But let's talk about the nine that you sublease.
So exactly what does that mean? What does that look like?
Yeah.
So I always tell people when they're like, there's really two strategies
that I look at, right?
The first is to invest for cash flow.
And this is a really good strategy for people that are getting started,
like nanofibers to want to replace or 9 to 5,
they want to get into their first deal.
It's their first rodeo.
They don't have the capital to put.
It's 15, 20% down.
Plus closing costs, furniture, appliances, of course, applies.
So the great the best way to start there is subleasing REITs where they rent
property, they pay the first month the deposit
just like in a normal lease they get permission
to operate the property as a short term rental in writing.
Right.
Because all these agreement say no subleasing, but we simply talk to them
about the business model, why this is actually a better opportunity.
And so then imagine you're renting a property for 2000 a month.
If you're charging 200
a night at ten days, you break even at 20 days you double in.
At 30 days, you triple.
And there's a lot of pricing automation softwares like beyond pricing.
They look they look at airlines, hotels and events
and they basically adjust based on supply and demand.
And they only charge like 1%.
So this is how we are able to maximize, you know, the revenue.
And so this strategy allows people to get started and strictly invest
for cash flow.
Obviously, they don't get appreciation, no depreciation,
no mortgage pay downs, but they get the cash flow.
They get to replace their net of five
once they have like 3 to 5 of those
and they really accelerate in their capital,
then I tell them, now start buying property
so you can get the appreciation and create wealth.
That's a really good strategy.
So if somebody is going to let you sublease their property for one,
how hard is it to find people that will do that?
It is challenging, right?
It's not like you call a landlord and they say, yes,
you might get a yes like 20, 30% of the time.
But whether you're flipping, wholesaling, acquiring, doing multifamily syndication
like the same, yeah, it's all the same.
It's all the sales game, it's all a numbers game.
And that's what I tell people is like 100% of the people that never do
their first, you'll never do their second deal.
So just get your foot in the door.
Be persistent. Once you get that first one.
It's not even about how much money you make, but
it's about who you become in the process because now it became real.
You did it.
Now just rinse and repeat for the maintenance staff.
If somebody lets you do a short term rental, do you handle that?
Because obviously you're going to have more maintenance, more.
So we we have like on call usually two maintenance people
that are available, right?
Just like any handyman.
And yeah, if anything happens, if there's a small leak or any repairs
we want to handle it
the same day between the window of ten
and three, which is check out and the new guest checking in.
That way we can provide a, you know, five star experience for the next guests.
So we'll handle it if it's something that the guest creates, like
any damage, we'll obviously charge them just like a hotel would.
And if it has something to do with just the property's wear and tear,
then the owner would be responsible.
So let's talk about how you transition over to the
the student coaching side of things, really teaching other people.
Like when I hear people
going from full time to part time or the husband quits or the wife quits
and they can spend more time with each other,
they can volunteer for their kids
soccer program, like whatever it is like that is like self fulfilling.
And I feel like when my body leaves this earth, like that's
what's going to be left behind was the the impact that dent
the impact that I left in other people's lives.
Most of our students, probably 95%, are coming in to like sublease.
That's like the shiny opportunity.
There are like sublease arbitrage, right?
Being able to, you know, create financial freedom fast.
But yeah, we do like a lot of mindsets.
So like we have six coaching calls a week, Monday
through Saturday and we have coaches like people that started as students.
Once they created six figure multiple, six figure businesses, they became coaches.
So Mondays is like a mindset coaching only
and number I heard one time from a mentor
like sell them what they want but give them what they need.
And so people come just to create, you know, financial freedom.
But we give them so much more because it's really personal development.
Who they become in the process are the mindsets.
So we do a lot of mindset work on those Monday coaching calls
to make sure that we can help them attract abundance.
Right.
Because like Jim, Ron said, success is not something that you chase.
It's something you attract by who you become.
A little bit different than my market, you know, but, you know,
not more the long term multifamily market.
But yours is really competing against the tourism.
Yeah, tourism hotels. Right. That's Intel. So.
So that's part of your coaching,
you know, where are you going to be and what are you going to do?
What are some of the
kind of the hottest areas that you see?
I mean, people are moving all over the place, right?
Work from home, of course, is one thing, but also they're just flat out moving.
So and we're seeing certain areas bulge and other areas not.
Yeah.
So what are you seeing now where you got a thousand students
and what are they seeing. Yeah.
So it's usually like the big states, right?
Like California, Texas, Arizona, Florida,
like these are some of probably like the four best states, I would say.
So we do like a lot of marketing in those areas to bring in students.
And this is where, you know, yes, rent can be 3000, 4000, 5000,
but those are the properties doing 815 K a month.
So it's
some of those bigger states with a lot of a big population, a lot of tourism.
I mean, Arizona is like really hot.
One of our head coaches lives here and they've got like 15 Airbnbs here
that they're either own sublease or managing for other people.
So this is a gold mine here.
So let's talk about the time like like, you know.
Yes, the time most people are working and they're trying to figure out like,
you know, maybe they're working 50, 60 hours. Yes.
Can they still do this? Yeah.
So where it takes the most amount of time is in the actual launching to get
furniture, appliances, decor, supplies, pictures for like a property of that size.
Like it would easily take like five days with like two or three people, like
working on it. Okay.
A lot of assembling. It's a lot of time.
So when people are just getting started,
for the most part, they launch it themselves.
So I would hire out a manager that could literally launch the whole thing for you.
And that's what I do every time I focus on the acquisition,
whether it's a purchase, a sublease and then a hire, somebody that literally
puts an Excel list of all the furniture, appliances, decor,
they order it, they coordinate everything going in from Amazon.
They oversee the team that's setting up everything physically
all the way to creating the listing
on Airbnb, coordinating the pictures like literally start to finish like.
So most of the time I look at the property that we have, some
that we've never even seen, we've just done everything virtually by hiring
somebody in those cities.
So depending on how much time there, how much you know, the value of their time
will dictate whether they do it themselves or if they hire somebody to launch it.
Let's talk about reviews that occupancy because there and rate there's
a direct correlation between all those things
and I think a lot of times people that are inexperienced
you know our oblivious to that like how important all those things are
how do you manage occupancy rates and reviews
because that kind of attracts more occupancy.
Yeah. So let's start with the rate.
Typically what we do is we take the desired revenue,
which is double whatever we rent or double whatever the mortgage is.
If the mortgage or rent is three grand
and our goal is to make six grand would divide that by 20 days,
we want to be able to double our numbers at a 66% occupancy
so that there's enough space to be able to triple.
Right.
On the review side, I've learned that it's not so much when things don't go exactly
as the guest wanted to, but it's like, how long does it take you to fix it?
So let's say that the guests show up
and they put in the code into the keyless entry
and the battery died and it's not wired.
And now they can't get it, but they call you
and then you send someone and someone's there
in like 8 minutes or 10 minutes are like, okay, cool.
Like someone got here, they haven't.
It's when you take 2 hours to get that and they're tired.
So a lot of reviews, it's just about really creating solutions
as fast as possible.
So one of the like our KPIs for our communication
coordinators is responding within 3 minutes to all inquiries.
And that's why we usually, for
you usually will hire somebody in Mexico for like a 12 hour shift
and then the other 12 hours, somebody in the Philippines.
So when it's daytime there, it's nighttime here,
and we can provide like 24 hour meetings and research for you.
Yeah, well thought through.
Those are really important things.
So I was going to ask like, what are some other
secrets, Airbnb secrets like well, they'll give it away too.
But I know you got a secret, so I got a really good one.
And I feel like some people are talking about the economy and a potential
there's potential that and what you know, what would happen to tourism.
And so one of the things that we've done right
is by focusing on the right properties in the right location with the
with the amount,
the right amount of bedrooms, bathrooms, square footage,
amenities, location, we really try to make our properties
the most marketable properties in the area.
And by doing so, we attract a lot of nurses who book for weeks
and months at a time.
There's government bookings like I've had the government book
families who are like political asylum and they pay like 45
days, two months, three months, top dollar, no discounts.
They just book it right now.
Have a family staying at one of our properties
that got booked through an insurance company, a relocation company,
and they paid $37,000 for four months.
Right. It's an average of 9500 a month.
My mortgage on that one is 2800.
So I got a 3.5 with the mortgages and there's no cleaning.
There's nothing to do.
It's 122 days bookings, right?
So, yeah, insurance, corporate bookings, nurses.
And by making your properties the most marketable,
the best properties in the area, they book through Airbnb.
You don't have to do any marketing. I don't do any ads.
I don't contact these companies.
They just book through the Airbnb platform.
So this is a little bit of like a recession proof strategy
where you're not just relying on tourism because they'd much rather stay in a home.
You know, a lot of our properties have pools, Jacuzzis, game rooms.
We want to be able to create a staycation experience where they have a great
a great experience in the home without needing to leave the home.
And when you do that, you attract all these types of book.