Summary This law is screwing hosts. DO THIS NOW to save your Airbnb business... - YouTube (Youtube) www.youtube.com
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Jesse Lots of things happening. Lots of things happening
Rob in the world... 1 second.
Jesse Good. Lots of things happening
Rob in the world of short term rentals. Cities are banning you, businesses are getting shut down, and everything is going to But here's the deal. There are things you can do when your city shuts down your Airbnb business. And that's what we're gonna be talking about on today's episode of Rock. But to do that, I brought in my friend Jesse Vas, who is the king of mid Term rentals.
Rob These are states that are typically 30 days or longer. So today, we're gonna be talking about the Airbnb ban in Dallas and how you can pivot your short rental business into a rental business, and we will get into it step by step. D d. We'll get into this step by step, and we're gonna actually teach you how to build a medium term rental business from the ground up, I know that I'm
n/a a little biased here, but I will say that
Rob if you're serious about shifting your Airbnb business making it recession resistant, making it regulation resistant. This could be the most important and impactful video
n/a you've ever seen on the channel. So let's get into. Jesse Vas, the midterm rental king dubbed by everyone in the short term rental community. Listen, there's a lot going on right now in the Dallas. World and in the short term rental world Dallas just outlawed short term rentals ban them.
n/a And I wanted to bring you on because I think there are a lot of people freaking out. Regulation seems to stop a lot of people from getting into short term rentals, which is fair. That's a fair thing to be nervous about because it is 1 of the more risk year asset. Assets in the the real estate world. So for those of of anyone at home that doesn't know about the Dallas situation, can you just give us like a quick 30 second recap of what happened?
n/a Yeah. So Dallas regulated short term rentals completely. It looks like they are going to be... Band if you're in a residential market in Dallas. So if you're in a commercial building, if you have a residential property, You can't short term it there at all.
n/a I think this is actually going in effect in the next probably 3 months. I think it said by December. But there's people right now that are starting to panic because of the regulations that are happening with rightly so. I mean, I if I was in that market, I would probably be a little panicked myself. So yep, they completely banned them.
n/a There's no way to get around it. The city just decided we're done no more short term rentals here, which
n/a And the other thing about it is that even if you were a current short term rental owner with the permit, you... You're not grandfather in, you're also next.
n/a Yep. Yeah. You're also x your yeah. You're up. You're on you're on your own You gotta figure it out.
n/a And I think this is... This is this is gonna happen to a lot of states, a lot of cities, a lot of municipalities. I mean, I talked about this before Rob, that happened into my market. Granted I did fight with the city about it. But we can go into, like, things that people could do in order to kind of get ahead of the curve in those spots.
n/a Because Yeah these are gonna... (this this is gonna... This is part of evolving. This is where the short term mental is going. (this municipalities that are starting to look at this now under different light and we have to be able to adjust as operators you, on the short term side, long term rentals, written recommend mid term, short term, we have to have different ways.
n/a To pivot because what's worked in the past isn't necessarily gonna work in the future.
n/a Absolutely. I mean, I think this happened to me as well in Los Angeles, I had. Short term rentals running there. They banned them. I converted it over to midterm rentals and for the most part, I've actually done Okay.
n/a I've done I've I've cash flow. I've been doing really well. But I wanna ask you, like, an honest question since you are the midterm rental guy, if this happened to you in like, a city that you're in, Right? I know this has happened before, But I'm saying like, right now, in your current portfolio in a city where you're operating... A short rental.
n/a Would you be scared if regulation came in and locked out short term rentals? You personally.
n/a Yes, I would be a little bit... Scared. No. If I wasn't running already. So, like, granted everybody's watching this.
n/a I've been doing this for 8 years. So it's not like I haven't been doing this. This is a long time I to think about it. So I've had a long runway. But if I didn't pivot into something like this years ago and this did happen today to me where I wasn't in the medium term or midterm space.
n/a I would a hundred percent be nervous. Like, this would be scary. Like...
n/a Yes. Okay. But you are actually... You would not be scared. You personally because you've been working on your book of business and your midterm contracts with agencies and everything for...
n/a You said 8 years?
n/a 8 years yet. Yeah. So now if this happened to me right now, which again, this did happen to me in 1 of my markets about a year and some change ago. We had cease and desist letters that were sent to us in the mail, and we basically had to stop operating short term rental immediately. And at that point, I just flipped into into medium term, and we didn't, like, skip a beat That's why I want everybody to think about, like, if these thing...
n/a If you are in a market, it's not regulated right now, it's in a gray area because there is a gray area. Right? They're really there's there's municipalities that don't have short term rentals in place yet, Rob, you know, that, like, you're probably operating to. There could be a potential and a possibility for you to get regulated. And if you don't have, exit strategy now, and start thinking about that or least start filling gaps with, you know, going after local companies or connecting with agencies or even listing for 30 days at time during slow season, you have to get your feet wet, and I think that that's a really, really important part especially as far as pivoting goes.
n/a Yeah. Yeah. So let's talk about exit strategies because I think a lot of people go into short term rentals and they're, like, this is my thing. I'm gonna be a Airbnb person. And I don't have an exit strategy.
n/a So I wanted to kinda talk about what the different exit strategies... You know, the some some things that you should keep in mind when you're running your numbers and granted it gets a lot tougher to do this in today's market with interest rates the way they are, but that doesn't mean that it's impossible. So I would say mine probably first and foremost, the number 1 exit strategy if an Airbnb got regulated is probably a long term rental, and that would just be instead of hosting people for less than 28 days. You're basically now renting to a tenant for 12 months at a time. You ever had to pivot to to that exit strategy or have you always just stayed in the short term medium term space?
n/a Yeah. I've always... Stayed in the short term medium term space. I I don't have 1 long term rental pedal all. And I don't intend to to be honest with you.
n/a Sure. I think that right now, we've lived it really fantastic short term rental life. Like, if we talked I talked about this on the show with bigger parks with you. Like, Airbnb and, short term rentals have been around a while, you know, we're liking in the seventh inning. Where there's still some more innings left, like, we're getting into experiential stage.
n/a You remember Airbnb plus when that was around, like, 5 years ago, You know, it kinda went these different stages and now I'm looking at, like, what's next? And they're kinda like going back to the beginning roots of, short term rentals. You're sleeping on beds, like now they're having room rentals or doing those kinds of things. So it's like, we're almost evolving back to the very beginning, you And the medium term space, I think is going to draw more people to it. And also long term rentals are...
n/a I mean, it's hard to find even the 1 percent role right now. You probably talked about on the Bp show, like, it's hard to find that now. Like, there's not even... I think there was bigger box have an article I got an email, and there's only, like, 5 states that actually have wow that's still an effect and I'm just like, how the heck is anybody supposed to make any money. And these are ways you have to do it Right?
n/a You have to be creative. You gotta you gotta think outside the box. So, yeah, I have not had the long term rent yet. And I think... You know, we...
n/a I've been lucky.
n/a Yeah. Yeah. Sure Sure Sure. So I mean, that is probably the lowest hanging fruit flip to a long term rental. That was a lot.
n/a Easier probably when you're locking down interest rates at 3 or 4 percent. I think the second 1 is relatively obvious, and this would be selling your property. If you've had your property for a while now, you may have built up equity over the past, you know, 1 to 10 years. However long you've own it. Right?
n/a So that's always gonna be an option as well. That's what I like about the the Airbnb model where you actually buy property and you own it. Because you can always just sell and there's always a likelihood that you're gonna make a profit from having operated that Airbnb, whereas on the arbitrage side, you you don't get that. So if you were regulated on the arbitrage side, I think your exit strategies are a lot less. Right?
n/a So they're selling, there's a flipping, So this would be maybe the house needs a lot of work. Maybe you didn't fix it up before you put it on Airbnb and b, so you could actually invest money into a remodel and sell it for a much larger profit than just selling it outright. And I think the 1 that I wanna talk to you about are midterm rentals. I think this is probably the most solid and I know you probably think so too, but the most solid exit... Strategy, which isn't even an exit strategy.
n/a It's obviously more of an entry strategy into a very beautiful relationship with the short term rental market So for people that don't know at home, medium term rentals are basically 30 day stays plus. I mean, a a short term rental really is 1. To 28 or 1 to 30 days at a time. It kinda depends on the municipality. So that basically means that you're gonna be hosting 5 to 7 sets of guests every single month through Airbnb b through verb, through direct booking websites, whatever it is.
n/a Medium term rental, are 30 days stays plus. Right? You might be hosting people 30, 60, 90 days at a time. I just hosted for someone for a hundred and 80 days. I had a 6 month reservation and the difference between a medium term rental and a long term rental is that a long term rental someone moves in, they fur it themselves.
n/a They pay all the bills, a medium term rental, you're the 1 that's fur finishing it, you're the 1 that's paying all the bills. And because of that, you're charging a relatively large upc charge for doing so. I miss anything there?
n/a No. That's that's exactly it. Just so gets context of this, even the short term side we make? Exaggerated amount of money because we're willing to take a risk when most people are playing it safe by going after (this 12 month leases. So like a long term rental you know that for 12 months or place gonna be booked, and that's why we make so much money in the short term and the medium term side is because we're taking such a huge risk that that vacancy actually accounts from order.
n/a Dollars. And I want people to realize Exe. I get asked that question. I'll time I'm like, why why would I invest in that? Like, it doesn't make sense Or how are you making so much money because I'm in Youtube reps get short term and medium term.
n/a Like, you're risking the the fact that you might not have people booking your place and you're gonna have basic, which is why we make more money on that side. So Yeah. Yeah.
n/a Yeah... I think I think term rentals right now are kind of the the sexy bad boy of of real estate? It's just... It kinda all blew up over the past year. It's funny because this isn't really all that new of a strategy.
n/a You've been doing it for a long time. I'd started doing it. Really before it got super popular with my La properties. And the way that I was going out and getting my 30 day states plus was I was just... I was basically just listing on Airbnb and putting a 50 percent discount on my short term rental rate.
n/a And I just myself getting all these travel nurses and families staying at my properties. Vacancy is a very real thing. Sometimes I'll have a month long vacancy. Found Sometimes I'll book a place for 6 months. Have a 2 week vacancy that have a 3 month reservation.
n/a But what I like about short term rentals, Sorry. What I like about medium rentals is that the management is way less than a short term rental. You know, I said you host 5 to 7 sets of guests every single month. Short term rental that means you're gonna be hosting 60 to 72 people per year, groups of people. Medium term rentals, you're gonna be hosting basically 3 to 4, maybe 5, 6 sets of people throughout the entire year.
n/a So I know your specialty is locking down midterm rental I don't know. Relationships, contracts with insurance agencies and hospitals. So I was hoping you could kinda give us a rundown. On how if someone got regulated in in their market, they can no longer do short term rentals, what is that first... What's the first thing that they should do?
n/a Yeah. So let's let's use Dallas. Everybody in Dallas right now. Like... You guys are in Panic mode or if you're maybe not in panic mode.
n/a I mean, I probably. They are probably I think it's okay to say And if you are in Dallas, you know, I'm sorry. I know it it is a panicking situation. I don't wanna I don't wanna a sugar coat that A lot of people bought Airbnb b's. For (this so sole reason to to put them out there, rent to make extra money and now they're like, crap what do I do?
n/a Because right now, I think if you try to Airbnb, if you try to you know, sell a property that you just bought in the last 6 months. You're probably not... You're probably gonna be a little upside down on on selling it as my guess. When do you think,
n/a Oh, totally. And I I feel like there's going to be a huge opportunity to buy property in Dallas residential property. And we'd probably see the prices drop rob, Like, I mean, I was actually gonna try to look to to see how many short term rentals are in Dallas right now But if you think about, you know, say even a quarter of those renting or selling, that's that's a huge opportunity for people to buy. But this is what I I really want people to think about right now. So regulations hit.
n/a And that happened to you, you flipped right Rob, you flipped in the medium terms you had to. There was no other route. And granted Los Angeles had a ton of short term rentals when that happened. Right? Mh.
n/a So 1 of the things that I would I would... Everybody right now is 99 percent of people are gonna list on Airbnb and b, they're gonna list on Vr. They're gonna list on Fur finder. That's 99 percent of people and hope to get their place. Booked because that's essentially what you're doing is you're waiting for somebody to come to you.
n/a Now what I did is I reversed engineered how I thought about that. I looked at who are the agencies or the companies booked what type of structures in Dallas, What type of people come work there. So that's a larger metro area. So you have different avenues of, you know, corporate companies, you have, you know, there's an infrastructure bill that passed in the beginning of this year, there's probably infrastructure stuff happening. Corporate companies are doing construction all over the place in there.
n/a So there's a way to go after these engineers, there's a way to look at all these different companies that are hiring. And if you go on the... There's a website, and I wish I had it on front of you right now. If you type in s government, like jobs in Dallas or government, you know, You have to... You wanna talk about Rob, it's like, it'll basically show you a breakdown of.
n/a What what infrastructure or what? Oh, got it. Your hiring. Do you know what that term is what it's called? I don't know if it's top me.
n/a Anyway, what maybe we'll put this in the show notes? So you can actually go there and see who's hiring? What cities? What kind of work is needed to be hired there, and this is through the government. So governments actually posting these things.
n/a So you can look like, is there companies hiring? Is there a new construction happening? You can drive by these places, take pictures of the work truck that are out there, start thinking about this more of like, how do I get these businesses to wanna work with me directly. And this is gonna work especially if you have more than 1 property And 1 of the cool things about medium term space, Rob, like what I've been kind of preaching for a while now is that collectively you're better. And the short term industry were, like, you know, we want everybody to rent our place.
n/a Right? Like, I'm gonna put this golf course and I'm gonna have this crazy thing I want everybody to put in my place. In the medium term... The the medium term space or what I what I talk about is, like, hey, band together with everybody that has properties so that when I go to this company, I now look like I have 300 properties or a hundred properties or 50 properties as opposed to just having 1 or 2. So now if my place is booked, I can now pass...
n/a Property after to Rob. If Rob's place booked, you can now pass the property up to Kevin. And then if Kevin's place booked, you can now pass. So where it's like, we're working together to help each t out. And I think that's where, you know, you you get together with other operators in your markets, you start creating this almost like synergy because you're better together than you are individual it's, like, almost the opposite mindset than the short term rental industry has been.
n/a Yeah. It's the abundance mindset. There's enough for everybody out there and I think... So I have tried to break the the the mind... The competitive mindset because I teach Airbnb b in Short-term rentals on on my channel.
n/a That's like, obviously, the main thing I talk about. Yeah. And a lot of people are always like dumbfounded that I teach this, and I teach it for free on the channel. Obviously, I have host camp. My mentorship program, which of you guys are interested in joining that go to host camp dot com.
n/a But that is for the more elevated like, you'll join my community, you wanna be in a group of 2000 people that wanna learn a network and have a community with each other, but I teach... What Like my best stuff on this channel, on Raw built because I'm like, anybody can do this. I didn't have the Raw channel and I started. And I wish I I wish something like that existed. But now it exists, and I put it out there for free and people are just always dumbfounded that I'm willing to do that.
n/a I'm like, well, I mean, that's that's... A content creator. That's what I do. I like to teach I like, to educate. So it sounds like midterm rentals are sort of kind of like that where everybody does want to help each other and, like, Help each other.
n/a I'm not saying (this short term rental community isn't supportive. They totally are, like, I think people just hold their cards a little bit closer to their chest. Host camp, they're very open, everyone shares with each other. I love that. But when you break outside of, like, strong knit communities, it is really tough to find people that are willing to just give you their numbers and they're, like, their raw data, basically, you know?
n/a Yeah. And you know, that's 1 of the things that you've done it. It's that separates yourself from all the other and and, you know, the other folks or the guru out there. Just did some quotes for everybody listening. It's...
n/a You you communities everything. And I think that when you have a short term rental group, or even a medium term rental group is able to share networking things together. Like, that's what it's gonna keep people growing. And you're right, you do give stuff away for free. I'm in the same way, like, I think that anybody could do.
n/a Like, if a guy that didn't graduate... I didn't graduate high school if an idiot like, we did graduate high school and can build the 7 figure business, like, so can somebody that graduate high school and actually gets the basic diploma that. Like everybody needs to. Now Feel embarrassed I'm talking about this (this probably millions of people. But you know what?
n/a I love it.
n/a It's the reality. Like, it really is... That's the reality of it And I think that you're empowering people Man. And I get guarantee you get messaging on a regular base for, like, rob? Thank you so much.
n/a Like, it was it for your channel I wasn't able to do this. And that's Yeah. That's that's gold.
n/a Oh, makes my day, man. It makes my day I get them all the time. It it really weed out all the the haters that are like, your hair stupid. Actually, no. That...
n/a Those are nicer comments compared to some of the ones I get. But alright. So let's get into this. So... Alright.
n/a If you're in Dallas or in a market that gets regulated, What is your first step to save your dying portfolio?
n/a Yeah. Number 1 is start looking at what your market is doing is... What I mean by that is, and we'll put the put this in the show on hopefully rub, the website that you can go look at. Go to indeed dot com and just type in, like, travel nursing. And travel, registered travel nurse.
n/a Go into indeed dot com and type in, you know, construction work. And start calling these companies and saying like, hey, I have property here is your... Do have travelers that are coming in this market right now. Are they staying in the hotel? If so, like, how many people are in those hotel?
n/a So let me give you a quick story on this. So the way that I realized (this opportunity, there was a Dave Buster that was being created in my market. They were building it right through putting it together. And I drove by the Dave Buster and Took a picture of this work truck. It had plates from Indiana.
n/a And I called the company and I was like, hey, putting I just wanted to touch base with your Hr department to find out if you guys, you know, you guys are building Dave Busters where you guys staying? Lady was like, she don't have phone, she she's like, this (this is weird. Like she's weird. Okay. Like, I I actually help companies save money through lodging.
n/a And we have properties that. You know, you could put 5 or 6, 7 people in and save you money and I asked her where they were sitting They're staying at the Double Tree hotel, just like the only nice hotel.
n/a I gonna say that's expensive. Is it?
n/a Yeah. It was 220 dollars a night, and they had 8 guys there were engineers that were working there? So what is that? 220 times 8? Are you good at math up?
n/a Okay. That's gonna be roughly 1700 bucks a night if they're not sharing a room.
n/a They're not sharing rooms. Yeah. Yeah. So that's what that's the exactly what she told me. So I told her I have AA4 bedroom 2 bath, 4 bedroom 3 bath, we we'll grant it for 10 k.
n/a I'm already saving that company. What 20, 30000 dollars just by having them stay together in 1 place. Mh And she was like, yeah, totally whirl all about it. We want these guys to stay together, we're saving money. And I think that's where the most important part of this whole conversation is you have to think about, like a business, how can I help Rob's business save money?
n/a How can I help Rob, have a quality stay? How can I help Rob, you know, have a a streamline streamlined accommodation where they're gonna have everything needed need to cook clean? Know it it's just like a short industry. Same concept do you wanna make them comfortable you wanna have amenities for them. You wanna have space for them to cook.
n/a And it's really just serving a purpose like, how can I solve the? Problem. And for me, the problem I was solving was a that they were spending too much money. These guys would rather be in 1 place together because she talked about that. So it's just different ways of thinking about problems you know, businesses.
n/a And that was me just driving by works site taking a picture. If anybody has, like extended stay hotels in their markets where, extended stay hotels, those are the companies that have corporate travel contracts. So these construction companies will connect with them, Go, go drive either like a creeper at 07:00 at night you take pictures rough, Like just take pictures of the work trucks that are out there. That's when these guys are back, they're getting ready to get getting ready to go to bed. Take pictures of trucks and just make phone calls in online.
n/a That's like a really simple way to build a business like relatively quick by just connecting with a company.
n/a See. Really I I don't I don't wanna gloss over that because what you just said is so simple. And most people won't do it.
Rob Alright. Let's take a quick moment to pause. Here. If you're listening to this, you know, like, wow. Jesse Be is a freaking genius at this.
Rob It's because he is, and that's why I've asked him to speak. At Host con 2 my gosh. I'm so excited to announce this. I've been working on this My team has been working on this round the clock to bring you my short rental conference. The second round of it.
Rob We did the last 1 back in January was completely sold out. Standing room only. We didn't have enough food from so many people they're networking, partnering doing all that kind of stuff. I'm excited to announce that on October 20 ninth and t. In Houston, Texas, Host con is going down.
Rob I'm gonna have speakers like Jesse Vas talking about midterm rentals. I'm gonna have a rec recall talking about recession resistant vacation markets. Simpson talking about building a direct booking business. Pace more will be there to teach you how to build a multi dollar real estate portfolio for 0 dollars through creative financing. I've got the most insane industry titans and speakers lined up for Host con.
Rob The best part of it is you gonna have me on stage, teaching you how to do this short term rental thing. So if you wanna be there, and you wanna
n/a get in the room with hundreds of other short term rental operators,
Rob gonna then head on over to host dot com. We'll click the link in the description down below. We got early bird pricing going on right now, so it is the best time to snag your ticket to host con. Houston, Texas. Back to the video.
Rob Most
n/a people won't do it.
n/a They won't they won't jump in their car in Drive 10 minutes because it requires effort, you know? And I think that's where a lot of people will like, throw in the towel very quickly with T or term rentals, they'll listen on air airbnb. They're like, it's not working, this isn't gonna work. But what you just said is a room relatively simple process. So there's 2 things someone can do.
n/a They can either go to d dot com, type in travel nurse, and let's just use Houston as an in... As an example, relatively You type in travel nurse on indeed. You'll see that let's say, Md Anderson. Is hiring travel nurses. I don't know.
n/a For example. Mh. That's a that's a job that's, like hiring full time travel nurse, Md or Anderson. And then you see that they're they're hiring a bunch of travel nurses. So then you'd would be like, okay.
n/a So Md Anderson is in need of more travel nurses. So then you would call Md a anderson, and say, Can I speak to the person that's in charge of travel housing or travel nurse housing or who who would you ask for that scenario?
n/a Yep. That's exactly I'm actually on right now and there's literally 30 pages of companies that are hiring. So look at look at this 1 right now. Therapeutic invention centers. So they're hiring a physical therapist.
n/a It's a travel physical therapist. They're paying this... They're paying them 240000 a year. Wow they're... There's actually a a recruiter name that's on here.
n/a So not only am I able to go look to see who's hiring, I'd now have a specific person that I can call and say, hey, yeah Do you have housing this or recruiter missus recruiter? Like, how is your... Are you guys paying for the clinical staff to stay or are they paying themselves? Because clinical stuff will get per Diem page just so everybody knows? That for Diem is typically tax.
n/a And a lot of times the travel nurses or travel this is a travel physical therapist job, occupational therapy job, they're not gonna wanna pay that much out of pocket, Rob. Then this is where you and I would be in the same. If you and I got tax free money to... For lodging, basically lunch money, not gonna spend that right, And you can go back to a kid. We didn't spend our lunch money.
n/a We kept that in our pocket. Maybe we'd, you know, we wouldn't buy stuff for our friends. Same concept, we're going after the agencies because they have more lunch money to spend than the clinicians or the, you know, occupational therapists business. So we don't necessarily want the 1 off nurses that are gonna to be booking it on place because they're gonna wanna replaced. We wanna build the relationships with the company so that we can find, you know, accommodations that are that are helpful for them.
n/a World we'll be the go to person form. So we weed out the middle person which is the clinician individually looking. Plus we don't wanna charge them a lot anyway. We want the agency that have the income to do this. And these are multimillion million dollar companies by the way.
n/a Yeah, a lot of these coming 2 agencies.
n/a Alright. So I'm on indeed, I typed in travel nurse where Houston, Texas, then it says new. New graduate registered nurse, and then under there, the name of the company is Pace staffing. So then I would go to Google, type in Pace staffing, Houston, find out the phone number. Call and say, hey, I saw you're opening on indeed.
n/a I actually help with accommodations for travel nurses because I know that it's really expensive to put them up in, you know, extended stay hotels. I would love to work with... You know, can I can I have some? Some, you know, 5 minutes of your time to to basically meet with you and kinda show you the properties that I have in Houston.
n/a Yeah. It's exactly what I do. And I'd actually take that a little bit further, Rob. I would say, hey, Rob who, this is gonna sound me, but just hear me out. Yep.
n/a Mh. Rob. Short-term. Do you have any other staff that you're sitting next to right now? And you would either be, like, no, Yeah.
n/a Mean why is that? Say, I'm gonna order you guys pane? Do you mind if you and I jump on it? And me you and your staff jumps on a call tomorrow for 10 minutes. I'll actually order you guys pane, and I'll go through my ro decks with you.
n/a So now, Rob, is all of a sudden like, who the hell This guy is gonna order us lunch and everybody next to me my cubicle will is now gonna have lunch from Pane, which actually we'll make it ko since replaced.
n/a Thank you. Thank you.
n/a So we're now we're switching over Chipotle. So everybody can have diarrhea in that entire office. Maybe you know what? Maybe don't get your chipotle guys. What maybe this lift playing.
n/a You we'll get them the balls.
n/a There you.
n/a We'll cut the tortilla.
n/a Exactly. So guess what I hit Rob. Now I'm getting the name every single person is sitting next to you. I might hopefully get their email address and I get their, you know, their information. Now I go on Linkedin.
n/a Now I can go on linkedin and look up Jim Smith is citi of Steven. I can now look up Kevin Do. I just... I think that's from a movie. I don't know what movie that is.
n/a That's Big daddy actually, never mind Got it. So now you're looking up like these people, and now I'm... Now I've just out of 1 phone call. I'm able to connect with everybody. I'm able to get their emails.
n/a I'll be able to find them on linkedin And guess what? They're not gonna forget about. Rob. Because Z I gave them diarrhea for a day with people
n/a It's hard to forget that. Right?
n/a Forget that.
n/a See Die.
n/a Yeah. Right. Well, so... And that's the thing is, like, it's it's having unreasonable hospitality and I got this from the book. Don't know if you guys read the book on unreasonable hospitality.
n/a It just came out like, like, 8 months ago. And he talks about... This is a restaurant guy in New York City. I he talks about doing things that people aren't necessarily used to getting. Like, it's almost like you're giving them something with them without them expecting you.
n/a And that's exactly what's happening is. Concept right now Rob, we're like, now I'm giving you lunch. Nobody's gonna think like that. And nobody's gonna worry you lunch. Nobody's gonna worry you Starbucks.
n/a So we're creating the atmosphere that we're wanting to build in. And that starts what's something very simple is maybe buying lunch for 4 people and doing a 5 minute zoom call.
n/a 50 bucks. 75 bucks, hundred bucks. And in theory, you'll you'll land a a leader or the at least keep you in mind. Is it worth it to do (this strategy if you only have 1 property. I just launched a property here in Houston, Texas.
n/a It's an Ed, So I think it's technically within the the Med district. If I have the 1 property, is it worth it for me to still do, like, go all out like this? Because you were saying the more you have, the better.
n/a Yeah. And that's... I get to ask this question a a time. It's not... I would not worry.
n/a But I started with 1. I have a ton of people that I know that start with 1 and they build. And again, collectively you're together, once you build your 1 midterm, you connect with other people in your market, you have more. But once you start, this is a great thing you know this rob Your booked for 6 months, you're gonna sit on your hands for 6 months, like, you're gonna wanna go pick up another property. You're gonna wanna use the font.
n/a Hopefully, you're like, you're you're getting smart about using those funds and reinvest it back in the business. So that you have 2 or 3, and that's (this how snowball. It's the same thing that you're probably teaching in your in your course. It's the same concept, you know, you're just building more, and the the the great thing about the medium term space is those clients are typically not, you know, like, hey, my pillows is too soft and, you know, it's not like that at all. You know, 1 of the bathroom lights is burnt out.
n/a Though these folks will actually go buy a bathroom light. But right.
n/a They will bother you for it.
n/a Yeah. They will... They're not gonna bother you. They they're almost like, they live in the property. They live there.
n/a They've accepted it. They're like, oh alright. I guess, this is it for the next 6 months yeah. This is nice. Great.
n/a And then they bother you if something is like, actually, like an issue. So that approach seems really cool to me. So you go to indeed, you just actually showed the process. That I think this is really cool. So now step 2 would be...
n/a Because it's not just like, you're not just doing that. You're basically doing that with everybody that... Shows up in indeed dot com. Meds that med staffing, ia healthcare, favorite health staffing, voyage healthcare. Those are just, like 4 names at just...
n/a The first 4 names that popped up. I'm basically hammering the phones with all of these guys. Right? And I'm like, hey, Let me pitch you Hey, let me pitch you Hey, Let me get you. Hey, let me get you K do.
n/a Now see, that that would get them the the die die. But you're basically pitching... All of these companies, what is your success rate with getting through? How often are people like, yeah, we don't want the lunch.
n/a Yeah. Well, it really just depends on... And and this is where... You have to build a muscle. Right?
n/a Like, you have to do reps. And and this is where people will get stuck because I've had people that will watch, you know, Youtube videos like, I called 3 people and that didn't work, like, yeah. You gotta call like 10 x that. You got if you wanna be successful, like, you have to make 30 calls a, like, literally minimum 30 calls a week. And I know that sounds crazy and it's probably scary and people will feel sick literally feel sick to their stomachs, like if they had a chick burrito.
n/a But But you got...
n/a Don't don't you talk about my Holy burritos bro.
n/a I don't know. I'm sorry. Maybe it's just me, man. I have a I have a finicky stomach, but if you have to just continue to make those calls, you have to continue to get out there. You have to learn about sales.
n/a Because at the end of the day, this is about sales. This is about being able to listen to somebody. Emphasize with them, be able to create a strategy, think about the things that are gonna happen? And knock go off a pitch. I think a lot of people in now are, like, what's the pitch that needs to happen?
n/a Like, you don't wanna do a pitch It sounds very generic and fake. Like, it needs to be an organic conversation where you're... You really... You somebody shoots you a question and you don't have to go to a page and look at it. Like, you already know the business.
n/a You already know how this works. And I think that's what separates people from... You know, that's like, they're going back to this role next, like, what do I say after this, Like, you have to know the business. Sure. That makes sense at all.
n/a It does. So can you run us through some of the other jobs or... Things that you would search on indeed, we've... I I... On the what...
n/a At the top of indeed, it says, what where? For the what I put in travel nurse. Are there other terms that I might consider putting in there?
n/a Yeah. So you can do occupational therapist? That's another really important. It's like folks in Dallas right now Like, you're running into that. So occupational therapist are the clinical staff that helps people to, like, with mobility.
n/a So say somebody fell and broke their hip. Like mom, I fell and broke my hip kind of thing or what's the that big eighties commercial nineties commercial I think.
n/a I fallen and I can't get up.
n/a There you go. She hits a little button. So somebody falls, they can't get up. So a therapist would actually go to these folks homes. And they would work with them with physical therapy because they can't technically leave their house So they're considered like home valve.
n/a So those occupational therapist, there's not a lot of. So if you guys are looking for a career path and probably you might wanna be an occupational therapist. But these companies are home health agencies are hiring these people all over the place. So folks are coming from all over the Us. To come you know, work in these these areas.
n/a So right now, I'm looking at Cc young senior living. Ag therapies there there's another 1 shift key. There's another that's a big company. They're looking for an occupational therapist. So you just call those companies and basically go run through the the strategies and the scenarios we just talked you know.
n/a So that's that's... This is another route. Again, we're we're talking about the health care industry. Right? But then you can also go and look at like, you know, a tech company, So you can even type in, you know, like, tech agency, tech company in in indeed in indeed search bar.
n/a So I'm gonna do this right now I we're kinda talking about. Tech then. So the tech tech companies will send people from all you guys know what digital no adds it. You know what that is right? Right?
n/a Yeah. You know
n/a So that's the concept of basically You don't have a home wherever the job is, you know, you can just do it remotely from anywhere.
n/a Yep. Exactly. So you would look for... For folks that are in those tech companies or in these companies that have, you know, that typically have people for 3 months per a month for 6 months at a time. So you look at tech companies, they'll hire people that will come in, What do you need any need housing?
n/a So you connect with their Hr department, it's the same concept the same thing that we talked about already. You basically say, hey, I have housing. Are do you folks hired you know, digital demands or text or engineers that come work here from out of the area. And can almost guarantee that they're gonna say yes. And once they say yes, you say, okay.
n/a Cool. Well I have housing. I have my own properties and I'm actually part of a network that has, you know, a lot of other housing. Are you having any problems with your clinicians or your, you know, your digital dumbass as or your engineers finding property. And either say, yeah, or nay or, well, I wanna be a solutions provider.
n/a That's again, our goal is to what Rob, like, problems to serve them. Right? We're wanting to serve these clients, serve these these folks are coming We wanna make their jobs easier. So if a tech company is gonna hire you, rob say, hey, we have housing. We have a company that we work with.
n/a Here's what we pay every month, like, that's gonna streamline you to want us to work with that company. That's that's what I want everybody to think about right now is do we make the job of this recruiter of this this company easier for them to hire. Now they have accommodations they have housing right? Is a good pay. So it's like, we're solving all these problems and that's what I really want people to think about.
n/a What problems can I solve in my market?
n/a So I like this idea with the tech company. Can we go 1 step deeper because I think a lot of people are, you know, it sounds really good. Like, oh, yeah, Tech company duh. How do you find the tech companies? Is there a step Like, if I wanna say, oh, I wanna target tech companies, that's such a broad term, especially in in Houston, Texas, like, there everything could be a tech company.
n/a So is there a strategy for finding tech companies?
n/a Yeah. I mean, we have this beautiful thing called Google. That's all right now and home. That's we do. We'll literally go in and just...
n/a That's a new thing. Right?
n/a It's very new. Yes. It just came out like a couple weeks ago. Cool. But we'll just go and we'll look what at like these big companies like Alphabet, Samsung, I'm looking at Houston companies around.
n/a This is why I'm I'm doing this. Dell Technologies, Meta, Meta out there. Can't mean, there's literally hundreds of tech companies. And this is where the more property you have, the better opportunity you're gonna get with these bigger bigger Alphabet. I'm looking at this right Alphabet.
n/a I is a holding company for these 4 these tech companies are based out of Houston out of out of Dallas. So now you call them and you (this, this company worth 257000000000 dollar massive. So they're hiring people from all over the world. Now how do you like how do you niche down an niche I hate that word niche by the way. How do we niche down and to only help those looks like we go...
n/a We just googled them? We find out we call the company? We see how they're doing housing? Do they have corporate housing setup? What do they do for the travelers?
n/a Often do they get travelers? Are they paying for their housing? Are they not paying for their housing? So there's a lot of questions You gotta ask, you gotta figure how these companies are actually doing things? And, you know, right now, it's just Google.
n/a I mean, just use simple Google things. Even colleges, like, we've had teachers that have stayed. At some of our properties like Berkeley. So uc see Berkeley, they'll have these these travel these these travel, like not there I'm gonna call them they're not doctors are What are those professors?
n/a And they'll adjunct professors or something like that? Professors.
n/a Yeah. Totally you're staying for 3 to 6 months at a time for the school year. So they need somewhere just stay. So we'll actually have property where we'll talk to the... You know, we talk to you uc Berkeley, and they'll send us clients.
n/a And it's just somebody in the Hr department, They'll just pass our name, to the, you know, the folks that they hired. So cool. It it could be as simple as that. We only have 3 properties in Berkeley. So like, It's not a bunch of them Right?
n/a But they're filled all the time all the times just.
n/a So I just went into Google that that new tool you're talking about. And I said big big tech companies in Houston, which Top 10, this came up. Top 10 Houston area employers, Walmart, Memorial Health Herman, memorial Hermann Health system, He. University of Texas Md Anderson, Mcdonald's Corp, Houston Methodist, K, United Airlines, The thing is it's very those are some scary companies. So can you actually get to the Hr Department of Walmart in Houston?
n/a I don't know. Have to... Maybe we'll just do lab color and I'll try it out. Well, you're here's here's the beautiful thing. Is that if I can't get a hold of somebody I can now go on Linkedin.
n/a And just type in, you know, Houston, Texas, Hr department. What where were we what what case were we talking about right now?
n/a Walmart Walmart. How about that?
n/a There we go. So now everybody that works at Walmart an Hr department, I can now find them on Linkedin, which is like the professional Facebook Right? So then I just have to send out maybe 10:20 emails or 10 phone calls. And then now I at least I found somebody. Now I can pick up the phone and dial something.
n/a And this is exactly what we talked about a minute ago Rob, this is not easy, so people are always gonna shy away from it. But if you wanna to create something sustainable that has a long runway to build. These are the things that you have to do. Like, it's not gonna be easy. If it was easy, everybody would be doing it.
n/a And maybe everybody was doing it now. But I mean, I think that there's... This is a different avenue. And I think that we have to be created with in times of adversity, which is happening in Dallas. You know, we have to we have to think outside the box.
n/a Have you ever heard of the strategy where you mail the a shoe to the Hr director and you leave like a little card when they open it, there's like, a shoe and the card says, I just wanted to get my shoe in the door or my shoe through the door. On and it's a shoe. That was a big that was a big advertising thing that we used to say, like you send shoes to creative directors. And you say I just wanna get my through the door.
n/a You really knew that? I never
n/a did it. I just... It's 1 of those, like talk like Urban legends I'm almost like oh, there's this guy that did and you got a job at the most prestigious ad agency. Alright. So let's talk about Linkedin strategy here because you brought that up.
n/a Are you just connecting with people for free or are you on Linkedin premium and sending mails? And if so, is that worth it to pay for the Linkedin premium?
n/a Yeah. I like Linkedin premium and just so everybody knows like, when you send... You... You're not... If you're...
n/a If you don't have the Pro model and a Pro model. I sound like I'm an Apple Rep. You don't have the pro max 14. If you don't have that you don't have that updated version, it's not gonna allow you to send a message directly to their end inbox. Like, they have to approve you as a friend.
n/a Like, the whole thing the whole part of Linkedin is to be in network, like, you wanna be a network with each other. So if you follow me on Linkedin you'd probably have it's like all the networks that I have, which are travel medical professionals, insurance companies, So Ravi on there follow me.
n/a Good right now.
n/a And you have to be, like, that's what it you have to be in their network, in order to to have that. If you're not in their network, and you have the pro, you can send them a message directly. And again, it has to be something creative. It can't just be like, hey, I wanna work with you, like, blah blah in most people are gonna delete those messages. I get those on a regular basis, like, you don't wanna have that.
n/a But again, like we talked about a minute ago, where we get the names of somebody... That we know works for a company. We can say, hey. You know, my name is Rob. My is Jesse.
n/a I just wanna let you know I'm you know, I own a hosting company, which is a agency that hosts, you know, these... These travelers and whatnot. And I'm looking to actually partner with a few companies. You know, are you guys offering housing for your engineers or for your digital demands or your medical trailers. It can be that simple of a conversation.
n/a But now you have their name, and I always recommend picking up the phone and dialing them for So send them a message on on linkedin, and then pick up the phone and actually call them. And even if you have to leave a voice mail, you can do that. Like, it's just... I think there's something more that some thing that's better about actually communicating on the phone. It gives you a lot more content.
n/a You can hear better. You know, you can't you can't decipher words through the you know, emails and stuff like that. So...
n/a Alright. So I'm gonna try this. I'm gonna connect. I'll get the the email like, the premium Linkedin, you know, I thought I would never use this platform again because I quit my 9 to 5 and I was like, screw linkedin, But now I see that maybe it might benefit my short rental business a lot more than I thought. So we've got medical communities.
n/a We've got occupational staffing company... Occupational therapist staffing companies. We've got construction... Is that something you would also put in indeed, like construction worker, or that to broad?
n/a Yeah. I would do construction work worker engineers or, you know, what else do we type in? Engineers engineers are A really... On the construction side, these guys travel all time. Like, we have a a company called Gall winery in my market, Rob.
n/a I don't know if Talked about be before. Gala winery is this huge winery that has all these engineers that come from other countries. We've got a contract with them where now our houses go to them if their folks are gonna be staying in the... So again, it's like, that's another thing to think about, like, what what kind of companies are gonna have people stay, or come from other countries. So if you're near big wine, if you're near like big breweries, you know, that are obviously large scale, like, they have people to come from other countries to do work to kind of even like Con ag and these, like big, you know, like corporate companies that do things, like Monsanto, stuff like that, like, do want you guys to think about that.
n/a They have people that come from all over the world to work with them. So those are other things look at. Again, these are these are large scale companies.
n/a What about this? Since we're talking about Houston and you're talking about finding the things that make a that drive the the economy, in a city, The medical community is obviously a big economic driver for Houston, But so so oil and gas. So would I go to oil and gas staffing, Houston? Would that be a a thing in in indeed? Or I looking...
n/a Am I trying to find, like, the actual, like, position like, oil and gas 8 Hr?
n/a Yes. Yeah. I actually... I'm gonna I'm gonna... Real quick.
n/a There was a a guy that was in like, 1 of my class, and he Rob, he got a contract with a... A wind milk company. Like this win... You know, like, they have wind mills out middle, Nowhere in Michigan. Literally, Rural Iowa a rural Michigan.
n/a And he got a contract with this company that they send these guys out to fix these huge wind mails. And that's all he does now, and he has built this like. 20 something units in 1 little rural market in Michigan and it's just owning everything. He's 23 years old, man. So like, I'm getting Goosebumps to talking about this right now because it's Don't if he concealer not, but
n/a that's all... Yet. Oh man, That's cool. 23 man.
n/a Yeah. And he's 23 years old and who it literally has a 6 figure business. So fast because he found the little niche. And again, like, the more niche you can get in (this space, the better it is, the the the likelihood of abuse succeeding is is even greater. So anybody can do event...
n/a I you she have to think else outside the box. You'd find the opportunities.
n/a Yeah. So it's basically... You really are just trying to find... The big economic companies that that drive a city. So in La, for example, that might be Hollywood, would that be like, if you're in the La market?
n/a Would you be trying to hit up, like, casting agencies and all that kind of stuff to fill in, like, actors that might be flying home? Is that a strategy or would that be to like, high level.
n/a I think that would have worked worked totally fine. I do think that the higher level properties would probably work better there, You know, higher share property Because, again, we're talking about mixing things down. We're talking about mixing into, like, a specific type of group and only serving those clients. So, yeah, I mean, that works with people in Atlanta that do that. They have a huge business doing then.
n/a Atlanta is regulated with the short term rental, you know, that you can't short term rent there anymore either. So a lot of people migrate (this And I know people that are doing extremely well, on that end, you know, that are housing folks that are in the the entertainment industry.
n/a So the last question I want wanna ask you before we wrap here is you're you're talking about places like construction crews and stuff like that. What did the construction workers be living in the city, (this nut needing? Housing?
n/a Now, like, I think a lot of people think that. And this is why I'm going back to the infrastructure and we're we're looking at specific type of quality, and I'm not gonna say quality. Like specific engineers, or specific people that work with these with these companies. Like I telling you the folks that are doing that did the... What would I say that?
n/a That Dave Buster. I got thought Dave Buster would be a local people. They hire people that come from out of state to come do these things. Because they're only working on these specific parts of the jobs for whether that's engineering or not they do it for a certain amount of time. So big companies will do this, still hire.
n/a These people to come fly out stay for 3, 6 months at a time to get that job done. That happens all the time project managers will come from different areas to work with on these projects because that's what they do. They literally hire these people. So, yeah, again, it's just sticking outside the box and and, you know, really thinking about how can I serve And again, better? Just be pick up the phone and dial them.
n/a I know that I might sound crazy. It's not, and it might seem a little weird to drive by a place and take a picture or even see a new construction happening, You take a picture we'll work truck out there and you just connect with them. But we've had people that drive, you know, even hours at a time, Rob. They'll book our properties say Monday through Friday, go home for the weekend, come back and they do the same grind over and over and over again and that's another thing that we see on a regular basis. Get this like, rural markets, you know, like San Francisco is 2 hours from us.
n/a We have folks that will come from the bay. Come stay down here for, you know, 5 days out a week, go back home, stay down here 5 days that week and doing these projects for, you know, 6 weeks, 7 weeks, 8 weeks at a time. So that fills in a lot of the gaps that we have during the weekday, which is a lot of short term rental, you know, folks have those issue. So again, it's just thinking outside the box. How do we maximize the opportunities to fill and help these these folks that are having, you know, having issues.
n/a That's interesting because I think the interesting thing is once you get really good at this. You can actually start buying your properties once you sort of know that your... The company is gonna use you. So I'll I'll pitch you something here on air. You basically have to say yes.
n/a But I used to rent my parents house on Airbnb in Pasadena, Texas, which is not really a very desirable part of town per s. It's it's fine, but it's, like really closer to refineries. Like a lot... All the refineries in the Houston area, they're in Pasadena. So I would rent their house not thinking it was gonna book because it's just like a small little town next to refineries, and we kept getting bookings from oil rig oil rig people that were like, in town for that job.
n/a And so my pitch to you is what if we found like a multi family commercial building oil in Pasadena, and we just locked down, like a contract with all of the... Like, there are, like, so many refineries there that to me seems like that'd be like a a slam dunk strategy.
n/a Yeah. And that's exactly what I'm talking about. It could be an oil refinery. It could be a, you know way... Wind middle turbine company, you could be a nuclear power plants.
n/a Like we all have these in certain spaces. So, yeah, Rob, If there is a 20 unit building, I am 100 percent down. And you can... The cool thing about this is we can do it backwards. We can actually go to those companies now and say, hey, we're looking at what this looks like right now.
n/a We see the economic opportunities for you guys the growth and expansion. Where your where does your company look to go in the next 5 We actually get to grab that information from them and say, okay, How many people do you have traveling monthly? How many people do have traveling yearly? Is that expected to grow over time, chris you know, is this something that's gonna continue to happen? Do you see your 20 23, 20 24 expansion in (this space.
n/a So we're now taking assets that we can buy and buy them when we already have contracts and things put in place. So... Yeah.
n/a Yeah. That's what I'm saying. Like, it, you can reverse engineer the mid term rentals. Strategy. Where instead of buying it and then find the contract.
n/a You get the con... You get a good rapport with the company that makes you feel good about going and buying this, you know, risk year property. But then again, if it's a 20 unit, it would probably work as a long term rental anyway, so we can just sort of super charge the returns by putting short term and midterm rental. Because I think that's like the best model is to have, like, a 20 unit, 30 unit place and it's a third a third and a third and you just have like a very dynamic diverse set of tenants, guests, you know, roommates, whatever you wanna call it inside that building. And
n/a smartest move, and I think more people are gonna start doing this. I think that we're gonna have to get acc, you know, in, like, 20 24, 20 25. It's gonna be harder to find deals. We're seeing that now. And I do think this is kind of like the wave of where, you know, smart money's has been doing this for a while.
n/a So it's like, for us now, small independent operators, think outside the box, you create these relationships. So we can rob you and I can... So get a contract and then literally probably raise capital in, like, 2 days. Because the the net operating income gonna 2 x or 3 x, it would be
n/a traditional. Immediately.
n/a Yeah. Imagine... In know a year, we could sell that for way more than even got it for, because it's already operating as a business with the contract. Plus the banks are gonna loan (this money based off of those the L. Right?
n/a The letter of intent. So it's like, ma'am, you're... Yeah. It's this is it's a good move.
n/a Well, I think we found it. Let's do it, man. I'm excited. Thank you so much for... I call...
n/a For everyone at home. I texted Jesse, like, 2 hours ago. Like, you wanna do a... Podcast for my channel. He's was like, yeah, what send me a link.
n/a And then we we didn't really talk about what we were gonna talk about until, like... He's, like what do we talk I was like, short term rentals is getting banned in Dallas and how people can pivot. So thank you for bringing that. If people wanna learn about you. I connect with you.
n/a Do all that kind of stuff How can they learn more about you?
n/a Yeah. Head over to my Instagram at the real Jesse vas you can find me there or here on Youtube at the real Jesse vas too. So... Yeah. I man, I appreciate a last minute Impromptu 2 conversation about Chipotle burritos, But hey.
n/a Yeah. And then an impromptu pitch to go by a 20 unit in Pasadena, Texas. A place where most people probably wouldn't, you know, think about investing, but Here we are. Create crazy Latinos. That's what we do.
n/a Crazy Latinos, find stuff. Besides.
Rob Just a quick final plug here.
n/a Thanks for watching. In today's episode
Rob of Rob built, a little bit different a little bit longer, but hopefully you learn something. Remember Jesse Vas is gonna be speaking at Host con in Houston, Texas, October 20 ninth and t. It's my short term rental conference. Click that link down below to get your early bird tickets, and I will see you at Hosts con. So excited to meet you guys.
Rob