You know Warren Buffett, right? Well, maybe not personally, but you’ve probably heard about him. The investment genius? The multi-billionaire? The third richest man in the world? That’s the one.

Just before his billion-dollar company, Berkeshire Hathaway, celebrated its 50^th anniversary in May 2015, Warren laid a bombshell. Expecting a record-breaking 39,000 attendees, he was worried that there might not be enough hotel rooms available for everyone.

That’s because Berkshire Hathaway is based in Omaha. That’s not a street in New York City, by the way. It’s a city in Nebraska. As in Marlboro Country?

So you know what Warren did? He sent out his annual letter to shareholders, but that’s not the unusual bit – he always does that. No, the unusual bit was that he told them to book accommodations with Airbnb. 

“Airbnb’s services may be especially helpful to shareholders who expect to spend only a single night in Omaha… Those people on a tight budget should check the Airbnb website.”

It worked so well that even his childhood home is on Airbnb! Which is also in Omaha, by the way. Warren doesn’t live there anymore, but travelers don’t mind. Neither do the new owners who rent the place out. 

Airbnb Isn’t Just For Budget Travelers

You know who else uses Airbnb? Gwyneth Paltrow. This January, she, her kids, and her boyfriend flew to Punta Mita in Mexico to rent out a 6-bedroom house with two pools, a home-theater, and a fantastic view of the ocean. And all she gave her Instagram followers was a shot of her legs and feet as she lounged on the beach.

Bummer.

But not for those in Mexico. According to AIRDNA, a company devoted to maximizing rental properties, Airbnb rentals in Mexico City alone made decent money. Surprisingly, apartment rentals made more than houses.

The average rent for one night at a 3-bedroom house went for $95, while the average rent for a 3-bedroom apartment made their owners around $110. Those lucky enough to have a 4-bedroom house could expect about $180 a night, while an apartment with the same number of rooms charged almost $200.

Since Gwyneth stayed at a much higher-end joint, however, she paid $8,045 a night for her slice of paradise in Mexico. Given the US dollar versus Mexican peso exchange rate, the lower cost of living across the border, and their dirt-cheap labor, you do realize that the owners made a killing, right?

Which is probably why they gave her their weekly discount of only $40,000.

Some Leverage Airbnb for Their Business

It’s why Stu Waddell got himself a place in San José del Cabo. It’s in Baja California, Mexico, by the way. And if you’ve never heard of Stu, don’t worry about it – he’s not famous. Yet.

Stu used to live in Vancouver, but decided he’d had enough of green-green fields and god-awful rainy weather for most of the year. So he bought a two-story building in San José del Cabo’s historic arts district and turned it into an 8-bedroom B&B called Drift San Jose.

Charging $75 a night, Stu calls his place “non-traditional.” By that, he means that guests cook their own meals and do without the amenities most hotels provide. To further reduce staff, he only accepts bookings through Airbnb.

Given that San José del Cabo has lots of traditional hotels, Stu’s business model shouldn’t work. But it does. For him, Airbnb is the springboard for his brand and he’s using his earnings to expand his property.

Since his target is the 25 to 35-year-olds, the “do-it-yourself” generation, his ratings show that he’s been consistently exceeding guest expectations. He’s even begun attracting the up-market types, which is why he’s already thinking about opening up in other parts of Mexico.

According to the National Association of Realtors, real estate sales throughout the US have tanked because wages have not kept up with inflation. On average, they’ve been down by 7.1% since February of this year.

Which is probably why more people are following Stu’s example by gobbling up properties in Mexico while they still can. .