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Episode 006 - All about STR & Why Now is the Perfect Time to Invest in Them

str timing Sep 21, 2018

[00:00] Over the last two centuries nearly 90 percent of the world's millionaires have created their wealth through real estate. Here to tell you how you can ride this wave with less risk and less capital while creating greater income, is your host, best selling author and speaker, Michelle Russell.

[00:22] Hi this is Michelle the master of money mindset and I'm here with Episode six of the short term rental revenue podcast and today I'm going to talk about why you should think about investing in a short term rental and why I created this podcast in order to teach you to do that. My name again is Michelle Russell you haven't listened to my previous podcast go back and do so because the really good and there's some great information in there that you're going to need when you start your short term rentals. But anyways I wanted to give you a little bit of my unique back story, how I got started in investing, where I came from, why I invested in real estate and why I turned to short term rentals at this particular moment in time. So back in the day I worked for a company called Rich Dad Seminars and it was owned by Suzi Dafnis and Peter Johnston and Peter is still my mentor and I adore him and Suzi as well.

[01:22] They are, they have been together for many, many years and Suzi owns Her Business which is an amazing company that helps female entrepreneurs all over the world. She started just doing it with the Australian Women's Business Network but now she's created it and kind of it's morphed into Her Business which is now worldwide. So she's got some great information for women business owners out there especially if you're getting started. It's a great place to go if you're in the middle, it doesn't matter what level of business mind you have. Go there and find out more about their business there. But when I was working for Rich Dad at the time I began, Dolf de Roos was actually teaching for Rich Dad, the real estate portion. And Dolf, if you've ever seen him, he was very famous for buying houses and holding. He was buy and hold guy, that was his strategy and he bought a house a day for an entire year one time.

[02:27] I mean it was amazing. But you can imagine, when you buy houses or basically in those days, this is before the crash, properties constantly went up in value. I mean, it didn't seem as if they were ever going to go down. Everything always seemed to be just going up and the world was great and wonderful and new. And so I fell in love with the idea of cash flow. I started picking up rental properties, especially over by my house and in the communities over there, near the Universities and the Colleges and Hospitals. I stuck with those types of properties and I rented them out and I became known in my little group of friends, they would call me The Cash Flow Queen, because I had an amazing knack for picking up properties and creating a large amount of cash flow out of these properties. Back in those days, you have to remember too, that we were investing in properties when the interest rates were really high.

[03:29] I mean some of the interest rates on our properties were 10 and 12 percent and I know that seems like a crazy amount of interest. But the bank interest that they paid on, you know, CDs and things, those were really high. You could walk into a bank and get a CD with 10 percent interest that paid, you know, 10 percent and it wasn't a big deal because the interest rates were high. They just were. So we cash flowed on properties like that easily. Other people who are starting out now go, "Oh gosh, I don't know how people did that." It was easy. It was. We learned in that forum and so it literally was a process that, you know, it didn't seem hard at all to us. So anyway, we picked up a bunch of properties. Not all of them were winners. We did have a few big losers but we always had more wins than losses.

[04:28] So now, and I'll talk about investing. I mean because if you think about investing, when you invest in anything you're going to have, you know, it's a risk and you're going to have wins and you're going to have losses. But you always want to invest in a way that you have more exits, you know, more strategies, a way to get out of things in case things go awry. Which is why we like short term rentals the way that we do them now. Now I'll go heavily into that later, but we knew the crash was coming. After several years, we had a bunch of different authors on and they were all experts in, you know, properties and real estate and different commodities and trends and just, you know, they knew what was going on with the economy and we had had a bunch of really amazing experts and authors on stage and sometimes we would have interviews with them with all the clients around and we would learn about what was coming up. We knew the crash was coming and everybody around us knew the crash was coming. It was kind of funny because we could pick up a newspaper back then and I remember the Arizona Republic having some kind of headline that said there is no real estate bubble. Things are great. My husband set it down on the table, like see? But we knew that something big was coming. And Kiyosaki, I was really blessed to be in that group because he warned us all. You know? He taught us to invest and taught us to take those chances. But at the same time, he said, you know, you really have to watch what's going on around you because everything changes and what everybody does is not what you want to do... usually. And you can see that in anything - when you look at Warren Buffett and the things that he's said the books that he's written. Mary Buffett had written a book about Buffettology, I think was Mary. But when you read her book, when you see a large group of people doing something you most likely you should not do what they're doing. Never ever follow those big herds of people because the majority of people do everything wrong and there's just a small people, a small amount of people or a small amount of groups of people doing something outside of what everybody else is doing and they're the ones who are usually making the money.

[07:01] So when you see everybody else selling, that's probably a time you should be buying. And when you see everybody else buying, that's when you should be selling... and that's what was going on. And I remember, you know, when Kiyosaki said, "You know what? This crash is getting close." I mean obviously nobody knew the day that the real estate crash was going to occur but we knew it was getting close. And so he told us all, you know, if you can't cash flow your properties for half the income, it's time to dump them. And so, I started selling all my rental properties and it was at the top of the market. We put something up for sale and the day that it went on the market, you would have seriously, like a half dozen offers on something and almost all of those offers would always take the properties above the asking price. And to us, it was kind of crazy because we knew what the rental incomes were, in those areas, and we knew that people could not possibly cash flow those properties for the prices they were picking them up for. Especially the prices that they were paying to the mortgage companies with interest rates. We were like, OK. You know, just for instance, know that you had a 3/2 property and the rates (rental rates) around that area were $1100 - $1200 a month and they were picking up the properties and we knew that they were going to be paying out $1100 - $1200 a month in their expenses. So if the rents were that high, there was no way they could possibly cash flow those properties. But people were doing it anyway (they were buying anyway). And you have to kind of think of it just like when you buy a stock - there's always somebody buying stocks and always somebody selling stocks. You don't know the reasoning for buying or selling but even when you buy a stock at an incredibly high price or you're selling it for an incredibly high price, somebody is out there buying it and you're like, "why would they buy that for this much money?" You never really have to think about it. There's somebody who's doing it.

[09:13] Just know that they're out there. It's like, okay... these people were out there and they were buying our properties and we were selling them and selling them fast. So when the crash came, we were extremely... you know, a lot of people will say, "Well, you were really lucky." Well, it's mostly education. It's mostly watching what's going on, watching the trends, keeping an eye on things, and then just paying attention and taking action on it. It's the people who become emotionally attached to things that have the hardest time letting go of them or making the really hard decisions. Those weren't hard decisions because, you know, I had had the friends and the foresight, and all the education that I had around me, to make the decision to sell.

[10:04] And that's why we didn't lose a ton of money when other people did because we knew what was coming. So, we sold nearly everything and those experts, those same experts, who warned us back in those days about this big real estate crash: I read them to this day and they've called other market changes. And right now, they are calling for and warning against another huge adjustment. And that's because the American dollar is so weak. Most people don't believe that and they don't see any evidence of it because you know our markets are really, really well manipulated. Right now, gold and silver should be worth way more than they are, but they've been manipulating them and keeping them low. And I have a friend, Mike, who's written several books on gold and silver, and we'll have him on the show later and he can explain to you how they can do that.

[11:10] But what happens is usually, in the past when the dollar was strong, then gold and silver stay low. And so when the dollar is weaker than gold and silver shoot up high. And this is just a for instance. OK. But right now, they, if they keep those prices low what it does is it creates a belief system in others that, oh, our dollar must be really strong - but it's not. We've been borrowing money at an alarming rate for so long and we owe so much money to other countries, like China, that our dollar (it's inevitable) that it's going to have an adjustment, if not completely crash. And you don't have to be scared about things like that because it's happened in other countries several times. I mean there's always adjustments. We call it an adjustment. But what it does is, it, just that knowledge of knowing something's going to happen, it gives you kind of a heads up, right?

[12:13] So, you know something's coming. So you can get yourself ready and you can prepare for it. So, with the housing market, when I started reading about this new adjustment that was coming, I was like well you know I don't want to be holding a bunch of properties that are going to lose their value. Now that's not necessarily true in all markets. OK let me explain that a little bit because home values don't really matter when your cash flow into property. Now obviously you know as long as you don't sell it and it's the same with the stock as long as you don't sell it you're not going to lose any money if you own it. Right. But you want to make sure that it's cash flowing always. So let's say for instance I'm going to give you a little bit of background here.

[13:08] Let's say for instance you bought a house and the house is worth a hundred thousand dollars and you were renting out the house and cash flowing a few hundred dollars on that house every single month with the rent and you know so if you took the rent that was the income coming in and deducted all your expenses from it you know the mortgage and insurances and taxes and maintenance and all those you know everything the depreciation of all the things that are inside of it and you still have a cash flow. That's great. That's what every rental property issued should be. Right. But the value of that house. Let's say it climbed, climbed, climbed to $150,000. Most people back in the day they would make sure that there wasn't, you know they were playing with that equity. And so that fifty thousand dollars that they they may it are earned they would they would see that value as money. And it's really not real unless you're borrowing against it. So some some people and most people most investors we would take and we would take that $50,000. Re reinvest that into another property and then buy more properties, more properties, more properties and you'd have the value of these properties. You know the mortgages maxed out on these properties. But what would happen when the value fell during a crash. So let's say that property's value went down to $80,000. Would that make a difference to you.

[14:44] Not really not unless you sold the property as long as your rents stayed the same. Now if you've got a fixed mortgage which you should always have when you have rental properties if you have a fixed mortgage and the rental rates stay the same which historically during many adjustments they have stayed the same.

[15:06] Right. You shouldn't be bad at all because you know maybe your insurance might go up a little or your taxes or something but for the most part you know that income is going to stay the same and the expenses are going to stay the same even though the value of the property is different. It's not really going to matter unless you sell the property, right? So you wouldn't have to worry. But during the last adjustment during the last crash that actually affected rents in Arizona more so than it had in years. And we saw entire neighborhoods where the rental values went way way down. So not only did the value of the property go down but the rents went down. So imagine then in that same scenario you had this property and it was totally maxed out. And then the value dropped again but the rental income dropped as well.

[16:10] That means you couldn't pay the mortgage on that property right because your your rent was now lower than the expenses going out. So you had a negative. And then if you had to sell it you'd be in the hole which is also the reason why a lot of people lost their houses. The majority of people lost their houses because they treated their home like an asset ,and your home is not an asset. If you've read any of Robert Kiyosaki books you realize that your home is not an asset. Assets put money in your pocket liabilities take money out. Your home is one of biggest liabilities that you have. It's never putting money in your pocket, unless,

[16:55] You've got something you know on the side that's bringing money in. Right. So herein lies the background of all of that. Knowing what we went through last time and knowing that there is now an adjustment headed our way again or more than likely it is now even if there isn't. You always want to have massive exit strategies right. You don't want to panic and go. The sky is falling, the sky is falling and then it you know you just don't know. But you want to be prepared for any scenario. And so I believe because of you know all the information I have remaining keeping up with trends that there is another adjustment headed our way and it will occur within the next few years so I don't want to own a bunch of properties that may or may not lose their value. That may or may not lose their income potential.

[17:51] Right. But what I found was that there were a lot of properties especially the rental properties that we had already had in Florida that were short term rentals. So what I found was you know I just took a look at the evidence that there was around me right, my short term rentals made a lot more money than my long term rentals did. So whatever my expenses were for a property the amount of money that I was making every month on those properties it was a much larger amount a much larger percentage with a short term rental and the properties were being taken care of and much more easily maintained and maintaining there, and actually even improving their value as compared to the other properties I always had a lot more money going into fix up a long term rental than I did my short term rentals and just simply maintaining those.

[18:52] So I really liked short term rentals for that reason. And then when I started thinking about what was coming the potential future you know and another real estate adjustment I thought to myself OK where would I like to be. I mean it was just it was just an easy decision to make. Where where on this scale would you like to be. And I wanted to be more liquid. And I didn't want to have a bunch of properties that I was hoping because hope is never a good, I mean hope is good when somebody has cancer, you know hope is good when somebody is sick. Hope is good when somebody is away you know fighting overseas or something you know hope definitely has a place in our life. And if you're a person of faith, but hope has no place in investing you really don't want to have hope as one of your variables.

[19:50] You know you really want to know that this is the way most likely something is going to work out. So as a person of faith I mean I love having hope and I'm not going to you know buy something or invest in something and hope the price goes up it's just not, It's just not the kind of person I am. So what I did was I just I just took the analytical road and started thinking about you know what prices I wanted you know to pay for properties what the value of those properties would be if something were to occur. Like, like all the experts say. And so I decided I was going to sell the majority of my properties. And I began selling them. And when you have rental properties let's say you have this huge portfolio of properties and they're bringing an income in and you start to sell them. What happens to your monthly income. Yeah it goes down right here.

[20:51] Oh shoot. Selling these properties which means though that my monthly income is going down because my cash flow is going to go down because I no longer own those properties so I need to buy more properties but I don't want to buy. What should I do. So what I started doing was, I started doing more short term rentals with the properties that I did own. And then when I ran out of those properties actually started renting properties from my friends who had rental properties and they were long term rental properties and I said Hey I know you have this property that's empty. Let me take it off your hands. I'm going to pay you you know a hundred dollars more a month than you would be renting out for and I'm going to turn it into a short term rental so we're going to add an addendum.

[21:42] She was very excited. You know she was like I wonder if this could work. It worked perfectly and we were able to you know I was like See this is how this goes. And we were able to duplicate that you just duplicated over and over again. So now I've taken all my properties that I kept the ones that I wanted to keep and turned them into short term rentals and then I took my friend's properties and I started renting from them and turning them into short term rentals and then I ran out of their properties on my property. So what did I have to do next. I had to go find other landlords who are renting their properties out who can turn their properties into short term rentals.

[22:23] OK so let's get comfortable and start thinking about this when you go you know to a landlord and you see that let's say,let's use a property that I'm sitting in today is a 3/ 2 in the middle of Orlando. And so the monthly rent on this property is about $1,500 a month. But if you take that $1,500 a month and you pay the landlord the $1300 dollars to rent it out for the month. And he's got that income coming in but you take it and you rent it out for $300 a night or you know to $250 a night even you're making, you're making much more money than the rent is costing you. Do you see. So that money is now going into your pocket. And these properties cash flow a tremendous amount of money as compared to others. Now here in lies the danger of doing this right.

[23:23] What if the market gets saturated. I'm in Orlando right now and oh my gosh, I mean there are literally right now for tonight I could go on Airbnb and there are hundreds if not thousands of properties in this area that are available to rent tonight like yeah, because the market is super saturated here. So those are the dangers you could get into an area where there are so many rental properties that you're competing with each other and there's just no way to market yourself and get your your name out there unless it's with repeat customers. But even then you know even repeat customers when it comes to saving money if the properties are very similar they're not going to stay with you. If they can save money and go with somebody else. So it's a different type, You know when people aren't living there and they're just staying there.

[24:23] They're more likely to make those little decisions that you know could sway them one way or another because it's not a lifetime thing. It's not really going to impact them more than a week or two. So you have to weigh the pros and cons of everything you do. And as with any any investing. Right. So what does this mean for you, Right? You want to invest,you know that no one has ever really saved their way to you know retirement they can save to a nice retirement you know by putting money away every month on everything. But like I I didn't want to retire nicely. I wanted to retire with a lifestyle that I have today. Right. I love being able to travel like I do.

[25:15] I I'm here at my rental property every year at this time I'm in Orlando. I'm doing the following Horror Nights and The Food and Wine Festival and I stay with my family for over a month. I take off work for over a month and I plan it that way every single year. Not to mention the trip I just took to Temecula with friends or the trip I took to Hawaii a few months ago or all. I mean I owned a travel agency at one time. So I loved to travel. I loved to go places and do things I loved to be with my friends and my family. So I didn't want to give up the lifestyle like I don't want to retire and be in my 60s and have to sit on the porch and keep a budget. I want to have more than enough money and I want to have money that I can enjoy.

[26:08] So I didn't want to retire poor. And if you don't want to retire poor or you know live under your means. I mean by all means, I love and respect Dave Ramsey and everything but come on seriously. Who wants to live on that budget all the time. You know I'm not the kind of person who's going to walk into a grocery store and not buy you know my favorite hummus because I'm going to save a dollar buying the cheaper brand. I want to live right now. I mean I could get hit by a bus tomorrow and I don't want to spend my days scrimping and saving every little cent so that I can live like no one else tomorrow. I want to live like no one else

[26:53] every freaking day. That's kind of who I am I want to, I want to live that lifestyle all the time.

[26:59] And in order to do that I've decided that I am willing to take more risks and not just put money in a bank account and be willing to earn the few percentage points that I get in a bank but I'm going to take that and I'm going to invest in other things. OK. And I believe that if you're listening to this podcast that's the kind of person you are too. I mean obviously we don't want to make unwise decisions. We want to make educated decisions in what we invest in and we want to have many many exit strategies so we're never stuck. You know and we never want to be emotionally attached to a specific investment so that we make you know an emotional decision that would be wrong. But we want to make money and we want to use it to help ourselves and help our family and help our community and give to others.

[27:52] I mean there's some really great charities out there that I love to give to. And I think it's really important that you know I'm able to do that now while I'm alive because who knows. Nobody knows. You know I've lost both my parents now. And well actually three of my parents know most people have too but I lost my my real dad. I lost my mom and my stepdad. And you know what that taught me is that life is really short, it's really short. You have no idea what's going to happen. You have no idea when things are going to happen. So I'm not a person who I mean obviously I'm going to plan for the future but I'm not all about the future I'm about living today too. And you know I'm, I'm assuming that you're kind of the person either who wants to plan for the future but who also wants to live a great life now.

[28:50] And I believe that short term rentals give us that opportunity to do that to be a wise investor and make good decisions educated decisions but also be able to live a nice comfortable lifestyle so that we don't have to worry about you know being able to buy a car that we'd like not just a car that makes no fiscal sense. You know I mean I have a Prius so I don't know I'm not one to talk I've had a Beemer and I've had the you know Mercedes and stuff and the very expensive insurances and repair bills that go with them. And so I traded my Beemer in for a Prius B. And this is the second one I've owned actually own two of them now and I've paid cash for them. And I love them. But the thing is I know that it makes me happy to be able to drive and save a lot of money.

[29:46] I love that. I love, I love the way my Prius drives. I love the repair bills I get because they're so low. So like you need to be able to live the life that you want not that makes other people happy or impresses other people. But the one that makes you happy. So if it makes you happy to be frugal, be frugal where you want to be frugal. If it makes you happy to go buy a purse or you know another pair of shoes as long as you're not putting yourself into debt or your family in harm's way I really honestly you know it's you it's your life and you get to do what you want to do.

[30:23] And I'm not going to judge you for you know how many times you've gotten your nails done or your hair done or your the shoes in your closet because that makes you happy and life is about being happy and making others happy. So that's you know that's kind of where we stand and what else does it mean to you it means you know that there are risks involved. Every time you invest but you can always make an educated decision in what you do. Right. And this is the safest way that I've found to create cash flow without having the risk of losing all that equity in a rental property in case that scenario that all these experts are talking about does occur. You know what if the dollar does crash you know what if what if there is a major adjustment. Again I don't want to be stuck holding the ball so I'm making those decisions for me and myself.

[31:27] You know in a way that's going to put my family at the in the least amount of risk possible. You know at the least amount of risk. So and also to remember all these real estate things. I mean actually any kind of investment anything that you see that is making money now you know anything that you can go Gosh I wish I got into that at this time. Those are all trends, trends. They they begin and they end. So even this Airbnb business that's growing right now. This is a trend and it will end and it will You know it will end in who knows when right because once everybody starts doing it those markets are going to get saturated. Like I said just like Orlando here and there's a lot of people who can't market their property or who aren't decorating it in such a way are taking the right kind of pictures or whatever they're doing.

[32:26] They're going to fail and lose a lot of money. So there are people who are doing short term rentals now and they're doing it wrong and they're losing a lot of money. And guess what. That market is not going to stay as strong as it is now because eventually there's going to be more people with properties out there than there are people renting them and that that's just the way it goes. Those things they top out the people who are losing money fall away. Right. And then you know there's an adjustment period that happens and then a new market or the new trend will appear. And you know who knows maybe people that you know they'll be switching houses because there's that too. There are people who do the home away and they switch houses. I mean who knows what the next trend is in real estate. Nobody really does. But it's a trend. And so eventually it's going to end. It won't be around forever. But what you want to do is you want to ride that wave right because they don't last forever. You know that you can make money right now doing it which always you know always one of those things that that you see with with any kind of investment when you see a lot of people getting into it, especially your friends or other people and they're making money at it.

[33:51] The people that sit in him and haw like I don't know maybe not now maybe next week. Oh a month later. Oh you know what well like look at bitcoins. How many of you had friends who got into bitcoin early. Raise your hand. Yeah I had friends who got into that stuff and I was not going to do it. There was no way. It was way too risky. I did an article about it all the risk and rewards and I thought OK here's what we decided after all the investigations and all the reading that we did like in a way. It would be an awesome thing to accept as a merchant. But I would not hold money in it because it was too risky. And then right after we did that, boom it just crashed. Right. And tons of people lost money in it. And it definitely wasn't because I wrote that article it was just going to happen. But the thing is there's an adjustment there. When you see a lot of people getting into something, boom that's that's when there can be an adjustment but when there's a few people getting into it and you're himming and hawing take the action on it. I mean don't take massive action don't sell your house or you know mortgage your home and put all the money in one basket. You never do that. But take you know the I don't see anything wrong with taking a thousand dollars and investing in something and going.

[35:15] Let's see if this works. You know let's watch it and see because you know when you see a market like the Airbnb business right now you can look statistically and see how many houses across the United States have been starting you know to list their homes in Airbnb . And that number's just growing and growing and growing. Right. So that is a trend and if you're going to hop on do you want to hop on sooner rather than later? Sooner. Always, always. But when you see any you know you watch that market and if you see any kind of adjustment happening boom you bail you bail fast and you bail you know I mean you don't bail all the way out. I never sold all of my property because I knew that there were going to be some that probably held their value or that some that were going to be cash flowing regardless.

[36:06] Right. There's good though you always want to make sure that you have all the exits covered. You want to make sure that you're protected. And so anyways that's a little bit of my background and how I got involved in short term rentals and and why I decided that they were you know something that I wanted to teach other people to do. I saw all these people out there and they were doing it wrong. You know there's there's ways to do it wrong and you'll be losing money and I don't want people losing money. And this was also a great opportunity too because when I was ghostwriting and when I was investing and doing all you know all the things that I did that I was making money for. I always wanted to have some type of course or something that was going to teach other people how to invest in real estate.

[37:01] Right. But guess what. I was always fearful of being responsible for somebody doing it wrong and losing money because there are so many ways to lose money in real estate. So I was fearful that I would teach somebody how to act that they would do it wrong and they would lose a lot of money and that somehow you know I don't know chromatically it would be you know, on me and I didn't want to be responsible for that. But now the opposite has kind of happened. Now I see people who are doing it wrong and teaching other people how to do it wrong. And I'm chromatically inclined to help people do it the right way. And I said you know what, this this is something I'm passionate about. This is something I know a lot about. This is something I make money with. I can help others do it too.

[37:56] And I can show them the right way to do it. And so that's why I decided to start this podcast. And you know that's why I do the courses that I do. That's why I have the Prosperity Process. That's why I write the articles that I do because I want people to know what's really going on because this is your money. I want you to be empowered and I want you to be able to help people. You know some of the biggest blessings in my life occurred when my parents were sick. But both my mom, my real mom and my real dad they both passed away from cancer when they were sick, I was able to help them and nothing feels better than helping people and nothing feels better than helping the people that you love. You know what I mean. So and not just with medicines.

[38:51] I was able to do that. But like I remember my mom and my dad going on a cruise and my husband and I got them that vacation and the pictures that I got afterwards and just you know their faces and stuff. When you, when you put yourself out there and you take those risks and you make money and you begin to help other people you impact their lives. That is so rewarding. It really is. And I think that everybody needs to experience that because once you experience it it's probably like the best drug in the world is helping people and seeing the positive changes that you can make in other people's lives you know. So I want, I want you to think about doing a short term rental if you haven't. I'm going to have some challenges set up in the next episodes that are going to help you take those first few steps to learn how to get your first short term rental you know get that, what do they say notch on your belt right and get it started and get some money flowing in and then teach you how to duplicate it and put you in a place where you can do the same thing where you can help other people where you can live a lifestyle.

[40:08] Now just like you always wanted to live that you don't have to make any kind of excuses or any kind of you know sacrifices you can live the life that you dreamed of. Because honestly there's no reason you can't. You are the one who sets those boundaries and those limitations in your own mind. So let's get past them right. So why now. Well right now the market is extremely strong with short term rentals and it is almost all over the United States and it's growing every single day and it's growing in areas that you wouldn't even expect it to grow right there are properties, people renting out properties in little cities or little towns and you know people are literally making a lot of money doing that. Now obviously there are towns like Orlando that are very high touristy towns where the market is extremely saturated and it's much more difficult to do a short term rental property in a touristy place.

[41:17] I know that most people think that it wouldn't. And that's why they lose a lot of money because they go oh I live in you know I don't know Las Vegas or Orlando or you know I don't you know pick it to a tourist town and they get started if they get started wrong they're just going to lose money. They are literally going to be you know just debris. But if they get started the right way they could probably still make money and if they get started on the outskirts like you know if you had a rental property in Henderson you could probably make even more money than some of those other people who are right there in Vegas and there's going to be different reasons why. But the thing is you need to be knowledgeable you need to know what's going on you need to know what the trends are you need to know what's working what's not working why it's working why it's not working.

[42:13] There's a lot of information that you need to know. Right. And it still if you think about it short term rentals I know they've been around for a long time because we've been doing them for a long time but they're relatively new when it comes to things like Airbnb. It's still a newer trend. And it's still unsaturated in a lot of areas right. So there's still a lot of room for growth before it explodes. And you know I think that this is the time to get on that wave. This is the time to start paddling out and and hop on the wave and start riding and market trends remember they don't last forever. So why would you wait. You know you wait too long and everybody is going to be on it and then it's really saturated and then it starts not working for everybody and then it's harder and harder.

[43:08] So that's why you want to get on now you really really got to learn to make those moves when when you have the inclination to buy something or do something when it comes to investing. Go with your gut, if your gut is telling you I really want to do this but I'm scared. Well obviously everybody's scared. You know obviously the first time we do anything we're going to be scared. That's the time to jump because you can't let that fear hold you back. Fear False Evidence Appearing Real. Right. Nobody does anything. Not out of fear. The first time you do something that's always fearful and then the more often you do it it gets less and less. But you know there's a lot of things that fear never goes away but you just got to learn to embrace it and go with it. And you know we're going to teach you all the best ways to do it and teach you all the downfalls and when you're educated about something then you can make much better decisions you can make a more educated decision about how and what you invest in and then you know it's got amazing returns short term rentals have amazing returns.

[44:19] They're even better than the properties that I hold, that I buy and hold you know so I like them. Obviously you're taxed a little bit differently and there are a few more expenses and they're little trickier. Well you know I think they're a little trickier. It depends if you're just learning this and you have never done other stuff you'll never even think it's tricky it's kind of like us investing when the interest rates were 12 percent and people go how did you do that. What was the only way to do it. Because that's how the interest rates were what do you mean how did we do it. It was the only way no other way. So this will be "The way" for you when you first get into investing. If it's the only thing you've ever invested in because you'll never know how to do it wrong.

[45:03] If you only learn the right way. So that's kind of cool. So why short term rentals. Well the market, the market says OK well everything is you know the real estate prices are growing, growing, and growing and so if you're picking up property is right now you're picking them up more and more expensive every day and you're probably making less and less cash flow. Right. Because the rents don't grow nearly as fast as the prices of mortgages are growing. So you're going to make a lot more money and create a lot more cash flow with a short term rental. And what's really cool is the income on a short term rental is just much better. You know where you're making$50 to $100 dollars on multi units you know per unit or you're making several hundred dollars on a home. This way you can make literally you know thousands of dollars on each of your rental properties.

[46:00] And I think it's just a much better much safer way. It's easy to get in an easy to get out. You always want to have several exit strategies in any type of investment. And so you know what if the market does crash or even if it doesn't you want to have a way to get out if you need to get out because there might be some reason that you need to get cash quickly. And this is the best way. You'll be able to you know be in and out quickly and easily. And it's a win win scenario. To it helps out. You know like I said I was renting some of the properties I rent are from my friends my friends are making more money me renting from them and I'm taking better care of their properties than they are with the other renters that they had with the long term renters.

[46:52] So it's a win win scenario. It's helping everybody out. So this is a great place to be. This is exactly where you want to be. And obviously if you're listening there's something driving you to do this and I'm really encouraging you to stay with us and stay tuned. Go to our Web site. It's also as STRrevenue,com and learn more about short term rentals there. Or you can go to TheProsperity That's our main web site. That's the business that owns all our other businesses and that's home to our blogs and and all kinds of information in there that you can learn how to handle your money. Just smart articles and you know just really educate yourself about things because you're in charge of everything you do. You are responsible for everything you do. And believe it or not you are where you are right now because of the decisions that you've made and once you're ready to grow up and take responsibility and say Yep I'm here because somehow some way I chose to be.

[48:04] And you know I'm a victim to no one. And you take that power back you know from everyone else you start to create a life for yourself that is beyond words. It's like no other. And I think you're ready to do that because you're listening to this podcast something drew you hear and I'm really glad you're here. I'm really grateful for you listening. I hope that you hit the subscribe button. Leave a comment. Go to our Facebook site ask questions. Every Monday we do a live Q and A either on a zoom or. I actually did a Facebook Live From Where was I Epcot Center on Monday this past Monday. And that was a lot of fun. So if you have any questions post them on our Facebook either in the comments area. I would actually post them in the private messages so that we can see them and were made aware of them.

[49:00] We're going to answer any questions you have. It doesn't matter what it is and if it's a private question that you want to answer just to you just please send it in there and just say hey can you privately message me. Now I might bring it up and not use your name or something because a lot of times when you have a question it's a question that other people have too and it might be something that we you know we we try to address later with everyone else but never be embarrassed about a question that you have. And we're here to answer your questions and I want to I want to answer everyone's question because I want you guys to feel confident in a business that you're starting for yourself and for your family. And I really want to empower you. I want you to be super successful and really happy you know a year from now kind of look back and go wow I can't believe I started just a year ago and look at the lifestyle I've created. And I think you could do that. I don't think you can. I know you can. So like subscribe. Tell your friends about our podcast. We're just getting started at super excited.

[50:08] I'm really grateful for all the comments the likes the shares the subscribers got subscribers. That's so cool. I'm loving that. So if you're a subscriber thank you. Thank you. Thank you for signing up. That was so cool when I saw we had subscribers. I was like this is awesome but if there's anything I can do for you please let me know. Put it in. You know the Facebook Messenger and send it out to us. We'd love to answer your questions and get to you. And we look forward to the next podcast with you. Every Friday we're going to be posting them. And if there's anything we could do for you, an extra bonus one like we did Friday. If there's anything we can do for you just let us know.

[50:51] So have a safe day. God bless. Go and Grow. And we'll see you on our next podcast.


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