Cold open

SPEAKER_00 0:00

Welcome to Live Let Thrive, a podcast about the Airbnb life, the share economy, and everything in between. Here are your hosts, Micah and Steve.

SPEAKER_02 0:11

Hello, hello, hello, and welcome back to another exciting episode of Live Let Thrive.

Episode 332 - short, mid, and long-term rental updates

SPEAKER_03 0:22

What is up, Micah, man? I'm chilling, Stevie Stacks. How you doing, bro?

SPEAKER_04 0:27

I'm doing good on this episode 332 of your favorite short-term, mid-term, long-term rental podcast in the world coming at you from Fort Worth in Arlington, Texas.

SPEAKER_02 0:41

Let's go, man. Let's go. It's been a minute.

SPEAKER_04 0:44

It's been a long minute. So we're going to talk, of course, short-term rentals, midterm rentals, pad split, all that fun stuff today. I want to get into something with you. Because I I hardly go on uh uh Facebook anymore. I go on there to go look up potential tenants, right? Sometimes I'll like uh this is a unique name. Let me see what they're what they're trying to do. As far as um pad split tenants or corporate or or or short term, sometimes I'll go into Facebook. I'm gonna look them up, see if I can find some some dirt on them, right? Sometimes you find some mugshots, man. It's crazy. Uh so I found a few mugshots, but anyways, I saw a thing, I mentioned a couple things because uh because I just scrolling down a little bit, like I said, I hardly get on there, but I saw one something that you put on there that um and I want you to elaborate on this. You were getting hyped up about a rap battle between no limit and cash money, right? It's a lot they do these rap battles. Maybe you could explain to folks at home what these rap

Master P vs. Cash Money: Leadership lessons from the Verzuz battle

SPEAKER_04 1:45

battles are, and I want you to do this too. So I want to I want to say who you thought won the battle and how how this could help someone in business, you know what I'm saying?

SPEAKER_03 1:56

Oh, you're talking about okay, so uh he's talking about the verses. So versus yeah, yeah, yeah. It got real big during COVID, but kind of fell off for a while, and then they kind of re-just rebooted it because they did uh Cash Money Records versus uh No Limit. You know, No Limit's probably my favorite record label of all time because I love Master P and what he did with it. Um but uh yeah, yeah. So I made a uh I did some AI videos, and everybody knows that's what I've been on real hard is you know promoting through AI. So I did an AI video. Um basically of me, you know, in the full camouflage no limit gear with the tank behind me. So I think that's the post Steve's talking about.

SPEAKER_02 2:31

Yeah.

SPEAKER_03 2:32

Uh so yeah, so I did that. And uh yeah, I personally thought no limit won. Um everything rises and falls on leadership. So you know, leadership, no limit probably has the better leadership, but I do think they won. Um, you know, hit for hit, you know, it could go either way, but I think uh No Limit probably I think people forget No Limit probably has. Like I think in the year 1997 they released uh 20 albums, which is absolutely insane at that time. Uh uh, and I think people forget that, but I think they won. But the versus was uh just knowing your competition and everything in Rise in your business. This is the biggest thing I tell people about that versus if you looked on the stage, and even the people from Cash Money said this about no limit. He was like, uh BG, shout out to BG. I actually hung out with him in Vegas one time, like two years ago in Vegas. I accidentally ended up in a VIP section and hung out with BG from Cash Money. Wow. Crazy. And then like two chains was like 10 steps away from me. But uh, yeah, this is like three, two years ago. But he said, he even said he said, as far as like the organization, he goes, they destroyed us. He said, Man, they came in, they had their camouflage outfits, they were all together. He was like, Oh man, I tried to get them to do it. He said, Man, they weren't trying to do it. He was just like, you know, and what I always tell people is everything rises and falls on leadership. Um, if you notice, half the people from Cash Money weren't even there. I mean, Baby was into it with Turk, one of his artists, you know. Uh, that's the leadership side of it. You know, he most of the time, you know, a lot of people say baby ran off with their money, you know. Master P, what he did was he actually taught people how to own businesses, taught people how to, hey, if I'm gonna bring you in, you know, I'm gonna show you how to show you the rope so you can have your own one day. You know, like Mia X is a professor, you know, the under P's

How Master P cashed in on 50 Cent's platinum tour dates

SPEAKER_03 4:16

leadership. Snoop Dogg's a business mogul. Um 50 Cent. A lot of people don't know this. Master P is the one who sent 50 Cent on his first tour. And 50 Cent talks about it, you know. He's like, he learned a lot of business game from P because you know, if if I don't know if you guys ever heard the story when 50 Cent first blew up, um, well he when he was on the rise of blowing up Master P song and he was like, Hey man, I think you're really talented. I'm gonna pay you for eight shows, and if you do these eight shows for me, so he pays him this cash up front, right, for eight shows. And he goes, Man, 50's like, yeah, man, I did these four shows, right? He's like, cool. He goes, after the four shows, Master P comes to me, he goes, Hey man, we ain't gonna do no more shows. We're just gonna hold off for a minute, right? He goes, Pete comes back a little while later, he's like, Hey man, you gotta finish up those four shows. And 50 Cent was like, I did it. But he was like, that was the genius behind him, because when I had to do those last four shows, I had already sold two million records.

SPEAKER_02 5:12

So the first, the last four shows, noop uh 50's like this big dude on top of the rap game, but he's got to do these four free shows for Master P because he already picked them no market. So, but but he said he learned a lot from that.

SPEAKER_03 5:26

But uh yeah, that's what that's what the verses. I think that's kind of what you wanted me to relate that to, right?

SPEAKER_04 5:31

Yeah, yeah, because I heard some I I talked to a buddy at work, he he he had watched it too, and he had similar, you know, because he said they've the uh no limit was more as a team. And he said similar, like you were saying, you know, Turk and them was having some you know issues, and it wasn't as as much of a team effort, you know. So I was like, yeah, that's uh and you always talked about Master P being this business genius.

SPEAKER_03 5:54

Yeah, yeah, man. For sure, man. He is.

SPEAKER_04 5:58

And so yeah, the leadership, and that's that's cool. I didn't know that about about um about 50 Cent. And that's definitely letting your investment season for a while before you before you cash in, right?

SPEAKER_02 6:10

He cashed in his chips right when he's at the very top. He's like, hey bro, we gotta do those last four shows. And 50 was like, I did them, but then he was like, damn, I already sold two million records.

SPEAKER_03 6:19

Like so and what 50 Cent was, most people would look at that like oh P got over him. He was like, nah, man, I had to learn. Like, oh, that's how you, you know, he he's Master P really seen the vision in him. He's like, this dude's gonna blow up, and then he just kind of used it right then and there. I was like, man, that was smart.

SPEAKER_04 6:37

So he got a high return for his investment, I'm sure.

SPEAKER_02 6:39

Huge return on investment. Imagine 50 Cent top of his game, and he's doing these four shows. You don't know it's free, you're paying all this money. It's going straight to Master P, bro.

SPEAKER_04 6:49

So oh man. That's cool. That's cool. And now, and now um uh 50 Cent's doing all the the movies and stuff and TV shows.

SPEAKER_03 6:57

Business mogul, man. That's what I say, man. Everything rises and falls on leadership, man.

SPEAKER_04 7:02

And Snoop was broke when he got with Master P.

SPEAKER_03 7:05

Yeah, he said it. He taught me how to own a business, man.

SPEAKER_04 7:08

Straight up. That's cool, man. Uh taking care of your employees. That's that's important, right?

SPEAKER_03 7:13

Yeah, there you go. Taking care of your employees, man. I listened to a little good podcast by um John Maxwell. He always talks about the best leaders le build the people up around them. So then they can go out on their own. Because people, if you build people up, a lot of people like, oh, if I build them up, they'll leave. That actually builds brand loyalty, they'll stay by you. You know what I mean? So yeah.

SPEAKER_04 7:34

That is true, man. Um man, so much to talk about. Uh what have you been up to, man? What you been up to?

SPEAKER_03 7:40

That's what I was saying. We gotta do some catch up, man. I mean, I don't know how many how was when was

Closing the duplex, cost segregation, and $100,000 price drop on 12 units

SPEAKER_03 7:45

the last podcast?

SPEAKER_04 7:47

Man, it's been a few months probably.

SPEAKER_03 7:48

Okay, so if it's been a few months, man, I didn't went to Cali. I was out in um I was out in Huntington Beach, California for like a week with my mentor. I was out there.

SPEAKER_04 7:59

Thatch and wind.

SPEAKER_03 8:00

Yeah, yeah. Out there with Thatch Wind. Uh man, that was really good. That was like refreshing for the soul. Got to hang out on the beach, and then just around all this energy, this positive energy. Me and Mahogany were out there for a week. We came back, we closed on our duplex. Uh, our cost seg is we're finishing up our cost segregation study. Um this weekend, me and Mahogany, we've really been trying to tag team the business, like going hard on tag teaming it. This weekend we're gonna run our numbers um and see if we can hop out of the short-term rental space um and just mainly go just long term because our cash flow from our uh long term should be able to really make bring us some really good cash flow, but and it's also keep removing the headache. We're we're we're really good at we're doing the midterm thing. Right now it's slow. Um and we know we do the short term in between, but it's slowing up. So, you know, we're thinking hopefully by the end of 2026 we can probably be out of the short term, midterm, and just do all long term and focus on big buying, you know, bigger deals. Cause right now we're trying to close on the so that 12 unit apartment complex I told you about, I think I talked about it. It um they took it off the market, you know, when we were doing our 1031, they took it off the market because they couldn't get what they wanted. They just put it back on, but they lowered the price by like a hundred grand. I'm like, so I hit up my boy, I hit my boy, I hit up my lender, my lender's like, okay, he goes, My my only issue, and I'm gonna be real, my only issue is they didn't take your first offer, which was at 580 for it, no, five twenty, any whatever it was. I think it was at four five, it might be five twenty or something. They lowered it to five twenty. And he goes, Hey, and they still aren't he said it's still for sale? I'm like, Yeah. He goes, Okay, well he and he like gave me the full rundown on multifamily. He's like, make sure you walk every unit. He goes, and uh what you could do is walk every unit and see what you can do to add value, you know. So I'm doing that right now. What I am finding out is I think this guy he owns it outright. So I tried to do seller financing. I was gonna have him do the first hold the first position so I didn't have to put anything down. But of course he didn't want to do that. You know, he's older, he was like, nah, I just want to cash out. But if the place is sitting there, so I'm knowing thinking something's wrong. The only thing I know for that's wrong right now is that he's undercharging on rent. Like he's like, even if he was to rent these places section eight, he's charging like three hundred dollars under that. So when I was running the numbers on it, the guy was like, Man, if you was to raise rent just to like meet section eight requirements for one bedroom, one bath, he was like, Man, we could you buy it at 520, he goes, Man, we can get the valuation of this thing up to like one one uh one mil. You know, because everything on you know on that side of it, that's why I'm trying to get in a multifamily, it's value valued off of what you're bringing in. So that is what I'm I'm working on right now. I'm trying to get like a lender and also see if I can, you know, making sure that the section eight numbers will fit in this area because like across the street's kind of like a halfway house. So I'm like, maybe that's why he's charging. But but even at that, he could still be charging section eight prices over there, and he ain't even doing that. Um so yeah, just a lot of learning with that, man. Trying to close on that, got my duplex closed up, um, and then just doing some wholesales here and there and just stacking more really stacking reserves and then you know

Escaping the short-term rental headache for long-term cash flow

SPEAKER_03 11:21

trying to get in the multifamily. But yeah, I'm trying to definitely hop out with short-term, mid, and go long term.

SPEAKER_04 11:26

So what what comes what what I heard right there was the headache of short-term rentals. And what do you what do you mean by that?

SPEAKER_03 11:34

When I say headache of short-term rentals, it's like constantly, okay, this person has to come in, that person has to come in. But if I was like on long term, like my long-term tenant and my section eight tenant, that's like the least worried about property, the money comes and you just take it, boom, and it's there. Short-term rentals and mid even midterms are good because you you know, you get that three, four, or five months, but then between that, when now okay, midterm ends, now you're trying to find that next client and you're advertising. And now not in a market like Dallas, Dallas is a little bit easier. Um, you know, you're trying to find that next tenant. It's a little bit gets kind of time consuming. So I'm just kind of like, man, if we can switch these to long term, so we're gonna, me and Mahogany are running like the numbers like okay, if we switch these to long term, what's our cash flow? Okay, and then if the well that cash flow ease us up, we can just focus on getting better deals. We read the book One Rental at a time by Mike Zuber. Really, really good book, by the way. Um, he signed it for me. Well, matter of fact, I met him while I was out in Cali and he signed it for me. But um, yeah, man, I'm kind of pushing more towards that way.

SPEAKER_04 12:39

How about yourself, man? Oh, go ahead. Well, that's funny how it comes, it came back all the way back around. Like you started off your real estate journey by renting to a long-term tenant, right? Yeah, and then you got into short-term and then arbitrage and then you know, corporate and everything, and then going all the way back around. I want to just go to short to long term. It's easier. Lock them in and then you're done with it, right?

SPEAKER_03 13:01

Yeah.

SPEAKER_04 13:02

And so that I don't know, it's a trip. It's cool, because I mean this whole show started on the on the premise of being a short-term mental show, Airbnb show, right? Where you change up the the description of the title a little bit.

SPEAKER_03 13:14

Um, but we still we can st we still gonna do it, but I mean, because I'm still on the fence about it. Like once I run the numbers, I'm gonna be like, man, because you have to look really calculate headache in there as well.

SPEAKER_04 13:25

Yes, you do. And I'll and uh it automatically made me think of

PadSplit learning curve vs. established short-term systems

SPEAKER_04 13:29

the the pad splits because the learning curve on those, you know, uh getting getting those up and running, it was it was more it was even more so than um than short-term rentals because I already have my my short-term rental machine in place, right? They handle everything. My my team. And I mean, nuts to bolts, man. They handle it all. I I mean I'll I'll get a message from that. I'll you know, if if something like a major maintenance issue and they need something, whatever. Small maintenance issues, they know who to call, trash removal, they know who to call. Someone won't leave the place, they know who to call. You know, everything. Yeah, and the cleaners and all that stuff actually get angry if someone, if like a cleaner or someone call calls me. What the hell are you doing calling me? Call the team. You know, like, well, don't you know what's going on? No, I don't know what's going on over there. Yeah, if it's bad enough, yeah, it'll come to me. But you know, so I have that in place already, right? And you like you said, shorts can be a lot of headache. That's why I built out the team, they handled it 100%. And um, so when I started, I said, okay, I'm gonna learn the ropes on the um pad split. I started having to do crap myself again. And that's what I didn't like, you know. I said, Well, I can't just okay, start up a pad split, here you go. You guys, you know, handle it from here. No, I have to learn it myself, so I know what to what to tell them to do, right? And that's the painful part. That's the painful part. But but after now I've got both units, uh both houses full 100% and making good money. And um, I got you know, I'm screening people better. I I got rid of some bad, you know, ones that didn't fit, bad people. And and it's and it's and it's smooth. And it's like it's kind of like it's like a hybrid of short-term and and a long-term rental. Short-term in a sense, because they can stay, you know, usually most of them stay uh three-month terms, right? But then they extend out to about a year, but they can choose the option if they're coming for furnish finder or something, they can do week to week, and they'll pay a premium, but they can do week to week. So it's kind of like it's it's a hybrid. And once, you know, I was discouraged. I was like, what the hell am I doing? You know, I wanted to jump out because all this crap I was dealing with. Uh, it's it's just but once I got it kind of like I'm not saying I got it 100% figured out, but I'm doing better now, just in a few months of doing it. I know what to do, and I'm I'm putting good people in place and I'm I'm making the units better. Uh got two houses that are, you know, six bedrooms each, all of them filled up. It's kind of like a little bit like multifamily, right? Got like a little hotel there, or the or um, yeah, multifamily. And um, so I'm looking forward to getting another one. Because now I got that all that knowledge I'm gonna put into the other one, and now the team is handling the maintenance requests and and messages from the people and stuff like that. I'm brought in my if I have to, but the team knows to send send the the you know uh handyman out to go fix something or or whatever needs to be done, right? So, anyways, it's the learning curve. It's it's everything's really hard everything's hard at first, right? You're gonna suck. Any new thing you try, you're gonna suck at. But you stick with it through the headache, through the bad, through the good, all that stuff, and and then um and you learn it, it's it's another tool for your investment tool belt, right?

SPEAKER_03 16:44

Sure. There you go. And and then my question, because you you said a lot, a lot there, a lot that I have questions about too. Because I'm happy you brought up, yeah. When you learn something new, you can't just outsource it, you gotta figure it out first. Um with pad split, you said you got rid of some

Evicting the tenant who punched glass and broke into a room

SPEAKER_03 16:59

people that didn't fit. What tenant issues have you found with pad split?

SPEAKER_04 17:03

Well, I had I I probably brought it up uh on a show where I was, you know, one of my what I was without you on. You did you work yeah, I think the last one. But I got a crazy dude out of there.

SPEAKER_02 17:15

That that was this is good. This is content we need.

SPEAKER_04 17:23

Um but it's good, it's good to know because this guy, and I'll and and it helps. I'll help y'all, uh listeners out there, because you you'll it'll help you learn how to how to deal with situations like this. So, this guy, a young dude around 24 years old, you know, worked at Amazon, uh, just kind of stuck to himself, quiet dude. Uh, he um you know, he was the first tenant I let in. And I had red flags from the beginning because I said, you know, I'm gonna do a FaceTime. I want to see this guy, I want to see who's trying to book my house, right? My Arlington house. And he answers the FaceTime call without a shirt on. I mean, at least put it at least put a damn shirt on. You get an interview with the you know, potential place you could get a rent, right? And um, no shirt on, you just hey what's up. Uh and everything I'm asking him, just one-word answers. So uh yeah, you know, you you've been on Passport for a while, right? It's showing here you had you know a few places. Yeah. You know, just real short one-word answers. And so uh you you know, shows you pay rent on time. Yeah. Just and I'm like, okay, well, let me, I'm gonna think on it. You know, I already had red flags. I didn't like it. It's got good vibes from the guy.

SPEAKER_01 18:35

Yeah.

SPEAKER_04 18:36

And I was like, and he's like, hey, uh, if you don't want me to there, just go ahead and deny me now so I could choose a different place. You know, like he didn't give a damn. If I chose him, but he put in an effort, you know. Not even put in an effort, no smile, just blank face, just like whatever. And I was like, Alright, well, let me think this through, you know, and and what what happened was I told I was telling myself, I was like, okay, I think I I think I denied like one person before him or two, and and I was just like, yeah, I gotta let somebody in this house. Maybe these are the pad split people. Maybe this is what this is the norm for pads split, you know, young dudes like this that don't give a fuck. But but but, anyways, you know, I let him in the house, and everything was fine when he was by himself when there was nobody else there, right? You know, I mean, and then all of a sudden, you know, tenants started trickle in. I started getting more tenants, and then um the homeboy was always walking around without a shirt. It looked like he was in his drawers, so I don't know if he was little shorts or something, man. He was just a weirdo, and um and he he put a little kiddie pool in the backyard. I don't know, it was weird, man. And it's like he's chilling in a kiddie pool, and just kind of antisocial, not you know, he stuck to himself and stuff, but like the first major thing that happened was um uh someone another tenant told me, hey, um the the cabinet below the sink in the kitchen is is busted into pieces, it's just sitting there on the ground. I was like, Well, that's weird, you know? And uh what happened? It goes, I don't know, it was just like that. And he go, and he said, um, but it goes around that same time when when that that happened, that you know, they have a group messaging system. They can they can message each other inside a pad split where I can't see messages. You can you can you can message your pad mates, right? And I can't I can't see those messages. But um, they said, yeah, the um that and there and people already had like you know, he's kind of weird, you know. They kind of started you know telling me a little about him. And he said um he he sent a message to the group around that same time when that thing got busted. He said he quit touching my shit, you know, to the group like that, you know, cussing at him. And I was like, what the hell? So I texted him and and then I called him and I was like, hey man, did you did you bust out that that that thing? And and he's like, Oh, well, what happened? I I just opened it and it fell apart. You know, he's fucking lying to me. He said, But I'll pay you, man. I'll pay you for it to fix it. He said, I'll pay you uh 30 bucks. I said, No, I said, Well, my handyman's gonna fix it, it's gonna be 50 bucks. I said, You can't, he goes, I said, also, they said you sent a message to the group, don't touch my shit. And he just didn't even answer the question, you know. And so he just I was like, you can't be cussing at people on the on the group chat or whatever, you can't do that. Okay, you know, one of those things. And so, like, a few weeks or a week or so later, um another incident happened where he was going inside the house. I mean, I I have the camera, you know, in front, and I have the camera in the back of the house. And well, I got a I got a call from one of the the the girl that rinsed the back of the back of the house, and she was saying that, hey, my uh it looks like my tire has a flat, it's a brand new tire, and this and that, kind of insinuating someone must have sliced her tire or something, right? And so um I was like, well, let me check the camera. I didn't see anything on the camera because the way her car was positioned. I couldn't see what's going on. It was at night. But that same night, that guy walks in the house. You see him walk in, and all of a sudden you see the door just like slam, like someone slammed the crap crap out of it as hard as they could, right? And it's so hard, it just came, it just bounced right back open, you know. And I was like, what the hell? And I see the the padmates come out after that. Like, what the they heard like a big bang, you know? It's like, but it was that guy. And I was messaging, I was like, dude, I was like, are you are you did you slam the door that night? Why'd you do that? And and he just ignored my messages and calls, right? And I was like, this mother lover. And I got a lot of things going on. So I just I kind of, you know, I should have acted at that moment, but the final straw was like, it was probably like a week after that. I see the same dude go inside the house, the door closes behind him, and all of a sudden you hear boom, boom, you see the glass bust out. So there's there's the the wood door and it has three little glass panes, right? Three little glasses where you can look through. Yeah, bro. Busted the glass out. Well, someone actually how I found out, someone told me in the morning, hey, this there's glass all over the front of the of the you know, front of the patio, and the and the and the window, little windows busted out on the door. I was like, oh shit, let me check the let me check the camera. And sure enough, it was that same guy. He walked in, closed the door, and he busted out the glass window. And so I'm like, dude, you gotta get the hell out of my house now. You know, I was like, I'm messaging him. I said, You gotta leave now, this and that. And he starts putting in his transfers to another passplit. And I was like, cool, he's freaking leaving. I don't have to worry about eviction and all that crap, right? And um, one of the girls at the places started putting some comments on him, like, hey, you know, I don't feel comfortable with this guy, this and that, putting it out there in the public comments. So I think whoever was accepting, gonna accept him, cancelled on him because it showed him like a few times trying to transfer out, and people are canceling on him because I guess they're reading the reviews on this guy. Oh, this guy's crazy, right? And so I'm stuck with him now. I was like, I'm stuck with this guy, and so, anyways, I um oh, and right out like a few days after that, he goes into uh one of his uh uh uh a padmates there, a cool dude, you know. I don't say their name, but he's a cool dude, cool brother, laid back. He just likes to be happy all the time, you know what I'm saying? Just a cool dude. He does it in his car, that's fine. You never know. He just likes to be happy, and um, and he um but he called me up in the morning, right? And and I'm at my day job, and hey Steve, you know, this so-and-so, you know, he just pounded on my door this morning and the door busted open, and he just standing there like an idiot. And I'm like, what the hell? You know, what the F. He's like cussing. He's like, he went, he turned pretty gangster real quick, man. I never he's like the most nicest dude ever. And he turned gangster quick. He's like, This mother lover. And um he he's he just sits there and I said, Dude, what you what are you doing? He said, He just sits there and looks at me and goes, I did that. He just I was like, Man, I'm gonna kill this mother lover. He didn't he started going, he's turned street real bad, man. I was like, Oh, dude, just don't do anything crazy. I'm gonna get him out of the house, don't worry, man. But he was fired up, dude. He said, It's funny, and I see the phone call because he's walking out in the front, just pacing back and forth, all pissed off, right? And um, so I'm getting passpitable, I'm doing whatever I can, and they ended up you know terminating his passport membership. Still, I need him out of the house, right? And um, and luckily, because he kept saying, Well, Passport says I got 14 days to notice to vacate, but they got like a notice to vacate thing. I said, I don't care, man. He goes, I'm gonna go over there with the three-day notice for the courts, you know, you're getting out of my house, and this and that. And I posted it on the inside of the door. He was there when I walked when I got to the house to hand to put that stuff in, and he was in the oh hey. Uh uh, I was like, he's like, is that uh is it cool if I leave tomorrow, blah blah blah after work? And I was like, Are you gonna be gone? He's like, Yeah, I'll be gone, man. I was like, Well, what the hell? What are you doing all this stuff for, man? I was like, what are you busting out the glass and doing crazy stuff? He's like, Oh, it's just one of those things, just a crazy, no expression, just like that's some weirdest stuff, man. So I had to like, you know, I had to put the three days notice, I had to get Pas Split involved, and they had to like cancel this membership, and all I mean, it was it was just whoo, it was an event, man.

SPEAKER_02 26:35

It was like you had Carl from Sling Blade up and what Carl's cool, man.

SPEAKER_04 26:44

Carl's cool compared to this guy. Yeah, yeah, yeah.

SPEAKER_02 26:46

No, you you had you had Doyle in there, man. Yeah, Doyle. Oh shit, man.

SPEAKER_03 26:52

So, like, so that's I I I wrote out a bunch of questions because you know that's a really good story. And let me actually kind of loop you into actually something else I've been doing. So I had this new client she wanted me to manage for her, right? But she wanted to rent by the room. But I told her, I'm like, uh, and where the place was located, I'm like, you might want to. I'm like, you should look into Pad Split. And she started asking me all these Pad Split questions, and I was like, hey, I was like, let me give them my boy Steve, he does it, you know. And everything you talked about is the question she was asking. So, like, okay, so first off, Pad Split doesn't screen. You have to screen yourself.

SPEAKER_04 27:32

They do they do a check for income. Okay.

PadSplit screening gaps: Misdemeanors don't always show

SPEAKER_04 27:36

And they do a check for um uh what's it called? Uh evictions.

SPEAKER_03 27:41

Okay.

SPEAKER_04 27:42

I don't think that their software is very strict, I'll say that much. Because I have a friend who's an agent, and and I s now I send her the phone number and I send her because they you see their driver's license on when they whenever they apply to your your uh one of your rooms. So I send her the driver's license and I send her the phone number, right? And she's able to pull up a lot more. I find uh I find out guys with criminal records and stuff. So I don't think maybe felonies show up, but misdemeanors don't show up whenever someone's trying to book your place.

SPEAKER_03 28:16

Okay, so that leads me into my next question because this is a question that came up multiple times. Um another mind of my friends that's in my mas in a in a mastermind that I volunteer for is asked me this question too. So you I noticed you said you had a female in there. So you do have males and females in one house.

SPEAKER_01 28:34

Correct.

SPEAKER_03 28:35

Okay. So like let's just say, God forbid this happens, something happens. Like, what's the liability insurance or something like that? What does pad split do?

SPEAKER_04 28:46

That's a good question. I don't know what they do. I know you're gonna call the cops and get them involved, of course, if something crazy happens, right? But I don't know. That's a good question.

SPEAKER_03 28:58

Because that that that's the question they asked me. I'm like, oh shit, I don't know. I'm like, I assume pad split had like lawyers or something on deck.

SPEAKER_04 29:06

I don't think no, I think it's on you, man. It's on you to evict. I know it's on you to evict them and stuff like that. But um Pad Split, Airbnb for rooms. What it's starting to sound like, man. No, I in a way, yes, because actually I'll say this, man.

SPEAKER_01 29:25

Okay.

SPEAKER_04 29:26

Um they're you know, and they're learning the ropes. They're it's the same, it's the same issue as Airbnb. They're they're trying to trying to appease both sides. The hosts and the people they want to rent these rooms, right? The the pad baits. They're trying to appease both sides. So like this situation showed me that they're not very effective at getting people out of your your passplit. They're not very effective. They they tell you, oh, here's some tips and put a bad review on them. This and that, and to me, as a landlord, I'm like, okay, I'm trying to get someone out, trying to get them to transfer somewhere else, and I go throw a bad review. This guy sucks, and this and that. The next landlord's gonna see that, right? I know I do want transparency. I want every I want landlords to help each other out and make sure that they don't host someone bad, but that's not really to me, that's not a good solution because I'm I'm putting a ding on this guy's record, and then he's gonna try to go get some something else, and they're gonna see that ding, you know, obviously. Um, and then they say try to they just don't have good suggestions, they don't have and plus when you hit that notice to vacate button, it gives them 14 days. So if I want a crazy person out of the house, I hit the notice to vacate button to them, they're like, Oh, I still got 14 days to stay here, right? Even though if I want someone out of my house, I'm gonna go get that three-day notice to vacate, you know, or put an eviction on their butts, right? If they're really crazy, they're not really, like I said, they're not the best at handling crazy folks. And to me, they should be, because uh I will say that uh the ratio of crazy people probably is a little bit higher in Padsplitz. I'm not I'm not 100% sure, but from what I've seen, um, you know, people that a lot of people people that can only afford a one bedroom because they got stuff on the record or they got bad credit or whatever it is.

SPEAKER_03 31:21

It's a socioeconomic game for sure.

SPEAKER_04 31:23

Exactly. So you want they want it, they need to tighten up their game on that situation, on that, you know, because you don't want a criminal doing something stupid in someone's house and hurting someone else, right?

SPEAKER_03 31:33

See, and I'm happy you brought that up. I I was wondering that too when Pad Split first came about. I'm like, okay, what's the target avatar that would rid a Pad Split? I'm like, if they're going for cost of living that cheap, we have to now be aware of who we're letting in. Um and that's also gonna bring me back to something I gotta tell you. And I guy we gotta get on the podcast because this dude is making some heavy moves. But so you said when you want to get someone out, you just go on pad split and you push notice to vacate on that person's account?

SPEAKER_04 32:06

Yeah, yeah, pretty much it.

SPEAKER_03 32:07

Okay. And then that gives them 14 days. Now let's say they don't leave within those 14 days. What happens?

SPEAKER_04 32:12

That's the eviction, that's the eviction part of it.

SPEAKER_03 32:15

Okay, and so yeah, so you no, you handle it.

SPEAKER_04 32:18

You handle it. Okay, they don't evict nobody from your place.

SPEAKER_03 32:22

Okay. So my next question is this what type of insurance do you have on your house now? Are you using proper or are you just using regular insurance?

$30,000 per month from one halfway house door in California

SPEAKER_04 32:31

I'm just using regular insurance. Okay. I don't know. That's a good question. I don't know, does pop proper handle passplit?

SPEAKER_03 32:38

I don't know because my uh so the guy I was gonna tell you about, he right he's out in Cali and he's doing um what is the thing called when people get out of prison?

SPEAKER_04 32:49

A halfway house?

SPEAKER_03 32:50

Halfway houses. I've heard about halfway houses, my uncle was in one, whatever. Bro, I didn't know how much damn money we had. Bro, he's doing 30 grand a month off a door.

SPEAKER_04 33:04

One door. One door. Who's paying 30,000? Is it the government paying that shit? We're paying that shit. 30,000 a month.

SPEAKER_03 33:15

A door, bro.

SPEAKER_04 33:16

I was like, how many doors do you got in there?

SPEAKER_03 33:21

Eight rooms? Bunk beds in every room. I said, What? He goes, yeah.

SPEAKER_04 33:27

How many bumps in each room?

SPEAKER_03 33:30

One people. I said, 30 bands? He said, yeah, bro. He goes, I just screen them. He goes, he sets the rules.

SPEAKER_04 33:39

Um okay, you wait a minute. You say one door, you mean the house.

unknown 33:43

Yeah.

SPEAKER_04 33:44

You don't mean one house room. Okay.

SPEAKER_03 33:46

I was gonna say 30 grand off the house. Okay, that's real good. It's still real good. Yeah. So I was like, okay, because he was like, but he he broke it down to me. He goes, I I can choose what type of offenders I want to allow in. He goes, I don't do, I think he said sexual abuse, assault, murder. He screens it out. So he's like, mainly like people who drug use, um like drug use, robbery, stuff like that that he'll take in. But I was this dude, I was like, damn, 30,000 in the door. But this is what I read, and this guy made a really good point on bigger pockets. He said the bigger the cash flow, the bigger the risk. And I was like, whoa, I never thought about that shit. I was like, damn. He said in real estate, the bigger the cash flow, the bigger the risk. And that's what I'm starting to notice, especially with this pad split thing. Because the thing that like scared me, and I didn't ever think about it. She was like, You gotta figure out how you're gonna insure that. Because if something goes wrong, and let's say the insurance company finds out you're running something that they won't cover. Because I told her when she asked me about it, I said, I'll be honest with you, I would go ask pad split directly. You know, because if they've they're already fighting all these, you know, the the laws of the tenancy laws, right? You know, if people can't be related, they're fighting that front. Okay, how do we get this insured? You know. Um but these are all learning lessons, and I think they if if pad split's gonna be around, I think they would eventually conquer these things, you know what I mean? Because it it's very interesting, because that was what I was wondering. I'm like, okay, the getting someone out thing, they sound like Airbnb insurance. I am worried about that. You know, because the only thing about insurance, Airbnb, their insurance, they're gonna fight you, but at least it's in place, right? Right. They have the million dollar policy. So yeah, I would ask them about that.

SPEAKER_04 35:42

That's a good question. I I will tell you one thing. Yeah, because um, and I heard this from I was I was listening to this Passplit um podcast, right? So this one guy, he um, you know, once these people get into Passpits, they start getting a lot of a lot of units, right? You get up to a hundred units, not too not, you know, not too long, because I mean imagine six, seven, eight units per per room, per house. That adds up quick, right? So these guys they see the cash flow and they they start picking up more and more. And this one guy, what he does now, he'll go get a house that needs to be renovated, right? He'll use hard money to buy this house, and his goal is to turn it into a cash-producing pad split, right? So, so what he does, he he'll go buy one that needs work, he'll go in there, renovate it, get it all ready, you know, nice and pretty, so he can get the appraisal done and then pull his money back out and then you know, cash out refi and turn it into a pad split, right? Okay, but what he learned, he learned his lessons from doing this, and what I learned, I'm learning my lesson too, is that before you get the appraisal done, don't turn it into a pad split. No, no, no. Yeah, now set it up like where you you know, where you know you want some windows here and you want some vents for the AC here, but don't put the walls up until the pat until the the appraisal goes through. Once the payagles in there, he sees a regular three-bedroom, two-bath house, you know, he can comp that. You can't comp a 10-bedroom house against in a neighborhood with three baths. They'll be like, they'll put that check mark on on unique or strange house, and then that'll throw it all out of whack, right? Yeah, and so don't put the walls up until the mofo gets it all appraised as a regular three, two. As soon as he leaves the door, put them walls up, right? And then start pass putting it.

SPEAKER_03 37:31

Hey, that's what I was yeah, that that that came up on Brandon Turner's podcast. Uh Cam asked the guy, he was like, Hey man, are you ever worried? Like, if you ever sell this thing, you know, your value, or are you just gonna be comfortable ripping all the walls and he's like, I just have to take all the walls down, but right now I'm not I'm it's cash flowing for me. Yeah, because I was gonna say it too. Yeah, I wouldn't set it up as a pad split, let them appraise it, comp it, nah, then I'll go back in there and set my walls up for real. So yeah.

SPEAKER_04 37:59

Now here's one thing too, because I'm not renting it

Furnish Finder feeds PadSplit: Travel nurses rent by the room

SPEAKER_04 38:02

to these individuals, right? I'm renting this my house to pad split to a corporation.

SPEAKER_03 38:09

Uh-huh.

SPEAKER_04 38:10

So it's like I'm renting it to one entity, I'm not renting it out to six or seven different people. So I don't know how that affects the insurance and stuff like that, because I'm renting it to an LLC. Just like you rent your houses to your LLC, right?

SPEAKER_03 38:25

Mm-hmm. But what if you had to file a claim?

SPEAKER_04 38:30

To the insurance company? For like normal, you know, whatever could happen. Yeah.

SPEAKER_03 38:37

It's like let's, you know.

SPEAKER_04 38:38

What are they gonna say? Like, because people I don't know.

SPEAKER_03 38:41

That's what I'm wondering.

SPEAKER_04 38:42

Because uh if I'm I'm written to six people in that house, right?

SPEAKER_03 38:45

Yeah.

SPEAKER_04 38:47

Regular family is you know, five or six people, right?

SPEAKER_03 38:50

But you got six different leases. No, no, no. Okay, so that's how PadSplit works. You're only written to Pad Split.

SPEAKER_04 38:55

Yeah. All these people that are in my house are part of this LLC that they set up for my house. And they and the Pad Split themselves, they say that okay, the word family is can be interpreted in different ways. It could be people who are are the same, you know, same blood, or it could be just five or six individuals that call themselves a family. You know, it's not like there's a certain definition of what a family is or what can be.

SPEAKER_03 39:30

It sounds like they they would protect it then.

SPEAKER_04 39:33

You yeah.

SPEAKER_03 39:34

Also, another thing I would Passplit doesn't have any insurance carriers that they would suggest.

SPEAKER_04 39:45

I I haven't seen it. I haven't seen it.

SPEAKER_03 39:48

I'd ask them.

SPEAKER_04 39:48

I will say this too. Insurance don't want to pay for nothing anyways anymore, so there's that. Or they want you $10,000 out of pocket to pay for whatever happens at your house.

unknown 39:57

That's the point.

SPEAKER_04 39:58

That's what I'm saying.

SPEAKER_03 39:59

So, like, insurance already don't want to pay. Yeah. Then if you I wouldn't, of course, I wouldn't tell them it's a pad split. You tell them that, they're of course gonna make up all they're gonna come up with something in that fine blueprint, you know what I mean? Yeah, but yeah, I'm wondering that too. Cause that because when she was asking me, she was grilling me about these questions, I'm like, I'm gonna be honest with you. I ain't never I'm like, these would really be good pad split questions.

SPEAKER_04 40:21

You know, I will say, when I go in there and you know, I I use USAA insurance now, right? And when I go in there, the only thing, you know, when you're when you're clicking all the information of the house, right? The only thing it asks you, will this house be rented under 30 days at a time? So in other words, the Airbnb thing is all the insurance companies ask that question now because they know some people do Airbnbs out of their house. And so you just check no because people are staying in Passpits, it's uh usually three months or more, right? So it's not a short-term rental. Yeah, yeah, yeah. So then you just check no on that, Mart. It doesn't ask you anywhere. Oh, is this is everybody in the house related by blood? It doesn't ask you that question.

SPEAKER_03 41:02

Yeah, I think you would check no anyway, because you've only written the Pas split, right? Right. How long's that lease?

SPEAKER_04 41:09

Uh with Pas Split? Yeah. Oh, that's a good question. I think it's just I don't know until I terminate it. I don't know. Because I mean I could pull my house off Pad Split and it's done. But I mean here's the thing too, because I've I mean I've had roommates before in college. We've written, you know, even in my house, when I lived there at that house, I had you know two other roommates written rooms out of the house. Does that automatically make my insurance void and null? I don't think so.

SPEAKER_03 41:35

No, I wouldn't think so. Because you know how it is. Whenever something new hits the market, somebody comes up with something. Because even if you look at like proper net when Airbnb start hitting booms, now all of a sudden you got proper, you got steadily, they're like, Oh, I'll cover it. I'll wonder if there's somebody who pad split would be like, Oh, I'll cover that. You know what I mean? Yeah, like it's interesting, it's interesting because it's new. Take advantage, ride the wave, like we used to always say.

SPEAKER_04 42:02

Yeah, yeah.

SPEAKER_03 42:03

So that's that's at least, but but yeah, that's interesting, especially because I didn't know you have like males and females in the house.

SPEAKER_04 42:12

And that's and I you know, I thought that I could set up a all-male house or all female house. I thought I got to do that, but it's discriminatory, yeah. You can't. I mean, you can deny anybody you want, you don't even have to put a reason, you know. I'm saying, but anybody's allowed to book, so I see that people are you know, the good job, good background, no nothing in trouble. You know, I run through I run them through the background check, everything comes out good, they got a good job. I just, you know, I I feel comfortable letting them in. And I have cameras in the front, cameras in the back. Um, I go there sometimes, my handyman goes there, you know, and and fixes whatever. And and we I just walk, I can just walk straight in because I got access to all the common areas, bathroom, garage, whatever I need to do. And so it's like, and I'll send I'll send a heads up. Hey, I'm gonna go buy the house and get something. I don't want to just pop in on people, right? But um, but yeah, there's a presence, and I make sure, and then they got the yard guy going. So it's not like you know, it's not like um, I don't know. I just I I can always keep tabs on the house pretty good.

SPEAKER_03 43:22

And you know what? With my long-term rentals, that's how I keep tabs on it. I take care of the lawn care.

SPEAKER_04 43:27

Yeah, purposely.

SPEAKER_03 43:28

I'm like, I'll take care of the lawn care. Then my uncle goes over there, he sees something, he'll be like, hey, nephew, you fence is doing this, or you know what I mean? Yeah, that's that's a very good way to kind of keep tabs on it.

SPEAKER_04 43:38

Yeah, yeah. And I've been getting people, I want to trans transition to talk about furnish finder a little bit because okay I've gotten two people from Furnish Finder already. Uh one one girl was there, she her her three month thing was up, and so she's leaving, but then there's another guy from Furnish Finder coming into that same room that she's leaving, right? And so I I'm using Furnish Finder as a feeder. to the pass bits. And that's to me, that's that's pretty much uh I've had really good you know tenants from Furnish Finder that people that are real and not scammers I thought Furnish Finder would be like that good fee because remember when we saw this complaint like these people are cheap.

SPEAKER_03 44:20

Yeah but you go to Pad Split perfect transition.

SPEAKER_04 44:23

So I have the listing on there and I said you know 700 bucks a month for a room and I have the pictures of the house and pictures of the rooms and people hit me up. If I do have vacancy then you know I'll show I'll say okay room number two is available I get him I send him to the Pad Split site you got to do it off of off of Furnish Finder because they're they're real anal about you putting links to outside stuff you know they they they froze our account um because we were putting here's here's the link to the pad split you know and um here's the link to sign up for Pad Split because we had to explain people you know yes we're on Furnish Finder renting by the room but we go through Pad Split and then we have to tell them it's it's safer for you you know everybody who's staying there with you you know it's free to sign up we just you just run the spill and if you use the link to sign up through through my link then you it waves a hundred dollars uh move in fee right yeah and so and people have have been cool with it they've been like okay I understand and and so a lot of people haven't even heard the furnace here's the thing the furniture people uh the fur people are used to furnish finder they're getting hip to pass because I started I started sharing my link you know first on the site and then they froze us but then they unfroze us we we explained them what we were doing and now I share my links you know when I start texting with the person right or emailing with the people outside of Furnish Finder. And that link my personal link has been shared I guess they start sharing it with their friends in the industry. You know they're like oh you know travel or fellow travel nurses they're like here check this out this is a pad split thing that oh damn I could rent by the room for cheaper than you know I just say I'm just saying it's starting to get to pick up traction because I didn't I didn't put out my link to everybody I give it to a couple people but then it's just been you know spreading out I'm gonna be real like okay comparing your pad splits to like your whole places have you seen more traction have you seen any traction from like your bigger places on Furnish Finder? You know I wouldn't even bother putting a house on Furnish Finder anymore. It's not even worth it because they don't want to pay nothing. They don't want to pay you you don't want to rent your house for $1500. You know it's stupid it's it's not even it's not even that's uh now one bedroom apartments maybe a two bedroom apartment yes uh that makes you you'll get some bookings but a house no unless it's a pat split yeah that's what I was wondering because I'm like furnish finder to me people always saying oh I go to furnish finder to get uh midterm rentals I'm like what are you midterm renting because it ain't yeah I'm like on a house hell no because yeah I'm I'm I'm I'm finding furnish finder to be dead I even forget about them like I have a whole list of like places to list furnish finder now that I have whole houses it's like it just seems like it's it's dead but I was like man that pad split piece held pad split might be the nail in the coffin for old furniture don't say that out loud he might be listening my bad I'm just saying like or they I mean I think they need to work in conjunction with Pad Split they need to hook up yeah or I would yeah man what do they always say everyone at the bottom's competing the collaboration's happening at the top they should collab you know because I mean at this point furnish finder right now furnish finder has the target market for Pad Split find a way to collab on that because I mean I always thought it was funny because you know uh Jesse Fasquez right midterm guru a friend of the show and a lot of his uh events are are furnished are are uh sponsored by Furnish Finder and I was like I was like man you know even the people going up on stage and preaching about corporate rentals they know they ain't getting nothing from Furnish Finder but Furnish Finder I understand they're getting their name out there but furnish finder come on man nobody everybody gets down there they don't want to spend no money they're trying to keep their footing in the door because I wouldn't so when I was out in Cali the Furnish Finder lady was there the uh one of the one of their marketing people you know she was on stage preaching you know about furnish finder and I'm just like like I don't get no traction for now I had to say it but I was like I don't see no traction I mean unless you got smaller places yeah it works but like me I'm like hell no but you might get a scammer interested in your house damn we're dogging pads flipped tonight I mean furnished finder man I I mean yeah I mean I'm gonna be honest with you bro it's been a while since I had a hit on Furnish Finder it's been a while everything I get is through email or straight up through like email Airbnb but like mainly emails and phone calls bro like I think I just seen my Google voice line my uh VA since we've been on this call was talking to somebody from Furnish Finder they said out of my budget. So I mean yeah man I think it's yeah I think they need to they need to get with the program because they need to identify that a lot of people on Furnish Finder don't well first of all they don't want to pay a lot of money and now a lot of them are comfortable written by the room. So I think it's a it's a nice marriage if they do link up with Pad Split and they could even make it where they can book it through Furnish Finder into the Pad Split you know do something like that. Because we're going off pat we have to go off platform. And they've always been an off platform type type website right they let they'll link you up with the person and it's up to you to to host them but I think it might give them more um I guess more control um you know what if they did link up with with um Pad Split because instead of instead of slowly watching your market shrink because Pas split's taking all your people because it's gonna spread word of mouth like crazy right all these travel nurses are going to start telling other travel nurses dude just go to PadSplit you can rent by the week on there. You know what I'm saying? Whereas even Furnish Finder is is one month at a time but on Pasplit if you pay a premium you can rent by the week so if you don't like a place you can you transfer to another Pas split or or whatever or and um so I think they really need to to start yeah to start linking up with Passplit pretty good.

SPEAKER_03 50:38

And I agree with you and I think what you you you really touched on something really big because you said people are comfortable renting by the room now. I think that's the shift in America

Rent-by-room and ADUs are the future of American housing

SPEAKER_03 50:48

right now. I think people are going to like smaller living spaces. So I mean that's where I think like renting by the rooms and ADUs are the future of America. ADUs especially because um I thought ADUs would be passing in like these dense areas but like Arkansas where I'm at they just pass ADUs by right you as long as you have a single family lot you can build a house in your backyard. As long as it's not it's I think it has to be like it can only be 75% of the main house which kind of pissed me off because I had a 936 square foot house sitting on a 10,000 square foot lot bro I could have built another house in the backyard and the backyard has this big gate on the side and I could have just built a concrete path going back there but you live and you learn I got a duplex out of it so I'm not mad. But so that just shows you where things are going in America you know and I'm like in a place like Arkansas allowing that I'm like damn Texas I think is eventually going to get with it.

SPEAKER_04 51:44

So ADUs people are gonna you're gonna start seeing more small houses and backyards and people renting them out you know so yeah ADUs and rent by the room I think that's gonna be a way for a while especially with house buying is crazy for first timers you know what I mean yeah yeah man um no I'm I'm big I'm big on past I it's it was a learning curve I still do the short term rentals I still I have my system my my um my team of my systems built out for that and I still love landing the big corporate fish you know I still do that right it's it's a good it's good money but um but now I have like another tool I can I can go shopping in the hood every now and then you know I'm saying straight up I don't have to well one thing that comes to mind and and I I think I brought it up on the show with you I know I brought it up on the show before but um you remember the great Bill Parcellus that coached the Cowboys back in the day brought them back to glory days and of course uh left because he couldn't deal with Jerry but everybody's sick of dealing with Jerry but even his own family but anyways dude real quick on that other than the Cowboys I I was looking on Monday on Monday right I was like in the morning I was like you know I'm just gonna look at this I know they're playing Monday night football I'm gonna go look at the how much the tickets cost for Monday night football. There was tickets available and seats real seats not the standing room crap this uh the real seats for like 40 bucks 40 I've never seen Dallas Cowboys tickets so cheap and standing room was like 20 bucks and I was like but I was like still that's overpriced for me because I ain't gonna go pay $200 apart I ain't gonna go pay $10 for a drink and and then $100 for a value mill. I ain't doing it. Screw you Jerry anyways so yeah the the good news with the Cowboys losing last night and having a three and five whatever record that's gonna be a lot more $40 tickets if you want to go see the Cowboys. Yeah because uh my uh my supervisor from work he texts us last night he was at the game you know and he was like yeah we're just a glutton for punishment coming to these I was like yeah bro uh I don't know it's over for the cowboys Stephen A smith left yeah but check it out we got good uh we got at least also I went to see um I went to the Mavs

Cooper Flagg at the Mavs game, AD stays on the floor

SPEAKER_04 54:02

game oh nice I went to the Mavs game I went to uh my boy had some free tickets shout out to my guy my guy D he had some free tickets so we went to the Mavs game we checked them out hey Cooper Flag legit oh really cooper flag legit that's a legit star bro if if the Mavs were healthy they'd be a problem bro if they were healthy AD's hurt again right yeah ads hurt Kyrie's hurt but 80 man in the whole time so we were at the game and we were in the seats and AD kept hitting the ground and like everybody every time he hit the ground everybody be like is he gonna get up because man he that dude makes you nervous man like bro just don't hit the ground street clothes man you know my buddy at work calls him street clothes they call him flow show is he is that every time he makes a bucket he ends up on the flow bro he done I'm like bro get your big ass up man he calls him flow show bro man every time that dude score a bucket he on the ground I'm like man get your big ass up man go do you some agility drills bro I'll go back I'll go back to my favorite quote of Bill Marcell's and he was at a press his press conferences were fun you know he'd talk crap to the reporters and he'd just be you know uh he was cool but um they asked him about horse racing because he was a big you know horse race fan right and um and someone asked him hey the Kentucky Derby's coming up who what horse should I bet on and Parcel's like oh he goes he goes the tracks would love you he goes they'll send the car to come get you you're looking to buy to put all your money on one horse and hope to win right he goes that's not how you win he goes you bet you go you don't bet big to win small you know betting for the favorite horse you're not gonna you're not gonna win you know whatever a lot of money you bet small to win big and I and I and I was like okay that makes sense with horse racing because you know you set up your trifectas or whatever who you know the ones you're gonna place and you you you can put a few a few you know ten twenty dollars down and win like ten thousand dollars if you do it right you know that's small to win big instead of putting ten thousand dollars and losing it all in one one bet you know so so um I always thought about that and it stuck with me all these years and with um you know starting to buy more houses I'm like do I go and buy that beautiful big old house with all the bells and whistles and and and spend my whole nut on that one house or do I go say use that same hundred grand that I want to go spend some money on and get 10 houses putting $10,000 each down on you know spreading it across 10 houses uh owner finance you know I'm saying so I was like and I think of that a parcell's quote you know I should bet small to win big instead of just put it all in one house and hoping for some cash flow straight up straight up man straight up I I feel it on that that reminds me of my that's why I'm kind of looking into that multifamily bro right go big bro so 500 grand and then you had to put how much percent down on that 20 20 but you gotta make sure ain't no major repairs in there and that's what I fear I fear some major repairs in there because I'm like you dropped the price by a hundred grand even though and it it's a good deal on paper because the only thing you really got to do let's say if there was no major repairs all you gotta do is raise the rent you know he's charging like five hundred dollars a month when when I went over there I just smelled nothing but weed I was like damn he's he's going bottom of the barrel man so well don't you um don't you get it inspected though yeah you get it inspected yeah you gotta get it inspected um I would assume that's it costs a lot of money for an apartment complex yeah it costs a little bit more yeah for it but it's only 12 units but yeah it's definitely gonna cost more oh the one thing we gotta talk about man so it's finally here how has the Airbnb 15% fee been hitting you so the 15% you know I just um like I said you're

Airbnb's 15% third-party fee hits PriceLabs users

SPEAKER_04 58:08

able to uh um do and hospitable raise it through there so I I haven't really seen a difference okay see I haven't either I did the same thing I just raised mine 16% on uh hostfully I just shot it up 16% and then uh I haven't seen the difference yet either um but it's interesting it was interesting to see that because like they said and it's basically for anybody using anything so I was listening to Sean the other day he said it's for like even if you just you're only on Airbnb and you're not using a property management system even if you connect to price labs they'll charge you.

SPEAKER_03 58:42

I was like so out price labs is considered an outside platform so if you're connected to price labs they're charging you 15% so you gotta up your prices wow that's crazy I didn't know that yeah I didn't know that I was like damn I'm like yeah they coming Airbnb coming for all that money yeah they coming for all of it because it's like they yeah so so I did see you you in the AI hooped you video what what was that about that yeah the cat the Cadillac with the rims or whatever what were you driving in man that was probably a Cadillac those are my uh those are my rapping ones those are the ones I use for like you know talking about wealth building talking about buying ugly houses things of that nature I got a bunch of those I got a bunch of those those where'd you get that software for that what is that oh that's Sora so I uh so and I I I made a video about it so if anybody wants to go to my Instagram and find out how I'm making all these videos you can I it takes probably 30 seconds so I get on a I get on chat GPT and I tell it to create a Sora prompt of what I want it to do and then I put it in Sora and Sora probably takes about a minute to five minutes to create the video and it creates it and then I just post download it and post it. So like all that stuff's like AI I got I got like AI stuff of me in the live in the live let thrive studio we're talking about you

121,000 Instagram views in 30 days using Sora AI videos

SPEAKER_03 1:00:01

know different stuff. So yeah I've been I've been uh playing with a lot of AI man I got like I think we're at like let me see something it's crazy like how it works people really tune into it they really engage with it because I'm at here it is so I did my last month my last 31 my last 30 days I got 121800 views damn on my Instagram yeah just by posting AI stuff that's crazy you know like yeah so uh and then we had one of our videos go crazy the one I posted with Adam James that one went crazy too because I snipped that through uh Opus which is another AI tool I use um that one has like 6000 plays right now damn yeah yeah straight from the podcast I've just been you know using this AI as much as I can and uh it's been helping you know that's cool man hell yeah so welcome to the show if y'all been y'all saw us on an AI video yeah by the way this ain't the AI mica this is the real mica my friends be asking like this the AI you or this is the real you so yeah this is the real me right here man how do you get your skin to glow like that yeah crazy man so yeah we've been having some fun with that but um that's mainly what I've been doing man I traveled for business and you know learning these different multifamily rules and you know dealing with Airbnb's new crap so we'll see how that goes but I I haven't seen a difference either so it is a buyer's market right now yeah and I we gotta talk about that because that's why I that's why I was wondering that's why he dropped that hundred grand but I don't know I think something's wrong with it but yeah it is a buyer's market I would buy's market the prices are dropping around here they are bro they're dropping heavy um I I was real I was really considering doing another 1031 but I'm like I can't pull that type of cash I pulled a lot well I could because I'm minor staged and by the way if your house is staged it's way easier to sell in a buyer's market and probably get full prices but I was thinking about doing another 1031 because I was talking to I text my mentor at the text ad I was like bro should I be 1031 of these things to bigger units he goes if you can increase your cash flow with a 1031 and go to multifamily don't do it so I was like do it man I know I was thinking about it because it's like you know you gotta look at return on equity man you got a bunch of equity sitting there and it could be making you three to four times more cash flow on a big multifamily bro and that's how these multi-millionaires are made bro they don't tell you hey they started with a single family they turned that single family into a duple into a quad they turn that quad into a 15 unit you know that's how it works those are the secrets you know and then they get a what the cash flow they want number they want and they pay it off and then they just keep investing you know that's power in that the same using the same dollar over and over again grow and grow oh man so we've been at it over an hour um yeah so you want to wrap it up here we got some more stuff to talk about for the next episode yes sir um yeah this is a fun episode it's always good good to get back in the saddle yeah yeah especially with these pad split stories man we've got you're gonna definitely be schooling us on that so yeah so yeah I got more of those but let's just say well uh it's like you know Survivor Island kind of deal yeah you know when you get a group group of people in there start factions start getting formed and so it gets it gets it gets a little uh survivor island style man yeah what what is that show man what's that show back in the day the one on MTV Dave Chappelle made fun of it man ah the one that used to be on MTV back in the day real world or Road Rules uh Road Rules real world yeah Dave Chappelle said yeah they always put this black dude in this house with all these white people and they try to act like he's crazy oh man you gotta watch that Dave Chappelle episode when he made fun of real world and he put a white dude in the house with all black dudes yeah that was funny that was hilarious he got shanked man yeah funny stuff funny stuff but yeah man thank y'all for continuing to listen to us we will be hopping in hopefully again next week or whenever we have time we've been busy but yeah uh thank you follow us on Instagram tick tock send us a message DM email us livelet thrive at gmail.com and thank y'all for continuing to listen to us we are out peace later thank you for tuning in to this week's episode of Live Let Thrive be sure to tune in next week for all the latest in the world of Airbnb and all that entails by