property values aren’t the only things growing. During their current Reg A+ public offering, reAlpha is offering company stock to those who see the potential in disrupting the $1.2 Trillion short-term rental market.
To purchase shares in reAlpha, interested investors can visit their page, access offering information, and find out more about buying into the company. reAlpha is poised to turn the short-term rental market on its ear, so savvy investors can help build the company and invest in their future now.
Prices are subject to change.
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AT: HTTPS://SEC.REPORT/DOCUMENT/0001213900-21-047649/ YOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
Originally published in Entrepreneur
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