102. Crafting Your Path to Wealth: Mastery, Side Hustles, and Real Estate Investments for Financial Freedom - podcast episode cover

102. Crafting Your Path to Wealth: Mastery, Side Hustles, and Real Estate Investments for Financial Freedom

Apr 17, 202446 minEp. 102
--:--
--:--
Listen in podcast apps:

Episode description

Ever find yourself trapped in the daily grind, dreaming of a life where financial freedom isn't just a distant goal but an achievable reality? Strap in, as I take you on a solo flight through the eye-opening principles of Cal Newport's "So Good They Can't Ignore You," paralleling my own journey from mastery to investment nirvana. We'll dissect the craftsman mindset, and I'll share how the hard-earned lessons of skill development in the first six months of any gig can be your golden ticket to a sustainable income that supports your wildest entrepreneurial dreams.

Prepare to navigate the twists and turns of asset management and growth, from the thrill of expanding a property management venture to the strategic play of leveraging a Tesla in your business arsenal. We'll toast to the small victories with "Profit First" in mind, and dissect the delicate dance of balancing side hustles like Turo and Airbnb with the essential pursuit of personal well-being. It's not just about scaling up; it's about crafting a dynamic where your time remains your own, as we swap stories and strategies on managing the nuances of entrepreneurial life.

And for those with an appetite for the tactical, we drill down into the nitty-gritty of real estate investment strategies, examining 'Subject 2' agreements and their impact on the Atlanta market in anticipation of the World Cup. As we wrap up our session, I ensure all the numbers are on point for you, our loyal listeners, and leave you with a reminder to keep your goals in clear view, as the path to financial freedom is both a marathon and a sprint, demanding your unwavering focus and agility. Stay safe until we meet again on the next episode of the Financial Freedom Mastermind Group Podcast.

🗓️ Tune in every Wednesday at 7 PM Eastern! Don’t miss out on our journey toward financial freedom through smart investments.

👉 Hit that subscribe button and turn on notifications so you never miss an update! Let’s unlock your potential together!

Our Links

➣ Financial Freedom Mastermind Facebook Group - https://www.facebook.com/groups/53083...

➣ Peer Space Host Referral Link https://www.peerspace.com/referrals/g...

➣ AirBNB Host Referral Link https://www.airbnb.com/r/niyia41

➣ Ekabo Home Network (IG, Youtube, Email) https://linktr.ee/ekabohome

Niyi Adewole is a licensed realtor in Georgia, brokered by EXP Realty. Feel free to reach out at Niyi.Adewole@exprealty.com if you would like to work with an investor friendly real estate agent.

Transcript

Speaker 1

Welcome to the Financial Freedom Mastermind Room Podcast . Here we're all out , breaking free from the 40 to 50 year world ride and accelerating our journey towards financial freedom . Join us every Wednesday at 7 pm Eastern as we explore different types of investments that get fast track your path to financial independence .

We serve as a hub for connecting with fellow members during our sessions .

Speaker 2

Seeing them , share successes , ask questions . Host of the Acaba Home Financial Freedom Mastermind Group , and I'm excited to be joining you on this Wednesday , the 10th of April , and on this session it's going to be a little bit different . I'm going to be solo .

My counterpart is celebrating the end of EID today , e and so I wanted to do something a little bit different .

I like reading books , and I know a lot of the Aqaba Home community does as well , and so I wanted to start going through some of the books that have been influential in my life and career and talk through some of the main points , and so today I wanted to talk about a book called so Good they Can't Ignore you , by Cal Newport , and this is a book that's

excellent for those that are working a W-2 or a job while investing on the side and are looking for financial freedom , but also looking to maximize the opportunity you have to use your job as a business partner for you right now , and so one of the first lessons that they talk about in this book is the craftsman versus passionist idea .

A passionist is going back to . You know a lot of individuals on social media . Things in that nature will say , hey , follow your passion right . Follow your passion . You'll find a way to make money . That may not be the case , right ?

One of the best things that you can do is become a craftsman right , almost like Colin Bryant playing basketball , or like a blacksmith that learns their craft . Becoming a craftsman means being so good at what you do that they have to point to you as one of the top professionals there .

For example , when I was working at Baxter , one of the things that I lived by anytime I took on a new role was that those first six months were the most important . I think that's with any role . That's when not much is expected of you .

Everybody's supposed to just be in a learning mode , and during those first six months , that's when you can actually ask any question . You want dumb questions , all that stuff , and really accelerate your learning in any role and really excel .

And so the way I looked at the first six months of any new role that I took on was hey , I need to hit the ground running . I need to set up weekly calls with my manager to understand like , hey , so I can ask questions that I may need answers to without learning along the way .

I'd set up weekly calls with a mentor that's been doing some similar role so I can ask questions there .

And that is one of the best ways that you can really get up and running quickly in whatever company that you're at , whatever role that you're in , is to prioritize that first six months and really try to accelerate your learning , because if you start getting some wins there it just makes it easier down the road .

Plus , if you set that work ethic early and you show your manager and show all your counterparts that you're willing to put in that work early , it gives you a lot of grace in the back end Once you know what you're doing to even if you mess something up , people are going to give you the benefit of the doubt because they know your work ethic because of that

first impression you had in those first six months . So that's a little bit of that Craspin versus a passionist in the book . So good , they can't ignore you . This is a transformational book , so being a Craspin is focusing on where you're at right now and trying to become the best at what you're doing .

They also talk about the importance of building a skill right and it's like anything right when you're riding a bike the first couple of times you're going to hit the ground , it's going to hurt , it's going to be difficult .

And then all of a sudden , after a couple of weeks , a couple of years , things of that nature now you're riding without even having to think about it . Same thing with driving . We all learned how to drive . It was very difficult early on you had to think okay , I got to put my blinker on . Now I need to hit the brake . Now I need to accelerate .

Now I need to figure out do I have a park , am I going to go forward ? Am I going to go backward ? Things of that nature . It took a little bit become great at something . You've got to keep practicing it over and over for many , many years . You look at NBA players , football players , things of that nature .

They say they don't hit their prime until year five , six , seven , after they've kind of adapted to that next level . And it's the same in the business world .

And so you know , taking it back again when I was at Baxter , the whole sales piece , it wasn't until year four and five that we really hit , you know , some of our highest earning years and really crushed some deals .

Because at that point now you've learned the whole business , now you know exactly who to go to to get things accomplished , and you know what your major skill set is and how to pull the team together , and so continuing to build upon your skills is one of the best ways that you can advance your career , make some more income and be able to invest that in to

the real estate piece , which I know a lot of people are doing within the Acaba Home community . Another piece from this book so Good , they Can't Ignore you by Cal Newport , which is an awesome book , is career capital , and I really like this .

I didn't know what to call it before reading this book , but I've definitely utilized this , and basically what it's saying is that you want to become so good at a skill set within your given career that you can then trade in that career capital and all that goodwill that you've built up to take a risk .

For example , when I first joined that healthcare company , I joined as a sales development professional right For a year and a half I traveled around and worked with different reps all over the country , worked with the training staff , marketing , and I worked to put my best foot forward to really showcase he's a hard worker , he can figure some stuff out right , and

so from there I got the opportunity to work with an awesome sales manager in louisville , kentucky , and I did the best I could there . He hyped me up and I was able to get an opportunity to go take over a pump role in boston . I was able to crush it there and then was able to come down to atlanta and a director role and all this .

The reason that you were able to go from one to the next to the next to the next is because you built up the real capital in whatever position you were in and then traded that in right . But I made it known that , hey , I'm looking to get back to the Southeast . It was okay , hey , let's find an opportunity .

Because you built up this career of five years of really executing and I think that's in any role that you're in you got to put your head down and really execute as best you can and then at some point you'll be able to turn in some of that career capital that you built to move to the next level .

It's a lot easier to move to the next level within the same company because now there's a little bit less risk on your side .

You built up so much emotional capital right and so much tenure that if you were to mess something up at the next level and this was always my thinking like , hey , I'm going to move to this director role and if I completely messed this up , at least I know they'll give me the benefit of the doubt because you know , hey , he's going to figure it out , he's .

You know , he's been here for a while , he's done a lot of great things , things of that nature , whereas if I were to jump ship and there don't have that grace , right , they're expecting you to come in and execute immediately and it may take you that six to 12 months before you even know the full business .

So that's kind of that career capital piece from that book . The other piece is the financial viability right . The whole theory about following your passion before you have financial viability in it has some holes in it . Right . Financial viability in it has some holes in it . Right .

Because the way I judge financial freedom and the way I judge being able to sustain yourself in wealth right is if you were to stop working a day , how many hours , how many days , how many weeks , how many months , how many years would you last ? Right ?

And you got to look at your expenses , look at the passive income that's coming in and kind of judge it from there . And so you go to follow your passion .

The way that I would go about it , and have gone about it , is try to do that on the side , whether it's real estate investing , whether it's some other business and build it up in such a way that at a certain point it starts to eclipse what you're doing from a W-2 standpoint .

And once it eclipsed that piece , then you have the ability to move fully into it and it's no longer something that's just your passion , something that's financially viable . So that was another piece in that book so Good , they Can't Ignore you . And then the final piece from that book so Good , they Can't Ignore you .

And then the final piece from that book so Good , they Can't Ignore you was the mission . You've got to have a mission . You've got to have a why for why you're doing all these things , and that why and that mission is going to drive you , and it needs to be more than money .

Right , money is definitely a driving factor , but if that's the only thing , believe me , money is not the answer . You can make a lot within the W-2 , within the corporate world , but there's something behind that and behind that is the why .

For me , it's financial freedom , and by financial freedom I mean literally being able to pack up and take a trip tomorrow , right , and not have to worry about okay , I need to call this person , I need to figure out if this person's going to allow me to do we have the finances things of that nature .

I want to be able to do that with the family and be able to have tremendous throughout the year and things of that nature and the way I even judge how I'm on track for that . Why is I want to see if each day , each year , we can get one step closer to what an ideal day looks like .

Right , ideal day for me can be something of like hey , you know , you get up , you get to go work out , you get to go for , you know , a long walk listening to a podcast , you get to do some work because I actually do like doing work you get to , you know , help somebody out , you get to give back .

Like , whatever your ideal day is , that's what you're building toward , and if you can get there little by little each day with minor adjustments , that's a major leap . But I've been on Soliloquy for about 10 straight minutes .

Again , this is because I don't have a co-host today and it's an open session , so I just wanted to talk about a book that I read a couple of years ago . That was really impactful and the book was so good they can't ignore you by Cal Newport , highly recommend .

But this is an open session and so if there's any questions , any comments and or you want to join , live for free and we will make it happen . Again , reiterating , this is an open session , feel free to join . And Justin , can you hear me ? Yeah , what's up . Can you hear me ? Yeah , what's up . Can you hear me ? I can hear you . It just went dark .

I don't know what happened . I can hear you .

Speaker 1

What's up ?

Speaker 2

Not much , man , long time no talk . I know right , yeah .

Speaker 3

Yeah , how many properties have you ? Let me ask you something first how many properties are you at now under management ? Because I know for a while we hadn't added any , but we added two today on Bookingcom , so it's cool to see . Yeah , man .

Speaker 2

So now , as far as like live 24 , but we have 26 signed . We got two more coming your way here , one in about two weeks , the other one probably early next month . So we are growing . We're going to be at 26 and the goal is to hit 30 this year .

Speaker 3

That's what I was going to ask you . That was my follow up . Did you have a goal for the year ? I feel like 30 is definitely seems to be achievable , given the rake that you're at .

Speaker 2

So exciting to hear . Thank you , man . So exciting to see it . Thank you , man , it's exciting and we talked about it last year . But do you write down your goals or you keep more upstairs ?

Speaker 3

I do write them down .

So I write down some for the year , one of which was to take on a few more clients myself in the bookingcom space and maybe even kind of a stretch goal or just an idea I have is maybe potentially trying to expand and going into this more like digital management of listings , and that could be something that I do , you know , like a broad right so I could .

Listings don't have to be in Atlanta necessarily right for me to do stuff digitally . So that's something that one of which I had written down that I'm kind of still toying with , but that's all an aside to like the property stuff . That kind of all comes second and is just supplemental .

Speaker 2

I like it . I like it Building up the side hustle , Justin , how you doing man .

Speaker 4

I'm living man Trying to get to this money that I'm passionate about .

Speaker 2

What's the passion behind the money man ? What we got ?

Speaker 4

I mean , I know , I think for me it's the same thing that you were talking about earlier . It's the financial freedom , Like , what can you do to set yourself up for the years on down the road so you can live that happy life that you envision ? You know , a happy life is different from everybody , right ? You know ?

So for me it's just being able to spend time with the family . Right , I just had a newborn . So , pushing towards that goal of when she's five years old , I don't have to make a decision whether or not I got to work this job or I'm going to soccer practice , right , I know soccer practice doesn't always come before this job .

So that's what I'm building towards right now . I'm building towards that financial freedom so I can have that option to be able to spend time with my family , spend time with my children .

Speaker 2

I love it . It's awesome and it's a driving factor . It gives you that motivation to keep going because each day there's going to be some challenges thrown everybody's way , right .

I know we've all dealt with different things from a real estate perspective and just from work perspective , and so you got to have a strong why and something that's driving you to say , hey , this is what I'm looking to achieve . And then you got to celebrate some wins along the way , right , like I try .

I know , justin , I know you read the book Profit First , but I really try to put aside that X amount for profit quote , unquote of anything that comes in , because you need to celebrate your wins . There's so many goals that we're going to have . Even billionaires have goals like , hey , I need to get to X amount .

I'm sure Elon Musk has different goals and he's already been made it for many years . So it's one where you have to set aside time to have fun and celebrate certain things while striving for your milestones For sure . Welcome back , man . It's been a minute . How you doing ? I'm meeting you just went on mute ?

Speaker 4

yes , no , I was gonna ask did you think about putting the uh , the previous car , on toro to offset that cost of the tesla ? Right , you know , think about turning your assets into something to replace those liabilities .

Speaker 2

Yeah , yeah , when you talk about the , the car , right , this is one where I made it , and this is crazy Many years into it I made the mistake with a Tesla out in 2021 . I bought the Tesla personally and then , you know , retroactively , I'm like dude , I should just bought that through the business to hold right off . I could write this whole thing off .

And so to your point . One of the ways you can do it is either by quote unquote , leasing it back to the LLC , or just having it outright quote unquote , purchase it and kind of take ownership of it . And I've since learned and done that and it's been awesome . But that's one of the ways to get rid of that piece .

Another way , and this is a little more drastic in my mind , but you know , desmond , justin , I'd love to hear your thoughts .

If it's one of those things where you're like , hey , I semi-regret this , I'm assuming you don't have many miles on that Tesla , you can always just go sell that thing , man , and go buy something cash , right , that's nice , but not going to be , you know , hitting you monthly . Yeah , what are your thoughts ?

Speaker 4

on that . So you're upside down . I mean that generally happens when you buy a new car . It's like you're going to have that drop in value . But think about what .

Whatever your interest rate is , you know , you may be upside down Now , you may be out of five , six grand , but it's like you got to think about that on down the road , like are you willing to forego that penalty that you're going to have in the interest that you're going to be paying anyway , you know ?

So it's like if it's really a long-term play for you and you really don't like that note , it's like that's kind of the those things that you have to weigh . But if you're happy in the car , it's like how do you subsidize the cost of that car ? Right , you know what can you do to offset that cost .

Speaker 3

So I can't be happy with the answer yeah , if you ask him about it , no answer . But no , I agree with what they're saying .

Speaker 4

I know it may suck now , but that's a great lesson learned , right ? Don't buy a car new .

Speaker 3

Let me ask you this so you mentioned that with the Turo , it was just like stressing you out . You couldn't do it . Could you eat that stress for the dollars that you'd be gaining ? Or if you can't and maybe your job is , you know , you have to work on your job during the days you'd be doing Turo could you bring in maybe a car manager ?

Yeah , that's what I was going to recommend . I guess it'd still be a property manager . You give them 20% . I'd do it for 25% . I'll take your car to the airport . Is it really $30 a day ? I feel like maybe it is . If it's that cheap , then it doesn't sound like it's worth it .

But but there's so many of them too , probably on tours , especially the , the teslas . Yeah , so that's what I'm talking about touring out to tesla because you sold the camera , so the camera's out of the question , so that's camera's gone . Do you have to drive to work ?

And just last last comment I want to say on it too Like , maybe another option maybe this is a little farther off is like could your LLC buy like a beater for like four or $5,000 .

You start driving that and then you put your brand new Tesla on Turo and then rent that out and then have me take it to the airport and bring it back and make sure it gets cleaned .

Speaker 2

I'm trying to push my side hustles right , it definitely works . I mean , Desmond , do you do tarot ?

Speaker 3

No , I don't . I've really really really thought about it , but I kind of feel like , can I ? I don't have the time . I barely have the time to do Airbnb . I don't think I have the time to be taking the car . I live five minutes in the airport . Taking the car to the airport , making sure they didn't bust the tires and all that stuff .

It'd be too much of a headache . I feel like I'd be stressed them in it driving around , I'd be checking them on the app and shit . If I haven't done it . I really thought about it , I want it to , because I definitely think there's merit to it , but I think , with denial , I'm too stressed out . No , it's $30 a day for the Camry .

It's $80 a day for the Tesla Right .

But what I was saying , though , is that it's definitely stressful to run the Turo , no doubt , but if you could bring in a car manager I was joking about myself , but if you could bring in someone who would be willing to do that for like 20% , I feel like you could find someone , and you could still maybe profit from that and drive a beater around that your

LLC is owning and then be making money . I feel like there might be some reasonable math to do on that ?

Speaker 2

And we have somebody within our network right . Aj has a bunch of Turo's . He has , I think , three or four . He'd be happy to hear some tips on how he kind of manages it . But yeah , I think Turo is an option . I personally , I'm with you , I'm kind of with Desmond . I'm a little bit nervous about it . I've never tried it .

I haven't even tried it as a renter . I know it's viable . There's a lot of people that are doing it within our network . I just have not tried it yet or put in the systems for it .

Speaker 4

And Keneo , what is your return on your time spending cleaning that Airbnb ? I know you said it's like a $200 cost , but , like , do you feel that is worth it or could you like really buckle down and try to find somebody who can clean that thing cheaper , right , you know , so you can get your time back ? How many bedrooms is it and what's your cleaning fee ?

On your bookings ? Yeah , I mean , I have a five bedroom home that I'm getting cleaned . I mean , I'm not charging 200 for , but I would say for . On Airbnb I charged them 189 . I charged a 189 cleaning fee . On Airbnb , 150 , like 2,800 . Yeah , I mean , but I'm just thinking from a skill set point .

Right , that's valuable now , but , as you say , you're trying to acquire another property .

It's like at some point those things are going to turn and if you're taking on these additional tasks now , it's going to limit your ability to scale quickly , right , because now you're thinking about oh well , I can't pay the 250 for the cleaning fee is like sometimes you just got to try to pass them on to the guests .

You know , I don't know if you've tried to see , like , what it looks like if you increase your cleaning fee on airbnb to see if you can help offset that cost a little bit , because you know the cleaning fee is a one-time fee on the booking , right , it's not as ? Oh damn , can you turn your mic off ? Yeah , sorry , yeah , I got you .

But I'm saying , take the delta of what you could charge more to the guests , right , and then if you could find someone to do your cleaning cheaper , then you take the delta instead of getting the whole 200 , like maybe you make a 100 , but it's like you get your time freedom back , right , okay , we can talk shifting gears a little bit .

Speaker 2

Cam how you doing man , been a minute hey , I'm doing good .

Speaker 5

Is my mic like giving you guys feedback or something ?

Speaker 2

no , you're good , more typing you are good but how you been good how are you doing ? Super good and it's cool to actually because fun fact um cam , a couple months ago , started joining my gym . I was like hold up , I recognize that guy . So , uh , like me he's a morning warrior . Uh , I don't know what time you get up .

Speaker 5

We're in there pretty early , getting after it in the gym yeah , I haven't been in there in a bit like my work really picked up . So yeah , I haven't been in in like a month . I Like my work really picked up . So yeah , I haven't been in like a month . I've been working out at home so I need to get back in there .

But yeah , that was weird that we showed up at the same gym .

Speaker 2

I was like hold on what's up , man yeah .

Speaker 5

Like 5 am , yeah , yeah .

Speaker 2

Yeah , what's new in your life , man ?

Speaker 5

How's the B and B coming ? How's the house ? Yeah , um , it's going good . I think , like the last couple of months , we've actually done um better . I would say like we lowered our prices and stuff during the week and that seemed to help a lot . I think at this point , like we can really get as high of an occupancy as we want .

I think it's just a matter of like how how many nights we want booked and stuff like that . Like with our prices . It really just came down to like lowering our prices , I think .

Speaker 4

So yeah , how did you come to that determination to lower ? I've been struggling with that right . I'm about three or four months into hosting and , like I'm struggling with kind of setting my base price , so I'm trying to identify like should I go lower or what should I do there ?

Speaker 5

Yeah , I mean the idea came from this group . Actually it was just like one of the calls needed . I forget who was on , but he basically said you should try lowering your prices , like we were . We just had low occupancy during the weeks . We ended up trying that and it worked really well .

We use price labs and really like what I did was I kind of took like their recommended base price and , just like I don't know , went underneath that , basically like undercut it , and then during the week I think we have like a 20 or 25% discount like per night to like their recommended prices .

So we just came in like below market and we clean , we clean it ourselves , so that helps a lot . I would say , um , so , like during the week . If we get like a one night booking during the week , it's probably like $80 or something .

Would be our like take home after Airbnb takes their their cut and then we have like a 50 one night cleaning fee , so still like 125 for like a weeknight , which is like pretty good . Um , but that's like if you can do the cleaning yourself how big is your space ? um , it's probably 1200 square feet . It's like three bedrooms , two baths .

Yeah , I , I'm tired of doing the cleaning . Honestly , that was one of the things I was going to talk about on this call was , like it's been a lot to do the cleanings . My job is flexible to where , like , I can work from home and like clean it during my lunch break , which is what I've been doing . We stopped allowing one night stays like a week ago .

Actually , we're just going to see how it goes , because we were getting a decent number of one night stays , see how it goes because we were getting a decent number of one night stays .

Um , but yeah , so I , we , we thought about like hiring cleaners , but I think it was going to be like 125 , uh , to have it cleaned and it just like most of our stays are two night stays and for a two night stay we're probably getting , I don't know , 350 to 400 or something total .

So like paying 125 for somebody to come clean just kind of eats into it quite a bit . So that's why we haven't , but I don't know if anybody has any thoughts on that .

Speaker 4

Just one last question . What'd you say your nightly rate was for the three suit ?

Speaker 5

Honestly it changes so much . I would say , during the week it's probably like 80 to 90 a night , like before the cleaning fee and stuff , and then on the weekends it can probably range from like 125 to 200 or so , like depending on the demand . I guess , like we use price labs so that fluctuates . But the cleaning fee , what , what ?

No , the cleaning , the cleaning fee is fixed . I think yeah .

Speaker 2

So , with the , with the and I think we have an expert on here that can talk about making a transition from cleaning yourself to hiring cleaners , cause your time is more valuable right , you're already saving money on management cause you're managing yourself . You can definitely check after the cleaners because you live on site .

But , desmond , do you mind talking through your experience of getting over that mindset and sharing a little bit of background with Kim ?

Speaker 3

Yeah for sure , kim , I know you're paying Me and my girlfriend were doing the same thing for like three or four months cleaning the unit . So I've got a one one and I've actually got two one ones that we started about a year ago and , yeah , like you can do it for a while .

It's helpful to like learn the cleaning process and whatnot , but I think after a while you just get tired of it . We especially got tired of it because there's no laundry on site . So we were at the laundromat like yeah , it was brutal .

But I think one thing that might change with your stays like if you do bring in a cleaning team and like have maybe a higher cleaning fee is that like your stays might just become longer . So I started a new Airbnb where the cleaning fee is a bit higher . I've noticed that the stays have been longer compared to the ones where I have that lower cleaning fee .

So I'm getting a lot of like five days , a lot of seven days , and that's a two one .

But I would say , like you realize that eventually it's just a necessary evil that like , as you continue to scale , it's impossible that you're running around and cleaning all the units and like doing your job too , because my day job sucks flexible to the point , so I can go , like you know , clean during the day , like pop in , but yeah , like you know , I

would say like , as you guys are able to do it , it's nice because you can definitely increase your cash flow for sure . But if you are getting tired of it , now could be a good time to like start shopping around . I know Nia and I use Turnify . They're great , right .

So that's one service I could definitely like recommend myself , and they're cool because they work with like multiple cleaning teams , right . So if one falls through you don't like one , you can use another , yada , yada .

But I think , yeah , like with scale on the short-term side , it's inevitable , and also just with your time too , like you're going to want to take vacation , you're going to want to go do something , and like being your own cleaner like really like prevents you from that , or you have to block off your place . Yeah , which kind prevents you from that ?

Or you have to block off your place ?

Speaker 4

Yeah , to his point like who are you trusting when you know once you do want to get away or , heaven forbid you have an emergency right ? You don't want to lose out on all that revenue you could have gained had you had somebody that could step in and place right .

Eventually you want to get to the point to where we can replace our shelves in this business and it just kind of , you know , goes on its own . Me talked about it a lot getting VAs , getting people who can kind of help you subsidize all the little things that it takes to run the Airbnbs , so you can continue to grow and continue to scale .

Speaker 5

Yeah , and you guys charging like right now , I think , for a two night stay , we're charging like a $50 clean fee , which I think is pretty attractive to people .

Speaker 2

So I don't know like are you guys charging like a hundred bucks or something or like what do you think would be appropriate for like a guy for a three , two for a three , two , right ? Um , but we have a bunch that we manage . We're charging one , 50 , right , desmond just said , and it's .

It's going to be scary at first Cause I know Desmond was right around that Like hey , I'm charging about I think you were charging $50 . I'm charging about I think you were charging .

Speaker 3

were you charging $50 , desmond , is that it ? I was charging $50 and it was really even like 40 bucks , and going from that to like a hundred bucks , I'm like , dude , like no one's going to book this .

But then if you look around and you look at all the other BNBs , you're like well , shit , like everyone else has these high ticket cleaning fees because it's just like a necessary evil , right , like that's what the cleaning teams are charging . So it's kind of what you have to forward to the guest .

Speaker 2

Yeah , yeah , it's one of those things , cam , where I love what you said . I'm actually going to take a look at that and even think about setting it to where it decreases it by a percentage just for the weekdays . That makes a lot of sense , especially if you got your weekend booked up . You're already doing stuff there , like you're already making the move .

I think . Just some some minor adjustments taking that price up on the cleaning fee to 150 so that you can get a little bit more , and then making that minimum stay like two days right connected to minimum two-day stay . Right now it kind of spreads out that cleaning cost amongst a bunch of people because you're thinking about six people paying for cleaning .

Speaker 4

You know , yeah , he's not much thinking about six people paying for cleaning , you know , if there's not much split among six people , and something that you maybe could do too , cam , is like , instead of dropping all of it into the cleaning fee , if you're , you know , scared about that , maybe you can spread it out with the nightly rate too .

Like , say , 3% increase per night , then a 2% increase on the cleaning fee , right , and then it was up to getting you back to the number that you really want to get to , right , because , you think about it , we go in the store all the time .

You've got all these different prices like one can good is $2.99 , the other one was $2.87 , and you're like , oh , I get two more ounces here . You don't know what you're paying for . At the end of the day , you're just taking what seems like the better deal . Nobody's doing all the math .

So if you could kind of figure out a way to offset it like that , it could be advantageous as well .

Speaker 5

Okay , yeah , I guess I'll just have to give it a try and see how our occupancy like keeps up and stuff . So yeah , because I definitely can't keep doing it forever .

Speaker 2

No , I love this though , and it does encourage to your point , to Dezen's point longer stays . And you know , what I think about is if somebody's staying for five days , that $150 is negligible . It's split up over five days , it's only doing a one-night stay and things of that nature .

Even then , if somebody needs it for one night , we still charge our full cleaning fee . We don't even adjust that . At the mansion we're charging an $800 cleaning fee . It's completely different . I get it , but people are paying 800 on top of a booking for one night . Right to go . Uh , the minimum is 13.50 . Right , but it goes up .

Speaker 5

I mean , there's people that have paid like two , three grand for one day , depending on what day that was . Okay , yeah , I know that's helpful .

Speaker 2

So it's two completely different spaces , right , uh , when you look at you know , going glow , we'll call it going for , like the smaller units , things that those tend to get booked up a lot easier and quickly .

Like , a one bedroom is going to get booked up all the time because your price is just lower , right , like across the board , and so it's attracting a lot of people to come in because it's just cheaper . Right , like hey , one or two people can come book this thing .

If you go big , right , what you're doing is you're moving into the luxury space and so the furnishing costs go up like crazy . The furnishing for that mansion was nuts , I want to say it was about $150,000 all in , and that doesn't include the pool that was put in the back . That being said , it's pulling in like $30,000 , $35,000 a month .

We've got people coming to go , film stuff and things of that nature , because there's nothing like it . It's just it's different . Like the space , like if I was going to go , if I didn't live here , and I was like , hey , me and my homies , or me and the family are going to do a reunion . We want to book a cool space . Yes , we can put 16 people into .

You know , $3,000 a night . It makes a lot of sense , and so it's one of those where you want to make sure everything else is shored up before you go big . The reason these guys go big is because they have a lot of income coming in from other areas , and so they're like all right , I'm going to go big . I'm actually in discussions . It's funny .

We literally had the discussion with the owner of the property earlier today . They'd be able to get a mansion in Brookhaven for subject to , because it has been selling a lot of stuff going on . But it's like semi scary , right ? This mansion's listed for 1.7 and that's what we would have to buy it at Six bedrooms , six baths , brand new build , all that stuff .

But it hasn't been selling . And so what we propose is basically taking over subject to . But looking at the furnishing costs alone , even if we do this on the cheaper end , like Facebook Market and things of that nature , you still gotta put quality in there . It's gonna be 80k . That's 80k before you make a dollar , right .

And then taking over that mortgage the mortgage is 16k a month , right ? So okay , so we need to make 20k before you even make a dollar , and then everything that you do like maintenance-wise , it's all a lot higher . The main thing that helps and kind of differentiates you when you go to that bigger space is the fact that there's not much like it , right ?

So you don't have to compete on price . You can raise your price to the roof and people will pay it , and you start to attract things like movie producers and TV shows that'll pay you a exorbitant amount to come and use your space . But it is a completely different landscape and it's one where you got to have all your ducks in a row before jumping in there .

Because the only reason I'm looking at this one is because if we get a subject two , then instead of having to put down 20% , which is nuts , and then another 100K , we just put down the 100K and then kind of go from there . Yeah , fair enough , another bathroom , maybe that's fair . Sorry , it was all mine .

Speaker 4

I'm like dang , I'm looking at the numbers , I'm like yo , this has got to be . Go ahead To your point though . That's just your opportunity cost , right , you're looking at the wins that you could have . It's like the whole attitude is it takes money to make money .

When you get into that space and you get into those things like that , it's like you're taking that risk , so you're reaping the rewards as well . You know , with your knowledge base and how you strategize on the things previously , that gives you more , more thoughts to go out and do something like that .

Right , you know , and you have those reserves and but you know it's still risky . But because it's risky , that's why you can make the 10 , $20,000 a month , you know , once the get that thing really rolling right . But oh no , you're good .

I mean because I mean I think about it from the standpoint is like some of those costs that you're speaking of is like those are one-time costs , right , and then you got to work . Just worry about that . 16 grand a month if it would . You know , it'd be nice if that was a little bit lower , but it is what it is .

Speaker 3

you know , yeah , I was gonna say I feel like I have to repeat what you said , that saying of like it takes money to make money .

I feel like I have to tell myself that , like every week , when I'm like occasionally bleeding out right , especially like during setup phase , right where , like I feel you right when you're I'm at 80k in before I make a dollar , but I'm like 25K in before a dollar . 10 , 15k for renovation , another 10K for Airbnb furniture .

It adds up quick and it can make you a little nervous . Even though I've been here before , I did the same thing last year with two units . It worked out well . The unit I'm doing now is across the street , so I had no reason to believe it wouldn't work out and so far it's been going well , thankfully .

The streets I had no reason to believe it wouldn't work out and so far it's been going going well , thankfully .

But still I was nervous , like like I'm 25k in debt on my personal name , no llc , right where , if this doesn't work out , and for some reason , oh , you know , even beyond the sun , right , the guests report , oh , someone breaks in , you know , pest problem , whatever , take it . And now I'm like , okay , I'm responsible for that .

So I think , just keeping that thing in mind , I definitely think it's important in the real estate game , and especially in short-term too , where you do have to spend a good amount before you are bringing in those dollars and it is like a gamble .

Speaker 4

But we were talking about it earlier with Kano , right ? How do you pronounce your name ? I'm sorry we were talking about earlier with Kanaya , right ? What's your extra strategy ? You know , like you said , desmond , you highlighted all those risks and all those things that can be scary .

But if you have an extra strategy that makes it a little bit easier , you know it's like all right . So if this deal does go sideways , how can I get out of it ? Right , you may not get everything back that you put into it , but it's like you just get out of the deal at some point . You know everybody has .

You know we'll probably get to that age where we buy that classic car , we're putting all this money into it and we know we can't sell it .

Speaker 2

It's like we can get out of it at some point in some form or fashion . You know , in and with real estate , the thing that I keep coming back to is just the time horizon . I know a lot of us within the Acaba Home Network are getting our first or next property .

But having gone through a full cycle of a couple of properties , man , it just gets better each year . Like you'll just start to realize , hey , that first property you got when it's three years , four years , five years down the road you can't even find something for that price . The rents have been going up .

I'm sure you're starting to do renewals and things of that nature . It's like , okay , it gets sweeter and sweeter , and so that's what keeps me going with getting more . And then also the fact that we're in the sixth largest metro . We just jumped two spots and beat DC as the sixth largest , so that's the bet we'd be making on with the mansion .

That's why I can feel comfortable with that . I'm not even really expecting to make cash flow . I think it's going to be basically break even across a year when you factor in expenses and all this other stuff that you got to do to really make it desirable . But within that three-year seller finance or 31-month seller finance if we do get this together .

There's still a lot of ifs and a lot of asks on their end , but if we do put this together , you got the World Cup , you've got this still being a metro where a lot of individuals are moving to , and what we're betting on is that this home is going to be worth more because interest rates should come down a little bit if the Fed does what they said

they're going to do right , and that we'll be able to sell it for 2 million plus , and then you just essentially double those funds that you put in . So that's kind of the bet .

The bet that I'm making is that , hey , the Metro of Atlanta is going to continue to grow and be a desirable spot for people to move to , because all the jobs and things of that nature and companies that are moving here and that's what you got to keep in mind- A quick question to that point .

Speaker 4

Nii , so , because if you do get a Subject 2 , you wouldn't be eligible to do any type of refinancing if the rates did come down , would you ?

Speaker 2

Because technically it's not under your name , so the title is going to be in our name , right ? So the title would transfer and that's the cool thing . They would just hold the mortgage . And the way that we work in the contract and we talk plainly with anybody that we do this with is that's going to be the trigger .

Right , because they owe 1.5 and we owe them 200K . Now , if we do the subject too , right , and so we're going to have title at any time , there's no penalty , we can refinance or sell it at any time , and then it just becomes like having a mortgage with a HELOC .

Right , the mortgage is the first position , so the 1.5 gets paid first because it's on title . And the next thing on title is the note that they have signed , so that $200K gets paid for second . So if we sell it for $2 million , we're really making $300K because $1.7 is gone , and then we make above and beyond that . It's just locking in .

Hey , we're getting at this price . Now , if interest rates come down a little bit , if the market shifts , if the World Cup drives all these people that want to buy and move to Atlanta which I'm hoping it does then we sell that thing and keep moving .

Speaker 4

You know , I know it's not , but it kind of sounds like a wholesale deal in a sense , like because you're locking it up for $200,000 . And like if you can find somebody to get off your hands on down the road , then you just make the deal .

Speaker 2

That's exactly it . It's an owner that's in pain , right , this person's been . He's actually a little bit behind on stuff and whatnot . They're paying for a lot of time and he's been building this thing up . He probably has X amount tracked in it and each month it's just like all right , 16k , 16k , 16k .

It starts to add up after a while and he's not able to do other projects that he's focused on , and so this is where , hey , we're going to take over that risk . For him . There's risk as well . Right For us .

We don't have to go to a bank and things of that nature , and if it's not working out , we can walk away and just lose the money that we've put into it , but nothing else .

Speaker 4

But the 200K gives them . What If his mortgage is 16K ? That gives him at least a 10-month parachute right .

Speaker 2

Exactly right , we're paying the monthly mortgage , we're paying that mortgage down , so it kind of builds up a little bit of that delta for him , if that makes any sense . Right , the mortgage is going down and that's our incentive .

Like , hey , we're putting all this money into it , but his incentive is , hey , it gives me more time , and if they default next year , maybe the market's a little bit different for luxury homes than I can follow .

Speaker 3

Yeah , the great episode on Subject 2 that just came out on the market . I think it's like the latest episode Really good . There's like an expert guy of like 40 years and that's just in general , a good podcast .

Speaker 2

Yeah , I'm talking about insurance and stuff and like hey . I didn't even think about that . I didn't even think about that piece . But yeah , that's one to pick . It makes you feel it does , it definitely does , it definitely does Do any of you guys watch the Bear .

Speaker 4

I don't . What is that the Bear ? It's like a cooking TV show , but they lunch . It's based on cooking , but they lunch at a restaurant .

Speaker 2

I mean it won like Is that the dude that turns them around . He turns the restaurants around .

Speaker 4

No , no , no , the Bear is like a scripted series , but the premise is this guy . It's like a scripted series but like . The premise is like this guy's working in a restaurant , okay , but yeah , I mean you should check it out .

And the reason why I say that is he takes over a restaurant after his brother kills himself , right , and they're bleeding money so they're trying to figure out how to get the restaurant up and running . This guy is a Michelin star chef .

He has a small restaurant in Chicago that they're trying to revamp , but like they have to pour a bunch of money into it , so they have to go to the uncle to give them a loan . So the uncle's in the deal , basically subject to because they write the business off to him .

Commercial real estate is down because of COVID , so it ties all of this stuff in to where there's all these real world problems in the scripted TV series .

Speaker 2

Ok , well , I'm down to take over a restaurant subject to you . All right , that would be amazing . I did not have to sink a whole bunch of money into it . So if you know of anybody , especially the interesting star rated chefs , please let me know . Come on , man , absolutely . I know .

We're looking at that and the connector a little bit and honestly we actually just helped somebody we should be closing late this month . We just helped somebody get a dope house . It's not like a house hack , we're looking at things in nature Amazing house , incredible house that was just built this year in Mapleton . So Mapleton is growing .

Man , there's so much going on there . What is Connected ? Connected ?

Speaker 3

going out there . Yeah , what is connector ? Connector , like right into the bell line or what is . Is that ?

Speaker 2

it's like , connect it almost . It goes into Vining , like it's a connector into Smyrna Vining , like it's almost like you know how I-20 cuts across Atlanta . Yeah , the east-west connector cuts across Nectar , cutter Cross , mableton , all the way to like my name , vinings .

Speaker 1

My bad .

Speaker 3

That area is really nice . My mom was a right of toss from the baseball stadium and , like the Smyrna and Vinings area especially , is really really nice . Yes , it's not bad .

Speaker 4

Do any of you guys like look into city planning and stuff like that ? So do you guys look into city planning ?

Speaker 2

I mean it's amazing . I get the cliff notes . I don't like looking through all the drugs or whatnot , but I do get the cliff notes and they're putting somewhat of upwards of $5 billion into downtown . The new thing right over there by the stadium yeah , you know they already built the one insignia tower .

They're building a whole bunch out and it's in anticipation of the World Cup . They're trying to do a lot downtown because downtown Atlanta it's been neglected for a while .

Speaker 4

I mean it is basically since they did the major renovation for the Olympics , right ? So it's like we're right back into that . That's what , that 96 ? We're coming up on 20 years here soon , yeah 30 years .

Speaker 2

30 years Coming up on 30 years that's crazy . Bad math , bad math , bad math . Well , that was the Olympics . I think it's the first time that the World Cup's coming here . Yeah , first time .

Speaker 4

Very similar , you know , not as grand in scale , but very similar . What ?

Speaker 1

years 26 .

Speaker 2

Yep , yep , a bunch are going to be here . It's all over the US . I kind of wish they just picked like hey , just stay in Atlanta . But we have enough coming here that there's going to be a heck of a lot of people .

So that's just a warning Make sure that you got your B&Bs up and running , that you don't open that calendar up then unless you got a high price .

Speaker 4

That's why you got so many dope houses in Atlanta now .

Speaker 2

This is true . This is true , this is true . But , guys , I appreciate you joining on this Wednesday . Cam , I got you after this and we will catch you a little bit later .

Speaker 4

I'll drop it in the chat . Drop it in the chat . Yeah , you guys . Oh shit , wait , Wait Ty , you got that 456-2383 , not 478 . 478 , not 479 . So 478-456-2383 .

Speaker 2

Yeah , and done . All right , y'all .

Speaker 1

Keep safe . Join us every Wednesday at 7 pm Eastern , as we explore different types of investments that can fast-track your path to buy .

Transcript source: Provided by creator in RSS feed: download file