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What’s Behind Airbnb’s $31B Valuation?

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Pitched to be worth a staggering $31B, Airbnb is now valued higher than Expedia and Hilton.  Last year, Airbnb reported sales of $2.6B with a net profit of $100M or 4%. This indicates that Airbnb is valued 12x sales. Is the rental startup’s valuation inflated or justified?

Airbnb is no longer a one trick pony. It started off as a platform connecting homeowners to travelers. The company has now partnered with Resy in the restaurant reservation space. Airbnb is also offering guided tours and experiences.

Total addressable market is $150B

The total addressable market for hotel lodging stands at a humongous $150B. Over 50% of hotel bookings are online and Airbnb accounts for 35% of total online bookings, up from 10% in 2014, according to this Pitchbook report.

Airbnb listings are now available in 191 countries and in over 81k cities. Its growth is dependent on the number of hosts and guests it can attract on the platform.

Airbnb’s CEO Brian Chesky wants the company to become the Amazon for travelers. He expects 1B people to use the platform by 2028, a monumental jump from the 400M customers in the first 10 years since launch.

Airbnb’s listings have grown rapidly from 500k in 2013 to over 5M in 2018. The company has successfully scaled up and is also profitable. Now the challenges are maintaining a robust growth rate with a focus on enhancing customer experience.

Over $1B in quarterly revenue

Last week, Airbnb reported that its quarterly revenue for Q3 2018 was substantially over $1B. This marked Airbnb’s strongest ever quarter. The holiday quarter this year is likely to shatter revenue records for Airbnb.

Q3 was the first quarter where Airbnb reported sales over $1B. This revenue growth was driven by key overseas markets, coupled with growing demand in smaller towns and suburban cities.

The number of booking’s in Beijing rose 91%, followed by Mexico at 79% and Birmingham at 70%.

Risks impacting Airbnb

Though Airbnb has been a goldmine for investors and founders, it is also fraught with business risks. Local authorities have now started to crack down on listings. There have been charges that owners are using Airbnb’s platform to create unregulated hotels.

The company has also been accused of creating housing shortages. According to data analysis firm AirDNA, cities such as Berlin, San Francisco and Santa Monica all experienced a drop in listings after strict regulations were passed.

Further, online portals such as Booking.com have started advertising home rentals and apartments on their website and are now a direct competition to Airbnb.

Operating profits might reach $3.5B by 2020

This Fortune report had predicted Airbnb’s operating profits to reach $3.5B by 2020. In case the company manages to achieve this target, it would put Airbnb in the top 15% of companies in the Fortune 500.

Airbnb is just not banking on growth. It knows profits are equally important. Investors remain buoyant as Airbnb is one of the few unicorns to achieve sustainable profitable revenue growth.

Airbnb is eyeing an IPO (initial public offer) in the next twelve months. It might very well be the most anticipated offering of 2019.

Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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Business

How I run a $300M+ business from the beach…(and how you can TOO!)

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Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

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Business

NYCE CEO: Apps Like Robinhood Have A Responsibility To Their Young Investors

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Investor and popular Instagram influencer Philip Michael says new fintechs need to take greater responsibility for their younger traders. 

“Promoting financial literacy is a must, but encouraging risky gambling is reckless,” Philip Michael, NYCE CEO, says. 

In 2020, a 20-year-old Robinhood trader killed himself after engaging in risky options trading and seeing his balance $730,000 in the red, leading to a wrongful death lawsuit against the investment app.

“The main apps onboard as many new users as humanly possible, but there’s really no educational process,” Michael says, “and these first-time investors are left to figure things out on their own.”

NYCE—a fintech focused on creating wealth for minorities—wants to create 100,000 millionaires through real estate investments and wealth education.

Through its app, investors can own shares in apartment complexes for as little as $100.

Since launching, NYCE has set records for most new first-time BIPOC real estate owners, buying over 1500 apartments in the pandemic and splitting ownership with its investor crowd.

Once investors are in, NYCE automatically enrolls investors in an online wealth academy (TRIBE) that teaches basic wealth principles, responsible investing and how to spot irregular fads like altcoins and meme stocks.

“Becoming a millionaire is a function of time and habit, not luck and one-time scores,” Michael says. “The micro-investments are really just the gateway drug to that wealth mindset.”

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