Cold open

SPEAKER_03 0:00

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SPEAKER_00 0:27

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 0:40

Hello, hello, hello.

Bailey bought his first property at 20 after reading Rich Dad Poor Dad

SPEAKER_03 0:42

And welcome back to another exciting episode of Live Let Thrive.

SPEAKER_02 0:50

What is up, Micah?

SPEAKER_03 0:51

Man, I am good, Stevie Stacks. How you doing?

SPEAKER_02 0:54

Good man. I got some coffee getting hopped up on coffee for this show because we're gonna have a great show today in this episode 203. Let's go, man. Favorite Airbnb VRBO short-term rental real estate podcast in the world coming at you from Fort Worth, Texas, and Arlington, Texas. And we have a great guest today, Micah. Who we got Bailey Kramer. So nice they named him twice. Let's see. Let me read a little bio about Mr. Bailey Kramer. Bailey is a real estate investor, entrepreneur, real estate agent, co-host, and a coach. Bailey uncovered his passion for real estate early in his life and brought his and bought his first investment property at just 20 years old. We got to dive into that. Since then, Bailey has focused on growing his portfolio of long-term rentals and short-term rentals. Bailey also founded his own co-hosting company and manages eight Airbnb properties in four different states. This will soon be scaled to 15 units for his co-hosting business. In his free time, Bailey enjoys traveling, playing sports, and eating delicious food. Welcome to the show, Bailey. How you doing?

SPEAKER_01 2:12

Thank you, guys. Great intro. I'm doing well. How are you guys doing? Thanks for having me on.

SPEAKER_02 2:17

We're doing good. We're doing good. You know, getting uh spring weather turning into summer for very quickly, tornado season. You know, that's how Texas North Texas does. Yeah, so you're in Orlando, huh?

SPEAKER_01 2:28

I'm in Orlando. It is hot down here.

SPEAKER_03 2:32

It was a it was a scorcher here yesterday. It was like 96 degrees. So yeah, man, we should felt it. So what's your favorite sport, Bailey?

SPEAKER_01 2:39

Favorite sport. I like playing and watching basketball. Oh, see, we can play as long as you have as long as you have a ball, whether it's baseball, basketball, football, I'm down to play.

SPEAKER_03 2:50

Oh man, you like me. There you go.

SPEAKER_02 2:52

Any type of balls, says Bailey. So so man, yeah, we're we're glad to have you on. First off, how did you buy a house at 20 years old? What's that all about?

SPEAKER_01 3:03

That's a great question. I'll give you the the short answer. We can dive in. So when I was 19 years old, I read Rich Dad Porad,

The $80,000 fix-and-flip in Illinois that netted $15,000 each

SPEAKER_01 3:11

have that next to me at all times, right here. And I was a sophomore in college, read the book, and I'm like, all right, I gotta get on this real estate thing. So I dive into bigger pockets, start learning, learning, learning. Long story short, I say, all right, I'm gonna go the multifamily route. I thought that was like the thing to do. I want to own a hundred units. These big numbers were really intriguing to me at 19 years old. Long story short, went through down that route and just kind of talked to brokers, talked to investors, did the motions, but didn't get anywhere with it. About a year after reading Rich Dad Poor Dead, I was a junior in college, 20 years old, and I I joined a mastermind group. It was b it was focused on multifamily, but there were still people who did single family in there. So someone came to me and said, Hey Bailey, I'm having trouble finding deals. Do you want to help me with some off-market lead generation? So I was like, don't know what that means, but I'm a you know, I'm a college student. I've literally all the time on the in the world on my hands. I'm I'm here to help. So we started doing texting and cold calling, like vacant properties, high equity, low equity, pre-foreclosures. That didn't really work that well. But after doing that for three months, we finally finally landed the first deal, which was a fix and flip property located in Illinois.

SPEAKER_02 4:33

Oh and you're in Florida, and you're in Florida, and I'm in Florida.

SPEAKER_01 4:38

So I I did I grew up in Wisconsin, so it's not like it's some random state that I've never heard of before. Um, my my family lives in Wisconsin, they don't have anything to do with my real estate, they don't own any real estate besides their personal house, but that's where I grew up. I know the area, it's about an hour away from where I grew up, so that was one thing, and then also the person that I partnered with who brought me in and said, Hey, I need some help doing this cold calling, he was local to the area, so it wasn't some random shot in the dark place in the Midwest.

SPEAKER_03 5:10

So question you that what were the numbers on that fix and flip, and why didn't you keep it?

SPEAKER_01 5:16

Great question. So, numbers on the fix and flip, we bought it for 80,000. We put in 40, touch 120, and we sold it for 175, but we had to hold on to it for six months just because it was uh it was my first time. My partner was pretty rookie too. He had a couple properties, but didn't have any systems down or anything, so we made a ton of mistakes with contractors, and then we got to a point where we're like, could we just burr this property? We're like, we could potentially, but but we were like, all right, we've been we've been looking at this projection of getting fifteen thousand dollars in our pocket each, and we're like, that sounds nice. After that much time, we're like, let's just take the money and move on. Also, me being a student, him not having the balance sheet that or he he he doesn't have a W-2, his credit's fine, nothing to brag about. So getting a loan wasn't gonna be a walk in the park. We had holding costs. We're like, let's just take our money and move on. In hindsight, yeah, we that would have been nice, but you live and you learn. It was it was nice for our first one.

SPEAKER_03 6:27

I like it, man. Living living you learn, learning learning mistakes, right? So, with that property, could you have turned it into a str?

SPEAKER_01 6:34

No, it's really not in a could I sure, but no, it wouldn't have been a great location for it. It was it was three bedrooms, one bathroom, really small, not in a vacation destination, lower income area. So it wouldn't have been a great short-term rental. What year was that again? That was 2021, February 2021. Oh, okay. So that was that's when I was a junior following up

Dropping out of college in January 2022 to run the business full-time

SPEAKER_01 7:08

this year, 2022. I officially dropped out of college three months ago. Uh today is almost in we're in March, right? Yeah, or for April, three or four months ago in January 2022. I said, I'm done with it. I just gotta focus on my on my business, and that's where that's where my diamond energy has to be.

SPEAKER_02 7:27

So what did your parents think of that?

SPEAKER_01 7:29

My parents were not thrilled, but they supported me, and they they were they were they were fine with it. I I've been prepping them that I've been wanting to drop out, but I didn't have a business to really fall back on. So I can't just drop out and and just whatever. So once I had my business up and running and going and proven, then they were like, okay, this makes sense. Go make you know, work on your business, the school. You can always go back to if you really want to, but I was like, I probably won't go back.

SPEAKER_03 8:01

I was dropout, I like it. Go ahead.

SPEAKER_02 8:04

So um, so your business, dive into what exactly your business is and why it it it come on, it gave

Two long-term rentals, two STRs, and seven co-host properties across four states

SPEAKER_02 8:11

you the opportunity to quit college.

SPEAKER_01 8:14

Yeah, so a couple different parts. First, I have the two long-term rentals. Those are yeah, just two long-term rentals I bought a couple months after buying the fix and flip.

SPEAKER_02 8:25

And where are those at?

SPEAKER_01 8:26

Those are in uh Illinois as well. Oh wow, taking uh yeah, taking over Illinois, and then I have two short-term rental properties that I'm a part owner in. One is in Illinois and one is in Wisconsin. And then um then I co-host as well. So that that got into co-hosting basically just referrals, honestly. People are like, oh, it looks like you're doing a good job hosting. I know this person who needs someone, I know I know someone who needs one. So that's how that started. And right now I'm managing seven Airbnbs, and in the process of um I'm I'm gonna be managing a property, eight-unit batik hotel that'll be ready in hopefully two to two to three weeks. We're still doing the renovations, but getting everything on the back end set up right now, so that'll basically double the the management piece.

SPEAKER_03 9:22

Cool, man. So I had a question. So uh your long terms are they in the same type of situation where they don't make sense as short terms as well.

SPEAKER_01 9:31

Yeah, one is like right on a main road, like okay. It it is just it is not good for a short-term rental at all. Okay, so that way that's that one. Then the other one, again, it's kind of in this lower income area. We're cash flowing really well on it right now. We did a we did a subject two deal if you're familiar. Hey, okay. We came in with basically nothing down, and the mortgage is $1,100 a month.

unknown 10:00

Oh, okay.

SPEAKER_01 10:01

Uh principal interest taxes insurance is $1,100 a month, and we're renting it for $1850. So we're just like, we we're just gonna keep riding with that. We we got a solid renter in place, and that's it's a stable one for sure.

SPEAKER_03 10:14

I like that. Hey, hey, definitely check out our last episode with Adam Johnson. He only does subject to, he does subject to the Airbnb and he wow crushes it with it. So yeah, definitely check that out. So, okay, now your your your big it sounds like your big niche is co-hosting and management. So, like right now, because you know, people starting to come down on co-hosting. How are you structuring your co-host deals?

SPEAKER_01 10:37

Yeah, what do you what do you exactly mean by structure? Like percentage-wise?

SPEAKER_03 10:42

Well, percentage, and then like, okay, let's say you're working with the owner, right? And you're co-hosting his property or managing it, you know, with like the newly got out of, I don't know if in your state, but like in certain states, uh, like the realtor associations are starting to find out how much money these short-term rental property management people are making. So, have you are you structuring your business to where you're not like a co-hosting or you're more like a hospitality brand, or how are you structuring that? And then, yeah, how much do you charge? We can go in that as well.

SPEAKER_01 11:10

Gotcha. That's interesting. So, as far as percentages goes, it really just depends on the property and like the owner. So the gentleman that I bought my first couple properties with, he bought some additional properties. So I'm managing those with him. We kind of do it jointly. He's more of like boots on the ground and just handling everything like that. If there's anything that can be done remotely, that's what I do. So for that one, we do 10%. Um, we're actually doing five percent each right now. So that's 10% total. We're gonna be changing it to 10 each, so 20% management fee total. And then for the other ones that are not with him, those are a flat 20% of the gross income. I don't take the cleaning fee just because I let that be their little bonus on top. But that's the percentages. As far as structure goes, I am a co-host, so I I haven't dealt with like the whole realtor association cracking down type deal yet. If it comes, I'll definitely have to adjust, but have haven't dealt with that just yet.

SPEAKER_03 12:17

That's what's up, man. Yeah, that's cool, man. Eight, you said you co-host eight of them.

SPEAKER_01 12:22

Yeah, so I manage two of the ones that I own. Okay, I also manage those. So as far as co-hosting, it's five, then two more that I manage but also own. So seven that I manage. Okay, and then adding on another eight.

SPEAKER_03 12:37

Whoo man, you're growing quick. Congratulations to you. So this is another thing. You said earlier, you said that uh vacation rental markets, you set touched on that. Do you only do short-term rentals in vacation rental markets?

SPEAKER_01 12:51

No, so I'm doing one that I'm managing for a gentleman in Terre Haute, Indiana, which is more of a for those who don't know, it's lower income. It does have a hospital, has a has a school there. So we're doing three-month leases for that property.

Vacation rental markets: Pinehurst golf destination and Wisconsin lake houses

SPEAKER_01 13:08

And that's for we have a traveling nurse in there right now, and then the other properties are all vacation destinations. So we have Pinehurst, North Carolina. For those who don't know, big for golfing. It's like the US Open is going to be there in 2024. The juniors, uh, world, whatever the biggest golf tournament. I'm not a golfer if you can't tell, but it's it's held there every year. It's it's a great, really cool place. So that's Pinehurst, North Carolina, Lake Geneva, Wisconsin. That's like a classic Midwest vacation spot. It's been around for over a hundred years, the very historical place for people, the people in Chicago and Wisconsin. And then the chain of lakes in Illinois, all the way north in Illinois, it's literally like 13 lakes combined together, and just an awesome spot for the summer.

SPEAKER_03 14:04

Oh man, okay. So the vacation rental markets seem to be the hot spots. Now, have you noticed, like, like with your vacation rental markets? And one thing that it a few years ago it stopped me from hopping in, but like since the pandemic, it makes me want to hop in. Do you guys still have like those snowbird seasons or is it constant ever since COVID?

SPEAKER_01 14:23

No, it is definitely not constant in Illinois and Wisconsin. North Carolina, Pinehurst is pretty steady. There's no like terrible, like in Wisconsin, in Wisconsin,

$200,000 to $300,000 gross per year on houses that sleep 20 to 27 people

SPEAKER_01 14:34

in Illinois, there's terrible months. In North Carolina, it's never a terrible month, it's just not always a great month for the off-seasons. So, in like in Illinois, our properties too are huge. They two of them fit, uh, actually, three of them fit between 20 and 27 people. So these are large properties, these are large properties. So, I mean, in the winter time, it's a lot of like bachelor parties on the weekends. Um, some some they they have to be big gatherings, or else the the price just isn't worth it.

SPEAKER_03 15:05

So, what's your gross income on something like that if you're offering 20 to 27 people?

SPEAKER_01 15:11

So for for the year, yeah.

SPEAKER_03 15:13

Like what's your like your average gross?

SPEAKER_01 15:15

We're gonna probably do so. One of them we're actually doing weddings at as well. It's zone commercial and it's totally legal there. So that one is gonna probably bring in close to in the 300s, 300,000, especially with these weddings, because we just we just got a couple weddings during our off seasons, which is April and October. Those are like we don't expect to make more than ten thousand dollars that month, and we just got bookings already, uh, some for some for this year, but already some for 2023 for eight to ten thousand dollars for the weekend. So, like since we're gonna be hitting those on the on the off, like what we consider our off season, that that's where that's where it's gonna be closer to the three in the three hundreds, and then the ones where we don't have weddings, those will be definitely in the two hundreds, um, probably two fifty for one house for one house, yeah.

SPEAKER_02 16:12

Holy smokes, yeah.

SPEAKER_03 16:15

And I'm happy you're doing it because I that's what I'm telling people. I think like STR, you got to start looking at how much does this thing produce per year, gross, right? Because if you like let's say you are going into those vacation rental markets and you're you're putting down 20, 30, 20, 20, 25 to get them, you better make sure those things can run with that, you know. So I like that model.

SPEAKER_02 16:37

Are you are you like hip to the new

Airbnb's new refund policy and the risk of $2,100-a-night cancellations

SPEAKER_02 16:40

everybody's talking about the new um Airbnb uh refund policy? Yeah, okay. So you got these giant, you got these big places with that people pay a lot of money at. And how how how are you planning to to avoid catastrophe?

SPEAKER_01 16:54

Yeah, great question. So, number one, for the for the bigger houses, a lot of our bookings come through come through VRBO, verbo. Nice, nice so I guess we're lucky on that sense to start. You know, with this new short-term rental or Airbnb rule where they basically deciding it sounds like what they're just doing is siding with the guests. If there's an issue, blame the host. That's kind of the gist of it. There's really there's really nothing we can do at this point to protect ourselves, honestly. I mean, like, as far as cleanliness goes, we relayed the message to our cleaners and let them know that that the rules have been flipped, so make sure you do an extra good job. Like, there's really I don't really know right now how many options we have. The other thing, too, that I kind of start to think about is uh our our minimum night stays. So for the summer, for me, the less turnover, the better. I just it it really doesn't make I don't it doesn't really make a difference to me because uh um everything's done remotely and I have great uh cleaners, but it's just easier, like I have to think less about it. So I'm like, so let's just do week-long stays, but then I got thinking after this new short-term rental or Airbnb rule, you know, if we have someone for seven days, well, that's a lot bigger of a risk because if they complain, that is a big chunk of change in the summer. For those big properties, we're charging $2,100 a night. So if we have seven days of that and one party cancels, that's a big deal, right there.

SPEAKER_02 18:30

Geez. So Micah, could you could you uh go over that new rule and kind of kind of let our fans know what it means?

SPEAKER_03 18:37

Man, for the people that have been watching my instant, my angry Instagram uh story post. No, but uh so basically Airbnb are what they're doing is they're removing the security deposit, right? So guests are no longer chart being they're no longer being shown a security deposit because the security deposit was fake anyway, and then they're allowing the guest up to 72 hours, so it's just three days, to complain, find any complaints. So let's say a guest checks in on Monday, they can complain about anything on Wednesday, cockroaches, and uh they have you have to refund the guest.

SPEAKER_02 19:10

You have to, there's no choice.

SPEAKER_01 19:13

Basically, yeah, and on top of it, since you have to refund them, if they if they want to leave and they and then Airbnb can only find them like a nicer place, well, you have to the host has to pay the difference, which is like which is like crazy.

SPEAKER_03 19:30

So you know who the you know owns those places they're gonna be sending them to, right? Airbnb hotel tonight, baby.

SPEAKER_01 19:37

Yeah, yeah, that's true.

SPEAKER_03 19:40

That's true, yeah, man. So I uh yeah, we'll and we'll be talking about that tonight on our clubhouse call. But yeah, uh the the big thing, but yeah, man, uh that that's that's a good way to think about it. If you go the seven-day route, maybe you get that bigger guess, but if somebody cancels on the third day, yeah, that can that can get ugly. So, but yeah, so now on those bigger properties, you're saying you're getting most of your reservations through verbo. I've mainly heard verbo in the rural southern states, you're getting them up north. How's that been working out? What kind of guest are you getting? Because I heard most of those people are older. You got older people having marriages and bachelor parties, or what's going on?

SPEAKER_01 20:17

Yeah, so a lot of our guests, it's all families, and it's a lot of the times what we're seeing is like the grandparents are basically paying for a family vacation for the entire family. Yeah, it's kind of it's kind of interesting. We we've had a couple on Airbnb as well, but a lot of the time it's families, and more often than not, it's either the grandparents are involved or it's like two families together.

SPEAKER_03 20:42

That makes sense because yeah, people on verbal are willing to pay more.

SPEAKER_02 20:46

Yeah. All right, so uh, one question, and then go back to the kind of the beginning. So, why do you have long-term rentals and short-term rentals? Why not choose just one or the other?

SPEAKER_01 20:56

Yeah, well, when I got started with real estate in general, I always wanted to just own properties. The fix and flip was just like I came upon it on accident. I always wanted to just own, got the two long-term rentals, and then this big one of the big properties I'm talking about was my first short-term rental. And the short story with that one was we are cold calling and doing our texting, found an owner who was super motivated to sell, but we're like, eh, this isn't it was the property, the purchase price we bought it at was $779, $779,000, which for me at the time was like crazy to think about trying to fix and flip it because that's a lot of risk. When previously our house has cost between like $68,000 and like $200,000. So I was like, ah, I'm not looking to risk a fix and flip right now on this, although right now it's gone up a lot in value and it would have been a great fix and flip. And then we're also like, ah, long term rental, it's probably not gonna be a great long term rental. So we looked on it. We just said what else can we do with it? We looked on Airbnb. Our next door neighbor, or that next door neighbor, had his property up on Airbnb and he was renting it for $1,300 a night. So we're like, okay, if our house is bigger and better once we fix it up, if we just got a thousand dollars a

The $779,000 seller-finance deal: raising $180,000 from the mastermind

SPEAKER_01 22:16

night during the peak season and we ran the numbers, we're like, if we just do that, we we get we bring in less than he's getting. How are the numbers gonna look? And the numbers look great. So we're like, all right, let's let's go for it. And now the numbers are looking a lot better, which is obviously a big bonus. And how much was the house? It cost $779,000.

SPEAKER_02 22:36

$779,000.

SPEAKER_01 22:37

And we did a seller financing with it.

SPEAKER_02 22:40

Oh, nice. $779K. And you're bringing in 30k if you did it just a thousand bucks a day. Well, that would just be peak season, like you said. So yeah, a thousand bucks a peak season. Yeah, yeah.

SPEAKER_01 22:51

So it's super hard to like that's why I'm not a big fan of just like saying, like, what's my average daily rate? Because it changes so much. In this in June, July, and August, we're at 2,000 bucks a night right now.

SPEAKER_04 23:02

Who?

SPEAKER_01 23:03

And we're about more a little more than a third booked up. We have July and August pretty well booked, just a couple like two weeks here and there. Um, so we're we're definitely gonna hit that number. So we're looking to do like 180 in June, July, and August. And if we can just hit whatever the number is, like 8k per month, not even we're gonna we're gonna be hitting our number.

SPEAKER_02 23:26

So Michael, what are we doing with one bedroom condos, man?

unknown 23:30

I don't have any.

SPEAKER_03 23:32

No, I I have a few one bedrooms down to Houston, man. But yeah, I'm starting to go for the bigger route myself. Now, on that owner finance deal, how much did you put down to get it?

SPEAKER_01 23:41

It was it was a hundred thousand dollars down, so it was like twelve point five or twelve point, it was a weird percentage, like twelve something, but the guy just wanted a hundred grand in his pocket.

SPEAKER_03 23:51

Now, oh man, okay. So how did you get the hundred thousand? Let's go into this.

SPEAKER_01 23:57

So we we we needed a hundred thousand dollars for the down payment, and we needed needed an extra eighty thousand dollars for the rehab. We put a brand new roof on it, it was like a twenty-thirty thousand dollar roof. We repainted the entire place, we did every single bathroom. There's a there was a tennis court outside, we striped it to be a basketball court. Nice. Um, we furnished the place, we we did a lot to this place for eighty thousand dollars. So, back to the question of how did I get it? We raised capital from people in our mastermind group. So we kind of had some track record and some success going with our flips, and then yeah, basically the flip was like the biggest um moment that we proved ourselves essentially to the group. And then once we bought a couple more properties, they said, When's the next deal? When's the next deal? Once we finally found this deal, we had people ready to go. So, yeah.

SPEAKER_03 24:54

This reminds me of Kent He. I never thought we'd be raising capital on single family homes, but if you're going for a really big ass house, raise the capital on it, and then you're bringing home 300k a year, it ain't that ain't no bad investment right there at all, man. Y'all syndicating want single family homes? That's next level, man.

SPEAKER_02 25:15

Yeah. Now, like over here, even still over here, 779 K for a house. That that brings you into like a higher income uh neighborhood, right? I don't know about over there. Uh, where is that house exactly?

SPEAKER_01 25:26

Yeah, it's in it it's on the chain of lakes. So it's in McHenry, Illinois.

SPEAKER_02 25:34

Okay.

SPEAKER_01 25:34

Um, the basically how it works is every house on the lake, I mean any house on the lake is gonna be more expensive than a house not on the lake across the street. So how it works where I am at is like I said, there's a bunch of lakes that attach to each other. The lake that my property's on is like where all the nicer houses are, and then all the other lakes are they're they're they're not bad houses, they're just not as nice, not as big. So I would say like the average around our lake, if I had to guess, it would be a million bucks. Around the other lakes, you can get one for between three and five hundred thousand dollars for like a three-bedroom.

SPEAKER_02 26:16

And how much would those rent for?

SPEAKER_01 26:19

Uh so the problem is a lot there's different cities and counties all across the lake. It's a pretty big area and the kind of weird zoning and stuff. So it's just some some of them just don't allow it, some cities don't allow it. A lot of the homes are in hoas, which don't allow it and are a pain in the butt. So there's really not many like great areas to do short-term rentals on this lake, except where we are, and there's one other smaller part that is.

SPEAKER_02 26:47

So you found the sweet spot, and so there's no hoa for these, you know, giant houses. That's that's amazing, right there. And then so it's uh it's on lake house. So there are people around you are doing it too. They're people that they're cool with they're cool with Airbnb or short-term rentals.

SPEAKER_01 27:02

Well, it's a funny story. So the house next door to us, like I mentioned, was isn't Airbnb, still is, and then the house on the other side of us is not an Airbnb. It was this older gentleman lived there by himself. His wife passed away, and I think they went there to retire. And he he was just in a big house by himself. And right when we got the property, my partner went over to introduce himself. Hey, we just bought this house, just letting you know we're gonna be doing short-term rental, just so you're not like why they're different cars every day, that kind of thing. And the guy was like, Oh, I hate short-term rentals, but he but there's really nothing you can do about it. And and then my partner said, Hey, if you're ever looking to sell your house and get out, we are here to buy it. So, fast forward, my partner actually ended up buying that house with a couple other investors. Oh no, so the one next to us is a short-term rental, and that one is also ours and a short-term rental.

SPEAKER_03 27:58

Now, okay, now what size is this house? Like beds, baths, square footage.

SPEAKER_01 28:03

Um so in the one, the first one that I'm talking about, it has like the main house and has a little guest house. Oh, the main house has three, four, five, like six to seven bedrooms. Some areas are like not bedroom bedrooms, but we we basically tell people like, listen, we can sleep, we we we show that we can sleep 16. Everyone's like, hey, can we sleep 20? We're like, you can sleep 20. It's not gonna be like uh very comfortable, but if you want to sleep 20, sure, go for it. Um, and then the coach house has two bedrooms, yeah, two bedrooms.

SPEAKER_03 28:39

Do you now do you charge for extra guests? Like, if you you're you're putting it up for 16. If you're bringing 20, hey, it's like 50 extra dollars per hit. You know, do you guys do that?

SPEAKER_01 28:48

Yeah, we do, and honestly, right now, I kind of just make a judgment call on how much I want to charge, honestly, because it's sometimes I don't know, sometimes it depends on the season, it depends on the month, depends on the rate that they're that they're booking at. There's so many different factors that go into it. So as long as we can hit our numbers, I'm cool with it. Depends on what type of group it is, too. Um, but yeah, it if they're if they have more than 16 people, we we charge extra. We don't really do it by head or by we do it by head, but we don't do it like per day. We just like to say, hey, listen, you're over a limit. It's gonna be an extra $300, extra whatever it's gonna be.

SPEAKER_03 29:26

And I have a question for this because we me and my family, we're we're going to Vegas next month, but we're trying to find this big ass house to celebrate uh my wife's grandma's 70th birthday in. So, but I notice Airbnb only lets you put up to 16 people. So are they telling you, hey, I'm bringing 20, or how does that work?

SPEAKER_01 29:45

Yeah, they basically just have to tell us because yeah, you're right, they can only put 16 people. So luckily, a lot of people are honest and be like, hey, we have 18. Is that okay? So that's nice. And as long as you ask, um, on Airbnb, I'm cool with it. At VRBO, I believe you can put in more people if I'm not mistaken.

SPEAKER_03 30:07

Oh, yeah. I don't know if that that may be a factor. Is that maybe a factor into why more people are on verbo trying to book or I don't know, and I'm I'm not positive on the on the on the on that.

SPEAKER_01 30:19

If if you can put more, I'm pretty sure, but not not positive.

SPEAKER_03 30:23

Yeah, so and also on your Airbnb listing, because we had to one thing about it, if yeah, you have more than 16 people, you have to like scrounge for listings, and I just learn this trying to find it. So, do you put somewhere in your listing, hey, we allow more than 16 in our listing, you're saying? Yeah, like some verbiage in there.

SPEAKER_01 30:42

Um, no, we don't we actually put in we don't allow events or parties either, even though we do, just because like

Turning down high-school prom after-parties and fraternity formals

SPEAKER_01 30:50

we've been getting the most wild requests recently. I'll get into those in a second, but we just figured if we just put that out there, no parties, no events, at least people aren't like, oh, they said parties and event on their listing. So let's just tell them we're gathering and then throw it, throw a big party. We like to set the president up front, no partying. But if they say, Hey, we're doing a bachelor party, we're like, sweet, that's awesome. And as far as these wild um events that we're getting we're getting requested, so we've had um about like six people request after prom parties the after party to be at our Airbnb. And I'm like, absolutely not. We've had graduation party requests, which are less bad than after prom parties, but I'm still like, no. Um what else have we had? We had a fraternity, a fraternity, um, like formal event. They're like, Hey, we're gonna bring our dates and rent out your house for for the weekend. I'm like, absolutely not, no, no parties. So yeah, and and luckily we're not struggling on the demand front. So if we can just turn people away who we think are gonna cause trouble and just attract the people who are gonna be better guests, then we're all right.

SPEAKER_02 32:07

So no donkeys, yep.

SPEAKER_03 32:12

Dang, okay. So that that that man, this business model like absolutely intrigues me. Like, you're the second guy doing this, you and Kent. Like, I'm like, so now have you uh thought about like putting these places on peer space and charging people for like a marriage or something on an hourly basis?

SPEAKER_01 32:30

Yeah, I I put it on Peer Space, I put one of them on Peer Space. I haven't gotten anything from it. Actually, one Netflix. Well, they said I don't know if it was legit or not. You know, you can you can never I I can't verify it just from the what I've they said that they're that they were doing a Netflix show and they were interested in the property. They never got back to me, so I'm not gonna yeah. So I mean who knows? Just for your Illinois property, yeah.

SPEAKER_03 32:55

Oh, was it Love is Blind?

SPEAKER_01 32:56

No, no, I was you know, I was wondering. Yeah, no, the and the the guy who had the inquiry, I looked, I looked up his like his location, his job. I think I looked up his name. It all seemed like it made sense. Like, oh, this is uh Hollywood, and he had he had a lot of reviews as well. So I'm like, oh, this is this seems legit, but he just never got back to me. But yeah, I'm definitely open to to uh anyone who wants to rent it for any period of time, you're welcome as long as you're running.

SPEAKER_02 33:26

You have a you have a direct booking site?

SPEAKER_01 33:29

We do, but we haven't utilized it just yet. We're we we maybe it's a false sense of security, but we really like just having Airbnb and Verbo like as our like protection. We obviously have insurance as well, but it's just like something knowing that we have someone to fight for it instead of just the guest is just kind of peace of mind to us. But um, if if we knew somebody personally, absolutely just hand me a check and you got the property, no. But but just for random people, we're not doing that just yet.

SPEAKER_02 34:05

It seems with the new uh with the new refund rule that you might think into doing the direct booking and taking it, of course, collecting a big deposit, right? Yeah, letting them book, and then of course you got the insurance in place. It seems like a seems like a good idea, right? Right, because Airbnb is gonna just be giving people back their money left and right, man. Right.

SPEAKER_01 34:24

So yeah, definitely something that we're gonna probably be getting into soon.

SPEAKER_03 34:29

One question I do have since you haven't been getting how much are you charging for an hour on Peer Space?

SPEAKER_01 34:34

I honestly have no idea. Like, I I I couldn't even tell you because we I I listed, I put it on, I put it on there, set it, and forget it. I haven't gotten anything from it, so I genuinely have no idea.

SPEAKER_03 34:48

Okay, because I was wondering, like, when you have a big place like that, you're already charging a thousand dollars a night. How much would you charge on peer space? Like two grand, you know, to make it worth your time, you know. Yeah, I'll that's a good question. I I want to see, yeah, how a higher end property does on there.

SPEAKER_01 35:03

Yeah, I'll I'll I'll have to I'll I'll have to push on there a little bit more because I honestly haven't, and honestly, summer we're fine with just our family bookings, so we probably don't need to push for peer space in the summer, but absolutely in the in the winter, that'll be when we'll we'll probably make a bigger push.

SPEAKER_02 35:24

So now you you're a youngster. How old are you?

SPEAKER_01 35:26

Now I'm 21. Wow, damn 21 pushing 300 bands,

TikTok and Instagram: controversy drives traffic, value builds followers

SPEAKER_01 35:31

man. Let's go.

SPEAKER_02 35:34

We're behind the eight ball, man. Um so you you grew up with social media. Are you are you using social media a lot in your business?

SPEAKER_01 35:43

Uh yes, not really so much on the front of like my Airbnb, vr, verbo, day-to-day stuff. I use social media more to educate other people on what I'm doing, basically showing the behind the scenes.

SPEAKER_02 35:58

And what are your favorite uh social media platforms to use?

SPEAKER_01 36:01

Instagram and TikTok are my main two. I've really started to push TikTok more heavily in the past couple months. So that's been a very interesting platform. I talked about the the new Airbnb policy, like that one blew up. People are like, Oh, you slumlord, oh you you deserve it, you know. So that's always exciting. But in Instagram and TikTok are kind of my main two, yeah, man.

SPEAKER_03 36:25

TikTokers, bro, they they they get on you real quick.

SPEAKER_01 36:28

Ruthless, ruthless.

SPEAKER_02 36:32

So how do you, I mean, see, I don't I'm a novice at it, man. I haven't really dove in too much to the TikTok and the IG too much, you know, all the old, I guess the all the old folks are on Facebook, right? And so, so what what makes how do you make effective uh TikToks or or Instagram posts, or how do you do that? And how does it to and to help your business to the max?

SPEAKER_01 36:54

Yeah, so for TikTok, the main thing, especially when you're just starting out, if you're at zero followers, number one, you need to post five times a day. That's my opinion. I I did it and I it works. I talked to other people, they agree three to five times a day on TikTok. If you're just starting out, and then what to post? The problem the that's the that's like the biggest problem because I share so much valuable information that get the least amount of views, and it's like I actually want people to know this information, that's why I'm sharing it. But the TikTok algorithm doesn't like that. When you share something kind of controversial, that's when people go crazy, or or when you share like a story, like for example, if every time I talk about I fired my cleaner, guests wanted a refund, um, guest caused damage to my property. Um I talk about like the prom after parties, like people love that stuff. The problem is it's not valuable at all, besides entertainment, which is like I actually I actually stopped on tick, I stopped being on TikTok for like two months because I came to a crossroads where I'm where I'm like, I'm not even providing value, I'm just people are people aren't even liking my value, they're just liking my my funny stories.

SPEAKER_02 38:14

Salacious stories, yeah.

SPEAKER_01 38:15

But then I realized that there are you know, that just helps me grow. And the people that are actually interested in learning more, they start to look at my page and start to follow me, get over to Instagram where I'm not sharing funny stories, I'm just sharing good content.

SPEAKER_02 38:30

You know, it's funny because I a friend of ours, a friend of the show, and you know, designer for our arbitrages and stuff, uh Sarah Done Glidewell. Shout out to Sarah. She blew up on TikTok and she um she said the same kind of thing like you. She would just you know post in your valuable designer stuff, you know, paint the wall this way, fix you know, these whatever sofas and I don't know. But she she said once she posted on um uh what what's that what's that um the noise the noise aware thing in the house? Oh yeah, minute, minute, minute, a minute, the minute, minute, whatever system. And she said she posted something on that, but the way she said it, it sounded like it sounded you could perceive it as she you you spying on your guests in your house, you listen in on your guests, anyways. That's not how she meant it to sound, but oh man, it it just blew up like like this controversial thing. Did you see that post?

SPEAKER_01 39:22

You think maybe I didn't see that, but I made one just like that, and people went nuts over it, and yeah, I probably I probably saw and and a lot of us on TikTok, we all do very similar with our own little spins. So I probably saw that one. She probably, you know, we all kind of it all kind of just comes up and everyone kind of makes their own rendition of it, but yeah.

SPEAKER_02 39:45

Of course, Steve. No, the the controversy leads to them checking out your page.

SPEAKER_03 39:49

Like, I'm wondering like what what what is it on TikTok that makes people like want to be like it's more of a negative thing, like like they cuss me out for saying that I charge more for a Tesla charger. One dude came on there and was like, that's why I wouldn't book your place. You always want to charge for everything. I'm like, damn, but I don't know, like, what's the algorithm with TikTok? Like, you you you get more hate male woman than anything.

SPEAKER_01 40:13

Yeah, yeah. I I think I think the haters are just, I mean, they're always gonna be there. Yeah, they're the the people that comment, it's funny, they're like, You are the worst, but they're driving the traffic because the more people that are commenting, the longer people are watching, the more people are the funniest, the best part is when people get into fights in the comments, you're wrong. No, you're wrong. And then it just pushes the post even more, which is like great. And I think for the for the average person, I don't think they look at the comment where someone's like, You're a stupid meathead, like whatever. I don't think someone's looking at it and be like, Yeah, this guy's this guy's terrible. They're probably looking at the person who commented and was like, What's up with this guy? You know, so should we be commenting back to those people to drive it up? Or yeah, so some sometimes I do comment back. Depends on what they say. I'm not, I'm not, I don't get in like arguments with people, like like a little like, no, you're stupid, no, you're stupid. But um, definitely when people are like, You're you are you are killing the real estate market. I'll comment back and say, like, why do you think so? Like, I I engage in more conversation.

unknown 41:20

Smart.

SPEAKER_01 41:21

I don't really I don't engage in like the you have like I don't I don't say anything negative, I just get I get I just get a conversation going.

SPEAKER_02 41:28

So you ask them why do you think so? And this and they say because you're a big stupid head or something like that.

SPEAKER_01 41:32

Yeah, and then I'm just like okay, like that's okay.

SPEAKER_03 41:35

I never thought about that because what I do is I just scroll past it, but if you actually comment on it, you're you're boosting it up. That's a smart idea. I'll I'll start doing that there.

SPEAKER_01 41:44

Like the people that some it's like some people, well, I mean, it's not a lot of people, but some people come after like my physical characteristic, your hair, someone's like your hairline, your your mouth, your ears. So, like those I don't comment back at. I'm just like, all right, that that's that's just a personal thing, I guess. Only when it's like real estate related, I like to comment back.

SPEAKER_03 42:05

Oh, okay, okay.

SPEAKER_02 42:06

Yeah, yeah, just show them your show them your gross income and then tell them to go get on their way.

SPEAKER_03 42:11

Yeah, that's what's up, man. That's what's up. So oh so you okay, so are you not using those platforms to drive direct bookings and things like that nature, right?

SPEAKER_01 42:23

No, no, um, no, and and I I was thinking about like, oh, should I put my listing in my bio? And then I'm like, you know what? The amount of random people that I that I come across, I don't want to deal with like like um I don't want random people like inquiring about it. If I if I'm talking about a property, I don't want I just don't want to draw attention to the wrong crowd for it. I'd rather draw the attention to me, have more people know who I am, and the people that are gonna actually care about those properties that are gonna rent them. I have it marketed so that they can learn about it, but I just don't need random people on TikTok having easy access to my listings. I just feel like that's gonna be a headache.

SPEAKER_03 43:04

Now, is there a different uh crowd on Instagram? Because I have noticed on Instagram most people do put their listings on there. Is it a different crowd?

SPEAKER_01 43:12

It's definitely a different crowd on on Instagram. I just don't like I see I see people have like Instagram accounts for their properties. I'm not against it. I if if you use it properly, properly, I just don't see a big purpose for it, at least right now, especially the accounts that just aren't posting. If you're gonna post a bunch of pictures, you have a cool background on the wall, so they send you the pictures and you post it and you make something of it, it makes sense. But I've seen a a lot of people just have one or two pictures. There's no harm to it. I just don't see any benefit of it. So, like, yeah, you could just have an Instagram account with the with the link in there, but I think it's fine.

Why Bailey doesn't link his listings on social media

SPEAKER_01 43:52

I just don't see a huge benefit, especially when the link is going straight to Airbnb, anyways.

SPEAKER_03 43:57

I like that. That is true. The people we had some people on that when the pandemic hit and when TikTok first dropped, they went like crazy viral. Uh uh in between Texas, they went crazy viral, and I think they got their direct bookings up to what I think like a hundred percent. It was crazy.

SPEAKER_02 44:16

Almost almost a hundred percent.

SPEAKER_03 44:18

It was when TikTok had their brand new algorithm, they adjusted people were you post-I don't know, anything and you got a million views, you know. So yeah, yeah, it's crazy. Like, like social media is crazy. Like, I just don't man, I because I still don't have a mastered the direct booking side on the social media side, so yeah, that's that's crazy.

SPEAKER_02 44:38

No, it just says only fans in their bios basically. Everybody got only fans. What's that about? Um that's cool, man. So, Master, you mentioned early on you you started a mastermind, even before you had a property, right? You just knew that this is what you wanted to do, and so what values do you get out of a mastermind and and what why do you believe in them?

SPEAKER_01 45:04

Yeah, masterminds are are huge. I I think that I definitely owe a lot of my progress and success to the mastermind. Number one, the bit the biggest piece of of an of the mastermind, any mastermind is a networking piece. So would I have been able to raise money without the mastermind? Maybe, but it was just it made it so much like I didn't have to like really worry about the raising capital piece because I was built into a network of people who I didn't have to convince, they all they already had the mindset. If I went to like if I approach some random person who didn't have any involvement in real estate and didn't know me, okay, they're skeptical. But for people that know me and like real estate, it becomes a lot easier of a pitch to them. So biggest piece networking, hands down.

SPEAKER_02 45:55

You know, you brought something to mind. You said people that aren't in the thing that we're into,

Masterminds: raising capital from people who already understand real estate

SPEAKER_02 46:00

you know, that even like for example, I you know, I have a day job, and every people ask me questions a lot because I'm I'm the real estate guy or I'm the Airbnb guy or whatever. And oh man, that's sound uh let me know. I want to invest, I want to invest. Finally, I'll drag someone to a place. Hey, this this place right here, uh the girl's gonna sell it to us. She said, if you want to try to you know go in on it or you want to try to buy it or whatever, ask me a million questions, right? And go check it out, look at it, ask me a million more questions, all these questions that they've read on the internet or something, and that don't even don't even factor into what running a short-term rental is, you know. And um, so, anyways, and they don't do anything with it because they just they're not in this world, right? But like you said, if we're in a group of people that are are investing in this and they'll see something, okay, that's a that's a pretty good deal. Let's let's pull our money, let's get it, you know. And it's just yeah, is you're exactly right, man. Because I mean the part-timers that just look at what we're doing and then they say they want to invest, they're not gonna invest, they're not gonna give you one dollar, yeah.

SPEAKER_01 47:01

And then the thing too is like those people like we we've we've had investors that are like so like so nosy, even when we're running the property, and I get we we didn't set clear expectations up front again, rookie mistake, but for future properties, if someone wants to invest with me, it's obviously they can do they can do their full due diligence, they can check out all the numbers. But as far as actually buying the property and operating the property, I'm not looking for anybody who's looking to be nosy. My my job is to send them checks in the mail every quarter. If the checks come, I don't want to hear it. You know, I you know what I mean. Like there's like the GP, the LP, the the active partner and the silent partner. So now I'm more up front with people. I am fully up front with people and letting them know that you know these these are the roles. And if this doesn't sound like if you want to be more active, then I'm just not the right person to invest with.

SPEAKER_03 48:04

Now you bring me to a good point that I

Structuring co-host deals and training new owners not to freak out over a pillow

SPEAKER_03 48:07

wanted to ask earlier, and I I now I figure out what I what I'm asked. When I asked about structuring the co-host deals, who do you find to be the most successful type of person that you want to co-host for, right? Because you you don't like people being hands-on, trying to, you know, how do you interview that type of person and figure out who that is?

SPEAKER_01 48:25

Yeah, well, the thing is, three of the properties that I co-host for are all brand new to Airbnb. So they are seeing all of them combined are equally as as uh as annoying, as as as pushy as like you know, I said to them, I said, listen, this is your first one, you just met me, I understand, whatever. And I was newer to it when I first started as well. So I said, you know, I'm I'm happy. If you have if you have an issue, if you think that the pricing's off, I'm I'm okay to have a conversation with it. Like, I'm uh you know, this is your property at the end of the day, I'm cool having a conversation. I'm like, the one thing you cannot do is answer guests back in the messaging. Uh-huh. That is the biggest no no. Besides that, you know, you do you, but it's funny. Like, we will get especially like early on, we had our first booking. The owner texts me, oh my god, this is so amazing. I'm like, This is Airbnb. Yeah, it's awesome. So it's more like it's more like cute because it's like they're brand new to it, yeah, and everything is like their first time. So it's like, like I remember our first our first book in the the um cleaner texted me and said, Hey, the pillow is the they they damage like a pillow or something even smaller than a pillow, and the owner was freaking out. He's like, Request money from them right now. I was like, All right, take a step back. It was like a ten dollar pillow. You know, we this you know, we can't just request money because they're gonna leave us a battery. We gotta be patient with it, let them leave the review. Let's, you know, I was like, there's a process to this. Also, if you're gonna freak out about a ten dollar pillow, wait till you see more things that are gonna happen with the property. So I I've I've kind of set the expectations for them as we go of like, okay, there's gonna be things that you know, this is just how it works. This is Airbnb. We we we charge more money for our cleaning fee. And I explained, listen, we're gonna pay our cleaner X, we're gonna pay our cleaner, let's say $150, we're gonna charge $175 to $200. So don't think that you're losing this, this like $20. You know, we we do charge the guests depending on what the issue is, but I'm like, listen, you have this extra money built in that I'm not gonna touch, that's not part of my fee. You can have all of it. So just stay calm when little, like very little things happen.

SPEAKER_02 50:56

Man, that's a great idea to put it like that to um to uh an owner. I never thought of that. I'm gonna use that in in my business. I'm gonna steal that from you because we just we do ghosting too, but to say that you know we're charging a little bit more than the cleanings, and that that's a little buffer in case little things get you know broken or a pillow gets stained or whatever the heck, you know, we'll have a little buffer there so we won't have to go after them for a pillow and then get a one-star review.

SPEAKER_01 51:21

Yeah, exactly. And then the other thing too is like, is it really worth our time to go after someone for 15-20 bucks? Is someone gonna want to stay there again? Because they made a very minor mistake that they didn't, they they it could have been a true, a true mistake. And for 20 bucks, it's like if they were good guests, you you see them coming back, you see them, you see them possibly referring people, they seem really like nice people. It's just not that it's not worth the hassle, personally, personally speaking, to to charge the little oh, you broke a you broke a plate, yep, that's gonna be eight dollars. Yeah, it's whatever.

SPEAKER_03 52:00

I'm happy you bring that up because that was one of the points I made about hosts being a liability to Airbnb. When we keep putting in all these claims and all these claims that Airbnb has to pay out, I think that's what Airbnb is looking at, right? Because they have 100%. Yeah, they have a $1 million insurance policy on 4 million

Why filing claims for $20 flags you with Airbnb

SPEAKER_03 52:19

people, and they keep paying out, you know, because I'm pretty sure they look at okay, what was our weekly payout to resolutions? You know, and and I feel like part of that's Airbnb's fault, they could just charge the guests a security deposit and it would cover it. But yeah, you know, those claims that that stuff adds up, man, over four million people. So yeah, 5.6 million listings.

SPEAKER_01 52:40

So yeah, yeah, and and the other thing too is like I don't want to submit a claim to Airbnb every single time for $20 because when I need something, I want to come to them and say, listen, we have like they're they're humans on the other end, although they're all international. It's not just like a machine. So I I think that they can understand too like, listen, we we don't we don't we're not trying to milk you guys, we don't chart, we don't ask for money back every single time. This time the guests really messed up, and here's what happened, and and I think they can see through to that, like a human-to-human type thing. Uh, if you now if you have like every single week you have a request from Airbnb, uh there's no doubt they're gonna be skeptical and probably flag you, like they're gonna look into you a lot more, in my opinion.

SPEAKER_03 53:32

And this is one thing we could do. This is the idea. I'm gonna throw this idea out on our clubhouse, but I'm gonna go ahead and throw it out now. This is one thing I was thinking, what we could do to ease it all up, right? Let's say you do me. This is what I've been doing. Well, I do it to anyone who doesn't have any reviews. I charge them $200 security deposit through the resolution center, right? They pay it out. This just happened. A lady broke the paper towel paper towel holder while she was there. And she said, Look, when she checked out, hey, I broke the paper towel holder, just take it out of my deposit. I took it out of her deposit, it was like eight bucks. Took it out of her deposit, sent her $192 back. That was all the problems. Now, if I was being petty, I'd have to go to Airbnb, ask them for eight dollars, then Airbnb. That way, now I'm off of Airbnb's bad list. I'm not putting in a bunch of claims, and the guest doesn't have to defend themselves. It's a smooth transaction. That's the way I could see the beat to get to ease up off the whole put a request in every time thing as well. Just an idea.

SPEAKER_01 54:35

For sure. And you sound like you had a very honest guest.

SPEAKER_03 54:39

And you do get the ones who pay who are down to pay us a security deposit. I found out they're the best guests. I found out they're really good guests. If you just request a security deposit, they're cool. Because I mean, didn't Kit he charges $700 to check in? Yeah, he charges $700. He he's out in Scottsdale, he makes like $150 a year off a property, $700 security deposit, they pay it and they check in. So yeah, it's it's definitely, I think it's something to look into as hosts.

SPEAKER_02 55:09

So one more thing before we hop off. Um, I was gonna ask you, it says you're a real estate agent too. Why why are you a real estate agent? What's that about?

SPEAKER_01 55:18

Yeah, so right when we bought the first property that we were fixing flipping, I was like, man, we're gonna sell

Real estate license for referral income, not listing homes

SPEAKER_01 55:25

this thing and I can get a commission on this. I was like, Yeah, it's it's too late though. Like, we we we we already we basically already talked to a realtor before I got my license, so we didn't want to take it away from him. But then I got my license up like all right, next one I'm I'm I'm I'm listing it. So we bought another property, and I was like, I'm I got it, I'll list it. So I I list I listed that one, and then now I strictly do referrals. I don't do like I'm not a real estate agent in the sense that I'm looking to buy and sell homes for people. That's not what I do. I'm strictly on referral basis now, like me sending referrals to other people. So I actually just had somebody they're closing, supposed to close April 11th, knock on wood. Um, that would be an awesome referral, but yeah, that that's just that's where I keep it at for now.

SPEAKER_02 56:12

So referrals. So someone you know someone's gonna sell a house and they talk to you and you say, Oh, I'm not gonna sell it for you, but I'll send you to somebody else. Is that and you get money for that?

SPEAKER_01 56:21

Yeah, or like in this case, this guy's looking to buy a house. Okay, and he said, Hey, do you have any good realtors you know in Pinehurst, North Carolina? I said, Of course. So I sent him, I connected them. I and I know the realtor, of course. I'm not just sending to a random guy. So I'll text him, Hey, um, I have someone who's looking to buy a house in blah blah blah. Super, super serious buyer, know him personally. Are you cool if we do a a 25% commission? I get 25 of his percent of his commission. And they're always like, Yeah, of course, like why wouldn't I take the serious buyer? Right, right.

SPEAKER_03 56:58

You know what? Yeah, my my mentor always talks about that. When you are a real estate agent with your license, you need to focus on being an investor. So make your money off referrals, refer all that other crap out, make the money, and then you focus on the big deals like you're doing now. Congratulations on that. And that question, and that question I asked you earlier, it looks like you're already in the in the clear. Because if you're under a brokerage, you don't have to worry about property management and stuff like that because you have your license, you're under a brokerage.

SPEAKER_01 57:26

Yeah, I I I I've heard of the rule. I'm honestly not too like I'm not too up to date on the man like I know like the long-term rental management's a different story. I don't know like the short-term rental nuances per se, but yeah, I do have my license, so I think that definitely is a step ahead. Oh, yeah, man.

SPEAKER_03 57:46

10 years, man. You're about to be a multimillionaire. Congratulations.

SPEAKER_02 57:50

Maybe five years, yeah.

SPEAKER_03 57:52

Five years, yeah. You'll be yeah, easy.

SPEAKER_02 57:55

Oh man, it's been a great show. So young, already knowledgeable about real estate and the short-term rentals. Um, is there anything else you want to tell tell our fans? Any any what I always like to ask, you know, what you something that you learned like uh like a Bailey hack, you know, in doing in doing this, either operating short-term rentals or whatever, the real estate side, something that you've discovered as like a cool trick that, like, oh, no one's even thought of that.

SPEAKER_01 58:19

Okay, so two pieces. So, like, one is like more the generic, like, your network is your most important piece. You don't need like I didn't have a lot of money when I got started, I didn't have a great credit score. I really didn't have any of the pieces besides time, which is definitely a big piece. But the the way that got me to where I'm now is through networking. And uh when I started in real estate, my network was from scratch. So Facebook groups, bigger pockets, hit me up on Instagram, hit up people on TikTok, like Facebook groups, great places to network. And then an actual tactical Airbnb short-term rental trick is so do you what what software do you guys use to manage your properties?

SPEAKER_03 58:59

Guestie for host for me.

SPEAKER_01 59:01

Yeah, okay. Guestie, yeah, and okay. So I I use guestie, I use guestie for pros now since I have more properties. But I was using hospitable.com and a trick for hospitable.com, and I need to I need to like figure out how to do this on a guestie. I don't think it's possible right now, but essentially I had this message that sent out to the guests automatically. It would say, Hey guest, um so excited to host you. Your check-in isn't what 30 days down the line. I also noticed that uh you there was an extra day after your after your checkout date. Are you interested in an extending for a discount? And for the people that said yes, it was just an extra night for free. Or not for free, like we we we tacked on an extra night that would have been vacant if that person didn't book. So it was like this an automatic message that's sent out. You can set up through hospitable, they have like these smart messages that know when a day is actually vacant or not. When we were using hospitable.com, it made us like literally thousands of dollars. The property's renting at like it was in the winter, it's like $700 a night. But so you just need a couple of those, and it's like, yeah, it's a no-brainer.

SPEAKER_02 1:00:10

So that that's you know, that's funny because my partner Frederico in our in our um co-hosting business, he he he's he's the technician, you know, he's uh he's getting all the software is all the you know, running everything. But one thing he he loves hospitable, and but we knew you know, we're already you know approaching 50 units. We needed something else, 50, yeah, yeah, under management and then arbitrages of our own, yeah. So so we needed something else, and we're looking at several right now. I think we're gonna uh forgot which one he's going with, anyways. The long story short, he um we decided to keep hospitable because of that, because of the the messages you can do. So if you just now said it made you thousands of dollars, why not keep it? You could still you could do both, yeah.

SPEAKER_01 1:00:56

Yeah, we we we could do both, and I honestly I'm leaning that way right now because we've had some slight not we'd have issues with guestie, it's just they haven't con all of our properties haven't been synced with VRBO yet, which has been kind of a hassle. So I'm kind of like doing both. We it's kind of confusing, but I definitely think it's it's a great idea because guestie does have some features. I like their distribution a lot better, but guesty but hospitable is really good for um for that messaging feature.

SPEAKER_02 1:01:26

You know, you know a hack that they they showed me, me actually our VA was telling us it the hospitable shows shows you their phone number of the guests before they book, and so if you're trying to get the um yeah direct bookings, there you go. There's your end.

SPEAKER_01 1:01:42

Yeah, so yeah, yeah, yeah, for sure.

SPEAKER_02 1:01:44

So, anyways, yeah, there's some there's some cool hacks out there, y'all. Um well, thank you for hopping on, man. Hey, do you get on Clubhouse at all? I don't know. Okay, okay. You don't ever, ever, ever, ever get on there. All right, yeah, because we're about to hop on there after this. So we'll send you maybe we'll send you a little link and you can hop on and say hi. That's a great networking tool, by the way.

SPEAKER_03 1:02:06

Yeah, oh yeah, definitely is. But yeah, man, uh, the where can people find you?

SPEAKER_01 1:02:11

Best place Instagram or TikTok. My name is I think it's like the underscore Bailey Kramer. Just look at Bailey Kramer, you'll see me. I have real estate all over the place talking about short-term rentals. So hope I think there's only one Bailey Kramer talking about real estate and short-term rentals right now. Um, so yeah, you can find me there.

SPEAKER_03 1:02:31

I'm not following you. What's going on with me? I'm just following awesome.

SPEAKER_02 1:02:36

Sign up for his OnlyFans today. Don't wait.

SPEAKER_01 1:02:40

Yeah, thank thanks, guys, for having me on. Appreciate it. Yeah, man. Thanks for coming on, man.

SPEAKER_02 1:02:45

And we will see you. Hopefully, yeah, we'll see you maybe soon and see your progress. And yeah, we're excited, man. So young.

SPEAKER_03 1:02:52

Yeah, no, keep it up and keep it up, and good luck to you.

SPEAKER_01 1:02:56

Appreciate it.

SPEAKER_03 1:02:57

All right, we are out later. All right, that was episode 102 of your favorite L2 203.

SPEAKER_02 1:03:06

Damn. You said what you said.

SPEAKER_03 1:03:11

I rolled it all the way back, man. I'm downplaying how big we are, man.

SPEAKER_02 1:03:18

Yeah, 100 was so long ago, man. She really was, dude. 100 was yeah. Bailey Kramer. That was Bailey Kramer on episode 203, BK.

SPEAKER_03 1:03:30

Half a million on two doors. That's crazy.

SPEAKER_02 1:03:35

21 years old. Uh I'm arguing with people over a $100 uh a night listing at a one-bedroom condo. What the hell?

SPEAKER_03 1:03:43

What the hell are we wasting our time for, Michael? Half a million a year at 21 man strippers and cocaine. I'm joking. Oh man. I'm joking. I'm joking. But yeah, man. Good luck to him, man. I'm happy he's doing it at a young age, man. So uh all right, man. Yeah, so where can they find this thing?

SPEAKER_02 1:04:06

Follow our OnlyFans page. Uh Livelet Thrive at OnlyFans. I don't know. I don't even know what that is. Uh live let thrive at gmail.com. Send us a message. Uh yeah, we got our emails too, but that's the place you can find us the most. So just send us an email and and we'll answer it. And we'll put you on the show. You know, come on the show, have some fun with us, you know, have some thick skin though, because we, you know, we go hard in the paint.

SPEAKER_03 1:04:31

For sure, for sure. And uh, yeah, yeah, yeah. You can find us on Instagram, Clubhouse. We're about to be on Clubhouse every Wednesday, 7:30. So yeah, come check us out and thank you for continuing to listen. And we are out. Peace later.

SPEAKER_00 1:04:46

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. Bye-bye.