Dr. Chau is the Founder/CEO of multiple businesses: Airbnb/VRBO/CHBO, Educator, and The Water Doctor. He is an experienced serial entrepreneur with a demonstrated history of working in the real estate and healthcare industry. He is also a Water Doctor.
Learn from Dr. Chau as he shares about Airbnb Arbitrage in this episode.
Erik J. Olson (00:01):
What’s happening everybody. This is Erik J. Olson. And today I have an interview episode. We’re gonna be talking about real estate. So one of the big things about growing our agency is that we finally have an opportunity to take some of the proceeds and do something with it, invest somewhere else besides in our company. And for me and for Kevin, we are both investing in real estate. I’ve gotten with a group of people who are real estate investors, and I’ve met a lot of great folks and I’m bringing one of them on today. Dr. Chau, who goes by Dr. Chau B N B. What is happening?
Dr. Chau (00:36):
Hey man. How’s it going, man? I’m super excited to be here. Thank you so much for having me. Yes. real estate has changed my life, Airbnb corporate housing arbitrage, man. And I love to share my story and helping a lot of people.
Erik J. Olson (00:49):
All right. So we met about a month ago and I was really pretty intrigued by your story. So can, can you share a little bit about like what you’re doing these days when it comes to real estate?
Dr. Chau (01:02):
Yeah, absolutely. So basically my real real quick, my backstory one minute is I was born in Vietnam and then I came to America as an immigrant with nothing. Right. And now I’m able to build a multimillion dollars Airbnb, corporate housing arbitrage and you know, changing a lot of people’s lives sampling. A lot of people have a, have a mastermind you know, mentorship program as well to do that.
Erik J. Olson (01:29):
Cool. All right. So let’s, let’s kind of break that down a little bit. All right. For the audience. So let’s, let’s talk. So, so first of all, it, it’s Airbnb kind of short term rental. Is it just Airbnb or is it like the other platforms as well?
Dr. Chau (01:44):
Yeah, so it’s not just Airbnb and it’s actually midterm rental. So we do one month to six months and it’s corporate housing not just vacation rental. I don’t do any vacation rental anymore, cuz it’s a lot of time consuming. But we’re corporate housing. They have the funds, they have the resources and they rent for months instead of days. So it’s actually 10 times less the work and actually 10 times better tenants wise. So it’s just a win, win, win for everybody. Yes.
Erik J. Olson (02:13):
Cool. How, how so, how did, how did you stumble on, on the corporate housing? The, the, you know, minimum one month term?
Dr. Chau (02:20):
Yes. So I have been doing BNB corporate housing for seven years. So basically when I first came to America, we didn’t have anything. Right. So I thought the way to get to the American dream is to get a good grade, get good job and become a doctor. Right. <laugh> so I did all of that. Got my MBA as well. And when I got out, it was more like the American nightmare because I didn’t have the time which was the freedom, ran the freedom and the money to really take care of my family, the way that I wanted. And then my mom was diagnosed with cancer at the time. So I was like, oh crap, I gotta, I gotta make things happen fast. And I try everything from online, you know, business, offline business to all kinds of real estate to commercial multi-family everything.
However, it takes a lot of money to invest in real estate to get passive income. I didn’t have a lot of money and to take a lot of time, if you don’t have a lot of money, didn’t take a lot of time to find a deal, source the deal and all of that, which I didn’t have either. So I met somebody that gave me the epiphany that this is the way to do it right. Is to leverage other people properties in order for you to make money from it that you don’t even own. So what we do is we do like a master lease. We just rent out the property for a year. We furnish it and then we sub that it out to companies for one month to six months. In the beginning I did E Airbnb like short term, like vacation rental, which did get me six figure income retire, early thirties, you know, live, live my dream.
However, when I scale to like 20 Airbnbs, I found that it’s a lot of time consuming, a lot of taxing on you, a lot of work, right? So that’s when I decided to switch everything over to corporate housing rents out to companies only and for one month to six months and I already had some connections from there and I just expanded on that aspect and it’s like nine and days now I retire my mom and dad, you know, they thank God she survived cancer. She still live with me to this day, taking care of her right now bought her a dream home and retired my dad as well. And just take them to travel around the world whenever we wanna do it. So very grateful. Yes.
Erik J. Olson (04:35):
That’s that’s fantastic. Congratulations on, on all of that. So when, when you say arbitrage, right? Can, can you, I think you, you touched on it a little bit, but can you kind of explain how the arbitrage works?
Dr. Chau (04:49):
Yes, absolutely. So the arbitrage is when you leveraging other people properties, right? O P <laugh>, so to get money from it. So all we charge is the difference between what you rented for and what you sublet it out to companies for. So I usually rent it, let’s say for 2,500 you know, I sublet it out to companies for 5,000, right? So on average we make about $2,000 per property. So if you wanna make $10,000 a month, you only need five properties and you don’t have to buy it. You don’t have to fix it. You don’t have to rehab it. You don’t have to wait for rent, make it rent, ready, all of that. You just gotta go out there, rent a property really fast. So you can do that like two, three a month. It doesn’t cost a lot of money cuz all you need is first month rent, first month deposit and then some money for the furniture. And that’s it. So the cash on cash return is like 200%. Yeah. That’s huge. It’s very fast. Yeah.
Erik J. Olson (05:47):
That’s really interesting. I, I have heard of that concept before, but you’re the first one that’s really kind of like stepped me through it. So I mean, I would imagine there’s, there’s a, a lot of things that someone who wants to potentially get into doing this would need to know. And, and you mentioned that you have a mastermind, so I’m also guessing that you teach those kinds of things. Like I would imagine some common issues are convincing a homeowner or a landlord that, that you can do this. Cause I’m sure you want to let them know what your plan is, right? Yes. And then, and then too, like finding the corporations, but it sounds like these platforms like Airbnb have kind of taken care of that.
Dr. Chau (06:26):
Right? Right. Exactly. Yes. Yes. So there’s four steps to the process and I came up with a proprietary system to do it. It’s called the fast method. So the F is to find the location, the a is to acquire the lease. The S is to sublet. I mean set up to stand out. And then the T is to tap into the corporate housing. So finding the location, what are the location criteria? That is the best. So I will give you my secret sauce right now is the three edges hotels, hospitals and highways, as long as they are close to hotels, hospital and highways, 90% of the time is great for corporate housing. You wanna look at where two highway intersect. Okay. Mm-hmm <affirmative> so the second thing is a, how, how do you ask the sublease? How do you acquire the sublet?
Right? Which is one of the big challenge when you’re first starting out or somebody first starting out, they’re gonna ask you how many have you done? Right? <laugh> you know, you don’t wanna live say, oh, was my first one. Can I ever be it gimme a shot. You know, it’s hard to disclose that way. However, that’s why I build a mastermind community is you can leverage, remember guys, write this now, leverage its freedom, leverage it success. You gotta know how to leverage everything. Relationship, money, time, everything. So if you’re a part of our mastermind, you can leverage us and say we belong to a corporate housing network of over a hundred professionals. We’re doing this day in day out, combine 20 years experience. And we have over a hundred probably nationwide. So that way, you know, we can definitely take care of your property, whatever you need. And here’s our website, here’s our partnership website. So it’s a lot more, you know, you see how, how it’s different between like, Hey, can I Airbnb your property? Right. <laugh> and now we wanna see if you are probably qualified for us. If it is qualified, then we can do multiple properties with you. So
Erik J. Olson (08:19):
Dr. Chau (08:20):
Yeah. And we take number three things. We take care of the property very well, have it clean professionally clean every couple months, any maintenance under $200, we’re gonna pay for it. We’re not even gonna call you. Right. And then number three is we are dealing with companies, corporate clients. So we have the funds. We, they Def they definitely take care of the property super well cause they don’t wanna lose their job.
Erik J. Olson (08:42):
Yeah. And I would imagine for a, a company for corporation that has to send some, someone somewhere or, or someone who needs to travel on their own somewhere, what you’re providing is probably a, an incredible value because what are their options? They could either rent a place for, you know, six months if they’re lucky, but usually it’s a 12 month rental, which is very expensive and maybe they don’t need it for that long. Or they can go really short term hotel, incredibly expensive, right. Or Airbnb, a normal Airbnb for 30 days is very expensive. So you’re, you’re like that sweet spot right in between, you know, by offering the corporate rental. But then also like, what I love about your system is it doesn’t require people to punk down 20% or more of a purchase price and go through all of the cost of acquisition. Like just closing costs are very, very expensive. You forgo all of that. And then for the landlord, they get basically a great tenant and someone that’s gonna use someone that’s gonna take care of the property for them. They don’t have to deal with my toilet’s broken, right. The hot water heater, just not working, none of that stuff. So they get, and, and I would imagine sometimes you may even like, do you ever offer to pay ’em a little bit more than they want to kind of like swing the deal and convince them?
Dr. Chau (10:03):
Absolutely. That’s the last H out of the car, if they, if they are hesitating.
Erik J. Olson (10:09):
I gotcha. And by the way, the three HS, I wrote that down. That’s so good. Oh, thank you. Hotels, hospitals, and highways that that’s that’s look, I mean, like, I, I, we haven’t talked about this before, so I’m gonna BR I wanna translate hotels. Clearly hotels know where to locate themselves. So if you can find one of these Airbnb style short term, midterm rentals nearby a hotel, you’ll probably do well, cuz people are already looking in that area to stay at least short term hospitals. A lot of traveling nurses. Right. I would imagine that’s like a big draw. I would imagine doctors too. Right. And then highways, like when I travel, I’m usually like, I need to be close to a highway. I don’t know the area. I don’t wanna spend a lot of time in a suburb. I just want to get on the highway and go to where I need to go. Come back. Mm-Hmm <affirmative> so yes, sir. That that’s genius, man. I love that a lot.
Dr. Chau (10:59):
Yes. Yes. And I love where you brought up about the yes. If you buy a property, let check this out. If you buy a property this day, let’s say it costs you like a hundred thousand dollars usually right. To rehab, make a rent ready and everything. The down payment without a hundred K you can do like 10 sublet, actually 120 K 10 sublet average costs about 10 to 12. K. But I’m just gonna make sure we have enough. So 12 K per sublet. Right. So imagine, do you wanna have one home if you’re gonna buy it or you gonna have one home only make you 2000 a month or do you wanna have 10 homes that make you $20,000 a month? Which one would you like?
Erik J. Olson (11:34):
Yeah. Yeah. You see ID, I’d rather have more money and less problems.
Dr. Chau (11:40):
Yes, yes, yes, yes. So so that’s why I said always say that get financial freedom first. Right? Of course the end game is to own a lot of rules, state. However, if people don’t have financial freedom, they don’t have time and they, then I don’t have life. So let’s, let’s get you financial freedom for us. 10 20 K a month real fast with this within months, you can get there. I have a lot of people have done it and then they can have time to look for dues to do multi-family to do bigger dues, to invest in properties. All of that. Yes.
Erik J. Olson (12:08):
Yeah. And, and you know what you said before you know, you could very quickly get up to $10,000 a month of, of passive income as effective as what it is. It’s not, you know, a hundred percent passive, you got a little bit of work, but exactly, but it’s not a full time job either. You’re, you’re free $10,000 a month of free cash flow is gonna run most people’s households. And especially if you’re single, like you don’t even need that much, but like family of four with a car and a mortgage and all that stuff, 10 grand probably pretty close to the right number. Yeah. And so it, and so I, I think that’s a good target, but I also personal from personal experience, I know that is an incredibly difficult thing to achieve. Certainly if you don’t have any like, kind of real estate and, and real estate’s one of the only other investment types that I’m aware of that has free cash flow coming out of it.
You can invest your money like in the stock market, but you don’t typically get a lot of cash coming back. It just, it may grow over time, but with real estate, you’ve got the free cash flow. And if you’re doing it traditionally where you’re buying and getting a, a, a someone in to lease it, it takes a long, long time and a lot of units and a lot of capital to get to that. So what you’re offering is I, I, I, I would say Dr. C I’m, I’m pretty impressed with the program that you put together. I think it’s a really, really good solution and not just for the people in your mastermind, but also for the people who rent those corporate houses and also for the landlords. So congratulations on, on putting that whole thing together.
Dr. Chau (13:41):
Yeah. Thank you so much. Yeah. Definitely took years into making and very, very grateful. So we’re helping, you know, hundreds, hundreds of people in nationwide. So if you ever wanna, you know, learn how to do it, you can follow me @drchaubnb D R C H A U B N B on Instagram TikTok. And just send us a message and book a, a book, a call without top advisors, and we can customize the strategy for you and how you can get to your 10 20 K and get financial freedom and leave live your dreams.
Erik J. Olson (14:08):
Awesome. So you can find ’em online on social media. What about your website?
Dr. Chau (14:13):
Yeah. beyondbnbsecrets.com is the name of our mastermind. So beyondbnbsecrets.com, you have zone there and opt in and we will give we have free classes every week, right? And then we have a lot of amazing, like free content that, that I can give you. So that way we can get familiar with it and then apply for mentorship. You serious. You have to go through an interview. We don’t take on everybody cuz we wanna make sure it is the right fit. And we make sure that it’s you know, you’re serious if you’re coachable and if you are a giver and not just a Techer to contribute to the mastermind, then we are welcome open arms.
Erik J. Olson (14:50):
Awesome. Dr. Chau right. Go find Dr. Chau. It’s D R C H A U B N B on social media or his website beyondbnbsecrets.com. Dr. Chau. Thank you for your time. I appreciate you, man. And I’ll see you at the next club meeting.
Dr. Chau (15:07):
That’s right. Let’s go. Thanks guys. 10 X, everybody.