Airbnb as an Asset Class: Flinging open the door to short-term rental investing

Airbnb real estate investing

Original Source: Morning Brew
Photo: Ian McKinnon


The short-term rental market has been one of the most fascinating—and quickly growing—sectors in recent real estate history. Between 2018 and 2021, demand for Airbnb and Vrbo-style rentals in destination and resort locations rose by 25%. And it’s easy to see why.

The way we rest and travel has changed over the last few years. More people work remotely, so why not take those video calls from a beachside bungalow? Short-term rentals also offer space to spread out, which is ideal for families and travelers who want to avoid crowds.

As demand for these properties increases, so do prices. Airbnb rental costs jumped 35% in the past year alone. The traditional, long-term rental market may offer reliable profits, but short-term rentals can potentially yield 70%+ more revenue per property if they have the right qualities.

For investors looking to capitalize on this $1.2 trillion (yes, that’s trillion with a T) market, reAlpha offers a unique opportunity.

Where technology meets opportunity

Seasoned, well-equipped investors may be able to seize this real estate moment. But most individuals don’t have the research tools, money for big down payments, or other resources necessary to compete for these properties.

That’s where reAlpha comes in. Its business model, innovative technology, and diverse partnership network streamlines the investing process for maximum potential. reAlpha lets syndicate members—the people who will eventually use their platform to invest in specific properties—reap the potential benefits without the legwork.

Okay, but how the heck does it work?

Like this: reAlpha’s patent-pending algorithm scans thousands of real estate listings to identify the most Airbnb-able (is that a word?) opportunities. The software uses AI and machine learning to quickly distinguish the properties with the highest potential for revenue.

But that’s just for starters. After closing, reAlpha completes any necessary renovations, furnishes the properties, and lists them on Airbnb. Then, it handles all the day-to-day logistics that come with owning and operating an Airbnb vacation rental.

reAlpha uses a fractional ownership model. That means that the company maintains 51% ownership; the other 49% is broken up into smaller pieces and made available to everyone on reAlpha’s broker-dealer managed app. And right now, reAlpha is taking its mission of democratization a step further and allowing anyone to become a shareholder in the entire property company, rather than just at the individual property level on the app.

The result? Shareholders and members experience potential alpha-level yields, with no midnight phone calls from renters who can’t find the wifi password. Members benefit from passive income from the rental revenue and any appreciation of their property and early shareholders can potentially expect VC-like returns over a longer investment horizon.

Democratizing the real estate landscape

reAlpha founder Giri Devanur brings a history of scaled success to the table. Before setting his sights on the short-term rental real estate boom, he took his last company from $0 to $50 million in revenue and to NASDAQ—in just four years. At reAlpha, he’s once again putting together a team that is built to scale and succeed.

reAlpha’s mission is to make short-term rental real estate investing more accessible than ever before, and the company is dedicated to simplifying and demystifying the process at every stage.

The benefits of becoming a shareholder

If you’ve never seen anything quite like the reAlpha model, you’re not alone.

When you invest at least $1,000 in reAlpha through its Regulation A+ offering, you’re officially a reAlpha shareholder. As a shareholder in the company, you are essentially part of reAlpha’s 51% ownership, which means you have the potential to benefit from the combined performance of all properties through the company’s performance, not just one property. And once reAlpha’s app goes live, you’ll have priority access to additional fractional ownership of the reAlpha properties you choose.

Perks on perks on perks

But we’re not done yet.

With all this talk about Airbnbs, why not let shareholders experience the very thing they’re investing in? That’s right—shareholder-level investors will be able to stay for free at any reAlpha-owned Airbnb property. The more you invest, the more nights you earn.

reAlpha also believes that wealth shouldn’t be a barrier for investors who want to participate in the short-term rental revolution. That’s why it’s creating the reImagine Fund, in which reAlpha Tech Corp. will match 2% of the value of this shareholder round to support community investment, create up to $30M in real estate for underrepresented populations, and enable reAlpha’s workforce opportunity program.

How’s that for democratizing the real estate investment landscape?

The vacation-rental economy is up for grabs

The Airbnb boom ain’t over, folks. 10 million short-term rentals are currently operating around the world, from Toronto, Canada, to Tangier, Morocco, to even your hometown. And factors such as the rise of remote work are expected to fuel further demand.

reAlpha is ready to meet the moment—thanks to its proprietary software, top-notch leadership, and passion to democratize real estate for all.

Take ownership. reAlpha is seeking to raise $75 million, which will allow them to potentially grow the property portfolio to $1.5 Billion in Assets Under Management. With reAlpha, you can invest in the booming short-term rental market—and leave the legwork at the door. Learn more about investment opportunities with reAlpha today.

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