SPEAKER_03 0:00

My parents moved to Florida, Destin area, and they bought into a couple of uh properties and started uh renting them out themselves, managing themselves. And so I kind of came in with uh with my paradigm of uh you know I want to buy in, but I want to try and learn what you know, you know, you know, build that build that bridge, that bond uh with with my dad and what he had experienced along his growth walk opportunities.

SPEAKER_00 0:29

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_01 0:40

Hello, hello, hello, and welcome back to another exciting episode of Live Let Throw. What's up, Micah, man?

SPEAKER_05 0:52

I am good. How about yourself, Steve Stacks?

SPEAKER_01 0:55

Good, trying to avoid this um thunder and lightning over here. I'm on the second floor, so it's coming straight at me.

SPEAKER_05 1:01

Yo, killing me. Yo, it's killing me.

SPEAKER_01 1:04

But we're bringing the thunder today because it's episode 92 of Live Let Thrive, your favorite um Airbnb, VRBO, Home Away, uh Turo Lift, all that stuff. Shark economy podcast. And we got a special guest from today. Uh Mr. Robbie King. Give it up for Robbie.

SPEAKER_02 1:23

Off clap.

SPEAKER_01 1:24

What's up, Robbie?

SPEAKER_03 1:25

Hey, what's happening, you guys?

SPEAKER_01 1:27

You excited to be on our show?

SPEAKER_03 1:29

Well, you know, I appreciate you guys uh you know inviting me and uh allowing me to be a part of what you guys are making happen.

SPEAKER_01 1:36

Oh, well, it's uh pleasure's ours, man. I know you're gonna you're gonna throw some good um some good stuff at us today, and we're and we're excited to hear all about the your real estate journey and short-term rental journey.

SPEAKER_02 1:49

Oh yeah, yeah, the short terms. Yep, yep. It's all in the short terms, right?

SPEAKER_01 1:54

Yeah, you make your long money in the short term. I don't know. I just made that up. Um All right, Robbie. Uh go ahead and tell us a little bit about yourself and how you started your um real estate journey.

SPEAKER_03 2:06

Oh man, real estate journey. Let's see here. About myself, 45 years old, uh, Nashville native, Nashville, Tennessee native. Um let's see here. Uh I'm a mechanical-minded individual. Uh I like to know how things work. I like to dig in and engage and uh in the nuts and bolts of things, you know. I I really enjoy um design and you know that in that regard and entry. So I like to take things to uh kind of another level. Uh can uh so so what that uh what that allows me to do is take things beyond where most normally kind of shut down. Um and a lot of uh I guess I have that ability to to utilize my patients' muscles a little further than most. Um but uh it's also in in engaging in uh in in whatever it is I'm pursuing, you know, and really digging in. So but so okay, so properties. Uh let's see, I run into a property, I was uh laid up with a broken leg in California, a little motorcycle wreck, and and I was like, you know, I'd really like to grow my relationship with my dad, and he was a property owner. Uh and and uh I guess all growing up we had rental properties.

SPEAKER_04 3:25

Um so I don't know, it was always uh when the when the people would leave, we would come in and have to renovate the house.

SPEAKER_03 3:33

Um people aren't as good uh stewards as uh they should be with other people's properties. So uh that's what we considered, I guess, the uh the the long-term rentals in that regard. So anyway, so um uh my parents moved to Florida, Destin area, and they bought into a couple of uh properties and um started uh renting them out themselves, managing themselves. And so I kind of came in with uh with my paradigm of uh you know I want to buy in, but I want to try and learn what you know, you know, you know, build that build that bridge, that bond uh with with my dad and what he had experienced along his growth walk opportunities.

SPEAKER_01 4:16

And what year was that about? Uh that was 2001. Okay, cool.

SPEAKER_03 4:21

Uh 2001. So I uh bought into a little second store unit, you know, looking at the water in Beston, Florida.

SPEAKER_01 4:28

Um how much was that?

SPEAKER_03 4:30

I think it was 132,000 at the time. Cool. Uh let's see here. So uh didn't even know about negotiating, giving prices going, just kind of fall right in. You know, totally agreeing with it. And uh it as I uh even though I had the parental guidance as I call it, you know, of how to purchase, I just bought in. So it was just meant to be independently.

SPEAKER_04 4:53

So so then it was a matter of uh learning how to manage it.

SPEAKER_03 4:58

So I kind of jumped on board with the family and they're managing paradigms of uh of ideas and and getting uh rentals and getting people, and we did a lot of snowbirds or or the long-term stays throughout the year, uh winter months normally. Um it didn't necessarily profit until I started bringing well let me say it differently. Um the profit would come in, but I just didn't necessarily know how to increase it to where it would uh completely pay for itself because I had association fees uh or dues, which were I think at that time around a thousand uh a quarter. Um now they're up to fourteen hundred, that's eighteen years later.

SPEAKER_01 5:43

Uh so every three months you gotta pay fourteen hundred bucks?

SPEAKER_03 5:48

Yep. Yeah, yeah. On top of the mortgage, right? Yeah, on top of the mortgage. So it uh it's it's somewhere around five grand, you know, every every year. Whatever that is up to, yeah. So wow so you know and and it was just okay, how do you manage this? You know, how do you how do you file things? How do you, you know, an an organization is really what it came down to is and communication, of course. Um and it it did, it bonded my dad and his pursuits, you know, to myself. And it was just a uh one leg of the I guess uh interests that I have that uh that I was polishing or working on. And uh and it seemed like as I sustained it and paid the unit off in time, it allowed me to uh no matter uh it seems like no matter what you're doing, if you're applying yourself, you're going to grow, you're going to get better. Um it just takes time. Um you know, was I was I really digging in and trying to every month, every year, trying to really engage in and really making this thing profitable. I really wasn't. Uh, you know, I did my normal interest in things. I had my aviation thing and my motorcycle thing and other interests, but and this was just kind of a site entity kind of somewhat sustaining itself. Um you know, I had a job that would allow me to make payments if if I you know the income wasn't there, but it it it wasn't a burden, so to speak, on my on my payroll, uh pay rate. And at that time I wasn't like a full-time uh not full-time, but uh full-paid uh employee for the the airlines. So it was uh and I was I think I was living in California at that time. Yeah, I guess I was California, yeah. So uh it was it was what it is, and and we just we we put it together and you know one month at a time, uh one one situation at a time from the HVAC going out to draining from upper units, uh little water leaks creating issues on lower units, uh, over you know, just the build of the structure or the design of the structure that basically I bought into. Uh you know, I learned about um you know the association perspective and what they what they cover versus what I cover, you know, from the interior to the exteriors, and then like the fine line of uh oh, let's see, windows, you know, because there's exterior and there's an interior to windows, and you're like, okay, association, I need I need my windows replaced because they're falling out or they're deteriorating and and uh and and then say well windows are covered by homeowner, you know, and I'm like, well, then I have to go to the the person that writes the policies for associations for Florida or however that worked, and uh and it for what they state is that it's the association that handles that. And this is just one little occurrence, you know, that that goes along because it's it's many. Um just like any kind of relationship. You know, you're gonna have these things at you and you work through it to a point and then you learn a few things and then you step back and then you reassess it and come at it again. Um but you know, back to that window thing, you know, and and really what it comes down to is whatever the association writes, they have the that's the agreeing word versus what their standards are for Florida. And that took me a while to kind of soak in. Uh but it is what it is, you know, and then I have to get things in writing and things signed so that way I can really understand it. Because one thing with working with airlines, I've learned about policy. Uh it's not about the people, it's about the policy. And and really that was a that was a hard thill for me to really understand. Because you know, I grew up in a in a existence of you invest in the people and you work through things, but I'm learn I've learned since then that you know a lot of life and the world runs on the dynamic of well, what's the policy say, you know, insurance policies and this policy, and that you know, and and so that's something that I'm like, okay, I really gotta dig in. So that means you have to take the time to engage in these big thick manuals of policy that people write for certain things, you know. Um or you know, just uh as you go along, you find it, you know, in the in the multi-page dynamic of what a policy is, and you uh you highlight what you need, you know, and you learn as you go. And that's kind of what I did. I learned as I go, you know.

SPEAKER_01 10:33

So did you start off um self-managing your your condo? We did, yeah.

SPEAKER_03 10:38

Um let's see, I jumped on the the parents' paradigm, so to speak, where they were doing the self-managing, self-repairs, self-every aspect of it. Um it's all in-house, kind of family-owned.

SPEAKER_05 10:50

Uh so you were living in California and managing a property in Destin?

SPEAKER_03 10:55

Yes. So what were the hardships of that? Uh the hardships, well, let's see, you've you've got to uh when you've got these issues, I guess really it's it comes down to when you've got the issues, you get the phone call, then it's a matter of extending out of pay well who who are we contracting to do the repair, who's going to do the repair, and then that's where you build your network of uh people who can make things happen for you. So that's uh that's what we do. We build um, you know, if if a flooring uh group comes along or does some work for us and they're really good and price is right, you know, you you build really, you take them to lunch, you talk to them, you know, hey, this is what we got, this is what our properties are, these are things we're looking to do. We and and currently we're doing two renovations on two units, one more so than the other. Uh, but when it comes to like flooring, uh any kind of uh system repairs, uh kitchen, kitchen renovations. Um let's see, we ran into and I'm you know, from um like gypsum product. I don't know if you've ever heard of that product, but that's a product that they spray over the uh structure underneath the flooring, and then they build up from there with a hardy layer, and then they put like tile on and different things. What had encountered there was this stuff breaks up underneath the flooring or the tile or the carpet, whatever blade, and you know, those kind of things, and that can add a ten thousand dollar expense onto just putting new flooring in. So those kind of dynamics. Um or you can you know inspect it and do your repairs yourself, and that's what I do. I take the time off, and you know, if it's it's bad enough, we'll go down there and handle these challenges, I guess, as a team. Because you know, that whole multi-mine, you know, pursuing one goal is is how most things are created.

SPEAKER_01 12:51

And see, I know I know you from American, from American Airlines. We worked there together. And um so it must be it must be a big help that you can hop on a plane and go check out your unit yourself, right? And uh that's right, that's right.

SPEAKER_03 13:05

And that was one of the facets that I had to uh you know for the decision. It's like, well, what tools do I have in the bag to pursue this goal? You know, what can I do? You know, at that time I think I had like flexible ships and three ten, you know, four like four four-day work week, you know, a lot of a lot more flexibility uh to work with. And of course those big things have to change, you know, like your uh you can't necessarily hop a plane over there. You've got to build a relationship with your H V A C guy and your boring guy or your drywall guy. And and really there's only a few that you really need because when it comes to the good projects, you're gonna guy in there as well. Like hire like a general contractor to do everything versus specialists specifically. So yeah, so usually when it comes to that, you know, and you take your couple of weeks off work, like vacation style, and then you start that's that's how we kind of overcome situations like that.

SPEAKER_01 14:16

So big question I got is um this is 2001, this is pre-Airbnb era, right? It is, yeah. And so how did you find um renters and how did you manage calendars? How'd you do all that before they had this you know nice little app we could do everything on?

SPEAKER_03 14:30

Right, right. You know, the uh we had large rolls, laminated rolls of of about a year per month. And it was uh you put a hash where the check out check-in and checkout is. So, you know, the checkout is uh, I guess it's uh four a.m. on the checkout, and then the check-in is four o'clock or something like that. So you have that hash, you have that five-hour window to get in there and clean and repair and do whatever between between guests. Uh as far as marketing, um anything you could from banks to uh because we didn't really have online potentials then. There was a lot of it was word of mouth. Uh and then the snowbirds, they go back and then they share with their friends. And the idea was to always have a log or a register on the table to write, you know, for people to write their informations, uh, and then we would collect those, and then we would make cold calls throughout the year. Hey, this is you know, destin calling, just wanted to see if you wanted to come back, uh, you know, and this is how we are, and this is what we got going on. You know, how have you been? You know, take the take those moments, and of course that could go into a couple of weeks, but that's you know, that's what you do. You've got to generate your you've got to plant the seed of interests um you know with these uh with these previous guests.

SPEAKER_05 15:46

So uh could you explain the term snowbird and what does that mean?

SPEAKER_03 15:50

All right, snowbirds are uh people from I guess uh the from colder regions, uh climates that uh sometimes Michigan, just upper upper portion of the United States, and therefore uh you know uh up into Canada as well. It can be up from other countries. They the term is for months basically they come in for uh whole months, um, usually multiple months, and the idea is to get two months out of every snowbird uh versus just one month, because a lot of times they'll come down for the two-month period or three months or four months, depending. Um and that usually starts around January or beginning of the year, uh, is when they'll come in. We've had some that come in in November uh and then they'll stay till March. Um that's a rarity, but it's it's good income, it's a solid you know, rent, uh, or it's a solid income for those months that they're occupying the space. Um and of course, you you know, it when they're there for that long, you you you knock on the door, you talk to them, you get to know them. And of course, at that time, before we had like the the Airbnbs and the online and the property managing um or the managers, the uh you you got to know them, you know, you you knocked on the door, you had dinner with them, you you know, you you engaged with your guests, uh you know, drawing, bringing the people together, you know. Uh and that was just that was that was part of what we did. Now nowadays a lot of people come in, they they don't want to know who owns the place, they don't want, they just want their own little space. Uh I don't know if that's a good or bad thing, because you still got you still got both dynamics. You know, if people are want you to engage with them, it's okay. Uh but some people usually, you know, you they they don't necessarily bring that up front, um, but you kind of get a feel when you're talking with them and setting reservations and and uh that oh okay, these are people that we can engage with and grow with, you know, versus the ones that are just come and go uh the the short-term stays.

SPEAKER_05 18:04

Uh I guess my next question would be have you like because you said you'd have been doing the short-term and the long term, have you decided, have you like put listed your places on Airbnb and used that as a uh medium yet? Or is it still going the other way?

SPEAKER_03 18:20

Airbnb is on there. Uh I bought into a property manager that uh they project a certain amount of of rents per year. That's their their claim, say. And other ones, uh there's other property management groups that I've interviewed with and and uh tried to do business with, they actually project we will get X amount of dollars and up. And I'm like, well, okay, that's great. But uh a lot of times you you're filtering out the good and the the truthful versus the the quality, I guess, you know, because you've got people that'll that'll tell you the world, but then they'll deliver what they'll deliver, you know, which usually is less than so it's more about okay, well that's good that and and then we've also run into guarantees. Well, they'll guarantee X amount of dollars um per year for your unit. Um but a lot of times it you know it's it's like show me. You know, don't tell me what you're gonna do, just show me what you're gonna do. And those those groups can let's just say we've never gone with one that that projects that much because there's always something that makes the relationship fall apart. But yeah, yeah, the Airbnb, I like we're with a group called Southern Vacation Rentals currently. Just signed on to them uh and uh you know negotiated the more uh the management fee down, brought in multiple units to get that management fee down.

SPEAKER_01 19:49

Um what's the fee? What's the percentage they take?

SPEAKER_03 19:54

It's uh 20%. Okay. So the uh and what you can do, you can leverage with because they don't know what you take what you have and what you don't have, so that's some potential of, you know, we come in and say, hey, I've got this one unit, I want to build a relationship with you guys, what's your lowest that you can you know charge for a management group fee? You know, what's what's the fees, what are you know, and and between 15 to 20, uh, but then you bring multiple units in and it gets it gets lower. You you can you can negotiate it down. And then as as I understand, you can more units you bring in, and it doesn't even have to be your units, you can take responsibility of someone else's and kind of I don't know if that's called micromanage it so to speak, or you're you're you could you know because you if if you're if you're good at something, you know, usually people want to jump on board with you, especially if if if everything's transparent, you know, in how you're stewarding the the property. Um so I guess what I'm in in addition to that is Airbnb is one of say seven uh meetings platforms that that uh that the seven vacation rentals and majority of them utilize to get people get the get the uh information out there on the property.

SPEAKER_05 21:22

So the uh property management company, because I always have a question for that because of the short-term rentals, because it sounds like you're more on a vacation rental destination. What do they do that you can't?

SPEAKER_03 21:34

You know, uh really they handle, and I guess the the long of it is they handles they handle the money, they handle issues where the three AM phone calls, um they have linens, extra linens, and the things that I mean w that we we have stock of, but it's not in a Let's see. Like our Lanham program, you know, we we don't have multi, you know, hundreds of sets that are going through a cleaning service. We have personal items that we bought or we we did bought when we were managing, we would take back and wash them at our own uh washing machine and then prep the facility or the unit back up for the next guest. So it takes a bit of burden away so that way you can somewhat live, you know, the the so it's I guess it's just less burden on you on the daily. Um and it's also when you're when you're you're your own team, it's good to have another team kind of not overseeing because basically you are negotiating, or you're telling the management group, this is what I want to do with this relationship, and you've got to make sure you get all this straight up front, you know, what I'm willing to pay, what we're you know, this all the all the little details uh about this relationship. Because I guess once you're in when you've signed, then you know you can't expect to change it, you know, unless you have that clause in the in the contract. Uh and that was another thing, you know, try not to jump on board with contracts that lock you in for over a year, so that way you're stuck even if you don't like it, you know, when it comes to these property managers, because you can I you know ride it for a couple of months, see how it works, and step away. You know, those kind of things. Um so yeah, so I I guess the uh I guess I got kind of lost point on lost on that question.

SPEAKER_01 23:36

But um But yeah, we're wanting um because you've you've had several different property managers. How do you know how do you know how to choose the right one? I mean, what kind of do you go in there and you interview them or how does it work?

SPEAKER_03 23:50

Yeah, so I I interview them like I'm going to build a business with them. You know, I'll I'll I'll meet at the my take is to can I meet you at a restaurant and let's talk it over. And if they're flexible like that and they can they can bring you into their day, then that that speaks a lot to me and you know that to know that they will go above and beyond, you know, and to meet up with them. Now they've also these property managers, they've got the way the way the um I guess the internal structure of how they operate is they've got a a group or of two or three people that only pull in new customers. And then so you've got to make sure everything is clear that you speak with this first frontline individual is this is what you get at the end, you know, and that's why you've always got to take your notes as you're because as you're engaging with this first-time individual. Um, you know, this upfront, this person at the restaurant, say that you've you've met and they've taken the time with you. But that's their job. They're to pull new owners in. Uh let's see here, and I think I've got some notes on that pertaining to um yep, yep, yeah, yeah. They're the first the first line contact of their company, and they they'll tell you uh about what to expect uh when being in that relationship, you know, with the said property manager. Uh but what I've encountered, and I'll just throw this out there, is that the uh sign onto the relationship or the or the contract and can change slightly uh when you're in the in the relationship with the uh property owner or property management group. So you've got to very be very you've got to be really clear on what your expectations are, what what's you know, just every perspective, you know, who handles lens, who handles emergency calls, who handles uh power outages, um in our situation, who handles the hurricane, um, you know, boarding up the windows, uh, you know, those kind of things. Uh are there any and then and of course you're juggling the effects of the building maintenance as well and the property and the relationship with the property uh the uh the association as well. So it's like a two or three different relationships that kind of pull all together. And of course, you know, your your repair guys, you gotta you know get to know them and build a relationship there too because you don't want them to overcharge you. Um you you you want to get to know them because usually friends will help out friends versus just customers. So you get to know, you know, your like your drywall guy and and your um your HVAC guy, your uh your window guy or whoever, you know, and you start really digging in. Which by the way, window world does not cover that region where I'm at, and uh that's why I still dealing with the uh the window uh repair pursuit of of the one of the units.

SPEAKER_01 27:05

Oh damn.

SPEAKER_03 27:06

Yeah, yeah, yeah. But uh but yeah, yeah, it's it's it's just like you're just just like a regular home, you're contracting work to come in. Uh you just know the difference between somebody gouging you and and the actual value, you know. And I'm saying I'm saying you're learning that value perspective through somebody you know versus somebody that just comes in that you have no idea, because they could tell you any number. Um that's how I keep my operational costs low, I guess, or affordable.

SPEAKER_01 27:37

So how uh how many units do you have?

SPEAKER_03 27:40

Uh I've got one, uh family's got two more, and then we've got a house, but we pulled that off of the rental market uh or the vacation rental market, and now it's just kind of our our warehouse, so to speak, for addition. And then um and then I've got the and that's just for the the condos, you know, there in Texas, or I'm sorry, in Florida, Destin, Florida area. And they're all part of the same complex as well, and that makes it similar because or a lot easier because you know how the rules are and what how to play the game, so to speak, you know, because it's all the same versus having two or three units down the line, different different property managers, different re you know, different locations. Um but I mean hey, if you if you if you got the capacities to be able to manage multiple units in a the vast you know region or area, then you know, right on. But uh it just to it just puts more on you, I guess.

SPEAKER_05 28:44

So you you you're you're so these are condos, so uh in the hoa policy, you're allowed to short-term rent short-term rent these on a short-term basis.

SPEAKER_01 28:55

That's right, that's right.

SPEAKER_05 28:56

Okay. Because most condos don't allow it, so I guess if if you really just want to have a condo, it's better to just go to a vacation rental area like Destin and things like that. How much of those condos going for like right now?

SPEAKER_03 29:13

No, I'm not sure. I want to say around 212. So not not too much of growth, but but it's consistent or it's steady. And and of course it it it goes in waves. Uh I I think it's far I don't think it'll ever drop dip down to the uh around the price that I had originally paid. Um but you know, who knows? But uh I didn't really buy into it for the for the sell perspective. It was more about you know growing relationships, the stewardship, understanding what that's about, uh have you know uh uh having a place that I can utilize at any time. Um for 212, what size condo is that? This is uh one bedroom sleep six. It's got uh clean bed and one room, bunks built into the hall, into the walls of the hall, and then a pull-out sleeper sofa.

SPEAKER_05 30:13

Maximizing space. That's nice.

SPEAKER_03 30:15

That's uh yeah, and it's just one of those little small units, but it you don't it feeds uh there it'll house six people, and you know most families are four and four to five. So it it does real well. Um it's it's a good it's a good good short-term it's a good investment for short-term growth or short-term rental growth.

SPEAKER_01 30:38

Okay. And so you make pretty good cash flow on it. You're I mean you're positive every year?

SPEAKER_03 30:42

Yeah, positive every every year, and then therefore I can you know take the write-offs that are needed uh effectively. Um it's the even even back in when it when it wasn't so much, and I I say when I was making the payments uh before I paid it off, uh, you know, it allowed me to you know take the write-offs. And I think that uh it was three years of write-offs, I think, in the beginning that I could take off. Pretty pretty heavy write-offs in the beginning. Uh and then I then I just paid it off off. Um I think I was on in debt to it for probably ten years. And I think the interest and everything accrued about another ten grand. So I guess I'm in it for what one one forty, one forty-two or so. And uh now it's just a matter of you know keeping the association happy and keeping the guests happy and keeping it uh keeping it shiny, so to speak. Because I I you know just renovated that one last year. Um and and just a real side note when you are doing renovations or repairs yourself, or I guess you could, or if you're contracting people, you uh want to do that towards the end of the year. Let's see if I got notes on this. Um, because you get tax breaks, uh one place tax breaks that uh will reduce your basically taxes for the following year. Uh if you show that in my case it was December, if if I do all my work in December and it runs into January, then I get a tax break for the next year. So that was always a benefit. So anytime I do repair and I and I uh I try to put it in the December months. So um, and I schedule snowbirds if they're coming in to say mid-January, so that way it will run into January. I can get the tax break, and then the snowbirds come in and they've got a fresh, fresh unit, you know, you know, so that's a that's some you know shuffling, so to speak, to benefit on the tax side and you know, and then keep the customer happy as well.

SPEAKER_07 32:59

Sweet.

SPEAKER_03 33:01

Yeah, yeah, yeah.

SPEAKER_01 33:03

And so um you took you told me something interesting a while back. Uh what and um over at work, you said something about um using your 401k as like your own bank to purchase properties. And and I've utilized that. Could you explain how you do that and how you done that?

SPEAKER_03 33:20

Yeah, well, let's see, your 401k, that's the um that's you know, most companies uh offer a 401k so that we don't have to deal with pension or whatever, how do they call it that? But uh what um what you do is basically it's you all 401k, as far as I know, uh, offer a loan, take loans out. And what you're doing is you're um in my opinion, you're it's a better way to get a large chunk of cash for these investments. Right now, that you when you pay it back, it's there's no uh interest uh it in a whole loan dynamic. So what that allows you to do is max, you know, whatever your max is, it's 50,000 or 20,000 or however much you can take out, and you can put that towards you know a new property, and then you just pay off your monthly uh I guess uh payment towards this 401k because you're paying yourself back through the 401k program, but it's the interest that you do pay goes right back into your account. It doesn't go towards someone else's pursuits. So, like banks, you know, you you have your interest, you're making your interest payment, but that like for myself, when I when I originally did my mortgage through um regions, like it was I pay them $10,000 over a course of 10 10 years to borrow their $132,000. You know, and once that was paid off, you know, it's done with that. So with the the uh um with the 401k idea, it uh allows you to just pull from your own funding if you've got X amount in your funds. And I think you can borrow up. I was always told it was borrowed up to half until I got you know up in the two or three hundred thousand range, and then I found out through digging into policy it's only fifty thousand. So what I do is I I take fifty thousand and I put it up in a growth account, and it didn't have to be a large growth account, it could be two percent or so, uh let it two or three percent, let it sit and then pay it off, and then get another one, get another fifty thousand, and then you've got a hundredth grand you haven't paid any interest on, uh, and it's all your own funding, and it's growing that interest in that growth account. Now, some people can, you know, uh like the latter um CD type funding where you put it in and let it sit for X amount of years, that's another idea. But at least you you have the capital to be able to play around with some of those things. You know, you could diversify it and put it in a CD, and you could put it in on something else, and maybe buy some stocks or whatever. Just preferably make it grow, make it work as hard as you do for that interest that it does bring back.

SPEAKER_05 36:20

How much is the interest on one of those loans?

SPEAKER_03 36:22

Uh let's see here. Um, you know, I don't know. I would say it's what do you think, Steve?

SPEAKER_01 36:29

Uh probably around 5%. Like if you borrow from your 401k? I think I've done that, and it was around 5%.

SPEAKER_07 36:36

Okay, okay. And then you can get it.

SPEAKER_01 36:37

And you get and they give you up to five years to pay it back, too. You can pay it back faster if you wanted to, but they'll they'll can they'll just take out from your paycheck for five years until it's paid back, whatever you borrowed.

SPEAKER_05 36:49

So let's say you leave that job while you have that loan. Is that a count against you or well, you know, I don't know.

SPEAKER_03 36:57

I haven't encountered that one. I'm assuming that uh if you go to another job that has a 401k program or option, everything just segues over to the next company. Okay. I'm assuming I would have to call, you know, whoever you got your 401k through. Because if it's I would assume it just connects, because if you've got fidelity on one side, you could still have fidelity on your 401k through the uh another company. I wouldn't see why it wouldn't be that easy, but uh I've never applied that. So have you used one of those loans to actually buy real estate? I I did. I paid off my uh my uh condo there. Um I uh at one point I I took that loan and then when we had the oil spill in I think it was 2010 or eight or whenever that was uh along that coastline, um there was government assist that was was given to owners of properties that were renting and it was a business that they were running because it no one was coming to Destin or along that shoreline to vacation, so income lost. So what the government allowed, or I guess it's just our U.S. government, if you I think it was call a number or send an email, it gets the start the ball rolling to where you are basically raising your hand and say, Hey, I got a property over here, it hasn't made money for um you know this year or this season, and I think it extended for two seasons, so two separate years. And uh you submit uh the forms, whatever they tell you to submit, and they they gave me $25,000 for the loss of uh revenue for that year. So I put that onto a $50,000 401k loan and you know paid the property right off. So um that's how I was able to you know knock it out in the 10-year time, and uh, and I guess it it uh you know it was all it was all growth. You know, so yeah, yeah. And then of course, you know, the more people you know, like because I heard this through a couple of people that are condo owners in other states along that same coastline, so you've got to make sure you engage in other people and and get to know and talk to, and you know, because everybody's got a it's something that they can bring to the table. And and then just like what you guys are doing here with your uh your online you know casting here, um it's it's sharing what what tricks each individual has, and then you're presenting it to others to utilize. So uh so yeah, so that's uh that's kind of what that that was about, that four loan.

SPEAKER_05 39:50

So do you only invest in like vacation rental areas?

SPEAKER_03 39:55

That's all all I have. Let's see, I did buy a a place in Lake Dallas, Texas. Um I could have residents here or uh or another residence here. Uh and that was and I utilized the the 401k you know funding as well. Uh it's not paid off, but because I utilized the the funding, it took it way the the down payment was much greater, so it brought off the cost down. And of course I I for myself I always I I don't allow the bank to pay for the uh uh let me see insurance and and uh taxes, what do they call that? Escrow. You know, I I pay for my own escrow, so that way I can have those funds sit throughout the year and grow a little bit of interest in an account somewhere versus paying it to the bank and letting it sit in their accounts and growing that interest. Because you know, you figure, I don't know what that here in Texas, which taxes are ridiculous, um, and it seems like school taxes are are really the dynamic of ridiculousness. You know, that's around five grand or so. Uh, you know, some people pay eight grand, you know, just whatever the tax is sitting in that account for a year, that that that can grow some a few dollars for you, you know. A few dinners for for the family, or even maybe a mortgage payment, you know, depending on whatever it is you're paying taxes for, you know, the the amount you have to pay. So uh yeah, it's just um yeah, you know, just jocking jogging jogging the the mu the m monies around to and putting them where they need to be uh to to for growth potential.

SPEAKER_01 41:33

That's cool. And the and the Lake Dallas house, um you're gonna rent that one out or what are your plans with that one?

SPEAKER_03 41:39

Well, I'm probably just gonna rent rooms out. I I I don't know about renting the whole thing out just because it's a it's kind of a larger facility. Uh I've got certain equipment that uh that I I wouldn't want anybody to just you know utilize. So I don't know, it's it's kind of it may just be bit a kind of an office dynamic, you know, for the for the operation. Um because it's kind of centrally located, and I want to branch out into California and uh get a another something going out there as well. Uh that's that's uh a near goal once well when it whenever I pull the trigger on that, uh that's that's the next big goal. Uh but then it uh with with the Lake Dallas How uh property, it needed some work, so I I I wanted to learn more of what homeownership is about and and and working on things and you know kind of sifting through and fixing things. I wanted to know about plumbing and and and rewiring and gas lines and gas pressures and you know and insulations uh and what to use, what not to use. Um ridge vents. I've learned about ridge vents on this this new property. Uh and and that that was uh kind of interesting, you know, how the heat transfers up the sea up the roof, and then you just just all that dynamic. Uh I I'm I'm intrigued by that stuff. So I bought a property that I could work on, and that's what it was. It was a bit beat up, but livable. So uh that's uh that's that's what we did.

SPEAKER_01 43:14

So that's kind of like your school right now, fixing that house.

SPEAKER_03 43:17

It is, yeah. Yeah. Instead of having to buy in the school, I'm well, I guess I'm buying into it anyway. But uh I come out with a with a piece of property that's you know done a a specific way or how I like it. So it's good.

SPEAKER_01 43:30

Now now tell us about you told me before about you know having properties helps your tax burden. And um and you told me pretty much you said write off everything. And what do you mean by everything? You you said how do you how do you do that?

SPEAKER_03 43:44

Well, as I understand, when you uh when you have income coming in that and I don't want to say 'cause because I don't want to say something outside of a a CPA perspective.

SPEAKER_01 44:00

But yeah, we're not tax professionals here, so that's right.

SPEAKER_03 44:03

That's right. Um if if I'm getting income that I can write things off on, then I'm gonna write it off. I mean like it, you know, in this case I'm learning things, I'm buying tooling, I'm buying materials, um those costs go towards this particular property. Uh now if I've got a property like say uh a property in Florida that is that is making making money, um now can you take a res a receipt or a write-off from one property and put it on another because it's uh under the s all umbrella, the same umbrella, you know, and that's something you'd have to ask a CPA. Um but from like watching and seeing how American Airlines operates their organization, I would say you can. Because I see a lot of pulling from one aircraft issue to and putting it on another, and you know, and I'm sure there's monies that are you know uh lawyers. Yeah, exactly. But but uh but yeah, that's that's what you try to do. You know, you you if if you've got like the condo and and you've repaired, you know, you put it at the end of the year, you know, it's a ten thousand dollar repair, you know, you get that write-off, you put that in because you've got a loss of income for that little window, you get a debt uh reduction of of of uh taxes that you have to pay for the following year, and then you then you know you write it off to your CPA that this is what I spent for this pursuit, you know, you know, based on the guidelines of what they set. So and of course, you know, with my CPA, I'm able to I throw it all out there, and what what sticks, great. What doesn't, you know, I just sweep up off the floor and put it back in an envelope and and save it for the files, you know. So um so yeah, so that's if that makes sense.

SPEAKER_05 46:05

So the current house you're living in, is it gonna be a live-in flip or just something you fix up and live in?

SPEAKER_03 46:11

I'm just gonna fix it up or in the process of fixing up and live in live in it. Okay. You know, it's it's a it's a live-in current, but it you know it needs work here and there. Um a lot of uh exterior land land work. I I bought a uh a facility that had a put putt golf course on it and a mini go-kart track on the on the facility. So uh but it it backed up to core land or BLM land, or depending on what region you're from, they call it different things. That's that's land that circles or is uh put around uh usually body of bodies of water that can't be built on, and uh therefore your backdrop is not another neighbor in a fence, it's just woods and creeks and wildlife. And uh so anyway, so yeah, so I shopped around say the DFW area trying to find what was a good property that there's really nice or be or core land behind the property. And uh and that's that was kind of my my keen idea. Yeah, I want to get I want to get that property, but then I want the backdrop to not be some other neighbor that you know whatever. So I didn't really buy into a neighborhood. It's it's more kind of country living, yet still kind of close to the city.

SPEAKER_01 47:29

That's cool. And where in California were you planning on investing?

SPEAKER_03 47:34

Uh in the Krona, uh Krona area. It's uh just off of 91 in Riverside County.

SPEAKER_01 47:42

Isn't it super expensive over there?

SPEAKER_03 47:44

It probably is. But you know, it's one of those things where you know you dig into policy and you you find out what it takes. You know, if you have land that's not uh because there's no home on this land, I want to actually it's it's just dirt. It's just dirt that's been it's actually kind of a hilltop that's been leveled off. And then there's a dirt road that goes up to the top of it. So what I want to do based on how I'm learning through this Lake Dallas renovation project that I'm doing, I want to apply those skills at that facility or the next next investment or on that property. Uh and I and I always look at things as it's a buildup. Where I'm at now isn't where I'm gonna be in 10 years. So therefore, use the gifts and talents or the skills that have come into your existence, you know, be it be it uh something you to you were forced to learn or something you went willing with to learn and allow that to take you to the next levels of wherever it is you're going. You know, um don't let it just be a burden, you know what I mean? If there's a way to fashion it to where it, well, you know, maybe maybe this this challenge isn't as bad as I'm seeing it, because who knows where it's gonna take me if I apply what I learn through the the process, you know. So so that's what I'm I'm doing. That's kind of the idea.

SPEAKER_01 49:10

That's cool, man. Uh good. Oh, what were you saying?

SPEAKER_03 49:16

Oh no, I was just thinking, like, you know, where where we start in kindergarten and then work our way up to the fourth grade and then in the college, you know, it's all a progression, you know, and you use what you previously experienced and learned to the next phases, to the next phases. So using that same dynamic and and life investment choices.

SPEAKER_01 49:35

Nice, nice. Yeah. And you got your um you got your mechanical brain working too.

SPEAKER_03 49:41

Yeah, yeah, I got the gears are turning at all times, you know, trying to trying to keep that going. But but yeah, you know, and and to kind of rope back in on the Airbnb dynamic, um you know, it's really just all transparency. I I stayed in an Airbnb in Florida when I went um down to uh what was it? Tampa was it Tampa area? I think it was, yeah, Tampa, uh just a few months ago to a vehicle shop and stayed in an Airbnb Airbnb, but uh, you know, just there the communication wasn't there, you know. So I got left kind of left out and no place to stay. And then at 11 o'clock at night, I got a call and then there was a place to stay. So it was it's yeah, so the transparency, you know, especially if you're gonna be a part of that Airbnb dynamic and and really take people in, just know that you know they're coming, the the guests are coming from a have no idea what you're about. And you know, I I know that that you can read up about the person and you get a a little uh information on the person, but you know, if if you've got the property and you're Airbnb and two guests, make sure you're double time on transparency and clarity and communication. Uh so that way the guest will give you positive reviews and makes things smoother. Um, so that way they're not fearing and only have you know negative reviews for the whole Airbnb dynamic, even though they're not staying on a weekly basis, you know, because you don't want any negative feed on you don't want to be attached to any negative feed when it comes to you know building relationships, anything really.

SPEAKER_05 51:24

Was that your first time using Airbnb as a traveler?

SPEAKER_03 51:27

It was actually, it was. Um and it and you know, I I I had uh experienced it and I took it for what it was, and that's where I just went after actually I got to a point where I was shopping for another Airbnb that same night at 11 p.m. and that's when I got the phone call that well, you know, there was a mistake. Well that's great, but you know, I'm still a guest and I still need you know a place to reside for the evening. Uh so it it in the end it all k became it all kind of cleared up and and everything it was a burden on on the guests part being myself. So yeah, so that's that's the biggest thing when it comes to people and then coming into your space, you know, always open arm and transparency and communicate and above and beyond what you would expect. And that's another thing, like with the property members. Let me just add this as well. They're another front line with you to make that communication and that that first link of a relationship easier for the guests. Because guests don't want to have to come in and and figure things out, you know. They they just want to either ask and get a solid answer, and really that's probably it. That's all they want to do. They want to come in, they you know, because they're in a usually they're in an area that they're not familiar with, so they don't know the norms, they don't know the the safe places or the bad places or you know anything. It's it's uh all they want to is is flow. You know, come in, there's a bed, but we've got a reservation, here's a reservation number, the key works, the key fad works, you know, everything works, there's lens, there's you know, just all aspects. How can we make the guests enjoy their first impression of of who we are and what we're doing with with the units?

SPEAKER_05 53:21

So you'd be a good Airbnb host.

SPEAKER_03 53:26

Well, maybe, you know, with these private different properties and things, I would like to uh maybe appropriate that a little bit, you know. Uh yeah, I know with this uh Lake Dallas house I'll be able to you know Airbnb open for the weekend uh because I'm sure there's festivals and all kinds of things that people come in for so and I'm I'm kind of wanting to do that with a property we have in Nashville as well. Uh but I'm just kind of on hold on that one right now. Uh I would like to be present in the state when it comes to Airbnbers coming in uh to to utilize.

SPEAKER_01 54:06

Uh so well you um if you listen to our show, you'll be able to do it from wherever. Micah has them all over the world, so he he runs them all over the world. So you can you can do it, man. Nashville's a good market, by the way.

SPEAKER_03 54:21

Yeah, it's definitely growing. It's getting silly out there, but uh you know, people want to come on to it. We do Broadway time and whatever, you know, wherever they go for. Um there's tons of festivals and convention centers, conventions. And uh so we'll see, you know, start with one little room and make it Airbnb room or guest room and and kind of go from there. Uh so yeah, so I may have to get some questions, or I may have some questions for you, Mike and Man, on when it comes to you know, how do you how do you have a place that uh is normally sitting where everything is versus having people come in and you know use it for their own good, I guess, their own stay, their own interests, uh, and and how to properly set that up outside of being there with them. Um as far as I understand, I thought Airbnbs are uh people are still living in the facility, uh, and you're just in one of the rooms.

SPEAKER_05 55:21

Well, there's uh there's different aspects of it. There's home sharing, which is where people live in the rooms is I what I used to do with my upstairs at my house. Then there's the short-term rental, you're renting out the entire place aspect, which I've done, I've done pretty much every aspect of it. But um doing it from afar is rather easy. Um that's what I was asking about. That's really was what I was getting to with my question about what did your property management company do that you can't, because everything's online nowadays and you can automate anything, uh, messages. Uh if you just need like literally on Airbnb, for example, uh just we're just gonna focus on the Airbnb. Like on Airbnb, you could have your maintenance man just be a part of your team, and if they say something is wrong with the maintenance, like something's broke, your maintenance man can see it and go out to the unit. Uh, you can have your uh maintenance man on there, like I have a listing manager, I have a property manager for one of my properties, you know. Um they can just look at the messages, and if they see it's their turn, they're up, they go fix up the unit, do what they need to do. Um, but yeah, it's it's it can be automated. It's just really easy. Um messages can be automated to a point where you only respond when you need to, you know.

SPEAKER_03 56:34

I see. Okay. Well, that's uh do you do you find that your contractors that come in overcharge for what they're doing?

SPEAKER_05 56:43

Um I think that comes back to you finding the right person.

unknown 56:48

Okay.

SPEAKER_05 56:48

Um they will, if you if you don't know the right person, find the right person, see what they'll charge you, let them know what you do, um, and try to get them familiar with the platform, get them on the Teams app, you know. Um it's so many, it's so many different ways to do it, you know. And then with things like I think they have apps like Homey where a contractor can come in by the hour and you choose which one charges what per hour, you know. You can use Homey, you can use uh man, it's just a lot of different ways uh to find contractors, thumbtack, you know.

SPEAKER_03 57:23

I see, I see. So I could put my interest or services on to say thumbtack or con or homey or whatever, and come along and assist others in maintenance issues. Yeah. Cool. That could be a little side something as well.

SPEAKER_07 57:40

Oh yeah.

SPEAKER_05 57:41

Well, I so we'll have a guest on next week who who's actually gonna be talking about that stuff, so you won't want to listen. He he's got he's made a whole living off using Homey and ThumbTech and Task Rabbit.

SPEAKER_01 57:52

So we interviewed the the Homie founder, right? Is that who we interviewed the homie founder or one of the one of those apps that does the um home repairs or whatever. Really? And you tried to use them one time, remember? You said you you tried to use that company and and they actually took a little while to get in there or something like that. You told me something like that.

SPEAKER_05 58:12

Um Yeah, it's it's about finding the right person. It's just a matter Homey is like it's just a matter of finding the right person. Like with Homey, Thumbtack, the reason why I like those apps is because they have reviews. And the reviews are everything. Like I know this person's good, you know, so based on someone else's review.

SPEAKER_03 58:36

Or multiple reviews of that particular individual.

SPEAKER_05 58:39

Correct. So like I just hired someone off Fiverr to run a task for me. I seen he had 96 reviews, all like 94 of them are five star, so I know he's pretty good, you know.

SPEAKER_07 58:52

Okay.

SPEAKER_01 58:53

Yeah, we'll hook you up, Robbie. We'll get you going, man. You won't need to pay you uh 20% of your hard-earned money anymore.

SPEAKER_04 59:06

All right, I'll give you a five percent cut on that.

SPEAKER_01 59:11

Well, um one thing I always ask, like uh like we I we ask guests, what's a a tip that they that they've used, you know, in their well, we always, you know, Airbnb journey or their um real rental journey or real estate journey. What's like one tip that you that you could give to the audience? This is like a Robbie tip. This is something that you've discovered over your years of, you know, doing this, and just like one thing you could tell them that's like, wow, you know, this that's pretty cool, that'll help them a lot.

SPEAKER_02 59:39

Oh man. Um from an owner's perspective or a guest perspective, uh let's see, two different facets.

SPEAKER_03 59:47

Um Let's go with owner's perspective. All right, owners is man, you know, and and and and I guess this would blanket uh the guest as well. Ask questions. Have an out-of-the-box way of not let's see here. Always ask questions. Like there are like for some property managers and some of them, there are options that aren't presented until you ask. And and that's like free golf options or show or dinner or you know, little discount packages and different things in different areas. Uh, but if it's not asked, it's not given. So that's what I'd recommend, you know, and and even when it comes to well from our owner's perspective, you know, ask the property manager, hey, can we make some changes? You know, I know I signed this contract, but can we can we make you know, can I reduce, can I make change, can I do that, you know? Always be willing to ask a question, or let's see here, ask questions for that would benefit you. You know, always bring those things to light when it comes to uh because it is, it's it's just we're dealing, we're all dealing with just it's just people, you know. So you've got a question about something, you just ask. You know, don't don't bring a feeling into it, but dig in for the facts, you know, put your hands in and start asking some ideas and different things. And if anything, asking our questions where they don't they make you say, hey, just give him anything, you know, and uh and he'll go away.

SPEAKER_01 1:01:22

Be the squeaky wheel, right?

SPEAKER_03 1:01:24

Yeah, you know, whatever it takes. But that that's that's the one thing. It's just ask questions, you know. If you got an idea, hey, you know about this, ask for ask for what else is included. You know, because there's there's always something that that you can find that uh that'll be a benefit to you, especially if you're paying out money.

SPEAKER_01 1:01:45

Cool, man. Um yeah, so where can folks find you or get a hold of you or if they have a question for you or something like that, if you'd like to share something?

SPEAKER_03 1:01:52

Oh, let's see here. Well, I'm an open book kind of guy, uh so my phone number, if that's what you guys do, or emails, I don't know.

SPEAKER_01 1:02:00

Email would probably be good.

SPEAKER_03 1:02:02

Okay, I'll let uh let's see here. I guess we can uh forward that over to how which email would that be?

SPEAKER_01 1:02:09

Uh I I have your email. I mean, do you want me to put that link on the show?

SPEAKER_02 1:02:13

Yeah, yeah, yeah, for sure.

SPEAKER_01 1:02:14

I'm gonna put Robbie's link to his email on the show. And um oh and if you want me to put a link to your um destined properties, I'd I'd do that too, you know. Maybe someone can rent them out.

SPEAKER_03 1:02:25

Okay, well, yeah, you know, I uh because we still manage them ourselves in the sense of uh if if we owner book, we're not paying the 20% fee.

SPEAKER_01 1:02:38

Nice.

SPEAKER_03 1:02:38

But still on the side, and that's something that we presented to the con you know in the contract. We still want that capacity to owner book. So if people contact me and say, hey, we want to stay at your place, that's no percentage off uh off the income.

SPEAKER_01 1:02:54

Nice.

SPEAKER_03 1:02:54

So we'll still utilize those tools that we we built up.

SPEAKER_01 1:02:57

So we'll put some links to his condos down there, and of course, me and Mike could get bro rates going on, so it's all good.

SPEAKER_02 1:03:09

You know. So I'll do that for sure.

SPEAKER_01 1:03:13

Well, it's been a pleasure, man. It's um it's been great talking to you. We've learned uh we got some good tips from you, and we yeah, we wish you luck on your further real estate journey, and yeah, man, it's just it's been a blast.

SPEAKER_02 1:03:25

Right on, right on. Well, it's good talking with you guys. Good to meet you, Micah, and uh see you around. I'm always open, man. Just hit me up anytime.

SPEAKER_03 1:03:33

You know how us night shifters are. We're we're 24-7 operations. Whatever it takes, you know.

SPEAKER_01 1:03:39

Heck yeah. Alright, man. We'll talk to you soon. Take care.

SPEAKER_03 1:03:43

Y'all take care.

SPEAKER_01 1:03:44

Thank you.

SPEAKER_05 1:03:48

Well, that was episode 92. 92. We had the great Robbie King on. Uh, that was good. Yeah, so you can catch us at liveletrive at gmail.com. Hit us up on IG. We always got some IG stuff popping off. I've really been trying to grow that, so yeah. Um where else? Facebook, YouTube, definitely check out the YouTube channel, go subscribe, like, all that good stuff.

SPEAKER_01 1:04:15

Subscribe to us. We're pretty we're a pretty big thing now.

SPEAKER_05 1:04:20

Yes, sir. Yes, sir. Just remember to rate us, like us, all that good stuff on all those channels. And this is Live Let Thrive, and we are out.

SPEAKER_01 1:04:30

Later.

SPEAKER_00 1:04:34

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.