WHAT BOOKS, PRODUCTS, SERVICES, OR LINKS WERE MENTIONED...
Recommended Article or Blog Post Related to This Week's Podcast:
Recommended Podcast Episode that is paired with this one like a Fine Wine:
Get This Episode's Show Notes in a pdf form...
PICTURE OF PDF
[00:01] 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.
[00:21] Hi, this is Michelle, the Master of Money Mindset, and you are listening to the Short Term Rental Revenue Podcast...
and in today's episode, Speaker 2: (00:31)
we are talking about real estate and your guests, how to find them, love them and keep them. But first I wanted to thank Jake Bowman for his five star review. Jake left a review that said amazing advice from a great mine. Thanks for all the excellent content. Thank you Jake. I appreciate you. I appreciate you listening and I'm glad you love us. I also wanted to remind you that today's podcast is brought to you by audible. Get your free audio book download and a 30 Day free trial at audibletrial.com/ s t r revenue. Go to audible.com and you'll find over 180,000 titles to choose from. And you can use your iPhone, android, kindle, MP, three player or your computer to listen to your audio books.
Speaker 2: (01:20)
You'll also love the audible app that they have because they've got all kinds of stories, including ted talks, all kinds of things that you can listen to, murder mysteries. But I love the business books and the self help section. Those books are my favorite to read. So go there, get your free trial audible trial.com forward slash s t our revenue. Actually, if you're in the Phoenix area this month, on March 18th I will be doing a talk at the Azbria, the women's meeting there, letting people know how to invest in real estate, a short term rentals, and how to create one and make it profitable and get it running and flowing there. So you're more than welcome to join us. If you're in the Phoenix area, it will be so much fun and it will be hosted by my dear friend Maria [inaudible] love Maria. And she's moving very soon.
Speaker 2: (02:12)
So she just had a going away party, the food, everyone was telling me how amazing it was, including my husband and everybody there. She had it catered and it was amazing. But I was on a juicing fast, so I was going too fast for the whole month of March and, and make sure that, you know, just cleanse my system. I know at loud people don't like fast. I like juicing fast. I've done it at least once a year for the past several years. And I, I saw a documentary ones, I don't know if you're like me, but like you see one documentary and then you start looking things up and you just kind of go like Google search crazy. And for like a day or two or maybe even more, you'll just, can I just jump into a subject? And so I saw this, what was the name of the documentary? Fat.
Speaker 2: (02:59)
Sick and nearly dead. I was going to say short, fat and dead or something. But it was, it was that sick and nearly dead. And they actually had a second one too. And it was about this guy who was overweight and unhealthy. He started fasting and he, he fasted 30 days in New York and then drove around the u s for the next 30 days or something, but it got me started into this juice fast team thing and I've been doing it at least once a year ever since. It makes me feel really good and like the first four days kind of really suck because you're cleansing yourself of everything. Mostly Caffeine, you'll get it like caffeine, headaches and withdrawals or sugar withdrawals. If I don't have much sugar in my diet, I try to stay away from sugar, but I do admit I cheat a few times because my husband is like the best barbecue or on the planet and he'll make a brisket or something which doesn't have a lot of sugar or anything in it, but when he makes his ribs, oh my gosh, I just, I love ribs and so I'm like, okay, I'll bring my past or if he makes cookies, he's got a Traeger grill and he absolutely loves it.
Speaker 2: (04:08)
Like he got this grill, I got him this girl a few years back for Christmas and he started sleeping with the menu with a cookbook on his chest every night he would read like a little kid. It was so cute. I was like, look at them with this. And now all these years later since he's got his trigger, he upgraded to the biggest best disc model and he is like the grill master. He's amazing. The food he cooks on the grill is crazy. And if I ever thought about going vegetarian, he would be the only reason I wouldn't because I could not give up the way my husband cooks. It's great. But anyways, I got into this juicing thing once a year and after the first week or so you just start to feel great. It really cleanses your system and a macro nutrients start healing everything in your gut and everything runs really great and you feel super energetic and your face lights up.
Speaker 2: (05:02)
And so I do it at least once a year, but I picked the wrong time to do it because Maria was having her going away party. So I got to miss all the great food that she had at this party, so that was kind of sad. I was like, oh, that's sad, how to cater and I missed it. I'm watching everybody eat the canola and all the appetizers everywhere and these big juicy burgers, but it's amazing all the stuff that's going on in the real estate market out here and I wanted to tell you guys to, a quick story about a friend of mine. Now if I'm your friend, you're going to love me or hate me because I'm going to, I'm like a lioness with my friends. I protect my friends. I get very passionate about whatever's going on in their life and I have a very dear friend of mine.
Speaker 2: (05:53)
Her name is Toni and she has a property down in Tucson and I rent one of her back properties. We have a BMB out of the casita there, but she has a, the front property of one of her places was a two bedroom. She was turning it into a three bedroom and she was having somebody do the work on it and poor Tony, like I plowed in there and just took over. And so this weekend was the weekend. Was my friendship going to survive my plowing her over or not? And I survived. Yay. I still get to be Tony's friend and Tony and I, we've done businesses together. We used to do an MLM together and travel around and I would do the business portion of it and she would do the health portion. She's really into health. But anyways, she has this house, she had hired a contractor to fix this house and she was adding a bedroom, putting, you know, putting in a wall, raising the floor up, redoing the kitchen, the bathrooms and everything and getting the whole thing done.
Speaker 2: (06:58)
And she asked me to come over way back before Thanksgiving and stuff before the holidays and said, you know, how much do you think it will cost to Redo this house? And I walked through with her and I showed her and I said, okay, that'll probably cost about 30,000 to get this all done to, you know, add the windows and doors and things that you want to do and put the walls in and raise the floor, do all that stuff. So she got a bid from this gentleman who had been her contractor for a long time, for 10 years. They had been using him as their maintenance man. So He'd fix leaks in their pipes and you know, change out the filters and if anything broke he would go over there and tinker with it and fix it. And he was a, he's a really nice guy.
Speaker 2: (07:42)
I'm not saying he's not a nice guy. He was a nice guy. He just wasn't a builder contractor. He was more of a fix it guy contractor. And he did get his license. They hired him and thought this was going to be the man to fix everything up. So weeks go by, it's after Christmas, it's into the January, I think goes even towards the end of January. And she brought me back in. She said, you know, I need your help. Can you come back down to Tucson and take a look at this house with me? And I said, yeah, sure, I'll drive down there with you. We drove down and we, it was the same house as we're driving down, it's like you know, an hour and a half down there and she said, we've given him already 23,000 of the 28 and I said, well you must be like nearing completion then.
Speaker 2: (08:29)
And she said, no, he's out of money again. And he's asking us for more money. And I said, that doesn't sound good. I said, you know, when we pay a contractor we usually pay half up front or, I mean there are several ways you can do it, but you never want to be giving them all the money before the project is completed. You want a nice chunk of money there, left at the end so that they complete it. We call it blue taping. We go through and blue tape everything and just spotlight all the little things that need to be done. Maybe paint chips or I don't know, whatever's the last minute details that need to be fixed. And then you cut their check one, everything is done. So you have a nice chunk of money at the end there. So when we walked into the property, I knew there was a problem because the place, nothing was done, not one item on her list was completely done and everything that was even half done was done in a really bad half ass manner.
Speaker 2: (09:28)
I mean it was just terrible. And when I walked in there was a window they had put a window in and I told her, I said, it's going to be really easy. You just, they get a diamond soft, cut it out, you know, put a header in there and then slip a window in and it's, it's relatively easy to put it in because my dad was a contractor and we flipped houses all the time. So for us, yeah, for a contractor it's easy. I mean if you're, you know, at home and it's not a DIY project you want to do, right, it's not, it's not a weekend warrior project. This is something you get a contractor to do. So this guy had put a window in and the framing of the window was about an inch outside of the wall of the house and then to fill it in, he put a one by four in there and just kind of slid it.
Speaker 2: (10:12)
So if it rained it was going to go down into there. And then I was looking, I was like, all right, let me slide this wood. And I slid and looked and I'm like, I don't even think he put a header in there. And a header is if you know anything about houses, there's just picture a big beam above any doorframe above any window. And basically it just carries the weight of the house away from the frame of the door or the window so it doesn't crush the door or window and it just carries that weight across. And usually they're really big or you can have a metal. I mean there's all different kinds of headers, but he didn't have any headers in there and he had cut a doorframe out, didn't have a header there. I mean there's just a lot of problems. And I said, stop, stop, stop, stop.
Speaker 2: (10:56)
And I said, this is going to test our friendship. And she said, what? And I said, well, this is it right here. This is testing our friendship because I'm taking over, because honey, you got more than 20 some thousand dollars worth of work left to do in this place. I mean, there's so much work to do in here and we've, we're going to have to undo all this stuff. He had glued one shower pan on top of another shower pan. I mean, it was a mess he had titled before he did anything. I'm one of those people, we don't do the flooring until, you know the end. And it's one of the last things we do. But he had done the tiling first and he didn't ever finish any room. He had titled The middle of the rooms, but never around the edges. So I'm not sure if he didn't have a wet saw or what, but it was crazy.
Speaker 2: (11:45)
And we, we were using the tile that looks like wood planks, so it's tiles great in the southwest. I know a lot of people don't like tile, but when you live in the southwest, when you live someplace hot, you really want cool floors. It doesn't behoove you to have the wood out here because we've got so much sand and dirt. So we don't have a lot of real wood floors. I mean, people do, you can, you can get all kinds of stuff. But out here we just kind of, most of us go with tile, especially if it's a rental property, just wears better than anything else and looks better. It's easier to clean and maintain. Anyways, I took over the project, they were like, okay, this is how much we have left. And I said, well, tell you what, I'll just go in with you and have you ever watched the profit?
Speaker 2: (12:28)
I, uh, Marcus limonus them. I went in there and I said, but I am 100% in charge. I will cut you this check, but I will, I will be 100% in charge. So I went in there and took it over. And um, when I went in I said, you know, let's knock out this wall. It's knock out this wall, we're going to take the kitchen, we're going to Redo it like this. And I really went to town on it and made it look really nice. And so yesterday was the day where we all drove down there and took a look and she hadn't seen any of the pictures or anything. She just got back from a trip and she walked in and I was like, oh please let her love it so that she still loves me as a friend. And so she did. She was hugging me like, oh my God, this is beautiful.
Speaker 2: (13:14)
Like this is exactly what we need. But the deal was to w, and this is why I bring this story up, this discussion that we had coming back home, you know, driving back from Tucson last night was look, we can't sell this property like a regular residential property. And that's okay because this property is right next to the university down in Tucson. And if you have any rentals by the university down there, you can get, depending on your property, what your property looks like and the, the shape of the property. Depending on that, you can get anywhere between, you know, four 50, I think the average is about 500 but you can even get 600 and, and a little bit more per bedroom. So if the place is nice enough now this place we walked it, I mean we rocked it really nice. And so I said, look, you'll be able to easily in these three bedrooms in the front, get 600 per bedroom to rent it out.
Speaker 2: (14:12)
And we bought the BNB in the back and the BNB is pulling in, um, last month where like the BNB pulled in like $3,300. So since we put it in there, it is just gone up every single month. The average probably over or were the year or the average that I would put on there would be probably about 15 to 2000 a month. I said, so you take that and what you can pull in from the front and you've got well, well over $3,000 a month for sure income that's coming in on this property. So there's a way to sell a property at a cap rate and that is going to be the way you guys want to look at a property too, not just when you're buying it, but when you're renting it. What profit is that property going to bring you? What value does it have to now back in the day, and I love this back in the mid to, well I guess it was before the crash, so probably in 2003 four five around that, that time, and actually even before maybe the, even the late nineties we used to have a 10% ratio.
Speaker 2: (15:24)
I know you can't use that now, meaning we would take 10% of the value of the house and if we could rent it out for that much, then we probably could cashflow it. You could take a house, for instance, that was $100,000 and if the price of the house was a hundred thousand you should be able to rent it out for $1,000 a month. That was the old way. Now those ratios changed throughout time and it's not the same anymore. I like keeping the interest rates. I was, I was cheering Trump on when he was saying, let's keep these interest rates low. We want the interest rates low because more and more people can buy homes and sell homes and being into real estate the way I am, the lower the rates the better. But I'm going to tell you there's no secret. We were buying properties back in the day when there were 10 12% loans that we were paying on a rental properties and we were still cashflowing those properties and you can too.
Speaker 2: (16:22)
So it's not just the interest rates that make a difference when you buy a property, but I want you to know that the money you make on a property is when you buy it. It is not when you sell it because there's a lot of hope and prayer and stuff that goes in. Well, I'm hoping that the prices will go up or I'm hoping that the interest rates will stay low or I'm hoping there's no hoping when it comes to investing, you make your money on the buy. When you buy real estate, that is where you make your money. Now you can say that that's not necessarily true. If you're flipping houses as a flipper, I can tell you, yes it is. You make your money on the buy. If you don't get a good price, even a low price, then you're not going to have any leeway, any room in there.
Speaker 2: (17:11)
When you fix up a property and then sell it, you won't have very much profit left to be able to give people equity because people want a little equity when they buy a property. They don't have to have a lot of equity. You can sell at the top of the market and there's a lot of ways to do that and we have done that. We don't like to go in and be the low hanging fruit. We've liked to be the top, the top of the market when we're flipping houses, but when we're buying investment properties, it's a lot different. I just want you to know and keep in mind, you make your money on the buy always. Okay? And you're going to do the same thing when you're renting the property, how much you rent that property for it is going to make a huge difference in how much money you can make and how much money you can afford to lose.
Speaker 2: (18:00)
If it's an area, if you're, when you're first getting started, you don't know much about the area you may have, you know, unless you have a friend there or a very close family member who has rentals in that area, who will share openly their information, but the cap rates anybody else gives you, besides the ones you would do for yourself, they're all going to be lies. They're all going to be inflated and you don't want to use them. You want to find everything yourself. So when you go to look for a property, the two big things are definitely going to be the interest rate, right? And your cap rates, how much money you're going to be making on that property, what you can make off of it, what you can rent it out for. So you're going to have to know what the prices of the other airbnbs and your area are.
Speaker 2: (18:50)
You're going to have to take a look, but that is a really difficult thing to tell if you're not using a service. And there's a bunch of services out there that can help you like air DNA and there's a bunch of others. But the reason why you want to use services like that is for instance, take this, it's like looking at the prices of a bunch of houses that are out there for sale and then what they're going to really sell for. They never sell. I mean sometimes they might, but most of the time they're not going to sell for what they're listed for. And so what you see, if you were to go search up, let's say you're in Nashville and you go search a bunch of properties that are in Nashville, you pull them up on airbnb or Vrvo or wherever. If you're using homeaway or something, you, you pull up turnkey and you put in Nashville and you're only going to see the properties that are still available, right?
Speaker 2: (19:46)
You're not going to see the ones that they rented out for and you're not going to see how much they rented them out for. But what's cool about today is there are a bunch of guys out there and their math geeks like me and math geeks are great because they love all these algorithms and they've created a bunch so that they can figure out exactly what these, you know, the demand is exactly what the prices are and they can tell you in this area, this is what you can expect to bank. Now, Airbnb has that. When you first go on Airbnb and you say, Hey, I want to open an airbnb and you put in your city, so you put in Nashville again and it says, Hey, if you've got a one bedroom in Nashville, you can probably make this much money. Well that's true and not true.
Speaker 2: (20:35)
So who is making that much money? How many people are making that much money and what do their properties look like? Because the competition now is getting deeper and deeper. Like is it's crazy out there. It used to be that there weren't a lot of people in the vacation rental market, but that kind of changed with Airbnb, right? There was a lot of us doing stuff and a lot of time shares in the beginning, right? Very few people had a BNB property because nobody used the internet. There was no internet. This is back in the day when we had travel agencies and stuff, people couldn't book their own airline tickets. So when that changed and everybody started playing online and stuff, and then when airbnb came about, it was only about rooms at first, just renting out a cheap room. So you could stay somewhere. So it was more like a hostel, you know, like you're just staying and you just needed a bed, a place to crash.
Speaker 2: (21:36)
But then more people got in and they're like, oh, I'm going to make it more than just a bedroom in my house. I'm going to make it an entire little guest house, or even an entire apartment. And then you know, it was fine for a while to just have it very modestly furnished. So just the essentials, things that you needed, some pictures on the wall and it looks really good. It looked clean and it worked, but then all of a sudden it got, I don't know what we would call it. It got Pinterest crazy. I always call it Pinterest because everything Pinterest perfect is kind of funny because to me, I mean there are people who are Pinterest perfect and it's like real life is not Pinterest. But when you look at pictures on Pinterest, it always looks perfect. I'm saying a lot of P's here.
Speaker 2: (22:25)
I'm glad I've got this thing in front of me because Papa Pinterest, perfect. So Pinterest perfect properties are the properties that have, I mean they're just amazing when you walk in and it looks like something out of a magazine or Hgtv or just one of those travel channels where everything is out and out, gorgeous. Those guys are out there now and more and more as people come into this market and start offering up their properties, they are upping the game and there's a lot more competition. So you really have to know where you're going to stand. So when you're looking at how much income can come in for your property, you also have to look at the type of property that you are offering. Is it a low end property? Is it a moderate property or is it one of those boutique properties? That would be the Airbnb plus type properties where it's absolutely drop dead gorgeous and you can get more money for it.
Speaker 2: (23:26)
You might not have the full occupancy at 100% all the time, but the occupancy that you do have is more than cash flowing for you. It's making what you need to run your property and then cashflow, a nice chunk of change above that, so you really have to know going in, you have to have a plan and say, okay, this is what I have the money to do. Because honestly it's, it's got a lot to do with money. If you're going to be a boutique on an Airbnb plus type situation, you're going to have to have quality linens, quality furniture, all your amenities. I mean, they're going to have to be above par and so you're going to have to have a little bit of money to do that. You may even want to hire an interior decorator. You're definitely going to want to hire a professional photographer to stage that property, but you're going to have to have it accented in such a way that it's just above par in every way and that is going to cost you a little bit more money.
Speaker 2: (24:32)
If you don't have that much money and you just want to go the moderate fields, then know how much does the moderate field put in. Now there's a lot of times, like if you're on wheelhouse, which is a service that I use, wheel house has a setting and it tells you over on the Sidebar, you can set it what you want to make. Do you want full occupancy all the time or do you want to just have it booked on the weekends or what type of occupancy are you looking for? And you kind of have to judge the type of property you have inside that little, that little cliche area. You'll know by the price that you have. And then that range will also tell you too that we're a high end property. We want more money than the average guys. There's a little button for that because we're a high end property.
Speaker 2: (25:21)
So no ahead of time what you expect and if you're a low end property that's okay. Own it. I mean if you don't have much money to get started and you're starting with furniture and amenities and things that you got at a garage sale, don't feel bad about it. There's a lot of people who need that and they're willing and looking for those properties that are between $30 and $70 a night. And so you can make a lot of money on that as long as you're keeping that property clean. Okay. Cleanliness is a huge, huge thing. Regardless of what level of accommodations you are providing people you want to keep, your property's clean and if you're doing it yourself, that's fine, but there's no, I've seen these videos on youtube where it's like how to clean your property in three minutes, you know, between guests?
Speaker 2: (26:15)
No, no, no. Oh my God, I've never ever stayed at that persons at that person's property because I don't want my property cleaned in seven minutes or 30 minutes or whatever it is on that thing. Three seconds. It feels like this is not a contest to see how fast you can get through there. I mean, obviously you have to have it turned well in the, you know, in a good amount of time, but the deal is not to skimp on essential things. You need to clean under beds. You need to make sure that every single time you're changing all the linens, all the towels, not just wiping down seats with a cloth, but you want to, and I'm talking about toilets, seats, you want somebody to scrub your toilet down and wash it down. You want the sink scrubbed out, you want everything wiped down.
Speaker 2: (27:11)
This is crazy like to go through something like that and especially if you have kitchen sets, our staff goes through the kitchen to make sure that the dishes are are done, that everything is sparkling clean because you know, who knows. I mean, I'm not going to be gross here, but I've got dogs. What if somebody just had their dog lick of a bowl and they set the bowl back in there? No, you really want your place to be clean and this is not a contest to see how fast you can clean it. Those things really bugged me when I see them, I'm always like, oh my gosh, this is so disgusting. Oh my God, I don't want to stay there. I want to stay in a place that's nice and even if it's a cheap place, as long as it's clean, then I'm okay with it.
Speaker 2: (27:52)
I'm not too above that, but I don't want to stay in a dirty, gross place if I walk in someplace. Oh Man, that reminds me, and I could probably post pictures of this. Okay. My friend Tony, she has a new granddaughter and so her son lives out in Chicago and she got to be and be there just recently, and she called me and she said, Michelle, you got to see this place. It was disgusting. I mean, there was stains on the sheets. I'm not even kidding. She's got pictures of it. The towels had all this hair on them from some kind of animal or cat or something. They sink was disgusting. The sink was dirty in the kitchen. It had all kinds of stuff and there was still garbage in the trash bin. She just got there and the place, she said it, place smelled it and I was like, no, no, no, no.
Speaker 2: (28:41)
You need to leave. You need to walk out and you need to call. Airbnb, and this is what I'm talking about. This is one of those people who are going, let's see how fast we can do this. Let's not even change the sheets. I'm not even going to empty a garbage can or clean out the sink or anything. That's probably the guy who watched that video and he just took it to the next level of disaster. Don't be that person because he just got a bad review and he got his money taken away because airbnb gave her her money back. And rightly so. Rightly so, because if you're an airbnb owner like I am and like the people that I know and the people who listen to my podcast, I know that you want to put a quality product out there. Why? Because you want people coming back to you year after year after year and I'm going to tell you something then I'm sure if you read any marketing books, you know it is so much less expensive to keep the customers that you have then to go out and create new ones.
Speaker 2: (29:40)
All the, so we, we come up with ways all the time to collect our customers emails and their addresses and their names and all kinds of stuff. We have all kinds of ways. We have a program where if they stay 10 nights, they get another night free with us. I mean there's a bunch of stuff that we do to make people come back to us. Why? Because if we can keep them coming back to us, we don't have to keep going out there looking for people and then they rent through us and not airbnb and we can keep all the money. Right? So here's the deal, you guys, you have to create a quality product and quality service and you have to raise your standards above everyone else because that is the only way you're going to stand out, stand out above everyone else. So that kind of reminds me of a story then I'm reading, I'm reading a book this week called talk triggers by Jay Baer.
Speaker 2: (30:36)
Jay Talks about word of mouth advertising and it's not exactly what you think it's going to be because most people think, well, you know, just getting people to talk about your business is going to be easy. If you're a restaurant tour, you know people, you can just have great food and they're going to talk about your restaurant. That's not true, and Jay said it's not true because they expect you to have good food. When you go to a restaurant, they expect you to have it. It's going above and beyond that. Make people truly talk about you. Most of us think, oh no, just I'm going to be the best of my, my field are the best in my area and people will talk about me. No, they're not. They're not going to talk about you unless you go above and beyond and give them something out of the ordinary.
Speaker 2: (31:24)
He used examples like the Westin hotels. Western first came up with this great idea that they were going to give you this wonderful sleep experience. They were going to spend tons of money on new mattresses and bedding and pillows and stuff to give you the most amazing nights sleep that there was, but then all the other hotel chains started doing the same thing. They just gave it a different name and everybody was spending more money in upgrading on, you know, their mattresses and their pillows and their sheets so that when you went in you got that same experience. That was something that everyone could duplicate. They couldn't keep it just in their niche. They couldn't keep it just so that everyone would be talking about them. Everyone just did the same exact thing, but another hotel chain, the double tree by Hilton, they bake fresh cookies for you and I forget the number.
Speaker 2: (32:23)
It was like in the millions. I mean it was a crazy, crazy amount of cookies that they have baked warm, fresh cookies that they bake and they have available 24 seven down in their lobby and I've stayed. I know this is so bad. I've stayed at the doubletree simply to get those cookies. We had that an event going on in Scottsdale. My husband asked me where it was and I think it was a rich dad event because we used to do a couple of rich dad events out there and clever investor. I'm Cody, he does his out there too, and we were, we were like, well, you can go home every night because I mean I don't live very far away. And I was like, dude, it said the double tree. I'm getting a nice room, right? Something by the pool and I'm going to have myself some cookies every night.
Speaker 2: (33:05)
And I did. I went down there and I got cookies all the time. I'm like, hey guys, can I get another one of those cookies? Like sure, Mrs. Russell, and they did the hand me, their cookies are amazing, but people love the double tree. Why? I love the double tree. I still remember back in the days when I was a travel agent and they had the big furry robes, they had the big furry robes and the slippers and now they've got the cookies. Come on you guys. That's what you remember. And you really get to love your chain and be, anytime you travel you're going to be loyal to it. And that's the kind of loyalty you want to create with your bnb. You want to give your clients something special, something over the top. Now a lot of us, we leave a bottle of wine but a lot of people leave a bottle of wine.
Speaker 2: (33:54)
But I saw this one lady and she was making cookies because the BNB was actually in her property and she was making these cookies and leaving them for her bnb patrons. And so the guests would leave these wonderful pictures of an empty plates and one even let this big long explanation about why you can't have a place. You know that your has one bed that you know, two people are sharing but leads three cookies. You really need to leave for cookies. Said that there's the, you know, that they don't have to fight over them because you could cause a divorce. The great taste of their cookies and stuff. I mean the, the, it was really funny. The responses that they got from these cookies were amazing. So if you do something special, an added touch and it has to be related. There's a guy in New York City and he is a key locksmith and when people get locked out of their car, locked out of their apartments, he goes in and he, he does this but get this, this guy has the highest ranking on Yelp than any other business in the city of New York.
Speaker 2: (35:01)
Any other business and it doesn't matter. It could be car. He's got the highest ranking of any business period in New York City. It's because he does one extra thing because when he on luxury house for you, when you're locked out of your house and he does your keys and he gets you in there. Then he says, you want me to do a really quick security check? It's a service that I do for free and he goes through and he checks the security of your entire house or apartment for you. Does this thorough, thorough check, right, and people love it. This added bonus. Here's a way you can make yourself and your family safer. What a great way to go above and beyond what other services do. And so people rank him really high. But the example that Jay gave was you can't trade the two off.
Speaker 2: (35:52)
Imagine the hotel, you know, walking you to your room and saying, hey, would you like us to do a security check of the hotel for you of this room? And people would be like, yeah, maybe if you need to do a security check, I don't want to stay here. Right? Maybe, maybe that's off. Or if he said, um, if the, if the locksmith guy said, hey, I've got some fresh baked cookies in my truck here and my locksmith truck, what'd you guys like? Some fresh baked cookies? You'd be like, no, that's just weird, right? So it has to be something that pertains to your business, something that pertains to you. And if you've got time, if I literally suggest you read Jay's book triggers book has really, really excellent, I'm not all the way finished with it, but I'm super, super enjoying it. That will give the audible the plug because if you go to audible, trial.com forward slash s t r revenue, then you get a free book and you can make a Jay's book and you get a 30 day trial of audible.
Speaker 2: (36:54)
So remember that we've got that nice little thing going with audible and thank you audible for sponsoring us anyways. You want to do something that puts you in this amazing spot in your market and brings people back to you again and again and again. Okay? And you want to create something special that it has something to do with your market. So cookies do have something to do with us. They make us feel good. They make us feel like we're at home, right? So a cookie thing would be a really great thing. And now obviously you can't do it with every property that you have. If you're, you know, say your property is in a different state or different country than you are, but maybe you can, maybe you can figure out a way. Maybe you can leave fresh fruits, like if you've got a place in Costa Rica or in Panama and somebody comes to your place to stay there and you make sure that there's always fresh flowers and a big bowl of fruit because that's what they're known for.
Speaker 2: (37:49)
Or you know, just something, something really cool, something neat that pertains to you or pertains to that location. I happen to believe it should be something that has your name, number and website on it. Why? So they can get back to you so they can keep coming back to you over and over again. That's why we made the stay 10 nights and you get a night free. There's so much you could do with that. First of all, people love gamification. Gamification is when you make something more like a game, right? So Starbucks does it with their apps, but there's a lot of companies that use rewards or things like that, and that's called gamification. If you can put some kind of gamification into your business, it's amazing. So stain 10 nights and getting one night free is fun, but you know, it'd be even more fun.
Speaker 2: (38:43)
What if you use those free nights to somehow have other people promote your business? Right. So let's say you had some kind of promotion going where if someone recommended you to somebody else and that referral brought you a booking, then that person would get two nights towards their 10 nights and you know they could get all 10 nights filled by giving you five other bookings. Don't you think that five bookings is worth one free night? Heck yeah. Heck, Gad is so you get, I mean, you could do promotions for anything guys. Now, a lot of the stuff I leave in my bnb or that I make my special thing because I don't get to make cookies for everybody, but I have these bookmarks that we leave on all the beds. There's books everywhere because I'm a book reader, so I leave books out constantly. People are always reading the books when they go and sit by the pool or something.
Speaker 2: (39:48)
There's always time to read. But bookmarkers they can take home bookmarkers have my logo on it. Bookmarkers make them remember me every time they opened a book. Bookmarkers take them back to my website. Bookmarkers remind them that there's some kind of game of vacation going on. I want them to constantly see me. You know, you can even do key chains. I've seen people do key chains. I've seen, I've seen these cutting boards. I mean people do a lot of different things. It just depends on how much effort you want to put into it. But I suggest you do something that's going to bring them back to you and something that they can see over and over and over again and do your best to collect these names, numbers, and emails. Put them on your email list so that you can send out, you know, some kind of weekly fun thing.
Speaker 2: (40:38)
Maybe a picture of people who are staying there. Some kind of fun thing that happened. A really cool note that someone left pictures of you with your cleaning crew, any kind of thing like that or monthly newsletters. Keep them in touch with you. You want them thinking about you constantly, right so that they want to come back and stay again. They want to come back and stay with you. That's that, that little touch. You don't have to build that list. You didn't have to pay for. When people are marketing online, they pay tons of money so that they can collect a new client. Well, here's the deal. You already have your guests, they're staying at your place. Let me give you an example of this to Brendon Burchard is an author, a book author, and he's really amazing. He has this promotion that he did and I don't, I'm not sure if he's the one who created, but it's brilliant as an author selling on Amazon.
Speaker 2: (41:37)
When someone buys your books, you have no idea who bought. The only person who has a clue of who bought the book is Amazon. They're the only ones who knows whose credit card was used and where it was shipped. You don't get to know that. You get to know how many books were sold. Right, and the books sold on Amazon. They go towards the New York Times bestseller lists. So if a million books are sold on Amazon of yours, you know, they can tell. There's a verification that says, yes, a million books have been sold. And so you can be a New York Times bestseller. Now if you're an author and you have your own website and you're selling your books from there, you can sell a million books, but it won't put you any closer to a New York Times bestseller because it has to be through an authorized book, seller distribution, kind of store or location.
Speaker 2: (42:37)
So Barnes and noble, Amazon, things like that. Right? Okay. So how do you fix that? If you want to cut out the middleman, Aka Amazon, Aka Barnes and noble, if you want to cut out the middleman, you want to make a lot more money because if you're selling as an author, believe me, they take the majority of your money. You make hardly anything on those books. It all goes to the publishers. It all goes to Amazon. Um, even when you self publish, they make a lot of money only on those ebook. Kindle books do you make more money? But if you want to be a New York Times bestseller and sell on Amazon, how are you going to get the information about the people who are buying your books? Well, here's how they did it. What they started to do was send out these emails, promotions, even running ads that said, hi, I'm Brendon Burchard, author of New York Time Bestseller, book a, B, and C. Guess what book d is coming out and it's going to be your absolute favorite and if you order my book right now, I've got a bunch of free gifts for you.
Speaker 2: (43:47)
I've got this guy talking to you or this interview or this course or some kind of Freebie. Most of the time they have like three freebies underneath and sometimes they have even audio version or some kind of class with them or some kind of Webinar or some kind of something that if you are buying that guy's book, you're already a fan of theirs, right? Most of the time. So it's going to entice you and they'll say, go ahead, order your book now and then come back to this page and just put in your Amazon order number. Now they can see the order number, they can't see the name of the person, but when you go back to their page and you put that Amazon order number in, number one, they see, yes, this person placed an order and they can verify that order. With Amazon, they can't verify the name and stuff.
Speaker 2: (44:38)
But guess what? When you put the order number in there, you also put your name and your email and all this other stuff for them. So now they've grabbed all that information, they grabbed it all and all that information goes back to them. And now Brendan Burchard doesn't just have a million books. Anonymous is sold on Amazon. He's got a million people on his email list. And let me tell you something really cool. The number of people you have on your email list is a huge indicator of what your monthly income is, especially when you're marketing online. So if you have a million people on your email list, that means you're making $1 million a month. If you have 10,000 people on your email list, you're usually making $10,000 a month. If you have a thousand people on your email list, those people are making you $1,000 a month. So your email list, the bigger your email list is, the more money you will make.
Speaker 2: (45:42)
Those people like you, they keep coming back. They don't mind giving you that information and they are now a customer who's deeply, deeply in love and committed to you, and that's what you want to create. You want to create somebody who's deeply in love with you and committed to you and committed to coming back to your property over and over again. So constantly be thinking to yourself, what can I do to serve my customers better? What can I do to create more wonderful memories for them? What can I do so that they want to come back here over and over and over again? Not just one time, because guess what? Now that Brendon Burchard has those millions of people on his email list, he doesn't have to go spending money to look for new people. He's got $1 million coming in every single month and you know who spreads the word?
Speaker 2: (46:43)
I'm Brendon Burchard, all his fans. And that's literally what you want to do. It's literally what you want to create for Your Business, okay? So you want to create these raving fans with some kind of gamification that's going to keep them coming back to you. By gamification, I mean something fun, right? So think Starbucks, right? Think something like that. Something Fun that they get to do over and over again and make it fun. You're going to give them free tips and tricks, right? All the time when you're keeping in touch with them through your emails, maybe newsletters and all that stuff, you're going to make things fun and you're going to make it entertaining and you're going to make it informative, right? You want them to learn something, you know? Because there's going to be people who are like, I don't want to read these. These are stupid.
Speaker 2: (47:37)
You can make them humorous. One of my favorite stores online is this Moose jaw that somebody turned me on to. And I love to just go, I know this is so stupid, but just go to Moose jaws homepage. And they have like a scrolling line of jokes written by the guys who, who had their internet thing. And so the jokes will say, oh, they're playing a fun game at our office this week. Everybody's naming their food. This little fruit cups name is Jessica. So you just sit there and you go, oh my gosh, this is so silly. They'll just tell these silly, silly jokes. Okay. But that's what they're known for. You want to be known for something. So maybe you can use humor. Maybe you can use facts, especially if you live someplace unique. You can tell unique stories about it. So if you're up in Canada, you can talk about the lake that you're by, or maybe you're bi, you're out in the wilderness, Eh, maybe there's Moose by you.
Speaker 2: (48:42)
Um, because all of us in the United States, when we think of Canada, when we think of Moose, I'm sure there's like all these bustling busy cities just like the u s but for some reason I think that every Canadian city should have a Mousse and so like they can tell all kinds of things about it. There's a bunch of stuff you can do. Just make sure that you're doing it. You really want to keep these people. You really want to keep them coming back to you and you want to think long term. Okay, so that's this week's episode. I hope you enjoyed it. I just wanted to really quick ask you and remind you to please. If you like my show please like and subscribe and leave us a review. I would greatly appreciate it. And please go to my website because there's a ton of free gifts waiting for you there and lots of information, especially about insurance.
Speaker 2: (49:35)
If you're new to the show and this is one of the first podcasts, insurance, insurance, insurance. Also, I wanted to remind, there's someone out there that we made a flub up with your email. So I have new virtual assistants, two of them who are helping us out with all the questions and the emails that we're getting. And then they filter it all to Karen. And then Karen gives me the hard questions. Um, the ones that they can't easily answer because I made like a Q and a. So here's the easy answers for everything. And if it's not on there, just ask me and I'll do it. So there was a question about Davenport, Florida and I just said that I will answer this question. So just leave it. So the post [inaudible] was there. I could not find this email anywhere. I, I went to all my email accounts, could not find it, went to the Facebook accounts, into the Facebook groups, couldn't find it. So whoever asked the question about Davenport, please, please reach out to me again and I will do my best. To answer your question personally, guess what, everybody, I absolutely love you and adore you and I wish you nothing but happiness and success. Thank you so much for listening today. God bless you. Have a great day. Go and grow.
When you subscribe to our Newsletter, we appreciate the honor. Yeah, we know you can cancel anytime but you're still trusting us to add value to your business and we take that to heart! We'll never sell your information & appreciate your trust!