Part One of our interview with Napa Valley Chris, Christopher Young.
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[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 1: (00:28)
we're going to finish up our interview with Chris young. Chris is an amazing guy. Now this is the end of this interview and that's kind of sad because he is so much fun. I've got to know him and we've been texting each other back and forth. He showed me the video of his interview by ABC news. He's been put on TV and they've been putting them all out there. He's suddenly in the limelight and it's so absolutely awesome for him. We got to see a little bit of his properties and it was really, really fun to get to know Chris better and I'm so grateful that we got to interview him and here is the rest of the interview. But I wanted to remind you that our show today is brought to you by audible.
Speaker 1: (01:11)
You can get your first audio book for free by going to audible, trial.com forward slash S T R revenue audible, trial.com forward slash S T R revenue. You know, I forgot to tell you guys that when you go to audible, it's not always books. It can be other things too. Right now I'm listening to one of their great courses and they have these courses and sometimes they're 20 hours long, 30 hours long, 40 hours long. I mean, they are long right? But you can listen to them over a few days, several days and speed them up and they're really good. But right now I'm listening to the great course on practicing mindfulness, which is like an introduction to meditation and it's so good. I absolutely love it. And so I thought, all right, I didn't want to forget to tell you about that because the courses are pretty cool.
Speaker 1: (02:02)
So not only when you get a book do you get books and you get to build this library, but you also can build up a wishlist and inside your wishlist are books that you want to read or courses you want to take or whatever and they'll have sales and let you know there's a lot of Chu for one sales, which means that each credit is usually around $9 nine 50 so when they have a two for one you're paying about four 50 for a book. And that's phenomenal guys. I mean that really is, that's phenomenal price. So these courses like my course is great course. Practicing mindfulness is like going to a college campus and taking a course. It's a really great, I mean I literally sit and take notes while I do these and there are a lot of fun if you like, stuff like that.
Speaker 1: (02:50)
I do. I happen to like there's, I mean there's been a few of them that I've taken but I wanted to let you know that there was that there's the daily deals where the books are like two 95 a piece or something depending on the size of the book or who the author is. Sometimes they're up to four bucks or five bucks, but they're still pretty expensive and you can build white an elaborate library of books by having an audible book membership. So please do try out audible books. It will help you grow. So go to audible trial.com forward slash S T R revenue to get your free book and 30 day trial for free right now. Okay, let's finish up our interview with Chris and at the end of this interview I'd like you to stick around because I wanted to talk to you about a flash deal that we're going to have on the membership.
Speaker 1: (03:39)
We're going to open the membership up for just two days and it's coming up and we need to get you on our mailing list if you want to be a part of that flash deal because we're not opening, our membership is closed right now and it is only open twice a year, so it's not opening up until next year, but we're going to open it up for a little flash sale just two days and if you're interested in that, then make sure that you are on our mailing list. That's short term rental revenue.com you can go to our website right there and you're going to want to go to that too for Chris's interview because you'll want to see the video and that's right on the page for this episode. This is episode 66 and you'll be able to see the new station interview Chris in San Francisco, ABC news, so we have that posted in this episode. That's short term rental revenue.com if you do S T R revenue, it will forward you there. Anyway, let's get started with this interview. Chris, young Napa Valley. Chris, enjoy.
Speaker 3: (04:43)
You know cause Jesse saying by the end of next year they want to have all guests and all hosts verified. I don't know how you verify the guests and is there if you have, if you have a new guest on the platform, are there going to be new guidelines like okay, you can't book with a super host until you have five reviews or, or the verification they have in place right now for guests is very, very limited and I don't know how they verify more than they have.
Speaker 4: (05:14)
I think there would be, I think there should be a way to tie their government ID with a form of payments if they could match those two together. Not necessarily like that that's full proof, but at least it would stop a lot of the underage, we have problems here with under age bookings. Kids will use their mom, you know their their mom's name, but it's like a 17 year old or an 18 year old and all of a sudden we're like, honey, you can't sign a legal contract until you're 18
Speaker 3: (05:45)
the the the the big highest. They booked it on on visa gift cards. Yes.
Speaker 4: (05:51)
Yes. That's a huge and especially this time of year. Hello, we're in November baby. How many people are buying gift cards? It's not even going to hit somebody's radar. Oh, a grandma wants to buy gift cards for their grandkids instead of buying a bunch of guests. That makes perfect sense. That's crazy that they had all that stuff in there and that they left that evidence for you. That's nice.
Speaker 3: (06:16)
Well, well when we were down there waiting for the police, this, this one truck kept driving back and forth and back and forth and back and forth. Well like I think that might be that I'm trying to get back in the house to get the rest of the stuff because the day we were there, that was the day that they are supposed to book into the extra day and they never paid for it and we're going to give them a deal at that too. I mean maybe that was the day they're going to take the refrigerator and the dishwasher, I don't know. Who knows? There was a vehicle got driving back and forth, back and forth. We, we speculate that too. Uh, that's who it was. Yeah, I'd probably want their book back to, did the police take the book? Oh yeah, yeah. They took the book. But yeah, there's nothing we can really do there.
Speaker 4: (07:03)
Well, I've had my identity stolen before and the guy actually made them, it was weird too because I no longer can use my mother's maiden name because the guy made an ID with Michelle Kerwin Russell, which is my mother's maiden name, not even my maiden name and made an ID and it was because I live in Arizona, my husband is a doctor and his practice is here, but I was flipping houses with my dad. So I would be in Florida for months at a time, like more than half the year. And when I was there, I had set everything up for my husband here on automatic payments, you know, all the household utility bills and stuff cause he doesn't pay bills. And I'd say, okay, just every single month on this date dropped this much in and all the bills will come out automatically. And I said, just keep, I keep my accounts empty.
Speaker 4: (07:59)
If there are payment accounts, I keep them empty and I just fill them whenever a payment has to come out. I don't keep the bank accountable. And so I'm in Florida and I don't come back for months and months, but I'm down there and I'm getting texts from the utility companies in Arizona going, your SRP payment bounced, your mortgage bounced, you know, like, and I'm looking in the account and I'm like, what the hell is he doing? I ask them to do one thing. All he's got to do is make this deposit once a month, right? And so I'm like, whatever. So you know, everybody's, we're putting money back in there trying to fill it up. I don't know what he's doing, but I'm down flipping. And so when I'm flipping and I'm doing my real estate business, my real estate picks up that business, picks up all my expenses, it picks up where I stay at, pays for my BNB.
Speaker 4: (08:48)
So pays for where I'm staying and it pays for all my food and lodging and everything. It, my business picks all of that up. Whether it can be written off later, it's still an expense so I just let it pick it up. So when I got back home, he's looking at me and he goes, what the hell did you do down there? And I looked at my husband, I'm like, what are you talking about? And I go and how can you not just pay a bill? And he said, Oh shit, we need to look at that account. Somebody had stolen and I had the card too. I had my card. I don't know how they got the information, but they had my information and they were taking money out and as they were taking money out, he was putting money in. I was putting money in.
Speaker 4: (09:28)
We're just filling that account back up because it was our payment account. Neither of us are checking it because it was all on auto and for a month, this person was just making bank on thousands and thousands of dollars as it actually, I think almost two months when we got all the information, he had bought airline tickets and that was like nailed his ass. There's no fucking way he did this without using his name. I'm like, that ticket has to be in his name. So I called, um, Southwest and they wouldn't give me the information, but I have a friend who works at Southwest. So then I called my friend in Southwest. I said, here's the ticket number. Get me the name. They got me the name. I got all this stuff on this guy. I looked him up through Facebook. I did all this investigation, went to the police.
Speaker 4: (10:15)
You know, I had turned in, I had turned in all the stuff with the police department anyway, and I said, I got the guy, here's the guy, here's all this stuff. And I go, look, you can see that he's got a profile they use back and forth between Missouri and Tampa. And I said, he's going, this is the guy, this has gotta be the guy, and they're going, yeah, okay, well thanks Mrs. Russell. They did nothing with it. The police do nothing with it. I did like all these, this investigation. I was so pissed because this guy had stolen literally a felony amount of money from my account. You know? I was like, this is now a felony. If it was just a few thousand dollars, it'd be nothing. Once you hit five and $10,000 you're talking a felony. And I'm like, the police had no, they were like, eh, we'll take care of that. They didn't. He wanted nothing to do with it.
Speaker 4: (11:06)
That's why this shit happens in society is because these folks know what the boundaries are. I mean, they know that nobody's going to come after them. I mean, it's like going back to Airbnb thing, the reason why people have house parties in Airbnb because they know they can do it. They've been doing it for a long time. Yep. And no. If there's no consequences to it, it's if there's no content, it's like, yeah, we steal a bunch of cards. You know what, most people, they just go to the next car, go to the next card and nobody's catching them. It's the big guys that they're looking for and all those little guys, they don't care about them. And it's so sad because like you said, how are we going to, what? What can we do to put in, you know, some kind of some kind security that helps them and us.
Speaker 4: (11:56)
I have no problem with them checking my properties because like you said, if you're in, if you're following the letter of law, you don't care. You don't, I want to know how they're going to verify the guests. Yeah. That's going to be the challenge for them. That is really going to be the challenge for us as hosts too. We can be there for every property, especially on scale. There's no way we can have somebody at every place. I mean that's why we have where they can automatically come in, which I do want to talk to you too about your e-logs because we were talking about that before. You know we have, yeah, we have our guests check in by themselves that we, we send them the codes and they are allowed to check in by themselves. We don't want to be there all the time. So you are using what we use lodge and autumn.
Speaker 3: (12:47)
Okay. So I only know lock, state slash remote lock and same company. Jude, those do those products, do they log?
Speaker 4: (12:57)
They do have an app. You can sync your yours to an app and then the app is online and then it has like a logging system so you can set times. But the bad part of that is living in a state like Arizona, our locks go out all the time. I think it's the heat, but it's kind of weird too because a lot of the systems, the new sludge that we have that lasts a little bit longer, the batteries and everything are in the inside of the unit. So most of the time those are cooler anyway. Yeah though, you know, we're just wondering if it's a heat on the button system or like if it, that creates something. We were like, we don't know why they would go through locks like crazy. It's like,
Speaker 3: (13:42)
so, um, we use remote lock, uh, devices. Now I'm going to tell you what remote lock does and you tell me if, if, what if what you use does the same thing. Cause I mean people talk about this stuff on social media and they're like, Oh no, this one's a best. That one's a Bassett. I don't know. We've used one from the get and we're kind of at a, at a, at a VIP status with them when we have it, when we have a problem I can call an erase how long it gets taken care of. Cause they pull up our account like, Oh shit, these folks have a bunch of locks with us. So we use remote walk slash lock state and it integrates with all these platforms. Once again, this is the Mike, you know, Mike handles all that, all that electronic shit.
Speaker 3: (14:27)
Um, and when a guest books with us, a code gets automatically generated and it gets sent to their email. And then when they come to the property, all they have to do is take their a specific code and enter it in. Now on their portal, we have set up all of these parameters, check in time, checkout time. So you know, if our check in time is at a three o'clock and our checkout times at 11 o'clock, their code doesn't go hot until three o'clock and then it dies at 11 o'clock on whatever day that they're coming and going. The other thing that it does is it archives the comings and goings of each employee, housekeepers, everything. And then inside of that we can set up alerts for low battery. We can set up alerts for a low wifi. So we actually know if power goes out at a house because we'll get an update or we should, depending on how we have a lock set up to do that.
Speaker 3: (15:29)
But you know, if we've got a low battery status, it'll notify us. I haven't notifying me personally via text. Whenever we have a housekeeper, we're sitting here and I just got a deal here. We see. Yeah. There you go. So, um, I've got to set up to where I can see the housekeepers movements at all time. I know when they're in our building, I know when they're in our properties, it's just one of the things I have set up. I mean, I could set it up to where I could watch if Becca or our manager were in a property. I mean, I can, I can watch the comings and goings. I can see when a new guest comes in, can see that. If I want to see that, I don't know how these other devices work. I don't know how their systems work. I know there are some out there where you have to ask the guests, download an app and all this bullshit.
Speaker 3: (16:22)
I'm not doing that, you know? Yeah. I want to make it the least impactful as possible for a guest to stay with us. And if people think that asking somebody to download an app to get in their property is not impactful and it works for them, that's great. I'm not doing it. We're not going to do it here. The one thing I do like about remote locks slash well here, what I will say about remote lock is our customer service is fucking terrible. I will be, I will be honest. Their customer service is nice because you've got so many, you said it's still fucking bad there. They struggled for a while with the product. They're honing the product. When I put a a unit on the back door of our, of our building here, our operations center, I put a full commercial unit on. Things worked flawlessly.
Speaker 3: (17:12)
It's like a Sherman tank, can't mess it up. That new one we just brought online, I put their more robust device on that one. We had a hiccup with one of them. Had to send it back. They got me another one really, really fast, but it was still a problem because their customer service guy just fucking quit and then I was an ether for three or four days. I had a regular door knob on there with a lock box. They've been around for a while. They're still experiencing growing pains, but like 95% of time they're not an issue. The one thing I do like about that is that it does archive all the comings and goings because I, I had to defend a $19,000 issue and I defended it with the comings and goings to all of our doors. Yeah. I had a, a three inch binder with I think 410 pages of data in it and I defended it with the comings and goings through our doors. So that's something a lot of people don't think about. They don't think that far down the road. There's a lot of single property operators and they want to get somebody in through a lockbox. You know, if you're gonna run at scale or, or you want to protect yourself, you know, there, there needs, there needs to be a shift in thinking of autumn does,
Speaker 4: (18:29)
I mean, and keys get lost and they forget to put the keys back and even, you know, the leave and take them with, you're like, okay, well just leave it there and the keepers will put it back. It still gets lost
Speaker 3: (18:41)
last. You really have a legal obligation to change all the damn locks [inaudible] yup. And that way there, you know, I mean, you don't even have to, if you're, if you're going to be a host and you're still gonna meet people, just having an electronic lock of some sort on there. And I mean, people can run their businesses how they want to, if you're going to be operating this space. I agree. 100 remote needs to be different. You can not be running the same code gassed up or guests up for guests. Then there's, there's some people that operate at scale that do that. Then they like change a code every week and like, Holy shit. Are you kidding me?
Speaker 4: (19:17)
Yeah. They go, Oh, well we've run these same ones over and over again. I'm like, Oh, that's not safe.
Speaker 3: (19:22)
So what happens is a guest that stayed there three days ago and they're still happened to be in town, maybe another accommodation, they forgot their socks under the bed. They just come into the house when they want to. Yeah.
Speaker 4: (19:33)
God, I would just imagine that. No, no, no, no. That's why I say I go, no you can't. You have to have good locks. You really do. You have to. This is a business to people who don't treat it as a business. It's a business. And you need to think of it always as a business. You need to protect yourself with LLCs and entities and proper insurance. I mean you have to treat your business as a business. And if you eff around anything, even in your bookkeeping, I watch people and the mistakes that they make. And I'm like you're making the most basic mistakes that could cost you, costs you just tons and tons of money because you're, you're not thinking ahead. You're not treating it as a business. You're treating it as a hobby. And when you treat something as a hobby, bad things happen and you'll get audited. I go, those are the two things that will happen when you treat your business as a hobby.
Speaker 3: (20:28)
Well, you know there's, there's enough people out there in the space that are in these, um, on these, in these Facebook groups. And I see a lot of it cause cause we operate in the wholesale space too. I see a lot of it there too. And Neil, they're like well you know, should I be operating in a Corp or an LLC is you have to be asking then you probably shouldn't be operating in this space at all. And they should I should I have my house in a corporate LLC? Yes. I don't care if you live in it or you don't live in it. If you're going to be operating it, everything even got to protect your assets, you're going to be an onsite host. You have to
Speaker 4: (21:07)
well and think, think even of Airbnb most likely. I'm absolutely sure that in every single country and probably in every state that they operate, they probably have a different LLC. They probably have one corporation and you know, and an umbrella Corp that owns everything. Just like Pepsi. So you know Pepsi owns taco bell and it owns KFC and it owns Doritos and it owns Pepsi and all of those. If one of them were to get sued, they don't want the rest sued. So definitely there's a parent Corp and other corporations underneath that you need to do that for your businesses. You need to have all these different layers and levels of protection for yourself. And it's a great way to save on taxes because especially with what you do with your fixing up and, and you know the properties and you're doing the renovations for them and then you're running the BMB.
Speaker 4: (22:03)
Imagine having both of those liabilities, number one in the same LLC. You would never do that. You wouldn't even think about doing that. But if you were making one, let's say the rents on your real estate LLC were pretty low and you're paying low taxes cause you had a lot that you could write off because it was holding LLC, holding real estate and your income on your BNB was getting so much that you were just paying a bunch of taxes, raise your rent, raise your rent and move that income over to your real estate. And that way this is going to pay lower taxes and this already has the money that it can pay off. I mean, people don't realize there's a bunch of different ways to do stuff. Legally. You're doing it legally.
Speaker 3: (22:49)
Well, the, the, the issue is they don't understand it so that, so they think they're doing it illegally or they think they understand it and they do it illegally. Very true. Very true. What's your opinion of where Airbnb will go with requiring insurance on all accommodations?
Speaker 4: (23:07)
I think that would be an excellent thing because that protects the guests as well as the host. And it also lets host know there's really nothing for any new hosts. Anybody who just decides I've got an extra room and I'm going to go put it on Airbnb. They don't realize that they're, the policy that they have right now. Their homeowners policy will most likely not cover what a guest would take from them or the damage that guests could do or the harm that happens to a guest, what their liability would be to that according to their homeowners policy. They don't understand insurance. And like you said, I mean, talk about your insurance background, how that's helped you and why you have proper insurance in addition to Airbnb.
Speaker 3: (23:54)
Um, well, I mean for stars, anybody that's living under the impression that Airbnb's insurance is going to cover anything, it's, it's not going to, I mean, I've seen people in these forums and these pages you're like, Oh my God, the uh, you know, I had a guest staying and the water heater went out and what do I need to do to file a claim? Like, well to begin with a water heater as a maintenance issue. No insurance is even gonna cover that. And why you think that, let's say for the sake of argument, it wasn't a maintenance issue. Why you would think that Airbnb would be paying for that non me coming from an insurance family and being a licensed agent and having, you know, sold insurance for a period of time and sold it and very, very high risk industry. I look at things with a whole lot more logic than a lot of people do.
Speaker 3: (24:47)
And it's just, it's automatic to me. And I'll admit, I mean, you know, it is frustrating at times when when people ask silly questions, it's like, Oh my God, how can you, how can you not know this? And I had to stop and say, okay, I know this. I don't, I shouldn't expect other people to know this. It has made it easier on us here because I can, from a risk management standpoint, I can, I can see a lot of stuff just from having an experience watching bad shit happen to other people and watching insurance companies pick it up and it's like, well shit, they should've saw that. It's made life easier on me. It really has. I mean every, every flip house we've ever done, we've, you know, we've insured, there's a lot of people that are, that operated in our space like, ah, well you know, what's the likelihood of something happening? And if something does happen, you know, we can fix it. It's not that big of a deal, you know, I'll gamble with it. What a lot of people fail to realize is it's not in the risk isn't in the structure. The risk is in the liability. That's really having another human.
Speaker 4: (25:50)
When you're a contractor, it's not that your, you know, your tools are going to get stolen if that the guy's going to be fixing the roof and he falls off the roof and dies.
Speaker 3: (25:58)
Yeah. Or, or the or the neighbor's kid wanders in the site after hours. There you go. You know, and then what a lot of people don't realize is that a lot of claims aren't even paid, but if you don't have the insurance, you don't have the insurance company there to fight it for you. So you're, you're fighting out of your own checkbook. Yeah. We operate a little bit different in the wholesale space. You know, a lot of wholesalers will get a property under contract, then they'll, they'll assign the contract out to somebody else and just sell the contract. We've done that with some properties where we've never physically taken possession of them, but a lot of the wholesale stuff we do, we take this physical possession of multi-cam, figure out how, you know, what the disposition is going to be. Are we going to, uh, flip?
Speaker 3: (26:43)
Are we going to sell it to another developer or are we going to put it on the MLS? How are we going to handle it? But we have physical possession of the house. We own it. And we had a deal in 2018 bought a house down in American Canyon and it caught fire 18 days after we bought it caught fire. And you know, we had, there were tenants in there and like Oh fuck this is going to be a nightmare. But we had that insured, you know, there's a lot of people that would not have had that insured. Like nothing's going to happen. I'm not going to worry about it. And I wasn't worried about losing the structure. I was worried about, you know, what if something happened, one of the tenants, cause nobody was even in the house when it happened. Thank God. But something happened.
Speaker 3: (27:25)
One of the tenants, I mean Ryan, you went to found us negligent of it because we weren't on site, you know, but it's having the insurance background has, it has made my life easier. I mean, you know, I was a licensed agent and I think 19 years old, I worked my dad for a period of time out of high school and when I was in the repossession space, it made my life really, really easy because it's a very, very high risk space to operate in. And I think we are probably the only repossession agency in st Louis that never had a claim. I mean never had a claim, we just didn't have issues because I operated, I operated the company a whole lot differently than everybody else did. And if there was some high risk event and they put another agency on it and it went bad, it would get assigned over to us and we would usually knock it out, but it would cost them about five, six, seven times more than it would down the street. And we had a reputation that if you, I mean you can, you can do it, you can do it roster, you can do it right and we would do it right. You know, you can send over there and have a problem. You can bring it over here. And you know, we, we were making the money that we can afford to walk away from bed shit. Yup. You know, so it, it, it actually has, it actually has made my life easier for a long time.
Speaker 4: (28:48)
Well, gosh, I'm telling you that I think that's one of the things I feel bad for the people who, they just don't have any business sense yet, but they don't realize just like you said, the liability that's attached when you do this and they think that million dollar policy is going to cover everything. And like you said, it's like, no, it's not.
Speaker 3: (29:11)
No. Do you want to be an informed soul or an influenced soul? I mean there's, there are two, there are two types of people in these groups and you're either informed or you're influenced. There's influencers, you know, are they influenced, are the ones that get into the, into these groups and they'll ask a question and you'll, once again, I see it a lot in the, in the wholesaling space, you know, and it's usually about entity organization. Like, Oh, you know, do I need to do I to get my LLC? And there's usually some other guy who's never done a deal. It's like, Oh no, you don't need to do that to you have a couple of deals done. Well you have a non informed soul influencing and influence small. It's kind of an ignorance breeding and ignorance deal. Whereas it's like, okay, I need to maybe go talk to an informed soul, find an attorney, and become an informed soul because there is so much misinformation flying around out there and it is, I don't care what space you're in, it's detrimental to all spaces. And it's gotten worse in social media because you have these people get into these arenas for lack of any better terms and they want to espouse all this stuff and they don't know anything themselves. And, and you have, you know Becky, who's asking Joe, you've got Becky and Arizona asking Joe out New Jersey about organizing an LLC and it's like you need to be talking to an attorney in Arizona. No, not Joe and Jersey.
Speaker 4: (30:38)
Exactly. Yup. You, you, it's funny too because they say they think they're saving money. I'm going to save money by not having this proper insurance yet because that's just so expensive or I'm going to save money. I'm not going to go to an attorney to get these papers drawn up. I'm like, dude, you, once you do it once, getting, if you're going to do rental arbitrage, having your attorney look at a contract for you and you're going to do a bunch of places you only have to pay for at one time. You know it's like, but you need to, you need to make sure it's a legal document that it will hold water you're in wherever you're doing your rental arbitrage or if you're co-hosting, make sure that you have people check that out. Your accountant should go through your bookwork and how you're keeping things and and let you know you're going to need to do this and this.
Speaker 4: (31:25)
They'll tell you about, you know your taxes. They'll tell you about, you know you can when it comes to investing, if you're using your IRAs, it's like, no, you can't use that. I'm telling people constantly, when you go down to Panama, we were just an event in Panama and the guy was telling everybody that they can use their self directed IRAs to invest in the properties and stay there. And I said, no, no, you can not. And the guy said, Oh no, it's perfectly legal. We've got a bunch of people doing it. And I said, simply because you have a bunch of people who are uninformed doing it, does not make it legal. And it will put every penny. Even if you invested 100,000 and you had a million in your IRA, it would make the entire million. It would put the entire million at risk. The government can come in and pull all of it.
Speaker 4: (32:15)
It's like you need to follow these laws. You need to talk to the right people. You need to have, you need to have a team behind you of educated people. And don't just trust is an, I'm not trying to be mean, but don't trust any idiot that you meet on a Facebook forum. Let's fight. Don't you need to do more due diligence than that? It's, it's incredible that people trust these people and you're like, do you know that person? Do you know what they do? Do you know how long they've done it? Do you know if they've, if anything's ever happened in their lives. So maybe they've just been really lucky that no one's fallen or gotten hurt in their properties. But like you said, it's so crazy. They'll follow that advice and do the craziest things.
Speaker 3: (32:57)
Well, in the, in the Nao of entity organization where you're likely going to have problems is when you first start, when you don't know shit. These folks that, that, you know, and I'll use a whole saying on the wholesaling analogy cause it's, that's kind of a high risk deal too. If you don't know what you're doing, you're going to have these people that are like, you know, I'm going to do four or five deals and see if I want to do this and see if I could make money. And then when I get some money then I'm going to organize my entity. Well, once you get all your shit figured out and you get your entity organized, you're going to have a little bit of an acumen where you're probably not going to get in trouble. Where you're going to get in trouble is on all the deals you did in your personal name before you made money and those are going to those or they're going to crawl right up and all your personal assets. You're going to just open the door. It's like there's all my money right there on the floor. Go ahead and pick it up and take it with you
Speaker 4: (33:46)
and they can come back after you for years and years and years down the line, somebody could bury fricking gasoline barrels and you sold that property and it sold to somebody else and it's sold that now the water was poisoned and they'd come back to all the previous owners and boom, it's right on your ass. And people are like, what are you talking about? I'm like,
Speaker 3: (34:07)
and if it's, if it's sitting in your personal name and you are, you're doing it as a business endeavor. It's just your, I mean it's, you are opening the door for trouble and I mean, you know, I wish in this space that, that there were, that there were more informed souls that we're, we're helping these folks out. I mean there's, there is no shortage. Just like in the wholesaling space, I'll bring it up again. There is no shortage of people in this space that want to tell you how you can make millions doing it. Right. But how many of those folks are actually willing to open their doors and walk you into their operations and walk you through their accommodations and show you their listings and show you the books. There's probably maybe 3% and those are the real operators. Yeah. Rest of the people, you know, if, if they're not willing to, if somebody is trying to sell you a course on how to operate in this space and they're not willing to show you their listings or they're not willing to say, Hey, jump on a plane, fly to Napa Valley, you know, you know, you, you can sit down in the office here and we can show you how we do stuff.
Speaker 3: (35:16)
Not saying we do that cause we don't, we don't, we don't do courses. But if we were, I would say jump on a plane and come out here. You know, you can, you can, you can ride around with me and you can see how, you know, Becca works in the office and our, how our manager works on here and how we do laundry and, and how we have everything integrated in this deal. You know, there is no shortage of people misdirecting people in this space. And it's, it drives me on my mind because there are a ton of uninformed souls in this space. And I think if there are more informed souls in this space, the space would, would operate a whole lot better than it does.
Speaker 4: (35:52)
Absolutely. And they'd be so much safer and they can sleep at night. And the reason why we can keep smiling is because we know we're protected, that we've done everything we possibly could. And that's all you can do. You know, it's like, look, I've done this, this, this and this. What else could I have done if that homeowner comes and says, look, I had it in my listing. It was printed, no parties. We discussed it again on the phone, no parties or you know, through communications, no parties. We had a noise aware on there. We had cameras, we had the neighbors that we had talked to, the neighbors, we did everything we possibly could do to prevent parties from occurring. And then this happened. How could they hold them liable for that? Yeah. Like nobody could, they could say, look, they did everything they could. These people obviously lied and it's their fault. So this is America. So you know,
Speaker 3: (36:51)
it's going to be interesting to see how that thing plays. It looks like somebody has already filed suit against air B and B in the property owner. And I mean I feel bad for that property owner. I really do. Oh absolutely. You know, it's just,
Speaker 4: (37:03)
yeah, and loss of life is incredibly difficult to, I mean just knowing that somebody was on your property and that that happened, that has to be really difficult.
Speaker 3: (37:12)
I don't know how far into Airbnb they can get on this deal and if they can get in there and prove that they knew this was an issue and they were doing nothing about it or not even planning to an ounce of anything proactive, I mean can you imagine how much money that, that that could or welcome incredible, you know, and, and, and what happens is it just, it re then it ripples through the entire organization and new rule, you know, new policies that every, Oh God,
Speaker 4: (37:46)
more hoops. But like you said, I mean as long as we do our due diligence, I think we should be okay if they implement these policies. Like you said, I have no problem with them coming and checking out our places. That's fine with us. Whatever they need to do, whatever's necessary, it'll, it should knock out, but it will never prevent it. That's the sad part. This stuff will always happen. They always find a way. It's like they always find a way.
Speaker 3: (38:16)
I think the 7 million listings are going to be a whole lot easier to have that in the 60 million, 60 million souls. I just, Oh yeah. That is something I'm very, very interested to see. Um, I'm interested in how, you know, Chesky talks about how much of like a harness technology. I'm very, very interested, interested to see how they do that. I mean it's, if they are able to do it and do it successfully, it's going to be some really cool shit and I'm, I'm down to see it.
Speaker 4: (38:47)
Yeah, me too. Yeah, I mean too. That would be really cool. Well, thank you so much for going through all this stuff. I appreciate it.
Speaker 3: (38:55)
Not a problem. Amy, anytime you want to talk, give me a, give me a jingle, Michelle.
Speaker 4: (38:59)
Absolutely. It's been a pleasure yesterday too because I think we talked on the phone for like an hour yesterday. Yup. Yup. It's a lot of fun. I think your story is really important and people need to know that it can happen. Things bad things can happen when you're scaling a probably will happen. You need to be prepared for them. When you had Airbnb, were they giving you difficult timelines to fulfill when they were asking for? Because obviously after the property, after you realized things were missing, you went in, you did an inventory, you call the police called Airbnb and let them know did they, they wanted the receipts for most likely they, they'll want the receipts for everything that's missing and stuff. How long did they give you? Cause some people have told me that they give them very difficult timelines, 24 hours or 48 hours to present everything.
Speaker 3: (39:47)
I think they do that because they want to try to figure out if it's a valid claim or not. Um, because a lot of people are gonna say, yeah, you know, this is gone. That's gone. And they're not going to provide any proof. They're going to replace it. Yeah. I mean we were, we were throwing them receipts at everything we were replacing because we had to replace it. Yeah. Minus what we had, you know, that was like an inventory item, like sheets and towels and you know, there was a bunch of that crap in the claim and that's all inventory stuff. We have specific your blankets packet was heartbroken about them blankets there the fuzzy like microfiber blankets. Oh my God. She's like, Oh God, they took the good blankets for girl. I think she's more hard, more heartbroken on the blankets than she wasn't anything else. But yeah, I mean a lot of it was inventory items so we just had to say, you know, this is what it is. And I mean naturally we're gonna replace it cause it has to go back in an inventory for us. And I think there was maybe some of that in there. Like okay this is actually a full scale operator and they're trying to get online. And you know what I mean? It was the next day that we had washer and dryer, but we had microwave coffee maker.
Speaker 4: (41:01)
That was an orphan night. Right. So you didn't have a guest going in?
Speaker 3: (41:04)
No, no. Oh God. By the grace of God that was an orphan knife. And uh, that's one thing we tried to get them to pay and they wouldn't pay. And I get it. It's uh, I, I totally understand. I mean, you know, there are arguments like, well you didn't already have it booked so it wasn't going to be a revenue generating night. Um,
Speaker 4: (41:21)
like proper insurance too, because we have, with our proper insurance, we have loss of income. So if there's damage to a property that takes us into another reservation that a timeline that will take us into another, we're covered. Yeah. And I love that.
Speaker 3: (41:35)
Yeah. So Becca started the claim immediately and they let [inaudible] they're like, you know, we got to see this shit. And you know, Becca kept getting worked up about the police report and I saw it. I told her I was like, it's 10 business days. That's just like standard operating procedure. And then we had the fires and they turn the power off in Vallejo for three days. So it's like, well now it's going to be North three days, get the police report. So we got them everything they needed, explained to them about the police report and you know, it all appeared to be well and then you know, then they settled the claim.
Speaker 4: (42:09)
Wow. Wow. Well I am so happy that they covered that for you. That's pretty awesome. And I'm looking forward to hearing like once this stuff comes I'll, I'll contact you and we'll get together when we start hearing all the things that Airbnb begins to implement. Um,
Speaker 3: (42:29)
well we have another claim going on this party because they, there was a bunch of, a bunch of destruction down there, so we have another, another claim going. So we're going to see how this one goes.
Speaker 4: (42:38)
All right. Well keep me informed because I'd like to know it's you. I hear good and bad from all of them and I've never gone through a claim with Airbnb except for, for little things. Never for big things. So I'm, and they've always been good to me. I've never had any challenge with them, which is, you know, it's always weird when I hear people like you, they give you a problem with that. I mean, I don't, I never got any kind of challenge with it. Okay. But
Speaker 3: (43:05)
I mean this is, this is the first issue we've ever had with stuff that's been big. I mean it's, you know, other than like, you know, towel bar deal with a bachelorette party, like little things and they just pay us direct on that. I mean it's, we've got, we have two back to back, which is really unfortunate. And the same property, you know, but if you look at the number of guests we've handled, it's a very, very small percentage. So I mean, I don't want, I don't want people thinking that, you know, if there's anybody listening this, they're like, Oh, I want to get an Airbnb space. But these guys have a fucking horror story. No, it isn't like this. I mean, you know, and the negative stuff, the negative experience we've had with guests is like
Speaker 4: (43:43)
almost nonexistent. I know. We have great guests. I've had very few bad guests and um, and I think it's, I don't know what it is, but I mean, like you said, it is a numbers game. I'm sure that someday or something, but you know, I just kind of have that attitude that I'm going to get the guests that love this property and we're going to love them back as guests and do our best to be great hosts. Um, I think most people forget that. I mean this is a hospitality industry, so I have a little bit of background in hotel and travel and stuff. So that training helps me a lot because I tell people this is what they expect when they get there. Everybody know there's, you are in the hospitality industry, make them happy.
Speaker 3: (44:33)
I say it all the time and there's people want to argue about it. And then I just like, okay,
Speaker 1: (44:37)
whatever. Like, dude, that's your job. Make them happy. I don't care what they want. Make them happy. All right, well cool. Chris, thank you for talking to me on an on an off day, huh? So you're working today too, huh?
Speaker 3: (44:49)
Yeah, I'm in the office. There's never any off days. I got to go look at a house. See we can buy a wholesale house, so.
Speaker 1: (44:54)
Oh cool. Well good luck with that. I appreciate it. What a great interview that was. That was so much fun. Can you believe that this is already Thanksgiving week? I cannot even believe that. Uh, it's absolutely wild to me. But remember on Thanksgiving day we're going to be dropping a specific gratitude episode for you guys where we recorded a motto and I talking on our Monday mindfulness and it was just such a great, great episode that we decided to open it up to you. It's usually just open to our members, but I thought I would share it with the world because it was so good this time. We had so much fun with it and that's going to be dropping on Thanksgiving day. So Thanksgiving morning if you are basing your Turkey and stuffing it and doing all the morning's stuff, go and download the new episode that we'll be dropping on Thursday and then Monday again we'll be back.
Speaker 1: (45:50)
That episode is going to be with Jim. Jim is a host down in new Orleans and we stayed at his property there. We're going to be discussing the differences between hosting styles. Jim has a very unique hosting style and I absolutely love it. It's different than mine and we're going to talk about the pros and cons and just not really cons to either of them. I guess it's just different, right, so one doesn't have to be correct and the other doesn't have to be incorrect. They can both be right. So I just want you to meet him and get to know a little bit about what he does in the wonderful city of new Orleans that will be coming up next Monday and if you're interested again, I wanted to remind you that we will be doing a little short version of the prosperous Christmas group.
Speaker 1: (46:37)
There's no cost involved, you don't have to pay anything. Just go to our Facebook page and you'll see probably a link will be there for you to join and you can be a part of our prosperous Christmas. We just don't want people spending a lot of money overspending this Christmas. And so the prosperous Christmas group, we did that every year with the prosperity process and it was a paid membership. You paid $297 I'm trying to remember what it was. I think it was two 97 but you paid 297 and it lasts forever. So we still have people in the group, so we're still going to be working with those people, but it was basically to help you set up a budget, help you set up shops so that you don't overspend this Christmas and that you're not going to be stuck or gouged by the people who are there to you into buying stuff for yourself so you don't need a new TV.
Speaker 1: (47:34)
Okay? Even if the TV is 50 bucks and you got to get up in the middle of the night, don't fall into that trap. Let's all start thinking about what Christmas is really about and keep the meaning of a season together. It's about family, it's about love, it's about giving and it's about gratitude and that's what we should be focusing on. So we've got a lot of different things that we do with our families and we all talk about them when we post videos of all the fun and silly games that we do together and putting up our holiday lights and doing crazy, crazy fun stuff, but we never overspent. So we're going to have a lot of free information there for you if you're interested. If you're not, it's okay. It's not for everybody, but it definitely is a good way to help people set up a budget, not overspend, but you'll be able to go into that group and be a party of that.
Speaker 1: (48:27)
There's no cost to you. So go into our Facebook group, that short term rental revenue Facebook group and you'll see links to the prosperous Christmas. We're going to have a lot of information for you, a lot of articles, a lot of different stuff for you to go into and learn about saving money and setting up budgets. And I know it sounds like it's boring, but actually it's, it's a lot of fun because I make it fun because it should be fun. And it's all about what the season is really about. So what is this season really about? It's about love and God and just celebrating the gratitude that we feel. And I am super grateful for you. I am so grateful that you listened to my podcast and I am grateful for all the reviews that you guys leave me, the five-star reviews. They really warm my heart and touch my heart. I'm grateful for my membership and my members. They are people who are now in my life forever and ever. And I'm so attached to them again, even tell you I'm grateful for so much this year and so much every year, but I am just more and more blessed and you are a big reason for that. So thank you so much for listening to my show. Thank you for sharing it. Thank you for everything you do. And God bless you. Have a great day. Go and Grow!
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