Real estate is known as one of the best options for anyone looking to build generational wealth and cash flow. Although many look to flipping properties or holding them for long-term appreciation gains, there is a lot to be said about the short-term rental industry. For many, the mind goes straight to AirBnb and other similar apps and platforms, but they tend to forget the original short term rental – hotels. TJ Tijani has turned his passion for boutique hotels into a thriving real estate business that is still growing everyday. Currently, he owns 32 units and manages ten more and is looking to close on more before the year 2022 is complete. His event Rental Summit will host industry giants such as Max Maxwell, Carlos Reyes, Justin Colby and Alexia Wright. Take a quick peek at his story.
TJ Tijani is a first generation immigrant from Nigeria. His mom moved him and his four siblings to Houston, Texas when he was eight years old. Working hard, she provided them with a living and the opportunity to attend college. “I was the first in my family to go to college. We couldn’t afford much and couldn’t accept too many loans, so I worked my way through.” His dedication would earn him a Bachelor’s degree in Mechanical Engineering. He wasted no time in putting his degree to use. In 2012, he started working as an engineer for an oil and gas company in Texas. Work went well, but he found himself jobless when the oil and gas market took a hit in 2017. Thankfully, he had already started investing in his future. Or more specifically, in real estate. “I bought my first property in 2014 after reading Rich Dad Poor Dad.” The rest is history. After dabbling in wholesaling for a while, he established his niche in the short term rental industry. His strategy focuses on launching boutique hotels and he has shared his techniques with hundreds of students around the world. Here are three reasons he believes more entrepreneurs should invest in short term rentals.
On average, short term rentals make at least three times the revenue that you would find with traditional long term properties. While real estate is known for creating wealth through appreciation and passive cash flow, the increased revenue by looking at short term rentals is an easy way to scale your cash flow quickly. The key for Tijani is to own your property as soon as possible. “You want to gain the tax advantages of owning your property. Rental arbitrage or management is a great way, but your goal needs to be ownership.” With pandemic restrictions closing down, short term rentals are only looking up for the future and Tijani believes they are one of the best real estate investments.
The part no one talks about in real estate – maintenance. The first lesson is to make sure you are putting a part of your profit aside for maintenance costs. The second lesson is to make sure that you are consistent in your maintenance schedule. This is another reason that Tijani prefers short term rentals. “I have long term properties that I have not been inside to maintain since the tenant moved in… with short term rentals, you can get in constantly to make sure that you
property is maintained.” Why does this matter? Because the better maintained a property is, the more it appreciates and the more its tenants appreciate it. Not to mention, a small stain or clogged drain is much easier to repair than flood damage or completely soiled floors.
The magic word that all entrepreneurs seek. Automation is the key to scaling any business successfully. Especially in real estate. For Tijani, the ability to automate nearly every step of the short term rental process is extremely attractive. “It has always been my goal to claim my time. With automation, I can do that.” As he is looking to expand his portfolio, it is certainly an ease to the mind knowing that the processes and teams he has in place will allow him to scale his company as he looks to enjoy the fruit of his labor.
If you are interested in more real estate from Ti Tijani or from acclaimed investors Max Maxwell, Alexia Wright, Carlos Reyes and more, you can visit his website for access to his first Rental Summit Conference on August 19, 2022. You can also follow Tijani on his instagram for more daily tips and inspiration.