Cashflow Diary™

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October 2019 Q & A #4: Short Term Rental Pricing and Becoming More Efficient Oct 16, 2019

Show notes

🔍 GET THE STR INSIGHTS THAT CREATED 7-FIGURE HOSTS
After managing 400+ units and helping STR hosts in 17 countries achieve $800+ monthly net income per bedroom, I'm sharing my best strategies - free.

Every Monday and Thursday, you'll get:
✓ One actionable STR automation strategy
✓ Data-driven market insights that matter
✓ Implementation frameworks that work
✓ Real case studies from our 20,000+ community

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Questions and Answers

We currently use two different pricing platforms. If I’m using a tool like Price Labs, how do I set it up so the price is good for relocation companies and change it so I’m netting all that I can from the other booking websites?

Since direct bookings to relocation companies yields the highest net profit, the ideal set up would be to have Price Labs reflect that in the Lowest price. You should also have an anchor for the Base price.

In general, because of the way things are set up and connected this way, price for your highest possible outcome. If someone books at that price, that’s great but that’s not the end goal. You want every customer to feel unique and special, and you accomplish this by giving them a personal discount code or adjusting your mark down so they see a price closer to the natural price. This way you will always be in a position to make the adjuster look good.

Is Hawaii completely out for nightly short term rentals?

No, we have active students in Hawaii right now who are doing quite well. If you desire to be an entrepreneur, you are making decisions where the outcomes are completely uncertain. The environment we all play in is uncertain and every business has regulations and changes, it’s unavoidable.

Some people will quit, some will keep going, and some will waffle back and forth and get bought out. At the end of the day, entrepreneurs adjust.

How do you price listings that require a minimum 30 day stay? What if there is a 15 day gap, do you keep a 3 month booking window?

Pricing is the most complicated aspect of a short term rental business. There are too many pieces to give a quick answer because you need to know all the variables first. The key is to always price it profitably, whatever that means for you. It comes down to a pricing strategy that accomplishes your goals and who you are trying to serve.

Do you have any tips or tricks to attract small apartment owners and property managers without actually driving around the neighborhood?

Loopnet.com is a good tool for researching an area. You can use the site to look for owners and operators that have the most listings and use that info to get on the phone and talk to them about the listings that are not yet on the site. Even if that particular realtor has nothing in their inventory that you want to purchase, they can help you get in touch with the top three property managers of that class of real estate. Once you get them on the phone, you do the same thing and find out if they have problems you can solve.

Have you ever marketed to landlords?

J avoids direct marketing at all costs. It has always proven to be too expensive and take too long, that doesn’t mean it doesn’t work, just that he doesn’t like it.

How has your faith affected your business outlook?

J’s faith has directly affected his business outlook, it’s a major reason he’s even in business. To whom much has been given, much is expected. If you’ve been given any talent, the expectation is that you will at least double it. It doesn’t matter that you succeed, just that you attempt it.

Can you offer daily/nightly rentals between monthly rentals?

If you’re in a 30 day market, probably not. However, if you’re not with someone other minimum day restriction there shouldn’t be any problem.

Small tasks can eat up all your time

Small tasks that don’t feel like they take up a lot of time can still add up when you are doing 15 of them every single day. It will also occupy your mental space. As an entrepreneur you have to understand what the highest and best use of your time. You have a responsibility to those you employ and serve, and you have to protect that opportunity. Often that means delegating.

Orlando short term rental regulations are very tight. Do you have any suggestions?

J has a very similar situation in Anaheim, the simplest solution is to just go to the city next door. It’s a bit further but as the situation continues that’s just where the marketplace is. In theory, you could also build an owner occupied business. Episode 320 of the Cashflow Diary Podcast is a good resource for that.

How do you handle fobs to enter gated communities?

Any time you have key fobs or gate remotes, you’re going to put those items inside the unit assuming that the answer to the following question is something that’s acceptable to you. When someone orders pizza, how does the order delivery person get to the front door? If they have a process for that, that’s what your guest is going to have to do the first time. Once that’s done, everything is inside the unit. The answer you don’t want to hear is that you have to go down to meet them.

In that case you have to get creative so guests can come get their keys.

I’m looking at acquiring my neighbors home for a short term rental but there is a 30 day minimum in the city I live in and I’m used to working nightly rates. Should I do this?

This is a completely different marketing system. I would stay close to what you’ve already built in the night rentals business because the amount of energy it’s going to take to build a brand new system to get the new unit going is probably too much, at least until your existing business is self sufficient. Double down on what you’ve already done.

If you want to keep it as a long term rental, that’s fine since it’s close to what you’re already working on and doesn’t require the same level of setup.

How do you feel about marketing towards stranded travelers?

If you can become the preferred vendor for the airline for people who are stranded, it can be a good idea. It might be pretty hit or miss though, since your units should probably be occupied in the times where someone stranded would need them.

Is there a way to intercept inquiries on AirBnB faster and answer them more effectively with SmartBnB?

Inside the messaging component of SmartBnB you can pre program answers to common questions and train it to recognize questions that it doesn’t already recognize. Chances are the questions you’ve received are fairly similar and can be pre programed to deal with any future inquiries.

Should I be out talking to everyone, even potential competitors?

There are so many people to serve, it’s tough for there to be any real competition. If anything realtors and property managers can be great lead sources, same with local government officials.

...

October 2019 Q & A #3: Get More Faster Oct 15, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Questions and Answers

How many units do you have and how long have you been in the business?

J currently has 37 units and has been in the process of getting to this point for nearly 15 years. He had to find a way to make money without trading time for dollars and real estate was the path he took.

How do I have my prices on Lodgify use AirBnB and Booking.com but ignore the prices on Home Away?

If you’re on the basic plan for Lodgify, it automatically ignores Home Away. J currently still uses the basic plan since the professional plan is still in beta. If you have multiple accounts, you will need to work directly with them to avoid certain errors.

How should we structure a deal for a 100 units if the other party wants to sell the property in five years?

It’s all down to the contract and how the services are signed for. To make things easier, use two separate entities, one for the property and one for the services involved.

How do we add a 0 to our income?

We will never out earn our personal growth. The image you have of yourself is part of the challenge. Part of the process in business is personal growth and consuming information with the intent of being a better person in all areas of life. Personal growth doesn’t just happen.

Any idea given to you has a certain level of value to you. What you need to do to make sure you becoming better over time is to not just collect ideas, but also implement them. The majority of us don’t realize what might be in the way that is holding us back from the results we want.

You have to set aside time dedicated to self improvement and find those blind spots. When you’re ready to take on that task, you will find the information that will move you further along the road. It’s not a three day process, it will take time to get there but it can be done.

Is the sofa bed you have in all your units custom made?

The sofa bed is custom made each and every time. One size does not fit all in our market.

A question about Ring camera and AutoLock

Anytime we talk about a system, it’s about efficiency and a single point of failure. You can save money buying an individual system, but you will pay with additional power requirements or lack of redundancies. Especially once you start to scale, this is why we’ve put together packages that help with that.

AirDNA gives my area a B+, does that rating bear any weight?

It all depends on how the data was collected, you won’t know for sure until after operating in that area for about 12 months. Scott and his team have a ton of work to improve the service, right now J puts more weight in their trend data instead of absolute numbers.

I want to run a short term rental business with my parents basement, should I speak to the HOA first or just do it?

We try to run everything above board and documented. Typically HOA’s are something we avoid but that doesn’t mean you can’t work with them. Get a copy of the CC&R’s so you can find out exactly what the HOA says about short term rentals. It can mean having to only run a 30 day minimum model or having a conversation with the HOA if you want to do something different.

Make sure who you are looking to serve is in alignment with the property type you are looking to work with.

I’m not sure about money in my situation, what would you do to find financing and get started as quickly as possible?

Sometimes it’s what we assume and become confident of without ever having actually researched it that can sink us. Being income challenged or credit challenged is irrelevant. Your job is to understand the problem of the customer, in the case of the landlord they have a vacancy that they need to fill. Your solution is filling that vacancy.

If you know how to solve the problem, that’s where you start the conversation. At this point, that's where the capacity question comes into play. Having cash in the bank or the ability to raise capital is the answer.

Sometimes we just need some help to see our way around these roadblocks that we put in front of ourselves. That’s where personal growth comes in.

Is the time factor the only benefit between renting and owning in the short term rental business?

The biggest benefit is actually the experience component. By leasing a property and going through the short term rental model you can get the experience without pledging all your capital upfront. That can come in later stages of your business, and inevitably that’s when you will encounter different roadblocks to work through.

Many of us know exactly what to do, but we never do it. It’s not just about the knowledge, it’s about taking action.

Am I going to have payment problems if I connect to Lodgify and start doing all the payments through Stripe?

At this point J is trying to avoid being the one processing the payments for reservations and additional services. This configuration is basically what J is doing with his business to achieve that.

When you are presenting at a BNI with property managers in the room, what main points do you hit on?

Property managers get hit up for a number of things they don’t want to do. The easiest business you can ever get is to ask for the business that people are throwing away. Ask them if their owners ever ask about short term rentals. How they respond will give you an idea as to how to proceed. Highlight how you work with other people and solve their problems.

How do I secure financing if my business credit is developing slowly?

Within the mastermind program, there is a module that goes over the three different kinds of financial structures we recommend. Check it out.

Sharpen the saw. Have a plan to develop your personal growth. Don’t get stuck in information gathering mode, you have to go out there and apply. Understand how you learn and figure out where your roadblocks are and go find out what you need to get around them. You want more, so get out there and go get it. When we labor under correct knowledge, we can develop our own luck.

Links:

cashflowdiarypodcast.com

Cashflow Diary on Audible

cashflowdiary.com/action

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and

Short Term Rentals Business Q&A #2 Oct 11, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Questions and Answers

What’s your system for rewarding or getting rid of cleaners that work for you?

The best way to make this work is to make sure that everybody you work with understands the metrics that you are measuring performance by. You should know what your revenue was before you hire someone, and you should see a reflection of that person’s productivity in that after you hire them. You should have a minimum standard for review scores the you require your cleaners to maintain and then keep that number in front of them.

If the landlord feels the negotiation around the lease is too much work, is there a better way to go about it?

There isn’t much to deal with a lease other than the specific clause around being able to use the property as a short term rental. Other than that there is a clause around marketing and making sure the lease is in the company name. Those are the three main things that you need to address, other than that there shouldn’t be much you should have to fight for.

The more units and the more revenue you’re bringing to the table, the easier it is to have this type of conversation. Start using future language to help your side of the negotiations.

Failing fast and failing frequently is the secret to success in the short term rental business. You won’t be able to get the ball rolling if you are trying to get it right the first time and are unwilling to fail.

Do you find you have more success when you are having a conversation with someone in person or is more of a numbers game?

Being in person is a major advantage when you’re getting started because when you’re new, you have a lot working against you including the mainstream media. You have to overcome a bunch of assumptions which is a big challenge over the phone, which is why your only goal on the phone should be to secure a face to face appointment.

Can you talk about how many towels, sheets, and linens you put in your units for each stay?

There is a file in the program that breaks down what you need based on the number of beds and bathrooms. Basically you want to stock for maximum occupancy.

Can you speak to the Cashflow Game, where do you find it, host it, why do you consider it important?

The Cashflow Game was developed by Robert Kiyosaki and his wife but the best way to buy it now is through Amazon. Being an introvert, J had to figure out a way to increase his odds of attracting customers. The way to do that is to filter, and the kinds of people who are willing to show up and play a Cashflow Game are self selecting as people who are willing to take action.

He or she who educates their market, dominates their market.

Can you talk about obtaining guests that are looking for short term rentals due to being displaced and using insurance claim to fund the rental? Who do we need to build relationships and how do we meet them?

You tend to need a lot of inventory to meet these people. You won’t typically find them, they will find you, but once that happens, developing the relationship is crucial. When someone comes to you ask them who their adjuster is or if the adjuster is contacting you, get to know them and their company.

Do you have any ideas to generate more income from short term rentals I already have?

Have you automated offering your upcoming guests early arrival? You can also do that with late departures, extra cleaning, or an extra parking spot. There are a lot of little things you can offer to generate extra revenue.

What are your suggestions for offsite storage?

If your running a property with a large number of units, an offsite storage area is just how it has to be done. If it’s on a completely different property, then maybe your cleaners have a legitimate complaint.

Do you wash all the towels, including the ones that haven’t been used?

Yes, it’s more important to clean everything than to save the money.

Is it true that certain services will turn on instant booking for all listings once they are connected through a property management software?

It depends on the connection type. If it uses iCal to schedule bookings, you will maintain control, but if it uses an API then it will be automatic.

How do I handle it when someone books for someone else?

When someone makes a reservation on behalf of another party, instead of referring them to the link we let them know that that’s not allowed and help them understand how to fix it. One way is to have the other person register. You will have to come up with a process that you’re satisfied with because there is no other way to make it work for business travellers.

Should I get an AC for a house in Vancouver, WA that doesn’t have one?

There should be inexpensive options that will allow you to install some sort of AC option in the unit. You should also help the landlord understand that by not having an AC in the property they will be at a major disadvantage. If they won’t spend the money on the AC, they will spend it on vacancy.

Is there any pros to using software instead of a direct booking site?

Ultimately they are too expensive for what you get. Just because you’re not ready to use a direct booking site, that doesn’t mean you should start building your business on a faulty foundation.

Does the landlord have to obtain the permits?

Read the ordinance and do what it says. You can’t reliably call the city and expect the person to know the answer.

How do we get into the cleaning business for short term rentals?

The easiest way would be to make a reservation at one of the busiest short term rentals in your area and then comment on their cleaning. Go wherever short term rental owners hang out. There are many ways to attract the right people to you but they are attracted to you you must also communicate what services you have to offer.

If a landlord had six stand alone houses and wanted to work with you, but they had an HOA that’s in charge of 80 houses in that area, would you still pursue those houses?

You need to read the CC&R’s understand the rules. Do you want to operate the type of business that the rules allow for, if that’s true then go for it. As an entrepreneur, it’s up to you to decide who you want to serve.

Links:

cashflowdiarypodcast.com

October 2019 Q & A Oct 04, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Questions and Answers

We are making our first short term rental unit listing tomorrow, when should I set up Wheelhouse and AirBnB?

That should be done now since that all happens at the same time. If you are ready to make your listing live go ahead and get that done now.

What is the best way to attract guests to stay one month or longer?

When it comes down to length of stay, being able to attract someone who wants to stay longer has a lot to do with what platform you’re on and your pricing strategy. Each site markets to its database differently and displays your listing differently. Booking.com is a discount marketplace, so your ranking depends on how much of a discount you’re giving. Craigslist is not recommended for this purpose.

The best way to get a 30 day reservation is to work with insurance companies. When a homeowner gets displaced during an insurance claim, it will often be for 30 days or longer.

Should tenants have list agreements signed?

There are times when a list agreement makes sense, for example a deal with a corporation. If you want to protect yourself from a tenant’s rights issue a listing agreement can be a good idea.

What is considered an automatic cancel with regards to someone’s reservation of a short term rental?

If someone causes a disturbance and then becomes belligerent, that creates a completely different issue and can be subject to cancellation without any sort of refund. Within the house rules list it outlines what the words “our discretion” means. Typically that means the process goes from warning, to fee, to cancellation, but there are some issues that warrant an immediate cancellation.

A question about using a four-plex as a short term rental

The more you can divide a piece of real estate, the higher your utilization rate becomes but it is a double edged sword. This kind of rental requires different levels of services and a much higher level of management. Pricing can also be pretty cutthroat and can make screening more difficult. You will also probably need someone on site 24/7 and there may be a separate license required.

Depending on the layout of the four-plex, it could be possible to get away with less management. Finding someone to actually manage a hostel style short term rental is another big challenge.

Should the damage waiver fee be the same when your in the 30 day market?

The damage fee should be increased to closer to $300. In a traditional market where you get $59 you would get in theory five or six reservations, so you should try to make up for the potential lost revenue.

Now that AirBnB is currently favoring businesses as hosts instead of individuals, should we rearrange our inventory?

J has started putting all the inventory onto a single host account for AirBnB.

When you have your team document resolution income claims do you find value in having the unit added to the spreadsheet?

Yes. If there are multiple claims from the same short term rental unit, that may indicate it’s priced incorrectly and attracting the right client.

Are there any corporate rental websites that work well?

Nothing yet.

We’re going from high to low season, what actions should I take moving forward?

The metrics you need to pay attention to within SmartBnB is early vs. late bookings. When you’re new, you don’t know what you don’t know about the seasonal patterns. What you’re trying to figure out is if the pattern is normal or if there is a seasonal adjustment to your pricing issue.

You can eventually tell with data that you will need to adjust something, probably your discount curve in order to maintain the same occupancies and revenue. This September will be that baseline for what to expect from here on out.

How important is it to have central air?

There is a big difference between having some AC and having no AC whatsoever. In a humid and hot environment, so long as you have some sort of air conditioning you shouldn’t have a problem. This is a review driven business and as soon as one person sweats all night you’re going to have a problem. If the unit has no AC at all, ask the landlord to put one in.

When people smoke inside, will the carbon monoxide detector go off?

Label your devices in each room of your short term rental unit. You will want to know if it was the detector in the bedroom or the kitchen. People are cooking in the kitchen you know.

Have you gone over what you will be doing with your listings in LA after November 1?

Not much is changing because we are constantly working on getting direct bookings and our networking is contributing to keeping the units filled.

Links:

cashflowdiarypodcast.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

🏠 Want to Join the Elite 10% of Short-Term Rental Hosts?

Dear Future Top Performer,

Are you tired of working harder instead of smarter in your STR business? Here's a wake-up call: The most successful hosts aren't grinding 24/7 – they're leveraging a proven formula that transforms average properties into profit powerhouses.

Let me share something game-changing with you...

There's a simple yet powerful equation that's revolutionizing the STR industry:
L × C × F × M = GP

This isn't just another fancy acronym – it's the exact blueprint top performers use to:
• Generate consistent leads without burning out
• Convert browsers into eager bookers
• Maximize guest frequency (hello, repeat customers!)
• Amplify their margins while others race to the bottom

Right now, you're probably leaving thousands on the table. The truth? 80% of your potential profits are locked behind just 20% of the right actions.

Ready to stop bleeding money and start leading the pack?

Join our newsletter today and get weekly insights that will help you:
✓ Master the Growth Formula
✓ Optimize your listing for maximum visibility
✓ Create an irresistible guest experience
✓ Scale your business the smart way

Don't let another day pass watching others succeed while you're stuck in the grind.

👉

Wealth Without Wall Street Oct 02, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Joey Mure decided to join Russ Morgan and co-founded a company called Wealth Without Wall Street.  They teach people to stop trading time for money to achieve financial freedom by following the 5 Pillars of Wealth Without Wall Street. 

Russ, aka, The Idea Guy, started his career in the financial industry.  With 4 years of planning under his belt, Russ was stunned in September of 2008 to see the DOW Jones plummet 800 points.  He had no idea that the market could react in such a volatile manner and knew this was something he could never have control over.  Russ began a journey that day to passionately understand more about how to take back and gain control over his money, as well as his clients.

Joey, aka, The Stallion started his career in the mortgage business in 2003.  He grew to become a branch manager with one of the Nation’s top mortgage lenders leading 25 loans officers. By 2010 he had achieved national recognition.  Despite earning an impressive income he still had significant questions about how to save for the future without having to borrow from banks. How does anyone save aggressively for retirement AND simultaneously pay for automobiles, save for college, weddings, and vacations? 

In 2010 Joey met Russ, who shared the Infinite Banking Concept and everything changed. IBC allowed Joey to get completely out of debt besides paying off his mortgage, he started saving four times the amount he had previously been saving, and now had a clear plan of how to save for all our life’s expenses without giving up retirement savings.

Podcast Highlights

Who is Russ Morgan and Joey Mure?

When Russ was a kid, one of his favorite uncles used to give him green Tic Tacs, but he called them Hulk pills. Imagination has always been a part of his background, he was constantly envisioning things as they could be if they were bigger and better. The motivation to help out his family as well as other people has been a key driver in Russ’s personality.

For Joey, the Italian Stallion Rocky Balboa is his unconventional hero of choice. Rocky was the constant underdog taking on Goliath, and Joey always felt that way, especially about his education. His parents wanted him to get an education but they didn’t have the money to pay for school, so Joey had to make it happen on his own. They’ve given him the vision and he put in the work, became valedictorian of his high school, and secured a scholarship to university.

The vision of wealth in the future and being able to take care of his family is what drove Russ to get into the financial world. For Joey, having the end goal in place and then achieving it showed him what was possible. While in school he encountered a number of mentors that helped guide him towards the mortgage industry. While working in the mortgage business and generating a significant income, Joey realized that there was still something missing and it was around that time that he met Russ which changed the course of their lives.

Wealth Without Wall Street

Success leaves clues, as a financial advisor Russ saw what wealthy people did with their money and it wasn’t going into Wall Street. When the market crashed in 2008, nobody knew what was going and he realized that he couldn’t be a part of an industry that just pretended like they understood how wealth was built. The wisdom is in wealth, and the wealth isn’t on Wall Street.

Real estate, business ownership, and private lending were the main asset classes that Russ saw his clients using to build their wealth.

There are five main pillars in the Wealth Without Wall Street plan. There first is about keeping more of the money you make, also known as cash flow. Where are you unnecessarily spending money that you don’t need to? That involves optimizing your tax strategies and paying down certain kinds of debt.

Invest in what you know, invest in yourself because that’s who you know the best. Investing in yourself is the best investment you can make.

Wall Street has confounded the process of investing by creating marketing fluff pieces to create the belief in people that they just don’t know enough to do it themselves. This is perhaps the biggest lie we’ve been fed and as a whole, the country buys into it.

The first step in working with a Wealth Without Wall Street client is understanding what they already know. At the end of the day we need to follow our own passions and gifts, once we understand what those are, we can start to invest in them.

The real problem that people want to solve is not about money, it’s freedom. This is why the idea of the qualified plan is terrible, you’re giving up control and visibility on your money in the hope that it will eventually solve your problem in the future. The traditional path of earning money will never help you get to true financial freedom.

Without cash flow and access to capital, the greatest investment could pass by right under your nose and you wouldn’t know it because you can’t act on it. Before you can invest you have to be in a cash position. Once you have that in place, you can invest in yourself and things you control, like your own business. Then you can move into assets like real estate or lending, and as a final step speculation which is ultimately the domain of Wall Street.

Russ and Joey’s Takeaway

Go to community.wealthwithoutwallstreet.com and find people out there who are doing what you want to do. Your net worth is your network, and this can be your network.

Links:

wealthwithoutwallstreet.com

community.wealthwithoutwallstreet.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

🏠 Want to Join the Elite 10% of Short-Term Rental Hosts?

Dear Future Top Performer,

Let me share something game-changing with you...

There's a simple yet powerful equation that's revolutionizing the STR industry:
L × C × F × M = GP

Right now,...

The Land Academy, Buying and Selling Land for Fun and Profit Sep 30, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Since 1999, professional real estate investors, Steven Jack Butala & Jill DeWit, built a $24m land resale empire completing close to 16,000 transactions without incurring any debt or leverage. In 2015, they co-founded Land Academy to share their experience and provide access to professional level tools for like-minded investors at all stages of their careers.

To date, they have produced more than 1,000 podcast episodes and provided over 500 hours of live webinars all in the name of education through sharing their transaction experience.

Podcast Highlights

Who is Jill DeWit and Steven Butala?

If Steven had to choose a superhero to be like it would have to be Batman, being an entrepreneur is a lot like the way that Bruce Wayne took his circumstances and resources and found a way to use them for good. For Jill, she identifies with Wonder Woman and the way that she operates. Wonder Woman is forthright and truthful, and that’s how they run the Land Academy.

Steven graduated in 1989 and became a commercial real estate broker in one of the worst real estate environments possible. It took him several years to make it work but he learned a lot about real estate by working on some of the most complicated and difficult types of deals you can do. That lead him to look for a simpler way of doing a deal and towards a different kind of transaction.

Jill’s father raised her to believe that she could do anything that she wanted and to act like she knew what she was doing. She followed in his footsteps in many ways but was never very far from real estate. She worked with some developers in her early 20’s and when she eventually met Steven it all clicked together.

Steven’s Unique Abilities include the ability to analyze data and make connections that other people can’t see as well committing to a project and following up until it’s complete. For Jill, she can connect with people from all backgrounds and situations. This makes her very good at talking to sellers and developers and making everyone feel good about a deal. She’s never had trouble seeing anyone as another human that has similar hopes and dreams to herself.

Formal Education

Steven believes that some form of formal education is important but that doesn’t necessarily mean the traditional four year degree. Getting the experience in a professional environment is important to be able to make a go of it when you do decide to go out on your own.

Jill was raised to think about what she was going to do with her life and was encouraged to go for the big stuff.

Formal education does not prepare you in any way for the politics of an office. They prepare you academically for what’s possible but they don’t show you how to do anything. Formal education also doesn’t teach the skills of scrappiness, talking to people, and dreaming big. In many ways formal education places limits on people’s abilities to think about and achieve big goals.

In many ways a vocational education has more value in today’s marketplace than an education from a more well known and traditional institution.

Land Academy and Buying and Selling Land

Landing is one of the easiest product types in the real estate business. The majority of the time there is just a seller and a buyer, there is no appraiser, agent, lender, or inspector. With just those two people you can close a transaction very quickly.

There is always somebody out there that is interested in a piece of land that you wouldn’t be interested in at all. Jill and Steven’s business model is predicated on not improving property, they buy property and then immediately resell it to people who then go and sell it on terms. The secret is in the offer campaign that reliably generates consistent results.

The real key to successful direct mail campaigns is sending offers with a direct custom dollar amount instead of just a letter of interest.

Technically you can buy land anywhere. It’s all about pricing and predictable results so in many ways data is the most important aspect of the business. There are many ways to cash flow from land, you just have to be creative and look for the right opportunity.

Most people think about land backwards. They look at a piece of property and try to figure out how to make it fit instead of filtering their search for the land that fits the project.

What is the unique exit strategy that we’ve never heard of?

Jill and Steven have essentially built a list of consistent buyers that they can bring deals to. The typical deal for them involves buying the land, immediately reselling it at a very low wholesale amount, and then that customer resells it on terms and lets the note season then selling the note after six months or so. Building your own buyers list is crucial to success which is why it’s an integral part of the Land Academy educational platform.

Jill and Steven’s Takeaway

Trust the process, do the steps that Steven and Jill say, and watch what happens. You will see that it works and then want to do more. Steven wants you to go to landinvestors.com and ask the hard questions, then you’ll hear from people who will tell you how they did it themselves.

Links:

landacademy.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

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Let me share something game-changing with you...

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The Power of the Deferred Sales Trust Sep 27, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

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Now, let's dive into today's episode...

Brett Swarts is the Founder of Capital Gains Tax Solutions. Each year, he equips hundreds of business professionals with the Deferred Sales Trust tool to help their high net worth clients solve capital gains tax deferral limitations. His experience includes numerous Deferred Sales Trusts, Delaware Statutory Trusts, 1031 exchanges and $85,000,000 in closed commercial real estate brokerage transactions.

He’s an active commercial real estate broker and investor with brokerage experience and ownership in multifamily, senior housing, retail, medical offices, and mixed-use properties. He is a licensed California Real Estate Broker who holds series 22 and 63 licenses.

Podcast Highlights

Who is Brett Swarts?

Brett is a Christian so he believes that each of us were given unique gifts to help others, and that shaped his world view when he was young. At the age of 12 he encountered several different mentors that helped him develop and realize that challenges are an opportunity to grow. In terms of superhero powers, Brett is a careful observer that can learn from the mistakes of others and see better ways to get things done.

In college, Brett was guided by one of his older cousins towards investing in commercial real estate which lead to him getting an interview with Marcus and Millichap. It was there that Brett learned that he loved the business and competition, and that the moment you learn more about someone’s business or piece of real estate than they know themselves is the moment you start adding value. Brett’s career started off rough but he kept persisting until he found the results he wanted.

We are forged in the fire, all the difficulties and challenges that Brett worked through are how he developed the tools and skills he needed to succeed.

The Power of Persistence

When Brett was working on his business he didn’t take the negative opinions he often heard seriously. He had his wife supporting his vision and felt like he was on the right path. Persistence has always been part of Brett’s personality so without a challenge to keep him engaged he tends to get bored.

The strategy of the deferred sales trust is something that caught Brett’s eye that he saw as something that could serve people’s needs, so he invested a lot of time into understanding it. This turned into Brett becoming a trustee and educator who teaches financial advisors, brokers, and high end realtors on the strategy.

Deferred Sales Trusts

You can defer your taxable gains on real estate by using the 1031 exchange as long as it’s done within a certain time period. The challenge is that if that’s the only tool in your toolbelt you may be put into a situation where you can’t make the best decision because of the 46 day window. It’s a seller’s market today, so if you sell today and buy 180 days later you are likely paying more with a higher interest rate for example.

Debt is not your friend in a highly appreciated, overpriced marketplace. The 1031 exchange requires you to buy something of equal or greater value, which means that you will have to take on that debt or more on the next deal. The intent is to take on smart debt when it makes sense, usually during a buyer’s market.

A deferred sales trust gives you multiple options for what you can do with your money. According to the American Banking Association about $17 trillion will pass from one generation to the next in the next 20 years, which is the largest wealth transfer in history. The older generation is struggling with how to sell their highly appreciated assets.

The deferred sales trust can also be used to fund your future business ventures, up to 80% of the money can be utilized without paying taxes as long as the use is for a business or real estate.

As entrepreneurs, the value of the deferred sales trust is that you still have functional control of your money as well as how much you want to pay in tax, if ever. As long as you don’t dip into the principle in the trust the money is in a tax deferred state which gives you more purchasing power without having to take the hair cut.

The deferred sales trust is freeing up entrepreneurs to continue creating economic value without the losses and drag that comes with paying taxes.

The government has talked about taking away the 1031 exchange already, so there is a chance that it won’t be an option sometime in the future as they try to figure their way out of $22 trillion of debt.

The fees are fairly simple, there is a one-time fee to set up the trust of 1.5% on the first million and 1.25% on everything above that. Brett, as the trustee charges 50 basis points once a year on the value of the assets within the trust. The last fee is for the financial advisor which is somewhere around 1%.

Brett’s educational platform trains business brokers, financial advisors, and other business professionals on the deferred sales trust which empowers them to earn more business. The deferred sales trust is a great way to separate yourself from the pack of other professionals by enabling you to save your clients the biggest expense they may ever have.

Brett’s Takeaway

Take massive amounts of action and focus on whatever it is that you are trying to achieve. If that means adding value with a deferred sales trust, connect with Brett. If you’re not getting the voices in your life that are speaking life into you find a mentor that will encourage you.

Links:

capitalgainstaxsolutions.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

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Dear Future Top Performer,

Let me share something game-changing with you...

There's a simple yet powerful equation that's revolutionizing the STR industry:
L × C × F × M = GP

Right now, you're probably leaving t...

Sharon Lechter on Loss, Life, and Playing Big Sep 25, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
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Sharon Lechter is the former CEO of Rich Dad and Pay Your Family First. She is an entrepreneur, #1 New York Times and international bestselling author, philanthropist, international speaker, mentor, licensed CPA and a Chartered Global Management Accountant.

Sharon Lechter is the co-author with Robert Kiyosaki of the international bestselling books Rich Dad, Poor Dad, co-author with President Donald Trump of Why We Want You to Be Rich: Two Men, One Message, co-author with Greg S. Reid of Three Feet from Gold: Turn Your Obstacles into Opportunities!, and author of Outwitting the Devil: The Secret to Freedom and Success and Think and Grow Rich for Women: Using Your Power to Create Success and Significance. She and Greg Reid just released the new book Success and Something Greater: Your Magic Key. She was a member of Presidents George W. Bush and Obama’s Advisory Council on Financial Literacy

Podcast Highlights

What has been happening with Sharon Lechter over the last five years?

Sharon has been through some pretty difficult times during the past five years, having lost her younger son. She ran her life in neutral for a while thought that if she wasn’t going to play big in her life she should probably retire. She got some push back from her family and made the decision to re-fire instead of retire. In changing her attitude from one of mourning to there being more for her to do amazing things started to happen. She found her passion for writing again and her latest book in being released in a few weeks. She is now recommitted to living life to its fullest and giving people information to take control of their financial lives.

Living Life in Neutral

Comfort turns into complacency. So many of us in life are in neutral because we do the exact same things day after day. The only thing that changes us in a state of complacency is a crisis, and that puts our lives into chaos. The only way out of the chaos is to be creative again.

You’ve had your successes and your learning opportunities, there are other people who can benefit from what you know. The more you start giving the more you are going to start feeling alive again, supporting others will get you out of neutral and back into drive.

The importance of your environment and your associates are paramount. Are you putting yourself into your place of greatest potential? When you’re an entrepreneur, when you have the right people around you will keep your head above water when you feel like you’re sinking. Surround yourself with people that challenge you, that are strong where you are weak, so that you have the greatest opportunity.

Are you putting negative thoughts into your brain or empowering thoughts that help you see the world of possibility?

Have you added value to someone’s life today? Success is more than money, it’s also about contribution and impact.

Refiring Your Life

It took a while for Sharon to come to terms with the loss of her son. It wasn’t until someone asked her if she realized how many people she could help if they knew that someone like her had gone through something like that. A failure is an occurrence, not a definition. Too many people with a failure in their life feels like it defines them, and it doesn’t. You just have to pick yourself back up and redirect your energy.

Success is not a single pathway with a special one size fits all key, for Sharon success is about how you feel about yourself when you look in the mirror.

If you want to succeed, do the homework and look towards where you want to go.

How does experiencing failure events define your idea of success?

No one has ever had a straight line to success. Failure is a learning opportunity, a chance to recalibrate and refocus on the end goal. Maybe you need to adjust your end goal, maybe you need to change your market. The most successful businesses solve a problem or serve a need, if you remind yourself what problem you’re solving that takes the motivation outside of you and will give you the motivation to keep going.

Listen to your intuition, analyze your passion and talents, and then define your success and what you want out of life. Big hairy audacious goals can be intimidating without also setting milestones that allow you to celebrate the little wins along the way. Setting goals and then achieving them is how we build confidence.

Playing big is about realizing what you haven’t been doing that you can do to take your life/business/career to the next level. Bring an entrepreneur can be very lonely, so it’s important to surround yourself with people on the same path as you. The power of association is even more important than it was 20 years ago.

Playing Big

For most people, the “something greater” is what moves them and what they want to do outside of their business and life. Understand that you can make a difference in the world and the bigger the success you become the more positive impact you can make in the world.

Reference: Success and Something Greater: Your Magic Key, Sharon Lechter

Sharon’s Takeaway

Remind yourself that there is more for you to do and that that voice is not going to get in your way. Your magic will happen outside your comfort zone so push yourself to take that step and seek other opportunities.

Links:

bit.ly/successequation

sharonlechter.com

Play Big Movement on Facebook

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

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Dear Future Top Performer,

Let me share something game-changing with you...

There's a simple yet powerful equation that's revolutionizing the STR industry:
L × C × F × M = GP

Right now, you're probably leaving thousands on the table. The truth? 80% of your potential profits are l...

Future Money Trends, Buying Cash Flow, and Financial Independence Sep 23, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Daniel Ameduri is a self-made multi-millionaire, a full-time skeptic of conventional thought, and a proud father of three. He is the cofounder of the Future Money Trends newsletter and FutureMoneyTrends.com, which, with nearly 150,000 subscribers, is the most widely recognized online authority in investment ideas and economic advice.

He’s been featured in The Wall Street Journal, on ABC World News Tonight, and on Russia Today TV. Daniel correctly predicted the collapse of Lehman Brothers, AIG, and Washington Mutual on “Vision Victory,” the YouTube channel he launched in 2007 and which now has had more than thirteen million views.

Podcast Highlights

Who is Daniel Ameduri?

Daniel is a guy that has always been fascinated by money. As a kid Daniel thought of money as a video game and later on as an adult money meant freedom. We’re all told we’re born free but for that to be true you need to be financially independent.

Right out of high school Daniel bought his first rental property but that was completely derailed in 2008, to the point where he gave up on his dream of becoming financially independent. Lucky for Daniel, his high school sweetheart kept encouraging him and pushing him toward what would eventually become Future Money Trends.

Daniel has a saying in his home office, “Everything in life is a gift, even the worse things have always lead to the best lessons in my life.” Without the 2008 crash Daniel may have been burned even worse later on but it was lucky that he was young and he had time to recover.

Have people missed their opportunity?

Even if someone has a small amount of money in their retirement account they could still take that money and put it into cash flowing investments. This is one of Daniel’s biggest frustrations, that people are living this dream of deferred life. If they just shift and start buying cash flow, they could be on the road to financial independence in 12 months.

What are the top 3 things that you have learned on your way to 7 figures that you would never have learned through formal education?

School never teaches us about personal finance. The top three things that education doesn’t teach people but should are about getting down to the basics. What are you going to do with the income you make? Most people have been conned into just buying things that will hopefully gain in value. Why not be relentless about buying things that bring in checks?

How are you going to maintain a sustainable life? It’s not about copying everyone else and never ending debt.

The third thing is how to actually buy an investment and how to analyze a good rate of return. We should be able to break down the numbers and figure out if an investment makes sense. This is something that is completely absent in formal education.

The Turning Point That Lead to Future Money Trends

In 2008 Daniel and his wife were in a bankruptcy attorney’s office. But they had one duplex left that they didn’t want to lose and that was the reason they didn’t actually declare bankruptcy, which ended up teaching them an invaluable lesson. They learned that cash flow trumps appreciation, even in the worst housing crash ever in the US, so from that day on they only bought things that made them money.

The next step was to make sure they wouldn’t become poor. They cut spending and started building their financial moat. Over the course of two to three years, their cash flow was able to cover their expenses and that opened up new opportunities which lead to where Daniel and his family are today.

Buying Cash Flow

Daniel doesn’t just invest in real estate, there are plenty of options that can create cash flow. Dividend paying stocks and private equity being some good choices. Daniel tells people to focus on buying cash flow in something that you are familiar with and understand.

If you don’t have the money to get started, chances are you are living a life that is perceived as normal but is costing you. In order to get started you are going to have to go against societal norms and have one to two years of sacrifice. Don’t finance a vehicle for 8 years that’s equal to your annual income. Don’t pay for an expensive rental, pay for a rental that is below what you can afford. The biggest expense is where you live, the fastest way to financial independence is to cut spending so that you can buy yourself some cash flow.

In the beginning it’s not about earning more money. You can’t just be looking at the numbers, your life is more than how much you earn at your job. Most people can be happy earning a lot less, but they need to ask what actually makes them happy.

Start small without getting overwhelmed. Focus on how you can get cash flow in place that will cover your water bill or hydro bill without having to work for it. Once you start thinking about life that way you will start to see how much time something costs and what you should be doing instead.

When Daniel was getting started, his only target was to cover his utilities and grocery bills. They also started paying off debt. Even when Daniel had become financially independent he was still driving the same car when he started on his journey.

What are you doing intentionally to give your children a leg up?

Daniel includes his children in nearly every deal and aspect of their finance. He regularly reads Rich Dad, Poor Dad and has discussions about it with them. The most important thing you can teach your children is delayed gratification, don’t condition them to settle or just spend their money. Make investing habitual so it doesn’t feel like a sacrifice later.

Daniel’s Takeaway

Write down everything that you have, including assets and current income and current expenses. Get the last three months of your credit card bill and bank statements and see where your money is being spent. You will see areas where you can make immediate improvements so you can start purchasing cash flow. Think about the three things that you want people to say at your funeral because that is likely what your life’s purpose is, then write down what you need to be doing to achieve that and put it somewhere you have to look at everyday.

Links:

futuremoneytrends.com/save

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Dear Future Top Performer,

Are you tired of working harder instead of smart...

Patrick Donohoe on Rethinking Retirement, Success, and the Meaning of Life Sep 20, 2019

Show notes

No fluff. No theory. Just proven systems from my living room "office" (fueled by Celsius and Chick-fil-A).

These are the exact insights that help our community achieve:
• 30%+ profit margins
• 80% automated guest communication
• 5+ hours saved weekly

👉 Join 20,000+ successful STR hosts at https://newsletter.cashflowdiary.com/welcome

Now, let's dive into today's episode...

Patrick Donohoe is the author of the bestselling book Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream. He is also the Founder and CEO of Paradigm Life, one of the largest private and independent financial planning and advising firms in the country. Patrick and his team teach thousands how to build wealth, create lifetime cash flow, and leave a meaningful legacy.

Patrick Donohoe was recently honored by Investopedia as one of the Nation’s Top 100 Most Influential Financial Advisors. He is a highly sought after presenter and speaker at financial-based events around the country and is the host of The Wealth Standard podcast.

Podcast Highlights

Who is Patrick Donohoe?

Patrick has always been driven to succeed, which has given him a lot of the things he has achieved in life but also made him extremely unhappy. He has a hunger to understand the way things are and no matter what the achievement or result he was looking towards, he knew that he could have it.

The way in which we look at the world today is shaped by our experiences when we’re younger. We link the things we all end up wanting with certain emotions, and for some people that can mean believing they are not worthy of their goals, or if they do achieve them they’re unhappy anyway.

What are the top seven things that your formal education never taught you on the way to seven figures?

Understand that you are your best asset. You have infinite potential. You have uniqueness that you need to discover and then invest in it and magnify it, that will allow you to apply it to the marketplace and add value to the world.

The school system and the workforce were originally created to train workers and the military, but that paradigm is being turned on its head. Just because you don’t do well in school, that doesn’t mean you’re not smart. You’ll make way more money if you focus on yourself instead of something external.

Nobody likes to be managed, everybody likes to be lead. Leadership is one of the hardest things to do but it’s one of the most fulfilling things you can do. Everybody has in them the ability to lead and if you adopt that in yourself it can be very powerful.

The deeper the emotional level your pain and sadness goes, the more you’re capable of experiencing the positive. You don’t know the light if you don’t know the dark. People’s tendencies to avoid fear and pain means that they restrict themselves from many of the possible positive experiences and lessons in life. The wider the spectrum of experiences you have had, the more meaning life will hold for you.

School is very focused on the individual and assumes you should have all the skills you need to succeed, but that’s not the way life works. You have to understand the value of teams and what can be accomplished. The things you are not good at are things you should hire other people to do for you, so you can focus on the things that you are good at. Teams with a good culture will look at unforeseen events and see them as opportunities instead of potential threats.

All investment is business, and all business is people. One of Patrick’s biggest failures in business is in not understanding other people and how they work together.

Patrick’s Mission

Our society has been programmed with what a successful career means, and what success in school means, and it’s completely unprincipled. Retirement is one of the worst ideas introduced into society. Retirement is anti-life and it kills people. The world needs people with experience and wisdom to keep adding their value, not to disappear at their prime. We want freedom and independence, not retirement.

There are three steps to achieving financial independence. The first step is establishing a foundation of certainty where you have enough money available that if you stopped working, you would have enough time to figure out what you wanted to do. The second is to educate yourself on the investments that you’re making and focus on one or two asset classes. The third is to invest in yourself first in order to find a career and calling that you can pursue for the rest of your life.

The sooner you realize that what you want to achieve is not retirement but freedom, the sooner you can reposition your assets and get started on the path.

The first step is a fundamental pillar of certainty which is why Patrick set up a specifically designed insurance policy to establish that foundation.

Reference: Heads I Win, Tails You Lose: A Financial Strategy to Reignite the American Dream, Patrick Donohoe

Patrick’s Takeaway

Most people have too much information in their mind and if they want to learn something new they need to purge something else. The path that leads to a fulfilling life has examples everywhere if you know where to look. In order to capitalize on the time we have and spend time with the people we love, doing the things we love, we need to open our minds about what is possible.

Links:

headsortailsiwin.com

Thank you for listening! If you enjoyed this podcast, please subscribe to the show on iTunes and Stitcher Radio!

🏠 Want to Join the Elite 10% of Short-Term Rental Hosts?

Dear Future Top Performer,

Let me share something game-changing with you...

There's a simple yet powerful equation that's revolutionizing the STR industry:
L × C × F × M = GP

Right now, you're probably leaving thousands on the table. The truth? 80% of your potential profits are locked behind just 20% of the right actions.

Ready to stop bleeding money and start leading the pack?

Don't let a...