Episode 071 - STRR - No Cash? No Problem! How to Get Started on a DimeOct 01, 2021
If you’ve been hoping to host your own BNB or you want to build a Short-Term Rental Business but you have no cash, no property, no start-up, then THIS is the episode for you! Michelle goes into detail about how Co-hosting is to Short-Term Rentals as Wholesaling is to Real Estate Investing. She tells you how to start, where to find properties, and gets you started in this Short-Term Rental Business with little to no money of your own. It takes work but it absolutely can be done.
Transcript of this Episode:
Hi, it's Michelle, the master of money mindset.
And you are listening to BNB dash boss podcast. And in today's podcast, we're doing a rerun is Friday and I'm out of town, but you won't know it because we're not going to miss a heartbeat here. We're going to be replaying the no cash. No problem. One of the earlier episodes, maybe episode 27. Yeah. We all remember when we were in our 20 somethings, right then our 30 somethings than our 40 somethings.
Now it's the 50 somethings for me. And I can tell you that you still feel like you're 20 something until you pass by a mirror and you go, who the heck is that old lady? But anyway, we're going to be going over no cash, no problem, because this is really no problem in our business. If you don't have a lot of cash, it's pretty easy to pick up some.
And to pick up a property and then you turn it into a BNB yourself. I've seen people do it on a shoestring budget. Just depends on where you are. So I'm going to listen along with you. I want you to take this with a grain of salt, because when we did record, this may have been about the end of an era. You know, we probably had another year or two before the whole guest things started to change.
And then. Began to become more picky. Now they wanted something that looked nice. I want you to remember that because this may have been in that era. Now it's a lot more difficult. You're going to spend a little more money. Most everybody has a friend or family member who believes in them enough to kind of go in business with them.
You can do this on a shoestring budget. You really, really can. The first property that you do, each property is unique. And I love that. So let's take a listen to this one. I'll listen into and maybe pipe in the middle or at the end, if I need to let's get this one, started no cash, no problem. How to get started on a dime.
I know a lot of you have been waiting for, we've got a lot of little notes and messages that have been sent to us. And so we're going to get started right away. So as you guys know, I treat my short-term rental business, like a real estate business, like an investing business. And if you're just toddling around with this, if this is just a hobby for you, that's dangerous.
It's dangerous. Number one, because the government's going to treat you and tax you as if it's a hobby. And guess what hobbies get taxed in the higher bracket than a business does. So you need to treat your business like a business. It is not a hobby, it's a business, treat it like a business. And when you're investing in real estate, People always say it takes money to make money, but that is not true.
It is not true. The proof in the pudding is wholesaling. Wholesaling is a way that a lot of people get started in real estate without any money in their pocket. They basically become a middle. So they find a seller, somebody who is selling their home, they work out and negotiate a great price for that.
And then they find a buyer on the other end, usually another real estate investor or somebody who has more money in the money. Maybe they're going to fix it and flip it or turn it into a rental property or whatever they're going to do with it. They find the, the seller and the buyer, and they become the middleman taking from the seller and turning it over to the buyer for a fee in the middle.
And most of the time, that fee ranges in price between, you know, 5,000 and $20,000, depending on. The property and the terms that they got and the price that they got, but you can make a lot of money without having any money. It's the best way to get started when you don't have money. When you're getting started in real estate investing, you have to have different exit strategies and everything.
And we can, you know, we would go into that, but that's not this show. This show is about short-term rentals, but co-hosting is to short term rentals. What wholesaling is. Sure real estate investing. Okay. So co-hosting is the way to get started in short-term rentals without any money. So if you were going to get started in real estate investing and you had no money, you would do it wholesaling.
If you want to get started in short-term rentals and hosts. You start with co-hosting a property that you would have no property that you own. You would have no resources, no money, no cash, no nothing. Okay. So you can, you can do this with nothing, literally with nothing. And it's called co-hosting super duper.
Easy to do. But it's going to take a lot more work. Now, remember, we've talked about this before people, anytime you do anything, the more work that's involved, the less money you need, but the more money you have, the less work you have to do. So it's just like this weird scale that goes on. So if you don't have any money, just know you're going to have to work your little Fanny off a little bit harder.
A little bit stronger than, than the regular guys out there. You're going to have to put forth a little more effort than the average Joe out there, but the key to any investors. Is marketing. You have to find the properties. You have to find the sellers you have to, in this case, you're going to have to find the people who want to, or allow you to co-host the property, which means you're not going to have to sign any rental agreements with them.
You can, if you have a little bit of money behind you, but if you have no money, we're going to adjust. Talk about co-hosting today. We're going to assume your. Hopefully not living in your parents' basement, but you know what I mean? Like you don't have a lot of money behind you yet, and maybe you're still cleaning up your credit or whatever.
So we're going to assume that that's the case. That's why you have no money to get started. So any key of any real estate is really the marketing and finding the properties or finding who you're going to in this case, be co-hosting for. So Airbnb is actually, they have a co-hosting feature, but they're eliminating it this year.
They're going to get rid of that entire feature. But that doesn't mean it's gone guys. That just means that it's gone off the Airbnb platform, right. It's not there any longer, but you can still do it now. How do you find, or these people that you're going to partner with? Because basically you're going to become a part of.
Now in the regular short-term rentals that we've been teaching, we've been teaching people to go out and rent properties from landlords. If they don't have the money to buy a property themselves, and maybe, maybe they do have the money to buy it themselves. And they just don't think it's the right price.
Because right now, real estate prices are super high. They're starting to adjust and even come down in some areas, they're going to start adjusting and coming down. And the best time we know to buy you, don't buy high. You buy low sell high. So right now is not the best time to buy because the prices are high.
So maybe you're renting simply because you know, the prices will be coming down shortly. So whatever reason you would be renting. In this case, you're not going to have the money behind you to rent the property or the credit, right. To, to put all the furniture in there to get all the utilities and everything set up to have the first and last and security deposit, all that stuff.
You're not going to have. We're just going to assume you have no money. So you're going to be looking for a particular type of. Landlord or a person. Well, now they're not landlords because you're not renting them from of them, but you're going to be looking for a specific type of seller. Okay. Or a specific type of person that you're going to go in business with.
And that's basically what you're going to do. Okay. You are going to become this person. Takes their property, hopefully a furnished property. Maybe it's furnished with their own furnishings, or maybe it's staged because they've got a property for sale, but whatever, the reason the property is already furnished, you're going to be looking for a person with an empty.
That's furnished. That's what you're doing. That's that's who you're looking for. So there might be a bunch of different reasons why that they have a place like that. So maybe they are a landlord or maybe they had an Airbnb, but whatever reason, they had a property that they already had furniture in it, and they're just getting tired of doing it.
They don't like all the headaches that go along with it. They're, you know, they don't want to mess with it. Maybe they're moving out of state, maybe their health, whatever issues they have. They don't want to deal with it anymore, or maybe they're selling their property. Maybe it's a home that's for sale.
And it's, if it's a bigger, nicer home, a lot of times they'll stage these products. More expensive houses take longer to sell in real estate, but they can be goldmines to you if you want to be a co-host because here's a house that's sitting on the market and it's usually up and around. Um, it depends, well, it depends on the area, but in, in Arizona or Florida, if it's in the $700,000 range or above, it takes longer to sell than it would, if it was, you know, 6 99 or.
So those houses take longer to sell, but they, they want them to, you know, people to walk in and feel like, oh, I can put my stuff in here. I live here. But a lot of times people, especially, especially the wealthier, they are, they don't have. But, you know, the, the vision to see their stuff in there. So they stage these places.
They can't envision their furniture without furniture in it. So they'll hire somebody and they pay a lot of money to get, you know, furniture in there and paintings in there to make the home look lived in when there's literally no one in. And you, you can go in and find those properties that have been on the market for a while.
Don't have anybody in them, and you want to turn them into a BNB and make money on the side when they're not using the property to sell. Right. So that, that's a good reason why it would be furnished. They're selling the house or maybe the owners are now going into a long-term care facility. They're older.
Maybe there's. Or maybe they passed away and the property is in, you know, maybe there's some kind of something going on with the property. They don't know whether they want to sell it, or if they want to hold on to it. If the parent might get better or whatever reason, they just don't know if they want to sell the property.
But there's furnishings in the property. Those are the types of properties you're looking for, whatever reason they're out there. The owners have furniture in. Because you have no money to put furniture in there. You got to find a property with furniture. Now just like real estate and investing in real estate, there are a bunch of ways to find owners.
And one of the biggest ways that we always did, and I think Maria touched on this, or maybe she didn't, but we use companies like ListAbility ListAbility and we'll put a link in the show notes for you. ListAbility is a place where you can go buy real estate. And they're fun and amazing to do. When, when we were heavily buying properties, we would put out, we would take these big lists of all these people's names and addresses, and you can choose what type of properties they are.
So you can say, um, I want to list of all the people who have, you know, less than 20%. Uh, to pay off on their mortgage or maybe no mortgage, but they're that, but they, the owners of the homes do not live in them. They live out of state or they even live out of country. You can pick anything you want. You can choose a list and any zip code, you can choose the size of the house and how many bedrooms you can choose.
All kinds of things. You can cut. You can cut this down to this, this awesome little cookie cutter area, wherever you want to be. And you look specifically for owners of homes who no longer live in them who have properties worth above this amount who live in this zip code. You can like narrow it down with ListAbility.
It's pretty cool. And they're a great company to they'll they'll help you buy a list, then you buy that list. Okay. So not owner occupied homes, blah, blah, blah. You know, you buy, I don't know. Maybe, you know, you can start off with a a hundred names, 500 names, a thousand names. It doesn't matter, but then you're going to send out some kind of mailing to.
Now, some people will send out form letters. I always recommend that you make your letters look as if they are handwritten and you, the less business-like your letters look the better they seem to go out. And if you can have somebody hand-write your envelopes. Oh my gosh. Um, we paid a lot of money. I can't remember what we paid right now to, to have our, our letters handwritten, but we used to pay a.
To hand-write all the envelopes for us. So it didn't look like it was marketing because your open rate is really, really good when you have that. But you can also go on Craigslist and look for the same kind of properties you can use yellow signs, right? It says I'm looking for your home. I want to rent out your furnished home or an, and you can even say that, but then negotiate that you don't want to rent it later, say, Hey, how about we do this instead?
So, but you can put out a sign. What you're doing is you're, you're putting out a hook with warm on it, right? And you want to get these guys and they go, Hey, we have a furnished house that we have just sitting empty, you know, and they'll, they'll look for it. And you want to put them in areas where the people are going to drive.
And obviously areas where they're not going to be illegal to put up the signs, but, um, you can look on Zillow. You can talk to real estate agents. Real estate agents are great for this. If you see on Zillow, a bunch of houses that you can tell are furnished, but they don't live there. And how you can usually.
Is how darn clean it is and what the rooms look like. I mean, come on, let's be honest. If they got kids rooms and there's like no toys out and nothing in the closet, if there's nothing in the closet, nothing in the pantry, but a couple of jars, you know, nobody's living in that house. It's like just take a look at the garages and stuff like that.
But when you talk to a realtor, you can say, Hey look, we can have. We can do business with you and we can have the property empty on these days, like Wednesdays and Thursdays, it's open, open house days so that you only rented out on the weekends. Weekends are the biggest days. So you really do want to have the house available on weekends, but you'll be able to sometimes, you know, if you just have maybe one day a month, Two days a month or whatever you work it out.
Everything is negotiable. But if you have those days available, if the house is up on the market, then you can be renting it out all those other days and have money coming in. So you're going to be the one who takes the property. They're furnished property, and you're going to turn it into the BNB business and make the money while it's sitting there empty.
Oh, no, I don't want to miss two attorneys. Attorneys are a great source too, because attorneys can be handling. Let's say if the parents, like I said, either got sick are in a. Care facility or if they passed away. Right. So attorneys are good for that because there might be a bunch of kids and sometimes they're vultures just sitting there waiting for their parents to croak or the property gets sold and they could divide it all up.
So this is a great way for them to be making money while the property is sitting empty with furniture in it, you're going to want to get all the personal stuff out, to box it all up. Put it away in a locked facility or give it back to the kids, but you can do that very, very easily. And like we said, lots of different reasons, lots of different reasons why these people would be, you know, putting their houses up or having a house sitting there empty with furniture.
So your job as a cohost is to basically do everything that a host does, except you don't own the property. And in this case as a co-host, you don't rent the property either. You're basically a business partner and your job is going to be a lot like a property manager, but not just a property manager a little bit more because you're going to be hosting the property as.
Meaning you are going to be responsible for communicating with gas back and forth and making sure that everything is going well for the guests, your going to be that person. You're going to be the upfront part of this business. Okay. So when you get this property, you're going to have to take it from whatever they give.
To a BNB. So you're going to have to clean it and prep it and get it ready. You know, the white sheets on the beds and the white towels and your going to be the one who has to make sure that it has a coffee maker with coffee filters, you know, everything, all the little shampoos and everything, everything that you would have inside your BNB.
Because right now it's just an empty house. It might have furniture, but it's not a BNB yet. You have to turn it into the BNB. Okay. So you're going to clean and prep it and get it ready. You're also going to take pictures and have staging pictures, you know, maybe with, uh, with some wine glasses and a cheese tray.
Something by the pool, something to make it appealing as if this is what it would be like if they were there, like, you know, just give them that great looking area and you're going to have to get those pictures taken. And you're going to have to list those pictures on some kind of maybe Airbnb vacation, rental by owner, whatever platforms or platforms you decide to use.
You're going to be the one who has to do that. And you're going to do all the marketing for it. You're going to make sure the insurance. Again, insurance. I know we've had episodes about this, but I can never say it enough. You're going to make sure that the correct insurance is on the property because now no longer is that property just a banket property.
Right? A vacant property has a different type of insurance. Now you're running a business out of it. Make sure you have the proper coverage for that business. For those homeowners. And then you're going to set up all the stuff like the cleaning crews and the maintenance guys. You're going to make sure you have all that going for you and sign up for something like wheelhouse, which is your pricing.
Because if you, if you're new to this and you don't have any money, don't, don't count on yourself. Being able to choose your pricing. I would definitely go with some kind of dynamic pricing like wheelhouse. So let them set up your pricing and get it. Now, remember you do all of that, all of that work, and you're going to get a percentage of income.
Now, every single thing is negotiable. Everything in every contract, I E contract people, you need a contract for this, but every single thing is negotiable. So you can work out anything you want. You can do it for a flat fee every month that you're doing. For you can do it for a percentage of the income that comes in.
Just make sure that if you're getting a percentage of income that you specifically write in the contract, whether it's the gross income or the net income, because obviously they're going to have the expenses of the property. Most likely they'll have a mortgage or, you know, the insurances and the taxes and all of the stuff that goes along though, electric, the cable, the internet, um, gas.
Everything, all those expenses are going on there and the home owner or the attorney, or whoever's handling that property, they will still have those expenses. So they might want to pay you after which is called net instead of they'll might want to pay you on a gross it's. Okay. It doesn't matter. You just make sure that whatever they decide to pay you, that you get it in writing beforehand.
Okay. That you've got that percentage down and whether it's gross or. I remember that percentage is very, very negotiable. The average in the industry for co-hosting is somewhere around 20 to 25% and that's usually of the next. But I've heard people getting it off of the gross, meaning the gross means all the money that comes in before expenses.
The net is what you keep after all the expenses. Okay. So I've heard of people getting 25% of the gross income, meaning if it had rented out, you know, and made 5,000 or $6,000, let's say 6,000 and they got 25% of that, that 1500 would go in there. But if you're getting it off the net, that means that all the expenses would come out of that $6,000.
And let's say there's only, there's $5,000 worth of expenses and there's only a thousand left. And then you got 20, that would be $250 out of the thousand dollars. That's left 25% of the 250. So there's a big difference between gross. Make sure that you have that and make sure that you're covering yourself for all the work you're going to be doing, because you're going to be the one, getting the phone calls, getting the text messages from let's just say, Airbnb, they're going to be all the re you know, all that stuff is going to be coming to you.
And you're going to be the one doing all the work. And you also want to make sure that whatever you do, that you set up any kind of open house dates. If the property is for sale. Okay. If it's, if it's ever for sale, you want to make sure that ahead of time you work out what days of the week or what days in the month, that property is going to be open for them to have new buyers, you know, potential buyers coming in to look at it.
Okay. So you want to set that up ahead of time, put that in writing. Put that on your calendar, right. And it's all set up because if it's being sold, if it's up for sale, you've got to make sure that people can go in and look at this property, anytime those guys want, but not when somebody is in it. And that needs to be written very, very clearly, because that would be a huge turnoff for somebody who is renting a really nice property, save for $500 a night.
If it's a really nice property. And then they've got somebody traipsing through looking at the house when they've got all their, their stuff and spread out and they're, you know, they're Disney world or something, and they've got their niece and three different, you know, size families. And they're all sharing the house and the house is a mess and it's chaotic.
And they're like, who the heck are these people walking through the house, trying to buy it? Not a cool thing. You never want to interrupt your guests. Right. So make sure you set that up. And you also want to keep extremely, extremely accurate records for everything, right? Every single thing down and keep receipts for every single thing.
Okay. You just want to make sure that you're getting the money that you need, but a lot of times they're not going to be able or willing to start you with that because they don't know how many. That property is going to make, right. They've never done it before most likely. And so they have no idea about the potential.
So a percentage in this case is a lot better to work with. It's it's honestly the first thing that I would go for and the first thing that I would offer the owner, but you also want to make sure. Whatever you do, their expenses are always, always covered. So find out what their expenses are and make sure that regardless of anything, that their expenses will always be covered.
Have that in the contract too, that says, first of all, your expenses will always be covered always regardless. And then my percentage will come out after your expenses are paid. So let's say you do work out for 25% of the gross. And it still, their expenses weren't covered except for maybe there was only $750 left after all the expenses.
That's $750, maybe less than the 25%, but it would still be all that you are going to get paid. Just let them know that their expenses will always be covered and your pay will come out after the expenses are covered, regardless of whether it's net or gross. Okay. You just want to be fair and make sure you're not screening them because why.
Screw them. If they're ending up paying money out and not making any money, are they going to want to continue with this business transaction? No. And you want them to be happy? You want to see them make a profit too. So honestly, I don't think doing a net is a bad thing. But I would just go for a higher percentage of the net and just say, okay, I want half 50% of the net.
You get half. And I get half after all expenses are paid. And that is actually the best case scenario in my mind for this situation, because that way all the expenses come out and get. Then there's a big chunk of money left of profit on the table and you guys split it 50 50, that gives them the incentive to keep going.
And after all it is their property and their furniture. So, Hey, you don't have all of that, right? That's a lot of responsibility and you didn't have the money anyway. So, what you're doing is for 50% of the pay, I think that's more than reasonable. So I think it's a great place to start or want to end up and you can be adamant about it.
Remember if somebody, if you go to people and somebody says, There are a lot more houses out there don't ever feel bad. If you get a lot of nos, holy cow, you have no idea of all the houses that we've bought and all the things that we've done and all the negotiations that we made, the majority of people say, no, you got to get to like the no's because every, no gets you closer to a yes.
So don't first, don't shoot yourself in the foot by giving yourself way more work than you're getting paid. By lowering and lowering and lowering it until you're not making anything. And you're working your butt off all the time, getting all these phone calls. Right. But then again, don't shoot them in the foot because they're the ones who own the property.
And, you know, you've got to make sure that they're making money too. So it has to be a win-win situation. But know that there's not always going to be people who understand exactly what you want to do and they're going to be leery of it. So you want to have a list of all the pros about this, why it would be a good idea and the insurance coverage and all that stuff that will help you with.
And the fact that you present yourself in such a way that you are a professional and that you know, what the hell you're doing when you walk in there, that's going to say a lot too. Don't go there, dressed in a t-shirt for the love of God. You know, you want to present yourself as a business person. And so wear business attire, you know, present yourself as a business owner because you are now a business owner.
This is a business. Be a business owner, dress like a business owner, talk like a business owner, drop the F bomb. We don't leave those at the door. Don't drop them there. I mean, drop them before you get there. You know what I mean? Don't, don't be swearing. You want to really, really, you know, tighten up all those loose screws before you go in and have all your ducks in a row written down and kind of practice them, practice them with your spouse or a friend, or even in the mirror.
If you've got no one else to practice with what you would say to all of these. Make sure that you go through all the scenarios in your mind of the negotiation tactics that you're going to go through. What would their reasons for not wanting you to do this be so they're going to come at you and they're going to have all kinds of reasons and all kinds of questions, why they shouldn't do this, you know, oh, well what about this?
Or what about that? So you, for every argument they come up and they snap at you. You've got to have a comeback ready for. And you want to do that in the mirror so that you can be smooth when you're confident, the more confident you are, the better you present yourself, the more yeses you will get. Okay?
Confident people just wreak intelligence and that's all you need is some confidence, not cockiness. There's a big difference between cocky son of a bitches who come up to. And confident people who know what they're doing. Okay. Don't be cocky. W it's like the star wars movie, right? It's like, don't get cocky kid because when you get cocky, you get sloppy.
And when you're sloppy, nobody wants to work with you. Okay. You're not the be all end all. You don't have any money. So keep reminding yourself. If you're getting cocky, I've got no money. That's why I'm doing it. This. So never let yourself get too big for your britches. Okay. The more humble you stay, the better you'll do in any of these cases.
So once you get the homeowner or the attorney or the real estate agent to present this to the homeowner, once you get your contract signed and you're ready to go, you're going to do all those things that we said, right. You're going to set this all up just as if it was your short-term rental. You're going to get it all rocking and rolling.
And you're going to get all the people. The only thing when a house is for sale, that you have to worry about is how far out you're going to go. That should be in your terms of agreement. And most of the time they don't want you more than a month or two out. So just know that, just know that if you're going in there in the middle of April, That you'll be able to put April may, but probably not June on the calendar until he gets closer to the middle, because most closes take 30, 30 days, 30 to 45 days close on a big property, but 30 days.
So they don't want you to go too far out, but it's super reasonable to say two months out, you know, to have 60 days out on your calendar. They can always put that in the contract. So if they sell a house with a BNB inside of it, they'll say that can convey with the property. Right. But you have to have in the contract that they will convey those reservations so that you don't have to cancel any reservations if they do sell a house because you will be hugely penalize.
If you cancel any reservations, not just penalize. And losing income and stuff, but you could lose your Superhost status. If you're a super host on Airbnb, they don't want any cancellations. So you want to prevent all that and have all of that in your contract. Every single thing in writing, very, very clear English.
What's really funny is I've heard stories of friends who do. And they actually turn the seller, you know, of a property. So these guys were out there trying to sell their homes. It was a big home. It had been on the market for several months. They started doing this and they started making so much money for the people that they decided to keep the home, decided to keep the home as an investment.
So it's making money. Now, if the money, you know, is, is that good then? Who cares? Keep the property. If it's cash flowing and you can cash it. You know, making thousands of dollars, then heck then keep that in your portfolio, making money. And so the people decided to take it off the market permanently and turn it into the BNB and allowed those people to continue with the property hosting the property.
Co-hosting the property with them. So now here's the one tricky thing that's going to be. Airbnb right now has co-host feature that you can use. But in 2019, that's going to be eliminated completely. So you have to have really good bookkeeping and they've got to be able to trust you. So whether that the money gets deposited into their account or your account or another account that you guys own together is completely up to you.
You're going to have to decide ahead of time. And remember if you're just getting started, you cannot blame these people for not wanting the monies flow through you, because they've got to make sure that it's coming out, but you can use, there are different agencies out there that you can use. I just know people because of all the things that I do, but anytime I do any kind of sandwich leases, any kind of weird transactions, almost all my transactions are weird out of the box.
Almost all handwritten contract. But we as a title company for everything, and we use a loan servicing company for everything, because it just keeps better records and it protects both sides. So if you're buying a property or if you're renting a property for somebody, or if money is coming in, there are service keeping bookkeeping companies out there that will service these loans.
So you can make sure that the expenses are going out. Work out the bookkeeping system with them ahead of time. Okay. But they've gotta be able to trust you never, ever take advantage of somebody. This is a business. You don't want to be responsible for a bunch of money coming in and you don't know what the hell you're doing with it because you are responsible for making sure that those expenses get paid first.
So make sure those expenses get paid first. Do you get. You can never take advantage of people because that shit will follow you around forever. You make sure that you handle money with kit gloves, baby. Okay. That means you've got all your receipts. You've got all your, everything is written down, even if you're really shitty at that, put all your receipts in a shoe box or something and hand it to someone else to do.
Okay. There should be a profit and loss on every business that you do. You should know what expenses are going out and what money is coming in. You need to know that that's how any business runs. You've got to know what your expenses are. You've got to know where your money is going out, and you've got to know how much money is coming in.
Because anything that's anywhere near loss that you're going to have to adjust those prices. Everything is your profit and loss. Tell you everything about how you're running your business and where your adjustments need to be made. So make sure that you're not that guy make sure that you're not going out buying a whole bunch of shit with somebody else's money.
And you're counting that as expenses. Oh, I got myself a brand new computer because that's a business expense for this business, you know, for my new short-term rental business and they're going to pay for it. Bullshit. They are. That's your expense. That's not that short-term rentals expense. You make sure that you're doing it the right way.
Okay. And legitimately and all on the up and up, and don't take advantage of people. You take those profits and you turn, you turn that over to your business and you can have a few of those different ones and you can be making a lot of money and that business that's bringing in all the cash from all those.
Uh, homeowners that business can buy a computer with the money it's made, not those little short term rentals. Okay. You make sure you're not taking advantage of people or being stupid or being no. Well, that is stupid. It's not, I was like, let me find a nicer word for that. There's no nicer word. It's just stupid.
Don't be stupid. Don't be an asshole and don't be stupid. I'm reading this really great book scrum, and one of the rules was don't be an asshole and don't have any assholes in your business. And I was like, that's a good rule. That's a good rule. That scrum is a great book. If you, if you haven't read scrum, it's really, really awesome.
Neither do I. Not anymore. I listen to audible books all the time. I have had audible since 2006. I have literally over 600 books, I think on there. I'll have to count them for you guys. But I have so many books on audible. I've got a deal with audible and it's right. I'll put it right on the link. You guys can get a free book and start your membership with them and get a free book to start listening to and listen to a book a month.
And honestly, Your life expands when you read it really, really does. And I read everything at fast pace, which is probably why I talk at fast pace, but audible is amazing. So I can't, you know, I can't promote them enough because I've been a fan of theirs way before Amazon bought them way before their apps and stuff.
I mean, we used to take them and I still do to take them and download them and put them into our little MP3 players. You know, our, our little iPods that we have, I still have an old, thick, super heavy iPod people are like, how old is that thing? I'm like, dang, I don't know. It was like one of the first I-pads and thing weighs like a ton.
And it's massively huge. Well, now it's like the same size as a phone, right. Or maybe even the smaller, but audible is a great place to go to learn and you need to do. But back to the short-term rental business. Okay. Just don't take advantage of people. Don't be stupid. Make sure that you're following everything by the book.
All right. Now let's go over really quick. What we talked about, what we talked about was real estate investing. People said it takes money to make money not true. And that co-hosting is to short-term rentals. As wholesaling is to real estate investing. And that's really important to know you can do this with no money of your own.
Okay. But it, the less money you have, the more work you're going to have to put in, just know that. It's just like any investing. If you want to be in an investment, you find a great house, but you have no money and you go find an investor to invest with you. Yeah. He's going to get the majority of the money because it was his money that you bought the property with.
You're going to have to do all the foot work and he's going to get as big or even more of a profit than you are because he had money. How did he get money? He was smart enough to make that money someday. You'll be smart enough to make that money. And you can use your money like a bank to. That's just the way the world works.
Just know less money. You have more work. You're going to have to put in. And the key is always marketing, marketing, marketing, marketing. You have to get out there, you have to find the properties, right? So we know why there's like all these different reasons, all these different reasons why somebody might have a property that's empty with furniture at him, but how are you going to find them?
Where are you going to look? So you're going to buy lists maybe at ListAbility or you're going to use Craigslist or Zillow. You might use yellow signs and put them out there. They call them bandit signs. You might find realtors or attorneys wherever you find these people. It doesn't matter. Pick one and go for it.
Just market the shit out of it. Start calling, start making postcards letters, handwritten envelopes. If you're sending out letters from a list. Handwritten envelopes. Nice message inside. And remember, you're going to find furnished properties, furnished properties, only if you have no money because you don't have the money to put into them.
So you're going to be a business partner. Why are they doing this? You know, maybe they're tired or whatever. You don't care. You don't. And you're going to do all the cleaning, the prepping, getting it all, ready to turn it from a house or maybe a house that's empty with just rented furniture inside of it into a BNB.
So the white sheets, the towels, the soaps, all that stuff, the coffee makers, the coffee and the filters, all that stuff. You are going to have to do it. Okay. You take the pictures, you stage it, you list it, you market it. You ensure. You set it up with the cleaning crews and the maintenance guys, you do all that stuff, and then you get your pricing, right.
And you put it out there. You make sure that inside your contract had everything from the dates, how far out you can list it to any dates that you might have to have it open for open houses. You're going to have your fee in there, or your percentage. Like I said, I like the 50, 50 of the net. So that means all their expenses will be paid for of that profit and make sure that you list those expenses.
Guys, don't say expenses because they'll start putting a shit in there that you don't let them take advantage of. You making sure that you have their expenses listed mortgage taxes, insurance, cable, electric, you know, put all that in there. And then after those expenses are met and paid, the profit that comes in after that is split 50 50.
Okay. So make sure that you have it all in writing everything super accurate records. You keep receipts for everything. You have a company, hopefully. If, you know, if they don't trust you, don't worry about it. But you have a company who does all the bookkeeping for you, if you want. That's that's literally what I suggest if you're not good with money.
And that's pretty much why I told you that story, because I wanted to make sure that you're covering those. And the more people that you do, then you can go up to them and you can get them to be a referral for you. You can take a little video and say, Hey, would you mind just giving me a referral? Just telling somebody how you feel about the experience that you've had with me doing the co-hosting for you.
And they'll say, oh yeah, If you're making them a lot of money, they're going to be super happy, super happy to do that with you, you're covering their mortgage or covering their expenses. You're taking care of their property, right? They're going to love to do that for you. And then you can get more and more and more people.
And you've got a nice little business going. And then you're done just, you know, what do they say is shampoo, rinse and repeat. That's all you're going to have to do. We just want to make sure that we're paying it forward. We want you to have a wonderful business, but you have to promise us something in return.
And you know what that is, that is that you will go out there and always do your best to be on the up and up. You make sure that every deal that you do is a win-win scenario and that you never take advantage of somebody. Because if you believe in your heart somewhere that you have to take advantage of somebody in order to make money.
That is a wrong mentality. That's the wrong mindset. And you don't belong listening to my show, honestly, because that's wrong. That is just plain wrong. You can make a lot of money. The more people you help, it's all about people. It's all about serving people. The more people you help and the more people you serve, the more money you make, it will all come back to you.
So I believe in. 'cause I know it comes back to me in the end. Okay. I'm just going to apologize for all is wearing in that one. Okay. Because that was before I was found, you know, because you're lost, then you found then you're saved. So sorry about that, but it was a good episode and I hope you'll come and join us next week when we have a, another rewind and then come November, I'll be back and we'll have fresh episodes for you.
Can't wait to see you.
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