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[00:00] Hi It's Michelle the Master of Money Mindset and we're here with the short term rental revenue podcast. And in today's episode we're going to talk about being the self-employed Superman or hiring a property management company. Stay tuned.
[00:14] 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.
[00:35] Hi it's Michelle and welcome to the short term rental revenue podcast. And like I said today we're talking about self-employed Superman's and property management companies. Now if you've read any of Robert Kiyoski's books like "Rich Dad Poor Dad" or "the Cash Flow Quadrant" which is my favorite of those two. But the Cash Flow Quadrant talks about whether or not you're an employee or you're self-employed or you're a business owner or you're an investor. OK so it splits people up and their money making habits into one of those things and a lot of people who think they're being a business owner are really just being self-employed and they're wearing this big S on their shirt. That's how you always remember it. Like the self-employed Superman. So a self-employed Superman is basically just saying you're still trading your time for dollars which is what employees do. And if you're trading time for dollars you're not going to ever be wealthy.
[01:40] You just can't do it. They can't pay you enough. You could be a lawyer or an attorney making you know hundreds of dollars per hour or you could be even a doctor maybe a brain surgeon and you're making twenty thousand dollars. But here's the deal. There are only so many hours in every week. Therefore if you're trading for dollars that is a finite number that is not a infinite number. What business owners do and what investors do is they learn to make the money work for itself. They make businesses work for themselves. They make properties work for themselves right. So your whole job when you become a short term rental owner is to literally create a business you're not doing this. I mean you might start doing it for a little extra income but when you start doing just one you'll start to realize that hey if I just duplicate this you know just one time or maybe just five times or maybe just ten times there could be some money in this.
[02:49] And it's like. Yes. Ding ding ding. That's it.
[02:52] When you can do those things when you can duplicate what you've learned. And the more people you can serve the more money you make. And that's literally any business that is pretty much how any business works ok. If the more people you serve the more money you make. Imagine if you will Bill Gates wanting to install windows inside a bunch of computers a bunch of home computers. Right. Just looking at it going how many home computers could I put this in. You know and he would have a line of people coming into his garage and he would put them in the garage. The Garage is actually Steve Jobs. But I'm just saying it's just like you'd have a line of people in if he was doing it each one at a time. That's all he served. But the fact is what he did was he decided I'm going to mass produce something and I'm going to offer it to all of these little computer companies right.
[03:48] And I don't care if it's HP I don't care if it's Dell I don't care who it is I'm going to give them an operating system that makes it easier and I'm going to allow them to license it from me. So therefore he was able to put himself in front of many many many people and therefore he is sitting on the top of the hill now because he serves way more people way more people the more people you serve the more money you will make and you just have to figure out a way to get whatever I mean I don't care what you do like if you are an artist you have to make sure that you can get that your art out in front of the most people. So one of the most I would just say the richest men out there who's and who is in art is actually he's got an entire dynasty is the guy who made those little precious moments.
[04:43] Right. He's got a dynasty. He created these beautiful little little you know kid like characters and maybe he painted it first or drew it and then he created these little statues. But when they realized that they could just mass produce this and sell them he started selling more and more and more. And like right now I read something. I'm probably going to blow this how I say it but he is the richest artist who's who's living. And he has sold more art of his than any artist in history, in history and he's made more money than any artist in history. So because he could duplicate it. That's what he did. So that's what we have to find. We have to find a way to duplicate ourselves right and to duplicate what we've done.
[05:37] Now the reason why I'm talking about property management companies is because I'm in a bunch of little forums and I saw a lot of questions about it this week and I'm not getting nearly as many questions as I need from you guys to get out there and write me questions. Although I do get some and then I I have been personally responding to quite a few. This week it's been kind of fun but I've been making cookies and then in the mean time when things are baking in the oven I'm less like bing bing bing on my little phone doing Facebook messages. Surveys like how does she have the time to do this on baking cookies. It was my granddaughter's birthday this weekend so I actually made a unicorn cake for her so I was baking baking a lot. This is a lot of good food in my house.
[06:23] I'm going to go on a diet because I'm eating so well. But anyways here's the deal in this forum in these forums I see a lot of questions about property management companies and so silos like you know what I'm going to have to answer some questions about that because there's probably somebody out there who is first of all arguing that they need to do it for themselves and that's ok and I'm going to go over that. But then there's also people out there who want to hire property management companies and somebody else is talking them out of it which is also OK. But there are good reasons to have it bad. And I'm going to let you decide for yourself. So I've got I put all my notes on cards this week. This is going to be so much fun because usually I have like I write it all down.
[07:05] I'm like a legal note, a spiral notebook like crazy person. I've got spiral notebooks all over my office for every single class I've ever taken for anything. It's all in there and so, so my friends said you know why do you, why do you hold that up when you're doing this online. Well because I'd like to look at my notes to make sure I'm staying on task and they go here. And they brought me over some index cards I'm like oh that's awesome. I will use those and then I had to go out and get like markers and stickers and stuff so you could see them. I didn't know I was like so creative. I am I'm creative. So anyway let's go back. So now I'm creative and I'm also off track. But let's go back so some. I'm going to take you back to when I started investing in short term rentals. Now we're going to go back to the prehistoric days you're going to see Fred Flintstone a car with his feet sticking through the bottom and running right now. Not that far back but quite quite a bit far back. When I started investing in short term rentals.
[08:10] It was way back in the 90s. And the reason why was because I was traveling back and forth. I loved Florida and my husband loves Arizona and I just want the flowers and the trees and the green. And I mean you know if I'm going to have sand I would like to have an ocean that goes with it and I'm not as thrilled about living in Arizona as my husband is especially 30 years we've been here and I know there's probably some of you going but I love her as I do. I love the people I love the neighborhoods I love I love parts. But I really really hate 118 weather. I really hated that it's over 110 for you know 30 days out of the year. I mean it just gets hot and when you're getting older you just you know it drains you of your energy. So I like to go to Florida and I take off and go to Florida a lot.
[09:06] And I started way back in the 90s. You know I'm just going to take the kids for vacation. And I had to head out and you know I take my mom and you know visit my parents. My sister lived out there and so I was like ok I was visiting friends and family.
[09:22] And then I even began investing out there and you know doing flips and stuff with my dad. So I did a lot of stuff out in Florida and when I was out there I realized that short term rentals were the way to go. Now back in those days they had oh my gosh everybody was buying vacation rentals but you know that your parents were getting sucked into those you know come on in. And you know just talk to us for two hours we'll give you a knife set or we'll give you this or we'll give you that because they wanted you to buy into their properties down there. And obviously if you're if you read any investment books and even if you hadn't you probably know that that is not the way you want to invest.
[10:03] You don't want to give somebody 20 or 30 thousand dollars or if it's Disney hundreds of thousands of dollars just to get a few points just to be able to stay there once a year even if it's like oh you can see anywhere in the world I'm going to tell you right now your money would be better invested in something else than than one of those.
[10:22] But what we did find was that we could buy a property that we would own like a whole unit. Two and three bedroom properties with you know two and three bathrooms and actually owned the entire property. But a lot of them were they were still our short term rental but we owned the whole entire property all year. All 52 weeks it wasn't
[10:45] You know like a timeshare kind of thing. But we got we would get the property but you had to use their property management and sometimes the property management company was like a big company like Wyndham or something. So they ran the property and sometimes it was a specific property management company that ran it you know just at that location or maybe just a few locations or whatever but whatever it was you didn't have a choice you had to buy into it. And that was OK because they pretty much handle everything and you're just investing your you know couple of hundred thousand dollars. And you know you would you wouldn't have to do anything you just sit back and you collect a check basically and then you would just if you wanted to go stay there you would call them and say hey I want to spend this month and you would give them the weeks and they would put you up there and if your place was booked they'd put you in one that was next door to it or in the same resort or sometimes you could even go to a different resort.
[11:47] So the whole thing was short term rentals were less Hands-On. Now, if we go back even farther I want you to always remember especially when you know you'll hear towns and people going crazy over short term rentals going, this is a neighborhood it's not a vacation place or whatever. They're getting really upset about short term rentals and being put into their locations. But I hate to tell you there were short term rentals way way before there were hotels. Remember there were boardinghouses before there were hotels. One of the first major hotels didn't occur until the Hilton hotels. And the reason why is because every time you went into a town there were some big house that was run by somebody and it was a boarding house and they would rent out the rooms. Those were the first hotels. So this concept is not a new concept. It's been around for a long time when people traveled. I mean think about the story of you know baby Jesus. They went to all these Inns. right, Inns were basically just people's homes where they rented out the rooms. They were not hotels they were run as businesses out of people's homes. So these are not new, new things right. So don't let anybody ever try to make you feel bad about. I mean are short term rental. These things are old.
[13:08] They've been around for a long time and I doubt that anybody's going to be able to smash our buzz because I have a feeling they will be around for a lot longer. So anyway a lot of them come with very high homeowner's association fees.
[13:24] And the reason why is they include a lot of things. They include things like your cable your internet your water your gas your maintenance. And that means like a maintenance guy who comes in and changes changes out the air filters every month keeps everything going. If there's any kind of leak or anything they're on it, they've got a front desk who checks people in to make sure everything's going nice. They even sometimes have a concierge or some type of guest services where people can buy tickets if they live in a resort community or someplace or there's some kind of events going on. I mean wine country they book wine tours for you depending on where you are. There's like a lot of stuff and there are 24 hours there 24 hours a day. They can the guest can push a button and boop somebody will be there if it's like you know they need extra pillows or blankets or the toilets leaking anything that happens there's somebody there for you.
[14:20] So honestly there's a really good reason why the HOA fees are that much. And for me it pretty much takes care of itself. I would gladly pay for that so that I don't have to have lots and lots of phone calls. And people do. That's why we invested in those short term rentals right. So after the crash everything changed everything was on sale. It was crazy and I want you to remember that because a crash is not necessarily a bad thing. It's actually just an adjustment. I know a lot of people in California thought their houses were really worth that much. No they weren't. That's why you could go to places like Florida and get the same kind of house in the same type of place with the palm trees in the sunshine for a lot, lot less than you could you know being in the smog of California.
[15:14] So it's not necessarily the real estate prices were real they weren't and they adjust themselves and everything adjusts itself to what is going on or what it should be. So it's everything is an ebb and flow right. It goes up it goes down. It's just a Ying and Yang constantly so you have to realize that and that's why I talked about it one of our previous podcast. Why I don't believe in buying a lot of properties at this moment unless you're getting a super duper deal because I believe there's another adjustment coming. A lot of people do and that's why I love renting these properties because you're waiting. Right. So remember I want you to remember that everything is on sale when the prices go down. So what should you be doing right now if you think that maybe possibly in the near future there could be some kind of price adjustment you should be number one saving money and number to making sure that your credit is fixed right cleaning up your credit and do that now because there is an adjustment coming.
[16:22] So you've got time. You know houses were so cheap after the crash that you could pick up a house for pretty much the same price as you could pick up a condo or one of those vacation rentals and it would be an entire house. And sometimes it was even cheaper. I mean because before the crash we were paying a couple hundred and change for a condo plus these really expensive HOA fees right. And then suddenly there were houses and I'm talking the houses were cheap, really cheap with really low HOA's and sometimes the houses had their own pools and sometimes they had community pools it didn't really matter. This was like amazing. It was super cool. But what problem it created was a problem of property management. OK so even though you could pick up these places who was going to run them who was going to take care of all those things like I talked about before right with the property management companies or the guys who are taking care of our other properties you know they had 24 hour service. Houses are way different than that. When you're doing a short term rental out of a house it's way different there's not going to be the concierge. Nobody's going to be there 24/7 when they pick up the phone. Right. It's a little bit different. It's not being a full time resident made that very difficult to manage right.
[17:51] So enter property management companies and OK so I want you to think about why it would be difficult to find a property management company to manage your house. What's the difference between. Think, think about this. What is the difference between a property management company managing you know one of those buildings that has a bunch of condos in it you know three four bedrooms and they're sitting in the office on site.
[18:17] Now obviously they're on site but that's not the main difference and the difference between that property management company and a property management company that manages a bunch of single family houses.
[18:27] What is the difference. There's a ton of difference.
[18:32] OK there's a ton of difference because Prop houses you know properties are right there and the property management companies are right there. They can handle anything because they're right there and they're right on site right.
[18:43] But houses are scattered all over not just all over a city sometimes all over a valley are all over an entire area. Right. So like if you're thinking about Phoenix you can't say oh we've got this property management company in Mesa they cover everything. I mean there's there's far ends of the valley. You can go way down to Queen Creek and one corner way up to Paradise Valley in another corner and then way way out to Surprise and Glendale. I mean Ahwatukee is way down in one corner. These places are stretched out, stretched out and there's you know it costs a lot of money. Because why. Because people have got to go and check on different things that are getting done right. So picture this in your head picture somebody I'm in charge I work for a property management company and I'm in charge of getting people to go out and do the lawns for all these houses.
[19:43] And so I I've got you know a lawn care people for the East Valley I've got lawn care people for the West Valley. I've got them scattered all throughout. Now how do I know if my if my landscapers got to that house. I don't I don't I can't I. I've got to trust that they did. And it's easy to do that more easy to do that if you know people are living in that house. They can say hey the landscapers didn't come today but if no one's living in that house and it's if it's being rented out you've got no one to check on that for you. You've got to be the one who goes and checks that out. And it's really difficult to do. So there's so many things that a property management company for a single family home might be in charge of things like the cleaning service right laundry that includes laundry, maintenance doing the air filters and just making the general maintenance of the place and making sure that's up and the lawn care and the yard care and the HOA fees and things like that pool maintenance.
[20:51] If you have your own pool or hot tub or whatever and bugs and pest control just making sure that the outside is fine after the storm you know that. No screens are off your windows or anything is broken. I mean there's a lot of care that goes into taking care of a house. So these were relatively new things and relatively new areas and a lot of people were taking advantage. Tell me how you think a property management company can take advantage. Let's say you've got this happens in Florida a lot. OK let me tell you why because we've got a bunch of out of not just out of state not just out of this city out of the entire country. Owners in Florida. People who live in Ireland and England and down in South America. They will own the property and they'll hire these property management companies and they're trusting them.
[21:44] They're paying them every single month taking the people are you know they're taking a percentage of their income or they're paying them because sometimes you have to pay them regardless of if the place is rented out or not to maintain the property right. So they're not there to check on it. And they're saying no yeah the bug guy he's coming every single month right on time and then they have the bug guy come out. Maybe every four months or they'll say Oh yeah the pool is being maintained. We've got somebody out there every single week checking the chemicals. No not every single week maybe once a month you know. The thing is during the summer time you can't do that. You if you've got a lot of visitors and people using that pool you've got to be out there even more often because things go awry and they go awry quickly when it comes to poor maintenance.
[22:33] And the same thing goes for long care unless they're doing something on the lawn you know like having a picnic or running with their dog or doing something. Most people won't say anything if the yard is the grass is a little long you know they might notice it but they're not going to call up and say hey I noticed that your bushes haven't been trimmed in a while you know. Maybe you should call your you know whatever. Nobody does that. So they were getting away with a lot. They were getting away with let's say not doing a lot. And when. Like I said when you found a good property management company who is on the ball and they were taking care of all the things that they said they were going to take care of all the time they were making money. Why. Because word of mouth right when somebody is getting really good service.
[23:22] Then you tell another neighbor they're like hey we're a property management company and that's a that's a question that goes around a lot in Florida. Well a property management company does oh use such and such. So these good companies were making a lot of money. They had a lot of business and they started growing really fast a lot of times their business was worth more. So the guys would sell out they would say you know what I could sell this business for X amount of dollars and retire and they would. And then what happens then a new owner comes in and says we could save money by doing this and make even more money by doing this and more money by doing this and most of it is cutting corners and cutting people out. And then the service would go to crap again. So that is the nightmare that many of us property owners lived with in Florida for a long time.
[24:10] And like I said to the costs were you know started out at 6 and then they kept going up 7 8 9 10 11 12 and you're like oh my god these people are taking a lot of money. Plus they're charging you all those little fees on top of it. They're charging you the fees for the maintenance guys, they're charging you the fees for the, landscape guys, they they're charging you the fees for the pool guys. All these little fees are on top of that. So you know we were making less and less money. So in order to find a good one you didn't mind paying a little bit more sometimes and then that would just up the fee a little bit more, a little bit more, a little bit more until these guys got incredibly greedy. So you know which is why you say I don't mind paying a high homeowner's association fee for those other types of properties. And those are the majority of ones I buy because why my hands are off. I don't have to touch them. It seems like it's a high fee to pay but at the same time I never ever ever have to touch it. I've got somebody else who's there answering these people 24/7. And it's amazing because I don't have to deal with reviews.
[25:21] I don't have to deal with anything. Like most people go oh this is great.
[25:25] This little Airbnb thing and I'm like just wait. You put that thing on one of these autopilots. It's like Airbnb on steroids man it's awesome. You just sit back and collect the checks. I love them. Now some people like to be hands on it really, really depends on you. I'm not going to tell you that the way you are doing this is wrong If you're one of those people who love to welcome people into your home. I love that there's people out there.
[25:51] I read a story on one of the Airbnb forums about a guy who was talking about his favorite guest and he was talking about this little lady who came from China and she she didn't speak any English and he lost her it started out really bad he lost her at the airport and all this bad stuff happened and they were communicating with an app which wasn't even as good as they thought it could be but they were going back and forth and he came home and she had taken over his kitchen and made him like this wonderful meal. And he didn't have the heart to tell her that they weren't allowed to cook there but he was like you know he just told this wonderful warm story. And honestly you are going to get a lot of stories like that. It's going to be amazing for you when you when you become one of those personable hosts.
[26:40] I just don't have time for that. I really don't. I've got all these other businesses and all these other things I do. And you know things that I like to do and being home at an Hands-On was something I did when I was younger. And now that I'm older and I just want to be living you know I just want to live my life the best way possible. I love to travel. I owned a travel agency I went to hotel and travel school when I was young. Traveling is like what I love to do. So I don't want to be home taking care of people. I took care of five kids and they're all grown up now and I don't need to take care of people anymore. I don't need to do that. So I don't want you to feel bad about any way you decide to host because how you host is literally like how you wear your clothes or what car you buy.
[27:31] So whether you decide to live up in the mountain or down by the ocean or whether you decide to drive a Bentley or a Beemer or you know just a POS it doesn't really matter to me. It only matters to you. But I want you to think about a few things when you're thinking about that. OK. When you're thinking about you know management companies and you're thinking about whether you should do it or not. I suggest people start doing it because I think you should know about it. But let me just ask you a couple of questions. First do you have someone who comes in and cleans your house every week.
[28:08] And and if you don't why not. And if you do why.
[28:14] Why do you choose that right. Is it worth it to you to have somebody come in. So like let's say you have a bigger house and you have somebody come in and clean and it's a couple of hundred dollars a week to clean your house. Is it worth it to you if you've got a bigger house or you got a bunch of kids and stuff and you have an extra couple of hundred dollars a week.
[28:35] I think it's very worth to you. I think it is. I know that cleaning having a house cleaner for me. I love that.
[28:42] I love having a clean house because I'm just super OCD. And if I clean the house it takes me hours and hours and hours to do it because I'm super specific about the way I do it right. It takes me way longer than my house cleaners take. Not that they don't do a good job only that I am just way too damn picky. So you know about the way I do things. I don't think it needs to be done that way. And you know people go Well I do it better. You're just you're just a perfectionist. We waste time perfectionist we waste time. I don't care what anybody says. If you're a perfectionist you're a time waster because you're going to waste all your time trying to get it perfect and not get things done. That's why we waste time.
[29:24] So I've learned in all of my years, in one of my reviews too in all her years of wisdom. Thank you.
[29:33] But I've learned in all my years that being a perfectionist is just a waste of my time. I don't need to be a perfectionist. It just needs to be done and it needs to be good enough and a lot of different things right. So the one thing I know too is that real estate is only worth what it's worth to you. And that was huge for me. So I'm going to say it again. Real estate is only worth what it is worth to you when it comes to an investment property or any other property. I mean obviously you can put a price tag on buildings because that's the material stuff right. So you can put a price tag on that but you can't put a price tag on the land. You really can't because there's no real value to it except for the value we give it right.
[30:22] So if it's in a really lovely place we tend to give it a higher value. But that's only a perceived value. So take a look at the houses in Malibu right now. Those poor people have lost beautiful homes overlooking the ocean. Right. So is that property worth any less or any more than it was before after the fires. Not really. It's perceived value is more or less maybe the perceived value is the same. See but the value is only what we place on it. And the reason why is we're humans we tend to overvalue a lot of things especially when it's ours. If we're selling our own personal house we almost always overvalue it. We think it's almost always worth more than it really is worth. It's good to get a really have a good agent who comes in and does an appraisal and you can sit and cry about it later because you've got the appraisal and appraisal said it was worth this much.
[31:21] It's the only way to do it because you've got to get your ego out of the way you're like Yeah but I I put in that flower bed in the backyard and I put that barbecue thing in myself and it's like yeah it's not worth what you think you mean it is or what you even paid for it. A lot of times you put it in a pool you can spend a couple hundred thousand on a pool that doesn't improve the value of your home a couple hundred thousand. I hate to tell you. And if it's a rental property sometimes it even brings down the value because of the insurance involved. So you have to be really careful when you're thinking about the value of something. So let's talk about the value of your time right. It carries over. What is your time worth well the self-employed Superman guys you know those are the guys who are cleaning themselves, they're listing it themselves, they're answering all the e-mails, and the requests themselves, you know they're doing all that themselves. The Superman that Robert Kiyosaki used to talk about the self-employed right now. Why. Why did he dissed them because even doctors and attorneys are Superman's the S. They're the self-employed. No why. Why would he. Now if you read the book don't give it away to the other people in the peanut gallery right now in the forum.
[32:40] Don't go crazy.
[32:41] But the reason why is because they're still trading in time for dollars. Remember you're trading the time for dollars and if you're doing that if you're giving your time away you're really working at a minimum wage. So you know Robin Thompson she was or she is she's a real estate guru. She used to speak at all of the RERA all over the country area as a real estate investment association. They have them all over. And Robin Thompson was just an amazing speaker and she was what they call her the queen of rehab.
[33:16] And we used to say well that has different connotation. Oh rehab not rehab. Yeah.
[33:25] Buy houses and fix them up but she used to always talk about the MW ways don't be doing MWA. And that was minimum wage activities. Don't be doing minimum wage activities. Now I'm going to say you know it's OK when you're in the learning process. So when you're in the learning process it's ok to do the cleaning yourself, it's ok ,to do the listings yourself. It's OK. Any time you're in any kind of business. Honestly I believe you should step in because it's going to teach you all about what you're going to hire somebody to do. Right. What you're going to hire them for. So the very first time you know you might go into a place and you start cleaning. There is no better time to look around at a place that you bought than when you're cleaning it because you will see every cracked tile every everything.
[34:16] I mean you're like I never saw this before. I never saw this before. That's because you weren't on your hands and knees cleaning. If you're on your hands and knees cleaning it you'll know it. But the reason you should do it once and only once is you know you want to make sure that somebody else is doing the stuff that you could be spending your time making money with. So your time is better invested in the money making activities right. Find the new properties loading those up finding new contracts finding new locations finding a a better property management company. I like your time is better spent in the money making and the money earning portion not the money minimum wage portion of your business. You just don't want to be spending all your time in those MWA. Right. And like I said it's OK because it's good to know you're going to.
[35:10] Also you know what you're going to appreciate it a lot more too. No one appreciates a good cleaning company until they've done it themselves. And once you do it yourself you're just like oh my gosh. I mean it's like once a you know I have a really big house and even a house that we're in right now is pretty big. And when my girls come in she comes and my cleaning lady has like an entire staff. They come in they wipe this whole place out in a couple of hours and they were just wooshed there's a whole crew of them on ladders and everything cleaning everything and they can get it done in a couple of hours. And I love that. I appreciate it so much what they do is exactly what I do. And it would take me literally days to get it done.
[35:56] I can't get the whole thing done like it just takes too long. And so what they do for me for a couple of hundred bucks is amazing. I appreciate it. I really, really appreciate it. And you're going to appreciate it too when you start hiring cleaning companies to clean your short term rentals. You will appreciate it because that time will be better spent on the other money making activities. Not that you shouldn't do it once everybody. You should always do it once because that is the only way you learn to appreciate stuff then you hire somebody. And you also know too if they're wasting your time. They're like oh it took me six hours to do that. You're like dude I could totally do that in two hours and I'm not a professional you know. Then you'll know somebody is ripping you off and you'll know when you do things yourself.
[36:44] You learn about them so I do recommend doing things you know by yourself. Now obviously to think about this. I mean if if you're if you have a property that has a bedroom or a guest house connected to your property there is no reason for you to go out and hire somebody if you don't work all day or if you have something else you can do that would make that money. So if for instance if you're working I don't know at a real estate company and you average out your hourly wage to whatever you know let's say 25 bucks an hour 30 bucks an hour. But you can find somebody to clean that room for you for 10 or 15 bucks an hour then by all means you want to do that. But if you also if it's what if it's therapeutic to you as some people go love cleaning it's therapeutic.
[37:36] It used to be very therapeutic to me because I would put on headphones and block out my kids for a few hours little sleep like mommy's OK she's just cleaning the tub you know. But I mean if that's therapeutic and you want to do that and definitely do that. OK. But like I said figure out your time the time the money you're making and the time that you work and what you could spend on paying somebody else to do it. And if it's there's a difference don't do that. My husband was crazy about this. He's a doctor and I used to just get super mad at him when we first started having rental properties because he was like oh I'll go fix that, I'll go fix that, I'll go fix that. And I I'll you like when, when are you going to fix I got to get that done now.
[38:18] And he's like oh I'll go before work tomorrow. And he would get up and he'd want to go and then he would end up like when you first start doing it now he's super duper handy but when he first started doing it you'd be like he'd break the toilet or something go fix a leaky toilet. He'd do more damage. I'd have to hire somebody and then pay them a lot more because he was like got to a point where I would just look at them and say how much do you make an hour. You know what I think it's worth it for me to play that pay that plumber 50 bucks an hour. So he can do what he does best every single day because he could probably do it ten times faster and ten times better than you and to pay you to go do what you do every day and you go sit your little butt in the office and see that's that Superman mentality that self-employed mentality.
[39:05] Doctors really have that. That's one thing you have to get over when you are starting your short term rental business because you are not Superman number one and you are now a business owner. You're moving from the S to the B the s to the eye. You are now an investor or a business owner. You are no longer the self-employed person. Do you understand and you can't think like a self-employed person. So I want you to if you haven't read it get Robert Kiyosaki his book. Honestly it's one of my favorite books and it will never go out of style. Neither of his books well that's why they've done so well over the years because Rich Dad Poor Dad is all about your mentality and your money mindset and changing it from a poor money mindset to a wealth money mindset and the you know going into the cash flow quadrant that's talking about going from being an employee mindset or a Superman you know self-employed mindset to a business owner or an investor mindset.
[40:08] And I love, love, love those lessons. Those were invaluable. Honestly you could not put a price tag on them. So you need to do that. But remember you know the time that it saves you right. You know all that time could be better spent somewhere else in the money making activities not the minimum wage activities. You are not a minimum wage earner you're not a kid a high school kid or a part time worker. That's not what you're doing. You're doing this as an investment and you want to make the most money you possibly can. So start doing the activities that make you the most money and leave those minimum wage activities to those people who are minimum and not that we don't appreciate them. God bless them. I was them. I remember my mom cleaning houses when I was young and she took me with. Why do you think I'm such a neat freak. Because I had to clean houses. And I even had a friend when we were living up by the mountain and in the Superstition Mountains we had a big house up there that we lost in 2005 and one of my very good friends she had a house cleaning business and it was incredibly difficult for her to keep good workers working for her. So several times she would you know like call me up and go I don't know what to do.
[41:30] So and So canceled and this person I can't get a hold of them. This person is not coming in. You know she just had the worst luck with her employees. And so I'd say I'll come I'll clean with you. Don't worry we'll go get it done. And so you know one of my kids in charge or the other but Nicole in charge everybody because she was like I'm going to go help Julie's out for a second just watch the kids and we were going clean and we it was really crazy because I had a 6000 square foot home plus a guest house and a barn and two and a half acres backed up to the national forest I mean it was beautiful. It was huge.
[42:03] I even had one guy one time her husband and I were cleaning your place and you kept looking over at me going but she never saw how is this nice. Before his house was forget what it was like it was a nice house. I'm not saying it wasn't. It was a nice house but it was like 3000 or 3500 square feet.
[42:21] Maybe it was a little bit bigger because you thought that I had never seen a house that big in my life. And I was like Now this is pretty big. You're right.
[42:28] And he was like ever seen anything like this and show me around his house. The guy says. Oh my gosh are like everything I could just by letting go No sir that's awesome. And her husband have Javier is the sweetest guy. And how did you keep your mouth shut. Michelle I know what a big mouth you have. I said it was difficult man. I kept thinking of Father Stan yelling at me and telling me that you know instead of giving people the finger to give them five fingers and just go bless you. So I was just blessing them the whole time. Arrogant guys just trying to rub his money in my face and I'm like dude you have no idea. Do whatever. But I have cleaned houses and I have clean houses for people in the near past I should say. You know it wasn't so long ago. Very recently. And I don't mind doing that because honestly I don't think I'm above anybody else and there are jobs and my cleaning ladies are some of the best people I know.
[43:30] They're wonderful, wonderful women. Well the owner I'm thinking of her, Adriana, She's fabulous. I love her, love her, love her and all the ladies who worked for her so I don't put myself above anybody else to do it. I'm just saying when it comes to the money end of it I am a business owner first. And I think of my business as a business. And that's what I want you to do. Not that you're better than anybody else but you. Your time is better spent making money.
[44:00] OK. So make the money make the money do it. Now I'm just going to think of the movie. What was it with Tom Cruise.
[44:12] Was like show me the money.
[44:15] Show me the money. Yep I love that movie. That always cracks me up. Cuba Gooding Jr. in that movie doing that little dance.
[44:26] But anyways that's what you want to do. You want to show your family the money right. And your retirement show your retirement. The money that's what you want to do. So here's the deal too. I wanted to touch on this really quick and I'm glad I wrote this down because you know that show that I was talking about the 'Stay Here". It's on Netflix and it talks about short term rentals. They tell people not to use programs and platforms like Airbnb, they're teaching them to use search engine optimization which is like an FCO like going online and paying for clicks for people to find their businesses and their bed and breakfasts and they can save money.
[45:12] They can save money but not time.
[45:15] It's going to take. There is a huge learning curve there to learn how to do good SEOs especially nowadays because that stuff changes all the time right. You might as well hire somebody you know go on Rachel Miller's moolah Web site and hire yourself a really good social media person to do all that stuff for you instead of going on and doing it yourself again. It's your time your time. You cannot get back you know your time is invaluable. Time is money. You know you try to just you want to take these people and go No you want to do what's easy. Your your ,your time is so important that it is worth it.
[45:59] Here's the deal too what Air B and B charges is so minimal compared to what they bring to the table like they charge you a very tiny percentage. There's a lot that charge you a lot more. But air BMB they give you a million dollar policy they have a really great platform and they advertise like crazy and your place is going to be shown to a lot more people on their platform than it will ever be going out with these little SEO'S right now. You could create your own little website and start a following and keep people coming and coming back by offering little things maybe you can you could use gamification and save. You know if you stay nine times you get the 10th night free or something like that. That's taking from the people that you've already gathered and creating a following that way or maybe a following on Facebook or a group some way that way. So you can't create your own Airbnb or your own vacation rental by owner that VRBO you can't do that. I mean not unless you really want to and you've got the I know the guys who helped with the Airbnb and so like those guys those kids are genius man.
[47:11] They got paid a lot of money to do that. But here's the deal. Like unless that's what you do then don't try to do it.
[47:19] Don't try to reinvent the wheel just kind of go with the flow and use those platforms and then just create what is going to be a lot easier instead of spending all your time doing the SEO's and all that other stuff and learning how to do it and taking the courses and blah blah. You would be better off just paying that little tiny fee to Airbnb and going and finding another vacation rental property to own where you make even more money and then just duplicating that and duplicating that much easier much simpler. Like I said spending your time creating the income that's where your time is going to be better spent. Let those guys do their job and pay them to do it because they do it well. Why do we pay our cleaning companies. Why do we pay the maintenance guy.
[48:08] Why do we pay the landscaping guys. Why do we pay. You know the people who come in and do the laundry and stuff. Why do we pay them so we don't have to do it. Number one right. Yeah but number two. Because they do a great job doing it. They do it really well what they do. They do really well and I am grateful for it. And I think you would be to just pay them the money and don't feel bad about it. I mean that's the best thing about money is that it flows through us. It's just energy right. Money flows and it's meant to flow. It's not meant to you're not meant to strangle the heck out of it and say stay here stay here with me. So what it comes down to is what is your time worth to you. And where are you making your money. Make sure you know those things. And when it comes to the property management companies if you can do it yourself right now. And that's all you can do then great do it. But if you're asking yourself can I afford this.
[49:08] You're asking the wrong question as your friend because I really want you to think of me as your friend. OK. No seriously don't ever say can I afford this. You always need to put a how in front of this. OK. If you ever. If those words come out of your mouth how can I afford.
[49:26] This is way more powerful than can I afford this right. How can I afford it. How can I make enough money to afford that. How can I do it. How can I do it. How can I.
[49:39] Is way better. So don't sit there and go oh I can't afford this I can't afford this I can't afford this put a how in front of it.
[49:48] How can I afford this right. How can I afford this. I can I can.
[49:55] This is how and you'll figure out a way. Because those are empowering statements. Those get your brain. You know the Tony Robbins and the primary questions those get your brain moving in the correct way. So again I want to thank you guys for listening. I want to thank you for subscribing. I want to quickly ask you to go to our Facebook page and say hi. Leave a comment leave questions. We'll get to them and answer them if you want to leave him in a private message. That's fine. Go to our Web site. You're going to love it. We've got lots of free giveaways on there lots of information things that you can download, things that you can read, things that you can listen to, things that you can buy whatever you want. I mean just go there and explore. And we really appreciate you being here. We appreciate you listening to us. We appreciate the reviews and the comments and we appreciate you. Thank you so much for listening.
[50:51] Have a great day. God bless you. Go & Grow.
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