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_03 0:11

Hello, hello, hello. And welcome back to another exciting episode of Live Let Ray.

SPEAKER_01 0:22

What's up, Micah? I'm chilling, Stevie Stacks. How you doing, my brother? Oh man, I'm doing good. Busy, busy as always, and just trying to trying to get by, getting by, you know what I'm saying?

SPEAKER_03 0:35

Already, I know how that is, man.

SPEAKER_01 0:36

How's vacation? How's the vacation been? Vacations were good and hectic and all everything in between. But before we start talking about all that, this is episode 327 of your favorite short-term, mid-term, long-term Pat Split. Let's go, man. Yeah, we're gonna get into it, man. We got the vacations over with. Kids about get about to go back to school. So yeah, man, it's it's been I've been had uh you know some long vacations this time. And so um took up half the summer. So that's um uh they're fun, they're they're they're great, but it's always good to get back get back home and get back to it, you know.

SPEAKER_03 1:19

For real, man. I noticed that too when I was on vacation. I was like, damn, man, I'm ready to get back to to the hustle.

SPEAKER_01 1:26

It's weird how our brains are wired that way, right? Weird, bro. Not that we don't hustle on our vacations a little bit, a little bit. Um, we always catch ourselves looking at houses and stuff, but you know, that's how it is.

SPEAKER_03 1:38

I know, man. We were the last vacation we were on, we were actually ordering stuff for our new house, so I know what you mean. So what's the big announcement,

Two AC units out, family camps in the master bedroom

SPEAKER_03 1:46

man? Man, so oh man, you know it's summertime, right? So you know it ain't ever summertime for a real estate investor until the AC goes out, right?

SPEAKER_04 1:54

Oh yeah. Oh yeah.

SPEAKER_03 1:56

Had two at the same time. One of them didn't hurt us though. One of them, shout out to home warranty, because uh we had home warranty on both of them, and they we got them fixed for 250 bucks, two AC units fixed for 250. I ain't mad about it. But uh the AC at one of our Section 8 rentals, that one went out. We were able to get that fixed, but the AC at our primary went out. This one here. So when it went out, man, we were like, dang, man, we had we had to uh, you know, we have a two-story house, you know, the upstairs, it gets really hot, heat rises, right? So we ended up putting everybody in the uh in our master bedroom. We were like, look, we had a futon in there. We laid out the futon, two kids slept on a futon, we slept on our bed, we had the TV going, you know, you all watching Disney movies, and we were actually kind of having fun, right? So I was like, dang, you know, we found found a little joy out of it.

SPEAKER_01 2:43

Well, you put a little portable on the window, is that what you did?

SPEAKER_03 2:45

Yeah, yeah, we put the portable in, then we had two fans running, then the cylinder fan going. So it was cool. We were in there chilling, man. So then, like, we you know, it's been like it took like three days to finally get someone out because it went out on a damn Friday.

SPEAKER_02 2:57

You know, ain't nobody working on it.

SPEAKER_03 2:58

Of course, ain't nobody working on no Saturday and Sunday unless you're gonna pay 500 bucks with a service call. So last night, you know, we finally got the air back on.

Mahogany proposes house hacking again - Pad Split or Airbnb?

SPEAKER_03 3:09

Last night, mahogany came into her office and she was like, Why don't we just house hack the house again? And I'm like, uh, you know, I'm like, nah, I'm like, we got two kids, and she's like, they don't want to go back to their rooms, they've been enjoying it in the room. So I'm like, house hacking with two kids? I'm like, nah, I ain't no way we can do that. And then like the light went off of my head. I'm like, well, hold on. I said, Steve's been doing that pad split thing, and Mahogany goes, where's he doing it at? I said, I think he has one in Arlington. And she's like, You think it will work? So I was like, I don't really know the pad split side. I'm like, I know the Airbnb and how we used to do that side. So first thing I did, I was like, let me go on Airbnb and just kind of see like what's a private room going for for a month, right? So the private rooms I seen going for a month were going for 1300. What they were doing was they were, you know, they were putting like TVs, desks, microwaves, all that stuff in there. So I'm like, okay. But then I then I seen some of them because in my mind, I'm like, and it's air it's Arlington, so you can't rent it out for longer than 30 days, but some of them a lot under 30 days.

SPEAKER_01 4:12

You can't rent it for under 30 days.

SPEAKER_03 4:13

You can't rent it for an under 30 days, but like a lot of them on Airbnb, they're renting for under 30 days. Like, I'm like, are they getting fined for this? Or and they're private rooms in our house, you know. You're always gonna have people doing it. But this one lady, she has three rooms, and she's charging like $54 a night for the room. And I'm like, $54, but then I did the math. I'm like, it came out to like what $1,200, $1,200, $1,300

Private rooms on Airbnb pulling $1,300/month in Arlington

SPEAKER_03 4:34

for like three rooms. I'm like, $1,300 times three. I'm like, shit, that's your mortgage right there. Two of them. That's just that's well over your mortgage. Yeah. So I was like, so me and Mahogany were like, if we do it, I'm like, we could just rent out two of them up there, leave the other room, because we already already turned the third room up there into our office. The living room space is still the same, you know, except for we put these video games up there, like the uh the little shoot and hoops games up there and stuff. And I started thinking about it. I'm like, I was like, well, let's think on it over the night. Because I thought about it, man, and I'm like, we could do it again. I'm like, and then I took it a step further. I was like, how about we do it for like a year and a half, two years, see how it lands us? And I'm like, if we really like it, why don't we move out of this house and just buy us a duplex? You know, these new duplexes, they're coming three bed, four baths on each side. I'm like, how about we just move out and just house act the rest of our lives in one of those, you know? She was like, let's do it. So I was like, all right. So I said, All right, man, you know, because I I I started, you know, how most people, the wife doesn't usually get on board. I started sounding like the wife last night because I was like, ah, man.

SPEAKER_02 5:39

I didn't. She's like, they don't want to go back to the room anyway.

SPEAKER_03 5:42

I was like, all right, let's do it. So we're uh I so I started cleaning out the closet upstairs to make like that the uh you know, the linen closet. I cleaned that out today, and we're gonna clean the two room kids' rooms out. And what we're gonna do is, and he told Malachi he was like, Yeah, I guess we could do it again, you know, because he's old enough to remember it. So we're gonna clean their rooms out, buy two new dressers, put that in there, move their dressers out so we ain't gotta move their clothes around, put them in mahogany's office and then get the standing um hanger hanging racks. Yeah, we're gonna try to do it for a while, man. I was like, I'm gonna test out pad split and Airbnb. And if I can get two people paying $1,100 apiece per room, which is what I'm seeing around here, which is $1,100 is on the cheap side, from what I'm seeing. I'm like, I'm gonna see if I can do it. And they're they're gonna share one bathroom, right? So I'm I'm getting back into the house hacking game, bro.

SPEAKER_01 6:34

That's cool, man. And that's I mean, that's more than what they're paying on Pad Split, though. The $1,100 a month, or like you said, $1,100. Yeah, because I'll I'll say out well, out I mean, prices vary. I'll say like this it's around, I mean, low like regular house and sea area, like like the one I got. Let's just mine are around $700 a month for a bedroom, right? Now I've seen the higher-end neighborhoods around $800, maybe close to $900 a month, you know. But I haven't seen them like $1,100, $1,200, you know, the ones I've seen. And that's pad split though. So I mean if you can get more on Airbnb, that's that's awesome. You should do that. Because I mean that's what y'all did before, right?

SPEAKER_03 7:16

Yeah, we did it on Airbnb.

Pad Split requires the whole house, no owner occupancy

SPEAKER_03 7:18

But back in the day, we were only getting like $700 a month. But that's like six years ago, six, seven years ago. So I'm gonna I'm gonna test it out. I'm gonna try to see and see what I can get.

SPEAKER_01 7:27

Because because the pad split model, the whole house has to be pad split. You can't just do a couple rooms pad split and a couple Airbnb, you know, the whole thing has to be pad split.

SPEAKER_03 7:37

Now, are people househacking and pad splitting?

SPEAKER_01 7:39

They're not, you can't uh live in it and rent out rooms. That's not part of the model. I mean, if you I guess if you started a a pad split account as a member and you and you rinse in one of the rooms out, you could do it that way. But they that the whole thing is like visibility. They want every member that that rents a room from you to see who the other members are that's gonna be staying there. So if you if you don't, you don't, you know, if you're not a member, you own the house and you live in there, they don't they don't know who the heck you are, you know what I'm saying? Yeah, because because it has reviews just like Airbnb, you review your housemates and then you review the landlord, the landlord reviews you, so there's reviews on people. So when they go try to transfer to another house split, like I I've had people trying to transfer it to mine and and bad reviews, man. Like, yeah, this person's messy, come in at all hours, you know, leaving stuff everywhere, eating my food. You know, you see all these messages. So I've been real fit we're picky with mine. So that's I think that's why they do it that way. The whole house has to be a hundred percent pass split. Makes sense.

SPEAKER_03 8:42

Okay, makes sense. Okay, so I guess we'll do like Airbnb. I'll mainly focus on Airbnb and then direct marketing and then start doing background checks like we used to.

SPEAKER_01 8:53

Now, when you hop out of the house, I I I would suggest do it at all pass split because uh well, not only, you know, I mean, if you're doing okay with the Airbnb thing, that's one thing, but then all it takes is is someone complaining and the city says, oh, under 30 days, and you're you know, you know how it is.

SPEAKER_03 9:10

Yeah, see, I don't I don't even plan on doing under 30 days.

SPEAKER_01 9:12

Maybe over 30 days?

SPEAKER_03 9:14

Yeah, I'm gonna do over 30. Because the thing crazy part about it is what I was looking at is if you're on uh if you're doing it under 30 days, they used to send me notices. That's I was like, how are they getting away with that?

SPEAKER_01 9:25

So maybe they just laid off of it some, you know.

SPEAKER_03 9:28

That is exactly what mahogany said. She said maybe they got lax with it because there was a bunch of them on there.

SPEAKER_01 9:33

Yeah, yeah. But I was, you know, I I like I, you know, I that was part of my thing today. I'm falling in love with the passplink model. Okay. And like I said, that house in Arlington where I would

Arlington four-bed converting to six-bed Pad Split at $4,300/month

SPEAKER_01 9:44

make usually probably $2,000 a month, you know, rent out of, right? A four-bedroom, two-bath, I turned it into a six-bedroom, uh, two-bath, and uh made this made the the second bedroom accessible to everybody by building like a hallway through the through the master bedroom. You know, I shrink down the master. So that one is accessible to everybody. So it's you know, you want to have a good ratio of like three rooms to one bathroom, maybe four rooms to one bathroom. You don't want to go higher than that because you know it's a lot of people sharing one bathroom, right? Yeah, so um, so I did that, and so I I would expect instead of getting 2,000 a month in, I would expect around 4,300 a month.

SPEAKER_04 10:22

Okay.

SPEAKER_01 10:23

Now that's the path for the game because I mean how many bedrooms is yours naturally?

SPEAKER_03 10:27

Four beds.

SPEAKER_01 10:28

Four beds, two and a half baths. Two and a half baths. Okay, so you you could probably get it up to six or seven rooms pretty easily, I would think, putting some walls up. You could probably get it up to six or seven bedrooms.

SPEAKER_03 10:41

Yeah. We're yeah, you could easily do it because you just split up the living room.

SPEAKER_01 10:47

Yeah, split up the living room, and then I guess the room you're in now, is that like an office?

SPEAKER_03 10:51

Yeah, it is an office.

SPEAKER_01 10:52

You could turn that into another bedroom too. Yeah. So you can get six, maybe seven. And like I'm I'm getting six bedrooms out of small houses. Yours is a big house. So there's ways to do it. And that's the big thing with with Pad Split is getting those extra bedrooms is what's gonna make you the extra revenue.

SPEAKER_03 11:08

Oh, okay. And then how now how's your parking situation going?

SPEAKER_01 11:13

So oddly enough, you know, I do have a driveway you can park four cars, but the thing is, there's only you know, not four cars can't park there because then you have to be asking your your roommate to hey, could you move your car and all that stuff? So so two cars pretty much parked there, and then there's and one car parks by the mailbox, but the other two, because I got five out of the six bedrooms, I've been doing it for like a little over a month. I got five of the six bedrooms booked, right? Okay, and um three people have cars, the other two people don't have cars. And they say you come across, yeah, you come across that a lot. What's cool about Arlington? They have a thing called Via. Via, yeah, those vans, yeah, so and so like the city subsidized ride. So you get anywhere in the city for five bucks or less. Yeah, so it's a that's pretty much their public transit, you know what I'm saying? That's pretty much Arlington's public transit is the via. So people can live in Arlington and not have to own a car.

SPEAKER_03 12:04

That's true. That is a fact, yeah. Because I've seen a lot of people use a via. A lot of people use it. And I like the only thing about it is you have to like walk to them. Like they pull up, they'd be like, Oh, I'm down the street, you gotta walk your ass down. They ain't coming. Yeah, I've I've heard people complain. Like, so like if you if you live in a like my friend was telling me, it's like if you live in an apartment complex, they'll just pull in front of the prompt complex. You and you gotta walk out. Like you ain't coming to get your ass like Uber. But I mean, if for five bucks, I mean you get what you pay for. Yeah, five dollars or less. Yeah, you get what you pay for. But yeah, that's a good thing, though. Like, if you on a main road or whatever, you know what I mean, a house, you just go down the street and they'll come get you. That's what's up, man.

SPEAKER_01 12:45

And I put that on my Zilla listing. I put it on there, you know, get around the city using the via app and for you know, five bucks or less get you anywhere. And you think about it, when as soon as you get a car note and then you got insurance on it, and then you got gas to pay for and wear and tear, you know, you're probably better off. I mean, if you don't need a car, if you don't want a car, you're probably getting by cheaper doing the via thing.

SPEAKER_03 13:07

Bro, you really are, bro. Like, I'm gonna be honest with you. Me being remote and working from home, man, we save so much on gas. Like, I only go in the office Monday and Tuesday. So I could really a mahogany's like hers is kind of her special is kind of split, but most of the time she's home. Like, I we could really just use one car and get away with it. And yeah, then like, man, I what you just said right there, that's like a killer on your budget is gas, and then you got to get maintenance done, man.

SPEAKER_01 13:33

Oh, yeah. Yeah, tires, a thousand bucks to get you some tires, tires, oil and filter changes.

SPEAKER_03 13:40

People who don't do oil and filter changes, now you got a five thousand dollar engine problem, you know what I'm saying?

SPEAKER_01 13:45

So car shield, baby, car shields. Straight up, call up ice tea. Straight

Cedar house becoming a six-bedroom Pad Split

SPEAKER_01 13:52

up, man. Oh man, but like I said, I've been, you know, I've been loving, I've been loving the pad split. And um, and so I already got so my Cedar Hill house. Remember the very first house that we started doing the podcast in. And it's funny, it's funny because Cedar Hill. I'm sorry, Cedar Street. Uh oh uh Hearst.

SPEAKER_02 14:12

I was gonna say, damn, you got some in Cedar Hill.

SPEAKER_01 14:14

Okay, okay, good. We manage one in Cedar Hill now. We do manage one over there. It's nice.

SPEAKER_03 14:18

Yeah, I love Cedar Hill. Oh, Cedar Hill's nice, yeah.

SPEAKER_01 14:20

It is nice, and um so the the the Cedar House, I call it the Cedar House, it's over there in Hearst. And um, that was the one we started doing the podcast in, remember? Yeah, in the front room, it had that front secondary living room area.

SPEAKER_04 14:33

Yeah.

SPEAKER_01 14:33

I'm gonna I'm turning that one into a pad split because the guy ended up moving out a few months ago, and so I started I had a decision to make. I was like, should I put it on for red? I was like, you know what, I'm gonna pad split this thing. And and then um, so that front area where we used to do the podcast, I turned that into a bedroom, and it's still a hallway there, so there's still like yeah, there's still a hallway there, and there's still a space I could put like a you know, uh, a computer desk and a chair there if people want to use that. And so it's gotta turn it into a four-bedroom already. And then um so I'm gonna turn on the in the back living room. There's a the big living room add-on, whatever, as I have enough space there to add two bedrooms there, plus still have like half of the living room left.

SPEAKER_04 15:14

Okay.

SPEAKER_01 15:15

And so I'm gonna add so I'm gonna make it a six bedroom. I'm already I already got my guy on it. And um, and then I made like a little like a little hallway into that the master uh bath, you know, so it could be it could be used by everybody. So now now the house is a one and a half bath, so I'm turning that bathroom and putting a shower in there and turning into a full bath.

SPEAKER_04 15:34

Okay.

SPEAKER_01 15:35

So yeah, I'm turning that. I told you I got the bug, man. I I mean I love this. I love it. I and I, you know, and I and I I was scared as hell to do it. You know, I was like, man, but that's how you grow, you try things, right? And um, but what's cool about it is um, excuse me, and I um one of the things I realized it is the the app is great. You can send out a message to everybody at the same time, which is cool, you know. And so what I've been, you know, if I ever have to go over there, and what I do, like if when a you know a new member's gonna check in, I'll go over there myself and go try out the code, make sure everything's good, do a little sweepy sweep, because if a room's been empty for a few weeks, you know, critters get in there or whatever, it could happen, right? So I just make sure nothing's in, you know, it's clean. Usually they're just you know, nothing you ain't gotta do much, but I just go in there, sweep, swiffer a little bit, make it give it that fresh smell, you know what I'm saying? And then um and check everything's good. And uh the common areas, man, they've been freaking spotless, dude. They've been cleaning, and I leave I leave a lot of clean cleaning products out, right?

Common areas staying spotless, rotating chore schedule working

SPEAKER_01 16:37

Yeah, and then and I put like on the like a dry erase board on the fridge, I say, you know, uh room room number one cleans on Monday, room number two cleans on Tuesday, room number three, and then just so on and so forth. And and also on your cleaner day, it's your it's your laundry day too. You can do laundry on that day. So there won't be like disputes of hey, I need to, you know, that someone won't tie up the the washer and dryer. Now, if no one's using it, you or you can ask room number two, hey, you're gonna clean you wash today, I'm gonna do some washing. Um, you could do that, but but that's and that was the advice given to me. Cause I was like, man, should I send my cleaner every week? What do I got to do with this thing? I got the Airbnb mentality, right? Yeah. And no, you just pretty much let them know, hey, keep the common areas clean. Everybody has their day. But if you want to clean something, clean up after yourself, man, they'd be cleaning. I I walk in there and place a spotless dude.

SPEAKER_03 17:25

So, no, my question, do the do the guests communicate to each other through the app?

SPEAKER_01 17:31

You know, I don't know that part because I know they communicate with me and I can send them messages, but I don't if they do, I don't see their messages to each other. If they do, okay, but I don't know if they do. That's a good question. I thought about that. I never I never asked uh uh Justin, the passport guy. I could ask him. I don't see why they wouldn't be able to. That would be that's a smart idea, right? Hey, yeah, hey, room number one, can I wash my my drawers today? I don't know.

SPEAKER_03 17:56

For real, man. Comes up, right? Like, cuz because like especially like let's say they're not there, you need to get in contact with them. I was wondering that. Yeah, that's that's that's dope, man. Cause I'm yeah, because I I'm uh I'm trying to get back into that mode of how I used to run it. Because we're gonna do the mini fridges, microwaves, desks, and we're gonna do desks in every room. I'm thinking about doing the monitors too, like giving them a monitor, keyboard, mouse. Hey, if you ever need to use this, and then see what I can get, man. Uh yeah, and I'll let you know, like damn, if you can't pad split it, that's cool. I'm gonna I'll see what I can get though. I'm gonna see what I can do.

SPEAKER_01 18:35

Oh, that'd be cool, man. I remember I remember um chilling out in one of those rooms before. Y'all did them up pretty good. Yeah, the fridges

Mini fridges, monitors and desks in every room

SPEAKER_01 18:42

in there and stuff. That was nice.

SPEAKER_03 18:43

Yeah, so I'm definitely gonna Yeah, the TV is in there too, right? Yeah, I'm gonna mount. I'm gonna I had the TV sitting, I'm gonna go ahead and mount them. One of them in Malachi's room, TV's already mounted, but I'm gonna mount the TV and then see how that does, and then see what I can get, because I'm like, man, if you can get a I'm gonna be real, man. I tell people if you can get away from paying your mortgage every month, like somebody else pays it, that puts you in a hell of a different space, bro. And I was like, Mahogan was like, look, we gotta just go ahead and give something up so we can, you know, get to the number of doors. Cause my goal is to buy two doors this year. I bought one, and I'm like, well, hell, how am I to buy another one? I'm like, okay, if we house hack this thing, we can get another one maybe at the end of the year, because it's August. We can get another one at the end of the year, stack up, you know. So yeah, man, I I just gotta you just gotta sacrifice to get to your goals. So I'm I'm I'm gonna try it out again.

SPEAKER_01 19:34

That's cool. And y'all, you know, you y'all aren't really I mean, y'all had a good time, good time with it. I remember the story you tell me, you know. You said you're y'all were cool with the people that came through, and even we did podcast together. There's one of the ladies walked behind you and stuff. She's like, Yeah, got back from the Cowboys game or something. I don't know.

SPEAKER_03 19:50

Yeah, yeah, that was back in the day, man. See, and now the house has changed, right? So now my office is blocked in. I uh I built the wall, kind of like Plaid Split, put two doors on it, and man, it's nice now. So yeah, like they can't even, they wouldn't even they'd see me, but they wouldn't see me actually at all now because I'm still in that same space. I just turned it into an office. So yeah, man, I'm excited getting excited for it. Because I was like, yeah, man, you're right, because we've been doing all this vacationing, buying houses. I'm like, let's go get another one and you know, do it the smart way. I'm like, because I was and what really inspired me too was um, you know, I've been listening to the Better Life podcast. You know, Ben Brandon Turner. I was actually with him this weekend at the uh Limitless. Uh, him, Robert Kiyosaki, a bunch of people, Pace Morby,

Limitless conference: Robert Kiyosaki, Brandon Turner, Pace Morby

SPEAKER_03 20:34

Thatch, all them were there. Um, yeah, cool dude, by the way. Oh, you met him.

SPEAKER_01 20:38

You met him.

SPEAKER_03 20:39

Uh yeah, I walked by I didn't get to meet him because he was like everybody was shaking his hand. I was like, damn, I want to beat him. But I was like kind of behind everybody. And the mahogan's like, man, you got to get a picture. That's your point. I'm like, man, I can't even get to him, bro. So I was like, all right, but she got another picture with Robert Kiyasaki. Now that dude there's funny.

SPEAKER_01 20:54

He's a horn dog, he said.

SPEAKER_03 20:55

Straight up, bro. Straight up, man. This dude, this time, man. Like, and he ain't he don't shy away from it either. So this time, so we seen him first, right? We seen him. He didn't see us, like, we all seen him. I'm like, oh shit, there goes Robert Kiyosaki. This is this is this year. Last year we saw him, we all got a picture with him. This year, but this other dude, this couple, this couple seen him first, and they walked up to him. And I'm like, okay, they're probably gonna eat a picture with him. So, like, the dude's like, hey Robert, man, can I get a picture with you? Robert's like, yeah, it was him and his wife. And the guy has his wife on this arm and he has Robert over here. Robert like pushes him out the way, grabs his wife, puts his wife in the middle, and put his arm around his wife, and had the dude on the outside of the picture, bro. I said, Yo, this dude don't give a damn, bro. So I'm talking like we all saw it, we start cracking up, man. I was like, Yeah, Robert, he at that age, he don't give a damn, bro.

SPEAKER_01 21:50

So you know the rose, pretty Tony? She chose me.

SPEAKER_03 22:00

So yeah, so we had a good time, but yeah, I didn't get but the thing about it when I was going back to with Brent Brent Brandon, he still house hacks. He was like, he still house hacks. I was like, damn, for real. But he house hacks like I want a house hack. Like he has his own place, then he has another place because he has his two kids. So I'm like, damn, man, I'm about to like try to house hack this one and then move on to the next one, man. And I'm I don't know, we're considering we talked about like, oh, do we want to sell this, keep it? And if we keep it, it would put us further closer to our goal, you know what I mean? Because we would have another door. So we're we're we're gonna see what we can do, man.

SPEAKER_01 22:36

Yeah, that is cool, man. Yeah, Brandon, I like it. I like listening to the show. And he and he's big, he's real big on pass split, too.

SPEAKER_03 22:43

Yeah, he is, man. He he he he was talking, he I heard him talking to a few people about it. Yeah, he's real big on pass split.

SPEAKER_01 22:49

You mentioned somebody else, you mentioned Pace Morby. And I don't know if you've heard any of the drama with

Sean TK blasting Pace Morby over alleged mortgage fraud

SPEAKER_01 22:56

um Sean Rikij. He's been blasting Pace Morby hard, man.

SPEAKER_03 23:04

I'm gonna let you finish your story and I'm gonna tell you one of mine.

SPEAKER_01 23:07

Ah he well, see, I guess what happened, Pace started talking smack about Airbnb. And that, you know, that's Sean's bread and butter, right? So once one of the big guys in the industry starts talking to Smack about uh Airbnb or arbitrage or whatever the hell, then um, of course, a lot of people are gonna listen to him, right? And that takes money out of uh Sean's pockets, you know what I'm saying? Don't mess with Sean's pockets, and so and so Sean went hard at him, man. He's like, he's putting all these videos up. He goes, Yeah, well, you know, a certain influencer out there is telling people to do mortgage fraud, and he starts talking about subject two, and he starts flashing the pictures of pace and stuff, right? And he's like, you know, y'all gonna get your butts thrown in jail. You know, I mean, he he goes hard, you know. He said he goes, he goes, he started this, he started talking about my business model. At least my business model won't get your ass thrown in jail. I mean, he's yeah, he's making all these videos against pace, man. And uh both both their business models get you thrown in jail if you don't do it right.

SPEAKER_03 24:08

But uh I've done one of the business models, I've done Sean's business model, and yeah, it's legit. But pace is his too, but yeah.

SPEAKER_01 24:16

Yeah, no, I just say it. It's it's funny. I mean, he, you know, Sean in a passive aggressive way, you know, is fired up at Pace Morby and going off on him and you know, saying all this stuff is mortgage fraud and you know, going to jail. And and and then he said, uh, but the thing is, you know, he'll he'll he'll go into something like that, and then he goes back into his story about how he started and homeless and selling newspapers and all that crap, and then he says, Well, and then I started making money, and you can make money too by not owning anything and and then arbitraging apartments and all. It's like, man, it's the same spill. And and yeah, yeah. I'll say this, man. You ain't gonna make money arbitraging apartments no more unless you go, unless you're gonna put like $20,000 into this badass apartment, make it all, you know, maybe you'll make something. You still gotta make your $20,000 back, but I'd rather put that $20,000 into getting a house, you know what I'm saying? You can't just throw like we did back in the day, just throw a regular schmegular apartment together and then hope to make like a thousand or two thousand bucks a month off of it, you know. It's it's every you know, thanks to Sean and a lot of other influencers, everybody did it, and there's a ton of them out there, ton of them to choose from for in the race to the bottom in pricing. So, but if people jump out again, I guess, you know, but the the regulations got more strict. So I don't know. It's it's a it's a thing. He's still, you know, Sean's doing his thing. I I love Sean. We we kicked it with Sean, but uh he's gotta make his money, and I guess that's pretty much he's still doing the the same the same type of advice.

SPEAKER_03 25:46

I don't like the business. I don't like the business model, but I'ma say his way works no matter what simply because of how he runs it. He runs it to a point where no one can get in, meaning to the point where he has cleaning costs where he may he may even give you either free cleaning or he can charge $20 a night for cleaning because he owns a curve cleaning company. Him and Pace are actually very similar because both of their business models are vertically integrated. So when you vertically integrate the business, now yeah, you can make money, but do you really want to do that, right? Do you really want to train up some cleaners? Um a lot of them getting deported. Uh you know, think about just being real.

Arbitrage race to the bottom, vertical integration the only model left

SPEAKER_03 26:31

You know, do you really want to create a cleaning business? So you have to, and it's funny, I was reading the book, The Millionaire Next Door, I was on the book I'm reading right now, and he said you have he goes, a lot of people, a lot of business owners, they actually like when times get tough because a lot of people hop out. And it's exactly what you just said. If a lot of people hop out and you stay in, you rather the storm, you know what I mean? You know, you you have that advantage. Uh and then even with Pace's model, I mean, you know, like even his like I think his financing and stuff, all that's in-house. So they both have good business models, so but yeah, I'm uh I'm kind of out of the arbitrage game. I haven't done the sub two. I would like to. I'm gonna probably hop into sub two here soon, probably after I get this next duplex with that I'm gonna house hack. So yeah, man, I'm it's interesting, but I'll just say this. And I'm not gonna go too deep in the weeds, but there's uh other influencers have who have gotten on the pace too. So he Sean ain't the only one.

SPEAKER_01 27:29

He's going at him, man. Yeah. But he did and I saw on like his um he posted something that that I guess the STR Wealth Conference.

SPEAKER_03 27:40

Yeah, yeah, yeah.

SPEAKER_01 27:41

The one in Nashville. I guess so. And he said, yeah, this conference, which I've done, he said, which I've done in the past, you know, all of a sudden they're trying to get these influences, influencers that have nothing to do with Airbnb to go speak at them. And one of them being Pace Morby. He said they want the big name so they can sell these thousand dollar tickets. Wait, wait, wait, who said that? Sean. Oh I just saw that today. He said Pace Morby's gonna be the speaker at the STR wealth conference. And he said, and he goes, he doesn't even like Airbnb. He hates, you know, he hates short-term rentals. And they but they want a big name. So they got him and some other chick that's an influencer that doesn't do Airbnb. Cody Sanchez, probably. Cody Sanchez. Yeah, he didn't say he didn't say the name, but he did say Paige Morby's name. He says, they're letting a wolf in the hen house. I was like, damn. It's fun drama. Go look at shot stuff, man. It's fun drama.

SPEAKER_02 28:34

Oh man, I'm about to go look it up too. He said they let the wolf in the hen house.

SPEAKER_03 28:41

I don't know, man. That's crazy, man. It's been yeah, when you're I don't know. When you everyone has all these conflicting ideas. And I I go back to like back in the day when I used to always say, man, it's like you always say, in so many ways to skin a cat. You can if you take a little bit of what everyone does, you can find a way to win, right? Like my mentor has nothing to do with Airbnb and short-term and midterm rentals, but that's what I do. I do that. And then I can learn from him his ways of how he is acquiring real estate, how he's built wealth. I can use that, and then I can compound on it with my short-term, midterm rental skills. You know what I mean? So it's interesting because like if Sean was to take a little bit from Pace and Pace was to take a little bit from Sean to be a powerhouse. Like this picture I have behind me, I have Jordan, Kobe, and LeBron. If you actually mix the three together, you have a super soldier on the court. You know, they all have different techniques that you can pull from.

SPEAKER_01 29:35

Yeah, but if the chemistry is wrong, then you ain't gonna win nothing.

SPEAKER_03 29:39

Exactly. You know, but you know, you have to take a little bit of piece, you know, that uh you just gotta take a little bit of piece of

Daughter heading to UNT, plan to buy a Pad Split house in Denton

SPEAKER_03 29:46

everybody, man, and just you know, make your own, bro. Straight up.

SPEAKER_01 29:49

Yeah, yeah, that's true. So, so um, my oldest daughter. Okay, she's 18 now. She turned 18 on in July. Yeah, from yeah, my oldest from a previous, you know, relationship.

SPEAKER_02 30:01

Dang, I didn't know she was 18. That's crazy.

SPEAKER_01 30:03

Yeah, and so she's gonna start college at University of North Texas.

SPEAKER_03 30:07

Okay, DNC.

SPEAKER_01 30:09

She's gonna start UNT and um and she's checking in at the dorms on this Friday, right? And so, um you know, college is pretty expensive nowadays.

SPEAKER_03 30:21

For sure.

SPEAKER_01 30:22

Especially at UNT, yeah. Hell yeah. Here's my plan. Here's my plan. And and I they have to live in the dorms the first year, right? They gotta live. That's that's one of the rules. They gotta live. That's true, you know. And and um, and so she's she's moving into the dorms, but I'm already scouting out buying a house and didn't to do pad split, right? Okay, and I've got a few prospects, I gotta go check out some houses, but I'm gonna buy a house over there, either subject to or owner finance.

SPEAKER_04 30:55

Okay.

SPEAKER_01 30:55

And I'm gonna I'm gonna pad split it. I'm gonna turn it, you know, three-bedroom into a six or seven bedroom, and then it'll be I guess my goal, my goal is for it to cash to cash flow and pay for the college. That's what that's the first goal. And then year number two, when she has to choose a place to live, she'll have a spot there at the pad split, or if I got another one by then. But she'll have a spot there to live for free, and then um, you know, the house will pay for itself. And so, so that's that's my plan. And and in what's it called? And uh, I go back to we talk about Kiyosaki, but his book that changed it all, it said, buy, you know, don't go buy the thing, buy the asset that's gonna pay for the thing, right? Yeah, and so that's how I'm looking at it. I'm like, you know, I got this, you know, some money I could put, or you know, hopefully put zero down or close to zero down, but get get me something subject to our owner finance, and it's gonna cash with with, you know, as a regular rental, it's hard to cash with a regular rental, you know. But when you pass split it, you're gonna make probably double or more what you usually make on a regular rental.

SPEAKER_04 31:59

Yeah.

SPEAKER_01 31:59

And they just passed that law in Texas. It's called I be I think it was called the um uh frat house law, or they there was some weird law for it, right? Really? But it was uh some kids in college station sued the city for because they don't they didn't allow more than you know two or three people from different from that aren't in the same family to live in the same house. So people, you know, people have been renting out rooms out of their house forever, you know what I'm saying? So but people will complain on it, and the authorities or coder enforcement say you can't live, you can't y'all can't all live in this house. And so we're poor college students, you know, we don't want to go get an apartment and all that stuff, and we just want a a cheap place to stay while we study. And so they sued, it went all the way to the Texas Senate or whatever, and it passed. They changed the law, man.

Texas frat house law legalises unrelated housemates statewide

SPEAKER_01 32:47

So you are allowed for to have different people living under the same roof from different families.

SPEAKER_03 32:53

That's a big win for Paz Pitt. It's a big win, especially Texas, yeah W, Houston, Austin, Austin, especially. I'm I bet they'd probably kill it down in Austin. It's too dense down there.

SPEAKER_01 33:06

Yeah, yeah. I mean, I'm I'm looking at other cities, you know, like you said, it has to be uh high population, a lot of jobs, and all that stuff, right? And then um, and and so Austin might be a good spot, even you know, and Austin real estate's plummeting right now. You might grab you something for on a phone or finance or sub too deal.

SPEAKER_02 33:25

I thought it went back up.

SPEAKER_01 33:26

I heard it's plummeting again. I heard it's dropping. I heard it's dropping. But yeah, go ahead. No, but it might be a good spot to to do a pad split or something.

SPEAKER_03 33:35

See, really it is, man. See, and this is what I'm noticing about pad split, because pad split is really, and this is how Brandon Turner talks about it, kind of like thatch. It's the cure to the to the affordable housing crisis. Because what you're having is you're having because America messed up when they built houses, they built houses out and not up. The only time you see them building up is downtown so they can preserve land for nightlife, all the other crap, whatever it is, conferences, hotels. So if you look at it, pad split, ADUs, tiny houses, all that fixes that problem. So I think pad split in a city like Austin that's dense and you can't get in and out of the damn city. It's one damn freeway. It's like traffic if you've ever been to uh to Austin on a Monday morning, it's traffic to hell down there, bro. Like you'd rather sit in DFW, at least you have multiple freeways. Houston, multiple freeways, Austin 35, the mopak, and to get to the mopak, you gotta go 20 miles out. So it's like it sucks, right? So yeah, I think pad split down there would hit anywhere that that there's that that dense population, Houston might be good, and then like anywhere on the coast, it's always gonna work, right? Because you're running into water. So yeah, man, Austin would definitely be a good place.

SPEAKER_01 34:50

And they got all those Waymo's and all the robotax and all that stuff, man.

SPEAKER_03 34:55

I want to try one. We were in Vegas, man, and we were trying to we forgot to do it. The guy, uh, the guy who was at the front desk of the place we were staying, he was like, Yeah, man. He goes, Yeah, they're pretty cool. He goes, It's kind of freaky, you and your wife just get in a car and it's nobody in the front seat and driving you around. But he goes, got used to it, so I definitely want to try that out. I know they had them in Austin. I'm gonna definitely go down there and try it out.

SPEAKER_01 35:15

I'll I'll say that the um you know, I don't know what kind of cars y'all got, but I I've my my cars are kind of older, you know. I'm the millionaire next door type. But I I when I rent when I go down like a long trip to like South Padre, like we did. Yeah, I I always rent a car, you know, and then we do a road trip. Because either way, if I'm gonna fly there, I still gotta rent a car over there anyway. So I just, you know what? I'm tired of flying standby back and forth, hard to get on flights in the summertime, blah blah blah. Let's we're gonna rent a car, do a road trip, stop at Bucky's, you know, do you know a fun road trip? But I'm gonna I'm not gonna do it in my car. I don't want my car to break down and all the 900-mile trip, you know what I'm saying? And so I just go rent a car over here at uh at the airport, and then um I get a pretty good deal. I use my points to pay for it, you know, so it's free to me. And so I get with me a uh uh a big ass uh I got I guess a big ass uh Ford Expedition Max. Let's go big mother lover. And so uh we got in that thing. And the thing is, it has like the the captain's pilot's steering wheel, you know, it's really like kind of round. It's it's kind of like like this and this and rounded. Oh, yeah, yeah. All right, but it had the it had the automatic driving, man. And where it keeps you in the lane. I mean, you take your hands off, you take your feet off, and it just it drives drives by itself. But after a few minutes it starts going ding ding ding ding, you like put your hands back on the wheel, mother lover. Yeah, and so I'm like, God dang it, why? Why? You're driving great. Why why you want me to screw this up for you? And so I just got this thought, man. I just like I remember you go back in the day where there was stick shift, and then kids nowadays, wow, you know, you know, how how did y'all drive those things, you know? And I think that's gonna be the same to like when our grandkids are like in these cars that drive themselves, because I think they're all gonna drive themselves. Oh, yeah, and they're gonna be like, Y'all used to do all this stuff to these to drive these cars? What that was that's crazy, you know? Why would you do all that? What's a steering wheel? They don't even need a steering wheel in the fucking car. They go, What's a steering wheel? It's just gonna be an empty, hollowed-out car, you just see chairs, and then the car is gonna just take you where you want to go.

SPEAKER_03 37:22

That's just like on iRobot, man. Remember when they got mad at Will Smith? They're like, What were you doing manually driving your car?

SPEAKER_02 37:28

He was on the freeway, and you know, everybody else, you just push a button and it just takes you where you need to go. And the dude got mad at it's like, what were you doing manually driving your car?

SPEAKER_03 37:36

That's exactly what iRobot is where the world is going for sure. I definitely think that. Yeah, it's it's you talked about your points, man. Let me tell you something. Speaking of points, I just bought a hundred and thirty-one dollar ticket to Huntington Beach, California next month for $131 bucks. Use

Wells Fargo bumps the line of credit $12,000 after a referral

SPEAKER_03 37:53

points. Shout out to points, because uh, you know, we just furnished that duplex, and I was like, let's hack up the system, let's just use our points. You use your furnish everything on a credit card, then use our business line of credit to pay it off. So we got like 40 something thousand points. So we end up getting the 40,000 points, and we just got another trip going. But uh speaking of that B lock, there's power and connection and positivity. I'm gonna tell you about how power and positivity. So Mike, he's gonna listen to the podcast and he was like, Hey, and he's heard me talk about Wells Fargo giving out business line of credit for six percent at seven percent interest. So he hit me up, he goes, Hey man, they still doing that. I was like, Yeah, yeah. And I sent him my guy, sent him my guy, and he I didn't, I forgot about it. It was like month, a month or two ago, right? So he ended up calling the guy and he hit up my boy Tom. Tom calls me at random, like two weeks ago, after we finished the furnishing duplex, he's like, Hey Mike, man, Mike, uh I'm gonna thank you for sending my sending Mike my way. I'm like, oh yeah, yeah. I'm like, oh, he called you. He said, Yeah. He goes, he goes, hey man, you want me to raise your business line of credit? I'm like, raise it. I'm like, well, I'm like, I'm about to use it. He goes, oh, if you're about to use it, he goes, I'll just raise it for you. He goes, I gotta raise, he goes, I'm I'm higher up in the department now. He goes, I can just approve. And I'm like, oh man, I was like, I was like, yeah before last, I took like a loss on the business. He goes, Oh, it don't matter. I'm like, for real? He goes, yeah, yeah, I can override it. So he was like, uh, so he's like, I'm gonna send you the paperwork. I'm gonna send you the paperwork, sign it, get back to me. I was like, bet. So as soon as he sent the email, I get the paperwork done. And then he's like, uh, I'll let you know. Next day he calls me, he goes, Hey, I got the paperwork back, I'm sending it up to the higher ups. So I I had forgot about it. So a couple days ago, I looked at my business line of credit. It was an extra 12 grand on there. I was like, oh shit. So then he ends up calling me yesterday. I think it was, I think it was he ends up calling me yesterday. He goes, hey, by the way, I got you approved. He goes, I was like, oh, I seen it. He's like, oh, you already seen it. I was like, yeah. He goes, initially they approved you for six. He goes, so you know, he goes, I overwrote them and gave you an extra stick, extra sticks. They gave me 12. So power and connections, bro. So that's off me sending him somebody, right? And now I get an extra 12,000 out of it. I was like, okay, cool. So yeah, man, uh, business lines of credit if you can get them, bro. Because he was like, he was like, if you use this, because I was like, I'm gonna try to go ahead and get it paid off by the end of the year. He goes, yeah, and if you can get it paid off by the end of the year, I'll see if I can get you up to a hundred grand. I'm like, okay, cool. So yeah, bro. So man, connections are powerful, bro. But what's it at now? 62,000.

SPEAKER_01 40:23

Nice at six percent.

SPEAKER_03 40:26

Yeah, seven percent. Holy smoke, that's cheap. Yeah, and that's what I tell people. I tell people all the time, man. Power and connections, because if I'm helping sending him people and helping him, that's helping him out, you know. And he's with Wells Fargo. So yeah, bro. Uh always build connections because the first time I met him, me and Mahogany probably sat there in the bank like an hour just talking business, commercial real estate, residential, because he's an investor too. And uh, he was just telling me about all the mistakes he's seen people make, and then this is when he just was the business guy. Now he's moved up, like he's like a regional guy now. He can so yeah, bro. Powering connections, man, and uh always remembering people, bro. Remember people, and good things will come your way. I didn't even expect that. It came out of nowhere. Uh-huh. So now oh, go ahead. So now when I use my business line of credit, since I got an extra 12 on it, my payment now goes down because I'm using less of it. So yeah, man, it's a hit all the way around.

The furniture credit card points triple-dip: card, then line of credit, then 0% transfer

SPEAKER_01 41:18

You glossed over something right quick. Jim, you just let a little little gym, didn't you just walk right over it? But it is you said you bought you bought all that furniture first with your credit card to get all in points, right? Yeah, and then paid that off with your business line of credit. I was like, yeah, most people would think, oh, I'll just use my line of credit to buy the furniture and then I'll just pay it. No, no, no. You washed it first with the credit card and then paid it with the I'm like, that's that's genius, man. I mean, it's a genius gym you just dropped. But most people, like I said, most people wouldn't even think of doing that. Oh, hell yeah. Using the credit, no, no, use the credit card first. Oh, yeah. You don't have to pay it for 30 days and then wait the 30th, the third, 29th day, hit it with that with that um business line of credit. Yeah, man. Straight up.

SPEAKER_03 42:06

See, and that's what I'm hitting it. And I hit it with the business line of credit, pulled all the money, and then after I got the points, I had already I had a vacation plan for next month, but I hadn't bought the ticket because we were like, man, we had already secured the lodging because my uh mentor is having a big event down in California. And I was like, man, we ain't been to Cali in a minute. So we were like, okay, and then we got those points. I was like, dang, that covers Danger the whole trip. We paid $131 for two tickets to LA. I was like, oh, we're going. So we did that. So yeah, man, the the credit card churning is huge if you know what you're doing. You have to know what you're doing, you have to be disciplined. Don't go buy no stupid stuff. No, you know, buy investment stuff that's gonna be an investment and uh go from there.

SPEAKER_01 42:43

So that's a double dip. Yeah, I'll tell you the triple dip when you get with uh is with the furniture place that gives you that three months no no interest. So you get the furniture for free for three months, month number three on the last day, hit it with that credit card, boom, and then hit it with that line of credit 30 days later. So you can straight up, man. You got a lot of money for free, plus you got all them points. I like, damn.

SPEAKER_03 43:09

Here goes another another hack, right? Let's say you don't have like the let's say you don't have a zero percent interest card. What you can also do, and this is how I hacked up some points too. You just you just need that, you know, you just have you don't have a zero percent interest card and you can't pay it off in 30 days, but one most of the time make sure you can pay it off in 30 days. Use your credit card with the who will give you the most points like fill out, and what I do is, and I'm gonna show y'all this I keep uh I keep a credit card application. 0% interest on I have a whole line of them just sitting right here on my desk. So if I ever need them for any reason, I'll fill it out, right? So I'll fill it out, get the points off the credit card, balance transfer it to the 0%, so I have 0% for like 24 months. So you can always keep these. on deck so I'll never have to pay interest.

unknown 44:02

Damn.

SPEAKER_01 44:03

Now now is there a fee for the transfer?

SPEAKER_03 44:07

Yeah. The treat the the fee for Bank of America was like 50 bucks. I transferred over I transferred over 2400. It was like 50 bucks. Then I paid out I paid down like 800 of it immediately because we got some money coming in from the Airbnb. So we paid it down. So then I'll I'll probably have that paid off next month. And then once we start house hacking it'll really be gone. Yeah. So it's just you have to learn how to play it right you just got to learn how to play the game how to turn them uh man there's people who do all types of stuff. Like balance transfers is huge. Like people buy big stuff like or what you can do is like with my chase card my chase card has a $53,000 limit on it. So if I ever need anything like furnishing that dupe place I already knew I had it. So swipe it with that pay it off with the business line of credit because I know my chase card gives me the most points. And so you kind of swap them off.

SPEAKER_01 44:55

Man I love listening to those points guys man on those see and I never knew about the points guys.

SPEAKER_03 45:01

The points guys that's how I found out about the balance transfers. I didn't know about I was like damn I ain't think to do a balance transfer. And then if you if you're really good at it you will balance transfer it to something that gives you more points. I was like damn these dudes is crazy man. So yeah bro I was like but like I I try to avoid any all of my debt though any debt that I have I try to keep it on the business side I'll I'm I'm now to the point where personal debt try to stay out of it business debt to where it's at just keep everything on the business side.

SPEAKER_01 45:31

Wow I I heard this this this uh I mean he gave a lot of tips on this this one uh the the points guys uh but one of them was uh the Costco hack you heard of that one uh uh no you gotta tell me about that one you know Costco sells solid gold right gold bars they sell gold bars in Costco I didn't know

The Costco gold bar flip plus 3% cash back

SPEAKER_01 45:51

that for the going rate okay let's say let's say uh and it's a it's an ounce right it's it's a small little small little ounce gold bar you know and and it's stamped uh whatever it is something Buffalo or Eagle whatever there's different ones right and um anyway it's in a package and everything so sometimes he said he'll be checking out sometimes and he has an app where he keeps track of price of gold right okay and so he'll see these sites where whatever whatever coins are buying for what so he'll said oh shit okay I could buy this car you know so and and Costco ain't you know ain't always keeping up with the trend of what the price of gold is so let's say he could buy it at Costco for 3300 for that ounce right and then go right outside and and go flip it for 3500 you know it's not a huge amount of money but it's still money but he'll you know he'll buy like oh give me uh give me give me four or five gold give me five gold bars also really you know 3200 a pop and he'll buy him right of course I'm sure he's using a credit card right no no he's using the Costco card because the Costco gives you three percent back so all that yeah so he's getting a big chunk of money back from Costco and then he's going and flipping these gold bars on this open market thing where you where you go pretty much mail it at a UPS or whatever to whoever the buyer is right yeah money flipping these gold bars plus he'll get all that big old chunk of cash back from Costco can't beat it bro dang can't beat it man there's so many ways out here bro like educate educate educate man and you know and with me getting back into this house hacking thing when mahogany brought that to me I realized something bro keep your wife involved in your business as much as you can because when she does she gets bugs for stuff too and she'll bring them to you because the house hacking thing she caught me completely off guard with that I was like man you want to do house hacking again but she she furnished the other the new duplexes she furnished them you know got them all set up and then she got the bug and then we went to the big limitless comp conference man and you know when you go to those conferences you guys always get a bug because somebody's gonna drop something and then when I when I was like listen to Brandon I was like okay I got to let's do the house hacking thing. So yeah man good stuff man you know people and positivity go ahead people and positive exactly what what crossed my mind and we're talking about credit and all that stuff right yeah but I have my passplit my first one and I got it almost filled you know it's doing it's doing really good knock on wood and um but I was starting to think you know like I said some of you know they're having you know uh uh the type of jobs you know forklift jobs or you know jobs like that um just enough to you know make pretty good money and they need a place to stay that so the demographic younger people with like you know you know I would say starter to eat meet medium jobs where where

Credit repair services for Pad Split tenants

SPEAKER_01 48:39

they're making money trying to get on their feet trying to get something you know all that stuff they might not have a car yet saving up for a car whatever the reason a lot of pad split that's a lot of pad split what what I'm seeing you know but what also I'm seeing I bet a lot of them couldn't get into apartments because of credit yeah right so I got all these these people I'm hosting in a pad split why not and and I know you probably know some inroads here but and and I'm pretty sure anybody you don't have to go get qualifications and certifications to be someone to do a to be a credit repair person do you I see them on YouTube all the time mahogany does it yeah and does credit repair that's beautiful that's what I'm saying if I can learn I mean I pretty much know how to bump up credit you know the trade lines and and then get the the easy credit cards or the ones that you back with cash or whatever the hell but I could offer that those kind of services in the past split you know have a little place here you know you want to improve your credit while you're here uh and and then you you know make a little money that way or whatever and also my wife is studying to be an agent so she's gonna be it I said if y'all want to if y'all are saving up for a house my wife will my wife will hook you up.

SPEAKER_03 49:51

That's what we're doing right now trying to be an agent we uh that was what we were doing we're like look while we're doing this thing we can go ahead and pay for all this these fees go ahead and because mahogany's already done all she has to do is take this so I was like man shit we go ahead and do that too that's what we're on trying to be get like get the agent and then you can probably find a better deal because your stuff hits the market because I've been doing a lot of uh Instagram engagements with uh real estate agents because a lot of them are that's how I got that idea a lot of them are posting those three bed three bath duplexes and I'm like yo I gotta get my hands on one of those man I can't miss on one of those so yeah man I'm I'm looking at that as well and it's a buyer's market right now so you can get some good deals.

SPEAKER_01 50:32

Did y'all do in the champions school for real estate? Is that what it is champions?

SPEAKER_03 50:37

Either champions or caplins or something like that. Okay. One of the two yeah okay just online at your own pace kind of deal I think I'm gonna do the online mahogany's already done uh they were telling me I think her and Elkie were telling me you you this she was like you have enough real estate knowledge you can just do it online and it'll be easy so I'm I'm gonna probably do that online because yeah we're doing that because I was like I was studying for my last cert and I'm like and I was listening to Brandon Perner he said anything that doesn't give you energy like if you're not excited behind it then don't do it.

SPEAKER_01 51:09

My job your job yeah I mean if if if if your if your job doesn't excite you then yeah find something else you know yeah cool thing about my job man is I I I do I am excited about my job because we're doing a lot of stuff with AI so yeah man there's stuff like that that I enjoy but yeah man

ChatGPT AI agents made $921 in two days

SPEAKER_01 51:29

if you feel like your job ain't doing it then yeah see what you can because I mean you got enough units bro yeah yeah it's still still scary to make that leap man um the AI thing real quick because you're in the IT world right I all you hear on the freaking news is that AI is going to replace all you guys is that is that true uh AI is going to replace the people that don't know AI.

SPEAKER_03 51:52

That's who's gonna replace I like that I like that yeah that is who I'm actually it's funny you said that I don't even know if I want to let this one out the bag but basically if you're using the $20 a month version of ChatGPT they just officially released the AI agents which are the bots that can basically any task that you've trained someone to do on Loom you can have an AI agent do it for you so I'll just say the last two days my AI agent bot made me $921 dollars in two days.

SPEAKER_01 52:28

How'd they do that?

SPEAKER_03 52:30

Have it doing doing stuff for me online man. Any task that I've been doing I tested it out and I have an AI agent doing it so like anything that you've ever done online that you've either had to train a VA on it can do it. I had it this one task I'll say I had it do I had it going through my LinkedIn and I had it messaging and connecting with every single person that was a hotel coordinator or housing coordinator at ALE and Alacrity solutions. So anybody I had it connecting and sending messages and people thought well of course you think it's me it's just with the AI bots going through and clicking and doing it and I just leave it up at my computer while I'm working and my my laptop's just doing it by itself I've been telling people bro these you can get them agents to pull comps like everyone's like oh it doesn't do I'm like like I've been telling people man if you are not using AI as an entrepreneur you are getting left behind and the only reason I did the agent thing because someone on LinkedIn posted it he goes if you're not using AI agents you're about to get left behind so I was like okay what is AI agents when I'm chat GPT and I start playing with it and I'm only two days in and I was like damn it's powerful it's some powerful stuff so you can have it do everything for you man. Damn dude that's that's insane I I I already told my job I'm like I told my job this the day I found out about the agent I'm like we could honestly I I will say this like for the people in IT who are afraid of losing their job the day that your company buys the enterprise version of open AI yeah your job might be on the line because the enterprise version that's the one that you can nail down and do yourself to have do have everything you've done yourself and have it proprietary to your company yeah bro it's over a chat bot I've I've been a network engineer for since 2012 the correctly tuned agent could do my job in five minutes. A correctly tuned agent could do my job in five minutes like go ahead. I mean you know every leap of technology people are afraid you know the robots are gonna take all the jobs all kinds of stuff but it's the ones that don't you learn how to use those tools yeah is the ones that get left behind right those and then I'm gonna be honest with you the only safe thing I'm in government government don't trust that government trusts it but it don't trust it to like make decisions because you got to be real careful. Now you know how people you know oh on iRobot the movie iRobot that was they were letting robots into government you know what I mean and that's when he was like man nah y'all letting them make certain decisions be in trolls of people houses you know that's different so that's the only thing that I'm in like more in a safe space because I'm in government they ain't about to just we're we're too proprietary. And that's why I've always told people like AI is it's an entrepreneur's playground. If you're taking advantage of it and I come from an IT background so I'm taking full advantage of it the stuff that I'm seeing I'm like yeah bro it's gonna take some jobs.

SPEAKER_01 55:54

You know I'm already thinking man like you got me thinking because here's the thing so my wife I told you she's she's studying to be an agent right yeah not an AI agent bot whatever but a real life uh real estate agent right and so I have a great agent and and shout out to Lucy Knox she's she's a great agent around here but she's uh Latina she's a cool chick she's she's taking my wife under her wing kind of deal she's gonna hang her hat on her on her um brokerage right yeah and so and so it's it's a cool it's a great deal what I what I first saw the and and like she's not a she's not at all threatened by oh another agent you know she she wants to help her and everything she thinks she thinks it'd be great for her to know and so automatically I'm like dude we can see houses whenever we want now I don't got it like hey could we go see oh yeah I could take you tomorrow or but you know because agents get busy it's only one of them and like they got like a hundred clients right or whatever it is 20 clients yeah and so and I understand but I can't go freaking see a house that I want

AI agents scraping MLS, cold calling sellers, creating content

SPEAKER_01 56:54

to see right away I have to wait till I can get in and by then it might be gone whatever but with my wife being an agent she'll be able to we'll be able to see them right away you know I'm saying or she can go look at it while I'm at work you know I'm saying and then do a video walkthrough and look at the stuff I tell her to look for and um anyways uh oh QB Casa that thing you know I'm saying I told you about QB Casa and just walk it and you get the the blue the the freaking blueprint of the house and I can look at it and say okay I can add some rooms here do the pass put whatever or it won't be a good pass pit whatever it is. Yeah but on top what you told me about this ages thing so my so one of the things too I told my agent hey could you just reach out to all these houses that are on the market for a long time or that are showing seller finance or owner finance or subject to oh look out look through out send them send them a thing and see if they're they'd be interested in selling it owner finance or subject to and just get the and and of she'll do a couple and then but she's just busy right she's busy to and she's she's looking for herself uh uh what's it called a virtual assistant which you I know you're saying those are gonna be extinct pretty soon but but she's looking for one of someone to do something like that so she can you know keep some investor type like me you know uh satisfied with with the results but now I'm thinking shit my wife's gonna be agent day one I'm gonna put those I'm gonna show her those those uh agents that you told me the AI agents I'm gonna say this is exactly what I want you to send to these type houses she can talk to agents that's the thing I can't reach out and talk to a freaking seller's agent for so it's a stupid old rules right my wife can and she can set up her email to send out all these freaking feelers to agents all day.

SPEAKER_03 58:37

Here go the better thing teach her how to set up the agent to go and pull the list off the MLS of everyone who wants owner financing subject to pull it email them and then cold call them. If you the first three she can do automatically well you know they have agent cold callers now too but man I don't know if they really work and I'll I'm I'm not sure if the close rate but if she can do automate those three things she's already going to be ahead of all the agents and then you can have that agent create social media content for you. Because that's a that's the issue with a lot of real estate agents they don't create social media content. And the ones that are creating social media content I'm gonna be real about it they're just looking to sell a house get really educated with the market because what I'm noticing is I posted on my social media the other day I was like man I need to start a first time home buyer seminar because a lot of these first time homebuyers are selling their house or getting out of it because they don't understand property taxes. They don't understand what they can afford they understand that what the bank told them they can afford but they don't understand their own budget. They don't understand how um PITI works I'd be like damn bro y'all bought this house and y'all want out it's like bro y'all don't understand but they didn't understand it. So I would have her host like first time home buyer seminars have her sending stuff out on social through AI agents bro like man I got so many ideas. I'm like man once I get my ad license bro then I can like then you can hone in and I was listening to Avery Carl on um on uh Brandon's podcast she said she only does short-term rental stuff if anyone has like a listing that they said oh it's not a short term rental she sends them off to her other friend she's like well go list with them that's what they do so she's so niche down I'm gonna just focus on midterm rentals and short term and how they combine the two and those are all the those the only clients I'm gonna serve straight up so you just have to know like I already have a full blown game plan of how this is going to work and then like that excites me. So I'm like let me go ahead and get my real estate license that excites me. And like while I'm setting up these new units upstairs getting the real estate licenses looking for the new duplex man let's go.

SPEAKER_01 1:00:44

So so my question to you if mahogany's gonna get it why do you need it as well your real estate license tag team couple man.

SPEAKER_03 1:00:51

So if she can't do something I can do it it's just so like if we have a listing it's our listing we both gonna get paid off of it. You know what I mean? So if you need if you have a client that needs to go see it we go we can get it in man and then with like anything man. So it's there a lot of people you're gonna take clients around looking at houses too no no I am going to do listings only like well our my goal is to only do listings. Like just list the property and then let other people bring people to the property but my specialty is I can list the property but I can also target like midterm rental and short term rental clientele from people that are buying out of California because I know that's what they want. Because by the way did we talk about the big beautiful tax bill we didn't talk about it together. No okay we talked I talked about it in a one-on-one podcast when I did by myself that right there in the CPA dude on bigger pockets he said that right there is gonna force he goes a lot of people are about to get into short term rentals because of that even the people that don't even really need to but they're gonna get into short term rentals because of that so that right there is a boom for the cross seg studies right cross-seg studies in this loop the tax loophole so basically offsetting all your active income so yeah I bought two houses this year and I'm closing on the third on Friday I'm gonna have a lot of um cross seg studies going on man I'm gonna have a lot of yeah are you gonna do one or all of them?

SPEAKER_01 1:02:20

I was gonna do all of them this year. That's what I'm saying. I could use the the leftover for next year and then and the following year.

SPEAKER_03 1:02:29

Yeah that's all I was saying like I'll why don't you just split them up over three years or does it have to be done the next you know I'm saying talk to your CPA.

SPEAKER_01 1:02:39

I think I don't that's a good question because what if the law changes or it goes you know someone else gets in office and they they get rid of that there's a uh there's a whenever they do stuff like that there's a time on it there's a time limit on it. Okay.

SPEAKER_03 1:02:52

So you'd be good I would talk to a CPA though I I don't know the fool but I've been hearing people like I've been like one lady I'm talking to um she's delaying the sale of her business right now because she's about to get a huge chunk of change. She sold her business sh over 14 years. She's like I want to delay it until the 1st of January so I can then go have 12 months to buy a short term rental at cash flows. And I was like if you're doing it that way I said you'd probably need to go to a vacation rental market because you can write a lot more of it off. So there's yeah a lot of people are there's a lot of strategy behind it. Because they said the people looking to get into it this year you're gonna be limited on how long you have to buy because you have to buy it before the end of the year. But the only good thing is the buyer's market so you can probably get a good deal. I know right shit's gonna be sitting so yeah man it's a lot of good stuff out there but definitely get them agents baby yeah I'm I'm gonna do that dude I'm gonna I'm gonna get on that chat GPT $20 a month thing bro I I'm about to I'm actually I want it to do my taxes I want to teach it to do my taxes and my books all that shit you ain't gotta teach it just tell it you

AI doing QuickBooks, tax prep and 1099s

SPEAKER_03 1:04:06

can do that you can give chat GPT your QuickBooks the agent you can give the agent your QuickBooks login have it log into your QuickBooks do your taxes for you run all your 1099s all that bro all that bro I've been telling people man if you and it knows the fucking tax code bro like people don't understand like bro this thing like I'm not saying it's gonna take over job I wouldn't really trust it to do taxes for me yet but man it's coming and it's coming quick like these you know that you know the smart cpas are using it to do the taxes for you though exactly you have to worry about that man because they we're we're talking about we're worried they're over there that's why they try to get a hundred more clients because they doing tax returns in 10 minutes man hit one buck shit chat gbt over there doing your taxes and you up here paying this dude 500 bucks so I mean yeah man it it's coming bro it's coming like I like if you're on LinkedIn like a lot of those ai people like and man and also I tell you man if you can throw some money at NVIDIA NVIDIA's gonna they're the they're the brain but they have the chips behind that shit I've been investing in I went to a Weka conference downtown Dallas and the dude head dude from Microsoft was there and he's like we had and he's not even giving like investing advice but what he said I I was looking at it from an investor standpoint he goes nobody has better chips than NVIDIA we're getting all of them from NVIDIA I was like oh shit I was pulling up my phone and I was sucked I was like hey I was sitting there making trades so yeah man NVIDIA because like all these head high end people they're like Nvidia has the chips man so I was buying NVIDIA I gotta get on that man I've been buying I've been buying uh XRP and NVIDIA.

SPEAKER_01 1:06:04

XRP, Bitcoin, Ethereum. I've been doing that. Now I'll add NVIDIA to the mix too.

SPEAKER_03 1:06:11

Yeah, I'm I've been doing I haven't even been touching Bitcoin or Ethereum anymore. I've just been doing straight XRP and uh XRP and um NVIDIA. Yeah, bro. Even putting that into my kids' college fund, putting all that in there.

SPEAKER_01 1:06:25

Nice. But you won't need college no more. You got you got the agents, man.

SPEAKER_02 1:06:31

Nah, they still gotta go to college. Speaking of that, I'm happy you brought that up.

SPEAKER_03 1:06:36

HVACs, plumbers, electricians is where the money at.

SPEAKER_04 1:06:40

Yeah.

SPEAKER_03 1:06:40

That's where the money is.

Rufus roofing robots, HVAC the last trade safe from automation

SPEAKER_03 1:06:42

Those are the things that AI has not taken over. They already taken over roofing. It's a company called Rufus, and they're taking over roofing.

SPEAKER_01 1:06:50

Don't need the guys to put the roof on though, right? No! What do you mean?

SPEAKER_03 1:06:57

Check out this company called Rufus. They built the AI bot. All they do is lift the shingles up there, it removes the shingles, they image the house, and the thing just puts the a bot does it.

SPEAKER_01 1:07:13

Damn. Putting my hermano's out of business, man.

SPEAKER_03 1:07:17

Bro, straight up. I was like, damn, bro. I was this dude, and the reason I found out I found out about it on Brandon Turner's podcast. He was like, because um, and then this weekend I was talking to this young 20-something-year-old dude. He goes, Yeah, uh, I was like, what do you do? He's like, Oh man, I I I do the valuations for companies when they're being sold. And he was like, This is gonna sound kind of weird, but the number one companies being bought right now by like these big hedge funds are all HVAC companies. And then I yeah, he goes, It's all HVAC, and he's like, Yeah, you can go to the SBA and buy a comp buy a HVAC company that's doing okay. And if you can know how to scale up a company, scale it up and sell it. And me and Mahogany were talking about that too. But like HVAC companies, electricians, plumbing, that's where the money is. And then when I heard the dude on Brian and Turner's podcast, he goes, The only reason I have not touched roofing companies is because I know AI is coming for it. I was like, damn.

SPEAKER_01 1:08:09

You know, and and when this whole thing was going down, you know, the the deporting a lot of people, ice and all that stuff, right? Yeah, I was thinking, okay, you're getting rid of a lot of the the jobs, the the lay the labor intense intensive job uh uh people that are doing the work, you know. And I said, and I was just thinking, ain't no Americans gonna get on the damn roof, you know, and the 110 degrees in Texas. I said, so but I was like, just thinking, whenever whenever there's something like that happens where you know you people won't do that job, innovation's gonna have to happen, right? These roofs still gotta get flipped. And then when you said that, you know, we're gonna lose all the workers or getting deported or whatever, they're hitting up all these uh roofing sites. Um, Americans ain't gonna get up there. Someone's gonna figure out a way to make a robot do that shit.

SPEAKER_03 1:09:00

Yeah, and it is, yeah. It's called Rufus, man. It's a company called Rufus. Uh and I don't know how fast it's gonna like be before it takes over, but it's out there. And you know when stuff like it's just like Tesla. We first heard about it. Yeah, okay. Now you see an electric car every time you go down the damn street. In the next five, 10 years, it's gonna be more of them. Hell, me and you probably gonna own one of them at that point because you know what I mean. That's just where things are going. Uh Robo taxis, yeah.

SPEAKER_01 1:09:28

Robo taxis. Yeah, I mean Tesla's gonna work for you when when you get home from work, he goes saying Tesla'll work for you, man.

SPEAKER_03 1:09:35

I done seen every time I get on 820, I see somebody doing something crazy in a Tesla. One dude, I seen him straight up reading. One other dude, he was just straight up flexing on everybody. He had his feet kicked out the window, bro. I was like, dude here, man. He was in a Tesla, bro. So it's just like it's crazy, but that's what the world's coming to, man. Right before our eyes, you know. Remember, we used to think, man, in 2025, we're gonna have flying cars. Nah, we got robots, man. Straight up.

SPEAKER_01 1:10:06

There are a shitload of drones. That's a that's one thing.

SPEAKER_03 1:10:08

There you go. It is shitload of them, man.

SPEAKER_01 1:10:11

Well, cool, man. It's been a long episode, but it's always good to get back, hop on, and have some fun and get some of this. Uh well, I won't say it's an STR show 100% anymore. We're talking about everything now. You know, it's it's living, letting, letting and thriving is what it is.

SPEAKER_03 1:10:25

Straight up, man. We STR, MTR, pad split, house hacking, all of it. I'm I can't wait to get back to it.

SPEAKER_01 1:10:31

Flip it up, slap it. Okay, where can people find us, Micah?

SPEAKER_03 1:10:38

Man, man, find us on Instagram, TikTok, all that good stuff. Send us an email, livelethrive at gmail.com. Thank y'all for continuing to listen. By the way, um, I think we got we got a couple of guests coming on. We got a guest from Bigger Pockets coming on. She is doing, she actually wrote a book on how she's mixing midterm and short-term rentals together to create a thriving business. Something very similar to what we do. She's coming on. We got Frank Bosey from uh hostfully, he's coming on. So yeah, y'all continue to stay tuned. Uh, you know, it's been the solo Steve Epps, solo Mike Epps, and then the Epps together. So we're definitely gonna get the uh guests back on. So continue to listen to us. Thank y'all for listening, and we are out. Peace later.

SPEAKER_00 1:11:19

Thank you for tuning in to this week's episode of Live Let Drive. Be sure to tune in next week for all the latest in the world of Airbnb and all that entails. Bye-bye.