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Cashflow Diary™

Updated 2 days ago

Business
Careers
Investing
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J. Massey, real estate investor, entrepreneur, sales coach, instructor, master facilitator of Robert Kiyosaki’s CASHFLOW™ 101 games and creator of Cashflow™ Diary, offers free training courses for new and experienced investors. Break through the clutter of learning real estate and business investing and become a successful entrepreneur. Listen to beneficial strategies to improve your skills in prospecting, placing offers, closing deals, buying, selling, wholesaling, fix & Flips, rehabs and much more. By way of Cashflow™ Diary, J. Massey basically gives away current industry strategies by simply teaching what he does daily as a real estate practitioner. Start Learning For Free Today.

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J. Massey, real estate investor, entrepreneur, sales coach, instructor, master facilitator of Robert Kiyosaki’s CASHFLOW™ 101 games and creator of Cashflow™ Diary, offers free training courses for new and experienced investors. Break through the clutter of learning real estate and business investing and become a successful entrepreneur. Listen to beneficial strategies to improve your skills in prospecting, placing offers, closing deals, buying, selling, wholesaling, fix & Flips, rehabs and much more. By way of Cashflow™ Diary, J. Massey basically gives away current industry strategies by simply teaching what he does daily as a real estate practitioner. Start Learning For Free Today.

iTunes Ratings

172 Ratings
Average Ratings
160
4
3
1
4

An incredible show!!

By JoshCrist - Oct 15 2019
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J. Massey is an incredible host and brings on some of the most inspiring guests in the investing, real estate and business world! Each interview has an awesome blend of tactical advice (how do we translate this into immediate, cashflow action today) and the deeper mindset that allows those tactics to become an extension of who you are. The stories he shares are raw and authentic, and he invites his guests to be just as candid. Highly recommend making this podcast one of your go-tos!

Great Host and Guests

By Lucas Marshall - Jun 25 2017
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Wealth of knowledge can be learned listening to the Host and guests on this podcast!!!

iTunes Ratings

172 Ratings
Average Ratings
160
4
3
1
4

An incredible show!!

By JoshCrist - Oct 15 2019
Read more
J. Massey is an incredible host and brings on some of the most inspiring guests in the investing, real estate and business world! Each interview has an awesome blend of tactical advice (how do we translate this into immediate, cashflow action today) and the deeper mindset that allows those tactics to become an extension of who you are. The stories he shares are raw and authentic, and he invites his guests to be just as candid. Highly recommend making this podcast one of your go-tos!

Great Host and Guests

By Lucas Marshall - Jun 25 2017
Read more
Wealth of knowledge can be learned listening to the Host and guests on this podcast!!!

Listen to:

Cover image of Cashflow Diary™

Cashflow Diary™

Updated 2 days ago

Read more

J. Massey, real estate investor, entrepreneur, sales coach, instructor, master facilitator of Robert Kiyosaki’s CASHFLOW™ 101 games and creator of Cashflow™ Diary, offers free training courses for new and experienced investors. Break through the clutter of learning real estate and business investing and become a successful entrepreneur. Listen to beneficial strategies to improve your skills in prospecting, placing offers, closing deals, buying, selling, wholesaling, fix & Flips, rehabs and much more. By way of Cashflow™ Diary, J. Massey basically gives away current industry strategies by simply teaching what he does daily as a real estate practitioner. Start Learning For Free Today.

AHP: Debts, Chaos, and Cashflow

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Jorge P. Newbery is on a mission to help Americans crushed by unaffordable debts. He is Founder and Chairman of American Homeowner Preservation LLC and AHP Servicing LLC. AHP crowdfunds the purchase of non-performing mortgages from banks at big discounts, then shares the discounts with struggling homeowners. AHP Servicing LLC will bring social responsibility and a willingness to do the right thing to an industry often devoid of caring, compassion and basic human decency. On this episode of the CashFlow Diary Podcast, Jorge explains that the most important thing is to take that first step. Then the second step, then the third step. List the steps and take the first one. Don’t look all the way to the finish line, work on getting through the first mile. Break it down into achievable bites that get you closer to your goal.

Apr 12 2018

42mins

Play

CFD 443 - Getting Started and Staying Started in Real Estate Investing

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Whitney Nicely went from no investments (or strategies) to 19 houses, 19 apartment units and 7 chunks of land in less than three years all bringing monthly money to her bank account on autopilot. She has traveled the United States speaking on stages, teaching her simple strategies, and meeting with other successful real estate investors- and still buying houses the way she teaches others. On this episode, she shares how starting something like real estate can seem scary from the outset. When you focus on your seller and buyers, that takes the pressure off you. Your goal in this life should be to help as many people as you can, keep your efforts small, personal, and smooth.

Jan 25 2018

44mins

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Fearless Wealth and Living The Undiversified Life

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RC Peck, sits at the intersection of money and human behavior. For over 20 years he's helped people hear what their money is trying to tell them. His struggle with dyslexia, watching his parents' life savings get embezzled, and his background in Neuro-Linguistic-Programming (NLP), taught him to question the obvious. He now uses his ability to see what others can't see which brings clarity and insight to a world that is often described as confusing and overwhelming. His fearless wealth message is clear. Listen to your money. It's trying to tell you how to get the life you want.  

Podcast Highlights

  • Who is RC Peck?

The first answer that came to RC was a time when he was in 7th grade and taking martial arts. He was able to buy throwing stars for $2 and take them to school and sell them for $8, it was just something made sense for him to do. It just came naturally, he saw the excitement in others and the opportunity became obvious.

RC didn’t know that he was dyslexic until his 30’s, all throughout school RC felt like he was smart but his teachers and test scores told a different story. This lead him to pursuing more creative courses like art, something that came easily to him and that he excelled at. He thinks of his dyslexic journey and sees a lot of people going through the same process, but with their money. There is a form of investment dyslexia that is holding people back.

When RC’s parent’s life savings were embezzled when he was 19, that was when he realized that something was wrong with the investment world. The biggest investment mistake in the world is the belief that “I trust and like fill in the blank!” People trust anyone other than themselves to grow their money.

  • Where does the idea of diversification and fearless wealth come from?

Diversification is an idea from the 50’s, from academia before there were computers as we know them today. The idea of diversification is not inherently wrong, you will still eventually get to where you want to go, but there are probably better options depending on what your goal is.

We are never given the choice to not diversify because it is so common place we never even question the idea. Doing things that go against the mainstream current can be scary, so people rarely look at their assumptions and the common wisdom around investing.

There are only two things that humans can not tolerate, the first thing is not belonging. The second is not knowing the rules. A good parent can be much stricter, as long as they are consistent with their rules. People can even feel “good” about losing half of their investment portfolio value, as long as everybody else is losing too. People with investment dyslexia know there’s a problem, they just don’t have the words to describe it.

  • What are the words that will set us free?

The stock market is an idea that is loaded with negative emotions. When you read a headline that screams “Market Crash!”, your brain is interpreting that as a real, tangible threat. But if you look at an image of a graph of the stock market, you’ll put the whole thing in context and that can shortcut your brain’s fight or flight reaction.

We are not taught to think visually, we are taught to think in words and sentences and the whole time your brain is bringing up associated images that is driving your life. When in doubt, zoom out.

We are under attack, not by animals with claws, but from people who are paid very well that know that if they can make you angry or scared.

Simple and easy are not the same thing. The defense and offense for fearless wealth is simple but not easy. You start with an image because that will rewire your brain. It can prevent your brain from going into panic mode, and can prime you to push toward your goals. To be successful in any area, you have to dissociate yourself from the immediate surroundings.

When you achieve this rewiring you become a bigger difference maker in your community and family. People are unaware of how much of your time and attention that is being sucked away from unnecessary anxiety. Your life is broken down into three parts: your health, wealth, and relationships. If your wealth isn’t taking up as much time and attention, that leaves more for the other areas of your life.

You don’t start nine companies and hope one of them works out. You start one and focus on that. You don’t marry seven people. We don’t diversify in most areas of our lives and that’s what fearless wealth is all about. 

  • RC’s Takeaway

Notice that the voice has always been there, it’s not going to go away. Those who are waiting for the voice to be different before they do the training, it will never happen. If you want to jump to the front of the line, jump on a call with RC and start thinking visually with your money. You will never have to trust and like RC because you will be able to verify your results yourself.

Links:

fearlesswealth.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Jun 10 2019

46mins

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The AirBnB Way with Joseph Michelli

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Dr. Joseph Michelli, Ph.D., C.S.P., is an internationally sought-after speaker, author, and organizational consultant. Dr. Joseph Michelli is the author of numerous national bestsellers, including The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary, The New Gold Standard: 5 Leadership Principles for Creating a  

Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company, and the New York Times #1 bestseller Prescription for Excellence: Leadership Lessons for Creating a World Class Customer Experience from UCLA Health System. 

He was named as one of the Top 10 thought leaders in Customer Service by Global Gurus. His new book is The Airbnb Way: 5 Leadership Lessons for Igniting Growth through Loyalty, Community, and Belonging. Dr. Michelli is an opinion columnist for the CEOWORLD magazine.

Podcast Highlights

  • Who is Joseph Michelli? 

Joseph was a kid raised in a small town in Colorado and his parents imparted a key lesson to him when he was young. Namely, the responsibility of being raised in that family was that he would give more to the world than he took, and if he did the world would give more to him than he could ask for.

Being accepted into graduate school was quite an achievement for Joseph, no one else in his family had graduated from college at the time. He was pretty focused on his own success in his career for a while until he realized that it wasn’t really about him at all, it’s about telling the stories of the clients he worked with as a consultant. Ultimately, those experiences helped Joseph write books about other people to tell their stories.

All of the art of success is taking great principles and celebrating the victories of people you work with and people who are doing inspiring things in the world. The world is hungry for uplifting positive leadership and tools that enable them to experience their own greatness.

  • Inspiring Greatness

We are in a world where short term rentals have blown up and AirBnB is a point in that journey. They created a marketplace that unlocked incredible potential for millions of people and now they are on the same playing field as historical giants like Marriott.

  • What is hospitality?

Hospitality is taking the basics of service like being responsive, acting with urgency, get it right and make it right, and consistency, and then adding on the understanding of human needs that go beyond a transaction. It’s about an emotional experience where someone cared for and about me in a world that is often very lonely and strange.

The real estate itself is the table stakes of getting into the game. The experience is far more important and that’s the element that’s missing in the corporate way of doing things. In many ways the big hospitality companies are trying to emulate the more successful short term rental operations.

Solopreneurs will always have an edge over massive businesses because they’re more nimble and can provide a more personal touch. A smaller player can always be a more personal player than any large service provider.

  • AirBnB vs The Old Model

AirBnB looked for people with the expertise and sought them out as mentors. A lot of AirBnB’s success is in the practice of looking for mentors and seeking out information from people that know more.

Part of the notion of seeking insights from someone else is in seeking community. Hosts in AirBnB do more than offer a place to stay, they create jobs and opportunities in the community they operate in. One of the things that AirBnB has done really well is in advocating for short term rental rights.

Loyalty comes from helping guests feel something. AirBnB is selling belonging as part of the experience. If operators drive loyalty back to the platform that will keep driving revenue back to them.

The host community is on the whole very welcoming but there is always a subset of the population that wants to live out their prejudices. AirBnB has taken steps to correct that tendency and police the one off incidents. It’s a work in progress but the situation is getting better.

There is a need to be a responsible host so some level of regulation seems to be necessary. The issue is when regulations become overreaching and start dictating what people can do with their own property. There is an incredible amount of industry that is being created by the short term rental space. 

  • What are some potential pitfalls of the growth of the short term rental space?

Regulations are certainly a concern, a lot will depend on what happens when AirBnB goes public next year. Market share will be an issue they need to deal with in the near future as well. Scandal is another, some brands become big targets for entire industries. 

Reference: The Airbnb Way: 5 Leadership Lessons for Igniting Growth through Loyalty, Community, and Belonging, Joseph Michelli

  • Joseph’s Takeaway

First and foremost, you have to say you have something of value to create in the world and you are going to define that value clearly. It’s always a matter of understanding the market and then articulating the value that you bring to it. Business is not as complicated as we make it out to be. Just go and start and keep in mind the five dimensions of a successful business.

Links:

airbnbway.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 04 2019

35mins

Play

CFD 274 – How I Did My First 117 Units of Property and Beyond

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In this short Cash Flow diary podcast episode I talk about a few of the basics, like how I did my first deals (because I get the question all the time), how to raise capital and how to generate leads. What you’ll learn is to do things in a certain sequence, which will help get others to enroll in your process. It’s like planting your lands in preparation for a harvest. You have to plow the land, prepare the soil, seed it, do a few more things to keep cultivating and nurturing your crops… and finally get to the harvest. (In real estate transactions, the close of the deal is your harvest.)

In this episode you will learn about the importance of conducting the III interview (triple “I”) with everyone you want to work with. That’s because you want your buyers, investors and sellers to be in total alignment with your goals, mission and vision. If they don’t fit you can’t force them to fit. If you do, you’ll be sorry at some point down the road.

You’ll also learn how to generate leads wherever you go. Whether that’s at Starbucks or the mall or in line at the grocery store. Again, it’s like planting seeds. You don’t just plant in one spot. You spread them around so you get a big, healthy crop.

If you want a better look at generating leads in the real world, you need to check out our Lead Machine Video Course. If you do, you can actually begin generating leads minutes after taking the course! It happens all the time. (It gives you all my offline lead-generation strategies I used when I was starting out as an investor and strategies I use even today!)

You will want to take notes as you listen to this episode. It is taken from a recent Periscope session I did on lead generation. We are archiving these videos in our member area, so if you are a Cashflow Core Member you can go watch it and take screen shots of the graphics I drew in this one! (BTW, you’ll hear my kids in the background. They have taken the role of my official “heart monitors” because we’re trying to reach a million hearts on Periscope by the end of the month.) Learn more. LISTEN NOW.

May 16 2016

36mins

Play

CFD 430 - The Principles Of Real Estate Investing

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Erik Stark is an Expert Real Estate Entrepreneur, Educator, Marketer, Ubercool Dad and Dedicated Husband of 13+ Years. Erik has purchased hundreds of properties, created masterful marketing pieces, shared the stage with the top real estate and personal development educators, helped thousands of people improve their lives and continues to pour his life into people, friendships, disciplines, breakthroughs and growth.  

Podcast Highlights

  • Who is Erik Stark?

If you want to know who Erik really is you have to observe him, not just listen to his words.

Erik originally went to take the test for his Real Estate license right out of high school but after being told there wasn’t enough people in the class and the test was cancelled, he believed that Real Estate wasn’t for him. He later went on to work in an automobile detailing shop where he met up with a friend that convinced him they should go into the Real Estate business together. In the first eight months in business, they closed 35 deals and generated just under a quarter million dollars in profit.

  • What was it like when you realized you could make that kind of money?

The biggest breakthrough in Erik’s business life was when he realized he learned a new skill that he could take it wherever he went.

  • Principles of Real Estate Investing

“The man who chooses his own principles can gladly choose his own methods throughout life.” Ralph Waldo Emerson

Success and entrepreneurship is not about what’s quick and easy. It’s about a systematic approach to testing and improving your process.

  • What are your top three principles?

Stop chasing an opportunity and work a strategy instead. Focus on lead generation. Focus on your vision and don’t abandon it for something new and shiny.

There are a million ways to make money in Real Estate, but when you strategy aligns with your values that’s when you create something very special.

Once you have a team that can execute, your job becomes generating leads to keep the team working. Taking lead generation to the next level is how you can stand out in the marketplace.

Everyone questions their path every once in awhile. When you know your “why”, it will lead you to the right path towards greatness. You will never outearn your personal growth.

  • What is it in your vision that helps you push through?

There is no growth without trials. Get comfortable being uncomfortable. There is risk no matter which path through life you pick.

  • Erik’s Takeaway

You have to find something bigger than yourself that is going to help you keep it together when the negative voices start talking. Break it down to its core so you know exactly why you’re pushing so hard. With regards to Real Estate, learn it from a street level that is close to home. Have as many conversations with buyers, sellers, and lenders of Real Estate that you can.

Links:

realestatewhileyoudrive.com

therealerikstark.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Dec 11 2017

42mins

Play

Lisa Phillips On Affordable Real Estate

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Lisa Phillips is the founder of Affordable Real Estate Investments and #1 bestselling author of Investing in Rental Properties for Beginners: Buy Low, Rent High. After her second layoff and a foreclosure in the bloated Las Vegas, NV real estate market, Lisa found herself alone and halfway across the US from her friends and family with no job. She was left with a 35k condo and only enough money to renovate the place doing the work herself to stretch her unemployment check. It not only gave her a solid foundation of repair maintenance and costs, but also a taste of how owning real estate could be affordable and profitable. After purchasing four more rental properties around or under 30K in OH, MD, and VA, Lisa is now focused on doing one thing she loves to do: showing EVERYONE how they too can affordably start investing in real estate for high profits and cash flow.

Podcast Highlights

  • Who is Lisa Phillips?

Lisa Phillips was born in an impoverished situation but has a strength and conviction that the world can be a better place. Everyone has a need for a house, but there is another process that goes into turning a house into a home, which is one of Lisa’s innate talents.

Lisa was born and raised in Las Vegas and saw the real estate market in the area and thought it was going to the moon. After getting laid off, Lisa had to move to Ohio to find a job that paid a similar salary to what she was making before, which she needed to covering the mortgage on the condo she had purchased. One of the main lessons she learned from that experience was to make sure the average rent of the neighbourhood can cover the payment in case you need it to.

While living in Ohio, she was laid off again after purchasing a small condo and realized that low priced and affordable homes are a great protection in times of recession and uncertainty.

  • Saving Money For Real Estate

When you’re single you choose what level of savings you want to achieve. Once you have a family it becomes much harder to save the same level because your dream of frugality may not be theirs.

  • Courage

Courage comes from being true to who you are. It comes from acknowledging your soul and not letting other people tell you how you live your life. Listen to your own internal intuition and guidance, don’t ignore it.

Lisa noticed that every time she didn’t listen to the voice in her heard, she tended to regret it so she had some practice with it. It can be very hard when everyone around you is going in one direction and your intuition is telling you to go the other way but Lisa found that the more she listened to her soul the more she came out ahead.

Optimism and confidence in yourself to figure out something for yourself or ask for help are two other tools that will help you succeed. You can weather through the storm.

Lessons learned can help you when you get burned. By having such a negative experience with her first real estate purchase, Lisa learned a lot about the economics and math of the whole process and that helped her with her future deals.

  • Why do you help people?

Lisa felt that even though she doesn’t have a massive portfolio of properties she still had some knowledge that other people could really benefit from.

Inspiring people and creating a culture of responsibility are big reasons why Lisa continues to talk to people about her real estate methods. She knows that it doesn’t take a huge number of properties to change the way you think about life and allow you to do things that you always wanted to.

If even 10% of the people in the world had the financial ability to spend most of their time doing the things that they really love, the world would be a different place. Sometimes you just need to see someone else do it before you realize you can do it yourself.

Reference: Investing in Rental Properties for Beginners: Buy Low, Rent High, Lisa Phillips

  • Lisa’s Takeaway

First get really clear about what you want and why you’re doing it. Then talk to yourself in your head about what that vision will do and what it’s going to be. Don’t tell anyone else until why you believe it. Do the research so you can minimize the risks and then choose the path to get you there. Start acting. Have your daydream sessions and then make them fun. Find a coach and talk to them about what you want to achieve, invest in people that can help you.

Links:

affordablerealestateinvestments.com

youtube.com/user/affordablerei

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Feb 11 2019

40mins

Play

CFD 259 - How to Become A Real Estate Entrepreneur

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We are always learning new things and trying new things so we can become bigger and badder in whatever we are doing in life and in our professional lives. When we have a business we need to keep trying new things with our marketing. This is a critical factor in building your presence in the world and online. 

At Cash Flow Diary we have been trying a few new things to spread our message and presence. One thing is Periscope. So in this unique episode I lift the audio from a recent Periscope session to cover the topic of how to become a real estate entrepreneur. 

If you’re new to Cash Flow Diary and are just learning about what we do here, this episode should be very helpful to you. I recap my path to becoming the businessman and investor I am today. You’ll also learn that I’m a father of a few very active children, cuz you’ll hear them from time to time in the background. 

I can give Periscope two thumbs up. It’s fun, it’s easy to use and I can record literally from anywhere. What’s also cool is that I can interact with people in real time because the questions flow in, I see them and get to answer. What’s better than that? 

Another thing you will get a glimpse of is the chaos of my world when I’m at home with the kids! So if you have ever told yourself that you can’t get into real estate investing because you have children and too much chaos, I’m going to have to call you on it. That’s just an excuse. Of course, to fully appreciate my response, you need to head over the ABOUT PAGE on this site and watch a short video about how my life has changed since I first started as a wholesaler and then moving into a buy-and-hold real estate entrepreneur. Learn more. LISTEN NOW. 

Mar 24 2016

39mins

Play

Building A Real Estate Investing Portfolio With No Money

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Author  of  the  book “Free  Houses”,  Austin  Miller  has  built  a  real  estate  portfolio  of  16  units  worth over  1.2  million  dollars  with  little  to  zero  of  his  own  money.  Over  the  course  of  acquiring  several properties,  he  is  fittingly  labeled  as  a  creative  financing  real  estate  investor.  Thinking  outside  the  box from  traditional  investing,  Austin  has  outlined  each  of  his  strategies  chapter  by chapter  in  his  book.

After  working  for  corporate  America  for  five  years,  he  was  able  to  quit  his  job  to  pursue  real  estate and  small  business  ownership  full  time.  Aside  from  real  estate,  Austin  enjoys  spending  time  with  his family  and  his  church  group.  His  other  passions  include  music  and  hunting.  He  also enjoys  talking about  real  estate  with  anyone  interested—veterans  and  rookies  alike.  He  is  active  in  his  local investors  club  and  serves  as  a  mentor  for  new  investors.

Podcast Highlights

  • Who is Austin Miller?

Austin wears a lot of hats but at the end of the day he’s someone who is willing to work really hard to achieve his goals. He has always been a collector and really liked acquiring capital and assets as part of his business.

Living in the midwest gives Austin a unique perspective from the cities on the coast, he knows that slow and steady strategy is the way to win the race.

  • Cards To Real Estate Investing

It takes the innocence of a child to point out the obvious. Seeing developers as a child put Austin on the path to real estate investing.

After getting a job with a commercial real estate builder in 2009, he observed the economy turning around and decided to pursue his dream of real estate investing. Austin needed to get some additional education in order to get started with real estate. Austin feels that he learned more in the six months after he graduated than during his whole time in school.

  • Free Houses

There is no secret in real estate, the education is out there if you look for it. Especially now with the number of podcasts available.Just being around people that want to do the same thing as you is very helpful.

There is no such thing as a free lunch, but as long as you are willing to exchange time and effort, you don’t need any money.

There are a lot of different ways to access cash to fund your deals and it’s normally the first hurdle people face. You have to start thinking in terms of possibilities instead of limitations.

You can Google private money and you can find a funding source. Your average bank wants 20%, but when you change the conversation beyond the usual perspective you can open a lot of opportunities.

Some people have a lot of drive, and some don’t. The world is made for disciplined men, if you get distracted you will never achieve your dreams. Most people will find excuses instead of doing the work.

Real estate investing is an evolving game. Single family homes is one of the most solid investments you can make but there are lots of other opportunities on the market.

Those who walk with the wise, become wise. If you want to learn, teach.

Reference: Free Houses, Austin Miller

  • Austin’s Takeaway

Remove the naysayers, internal and external. If you have a goal, remove the negativity because it will only slow you down.

Links:

Free Houses

austin@hickoryhomebuyers.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Aug 23 2018

38mins

Play

Short Term Rentals Business Q&A #2

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Questions and Answers

  • What’s your system for rewarding or getting rid of cleaners that work for you? 

The best way to make this work is to make sure that everybody you work with understands the metrics that you are measuring performance by. You should know what your revenue was before you hire someone, and you should see a reflection of that person’s productivity in that after you hire them. You should have a minimum standard for review scores the you require your cleaners to maintain and then keep that number in front of them.

  • If the landlord feels the negotiation around the lease is too much work, is there a better way to go about it?

There isn’t much to deal with a lease other than the specific clause around being able to use the property as a short term rental. Other than that there is a clause around marketing and making sure the lease is in the company name. Those are the three main things that you need to address, other than that there shouldn’t be much you should have to fight for.

The more units and the more revenue you’re bringing to the table, the easier it is to have this type of conversation. Start using future language to help your side of the negotiations.

Failing fast and failing frequently is the secret to success in the short term rental business. You won’t be able to get the ball rolling if you are trying to get it right the first time and are unwilling to fail.

  • Do you find you have more success when you are having a conversation with someone in person or is more of a numbers game?

Being in person is a major advantage when you’re getting started because when you’re new, you have a lot working against you including the mainstream media. You have to overcome a bunch of assumptions which is a big challenge over the phone, which is why your only goal on the phone should be to secure a face to face appointment.

  • Can you talk about how many towels, sheets, and linens you put in your units for each stay?

There is a file in the program that breaks down what you need based on the number of beds and bathrooms. Basically you want to stock for maximum occupancy.

  • Can you speak to the Cashflow Game, where do you find it, host it, why do you consider it important?

The Cashflow Game was developed by Robert Kiyosaki and his wife but the best way to buy it now is through Amazon. Being an introvert, J had to figure out a way to increase his odds of attracting customers. The way to do that is to filter, and the kinds of people who are willing to show up and play a Cashflow Game are self selecting as people who are willing to take action.

He or she who educates their market, dominates their market.

  • Can you talk about obtaining guests that are looking for short term rentals due to being displaced and using insurance claim to fund the rental? Who do we need to build relationships and how do we meet them?

You tend to need a lot of inventory to meet these people. You won’t typically find them, they will find you, but once that happens, developing the relationship is crucial. When someone comes to you ask them who their adjuster is or if the adjuster is contacting you, get to know them and their company.

  • Do you have any ideas to generate more income from short term rentals I already have?

Have you automated offering your upcoming guests early arrival? You can also do that with late departures, extra cleaning, or an extra parking spot. There are a lot of little things you can offer to generate extra revenue.

  • What are your suggestions for offsite storage?

If your running a property with a large number of units, an offsite storage area is just how it has to be done. If it’s on a completely different property, then maybe your cleaners have a legitimate complaint.

  • Do you wash all the towels, including the ones that haven’t been used?

Yes, it’s more important to clean everything than to save the money. 

  • Is it true that certain services will turn on instant booking for all listings once they are connected through a property management software?

It depends on the connection type. If it uses iCal to schedule bookings, you will maintain control, but if it uses an API then it will be automatic.

  • How do I handle it when someone books for someone else?

When someone makes a reservation on behalf of another party, instead of referring them to the link we let them know that that’s not allowed and help them understand how to fix it. One way is to have the other person register. You will have to come up with a process that you’re satisfied with because there is no other way to make it work for business travellers.

  • Should I get an AC for a house in Vancouver, WA that doesn’t have one?

There should be inexpensive options that will allow you to install some sort of AC option in the unit. You should also help the landlord understand that by not having an AC in the property they will be at a major disadvantage. If they won’t spend the money on the AC, they will spend it on vacancy.

  • Is there any pros to using software instead of a direct booking site? 

Ultimately they are too expensive for what you get. Just because you’re not ready to use a direct booking site, that doesn’t mean you should start building your business on a faulty foundation.

  • Does the landlord have to obtain the permits? 

Read the ordinance and do what it says. You can’t reliably call the city and expect the person to know the answer. 

  • How do we get into the cleaning business for short term rentals? 

The easiest way would be to make a reservation at one of the busiest short term rentals in your area and then comment on their cleaning. Go wherever short term rental owners hang out. There are many ways to attract the right people to you but they are attracted to you you must also communicate what services you have to offer.

  • If a landlord had six stand alone houses and wanted to work with you, but they had an HOA that’s in charge of 80 houses in that area, would you still pursue those houses? 

You need to read the CC&R’s understand the rules. Do you want to operate the type of business that the rules allow for, if that’s true then go for it. As an entrepreneur, it’s up to you to decide who you want to serve.

Links:

cashflowdiarypodcast.com

Influence by Robert Chialdini

cashflowdiary.com/start

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 11 2019

1hr 9mins

Play

CFD 421 - Achieving Your Vision In Life

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Isaac Lidsky comes onto the Cashflow Diary podcast to give you some much needed inspiration and to show you that you can achieve your vision for your life.

As a successful child actor in a major sitcom, Isaac Lidsky was bound from Hollywood to Harvard, where he graduated by the age of 19 – all while losing his eyesight to a rare blinding disease, retinitis pigmentosa. Yet his future was bright. Today a blind CEO, author and acclaimed speaker, Isaac shares a remarkable story of courage and achievement amid tough challenges.

America first saw Isaac as “Weasel” in NBC’s "Saved by the Bell: The New Class". As a teen, while his eyesight gradually diminished, Isaac began to reframe his outlook. Dispelling any notion of disability, Isaac honed his true vision. And his achievements kept mounting: following college, he not only spearheaded a start-up, but then studied law and graduated Harvard Law School magna cum laude; clerked for Supreme Court Justices Ruth Bader Ginsberg and Sandra Day O’Connor, and argued and won more than a dozen appeals in federal court on behalf of the United States.

As an entrepreneur and leader, Isaac’s first company sold for $230 million, and he then transformed a struggling Orlando subcontractor into the leading $150 million construction services company ODC Construction, he now leads as CEO. He also founded Hope for Vision, a nonprofit organization that funds the development of treatments and cures for blinding diseases.

Podcast Highlights

  • Who is Isaac Lidsky?

Isaac grew up in the Hollywood fairytale in a lot of ways. When Isaac was 13 he was diagnosed with retinitis pigmentosa and realized that he was destined to lose his eyesight. Isaac believed that he would end up alone and unremarkable, which obviously turned out to not be true.

  • Where did the courage to continue come from?

We all confront our challenges differently. In the face of crisis, our fears can step in and we often imagine the worst case scenario. Isaac lost his sight over the course of twelve years. The process of becoming blind made Isaac realize that we shape our own realities.

In every moment, we get to choose who we want to be and how we live our lives. It’s an inescapable responsibility.

Isaac had an epiphany in the office of his occupational therapist. He was choosing to live in the awful world that he had created for himself in his mind. He made a choice to live differently.

  • How did you go from the doctor’s office to creating a company?

What is it that you want to spend your time and your life on? What does success look like to you? You are living the answer to those questions every moment of your life, whether or not you are asking them consciously.

  • Without your diagnosis, would your life look like the way it does?

Isaac wouldn’t change a thing about his life. Going blind was one of the greatest unexpected blessings he has received.

  • Changing your perspective

We tell ourselves stories and limit ourselves. We listen to our fears and let them dictate the way we act. In the business world, entrepreneurs often set out to market the business or service that they want to sell. But it’s often more lucrative to create what your customers want to buy.

  • Why did you write the book?

EYES WIDE OPEN explores the vision and philosophy of choosing what you want to see. Isaac wrote the book with his children in mind in the hopes that they will read it in the future.

Isaac does not have vision problems, he has sight problems. No matter what circumstances we are in, there are people who have done far more with much less and have lead happier lives. It’s not our circumstances that dictate our life, it’s how we view them.

  • What are some challenges that entrepreneurs create for themselves?

Cash flow can be a valuable ally or a vicious foe. Too often will problems in your business will be obscured by positive cash flow. Or negative cash flow can sink an otherwise profitable venture. Business is both an art and a science.

Understanding and leveraging cash flow dynamics is what saved Isaac’s construction business.

Don’t do work that is not profitable is cash flow rule number 1. If you are not collecting money before you are paying money, it’s only a matter of time before your business will be underwater.

Isaac saw the 2011 recession as a major opportunity for the residential construction industry despite the housing market. The possibility of failure was very real but nothing ventured, nothing gained.

If you are looking for a guarantee in life, you are never going to find one. Do the research, talk to who you need to talk to, and if you believe in what you are doing, go for it! Success is in the striving for a worthy ideal.

Reference: EYES WIDE OPEN: Overcoming Obstacles and Recognizing Opportunities in a World That Can't See Clearly, Isaac Lidsky

  • Isaac’s Takeaway

Ultimately the art of the entrepreneur is to silence the inner critic and harness the strength within and believe in yourself. The circus of negative thoughts are not your reality unless you choose to listen to them.

Links:

http://lidsky.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Nov 09 2017

42mins

Play

CFD 325 - Alia Ott

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Alia has spent nearly 15 years investing in real estate, and has been involved in over $25M worth of real estate transactions and private loans. She and her business partner, Terri Garner own an education company called Investors in Action that helps people learn how to earn passive income through self storage investing.  They also manage investor relations for the Capital Storage Fund which focuses on purchasing low occupancy self-storage properties and using their Revenue Optimization Process to quickly increase cashflow and overall value.   

Alia is passionate about financial education for women and children.  She helped found several financial literacy programs including a youth-based program called “The Magic of Money” and “Cashflow Divas,” a mastermind group for entrepreneurial women focused on creating passive income.   

Prior to investing full time, Alia served as a Director for several corporate philanthropy programs initiated by Cisco Systems, AOL, Yahoo! and the United Nations; creating giving portals that have raised over a Billion dollars online for charitable causes.  Alia is a master connector and holds a degree in Communications from Chapman University as well as a Certification for Advanced Project Management from Stanford University.  She is a licensed real estate broker and best-selling co-author of the book “Initiative”.

Nov 10 2016

40mins

Play

Tower Capital and Financing The Real Estate Business

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Adam is the Founding Partner and Principal at Tower Capital, a Phoenix-based Commercial Real Estate Finance firm. Since 2015, the firm has been involved in over $500 million in successful debt and equity placements on behalf of investors across all major asset classes. 

Adam is an active member of Forbes Real Estate Council and has been featured and published in numerous national and industry publications including Forbes, Globestreet.com, National Real Estate Investor, Phoenix Business Journal, Commercial Executive Magazine, Multi-Housing News, and many others.

Podcast Highlights

  • Who is Adam Finkel? 

Adam is a regular guy from Boston, Massachusetts. When he turned 18 he headed out west and went to school at Arizona State University. It was there where he found an opportunity to get his foot in the door of doing commercial real estate from some of the older members of his fraternity. Prior to that Adam didn’t have any experience in the industry, he just saw the opportunity that was available and went for it.

Doing the transactional deals and putting in the work gave Adam a good understanding of what tenants and landlords need, and that served him well once he moved onto the finance side of the business.

Investing in real estate doesn’t need a college degree, anyone can do it, which is the great thing about. Adam recommends that people start small since it’s more attainable and makes financing larger deals much easier. The first question Adam gets asked is “who is the sponsor?” because that’s even more important about the details of the deal itself.

  • Getting Started In Real Estate

Many people get their feet wet in the real estate business by buying single family homes. That’s where Adam tells people to get started in real estate. From there it’s possible and easier to move onto multi family homes, apartments, or commercial real estate.

For some people, they have to learn from personal experience and make those mistakes. For those people they usually find that it can be very challenging trying to buy a larger building and they end up starting off small anyway.

When Adam was getting into the real estate business in 2003 the market was picking back up again and there was a lot of activity in his local market. He believed that there was no better way to build wealth than real estate so it seemed like the perfect opportunity.

Adam loves working with people and finds the capital markets very exciting. There are so many facets to commercial and traditional real estate so there is tremendous potential for people to tap into. With most things in life, it takes exposure to many different things to find out what you like and don’t like. If an opportunity comes along you should try it out and see where it leads you.

  • Tower Capital and The Finance Side of the Business

Adam wasn’t particularly interested in getting into the financial side of things. After working for a few years he began to get tired of the tenant rep leasing side of the business. He met a man named Neil Churney who invited him to work with Johnson Capital as an analyst helping Neil with the finance side. 

Johnson Capital was acquired in 2014 which was the perfect opportunity for Adam to start his own business with a long time friend. They started Tower Capital and has since built a business with 8 employees and will finance between $300 and $400 million dollars worth of deals this year.

Tower Capital isn’t focused on one particular asset type. The typical loans are a million dollars and up. They have a very collaborative approach and all of their capital advisors have unique experience that they bring to the table.

  • Short Term Rentals

The short term rental space is still a difficult space to get financing because it doesn’t fit into the established boxes. With an apartment building there is more stability and with hotels there are other criteria they take into account. Over time we are going to see more programs available for short term rentals but right now it’s still a challenge for most lenders and borrowers.

Short term rentals can definitely be more lucrative than the traditional rental model, it’s just going to take time for investors to wrap their heads around it.

  • Finding The Right People To Work With

Tower Capital focuses on getting an understanding of what the borrower’s needs are and matching them together with the right capital source. Family offices tend to be more long term and conservative investors whereas the debt funds are the ones providing much of the bridge money. They are very concerned with the exit strategy which can create another hurdle for people with their deals. 

A lot of lenders have capital sitting on the sidelines that they need to deploy but strict underwriting parameters are still preventing them from doing so. For the right deals lenders are having bidding wars on who gets to lend so for the right deal and the right borrower it can be a very advantageous time.

The capital markets are very complex with a lot of forces at work that can be difficult to wrap your head around. Interest rates definitely have an impact on the business but they are not the only factor. When interest rates stay low that means borrowers can access bigger loans, but when they go up there is a lot of downward pressure on property values. 

Everyone is very cognizant of where the market is in the cycle. There is a lot of caution around deploying capital to deals where the borrower is overpaying for property just because the rates are low, but at the same time they have money they need to loan out. The thing that people need to focus on is coming up with a good plan and underwriting with a cushion on the rate.

When a lender is underwriting a deal they are looking for a 1.25 debt servicing ratio. As long as the US economy is still strong lender will continue to look for the right deals.

Any dramatic increase in interest rates are likely to greatly reduce the transactional velocity in the market right now. 

  • Adam’s Takeaway

Get your personal financial statement and schedule of real estate buttoned up. Be cognizant of what the lender’s underwriting parameters are, when buying a commercial real estate property they typically want to see a net worth equal to the loan amount and cash in the bank equal to 10% of the loan amount. If you don’t have those in place you’re going to need to find someone with the right balance sheet to help you get the financing you need.

Links:

towercapllc.com

Give Adam a call 480-426-0576

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Sep 04 2019

49mins

Play

The Land Academy, Buying and Selling Land for Fun and Profit

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Since 1999, professional real estate investors, Steven Jack Butala & Jill DeWit, built a $24m land resale empire completing close to 16,000 transactions without incurring any debt or leverage. In 2015, they co-founded Land Academy to share their experience and provide access to professional level tools for like-minded investors at all stages of their careers.  

To date, they have produced more than 1,000 podcast episodes and provided over 500 hours of live webinars all in the name of education through sharing their transaction experience. 

Podcast Highlights

  • Who is Jill DeWit and Steven Butala? 

If Steven had to choose a superhero to be like it would have to be Batman, being an entrepreneur is a lot like the way that Bruce Wayne took his circumstances and resources and found a way to use them for good. For Jill, she identifies with Wonder Woman and the way that she operates. Wonder Woman is forthright and truthful, and that’s how they run the Land Academy.

Steven graduated in 1989 and became a commercial real estate broker in one of the worst real estate environments possible. It took him several years to make it work but he learned a lot about real estate by working on some of the most complicated and difficult types of deals you can do. That lead him to look for a simpler way of doing a deal and towards a different kind of transaction.

Jill’s father raised her to believe that she could do anything that she wanted and to act like she knew what she was doing. She followed in his footsteps in many ways but was never very far from real estate. She worked with some developers in her early 20’s and when she eventually met Steven it all clicked together.

Steven’s Unique Abilities include the ability to analyze data and make connections that other people can’t see as well committing to a project and following up until it’s complete. For Jill, she can connect with people from all backgrounds and situations. This makes her very good at talking to sellers and developers and making everyone feel good about a deal. She’s never had trouble seeing anyone as another human that has similar hopes and dreams to herself.

  • Formal Education

Steven believes that some form of formal education is important but that doesn’t necessarily mean the traditional four year degree. Getting the experience in a professional environment is important to be able to make a go of it when you do decide to go out on your own.

Jill was raised to think about what she was going to do with her life and was encouraged to go for the big stuff.

Formal education does not prepare you in any way for the politics of an office. They prepare you academically for what’s possible but they don’t show you how to do anything. Formal education also doesn’t teach the skills of scrappiness, talking to people, and dreaming big. In many ways formal education places limits on people’s abilities to think about and achieve big goals.

In many ways a vocational education has more value in today’s marketplace than an education from a more well known and traditional institution.

  • Land Academy and Buying and Selling Land

Landing is one of the easiest product types in the real estate business. The majority of the time there is just a seller and a buyer, there is no appraiser, agent, lender, or inspector. With just those two people you can close a transaction very quickly.

There is always somebody out there that is interested in a piece of land that you wouldn’t be interested in at all. Jill and Steven’s business model is predicated on not improving property, they buy property and then immediately resell it to people who then go and sell it on terms. The secret is in the offer campaign that reliably generates consistent results.

The real key to successful direct mail campaigns is sending offers with a direct custom dollar amount instead of just a letter of interest.

Technically you can buy land anywhere. It’s all about pricing and predictable results so in many ways data is the most important aspect of the business. There are many ways to cash flow from land, you just have to be creative and look for the right opportunity.

Most people think about land backwards. They look at a piece of property and try to figure out how to make it fit instead of filtering their search for the land that fits the project.

  • What is the unique exit strategy that we’ve never heard of?

Jill and Steven have essentially built a list of consistent buyers that they can bring deals to. The typical deal for them involves buying the land, immediately reselling it at a very low wholesale amount, and then that customer resells it on terms and lets the note season then selling the note after six months or so. Building your own buyers list is crucial to success which is why it’s an integral part of the Land Academy educational platform.

  • Jill and Steven’s Takeaway

Trust the process, do the steps that Steven and Jill say, and watch what happens. You will see that it works and then want to do more. Steven wants you to go to landinvestors.com and ask the hard questions, then you’ll hear from people who will tell you how they did it themselves.

Links:

landacademy.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Sep 30 2019

58mins

Play

The Science of Getting Rich

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David Neagle is the bestselling author of The Millions Within: How to Manifest Exactly What You Want and Have an EPIC Life!. He is one of the architects of the coaching and personal growth industry, and has spoken or worked alongside Bob Proctor, Marianne Morrisey, and Tony Robbins.

Podcast Highlights

  • Who is David Neagle?

David was a person that was truly confused about the meaning of life. He came from a place of dysfunction in childhood and sought the answers to his questions from his teachers, parents, and mentors but no one could answer him. He ended up venturing on his own and turned into a curious kid on the wrong path in life.

He could really relate to the idea of “I don’t like what I am doing, but I don’t know what to go do.” At some point, David made the decision to follow the desires of his own heart which put him into a different emotional state, and his results soon changed as well. He wanted to set up his life so that he could do what he loved, with the people he loved.

  • Why do we feel like we need permission?

We are raised to believe that we need permission in order to advance in life. Permission is subconsciously linked to security which is something that is vital to human beings. The proper role of a parent is to turn over the power to make decisions to their children as they grow over time but many dysfunctional families end up with children taking care of the parents instead.

We live in a world of conflicting ideas and information, without a set of core values to guide us through life we begin to look for others to guide us and tell us what we need to do.

  • Questions About Suffering

Are we meant to suffer? David had a near death experience when he was younger that completely changed his perspective on life and brought a sense of urgency to his life.

David was working six days a week and couldn’t earn more than $20,000 a year and felt stuck. He was emotionally and physically exhausted while on the job one day that he had a complete breakdown and asked for direction. He received the answer “change your attitude” and decided to act like he loved what he did, do every job to the best of his ability, and treat everyone with respect from then on. Within 30 days he went from $20,000 a year to $62,000 and realized he was on to something big.

Your attitude determines your altitude.

  • The Science of Getting Rich

For years the book The Science of Getting Rich had been around David but he always thought it was a book about economics, that was until many people told him he had to read it. After reading The Science of Getting Rich in a single afternoon, he realized that it contained the answers he was always looking for.

Once he got clarity, David was able to make positive changes to his life much faster. Lack of clarity is the primary obstacle in people’s lives.

There is so much conflicting information in the world and if the information you discover conflicts with the principles you were raised with, it creates an internal battle. Until that battle is resolved, it’s impossible to get clear on your life.

  • Where did the courage to teach others come from?

David was waking up in the middle of the night for six months. Every night he awoke with the thought that if he wanted to live his dream, he had to leave, but he didn’t understand what it was that he had to leave. He called his mentor Bob Proctor who told David to just quit. He learned that the decision always comes first.

You always get what you need when you need it. You will not replay a pattern in your life that you haven’t experienced before.

To grow you have to acknowledge the desire in your heart. The conflict that comes in for a lot of people is they believe that’s irresponsible. There is a lot of uncertainty in people’s mind about how resilient they are.

When you connect the result to the action and the thought, everything in your life changes. True wealth is the awareness to manifest whatever you need in life.

Reference: The Millions Within: How to Manifest Exactly What You Want and Have an EPIC Life!, David Neagle

  • David’s Takeaway

The first thing is to change the concept of who you think you are. When you hear the voice that tells you about all the things you did wrong in the past, it shapes your concept that you are flawed. Making mistakes is not a flaw, it’s how we learn. Embrace the idea of making mistakes and growing rapidly. Step into your purpose. Make a solid decision to take an action on something which creates momentum and opens the door to the next decision. Opportunity often shows up as misfortune or temporary defeat, when you make the decision to focus on what you want your awareness will expand and then it becomes a process of saying yes to the things that will move you forward.

Links:

davidneagle.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Nov 08 2018

44mins

Play

CFD 351 - No Money Down Internet Business - John Lagoudakis

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John Lagoudakis is one of Australia’s leading Internet marketers. Back in 2007, John stumbled across affiliate marketing and within two years was able to go from $0 online, to being one of Clickbank’s top 100 affiliates worldwide.

He’s been featured in the New York Times bestseller ‘Get Rich Click’, has authored several books, including the bestselling No Money Down Internet Business: How To Build a Successful Online Business Without Spending One Penny!, and has a long-running Internet marketing podcast, The John Lagoudakis dot Com Podcast.

Feb 09 2017

50mins

Play

CFD 315 -Josh Cantwell Tells Us Not to Settle for the Ordinary Life

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What does Cash Flow Diary podcast guest Josh Cantwell, real estate investing business superstar, and Superman have in common? They were both hail from Ohio. That’s right… Superman was born of the minds of a couple of very creative individuals in Ohio; Josh’s entrepreneurial mindset was formed by watching his entrepreneurial father in Ohio… a place Josh continues to call home even today. 

Though CEO of Strategic Real Estate Coach, Freeland Ventures and Yellow Jacket Properties, Josh is the Josh wasn’t always the phenomenal real estate entrepreneur he is today. In fact, he started out playing ball in his teens. But instead of a chasing a dream life in sports, Josh went another direction. He attended college and then became a financial advisor. The one thing he saw in each and every one of the top-earning clients he worked with is that they all owned real estate. A light went off, and he decided at a very young age to buy real estate and become a landlord. This ended up being one of his best decisions ever; it put him on the path to true success and an impressive income. 

Josh says that while he didn’t know everything about doing real estate deals, but he was willing to learn and willing to fail. He adds that he made plenty of mistakes and had failure events; he says that learning means we’re going to get scars. 

Talking about scars, that’s something Josh knows about… not just in his learning experience. He is a cancer survivor and has the physical scars to show for it. Josh says that during that time, he had three very young kids and a real estate business that was coming unwound because he had not leveraged the talents of other people to help him run things. 

Josh says that cancer changed the way he looked at his life, his business, how he handles tasks and so much more, so he looks at it as somewhat of a gift. In short, he learned that the here and now are more important than any business to-do list filled with items that may never get done. The fact is that there will always be a to-do list. 

This is a bit of a different type of interview and you need to listen. When you do, really think about what Josh shares, especially about managing fears around, well, anything. In fact, listen to what he says about enjoying the pain! Learn more. LISTEN NOW.

Oct 06 2016

55mins

Play

CFD 374 - Cashflow Is King; Real Estate Investing For Cash Flow - Kevin Bupp

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Kevin Bupp believes there's a smarter way to build wealth. The most successful commercial real estate investors in the world have learned to leverage their multifamily and commercial properties to create a steady stream of passive income.

Links mentioned in this episode

May 01 2017

55mins

Play

CFD 316 - May McCarthy Guides You Along The Path to Wealth to Financial Abundance!

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In the book, The Path to Wealth; Seven Spiritual Steps for Financial Abundance, May will show you how to make the All-Knowing Power of the universe your new business partner. In doing so, you will receive help from your new partner to achieve greater financial abundance and freedom. As with any partnership, you will spend time each day getting to know each other and build a high level of trust.  As May shares the seven steps in detail, you will learn how to create and cultivate your new partnership and achieve more of the good things that you want in life. As you attain more of your goals, you’ll recognize that you have done less of the work since your new partner is now doing its job in the partnership. Make the commitment to begin your partnership today.  Now is the time for you to achieve greater financial abundance, happiness, and freedom! Order The Path to Wealth and attend upcoming workshops and events to learn more.

Oct 10 2016

54mins

Play

CFD 409 - Investing Like The 1%

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This episode shows you how to duplicate the results of some of the most successful entrepreneurs in the world and invest life the top 1%.

Scott Picken is a South African-born real estate investor and entrepreneur. He is the co-founder of Wealth Migrate, a fintech company that offers real estate investments on its online marketplace through crowdfunding. He began offering real estate investment solutions at the age of 26 when he founded International Property Solutions.

The Huffington Post named Wealth Migrate as one of the top 60 real estate crowdfunding solutions in the United States in 2014.

Podcast Highlights

  • Who is Scott Picken?

Scott Picken has always loved building things. Scott built an extension onto his family’s house at the age of 13. This lead to his passion for building businesses and technology.

  • Building Something Tangible Versus Something Intangible

If you want to be successful, do what successful people do.

The amount of money you can make in the business world is proportional to the amount of value you can add.

  • How Did You Go From 13 Year Old To Wealth Migrate?

After missing out on a major opportunity during the 2008 crisis, Scott decided to build a platform that allowed people to access the capital that the institutions could as well as the knowledge and expertise to invest globally.

  • Using The Wealth Migrate Platform

No matter what happens to business and technology, the fundamentals never change.

  • What Are The Top 3 Mistakes That You’ve Made?

Systems unlock the potential for your business.

The people you know and like don’t always make good team members, it can make having difficult conversations even harder.

  • Scott’s Takeaway

Nobody learned how to swim by reading a book, at some point you have to jump in the water.

What doesn’t kill you makes you stronger, it’s not a case of if, it’s a case of when you will make mistakes. The important trait to have is persistence.

Links:

https://www.wealthmigrate.com/

http://www.ipsinvest.com/

https://en.wikipedia.org/wiki/Scott_Picken

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes!

Sep 28 2017

51mins

Play

The Listing Reviews Q&A

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Sometimes your technology breaks on you! Even so, we’ve got a number of listener questions tackled today including a couple brutally honest (but helpful) short term rental listing reviews. We always come from a position of honesty in hopes that you will make more money, so we’re not going to tell you comforting lies just to make you feel better. Listen in to learn why the bad photos can sink your listing and what you can do about it.

Questions and Answers

  • A question about a 37 day booking and the importance of reviews 

One of the things to know about the short term rental business is that it is definitely a review based business. Experience in this business is generated specifically by scaling up and doing the work more often. For this caller, they shouldn’t pass on the 37 day booking unless it is going to hurt their business long term.

A long term booking will always make that unit’s performance suffer when compared to other more short term reservations. But if it allows them to add another unit financially, it may be a good move because it will allow the caller to achieve Super Host status by the end of the quarter. 

It can also be important to run an AirDNA report on your zip code to understand the trend for your area. That will allow you to understand whether your prices are on point or if you’re leaving money on the table.

  • How do I get an affiliated link from Uber and Lyft?

Inside the app, you can find your share code which is the code you can use for your bookings and guests. Working with restaurants by sending them business instead of getting paid for the referral may actually be superior to an affiliate relationship. Having them on your side in political or municipal issues will probably be more important than having an additional revenue source.

  • J reviews a caller’s first post on Airbnb

When creating a short term rental listing, lead with photos with the inside of the unit instead of the amenities. Photos of the exterior can also lead to security issues if it’s possible to identify the address of the unit.

The caller’s photos should probably be reshot due to the handheld nature of them as well as the general poor quality. They suffer from lighting and focus challenges and the caller’s bookings will probably be lower than what they could have achieved. Another good tip is to stay away from vertical photos at all times.

The caller has definitely put in some work on the short term rental listing, but seems to have skimped on a few crucial elements like the photos and design. In order to tell the right story with your photos, you have to make the investment and do them right.

The ideal reaction to your short term rental listing should be the reader feeling like they must stay at your unit.

  • I’ve got a meeting with the zoning department, do you have any pointers for me?

Since the caller only has three minutes to talk, he should be using his time to instill doubt in his listeners because right now they are certain that the caller is the bad sort of short term rental owner. He should show them that he’s a professional and has systems in place to deal with all the common issues that people complain about with other less professional short term rental owners.

  • Another review of a caller’s first short term rental listing

The caller already has some hesitation about the photos for her listing. The reason the photos look off to the caller is that their photographer used HDR, which is something that you should always avoid. HDR can cause many different types of issues with the lighting and focus of the photo.

Nearly all the photos on the listing have to be scrapped. Preferably, the next photographer avoids HDR, uses a 15mm lens, and uses natural light instead of attempting to color correct after the fact.

  • How much can I depart from the blueprint you’ve laid out if it makes sense for who we want to serve?

If you’re thinking about who you want to serve and making choices based on that, you aren’t deviating from the blueprint at all. If the caller wants to serve business travelers from Mexico and knows what they need and want from a short term rental listing, then they should go for it. 

One thing to keep in mind is that business travelers probably don’t need much square footage and if the caller goes with a larger unit they may run into underutilization. The bulk of business travel is done with smaller units.

  • Any thoughts on Properly to manage cleaners?

Properly is a great tool to manage cleaners, but the question is can the staff doing the clean effectively use the tool. If they can, then definitely take advantage of it.

  • Do you refresh Wheelhouse manually?

J lets the software refresh all its own and it handles everything just fine. He does check it a couple of times a week just to make sure it’s doing what it’s supposed to be doing but that’s it.

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Dec 09 2019

1hr 5mins

Play

Finding Good Deals in the Short Term Rental Business Q&A

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There is no definitive good deal in the short term rental business. If you want to know if your deal is good or not, you need to know one simple thing first. It’s something that’s going to drive your reviews and the growth of your business, and that’s meeting your customer’s expectations. Figure out who you want to serve first and that will make the answers to your questions much clearer. 

Questions and Answers

  • Are you still hunting for apartment deals? 

J still loves apartments, he’s just changed who he puts in them. With apartments, net operating income is the name of the game and most importantly, if you can manage that properly the value goes up as well. J is not getting out of the apartment game anytime in the near future.

  • Do you think it’s a good idea to incentivize guests to do a load of laundry before they end their stay?

Quality control becomes an issue here. How do you know the laundry was cleaned correctly? There are other ways to lower your cleaning costs if that’s the goal. J tends to shy away from asking his guests to do anything, some guests will actually become offended by getting the request to do additional work. For this particular caller, the issue may lie in the cleaner that he’s using and their method of billing for work. Ideally, with a linen service, you should only be paying for your laundry that has been weighed while dry.

When it comes to a guest checking out, if you have a checklist for them to complete, be upfront with the reasoning for the tasks so they don’t have to wonder why they are putting in some extra work.

  • What’s the best way to avoid bed bugs before they appear?

Bed bugs tend to come in with a guest, they don’t typically just appear. A good tip is using a metal luggage rack to reduce the incidence of a guest putting their luggage on the bed directly. Protecting the mattress with a casement is also a good precaution.

Bed bugs are typically pretty rare, but there are still steps you should take to minimize your risk. Insurance is one example of a way to cut the cost, the trick is making sure the coverage is actually what you need. It’s not uncommon for a bed bug infestation to cost you thousands of dollars to remediate. Be sure that your insurance actually covers bed bugs specifically. You don’t want to get into a situation where you save some money on your premiums but aren’t actually covered from the risk you’re trying to mitigate.

  • How do we get around the key fob issue?

We tend to leave the key fob inside the unit and the trick is getting the guest to the unit for the first time. Module 3 of the Mastermind product covers this in more depth. Go to cashflowdiary.com/star to learn more.

  • Pricing in the Short Term Rental Business

As you enter into your slower season, pricing becomes even more important. If you aren’t doing dynamically adjusted pricing, you’re either leaving money on the table or having a lower occupancy than you should.

  • I have an opportunity to buy an eight unit apartment building and I want to use them for short term rentals, do you think this is a good deal?

There is no definitive good deal. What’s a good deal for J will probably not be a good deal for you. However, there is a customer that your business is best suited to serve. There are other factors that determine if the deal is right for you and it all stems from who your customer is. You won’t know it’s a good deal until you know who your customer is. 

What’s most important, what’s going to drive your reviews and the growth of your business, is meeting your customer’s expectations, and you get to choose who you want to serve.

  • What markets do you search for apartment deals in?

Deals tend to come our way right now, so J isn’t on the search for apartments deals at the moment. If we were looking, some markets might include Long Beach, Phillidelpia, and parts of North Carolina would be on the list.

  • What are some ways that you can find owners that are willing to do subleasing for Airbnb?

There are a couple of things to understand. You are not subletting and you don’t have an Airbnb business, you have a short term rental business. If you start off thinking you have an Airbnb business, that will limit your capacity. That being said, finding landlords is fairly easy. Look for “For Rent” signs and call them. To get a better idea of what to say and how the system works, check out the free presentation at cashflowdiary.com/star.

Owner controlled buildings are a great way to build your experience while also building your business.

  • I have three units and people want to rent them long term, how can I prevent that?

It’s not uncommon for a smaller square foot location to outperform a larger square footage space in certain markets. Since the clients that the caller is asking about are typically business people, there shouldn’t be a big issue with letting them rent long term. Whether the guest wants to stay one day or hundreds of days, it doesn’t mean you have to discount the price. 

Offering an incentive like a free TV when a guest books long term is another good way to get the guest to work very hard to get their HR department to cover their stay.

  • I have a guest that has a service dog that they didn’t tell me about and I’m trying to evict them, what should I do?

This caller is creating a difficult problem for themselves by trying to evict the guest. If it’s an actual service animal, they may just want to leave it alone. If the animal ends up damaging the unit, they can deal with it then. 

Since the guest has a service animal and the caller has caught them, they can now go to them and communicate that there are other rules that need to be followed. If they are going to call the animal a service animal and not follow service animals rule, then he may have something to work with.

  • What are ways to market your short term rental business, and how do you become a student?

You become a student by starting with the presentation at cashflowdiary.com/star. There are two products available. The Blueprint is meant for students to learn how to get their first unit, the Mastermind product is for those students who are ready to scale their business. 

In terms of marketing, the most important thing is to first understand who you are serving. Once you know that, you will know where and who to market to. Don’t even consider marketing until you understand your customer.

  • With the TV incentive, do you send it to their home address?

We just drop it off at the unit and let the guest figure out how to get it home.

  • I’m looking to buy linens in bulk, any suggestions?

Go to cashflowdiary.com/silkysheets to get a 15% bulk discount for Cashflow Diary students.

  • Do you allow your students to use you as a reference?

We want you to be your own person, even someone new to the business shouldn’t need a reference from J. Getting into the Mastermind product will give you the specific approach to use and have the confidence to deliver the results so you won’t need a reference.

  • What do you do when a guest has rental remorse?

We simply stick to our cancellation policy and enforce it.

  • When should we use VA’s?

Since the caller is just getting started, they can comfortably run the business themselves until they have somewhere in the ballpark of thirty units. Doing the work himself initially will allow him to develop a system and SOP’s for how he wants to get the work done. Once he’s grown enough (or has had enough with dealing with guests directly), he can consider bringing on VA’s to help.

J didn’t start running 24 hour coverage until he already had twenty units. At that point, it’s possible to run the business with a minimum of 5 individuals working 40 hour weeks.

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Dec 05 2019

1hr 30mins

Play

Is It Too Late To Start The “Airbnb Process”? Q&A

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If you’re thinking about starting the “Airbnb process” and aren’t sure if you’ve missed the boat, listen up. Real estate is changing but it’s not too late. Airbnb is just one of many marketplaces that we use. Short term rentals are here to stay and if you want to learn how to build your real estate portfolio, now is a great time to start putting the systems in place.

Questions and Answers

  • I’ve been able to get the landlord to agree to the short term rental business model in general but I’m not sure I can make a profit, what should I do? 

Step one always comes down to understanding who it is you want to serve. When you focus on who you want to serve, one of the criteria you’re looking at is their income. That will help you understand what area of town to be in and how much they will pay for certain experiences. All your streams of income will be based on how much income your ideal guest makes. 

Once you know all your potential areas of revenue, you will be able to subtract out all those things and complete the picture of profitability.

It can be difficult to use aggregated data to determine what your prices should be. The spread is so wide that it’s not very useful for identifying a specific case like your listing. Once you complete the exercise of figuring out who you’re serving, it becomes much easier. Keep in mind that your revenue is much more than just your room rate.

  • How do I automate my messaging system?

Lodgify has a rudimentary system for messaging. What we do to shortcut that is provide our guests with a link to an electronic house guide where all the relevant data is included. Everything except the dynamically generated door code because we still want to be able to maintain control of the access to the unit.

  • A question about a listing review

The caller’s photographer did a good job on the photos for the listing. Since the caller has followed the system closely most of the details are on point. One area that could be improved on is the copy detailing the neighborhood. Your listing is your first line of customer service, if you answer the question before the person asks you have one less question to answer later on. This can really help save time once you have a number of different units.

  • Which program should I consider to learn how to manage resort properties?

In terms of execution, resort units are very different from residential. In some ways resort units are easier because the kinds of customers you are serving are more obvious. For this particular caller and his thirteen units, the Mastermind Product is his best choice. Go to cashflowdiary.com/star to learn more.

When it comes to negotiating with the owner of the property, the structure the caller is using is the same one that we use. If the owner wants a cut of the business, they have to be able to contribute more than just the space. Otherwise, renting the property from them is the right way to go.

  • How do you dynamically generate a door code?

It depends on the platform you’re using. Sometimes the software you’re using can integrate directly via an API to create the door code, other times a personal assistant can do it.

  • What’s the difference between leasing an apartment under an LLC or my own name?

The difference between the two is in who is doing the business. What it comes down to is if something goes wrong, who does the landlord have a claim against? You or your LLC? If you’re trying to accumulate assets, it’s generally best to use an entity to shield those assets.

  • Is it too late to start the Airbnb process?

We are not in the Airbnb business, we are in the short term rental business. Airbnb and the rest are marketplaces. It’s not too late but you also have to understand that real estate is changing. Many of the established players in the industry have begun to mimic Airbnb because of these changes. 

Even how we transact real estate is changing due to the technology involved. It’s only becoming more liquid as technology makes the process of transacting faster and easier than ever. Just because you didn’t recognize the change before it started doesn’t mean it’s too late. If anything, now is the perfect time.

  • How are you doing Homeaway pricing?

Right now, Homeaway pricing is being done updated twice a day based on comparable pricing on a set of properties within the software. 

  • Did the automated messaging templates come out yet?

Not yet, but existing Mastermind students will have access to the templates very soon.

  • A note on the upcoming holidays

Now is the time to earn some additional revenue and create really great experiences for people. Make sure your security measures are working and everything is up to date. What could happen is not something you want to have happen. Get everything lined up including your pricing, inventory, and team now so you can take advantage of this time of year. 

  • Are there effective ways to approach companies directly about bookings?

There are a number of ways to go about this. The front door method is to look up Concur customers in your area. They are already potential customers for your business. If you’re using the system we suggest, you can also create a promotion that incentivises your guest to refer you to the person that arranged their travel. If they are corporate travelers, they know exactly who you need to talk to and that’s a great way to get your foot in the door.

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Dec 03 2019

1hr 7mins

Play

Shawn Harper’s Winning Edge

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Shawn Harper is a former American football offensive tackle in the National Football League. Harper was drafted by the Los Angeles Rams in 1992. He also played for the Houston Oilers, the Indianapolis Colts, and three years in NFL Europe with the Amsterdam Admirals and Frankfurt Galaxy. Shawn Harper appeared on the hit MTV show Made. He has helped transform thousands of corporate environments, built leadership, trained teams and impacted youth development in schools, and churches with high energy keynote speeches that activate winners. 

Shawn Harper is the bestselling author of The Winning Edge: 8 Principles That Will Bring Out the Winner in You! and founder/CEO of American Services and Protection, which has provided Ohio small and medium-sized businesses, corporations, municipalities, non profits, government agencies, colleges, and universities and organizations with a wide range of security solutions that focus on providing highly-trained professionals, tailored to the specifics of each job. 

Podcast Highlights

  • Who is Shawn Harper? 

For Shawn, it’s very hard to define who he was looking back from today’s perspective. We tend to gloss over the story in the process of becoming who we are. Shawn was plagued with setbacks and adversities in his youth, he was actually voted most likely to fail in school.

Adversity can make you or break you. Shawn’s school days were tough and early on he believed himself to be the loser that everyone else thought he was. It wasn’t until he changed his mindset from victim to victor that everything changed.

Never allow people to create your world because they will always create it too small. When Shawn made the decision to focus on his dream of playing in the NFL instead of listening to what other people thought he was capable of, nothing was the same. Once you change your focus, you change your life.

  • What was the transition like from playing football to the world of business?

In the case of the NFL, there is an established system in place for growth and development. For many people, when they leave that team and system to go do something else on their own the result is usually failure. Even superheroes have friends and support to help them achieve their goals. When athletes leave the game, they must build a team and find mentors to help them in the new arena. That was the secret to Shawn’s later success. 

It took years for Shawn to come to that realization. All success in life comes from people having a team around them. 

  • Playing To Win

We are created to win. Your perspective is everything in this regard. We are attracted to winning and nearly everything we do is geared towards winning. In third or fourth grade we are introduced to a different concept called success. Success teaches you production, but winning teaches you re-production. Successful business people are productive, but winners scale their business.

A lot of people get dismayed, depressed, and angry because they know they are successful but deep inside they know they are not winning. Winning has been hijacked by success.

The secret is to start moving, get out there and start connecting with people in whatever domain your win happens to be in. If your win is mentoring small business owners, start connecting with small business owners!

The way you motivate or encourage one person, is not how you will motivate or encourage another. You have to find your team’s pain points and motivations and learn how to speak to them as a leader, because everything comes down to people. 

  • Is where you are today something you could have envisioned?

Shawn had no idea he would be where he is today. There is a major difference between your image and your identity, but if you’re not careful you will buy into other people’s perception of your image instead of who you really are. Most of Shawn’s life he was caught up in everyone else’s image of himself. It wasn’t until he started building skill sets to define his identity that things changed.

If you can walk in and apply your concept of winning a little bit every day, then your perspective on who you are and what you manifest changes. All actions stem from thoughts, and all thoughts from belief systems. Your belief system is nestled in your self concept and you always manifest your self concept. Don’t let missed opportunities define you, stay focused on your goals.

  • Getting Past Failures

One of the greatest advantages athletes have is more than just experiencing failure on a common basis. It’s the team around them that keeps pushing them on and encouraging them. When we’re alone, we’re much more likely to hang up the cleats when we fail, but a team can provide the motivation we need to push through. Even leaders need encouragement from their team.

To have that person in your life that believes in you is vital, because without them life will chew you up and spit you up.

Reference: The Winning Edge: 8 Principles That Will Bring Out the Winner in You!, Shawn Harper

  • Shawn’s Takeaway

Three words haunt Shawn: Wish’a, Could’a, Should’a. You can not live life comfortably, because if you’re not careful your comfort zone will become your casket. You will get knocked down but failure is your friend. Learn from the failure and get back on the bike. The average millionaire has filed for bankruptcy three times, don’t give up.

Links:

How To Win Friends And Influence People

Shawnharper.org

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 25 2019

44mins

Play

Introducing The Instant Book Special Q&A

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Get unstuck and get one step closer to making short term rental real estate a real thing for you. Get answers to your questions so that you can keep moving forward towards your financial and business goals. 

Questions and Answers

  • We are entering into the slower winter season, what additional things can we give to our guests so they book with us over others? 

The first time experiencing a slow season can be a challenge. The caller has been leveraging his membership with his local BNI group which is a great place to start. Another potential avenue is to connect with the travel agent in the group and ask them about working together. It’s possible to start generating instant book specials that allows you to acquire a guest at your advertised rate while also creating a referral for the travel agent.

  • How would you pitch to a BNI group?

It takes a while to get any sort of response from a BNI group because their reputations on the line. As you build your relationships in that group you want to focus on creating a power team, where each individual has different strengths. 

Think about your centers of influence, like doctor’s offices that are members of the BNI group and start building those relationships.

  • How do you deal with a secured building?

There is a module is the Mastermind Course that members of Cashflow Diary can access that helps with this issue. The key question to ask is “if I order food, how does the food delivery guy get to the front door?”. Whatever the process is, that’s how your guest will access the unit.

  • How can we have properties in a state that we are not even in?

To have a property all you need is a lease, so it doesn’t matter where you are located. If you run the system properly, it only takes around an hour a day of your personal time to manage your business. If you have to do everything yourself, you don’t really have a business, you have a job. With the short term rental model the business is completely location independent. That being said, start where you live.

  • How would you offer the instant book special on the platform?

You would simply change up the title and description of your listing to describe what your extra offerings are. It’s also possible to set up an automatic sequence that connects the guest to your offering once they make a reservation and then sets up the connection with the travel agent as well.

  • How soon should I be negotiating for first right of refusal for a property?

Since the caller is willing to purchase the remainder of the units in a multifamily property, it should be very simple to ask the landlord for the first right of refusal if at some point in the future they consider selling. Now’s as good a time as any to start negotiating.

  • What are your feelings about incorporating in another state?

This is not legal advice, but since the person resides in California incorporating in another state may save them some costs. They should consult an attorney.

  • What are some ways to identify the city and zip codes near me so I will be profitable?

Rather than focusing on the money, think about the person you are going to serve. Profits can become a function of additional services regardless of zip code. Think about what your customer is coming to do, and then think about how you can be near where and what that is. That will tell you what area you should be looking at.

  • Do we have a master tech guru playbook?

Most of this information can be found in Module 3 of the Mastermind Course. Once you work through the info you may not even need the tech guru.

  • How can I find a runner to do some physical tasks?

You will have to go through a number of vendors before you find the right one to handle your physical operations. It’s unavoidable but necessary to do the work.

  • A question about a short term rental opportunity

The caller is considering an opportunity to create a short term rental in his parent’s basement. The caller should look up CPTED if they go this route to make sure the unit itself is more secure. He would also have to consider the noise levels and if that would be an issue. Trash will also become a challenge.

One of the caller’s concerns was the walk score of the unit, but that may not be an issue depending on who they want to serve and what those potential guests expect to do.

Between the two units, the only difference is the commitment, since he will be spending roughly the same amount of money. A good resource to check out is episode 320 of the Cashflow Diary podcast.

  • How do companies have multiple units in Denver when they only allow one primary resident?

These companies are much larger and usually VC funded, but they are running a very similar model. In the case of Denver, always read the ordinance because most of the ordinances will cover the where and the how. Very few of them completely restrict the model entirely. Short term real estate is often zoned differently and is not covered by the ordinances posing the issue. A minimum stay requirement can also help you deal the problem.

  • Do you think a short term rental with a walk score of 0 can work if it’s a 20 minute drive to most local attractions?

The short answer is yes. It’s not about the real estate, it’s about the experience on the piece of real estate. A walk score does not determine whether a property will work or not.

  • Can I get a cosigner to get an apartment and what percentage is good to return the favor? What happens if the landlord learns that the property is being used for a short term rental?

We always operate transparently, the landlord should already know what the intent is so there are no surprises. A cosigner is definitely an option. Check out the Mastermind Course to find out more and listen to episode 548 of the Cashflow Diary podcast.

  • I just started Airbnb three weeks ago and am having a challenge of not having any guests?

We don’t do Airbnb, we’re in the short term rentals business. Airbnb is one of the marketplaces that we use to market the business. In the case of not having guests, without knowing what system you’re running it’s hard to give specific advice. The first thing is to always start with who you want to serve and then building your business out from there. Check out cashflowdiary.com/star to learn more.

  • How much would you pay a virtual assistant and for how many hours a day?

Instead of just hiring a virtual assistant, you should think about what role you want them to play. In J’s case he has a team of managers and customer service agents that are available 24/7 that he sourced through Upwork.com.

Links:

cashflowdiary.com/action

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 21 2019

1hr 12mins

Play

How To Take Good Photos Of Your Short Term Rental Listing Q&A

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Taking the right photos can make or break your short term rental listing. In today’s Q&A episode of the podcast, we do a full review of a caller’s listing photos and everything their designer and photographer did right, and all the things they did wrong. We also cover why it’s so important to have your spouse on board with your business, as well as the pros and cons of bringing cleaners in house.

Questions and Answers

  • What is the best way to see if the HOA is okay to turn my home into a short term rental? 

The best way to figure this out is to read their Covenants, Conditions & Restrictions (CC&Rs). They will typically let you know what they like and don’t like, be aware they may not use the words “short term rental” but they will probably mention something along those lines.

  • A question about setting prices across multiple platforms

The caller currently has Price Labs connected to Lodgify, which is then connected to Booking.com and Airbnb. In order to change their prices between Booking.com and Airbnb, the caller needs to take Price Labs and connect it directly to Airbnb. Once that’s done, she can create a child listing in Airbnb.

  • I have some photo violations on my listing, what should I do?

It appears that the caller’s designer and photographer need to make some changes. Photos where the angle is not level or where the property appears dirty because of poor lighting are going to be major problems. Be aware that when your photographer uses HDR, it’s going to reveal lots of imperfections so it’s probably best to avoid it. 

If you’re not providing a laptop with your rental, don’t take photos with a laptop in it. People will make assumptions about that sort of thing. Same goes for sheets and towels of different colors. Avoid lights that don’t have a daylight balance for your photos. 

Short term rentals are a review based business, and reviews are primarily about setting the correct expectations at the beginning. Poor photos can end up costing you money, because what you photograph is what your guests will expect. If you deviate from that, that’s when you run into bad reviews. Be careful with the wording on your post as well.

  • What are your thoughts on the Airbnb custom URL link for listings?

It’s a band-aid at best. You want to have control and if you’re going to take the time to promote a listing, you should drive that traffic to your domain. That’s what is going to build your business long term. 

  • The importance of having your spouse on board

As entrepreneurs, we tend to believe that things will work out for us. It’s just how we’re wired. Having a spouse whose perspective you trust on your team will make a huge difference for you. If you’re spouse is not already on board, keep in mind that they are mainly concerned with whether or not they will be okay, especially at the beginning of a new business. 

This business is a team effort, just like raising a family. Make sure they know what contribution they are making, because without them, things would not be where they are. Go find your right hand person.

  • What calendar rules should we set for the holidays?

When it comes to the holidays, your calendar rules have a lot to do with your staff. Are they okay with working/do they celebrate those holidays? We don’t mind arrivals on a holiday, but we do block people from departing on a holiday, but that is a conversation you need to have with your staff well beforehand.

Minimum stays on the holiday will change depending on the holiday itself. Some people can get away with a seven or fourteen day minimum for holidays like Christmas.

  • Can we talk about a cleaning company versus having in house cleaners?

There are a number of things to consider before bringing cleaners in house. Being able to classify your cleaner as a contractor will be crucial to your cost structure. Part of your cleaning costs have nothing to do with cleaning, and everything to do with the organizational cost. Be very clear that you can keep them on as contractors.

The other issue is scheduling. With a company, the process is simple. They have a number of people available at a variety of times when you need them. If you can have someone internally take care of the scheduling and the size of your business justifies it, then it may make sense to bring cleaners in house. 

You are going to need a consistent pipeline of people to hire and train. Hospitality has an incredibly high turnover, so you need two systems in place if you go down this road. Specifically hiring and training. 

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 20 2019

1hr 31mins

Play

Al Williamson on the Secret Behind the Extended Stay Model

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Al Williamson is a professional engineer, full-time real estate investor and the author of several real estate books. He began investing in 1996. Al is best known for publicly documenting his quest to create enough secondary income streams to cover the 1st mortgage of his eight-unit apartment building (which he accomplished in September 2015). He is now trying to figure out how to maximize the cash flow of a small portfolio so it can generate enough income to replace a middle-class job. Al is a proud family man who now spends his day managing and expanding his corporate housing business in Sacramento, California. 

Podcast Highlights

  • Who is Al Williamson? 

Before everything that people know Al Williamson for today, he was training to become a professional gymnast. That was until he broke his arm on the high bar and realized that he was going down a risky path. He switched course and learned to be an engineer and started creating things.

It wasn’t until meeting his wife did he consider getting into real estate. He met a guy at a church picnic that turned him on to real estate investing and after reading everything he could about the subject at his local library Al realized that it was exactly what he was looking for.

Al Williamson and his new wife purchased a triplex and it eventually quadrupled in price. That early experience brought his wife on board with the whole idea and taught them plenty of valuable lessons. He leveraged that into his next purchase where he had a major focus on cleaning up the local neighborhood. It was a relationship with a local health center that later got Al into the short term rental space.

One of the easiest ways to get into the real estate game and put yourself into a profitable position quickly is by leveraging short term rentals.

  • Was it a challenge in making the short term rental model work in California?

Initially the numbers didn’t work out for Al because of maintenance costs. Owning property is a great way to build wealth but a bad way to generate income because something is always broken that needs to be replaced. You don’t get to keep the money because it has to go back into the property until that debt service is finished. In a lot of ways, short term rentals were the answer to Al’s problems.

There are a number of different ways that short term rentals solve the issue and there are tons of opportunities to increase your cash flow. By experimenting with one unit for short term rentals Al was able to generate the same net income as his three other units. The extended stay model is changing the way Al is structuring his business because the trend of people wanting to live in one place and work in another is taking off.

  • How do you market for long term guests?

Al has 14 different marketing strategies that he uses to bring in extended stay short term rental guests. A good indicator that your market can support the model is if there is an extended stay hotel in your area already. From there you need to get out from behind your computer and have a conversation with real people. Talking to the bartender at the hotel can yield some valuable info.

Extended Stay America is doubling down on the one month and two month guests. It’s a big business and major hospitality companies are beginning to recognize that.

If you’re working with Airbnb you’re going to have to put your listing together. The headline of that listing is very important and you can use that to call out the exact type of customer you are looking for. Write your headline to resonate with that person. You can also set your minimum stay requirement so Airbnb only shows your listing to people looking for an extended stay unit. Do things to separate yourself from the rest of the competition.

There is a growing need for extended stay units in America, it’s up to the housing entrepreneur to step up and answer the demand. The type of the property is less relevant than the type of customer you want to serve. Stay in your lane and serve people like you because you will have a better understanding of what they need and want. You will make the same net income. 

You can make your decisions based on gross income, which many people do, but only the net income really matters. You can make different decisions and save yourself a lot of time and energy and still make the same net income.

Most ordinances were written to slow down transient rentals and prevent them from competing with the existing hotel businesses, but they are not intended to affect month to month rentals. Month to month rentals are the cornerstone of affordable housing and they know it.

  • What are some differences you’ve seen between people running a less than 30 day stay business and a greater than 30 day stay?

The less than 30 days operators are looking at serving tourists and convention goers. For the people focusing on more than 30 days, they are thinking about other features that are important to a different crowd. Things like parking and laundry facilities. They also get the advantage of business travelers being more forgiving and easy going in general because they aren’t paying for the stay out of their own pockets.

  • What are some alternative ways to attract your target market?

Facebook has been very effective, having your own group is a good way to let people know what you’re offering. Al also has his own website which has been a good tool in attracting extended stay guests. When you’ve been in business for over a year, your reputation starts to do some good work as well.

Al has eight different categories of customers that he caters to: vacation renters, military housing, student housing, insurance housing, corporate rentals, people in between selling their homes, and international housing. There is also medical housing that’s broken down into three different types as well. You can take those categories and figure out which one you want to dominate and then start growing your funnel for that category.

  • How do you avoid having to evict or grant tenancy to someone?

Al hasn’t had to evict anyone because he mainly serves business travelers and they are just not going to stay. Even if they did, if they’re happy paying an elevated rent than what’s the problem? 

The main purpose of a lease agreement is to turn a transient into a tenant, which means the relationship is governed by a different set of laws. If you do that, then all the ordinances and laws around the typical short term rental transients no longer apply.

  • What are the special services you’re offering to increase your net income?

Al started off by offering a menu of cleaning services to guests but he found that they generally just wanted to be left alone. Do you it yourself options like a washer and dryer are much more important.

  • Al’s Takeaway

You need a coach to help you get the best out of you and overcome your subconscious. They will also help you avoid making the basic beginner mistakes. Al would be happy to coach you and be your booster rocket to help you launch your real estate business.

Links:

leadinglandlord.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 06 2019

58mins

Play

The AirBnB Way with Joseph Michelli

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Dr. Joseph Michelli, Ph.D., C.S.P., is an internationally sought-after speaker, author, and organizational consultant. Dr. Joseph Michelli is the author of numerous national bestsellers, including The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary, The New Gold Standard: 5 Leadership Principles for Creating a  

Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company, and the New York Times #1 bestseller Prescription for Excellence: Leadership Lessons for Creating a World Class Customer Experience from UCLA Health System. 

He was named as one of the Top 10 thought leaders in Customer Service by Global Gurus. His new book is The Airbnb Way: 5 Leadership Lessons for Igniting Growth through Loyalty, Community, and Belonging. Dr. Michelli is an opinion columnist for the CEOWORLD magazine.

Podcast Highlights

  • Who is Joseph Michelli? 

Joseph was a kid raised in a small town in Colorado and his parents imparted a key lesson to him when he was young. Namely, the responsibility of being raised in that family was that he would give more to the world than he took, and if he did the world would give more to him than he could ask for.

Being accepted into graduate school was quite an achievement for Joseph, no one else in his family had graduated from college at the time. He was pretty focused on his own success in his career for a while until he realized that it wasn’t really about him at all, it’s about telling the stories of the clients he worked with as a consultant. Ultimately, those experiences helped Joseph write books about other people to tell their stories.

All of the art of success is taking great principles and celebrating the victories of people you work with and people who are doing inspiring things in the world. The world is hungry for uplifting positive leadership and tools that enable them to experience their own greatness.

  • Inspiring Greatness

We are in a world where short term rentals have blown up and AirBnB is a point in that journey. They created a marketplace that unlocked incredible potential for millions of people and now they are on the same playing field as historical giants like Marriott.

  • What is hospitality?

Hospitality is taking the basics of service like being responsive, acting with urgency, get it right and make it right, and consistency, and then adding on the understanding of human needs that go beyond a transaction. It’s about an emotional experience where someone cared for and about me in a world that is often very lonely and strange.

The real estate itself is the table stakes of getting into the game. The experience is far more important and that’s the element that’s missing in the corporate way of doing things. In many ways the big hospitality companies are trying to emulate the more successful short term rental operations.

Solopreneurs will always have an edge over massive businesses because they’re more nimble and can provide a more personal touch. A smaller player can always be a more personal player than any large service provider.

  • AirBnB vs The Old Model

AirBnB looked for people with the expertise and sought them out as mentors. A lot of AirBnB’s success is in the practice of looking for mentors and seeking out information from people that know more.

Part of the notion of seeking insights from someone else is in seeking community. Hosts in AirBnB do more than offer a place to stay, they create jobs and opportunities in the community they operate in. One of the things that AirBnB has done really well is in advocating for short term rental rights.

Loyalty comes from helping guests feel something. AirBnB is selling belonging as part of the experience. If operators drive loyalty back to the platform that will keep driving revenue back to them.

The host community is on the whole very welcoming but there is always a subset of the population that wants to live out their prejudices. AirBnB has taken steps to correct that tendency and police the one off incidents. It’s a work in progress but the situation is getting better.

There is a need to be a responsible host so some level of regulation seems to be necessary. The issue is when regulations become overreaching and start dictating what people can do with their own property. There is an incredible amount of industry that is being created by the short term rental space. 

  • What are some potential pitfalls of the growth of the short term rental space?

Regulations are certainly a concern, a lot will depend on what happens when AirBnB goes public next year. Market share will be an issue they need to deal with in the near future as well. Scandal is another, some brands become big targets for entire industries. 

Reference: The Airbnb Way: 5 Leadership Lessons for Igniting Growth through Loyalty, Community, and Belonging, Joseph Michelli

  • Joseph’s Takeaway

First and foremost, you have to say you have something of value to create in the world and you are going to define that value clearly. It’s always a matter of understanding the market and then articulating the value that you bring to it. Business is not as complicated as we make it out to be. Just go and start and keep in mind the five dimensions of a successful business.

Links:

airbnbway.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 04 2019

35mins

Play

Innovation in Healthcare, Boon Is Changing The Game

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Ryan Vet is an innovative leader, entrepreneur and author. He has presented to audiences around the globe on four different continents on leadership, marketing and reaching your maximum potential. 

Ryan’s experiences range from start-ups to well-established multi-national, Fortune 500s. From starting his first business at age 14 to launching and successfully exiting start-ups, Ryan is a serial entrepreneur. Currently, Ryan serves as the CEO of Boon—an on-demand, temporary healthcare staffing platform (imagine Uber meets eHarmony meets healthcare staffing). He has been featured in countless publications for his entrepreneurial endeavors and has been inducted as an official member into the exclusive Forbes Communication Council.  In addition, Ryan hosts The Dental Experience Podcast. 

As an experiential marketing and branding consultant Ryan has worked companies from start-ups to iconic household brands. And in his spare time, he co-owns a series of craft beverage lounges called The Oak House. Ryan also sits as an advisory board member for a number of organizations including Elon University’s Doherty Center for Entrepreneurial Leadership 

Podcast Highlights

  • Who is Ryan Vet? 

Ryan has always loved creating and it’s been at the core of his career. His first real business was a lemonade stand where he learned how to diversify his products and captivate his audience with marketing. Somewhere in between his petting zoo and his lemonade stand, Ryan also developed a trading card business at the age of 11. It was a long journey from the lemonade stand to Boon.

When Ryan was younger, some local businesses realized that he had some talent with websites and basic graphic design and this actually lead to his first real business. He built a marketing company that served 200 clients in 25 different countries, and eventually this led to his first startup software company. Every startup yielded additional skills and connections that allowed Ryan to build his next business.

One such startup was in the medical and dental space. Ryan began building his platform and started speaking at dental conferences about patient experience. It was there that he saw a common need for staffing. About a year and a half ago he started researching how to provide temporary team members for the medical industry. During the research he found that the industry size of medical staffers was 16 times the size of Uber and Lyft combined. Boon is the system that Ryan came up with, it provides innovation in healthcare that allows hospitals and health care providers to connect directly with practitioners that are open and available.

  • Not Taking No For An Answer

Ryan’s always had a driving passion to get things done. If Ryan wanted something, his parents rarely told him no but they also didn’t get him things very often as well. Ryan had to earn the money to get the things he wanted and his parents would help him out.

If more people interpreted “no” as “not yet” or do it yourself, more products would come to market.

  • Why did you get into software?

At the advent of web based software, Ryan found his passion for enabling people to solve their problems using technology. He wanted to be able to use platforms and apps to solve people’s problems.

  • Digitizing vs. Innovating

Ryan’s first start up was straddling the line between digitization and innovation. He learned it’s relatively easy to create a process or app that streamlines something, but now Ryan is trying to stay on the side of innovation. Digitization is relatively easy and valuable but innovation is transformative. The iPhone changed the cell phone industry completely.

Ebay is an example of digitization, it’s basically an online garage sale. Amazon is an example of innovation in that they enable everyone to be a retail owner. Boon is striving to be more like Amazon.

One in ten healthcare providers are temporary workers, and there are plenty of issues with the traditional model. It takes a long time, it costs a lot of money, people are not getting paid fairly or access to benefits, patient care with temporary workers is not always at the forefront, and the people are not always matched well. Boon addresses all those issues.

  • Where does someone get the capital to develop software and what was different about this idea that gave you the confidence to start looking?

Ryan has funded a business nearly every way it’s possible to do so and it’s probably the hardest part about building the business. The rejection rate is high and it’s hard to push through, but anyone is capable of raising money if they are willing to get rejected 99 times before they hear that yes.

Practicing good is part of Boon’s cultural DNA and equity crowdfunding aligns with that goal. Prior to the Jobs Act the average person had no opportunity to invest in startups, but now there are opportunities for people to invest in startups for as little as $100. Boon went with a company called Wefunder to bring people into an equal opportunity investment.

There is a lot of value of having potentially hundreds of investors in your company. They offer a number of different perspectives and connections that you wouldn’t otherwise have access to. In Ryan’s experience, the majority of investors aren’t interested in reaching out and it’s more passive for them.

  • Innovation in Healthcare

Boon is constantly working on new products and services to offer, and that includes looking at different industries and verticals. It’s not limiting itself to innovation in healthcare. A new chapter of Boon is taking what they’ve already accomplished and expand that to any industry that is willing to have it. 

There have been a lot of conversations around the nature of the employment. Boon is predicated on fair pay and access to benefits, they are one of the few gig economy platforms that does. 

  • Ryan’s Takeaway

Being a leader and an entrepreneur in the business space is extremely lonely. You have to make decisions the best you can, and not everybody is going to be a fan. You need to surround yourself with three people. A forerunner, someone who has been where you want to go and can help you avoid the same mistakes. A running mate, the person you can run with that will help you make leaps at the same time by holding your hand and jumping with you. And finally, people who are a few steps behind you. When you starting mentoring and sharing what you’re doing with people who are just behind you, you synthesize your knowledge in a different way and make your advice actionable. When you mentor someone you become more insightful into your own journey.

Links:

doingboon.com

ryanvet.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Nov 01 2019

41mins

Play

Francis Greenburger on Risk, Real Estate, and Business

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Francis Greenburger is the legendary real estate developer who is Chairman & CEO of Time Equities and owner of the literary agency Sanford J. Greenburger Associates, which has represented noted authors such as Dan Brown, James Patterson, Nicholas Sparks, and Nelson DeMille. He is the founder & chairman of Art Omi (previously Omi International Arts Center) and The Greenburger Center for Social and Criminal Justice, and the bestselling author of Risk Game: Self-Portrait of an Entrepreneur. 

Podcast Highlights

  • Who is Francis Greenburger? 

Francis Greenburger grew up in New York City where his parents were upper class but his father as a solopreneur never really made a significant amount of money. The first thing that Francis was blessed with was the confidence of his parents in his ability to achieve his goals. That went together with his natural knack for business. He started working for his father after school when he was 12 years old. His innate qualities gave him the early characteristics and motivations to be an entrepreneur.

One of the things that Francis has said is that if you don’t like risk, you shouldn’t be an entrepreneur. For Francis, risk is just part of the gig.

  • Do you see any parallels between cell phones and digital communication and the advent of television?

The evolution of digital communication has changed the nature of communication. It’s also made it more personal with social media and email, there is a lot of interpersonal communication happening now. Humans have a basic need to communicate and now there are more ways than ever.

  • Parental Confidence

There are certainly people who have parents who are not encouraging or present. Francis recalls a comment made during a tennis match, where two different players of equal skill are compared, and the observation was that the deciding factor will be self confidence. Having parents that believe in you alongside his mentors empowered Francis and gave him the confidence to face the challenges that all entrepreneurs have to face.

The buy in that someone gets from mentors they respect can be very empowering and confidence building, even when parents haven’t provided that.

  • What do you consider risky?

Francis uses the term “intelligent risk” to describe the process of evaluating risks. Intelligent risk is not a gamble, it’s a calculated and measured action with research and analysis behind it. Francis has a theory that if you’re going into a generic marketplace where you are just offering more of the same, it’s very hard as an entrepreneur to compete on price and that’s all you’re really left with. Look for markets that aren’t being addressed and try to find solutions to meet those unmet needs.

Imagine what you could accomplish if you weren’t afraid to fail.

  • What would you say are unaddressed needs in the real estate space?

Under occupied office buildings are one such issue. Sometimes an office maybe be under occupied because of a reputation problem from the past but it may have the features that allow you to lower your cost basis, which means you can also rent out the space for less. These can be the ingredients that allow you to be competitive in the market.

  • Why did you go into real estate?

Francis has a memory of walking down 5th Avenue in New York City and realized that he had an innate sense of architecture. He got into the real estate as a byproduct of his book business. Francis had rented an office that was too big for him and managed to sublet half of it at double the rent he was paying. 

Francis was involved in his father’s literary business at the same time as he was building his real estate business. For about 10 years Francis split his time between the two ventures. Francis typically works 12 to 13 hours a day which is his natural mode so that probably gave him an edge in business. For Francis, hard work is part of the formula for success.

  • Do individuals starting out in real estate have it easier today or harder?

Francis’s sense is that the business has become more complicated over time. You need to have a lot more expertise to make real estate work which is why it’s really a team sport. To do you it professionally you need to be part of a group that has that expertise.

If you’re young and you go to work for a real estate company that can help you out because in a way you inherit some of their credibility.

  • Is there something people should do differently if they are just starting out in their career?

If you really want to advance your career you have to spend time in a sophisticated real estate environment in order to learn the expertise that gets deployed on the complex problems in the business. Once you have that knowledge you’re much better equipped to go out on your own.

Francis’s company tries to be a platform for talented entrepreneurs to set up their own business.

  • How difficult was it to put all of your knowledge into Risk Game?

Initially Francis believed that he would have to write four different books. Lucky for him he met a talented writer that put everything together into a cohesive narrative and a solid book.

Enlisting talented help is a common thread in Francis’s businesses. Bringing in people with expertise and experience enrich the business because in combination we are stronger than on our own.

  • Have you ever had a partnership that failed and how did you deal with it?

When undertaking business ventures you’re always going to encounter a certain amount of failure but you can’t be discouraged by it. There are people and business partners who will disappoint you. In Francis’s case, he has benefited much more than he has been upset by such failures.

If you’re not failing in 10% to 20% of your ventures, you’re not taking enough risk. You have to be able to tolerate risk and accept failure, learn from it, and move on.

Reference: Risk Game: Self-Portrait of an Entrepreneur, Francis Greenburger

  • Francis’s Takeaway

Most people who are entrepreneurs have dreams of one sort or another. Think about your best idea and try to put it into action. When obstacles have to be overcome, devise strategies to overcome them. In real estate, look at a number of properties not just one. Buy it right, it’s the only chance you’ll get. There are always challenges but for every roadblock there is a strategy for success to get past it.

Links:

Risk Game: Self-Portrait of an Entrepreneur on Amazon

timeequities.com

Omi International Arts Center

Greenburger Center for Criminal Justice

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 30 2019

43mins

Play

Self Directed Retirement Accounts with Rocket Dollar

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Dan Kryzanowski is an active real estate investor and fundraiser, leveraging Self-Directed accounts - SDIRA and Solo 401(k) - to create a diversified real estate portfolio yielding double-digit returns. He specializes in self-storage investments, multi-family and hard money residential property loans. Dan has personally raised millions of dollars from family offices and individuals, and empowered his partners to raise seven-figures on multiple occasions. 

Dan serves as Executive Vice President at Rocket Dollar, unlocking the $10T pool of untapped retirement assets for the real estate community. He is also a Capital Partner for Pinnacle Storage Properties and Corporate Board President for Hugh O'Brian Youth Central Texas. Dan, a Wharton graduate, previously led commercial real estate initiatives for GE Capital in Mexico and South America. 

Podcast Highlights

  • Who is Dan Kryzanowski? 

Dan attributes his business success to his magic afro and his early basketball success. Dan had a very blessed life for his first 30 years, he followed what would be considered a pretty normal path that most people in his generation would follow, right up until the crash of 2008. That made him rethink things a bit and Dan found that he wasn’t particularly interested in working for General Electric for the next 30 years of his life. He and his wife moved back to Texas and started looking at alternative investment.

There were a few signs that GE wasn’t going to be a great place to spend the rest of his career at. Ultimately it was a personal decision to change the path from following everyone else and being led by fear or having the confidence to do things on his own.

  • Why Real Estate and self directed retirement accounts?

While working his traditional career Dan had always been interested in things he could do with his 401(k). When he had a fateful conversation with a guy that flipped houses at a wedding, Dan was exposed to the world of self directed retirement accounts.

Once he realized that there were a number of benefits using your retirement funds to invest in real estate, it all just made sense. Instead of making 2%-3% with a traditional bond or fund, he can earn double digit returns working with someone he trusts and can look at the real estate and see the asset. Using self directed retirement account was the key that unlocked everything.

The idea has been around since the 70’s. Self directed retirement accounts are where you take full control of where your retirement dollars go. There are an infinite number of investments you can access and there are no fees or early withdrawal penalties.

Rocket Dollar has completely eliminated the friction involved in using self directed retirement accounts to invest. Dan’s company is very focused on education and informing people the options that are available to them. You have full control of your money at all times for a low monthly fee.

If you’re self employed, you are eligible for the Solo 401(k). Not only can you contribute ten times as much as an IRA, you also get full checkbook control by default. 

  • What if my HR department said my 401(k) is already self directed?

By one definition your 401(k) at work is self directed, but it wouldn’t count as Self Directed. You get a handful of choices in what you invest in but you don’t have true freedom in where your money goes. You won’t be able to invest in a private real estate deal or something exotic like cryptocurrency. 

People want to be on the same footing from an education standpoint. They want to know what the rules and opportunities are, which is what Rocket Dollar is aiming to provide.

It’s been a rule of thumb that you can’t touch your company’s 401(k) until you are 59 and a half and sadly there isn’t a real responsibility on the company to offer all the options. Most middle age high earners have a few IRA’s or 401(k)’s from past employers hanging around, and once they are made aware of this they can roll that money into a self directed retirement account and put that money into real estate.

  • What are some of the creative places that people want to put their money?

Bars and restaurants are common passion projects for people to invest in. Dan has had some good experiences with female entrepreneurs doing some very interesting things in the market. Diversifying into different kinds of investments like cryptocurrency and self storage are becoming more common as well.

Rocket Dollar is not a match maker, they are a facilitator. They are focused on giving people the opportunity and knowledge to invest in a variety of things. Simplifying the transactions is in a lot of ways exactly what the marketplace needs.

  • Is there a specific focus at Rocket Dollar to help syndicators raise money?

Yes, Rocket Dollar will draw attention to possible investments like syndications in order to make it easier for people to raise the funds they need. They are very close to making it as easy as transferring funds quickly and easily using your mobile phone.

  • Dan’s Takeaway

Go to Rocketdollar.com/learn and start learning. Most people will be able to self educate and get 90% of the way there even if they are completely unfamiliar. Once you do that, reach out to the sales team and talk with us about how we can help. Self directed retirement accounts aren’t going anywhere and there are a lot of opportunities available for people who take action.

Links:

rocketdollar.com/cashflowdiary

dan@rocketdollar.com

Get a $100 off your Rocket Dollar account with the code Cashflowdiary19

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 28 2019

44mins

Play

October 2019 Q & A 8: Negotiations, Slow Seasons, and Protecting Yourself

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Questions and Answers

  • I have a person that wants to book through February to November but I’ve already got someone with a reservation in the middle of that time. Do I offer the other guest to switch to another short term rental unit to accommodate the person who wants to stay longer?

This can be pretty common with new short term rental units or you are new to operating. When you put up a new listing it often gets promoted and for people looking for longer stays there often aren’t a lot of options. You should offer the current reservation the option to move to another short term rental unit, even if you don’t have another unit in that particular area. 

The ideal situation would be to get all the days booked with both individuals while also getting the money upfront. The revenue from the long term reservation can actually be used to acquire another unit for the shorter reservation if necessary. There are also a number of incentives you can offer to close the deal.

  • A major cancellation issue with AirBnB

J has had a similar situation occur with a guest that said they were going to cancel but didn’t. We continually sent the person messages as well as keeping in communication with AirBnB. In both cases we were paid in full for the days that were stuck in limbo but only because we were being hyper diligent about following up and making sure the reservation was actually cancelled.

If you’re at the 70 bedroom stage like this caller is in, you really shouldn’t be involved in this sort of issue. Your staff should be able to handle everything. Your business should also have an established system for making sure your guests actually arrive for their reservations.

For the caller, they need to have a customer experience manager that should be able to handle all aspects of this sort of issue. When you encounter something new, create an SOP (standard operating procedure).

  • My fear of not being sure of where to begin is holding me back. What should I start with first?

All of our short term rental  mastermind students get a six hour kickstart session with J specifically to address this problem. Outside of that, the very first question you have to answer is “Who do I want to serve?”. Once you answer that, you can figure everything else out.

  • What if I can’t find a management company for one condo that’s out of town?

Remote management is challenging. If you are going to do it remotely you must have a cash management system in place to make sure that no money gets released without a verification that the work has actually been done. Find someone who can be your eyes and ears on a job site.

If you can find an actual landlord in the area to assist you that has experience with rehabs that would be ideal. You can find them through the local real estate investors association or meetup.com.

  • If a guest leaves a review but you haven’t you reviewed them yet, can people still see it?

Nope, not until either you review them or 14 days pass.

  • Are the metrics you used in the SmartBnB training available to the public?

SmartBnB is great for their ability to see data and metrics and then use that to drive higher revenue. It’s not currently available to the public.

  • The slow season is coming, any updates on refreshing our short term rental listing to keep a higher viewing rate?

Depending on where you are geographically, the travel season is changing which means you need to adjust to the market. That may mean adjusting your discount curve. That doesn’t mean that you have to sacrifice profit, just that you need to think about new lines of revenue. Those are things that everyone should have in place in case of an occupancy challenge.

  • How do we suggest we deal with when a guest needs an insurance payment in order to make a booking?

Never let a guest into a unit prior to getting paid. The answer is to get paid upfront, the guest will figure out what they need to do to make that happen.

  • How often should I be checking pricing and how often should I be manually adjusting it?

In a 30 day market checking daily isn’t really necessary. It’s more about making sure you are priced appropriately from the beginning and understanding the platform you are on. 

  • Where can I find info on hiring VA’s, outsourcing, managing, and fee collection?

Even though the caller is already experienced, they should try to approach things as a beginner. You need to start with the foundation if you want to build a proper business. Even at short term rental 8 units they probably don’t need VA’s yet if they’ve set up the right systems in place.

  • What are some tips to make it through the upcoming slow season?

Assuming you’re in a somewhat temperate client, when it comes to slow season you need to understand that your expectation of where your revenue comes from needs to be adjusted. Go to the formula Leads x Customers x Margin x Frequency = Growth Potential, which of those can be improved upon? One of them will be a clue as to what you need to build to deal with the slow season.

  • Can you take advantage of cost segregation when doing night rental arbitration? Are there tax advantages to controlling a property versus owning it?

Much of the furnishing can become a direct write off. For some students when they are starting off, it makes more sense to lease the furniture and preserve their capital. One of the major downsides to the whole operation is it will create a large cash flow, and if you don’t offset that cashflow with some sort of investment you will just end up paying Uncle Sam.

  • What factors matter in the negotiation process for additional units?

It’s often that landlords that you’re working with will begin to approach you about additional units because you solve their vacancy problem. You need to be aware of the problems that you are taking off their table for them. If you want to eventually own the property, this is when you should start leveraging what you’re doing for them to set that in motion. 

  • Do I setup Lodgify or Wheelhouse so I can set up my own website for direct bookings?

We use Lodgify for just that.

  • What are the boundaries for the landlord showing up to the unit unannounced?

There should never be a situation where your landlord shows up to the unit unannounced outside of a fire or some other type of major issue.

  • Is okay to take a lease in your name and not your company name?

Doing business in your personal name is not something that I would recommend, especially when you’re working a public facing business because the liability is massive. You never know when something random happens and will put you on the hook. Even if you’re not guilty, you will still have to pay for the defence. Insurance is essentially prepaid legal defense.

You should protect the value that you are creating in the marketplace.

Links:

cashflowdiarypodcast.com

Cashflowdiary.com/teachme

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 25 2019

1hr 25mins

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October 2019 Q & A #7: Bed Bugs, Insurance, and Bad Reviews

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Questions and Answers

  • How do I improve my rankings so that I can be viewed more frequently and more often? Also do you have any tips on attracting last minute guests? 

The first step is to run a Market report using SmartBnB on the caller’s location. Start making incremental changes to the pricing specifically for the available dates coming up in the future. The market report will reveal the low, high, median, and average prices for any comparable listings, you should be pricing your listing relative to the market for your available weekends.

You should also adjust for seasonality. The change from August to September can be quite drastic. Since the optimal booking window for the caller is 25 days, it may make sense to start experimenting with the discount curve beyond 14 days.

Being on page 11 of the rankings is basically the same as not being present at all. Look at your title and thumbnail as possible places to improve alongside pricing.

  • My closing was put off because of the hurricane, can I go ahead and list the property but not go live?

There is a window of time when your listing is considered new and it gets a boost in exposure and rankings. You should maximize the SEO bonus when it’s available. We also have a number of students that have optimized their locations as possible shelters from bad weather or natural disasters.

If you have a property in an area that is exposed to bad weather, a good tip is to have a generator so that your property doesn’t lose electricity when everything else does.

  • Any updates regarding automation getting agreements signed?

J had to put this project on the backburner due to some issues scaling out the customer service team. The goal is to have two way communication through as many channels as possible. Once we’ve worked through that we’ll be making more steps towards automation.

  • What do I do about bed bugs?

Ideally when you are building a business you want to build in systems so that your amount of time working in the business instead of on the business is as minimal as possible. Hopefully you never experience bed bugs but having systems in place will definitely help.

We have only seen one instance of bed bugs in all the history of tenants that have been our guests. It occurred in a two bedroom unit where the guest reported the bed bugs to us. We learned that you should hire the best pest control company you can right away, even if it’s delayed by a day or two. It’s better to resolve this properly, even if it costs you some revenue.

Before a unit is sprayed, cleaners should strip the beds, vacuum and clean the unit, and while doing it they should be wearing gloves and masks. We originally thought we would have to throw out all the linens in the unit, but that wasn’t necessary. Just bag the linens up and mark them as contaminated, the cleaners will wash them in extreme heat in order to eliminate the infestation.

Sadly there is no guaranteed fix for bed bugs. In order to get a heat treatment on the unit we had to hire a company that can drain the fire sprinkler system. The outlets should also be dusted in the adjacent units because bed bugs move quickly and get into the walls as well.

Another major lesson is to notify your insurance company immediately, and if possible you should be insured specifically in the event of bed bugs.

All told, this one problem took between 40 and 50 hours to resolve. There is a lot of coordination involved with a number of different people. Students now have access to the process we’ve put together to handle this situation.

If we include lost revenue, the total cost of the whole episode was around $15,000. Now that there is a process in place to handle things, the cost would probably be around $7,000 to $8,000. Even if you have insurance, this isn’t something that you’re going to be able to wait for them to pay for things. You will need the funds in place to take care of things in the meantime.

  • Did the insurance reimburse everything?

No, you will be reimbursed charges related to cleaning. One of the mistakes we made was not separating our linens, this meant that we had to pay for extra cleaning to make sure we didn’t contaminate other people’s linens. It’s also very possible that you would have to replace furniture as well, we got lucky in that case.

  • How do you recover from bad reviews because of an instance like bed bugs?

When you’re trying to recover from bad reviews, and there are a number of situations that can lead to one, one of the ways is to accelerate the frequency with which you can generate a review. The best way to do that is to reduce the maximum length of stay. This will generate a number of shorter stays and more frequent reviews, which will push down bad reviews on your listing.

  • Is there a way to create a market report on a listing that I don’t currently manage so that I can start to understand the owner might be having difficulty?

Most people in the short term rental space don’t actually have a grasp on what it takes to run the business well. Right now you don’t have to be good, you just have to be present. Over time, as this marketplace matures you’re going to have to be good and the ones that are will build the brand that they want to and get the kinds of customers they deserve.

If you want to be able to run a report on a property that you do not control or manage AirDNA is your best bet. You should be looking for trend data for the particular market you’re looking into and compare the listing to the surrounding area. If performance is poor on the property, it may be as simple as being on the wrong platform.

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

cashflowdiary.com/affiliate

airdna.co

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 23 2019

1hr 9mins

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October 2019 Q & A 6: Why Are My Short Term Rental Bookings Declining?

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Questions and Answers

  • Our short term rental bookings have been plummeting recently and I’m not sure why. Am I discounting too early or too slow based on data? 

You have to decide how far out in advance you want to be comfortable with for your bookings. To really know what’s going on you need to get the right data in front of you. In the case of the caller’s short term rental unit, the average number of guests is 4.1 with a 7 day booking window. Since all the data came from the one platform, one solution may be to get on additional platforms that will increase the booking window.

If there is a conversion rate decline, the question becomes “what changed?”. If customer preference is what has changed, that may mean you have to adjust the way you are describing the rental and modify who you are trying to attract.

It’s important to look at last year’s data as well so you can compare. If your conversion rate is down to 56% from 70% in Q4, maybe that’s what you should expect based on historical data. If you have the same number of leads, it may be something to do with your listing, or your communication, or your response time that is affecting your conversions.

  • For a house, do you put a camera in the backyard?

When it comes down to an expectation that a space is going to be private you can run into issues. You can put a camera in the backyard but you should make sure it’s looking at the backyard and not into the house. If you do do it, make sure you disclose it to your short term rental tenants. 

If there’s a pool in the backyard, you have to be especially careful. You are probably concerned about the number of people coming into the unit at that point and if that’s the case there are other solutions to that problem. You could use devices that detect cell signals or wifi connections that would indicate the number of people present.

Links:

cashflowdiarypodcast.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 21 2019

19mins

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October 2019 Q & A #5: How Long Does It Take To Get Started In Short Term Rentals

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Questions and Answers

  • Does AirBnB work the same globally? 

The idea is the same, but some of the functions will be different. For example, payment systems will be different depending on the country you live in. Same with cleaning services. The basic idea of offering someone a place to stay in exchange for a fee is the same.

  • I have a landlord concerned with a privacy issue regarding a camera on the door, what should I do?

Since the unit already has cameras pointed at the hall in the building, there shouldn’t be any issues. The important legal idea is where there is an expectation of privacy you can’t place a camera, but that doesn’t apply in this case. You would just be adding what is essentially another security camera to a hall that already has them.

From a privacy standpoint, having a doorbell camera pointed at another unit’s door can be a problem since the camera could potentially see into the other unit when the door is open. This could lead to complaints from the other tenant which is why J tries to avoid those kinds of units. If you can control both sides of the hallway, that removes the issue so that’s a good strategy if you can swing it.

  • How long does it take to get started in short term rentals?

This is a hard question to answer because of all the variables involved. Some markets are more difficult than others, but in general for most people it won’t take too long to get started. Cashflow Diary students get a big advantage because they get the knowledge to select the best properties for their business, so they can earn the most money and continue growing.

Having had the privilege of teaching a variety of real estate strategies, short term rentals is the one that has allowed people to learn the most the fastest and get their business up in running very quickly.

It is possible to go from lease signing to operation in 72 hours if you have the systems in place.

  • Can you talk about your process for finding and training cleaners?

Finding the right cleaners is a big piece of the puzzle. Ideally you don’t go looking for cleaners, you make them find you. One way to find a cleaner is to make a reservation at a short term rental you don’t own, and when the check out happens just wait until the cleaner shows up. Another method is to join your local BNI, because that organization is referral based and a cleaner is likely to already be vetted by the person referring them. Chances are you will have to work with a few different cleaning companies before you find one you can rely on.

  • How do you recommend I leverage the leads I’m getting from a real estate broker with other local businesses?

It’s a great idea to try to leverage your existing leads with other local businesses, but it really depends on the size of your business. The simplest way is to just go into the store and tell them who you are and what you do.

If you can show them that you can help lower their customer acquisition cost, you’re set.

  • When is a good time to start a new unit?

It’s always a good time to start a new unit. When you start a unit into the low season you are building up a profile so that in the high season you will have enough reviews to maximize your profits in the high season. The flip side is that starting the unit in the high season your transition to the low season won’t be as low.

It’s more important to start a unit around the 22nd to the 25th of the month than the time of year. Keep in mind that certain holidays can actually make certain items harder to find when starting a new unit as well.

  • What is the best way to sync our calendar so we don’t have to manually block them out on different websites?

The systems you have to have on board changes as you grow. The reason you’re having trouble with Home Away is that you’re going from one unit to five. Ultimately you want to have Lodgify working to avoid manual bookings, but the big issue here is trying to get so many units going so quickly while also building the systems you need at the same time.

  • What are your thoughts about a unit I have in the mountains where there are definite slow seasons?

Don’t listen to someone who doesn’t have any experience with short term rentals tell you what’s going to work with short term rentals. You may not have to worry about the 30 day rental restriction in that area of Colorado. J recommends for the caller to narrow down her customers to three target markets, not just the obvious ones like ski enthusiasts.

There is a good chance she will be able to recoup her down season by expanding her target market and appealing to a broader swath of people.

Side note: It doesn’t matter how much you put on paper or how prepared you think you are, you aren’t. You have to get comfortable being uncomfortable and roll with the learning process. You will eventually develop a different response to the fear of action that will allow you to build the business you are dreaming of.

  • How soon should you start your own corporation? What about credit cards?

As a general rule of thumb, it’s a good idea to have your first unit in the name of some entity. Whatever that is, consult with your attorney.

If you have a credit card where you earn points, take advantage of it. Depending on the retailer it may make more sense to act as a consumer rather than a business.

  • I used to get a number of bookings from Booking.com but now I’m not getting any, is the drop in bookings unique to my area?

Before you blame a platform you need to compare your performance year over year. Remember the formula: Leads x Customers x Margin x Frequency = Growth Potential. You need to know that info in order to diagnose your issue. 

  • How often do you use air purifiers in your units?

We use them as frequently as our cleaning crew suggests it needs to be done.

  • What is the best way to market and position this home?

Answer the question of who you want to serve first. Once you answer that, the rest becomes clear. Before choosing a path, do your due diligence and understand your customer.

  • I have a studio on my primary residence that I’m thinking about turning into a short term rental, should I?

Being in Hawaii, someone is always going to want someplace to stay but when the unit is on your primary residence it is a completely different system. J always wants to avoid the situation where the tenant knows that he’s the landlord, and that’s pretty much impossible if the unit is on or in your primary residence.

Episode 120 of the Cashflow Diary podcast is a good resource if you do want to go this route. If you’re already comfortable with the situation then go for it.

  • Do you recommend operating across the border?

The biggest challenges working across the border are the legal system and language barriers. If you understand those then it shouldn’t be an issue.

  • How would you approach a private money lender when you are just starting up?

Refer to episode 548 of the Cashflow Diary podcast to learn about the Slicing Pie model of funding your business.

  • What are your thoughts on obtaining a real estate license?

You don’t need a license to operate a short term rental business. It depends on whether you are going to use the license to sell homes, if that’s what you want to do then sure.

Links:

cashflowdiarypodcast.com

cashflowdiary.com/star

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 18 2019

1hr 32mins

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October 2019 Q & A #4: Short Term Rental Pricing and Becoming More Efficient

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Questions and Answers

  • We currently use two different pricing platforms. If I’m using a tool like Price Labs, how do I set it up so the price is good for relocation companies and change it so I’m netting all that I can from the other booking websites? 

Since direct bookings to relocation companies yields the highest net profit, the ideal set up would be to have Price Labs reflect that in the Lowest price. You should also have an anchor for the Base price.

In general, because of the way things are set up and connected this way, price for your highest possible outcome. If someone books at that price, that’s great but that’s not the end goal. You want every customer to feel unique and special, and you accomplish this by giving them a personal discount code or adjusting your mark down so they see a price closer to the natural price. This way you will always be in a position to make the adjuster look good.

  • Is Hawaii completely out for nightly short term rentals?

No, we have active students in Hawaii right now who are doing quite well. If you desire to be an entrepreneur, you are making decisions where the outcomes are completely uncertain. The environment we all play in is uncertain and every business has regulations and changes, it’s unavoidable.

Some people will quit, some will keep going, and some will waffle back and forth and get bought out. At the end of the day, entrepreneurs adjust.

  • How do you price listings that require a minimum 30 day stay? What if there is a 15 day gap, do you keep a 3 month booking window?

Pricing is the most complicated aspect of a short term rental business. There are too many pieces to give a quick answer because you need to know all the variables first. The key is to always price it profitably, whatever that means for you. It comes down to a pricing strategy that accomplishes your goals and who you are trying to serve.

  • Do you have any tips or tricks to attract small apartment owners and property managers without actually driving around the neighborhood?

Loopnet.com is a good tool for researching an area. You can use the site to look for owners and operators that have the most listings and use that info to get on the phone and talk to them about the listings that are not yet on the site. Even if that particular realtor has nothing in their inventory that you want to purchase, they can help you get in touch with the top three property managers of that class of real estate. Once you get them on the phone, you do the same thing and find out if they have problems you can solve.

  • Have you ever marketed to landlords?

J avoids direct marketing at all costs. It has always proven to be too expensive and take too long, that doesn’t mean it doesn’t work, just that he doesn’t like it.

  • How has your faith affected your business outlook?

J’s faith has directly affected his business outlook, it’s a major reason he’s even in business. To whom much has been given, much is expected. If you’ve been given any talent, the expectation is that you will at least double it. It doesn’t matter that you succeed, just that you attempt it.

  • Can you offer daily/nightly rentals between monthly rentals?

If you’re in a 30 day market, probably not. However, if you’re not with someone other minimum day restriction there shouldn’t be any problem.

  • Small tasks can eat up all your time

Small tasks that don’t feel like they take up a lot of time can still add up when you are doing 15 of them every single day. It will also occupy your mental space. As an entrepreneur you have to understand what the highest and best use of your time. You have a responsibility to those you employ and serve, and you have to protect that opportunity. Often that means delegating.

  • Orlando short term rental regulations are very tight. Do you have any suggestions?

J has a very similar situation in Anaheim, the simplest solution is to just go to the city next door. It’s a bit further but as the situation continues that’s just where the marketplace is. In theory, you could also build an owner occupied business. Episode 320 of the Cashflow Diary Podcast is a good resource for that.

  • How do you handle fobs to enter gated communities?

Any time you have key fobs or gate remotes, you’re going to put those items inside the unit assuming that the answer to the following question is something that’s acceptable to you. When someone orders pizza, how does the order delivery person get to the front door? If they have a process for that, that’s what your guest is going to have to do the first time. Once that’s done, everything is inside the unit. The answer you don’t want to hear is that you have to go down to meet them.

In that case you have to get creative so guests can come get their keys.

  • I’m looking at acquiring my neighbors home for a short term rental but there is a 30 day minimum in the city I live in and I’m used to working nightly rates. Should I do this?

This is a completely different marketing system. I would stay close to what you’ve already built in the night rentals business because the amount of energy it’s going to take to build a brand new system to get the new unit going is probably too much, at least until your existing business is self sufficient. Double down on what you’ve already done.

If you want to keep it as a long term rental, that’s fine since it’s close to what you’re already working on and doesn’t require the same level of setup.

  • How do you feel about marketing towards stranded travelers?

If you can become the preferred vendor for the airline for people who are stranded, it can be a good idea. It might be pretty hit or miss though, since your units should probably be occupied in the times where someone stranded would need them.

  • Is there a way to intercept inquiries on AirBnB faster and answer them more effectively with SmartBnB?

Inside the messaging component of SmartBnB you can pre program answers to common questions and train it to recognize questions that it doesn’t already recognize. Chances are the questions you’ve received are fairly similar and can be pre programed to deal with any future inquiries.

  • Should I be out talking to everyone, even potential competitors?

There are so many people to serve, it’s tough for there to be any real competition. If anything realtors and property managers can be great lead sources, same with local government officials.

  • Do you suggest shipping container spaces for a short term rental business?

Shipping containers are a unique use case. They can be converted into qualified places to stay if you are the person that wants to serve the customer that wants that unique experience. The question is do you believe enough in the idea, then go for it and create that experience.

  • Would you suggest doing more one off AirBnB rentals?

It’s not about the real estate, it’s about the experience at the piece of real estate. If you want to do tree house experiences, go for it, but that’s not really the model we advocate.

  • How do I setup a corporate lease when my LLC is so new?

You’re starting with an incorrect assumption. What you don’t know can hurt you because it will cost you opportunities. Many students have gotten started without an LLC, there are other solutions so be careful of claiming you know something to be the case, it may just be holding you back.

  • What are some ways to generate more leads?

The fastest way to create more relationships is to leverage other people’s relationships that have already been created. Go join a BNI, talk to people at doctor’s offices, go to event planners and conferences.

  • How would you go about doing background checks?

I would want to know why they are asking about background checks. It’s usually about understanding your security procedures and the belief that you don’t do those things already. It’s your job to help them understand that and satisfy what they actually want.

  • Is there a way to automate changing a Friday booking to a one night stay if Saturday and Sunday are already booked?

If you have an orphan Friday, there is a setting within Price Labs that can be used for this case. Change the minimum stay for last night bookings to 1 and it should take care of it.

Links:

cashflowdiarypodcast.com

loopnet.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 16 2019

1hr 7mins

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October 2019 Q & A #3: Get More Faster

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Questions and Answers

  • How many units do you have and how long have you been in the business? 

J currently has 37 units and has been in the process of getting to this point for nearly 15 years. He had to find a way to make money without trading time for dollars and real estate was the path he took.

  • How do I have my prices on Lodgify use AirBnB and Booking.com but ignore the prices on Home Away?

If you’re on the basic plan for Lodgify, it automatically ignores Home Away. J currently still uses the basic plan since the professional plan is still in beta. If you have multiple accounts, you will need to work directly with them to avoid certain errors.

  • How should we structure a deal for a 100 units if the other party wants to sell the property in five years?

It’s all down to the contract and how the services are signed for. To make things easier, use two separate entities, one for the property and one for the services involved.

  • How do we add a 0 to our income?

We will never out earn our personal growth. The image you have of yourself is part of the challenge. Part of the process in business is personal growth and consuming information with the intent of being a better person in all areas of life. Personal growth doesn’t just happen.

Any idea given to you has a certain level of value to you. What you need to do to make sure you becoming better over time is to not just collect ideas, but also implement them. The majority of us don’t realize what might be in the way that is holding us back from the results we want.

You have to set aside time dedicated to self improvement and find those blind spots. When you’re ready to take on that task, you will find the information that will move you further along the road. It’s not a three day process, it will take time to get there but it can be done.

  • Is the sofa bed you have in all your units custom made?

The sofa bed is custom made each and every time. One size does not fit all in our market.

  • A question about Ring camera and AutoLock

Anytime we talk about a system, it’s about efficiency and a single point of failure. You can save money buying an individual system, but you will pay with additional power requirements or lack of redundancies. Especially once you start to scale, this is why we’ve put together packages that help with that.

  • AirDNA gives my area a B+, does that rating bear any weight?

It all depends on how the data was collected, you won’t know for sure until after operating in that area for about 12 months. Scott and his team have a ton of work to improve the service, right now J puts more weight in their trend data instead of absolute numbers.

  • I want to run a short term rental business with my parents basement, should I speak to the HOA first or just do it?

We try to run everything above board and documented. Typically HOA’s are something we avoid but that doesn’t mean you can’t work with them. Get a copy of the CC&R’s so you can find out exactly what the HOA says about short term rentals. It can mean having to only run a 30 day minimum model or having a conversation with the HOA if you want to do something different. 

Make sure who you are looking to serve is in alignment with the property type you are looking to work with.

  • I’m not sure about money in my situation, what would you do to find financing and get started as quickly as possible?

Sometimes it’s what we assume and become confident of without ever having actually researched it that can sink us. Being income challenged or credit challenged is irrelevant. Your job is to understand the problem of the customer, in the case of the landlord they have a vacancy that they need to fill. Your solution is filling that vacancy. 

If you know how to solve the problem, that’s where you start the conversation. At this point, that's where the capacity question comes into play. Having cash in the bank or the ability to raise capital is the answer. 

Sometimes we just need some help to see our way around these roadblocks that we put in front of ourselves. That’s where personal growth comes in.

  • Is the time factor the only benefit between renting and owning in the short term rental business?

The biggest benefit is actually the experience component. By leasing a property and going through the short term rental model you can get the experience without pledging all your capital upfront. That can come in later stages of your business, and inevitably that’s when you will encounter different roadblocks to work through.

Many of us know exactly what to do, but we never do it. It’s not just about the knowledge, it’s about taking action.

  • Am I going to have payment problems if I connect to Lodgify and start doing all the payments through Stripe?

At this point J is trying to avoid being the one processing the payments for reservations and additional services. This configuration is basically what J is doing with his business to achieve that.

  • When you are presenting at a BNI with property managers in the room, what main points do you hit on?

Property managers get hit up for a number of things they don’t want to do. The easiest business you can ever get is to ask for the business that people are throwing away. Ask them if their owners ever ask about short term rentals. How they respond will give you an idea as to how to proceed. Highlight how you work with other people and solve their problems.

  • How do I secure financing if my business credit is developing slowly?

Within the mastermind program, there is a module that goes over the three different kinds of financial structures we recommend. Check it out.

Sharpen the saw. Have a plan to develop your personal growth. Don’t get stuck in information gathering mode, you have to go out there and apply. Understand how you learn and figure out where your roadblocks are and go find out what you need to get around them. You want more, so get out there and go get it. When we labor under correct knowledge, we can develop our own luck.

Links:

cashflowdiarypodcast.com

Cashflow Diary on Audible

cashflowdiary.com/action

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 15 2019

1hr 12mins

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Short Term Rentals Business Q&A #2

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Questions and Answers

  • What’s your system for rewarding or getting rid of cleaners that work for you? 

The best way to make this work is to make sure that everybody you work with understands the metrics that you are measuring performance by. You should know what your revenue was before you hire someone, and you should see a reflection of that person’s productivity in that after you hire them. You should have a minimum standard for review scores the you require your cleaners to maintain and then keep that number in front of them.

  • If the landlord feels the negotiation around the lease is too much work, is there a better way to go about it?

There isn’t much to deal with a lease other than the specific clause around being able to use the property as a short term rental. Other than that there is a clause around marketing and making sure the lease is in the company name. Those are the three main things that you need to address, other than that there shouldn’t be much you should have to fight for.

The more units and the more revenue you’re bringing to the table, the easier it is to have this type of conversation. Start using future language to help your side of the negotiations.

Failing fast and failing frequently is the secret to success in the short term rental business. You won’t be able to get the ball rolling if you are trying to get it right the first time and are unwilling to fail.

  • Do you find you have more success when you are having a conversation with someone in person or is more of a numbers game?

Being in person is a major advantage when you’re getting started because when you’re new, you have a lot working against you including the mainstream media. You have to overcome a bunch of assumptions which is a big challenge over the phone, which is why your only goal on the phone should be to secure a face to face appointment.

  • Can you talk about how many towels, sheets, and linens you put in your units for each stay?

There is a file in the program that breaks down what you need based on the number of beds and bathrooms. Basically you want to stock for maximum occupancy.

  • Can you speak to the Cashflow Game, where do you find it, host it, why do you consider it important?

The Cashflow Game was developed by Robert Kiyosaki and his wife but the best way to buy it now is through Amazon. Being an introvert, J had to figure out a way to increase his odds of attracting customers. The way to do that is to filter, and the kinds of people who are willing to show up and play a Cashflow Game are self selecting as people who are willing to take action.

He or she who educates their market, dominates their market.

  • Can you talk about obtaining guests that are looking for short term rentals due to being displaced and using insurance claim to fund the rental? Who do we need to build relationships and how do we meet them?

You tend to need a lot of inventory to meet these people. You won’t typically find them, they will find you, but once that happens, developing the relationship is crucial. When someone comes to you ask them who their adjuster is or if the adjuster is contacting you, get to know them and their company.

  • Do you have any ideas to generate more income from short term rentals I already have?

Have you automated offering your upcoming guests early arrival? You can also do that with late departures, extra cleaning, or an extra parking spot. There are a lot of little things you can offer to generate extra revenue.

  • What are your suggestions for offsite storage?

If your running a property with a large number of units, an offsite storage area is just how it has to be done. If it’s on a completely different property, then maybe your cleaners have a legitimate complaint.

  • Do you wash all the towels, including the ones that haven’t been used?

Yes, it’s more important to clean everything than to save the money. 

  • Is it true that certain services will turn on instant booking for all listings once they are connected through a property management software?

It depends on the connection type. If it uses iCal to schedule bookings, you will maintain control, but if it uses an API then it will be automatic.

  • How do I handle it when someone books for someone else?

When someone makes a reservation on behalf of another party, instead of referring them to the link we let them know that that’s not allowed and help them understand how to fix it. One way is to have the other person register. You will have to come up with a process that you’re satisfied with because there is no other way to make it work for business travellers.

  • Should I get an AC for a house in Vancouver, WA that doesn’t have one?

There should be inexpensive options that will allow you to install some sort of AC option in the unit. You should also help the landlord understand that by not having an AC in the property they will be at a major disadvantage. If they won’t spend the money on the AC, they will spend it on vacancy.

  • Is there any pros to using software instead of a direct booking site? 

Ultimately they are too expensive for what you get. Just because you’re not ready to use a direct booking site, that doesn’t mean you should start building your business on a faulty foundation.

  • Does the landlord have to obtain the permits? 

Read the ordinance and do what it says. You can’t reliably call the city and expect the person to know the answer. 

  • How do we get into the cleaning business for short term rentals? 

The easiest way would be to make a reservation at one of the busiest short term rentals in your area and then comment on their cleaning. Go wherever short term rental owners hang out. There are many ways to attract the right people to you but they are attracted to you you must also communicate what services you have to offer.

  • If a landlord had six stand alone houses and wanted to work with you, but they had an HOA that’s in charge of 80 houses in that area, would you still pursue those houses? 

You need to read the CC&R’s understand the rules. Do you want to operate the type of business that the rules allow for, if that’s true then go for it. As an entrepreneur, it’s up to you to decide who you want to serve.

Links:

cashflowdiarypodcast.com

Influence by Robert Chialdini

cashflowdiary.com/start

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 11 2019

1hr 9mins

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October 2019 Q & A

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Questions and Answers

  • We are making our first short term rental unit listing tomorrow, when should I set up Wheelhouse and AirBnB? 

That should be done now since that all happens at the same time. If you are ready to make your listing live go ahead and get that done now.

  • What is the best way to attract guests to stay one month or longer?

When it comes down to length of stay, being able to attract someone who wants to stay longer has a lot to do with what platform you’re on and your pricing strategy. Each site markets to its database differently and displays your listing differently. Booking.com is a discount marketplace, so your ranking depends on how much of a discount you’re giving. Craigslist is not recommended for this purpose.

The best way to get a 30 day reservation is to work with insurance companies. When a homeowner gets displaced during an insurance claim, it will often be for 30 days or longer.

  • Should tenants have list agreements signed?

There are times when a list agreement makes sense, for example a deal with a corporation. If you want to protect yourself from a tenant’s rights issue a listing agreement can be a good idea.

  • What is considered an automatic cancel with regards to someone’s reservation of a short term rental?

If someone causes a disturbance and then becomes belligerent, that creates a completely different issue and can be subject to cancellation without any sort of refund. Within the house rules list it outlines what the words “our discretion” means. Typically that means the process goes from warning, to fee, to cancellation, but there are some issues that warrant an immediate cancellation.

  • A question about using a four-plex as a short term rental

The more you can divide a piece of real estate, the higher your utilization rate becomes but it is a double edged sword. This kind of rental requires different levels of services and a much higher level of management. Pricing can also be pretty cutthroat and can make screening more difficult. You will also probably need someone on site 24/7 and there may be a separate license required.

Depending on the layout of the four-plex, it could be possible to get away with less management. Finding someone to actually manage a hostel style short term rental is another big challenge.

  • Should the damage waiver fee be the same when your in the 30 day market?

The damage fee should be increased to closer to $300. In a traditional market where you get $59 you would get in theory five or six reservations, so you should try to make up for the potential lost revenue.

  • Now that AirBnB is currently favoring businesses as hosts instead of individuals, should we rearrange our inventory?

J has started putting all the inventory onto a single host account for AirBnB.

  • When you have your team document resolution income claims do you find value in having the unit added to the spreadsheet?

Yes. If there are multiple claims from the same short term rental unit, that may indicate it’s priced incorrectly and attracting the right client.

  • Are there any corporate rental websites that work well?

Nothing yet.

  • We’re going from high to low season, what actions should I take moving forward?

The metrics you need to pay attention to within SmartBnB is early vs. late bookings. When you’re new, you don’t know what you don’t know about the seasonal patterns. What you’re trying to figure out is if the pattern is normal or if there is a seasonal adjustment to your pricing issue.

You can eventually tell with data that you will need to adjust something, probably your discount curve in order to maintain the same occupancies and revenue. This September will be that baseline for what to expect from here on out.

  • How important is it to have central air?

There is a big difference between having some AC and having no AC whatsoever. In a humid and hot environment, so long as you have some sort of air conditioning you shouldn’t have a problem. This is a review driven business and as soon as one person sweats all night you’re going to have a problem. If the unit has no AC at all, ask the landlord to put one in.

  • When people smoke inside, will the carbon monoxide detector go off?

Label your devices in each room of your short term rental unit. You will want to know if it was the detector in the bedroom or the kitchen. People are cooking in the kitchen you know.

  • Have you gone over what you will be doing with your listings in LA after November 1?

Not much is changing because we are constantly working on getting direct bookings and our networking is contributing to keeping the units filled.

Links:

cashflowdiarypodcast.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 04 2019

49mins

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Wealth Without Wall Street

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Joey Mure decided to join Russ Morgan and co-founded a company called Wealth Without Wall Street.  They teach people to stop trading time for money to achieve financial freedom by following the 5 Pillars of Wealth Without Wall Street.  

Russ, aka, The Idea Guy, started his career in the financial industry.  With 4 years of planning under his belt, Russ was stunned in September of 2008 to see the DOW Jones plummet 800 points.  He had no idea that the market could react in such a volatile manner and knew this was something he could never have control over.  Russ began a journey that day to passionately understand more about how to take back and gain control over his money, as well as his clients. 

Joey, aka, The Stallion started his career in the mortgage business in 2003.  He grew to become a branch manager with one of the Nation’s top mortgage lenders leading 25 loans officers. By 2010 he had achieved national recognition.  Despite earning an impressive income he still had significant questions about how to save for the future without having to borrow from banks. How does anyone save aggressively for retirement AND simultaneously pay for automobiles, save for college, weddings, and vacations?  

In 2010 Joey met Russ, who shared the Infinite Banking Concept and everything changed. IBC allowed Joey to get completely out of debt besides paying off his mortgage, he started saving four times the amount he had previously been saving, and now had a clear plan of how to save for all our life’s expenses without giving up retirement savings.

Podcast Highlights

  • Who is Russ Morgan and Joey Mure? 

When Russ was a kid, one of his favorite uncles used to give him green Tic Tacs, but he called them Hulk pills. Imagination has always been a part of his background, he was constantly envisioning things as they could be if they were bigger and better. The motivation to help out his family as well as other people has been a key driver in Russ’s personality.

For Joey, the Italian Stallion Rocky Balboa is his unconventional hero of choice. Rocky was the constant underdog taking on Goliath, and Joey always felt that way, especially about his education. His parents wanted him to get an education but they didn’t have the money to pay for school, so Joey had to make it happen on his own. They’ve given him the vision and he put in the work, became valedictorian of his high school, and secured a scholarship to university.

The vision of wealth in the future and being able to take care of his family is what drove Russ to get into the financial world. For Joey, having the end goal in place and then achieving it showed him what was possible. While in school he encountered a number of mentors that helped guide him towards the mortgage industry. While working in the mortgage business and generating a significant income, Joey realized that there was still something missing and it was around that time that he met Russ which changed the course of their lives.

  • Wealth Without Wall Street

Success leaves clues, as a financial advisor Russ saw what wealthy people did with their money and it wasn’t going into Wall Street. When the market crashed in 2008, nobody knew what was going and he realized that he couldn’t be a part of an industry that just pretended like they understood how wealth was built. The wisdom is in wealth, and the wealth isn’t on Wall Street.

Real estate, business ownership, and private lending were the main asset classes that Russ saw his clients using to build their wealth. 

There are five main pillars in the Wealth Without Wall Street plan. There first is about keeping more of the money you make, also known as cash flow. Where are you unnecessarily spending money that you don’t need to? That involves optimizing your tax strategies and paying down certain kinds of debt.

Invest in what you know, invest in yourself because that’s who you know the best. Investing in yourself is the best investment you can make.

Wall Street has confounded the process of investing by creating marketing fluff pieces to create the belief in people that they just don’t know enough to do it themselves. This is perhaps the biggest lie we’ve been fed and as a whole, the country buys into it.

The first step in working with a Wealth Without Wall Street client is understanding what they already know. At the end of the day we need to follow our own passions and gifts, once we understand what those are, we can start to invest in them.

The real problem that people want to solve is not about money, it’s freedom. This is why the idea of the qualified plan is terrible, you’re giving up control and visibility on your money in the hope that it will eventually solve your problem in the future. The traditional path of earning money will never help you get to true financial freedom.

Without cash flow and access to capital, the greatest investment could pass by right under your nose and you wouldn’t know it because you can’t act on it. Before you can invest you have to be in a cash position. Once you have that in place, you can invest in yourself and things you control, like your own business. Then you can move into assets like real estate or lending, and as a final step speculation which is ultimately the domain of Wall Street. 

  • Russ and Joey’s Takeaway

Go to community.wealthwithoutwallstreet.com and find people out there who are doing what you want to do. Your net worth is your network, and this can be your network.

Links:

wealthwithoutwallstreet.com

community.wealthwithoutwallstreet.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

Oct 02 2019

43mins

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