원문 보기
from firefighter to a landlord with multi-millions of dollars in Revenue operating a property management business and many different horizontal and vertically integrated businesses this is a video that you want to watch if you want to see how to go from W2 job to becoming an investor and an entrepreneur but also if you're interested in where to make money in real estate here's how Peter is figuring out how to make more money with real estate let's go today we have Peter of rencon property management here now what's amazing with Peter's story is that and I want you to tell the story but let's just put it this way you went from fire captain to the best property manager I've ever seen in the world and you're a real estate investor and you're a father of three you got to fill fill fill in here how did this all start because it's really inspiring it's really amazing wow yeah I don't feel like I I live up to all that but um so I'll give you the quick version so we can talk about some other stuff but so worked for the fire department figured out quickly that like you know I needed to have an alternate income Source passive income real estate just because you hit sort of a ceiling of of like what you could make even working hour time ranking I think it had more to do with like I've always been kind of a serial entrepreneur okay and working for the government was a little challenging right for from the perspective of I like to do my own thing and control versus bureaucracy yeah and and you know when you're young and you're like oh the fire department be a firefighter that'd be super cool and and it was and it was a great job but eventually like the the entrepreneur side of me was like okay this is interesting fun I don't know if I want to be here for 30 years doing this type of a thing so a captain yeah yeah yeah over yeah I did which I mean I don't knock the fire department it's a great job great career great bunch of people but just ultimately didn't suit where I was going so personality wise like you had to have that that entrepreneurial Outlet exactly yeah and you were doing both for a while you started your entrepreneurial side hustles while you were at the fire dep oh absolutely yeah yeah so the the first thing I did was I started investing in real estate out of state real estate oh where' you buy Nashville Toledo a little town called Bonner Springs in Kansas wow and then a a little town in Texas called new Browns and how was that I made a ton of mistakes yeah so no no it was good I got to hear about these I mean I I wouldn't change it for for a minute but I'll back two steps up the reason that I so I initially bought a house here in Ventura a new house over at off telephone okay in addition to my house that I was in cuz um it was pre2 2007 right and it was like oh you can't go wrong here interesting bought the house rented it out to a friend um which is how I figured out I didn't like property management companies because I was you know trying to with them and they're terrible ex yours anyway just by luck so sold it literally right before the crash and the reason that I sold it was my wife was a teacher we were having our first baby and I didn't want her to have to work I wanted her to be able to stay home and raise the kids so I'm like well okay this isn't going to work I can't I need to create an alternate income Source if this is going to work so that's why I sold the house in Ventura leveraged it overleveraged it into I think 10 or 11 units um in multiple markets which was a mistake for sure oh my God in the hopes that I would produce cash flow to to to keep her at home or start to go down that Journey well it was all good until the Great Recession hit which literally like as I was closing these properties like the market was turning and uh def I held on I didn't like go bankrupt or or lose it all but I mean it stopped me from like my forward progress because I was hanging on on the whole way down versus buying more like I compare it to another firefighter I know who started real estate investing right after the Great Recession wow and he never stopped and he's he also has since left the fire department early but he has you know a ton of units and just a difference in timing and then that's not why he was successful and why I wasn't but just two different scenarios and so anyway long story short that's what got me into real estate if was it useful to have that firefighter salary that W2 to buy your real estate so absolutely it I mean well and then having the firefighter salary and starting a business is an incredible opportunity because I literally started a business that I did not rely on at all like whether it made money lost money it didn't matter wow cuz I had my I My Lifestyle was set up on my firefighter salary so it was all house money essentially right and any deal you closed so to speak was just bonus money at your new business which is great because I feel like sometimes you work with real estate agents and that's their only income and maybe they're newer or they're having a hard time or whatever but you can almost sometimes feel when there's like blood in the water it's like I need I I need to close this deal and when I feel like when you get into that mindset it's really hard to actually close deals like other people notice like desperation they on you yes where when you're in that situation you described I wonder if that actually not only makes it less stressful for you to actually start a side Hustle but to actually probably makes it easier for you to succeed in that side hustle well it was a competitive Advantage other people didn't have the luxury I had which is they needed to make money they maybe were desperate maybe they needed to close those deals where I didn't and then I it allowed me also to like go undercut the market like I started the management company vastly priced way below my compe editors which in hindsight I don't think was the best idea but it is what it is but I was able to do that only because I didn't need to make money in the beginning right which is not normal like that's not how most businesses start or are you know small entrepreneurial Hustler type businesses so yeah no kidding you're usually trying to get every penny together just to survive of the business just to pay rent or mortgage or whatever so that so yeah that was in 200 12 or 14 that's when you started your management business when I started the management business real estate sales I didn't know anything about I mean I was young and dumb and had no idea really what like I don't know like I don't have a good answer do you think in hindsight you would have gone sales and management maybe or just or you like management so part of the strategy with management only was to entice Realtors to refer to their clients to us this did that work yes and no this is a hotly debated thing in the property management industry like you should have sales you shouldn't have sales it depends on where your clients are coming from I think I think if I had to do it all over again I probably would have done sales sooner and and sales is possibly on the horizon in the future I just currently don't do it now we have referral partners and like if I go start selling I'm basically going to blow up those relationships kind of right which there's a risk of that at least yeah or the yeah if you don't delicately like maneuver the best way I mean you know you were in the business people property management companies steal listings from Realtors well of course I mean the seller just by default is dealing with the manager all the time and so when they need to sell the first thing is when's that lease up yeah oh why are you asking oh thinking about selling well yeah exactly exactly why don't I help you with that yeah yeah yeah I mean that's but then then you wonder uh is that is that also strategically a you know a 10x Revenue opportunity I don't know so the argument in the industry is you're foolish for not selling so you can still keep your integrity and protect your referral relationship don't take those listings but you're giving up so much money yeah by not selling sure because I mean if if you make you know 150 bucks a month on on a property uh for property management you've got to manage the thing for like 10 to 15 years to compare to a commission check yeah and then I mean we there're still we get a referral fee but it's not the same so then I was negotiating like better referral fees that I could pull off which was helping yeah um so I guess it it depends it's just the reality is is like where are you going to focus your efforts in your business you can't do it all yeah you have and then you just like laser focus on something tell tell you wire it and then go to the next thing and the next thing and oh that's an interesting phrase until you wire it so do you feel like you've wired your property management business so the property management business I don't want to say runs completely on its own but I almost feel like I'm not needed there most of the time right so like we have a leadership team we have how many people we have now 13 yeah 13 13 and half of them are remote how many properties you managing coming up on 400 wow I remember back when it was you and one person in that old office yeah in that little closet office that we had yeah I mean it was like 80 square feet yeah literally that's amazing though my closet was bigger that because that's actually so cool like that's that's so inspiring because it's like here working at fire department you're starting start small uh hire one person you you grew to 13 people in 400 properties yeah and so I mean my other strategy is well let me back to your question the management company is dialed there's workflows and Automation and processes and AI a little bit we have sales marketing we have all the functions of a business and it pretty much runs like a top like doesn't mean there's not problems occasionally for sure are but it doesn't take all my attention my strategy now it I'm basically vertically integrating all the other businesses that surround Property Management so what else two years ago we started a Contracting Company no which I know you had a rough rough go with no okay you have to tell me about this yeah so it's called quick turn maintenance it's a license licensed contractor uh we have two uh on staff handyman technicians and then we sub out the stuff that we don't do is this for your property management correct are you doing remodels for other people not currently okay yeah that's that's the danger spot yeah so so we so the contracting business survives on our portfolio that we already managed ESS we are the only customer of the Contra that's great that is actually a very delicious style of like Contracting because now you can do you could have uh the correct workers's comp you could have the correct insurances the general liability insurances you could pull the permits when you need them you could do the work you need to do finding great handy folks that's hard so having that is a good Edge yeah and they I mean it's all about control right construction people are they're difficult it's a different breed of people as you know um so that so we're doing that and it's funny you say that because like we've again for like the first two years worked out our systems and processes made sure we had it all kind of figured out yeah I am anticipating turning around and facing the public yes not like Joe homeowner who wants to call to have his toilet fixed but more like other property management companies or our realtor referral partners that we potentially could do some work for so you're shaking your head let's hear it let's hear it let's hear it if you're going to go do in my opinion the the like oh we'll do this remodel for you you got to go expensive so we're not cheap we're actually really expensive yeah but I don't think then you're going to get like the Realtors and the maintenance people who want to hire you oh gotcha yeah that would be the the risk there because you know how it is with Realtors if it's not done today they're pissed at you and that that's that's almost more risky for brand in my opinion could be wrong here but I think if you can if you you know have a you know sort of a briefcase contract thing where where you become this hey well we'll do your $80,000 kitchen and bathroom remodel there's so much extra margin in there that you could sub stuff out a lot of stuff you could sub it out have your people fill in or coordinate the job that's where you can make extra money going toing uh you know the maintenance for the realtor that makes me nervous you mean like little like here's the two three item punch list and it needs to be done in two hours is that what you're like yeah I mean I guess I guess are you trying to create it as a loss leader to get them to use you for property management no no no so couple things when we say we're not doing like like if you called and said hey I want a brand new kitchen we would say no right because right now you're maintenance right we're doing rental well even if we were facing the public I'm not going to like build houses or additions or major remodels we're doing rental flips right we're doing floors paint countertops light fixtures pling fixtures the easy the stuff that you preach about on your YouTube channel back in the day that's all we're doing so I'm not getting out of like I don't want to step outside of that cuz I don't know that like I'm not an expert in that I'll I'll get eaten for lunch for sure if I go against some contractor that does full remodels every day like no interest in that we're going to do basically what we do on our properties okay for other landlords and rent and and management companies I wonder if you can make money in that these people are so fussy I would be just very cautious that's all I would say because the it's it's so amazing because on one hand when when you do a rental renovation for one of your landlords and you're like look it was a hoarder house it was a disaster you know horrible tenant or whatever they come to you they're like I need a professional to do this and then you go do the rental grade renovation and then they go in it's like oh my gosh the transformation it was this inexpensive this is great uh that I think is such a wonderful thing when they're your clients and you have the full control you're making all the decisions what drove me nuts was as soon as it went from I'm making the decisions to somebody else's like well I think the rental needs brass hardware instead and it's my rental and I'm managing it right that that was the hard part I have to we'll have to figure that out because we hav come across a lot of that cuz we're mainly just taking care of our own right now but yes and that is great like I'm so happy to hear that you have your own control control and construction fantastic controls everything oh my gosh even I mean we I do I am doing the construction stuff to make a profit but there are plenty of people who in the industry who don't they just do it to control the process and they break even on it and they're happy with that are are you are you positive on it right yeah yeah oh that's great yeah I mean we're not making a ton of money like we we have a lot of room for impr 10 bucks an hour on on the guys that you're hiring now you have a a part you have a this subsidiary business that basically makes all of your other management business way easier like your job inten intensity just plummeted this is why why we have you know in-house uh uh Contracting uh for contractors as well because you can't do it without having I feel like some people on payroll that could just go do that one freaking light fixture and I need it done today you know it's hard to have leverage over these Subs if you're not like especially if you don't give them a ton of work like our main Subs I feel like we have leverage over but push comes to shove I can't tell them what to do our own internal people totally different that's and and if you can get that for free because basically you're you're charging a you a small premium for the the people that are you know essentially your your clients your landlord clients that's fantastic it's better for them it lets you keep your management cost more effective it it runs the business witho it I love that yeah it's a good idea so that so that that's two years old I'm rolling out another company so basically I'm using the the management company has like this economic engine and we love this the best part about I would say this owning real estate is is number one if you can own the real estate that's the best thing okay the second best thing is controlling the real estate right yes I love this so the management company essentially controls all the properties we manage of course we pick what vendors go there we pick what insurance the tenants get we pick all the things we control so oh you pick the tenants insurance this video is brought to you by house Haack my real estate startup go to hous hack.com to learn more read the offer circular it is a real estate investment company that is raising money between now and November 1st 2023 for the 2023 fundraise learn more about what we're doing how we hope to make cash flow and grow the business all of the Fantastic things that we're doing with this company go to house.com to learn more and how you can invest with credit card debit card a whatever is most convenient for you we have a master renters policy a master policy So in theory we can't like make them take it but probably 80% of them take it cuz we Master renters policy oh tell me about that so we actually it's wrapped up in this what we call a resident benefit package which is I've seen you sell that yeah which is like a sweet of stuff but everyone no one every landlord says the same thing you can't live in my property without renters insurance right that's like sure com like base I don't know what I'm trying to say but it's it's like everybody reques bare minimum yeah the reality is though people will buy the policy to move in CU they know they have to and landlord kind of comp it could cancel the policy no one knows not whatever so we that's bad that's bad for the landlord bad for the management company here's my certification cancel at the next month yeah so and the and most of the policies that they're buying are garbage so we have a master renters policy that actually has better coverage so I think our like uh personal property coverage is $30,000 which uh anyway long story short we control the process if you say heyy I don't want your master policy I'm going to use my own we go great and this is all done by a third party by the way you here's the here's the email that you have to send your policy to you need to add this these people as uh additional interest and that this company basically does all the compliance so anytime somebody drops their policy we're notified and we automatically enroll them in the master policy and that's how we keep our people we had keep our our clients protected how much Dr off do you see when people have their own is it just all the time people are chopping out of compliance basically no well now that they know we're monitoring it I would say it doesn't happen that often but prior to that you have no way of knowing we had a we had a a structure fire in a house which thank back when I was at the fire department thankfully I wasn't working because it would have been in our area which would have been really weird for that would be a little awkward I manage this property guys a little faster please anyway uh structure fire they had a candle they burned up the like the living living room the kitchen like pretty serious is always candles not at most a lot of the time candles are food on the stove fireplaces food on the stove they just forget it's cooking forget it or they're like deep frying something and they don't it overflows and starts a fire and they can't figure out how to put it out but anyway we burn these tents burned up this house and uh they we had the renters insurance and most renters insurance policies come with like a $100,000 liability portion of it that protects the landlord right so basically the that it was it was under $100,000 but the owner didn't wasn't out of pocket anything didn't have to pay deductible nothing they got a brand new house and they got a brand new house so see isn't that great is the insurance great it is when it pay when they pay for sure they got a lot of pay with relationship I mean everybody does like when they pay it's like phenomenal like I had a I had a sewer backed up and it like it it it basically I mean we had to completely gut a bathroom and and replace the sewer under the bathroom and basically redo the entire bathroom that was just remodeled uh but the because the sewer backed up and caused drywall damage they covered everything so I got a brand spanking new bathroom and the sewer repair for like two grand deductible well I mean a perfect example is all those homes we burned down in Thomas fire like oh my gosh gor as long as nobody died that was possibly the best thing that could have ever happened to those I don't think any homeowner died there was one which is horrible there's a firefighter killed the firefighter uh Iverson out in Filmore and that wasn't in a house that was out in it was out in the woods yeah yeah yeah yeah so but other than that all of those folks I mean some were woefully underinsured but these are like Mansions now they came out ahead they absolutely came out ahead czy for sure anyway I do want your opinion so yeah yeah back to this insurance well we can move off that unless you want to keep talking about that oh your property your structure here yeah so we got quick maintenance we've got resident benefit package what else is in that oh the benefit package yeah doesn't that have like filter changes too it does yeah we'll ship the filters does that no so that's that's run by a third party another third party well so the third party like manages that Resident benefit package for us essentially oh the whole package almost why you do it I did originally really and uh we could they could do it better no way and we make more having them do it can you shout that company out second nature second nature yeah look up they only work with professional property management companies but they manage these resident benefit package essentially it's a suite of services that it's like a concierge for tenants so that whole thing like we take care of our tenants we treat them really well this is right in line with that like there's a concierge utility transfer service that they call one number and it transfers all their utilities like this company will chase down all the nonsense when it comes to that there's that's such a hassle rewards for like paying your rent on time there's you know will more options for movein like if you want to move in with a lock box at 7 o' at night on a Saturday we can make that happen for you like things like that W anyway back to this model the next company that I'm currently in the process of spinning off is a cleaning company which obviously cleaning very unsexy you have a cleaning company right now so it's and you're going to spin it off it's a DBA of my Contracting Company currently but the the goal is eventually to spin it off and have it independent so it's cleaning our properties which is like the EAS that's nothing exciting about that but where I'm what I'm doing with it is and this is where I'm interested in your opinion yeah is getting into the short term space yeah so I mean knew where this was going every every cleaner wants to do Airbnb cleanings right because it's obvious it's there's a lot of them they happen over and over it's repeat the guests pay the bill I feel like the best type of of uh cleaning gig is not that gig where they call you once a year and it's like to clean it's like I'll be here for five minutes on this one spot you know like the best kind of clean is you're there every week or twice a week and it's like clean yes so that's but that's not the that's in my mind not where the opportunity is so what what is a professional short-term management company charge oh my gosh 30 40% okay a lot right yeah this is called it 30% and if you're out of the area oh 50 yeah well I mean if you're out of the area you don't really have a choice like you either you either married to your phone and having to chase down all these vendors job it's a job people forget that short-term rentals are the job you know I see like on social media it's so common people are like oh I make $200,000 from social media for from uh short-term rentals it's like okay we working 90 hours a week being the concierge yeah so if you don't want a job but you still want to have a short-term rental you have to put a management company in place who's going to take 30 or 40% of the revenue right what I am going to do is bundle up the services we already do handyman inspections cleanings you have an inspection service that hand part of hand part of what we already do uh and make this into a subscription model model and Market it to short-term rental owners so I'm going to allow them to fire their management company oh you evil bastard so so they can fire their management company they can it's 100 bucks a month and that doesn't come with it that just belongs to our little conglomerate of services that we're going to offer you you still pay for the cleaning you still pay for the maintenance all the stuff for $100 a month you have one point of contact which is my company we do all of the boots on the ground so you can live wherever you live and have your short-term rental on the beach fire your management company then the only thing you have to do is manage the guest experience which there's a ton of software that makes that a lot easier interesting so what do you favorites as far as the softwares I don't I don't actually have any not at this point got it that's fine that's fine it's a developing idea okay well so no I mean I'm I'm probably about a month away from rolling this out to short-term people I already the cleaning company already is cleaning properties how many people do you have in your cleaning biz none so the yeah I mean other than the people on my team already there's no like I don't even have a full-time cleaner employee but it's okay I have all these Subs that do Allan it out for now for now people that we have relationships with already at the at the management company right so I'm literally rebundling Services we already provide exactly and offering it to it's not going to for every short-term rental owner but the ones that have a real like be in their Bonnet about paying 40% of their money to a management company who then the management company does a terrible job of course yeah who they can then solely focus on making that guest experience good getting the reviews all the things that you got to do own you're removing all the pain is what you're doing well a lot of the pain they they could deal with the customers is what you're saying but you're going to deal with the cleaning the maintenance and and the property basic the the hard stuff if you're not in it in it yeah oh that's really interesting uh how what are you seeing are you still seeing people buy short-term rentals it seems like things have slowed down no no no I feel like short-term rentals are they're they're in trouble not trouble but they're not the same as they were no no it's not 2021 anymore yeah in fact um I talking to someone the other day the city of Ventura is starting to enforce some of their short-term rental regulations like they they've had the law for I don't know how many years they never enfor they never enforce it well they're starting to enforce it which darn yeah which is you know going to hurt some people more than likely um because there's a lot of people who are doing them illegally are they going to sell I don't know so we're we're targeting those people who potentially are going to go okay yeah this ain't worth it I'll rent it out long term so that's an opportunity for the management company but yeah it's not like it was and you're probably I've seen some of your stuff you're you're more in tune to that than well I mean who knows right the the end of it all it it seems like uh as I'm traveling around I'm seeing a lot of listings come up I mean this could just be based on just what I'm seeing but there are a lot of people who are like why are they selling oh uh shortterm rentals got banned out here yeah you know you're seeing these listings come on the market I'm like oh that's not good well I actually have a story so we were in C Idaho year or two ago I was just there like a month and a half ago oh really so my wife fell in love with the area and my one of my good friends one of my good friends has like a second house there so we're we're all in on the area on the lake or they have like the little Rivers they're on Post Falls close to the Spokane River um which is the town right next to corane yep she falls in love She's like I want to be here we need that's closer to Washington we need a place here like I'm like okay yeah this sounds interesting like start looking around oh I mean it's a destination for that area right like okay I'll let's buy a place and when we're not using it we'll short-term R out people come over from Spokane and even just vacation yeah and uh so I start you know get on air DNA start doing all my due diligence research like expensive man I'm like this is something's not right here like I can make this thing work tomorrow like it would even cash flow with us using it part of the time no so I'm like okay all right let's start making some some lowball offers right cuz I mean Idaho is like you it's where everybody went during the during now it's where everybody's leaving so like I'm like we'll start lowballing these people see what happens so got one offer got an offer accepted and I'm like okay all right I let's I'll keep doing some research like I'm like why did they accept my offer anyway yeah I know D it's so funny you just said that that line right there is so a real a real estate professional when you write an offer and then they take it you're like I overpaid or something's wrong right wait a minute I was not supposed to get that anyway so I start digging in more because honestly I didn't expect it to happen so fast right start digging in more end up connecting with this lady who owns a property a short-term proper short-term management company I go hey I just want your gut opinion here this is what I'm doing this is what all the data is telling me it doesn't seem right right she goes it's coid data it hasn't flushed through the system she goes take what you're seeing cut it in half and that's what your real experience is going to be and right then I was like okay enough said so then she gave me the background like which is to your point preco there was like 350 short-term rentals in that whole area blew up to like 1,200 dur fourx now nobody wants to go there anymore because everywhere's open but prior to that no one was open and people were flocking to Idaho and all the red States right so it needs the supply and demand thing needs to shake out so I pulled out of escro and I go we're going to sit back and wait and see what happens now now as I'm monitoring it there's all kinds of TurnKey short-term rentals that are available for sale and these people are just getting hammered cuz there's too many of them and people aren't coming well and what's interesting is this sounds crazy maybe but I think it'll it'll sound right on to you maybe but a turnkey short-term rental that we have on Airbnb or that people put on Airbnb and then you go visit it is not like in usually a sailable condition I found that a lot of these are really like they photograph really well but they're really crusty oh they're janky and a bunch of wear and tear and yeah yeah I agree completely so like I feel like you almost have to I don't want to say re renovate but like go in and renovate some of the renovated short-term rentals to make them sailable yeah I mean and then you're depends on like who you're catering to like if like there you got some of these that look like uh you know there's every square inch has something there and they're like not modern and they're like look like you're grandma that too did that so I don't know anyway but you guys are looking at that area or with the house hacking so we've we've done so much traveling over this year and I mean from from East Coast West Coast we we've been everywhere and uh the one place that I was most nervous about uh was Oregon followed by Idaho because those markets were falling this summer while all the other markets were still booming so you go to Oregon and everything's like that looks like it should be a good deal the comps are here you know this one's for sale for here that should be a good deal but that just kept happening so we we we never ended up even writing offers because we we saw this this whereas you go to uh you know San Diego Ventura County even parts of NorCal some of the anti-id markets you're still seeing multiple offers and you're seeing comps that are volatile but they're still way up from where they were and they're not trending down uh heavily at least I mean now we're seeing a little bit of a softening in the market I want to see your opinion too but we're seeing some softening now where it's not like it was in June or July but the prices right now are still a little bit higher than where they were at the end of last year so where that's not true in Idaho and Oregon so I got really nervous about those two particular markets uh Boise postfalls even to some extent I saw it a little bit in Washington but not as bad as Oregon Oregon was was rough but then I went to Austin Texas and Austin was booming in the spring now everyone's panicking so it's it's a weird time what do you think what do we what do you think so I don't have any expertise on the sales side I definitely am pretty tight end on the rental side in our area like what are your seller or your owner saying how do they feel people are nervous there's a lot of uncertainty right so we saw pretty pretty significant softening of the rental market end of August okay which a lot of people would say oh school's going back it happens every year seasonal for sure it does but this was more severe yeah worse um my personal opinion is all the co money cycled through the markets people aren't as excited about renting for whatever price they can rent for um people are you know families potentially are Contracting like moving with parents versus the opposite of what was happening right right um there's unknowns with the economy like most people aren't experts in the economy and have the crystal ball they're just like I don't know what's happening nervous I'm not doing anything I'm not going anywhere so we saw a pretty significant increase in days on market and then we started seeing uh rent prices move in concessions those types of things coming down and see how do you handle this when you're comping rentals and the comps are you know doing one to two months free rent yeah how how do you comp this because sometimes that doesn't actually show up in the remarks but you know what's happening or it shows up in the remarks but you do a rental survey in a market like Phoenix is like famous for this I mean I I look at the Phoenix market and I'm like oh starting in January they're starting to do one two months rental concessions and I'm like okay well then a $2,400 a month property is realistically like 2,000 a month but you do a rental survey and you just do the class I hate it I ask agents I'm like oh send me the coms I look at it they just send me the on liners like the on line of each and then it's see the average rent is400 I'm like come on this is like let's get the actual data right then you look at the data it's like rental concession rental concession rental how do you comp I mean do are you just comping against the stuff you're renting and what you're feeling no so I don't I would say I don't have the analytical talent that you have but we we comp on our local market knowledge we absolutely look at what the other properties are doing but really there's a certain amount of um feel to it right like and the conversations we have with our clients have changed completely it's no longer you know Co you could take a picture of the dirt and put any price you want on it and it would rent in two days that's not the case like you have to price them correctly and the problem in our Market is you have a lot of self-managing owners who don't understand what's happening and they'll put their property up for $5,000 a month when it's really 3,000 but our clients go look at this house it's $5,000 a month and it's not renting knowing that there's no way in hell it's going to rent so it's definitely changing um yeah it's softening and mean if it's changing if it's softening more than it was you know in Prior years at some point those lower rents have to translate to lower prices but we haven't really seen this massive correction in pricing what's your take I mean that's a million-dollar question right like you figure that out um yeah no kidding I don't know I mean people say it's not enough Supply I don't but there aren't buyers either you know like you know what I'm hearing a lot of right now and I want to see if you're hearing this in management I'm hearing a lot of agents and it makes me nervous when they all say this but they're all saying relist in Spring okay great well what happens when everybody says I'm going to wait until the spring MH well now you have a surge of inventory everybody's going to be rushing the prices are going to do pric is going to have to come down because if rates are still very high in the spring but all of a sudden inventory you know we go from 120 homes on the market in bentura to let's say you know 2011 style was 400 homes that's a problem yeah for sure I mean who knows who knows you know I mean we Market to or you know one of our marketing streams is targeted at Realtors half of them AR half that's maybe an exaggeration a lot of them don't exist anymore they're already falling off wow leaving the business leaving the business I mean I don't know how you could if that's how you support your family and the the sales aren't there like what are you going to do you got to go do something so the some of the people that are in our database were taken out cu they're no longer in the business so wow any anyhow that's scary what else what else house hacking oh yeah so you are going to have this is yet another side of your business so this is just part of the management company not not a new business guess yeah a new feature of the existing uh so traditional house hacking not to be confused with house hack.com uh traditional house hacking you are going to help owners rent out other parts of their homes this sounds like a nightmare yes so yeah so one of the things we believe in our in at rencon is like everyone deserves the opportunity to be financially free right okay so we found that that wasn't actually true like in as you know the ventur market very well like we don't have a lot of people running around buying properties that cash flow and buying you know multiple propert this isn't Cleveland Ohio or you know Kansas City Missouri right this is a high dollar market we don't have a lot of those intentional investors around no you buy like one or two like that's already a lot yeah yeah so the whole financial freedom for our clients in our world was pretty much reserved for people that already had assets or bought properties a long time ago it wasn't really translating to younger generation coming up who are interested a lot of your course members people who are trying to figure this stuff out right so that didn't sit well with us we're like uh okay this is our why but it's only our why for like the top 20% of Ventura right so that's kind of that's kind of BS what can we do well obviously everybody knows the best way to buy a house in a market like ours is if you're willing to be uncomfortable and house hack well the problem is a lot of people don't like to take action or they're fearful of tenants and managing or or financing all the things that you got to do to do that there's a lot of fear wrapped up in so we were like we can help these people manage these house hacks it's not that difficult the number one thing is it's a management nightmare you got a bunch of tenants in a in a property it's going to be difficult they're going to fight they're going to have issues oh well because you had that with I'm imagining I I should let you mention but you said you bought units in Nashville Toledo water spraying how was managing units it's it's probably a it's more work yeah and I wasn't self-managing just for the record oh that's right that's where you hated managers yeah got it oh okay okay that end locally um okay so anyway the the TR the reason why no professional management company wants to do this is because it's they're afraid of of the tenant interactions and having up all these things right well our business is very organized very process driven I'm not afraid of that yeah even if we brought on another remote worker whose job was to make sure these tenants were happy and deal with the issues that's fine the reality is though this is happening with a management company or not right like there are plenty of people who house hack in Ventura already who do it just fine like is it a little more work sure but with more work is more reward right like if we can get more people to do it then that's a win for us and not to mention we have a new client we have you know all those things that go along with that but the the part that gets weird for us is when we're going to owner occupy manage a house hack so the owner buys the house doesn't want to get involved in like renting out all the rooms and dealing with all the stuff around that we step in now we're in a spot where we have a client who's also kind of a tenant so it took us a while to work through that with the attorneys and the management contracts and to get it all buttoned up but we're we're there we're we are rolling it out as we speak so we'll see kind of how it goes how do you make money on that I mean if you rent out a room for 1,200 bucks you you take you know 10% I guess I guess there's 100 bucks say if you took 10 well I mean the reality well let's just say you're three-bedroom two bath house like for 3,000 bucks we make our management fee on it well we rent it out by the room just just solely Renning it out by the room we're going to make more you you know 1,500 bucks for the master 11,00 bucks per this is assuming there's no owner in it I got assuming there's no owner in it yeah yeah yeah that's true you will always make more dividing it up right so that's one aspect of it the other aspect of it is my contracting company is going to get involved in creating more rooms oh no so so we have a formal living room formal dining room or a loft or something I mean I just did that because we got all these kids coming we're like well we turned the former dining room into an office then we're looking we got twins coming we're like do we want to move how about the formal family room we just turned that into another room we're like but there's a fireplace that connects through the other side box it in well what's funny is I did this in my own house when we had our third kid I turned the form of living room into the CR the the nursery right exact so now I'm looking that noise away man looking at my own house which I'm not going to do this but if I moved out and wanted to do the strategy I'm talking about it would produce like over $6,000 in R oh it's insane so just taking a three-bedroom two bath and turning into four-bedroom two bath I can now rent that out for Mid fives okay so I I'm I'm very interest there's more cash flow for the client is why it's enticing for them that's true and if they make more money you get to make more money whether it's you should be charging I should let you answer this a higher percentage so if it's owner occupied we're charging our standard if it's non-owner occupied we are charging more see you should because it's more work oh of course it is so when the owner's there they can assist with showings and they're the point of contact for maintenance and some of the management duties they're essentially assisting with just because of the fact that they're there this is really interesting because you're going into this environment of that coid money being exp or expiring evaporating and by and rents gone up you know 30 40% over the last four or five years by going into house hacking traditional sense of house hacking where you're renting out the individual rooms I don't think you're ever going to have a shortage anytime soon of tenants no there's more demand yeah cuz it's the ENT the entry point is lower oh my gosh so we're charging premiums too because we're providing cleaning service we're providing Wi-Fi we're wait wait wait wait what you're providing cleaning service for the individual rooms no for the common areas which is just us coming into the prop cu the fear of the of our clients is that's a lot of people living in there they're going to destroy that house yeah yeah our comeback is we're actually going to be in this house way more than we are in our long-term rentals because we're providing twice a month common area cleanings so our cleaner is in there taking a look around things like that so that we're kind of using as a hedge against the some of the concerns with the strategy but in the end with softening rental market and we have a client who bought their house in the last couple of years and they're going to be negative if they rent it out this has the potential to push them over the edge because if we can show them hey we can get you 20 to 40% more rent with this strategy that might be enough for them to hang on to it versus sell it so I feel like it's a win-win um we're excited about it I actually 100% agree that demand for this cohort of tenant is going to Skyrocket because I I think there's still and we know this I mean there's fact around this too but I think people still have this this higher feeling of net worth because of all this the coid spending but it's tapering you know whether it's the market or it's just spending or whatever and the I think there's a very good chance you end up seeing way more people going back into these shared living environments compared to renting their own property just because everything around us has gotten so much more expensive even if inflation goes to zero today things are still 30 to 40% more expensive than they were in 2019 so so now you have more demand for these properties uh you can help owners make more money because they're going to make more money renting out the rooms the question is the management intensity but you're actually solving for the management intensity by basically living there yourself with your your vendors right your vendors are there because you're sending in your cleaning service twice a week once a week twice a month I think is what twice a month okay so your cleaning service is going in every two weeks uh then you know who knows a handy person or whatever comes in once a month so you have three site visits potentially a month on average is what I would guess maybe even four three to four site visits a month uh and how do you how are you going to handle this potential screening like how do you how do you go and say oh I need a 700 credit score on somebody who's renting a room like do you lower your standard what happens yeah so right now we we have a sliding scale of what our requirements are based on the rent price so if you rent a $6,000 house your credit and all your things have to be better than if you're renting a $2,000 studio right so it could be something similar along those lines what's your suspicion like are you just going to kill credit no I mean we'll have a standard but my it will be lower okay for sure so the reality is too is well go ahead I'll let you finish this L 500 no no no no our lowest right now absolute lowest is 640 okay oh that's like FHA yeah I could see maybe a little bit lower than that or something I Haven I haven't like worked all there are two there are you heard of padit uhuh padsplit is a a venture backed company that's doing this in other Market not in our Market but their argument is they I don't know if they disregard credit completely but it's less of a factor in their criteria and they have like I think a 97% collection rate or something I don't know how accurate their data is but the argument is made that it doesn't matter as much not to mention with the political environment we have in California yeah I wouldn't be surprised if credit score as a requirement goes away completely um hopefully we that doesn't happen but it wouldn't surprise me it would create certainly some more challenges I wonder if if because what I'm seeing in some of the markets where they've gotten rid of credit scores is they still allow you to run a credit report which that's actually what I care about more is I want to see the history are you paying your freaking phone bill you know stuff like I want I want to see that payment history but if they completely disallow that I guess what you'd have to do then is send me your last 12 uh statements for your uh phone bills and stuff like that you know the other piece of this that's good for the client is we now have a single family house that is that is performing more like a multif family unit yes so you're not going to have the turnover where you don't collect rent for a month and you have $5,000 to get it ready to rent that's not going to happen because not everybody's going to move out at the same time you're going to have one turnover which the worst case scenario out of a room is you replace the carpet and paint the walls right like not anything compared to you have to do that for the whole house so it's going to stabilize the cash flow for the client which do you think you'll have more evictions I don't know yeah that I think as long as we follow our screening criteria that we're going to be in good shape like I mean if I look at our eviction record right now in the in the last 10 years people we've evicted because people that we've placed right I think four that's nothing so we've evicted many more people but they're people that bring problems to us yeah and that's not your our record yeah so I mean like I've never had a an eviction on any tenant that we've ever placed but my first real estate deal ever first deal ever here's six units 309 East Thompson Boulevard uh please don't evict us the fair is coming up and everybody loves the fair those people had every excuse Under the Sun not to get evicted and they were so toxic for for that entire building I couldn't sell that building for 11 months cuz of them yeah so oh evictions suck man it makes the whole building smell it sucks literally too in that case ah anyway so this is really interesting so have okay have have you done this room renting before no we're rolling it out so we've had I've had are you scared I mean this is no not at all really I've analyzed this every which way from Sunday I've worked with our attorneys I've talked to there's this is very similar to student housing it's not is basically what it is it's not that much different and I have a colleague or two that do that do student housing on a regular basis intense what do you mean colleague other management company owners in other areas yeah so I Network pretty well with people like me across the country okay so basically the people because I've posted this in some of the groups I belong and gotten a lot of hate you're out of your mind it's going to be too hard and then the people that come to me like behind the scenes are like yeah don't worry about any of that I'll show you how I do do it it's not that big of a deal so the way our software set up the what's that it's a moat when other people are like that's too hard don't do it which is an opportunity it's an opportunity it's insulation for you yes you're right it's too hard you know it's kind of like you're right California sucks do not move to Ventura it's a horrible place to live and like this place is freaking a yeah oh that's interesting okay uh so wow that is really interesting so so you're not like the Eminem So I'm not afraid you're you're you're just gonna go all I mean there's going to be challenges for sure what do your attorney say about this is it legal to just chop them up so there are some regulations well when you say chop them up what do you mean like add more rooms yes but only with permits right they have to fire C like there has to be a window there has to be an exit all those things like we're not talking about doing this without permits I'm not going that but I mean if you just pull up a wall and there's already a window do you really need a permit so the reason I want the permit is for a couple things one just the C but two I want the public record to change so if this owner our client in the future refinances sells reappraises it now instead of a three-bedroom it's a four-bedroom but you're not getting paid at all for that work that you're doing that like oh no we absolutely are getting paid the the to pull the permit well my Contracting Company yeah we we line item everything I guess I guess my like I'm I'm just thinking a try have you pulled any permits yet for your clients yeah well for the Contracting side sure okay okay how do you deal with the uh you know oh here comes the inspector and you're pulling an inspection for you know smoke detectors carbon monoxide uh bedroom ceiling fan and there's the egress right now we put the door in we put the non non-bearing retaining the wall in whatever how do you deal with the inspector hm new windows we'll need a permit for that oh look at that new water heater we'll get one for that oh you guys have an addition here from the' 70s you know I don't see that on the the record here let's get a how do you deal with that I mean I will say this this happened to us on our last project what are you going to get to man it wasn't a big deal it was you got to tear down additions sometimes yeah well in this case it was the the the inspector was didn't have it figured out because he's like yeah that's not permanent I looked send my people over to the office hey this is what they said the person behind the desk oh actually that was pered in 1955 here's the permit you got lucky on that one got lucky on that one but you're going to get sent to that office all the time there there's risk here and like if if we well one I don't actually manage properties if there's like known unpermitted structures no that makes sense but I'm I'm thinking like do you need a permit for a a a non-load bearing wall I don't think You' do but if you're going to put like electrical in or yeah you put a new outlet on there or whatever and that's not an expensive permit I guess what you're saying is look if you have like if you have a 2002 home home with no funky additions what are you afraid of like pull the permit it's it's going to be like 80 bucks for an electrical permit in the drywall and the W big deal and it's a cya for the owner and for us like I don't want to get involved in renting out something that's unpermitted if for some reason it was required right but the regulation that does apply here is the cities have certain rules against like boarding houses which is what some of them look at this as okay so tell us for example Camario doesn't allow boarding houses so in theory we shouldn't be doing this in camaria which you know I don't anticipate having an issue but there are some cities that expressly prohibit this in their codes which are Antiquated and but that's a whole another conversation and those might loosen a lot in this sort of uh environment that we're we're uh in where affordability is a big issue a huge issue oh yeah that's really fascinating so okay and I guess that makes sense because you don't want even insurance issues in the future either uh with for me it's like a liability like you did you did unpermitted work on my property and now XYZ happen this is your fault yeah and a lot of rental renovation stuff doesn't require permits like I I've I've gone to the city before I'm like look we're just replacing the ceiling fans and life fixtures and the faucets in the same location they're like don't even bother yeah which technically via the book are you supposed to maybe but when the people at the counter or or the inspectors are like don't worry about it uh that's great but uh but that is you're right I mean really how hard is it to permit stringing up a wall if we're and and we're not and if if we see a house that's like obviously had 15 additions to it since the 1905 or whatever probably not going to recommend that strategy to them or we're going to have the conversation like this is the risk here yes are you comfortable doing this because interesting anyhow so uh where else have you seen these what other room rental restrictions have you seen so as far as when we were doing our our research that boarding house thing is the main one that was it yeah the the city of Oxnard which isn't necessarily against rent by the room their rent control just cause measure is by the door that's rented So in theory these for sure going to be covered under their rent control law yeah but those are not that hard because like like that's usually like what they're trying to protect against is a homeowner moving in and trying to like remodel the whole building it's not going to stop strategy just just a consideration but as far as people saying no you can't do this the only one I'm aware of is these boarding house regulations that's really interesting okay okay yeah and and I mean that's easy to find out you just walk into the city restrictions we already we talk to every city in Ventura County and any City you invest in you should go talk to the city even just to shake their hands it's a great idea okay wow that's really interesting um wow uh I never thought that a property manager would desire to do what you just said but the problem with this is you're not just any property manager you're like the property manager I respect and like love and admire so like I'm like this is this is like a mind twist like I I'm going to have to tell I'm going to tell Lauren about this she's like what they got to Peter well the reality is most manager companies suck right lack of a better term that's why we're like what and I have my own theory on why they suck but yeah well tell us about that so our the business is structured in a way that breeds apathy so like yeah you come to me you go hey I want you to rent my house out okay okay I'll rent your house out I control the money I control when I get paid the only recourse you have against Me Is You can fire me or you can like file a complaint with a Dr that's it so if I have 2,000 properties that I control when I get paid I don't really care if you fire me or you you're unhappy because I have 19990 way other that that do it's backwards if it flipped and it was like you as the client have to pay me each month and I have to invoice you it would change the industry completely because all of a sudden I would have to really work hard for you to pay me and you wouldn't pay me if I did a terrible job or I screwed up a maintenance thing or I overcharged you or let your tenants not renew their lease or made whatever it is right that that's I think one of the reasons it's so bad the other reason is property management at scale is incredibly it's simple yet complex yeah because if you manage one property on your own Easy you could do that in your sleep you manage a thousand the exact same way you need process you need structure you need people you need technology you need all of those things and that is where a lot of people get into trouble like because most property management companies were born from realtors in the sales world who are who kept getting asked by their clients hey manage my property manage my property and then all of a sudden they find themselves with a portfolio they don't care about property management they're viewing it as a lost leader to keep those clients in essence though they have a train wreck dumpster fire going on in this management company that every that has a terrible reputation that's where most management companies across the country came from so there are like a new breed of people who are looking at it differently who I consider myself one of those people who are treating it like a business who I don't come from selling real estate like I don't come from any of that so I don't come with some of those preconceived ideas the other one being you're you are a a real estate salesperson you get paid your commission check one time that's it that's not how property management works that's how everybody feels about it I charge one fee I charge my management fee that's my commission and I do everything else as a result of that there's no other service industry that does that like try to go talk to your attorney and see if he'll charge you one thing and do everything else for you go talk to your CPA go all of them Nobody Does that if you have me working for you I'm charging you usually by the hour property management is not like that that's really interesting uh so you went from fighting fires and houses to fighting fires and houses honestly I the the business is it's Pleasant it's not as bad oh come on it's not and I'll say this too we don't have tenants beating our door down angry at us does it happen occasionally sure but like go you go look at our reviews half of them are from tenants who are happy with us C I know that's amazing just kill it because I we treat them well like they're no different they they're people they need a good place need or question or it's not that hard they're a customer we take care of them and honestly I do that because it's the right thing to do but the other reason we do it is because it's in the best interest of our client well of course because a happy tenant takes care of the property pays the rent all the things that our clients want the tenant getting evicted you know walks around with a hammer yeah so uh that okay practically how are you divvying up uh these these rooms are you uh are you putting in like garage doors with dead bolts between each room no so we're putting smart locks on the on the the entrance and exit doors so we can change the code uh as soon as somebody moves out or whatever right and like can you do these remotely hopefully so if once we take the property on we change out the hardware on the entrances and the exits right and then we are the rooms are going to be keyed which in our traditional management we don't key rooms that's a disaster but not the case in this so they'll be keyed so like a regular key handle lock or deadbolt lock I don't know that we've gotten that detailed TBD okay yeah um but we what do you suspect I would suspect just a handle but I don't know we'll see what we'll see what the ten want solid Corridor or Hollow I think I would be more comfortable with a solid core door but I we have we didn't anticipate changing all the doors out either honestly I don't think like if you go rent a room I don't think that people are putting solid core doors on them yeah yeah yeah with a threshold and a lock you know but I mean something to consider but um the turnovers on these things I think are going to be relatively easy cuz we're not inspecting the common areas we're not doing the only thing we're over there doing is looking in the room maybe paint carpet yeah are you doing carpet change the lock I hate carpet and rs but but are you going do it in these well I mean it depends ultimately it's what's in the property and when we change floors I almost always try to lvp or something so that makes sense Yeah well yeah okay wow this is really interesting uh wow this is I have to say when you first said it I hated it the idea like an hour and 12 minutes ago as I'm grabbing my cup of coffee and and you said oh by the way I got to tell you about this idea I'm like oh no oh no but now I'm kind of like wow well here's the other thing the biggest argument against it is the tenant management heads we manage 400 we manage hundreds of tenants already that we already are dealing with the same headaches right you could argue you're gonna have denser properties but we're already dealing with tenant headaches and frankly we're good at it it's not that big of a deal that's fascinating yeah because now wow uh like you say it's more cash flow it's a higher rate that you're charging it's more money that the client is making it uh is economically the perfect time to be doing this because like during Co everybody wanted their own place it would be a horrible time to do it now it's like everybody's like okay Co whatever like I need to save money I need to survive wow and so common Wi-Fi so the reason we're going to charge a little bit above market rate rents um all utilities included I don't want to do that I don't want to include the utilities I want to do a flat rate for the utilities we also have the opportunity to do that ratio Utility Billing System but I see that being like an administrative nightmare for us oh that's a headache how do you account for that but flat flat fee like hey for you know $50 a month includes all the utilities we do the cleaning Wi-Fi we the kitchen will be like stocked with the Basic Essentials there'll be Furniture in the common areas so there's a little bit of upfront cost for the client kind of like an in between shortterm and long-term thing but uh I think if if you came to me and presented this to me I would do it a heartbeat the main reason is the the hard people that are going to have the hardest time with this are the people that are emotionally connected to their properties the people who are like no this is no different than a stock in my 41 1K I just want it to produce a return they're going to say yes to this all day long it's the people that are emotionally connected that are going to be the ones that struggle with well you know Johnny grew up in that room and if they put a hole in the wall it's going to be a problem you know type of where is this going to succeed the most does this succeed the most in like SoCal or do you just do it in every Market or would you do this in Texas and Ohio well one I don't have any point of reference for that stuff I only where we're at yeah true but I will say there's two companies that do this pad split and home room and they do it all over the this is I was reading something on one of their websites this exact objection and they're like no it's basically wors in every market we've ever been in wow so I mean if you think about it there's young people that want to move out of their house and it's all they can afford and they go rent a room somewhere I mean my nieces did it it it's super common this is amazing what am I missing I don't think you're missing anything what you're missing is helping promote the house hack Meetup because we're trying to get the word out okay uh it's last Thursday every other month so November 30th at topa toopa at 6 o'clock the one on uh null Drive see I got I got to put this on the calendar yeah if you show up oh that'd be awesome you could help us bring some more people in uh hold on this is November 30th okay okay nothing's on the calender right now o uh okay this is the topa topa Brewery yep on null drive because they they have I think two in Ventura okay and this will be the uh uh Peters Ria is it yours or partner with it or like who who runs it no we do so yeah ring yeah we call it the house hack Co-op wow and it's only we've only had I think three and it's pretty small and what time six o'clock is this uh so is this where like all the landlords get together with and smoke cigars no yeah no no and who we're targeting are the people people who are having a hard time buying a house cuz it's expensive and educating them on an alternate way on how they can get it done do you know that I I well I'm pretty sure of this I think FHA is now or Fanny one of them maybe both are now including borders income I did not know qualifying oh really borders income oh here it is this is exactly what we're talking about right exactly uh borders income Fanny May listen to this this is crazy so oh there's a PDF guide last updated at October 4th how lucky are we uh this is really really interesting so uh I'll have to send this to you but um borders income yeah there it is borders income income from borders in the borrower's principal residence or second home uh what is this uh okay is not considered acceptable with the exception of the following when a borrower what is this when a borrower oh did they change this maybe that's not as good this is when a borrower with disabilities receiv receives okay that's different that's a lot more I'm glad I looked because I thought this was a lot more broad that's not as good anymore never mind okay all right it's a disability thing there I don't know where I heard somebody was saying you know maybe what happened was they were thinking about bringing it out to everyone and they just ended up highlighting so never mind on the border income it's just if there's a borrower with of disability rip so anyway um sorry all good now we know that one I was getting excited about I was getting excited easier to convince people yeah what's your opinion on this and you probably are super close to this issue you have a ton of people in your courses wh why do people struggle with taking action like what have you found to get people to just do something like well you know first of all it's it like every single day it's especially when you're you're trying to find that purpose it's actually really hard to work on finding that purpose this is just like a a human nature thing just like I you know I hate my job I hate school I don't know what I want to do anytime there's uncertainty the default is screw it man just going to have a beer and play video games because there's comfort in that right like everybody goes through that that's very normal it's like I don't want to wake up man stocks are down my job you know like whatever like that's like human nature so how to break out of that is really difficult and I think that's why we have depression problems it's it's depressing but I think that's why that ex it's difficult because you have to have like some kind of belief that you can contribute extremely meaningfully to something that gives you fulfillment and it's not it's not only money like it has to be I succeeded at something I got a promotion of my job I created a business that's why we have that entrepreneurial bug it's because you get to see it build and then you you get high off of that idea of I built this property management company now I'm going to build the Contracting team you know the handy like let's go this is great now we're going to expand to this this this this that's that creates happiness more than the actual money I believe like that's what keep me going right people like oh Kevin like what number are you going to retire like I it's not about the number it's about building stuff it's like what's the next thing I can do but but how do you help somebody build something when they haven't built anything I think like you said one of the first greatest things is owning your own home and then maybe rent out those rooms like you're saying and get a taste of property management get a taste of owning and how do you start with that well the easiest way to start owning your own home is having a job but nobody wants to hear that you know the W2 is so villainized the job is so vill villainized on social media you know people go on social media like that's right screw having a boss but then you stay miserable whereas you have a job like you did you were a firefighter you worked really hard at that you took your income which let you build your side hustles and invest in real estate now you were able to get rid of your W2 job and just keep developing those that's hard what we just described that's not easy okay that's hard yeah yeah I know I that's what I struggle with like I even the people on my own team who I'm trying to like guide down this path yeah I because it's not a matter of them not understanding like for example buying a house like sure it's not a matter that they don't understand it it's just that they can't get it over it they can't get themselves over the hump and I struggle with like how am I going to get the this these people to go over the hump like I can't like I don't know what else to do and it's that way for everybody it's like a system problem and because it's so systemic as you're saying everyone around says oh don't do that right so like I when I had my real estate license in 2010 I go to Trader Joe's and the people at Trader Joe's like oh you're realtor I'm sorry you know it's like bro you're working at Trader joh stop you know and they're like I'm sorry you're a realtor like cuz it was a bad time you go to buy your first house and and I mean call after call after call it's like the underwriter is mad about this or here's another one I'm the flooring contractor your house has asbest and then it's like a new buyer like maybe this is it for me yeah it's hard man oh the Market's going to crash double dip recession you know it's like yeah it's tough man it is hard and then part of me is like okay well maybe not everybody's meant to do make progress and and take action and do these things like which is kind of a pessimistic way to look at it it is but but you know what like on the other on the flip side I I look at uh like I think to myself in this alternate world if I could have the simplest most stress-free life what would that look like and it would probably look like you know working Monday through Thursday 9 to 5 at a job that gave me some fulfillment and then the rest of the time I could go to my kids soccer practice hang out with the kids family go on vacations get time off right and that is like basically a government job right so to an entrepreneur that sounds horrible but like for if you want the least amount of stress and you're not worried about that fulfillment ride there's nothing wrong with that yeah that's a great way to go we need people like that too right of course and like in an alternate reality I wish I didn't have like I almost think it's a curse it is a curse this this like I need to do all this crap right like I wish I didn't have that feeling I wish I could could just be happy working 36 hours a week I get that from my circle of like why would you do that yeah why are you doing that why would you open up another one and to me it's it isn't about the money it's about doing it and building and all that stuff you're talking about yeah for sure Peter shout out your business uh rencon Property Management in Ventura California best property manager ever and you have a real estate meetup on November 30th at the topa toopa brewery in uh it's it's on NL so it's in inv Ventura California uh that's over by the dump by NL yes yes uh how can people follow you uh I'm not personally big on social media but rencon is so Instagram Facebook all those things Ron Property Management yep amazing thank you so much hey thanks for having me it's been fun appreciate it
Comments 0