The Short Term Rental Profits Show
Navigate the rapid rise of short term real estate investment properties with the SHORT TERM RENTAL PROFITS podcast. Airbnb and VRBO have created new opportunities for savvy income property investors to increase cash flow and maximize ROI. Listen to SHORT TERM RENTAL PROFITS and learn how to identify the best markets to invest in as each city offers unique ratios of risk and profitability. Learn how property managers can simplify the experience for investors and how you can leverage dynamic pricing to maximize revenues as seasonal demand varies throughout the year. Listen and learn how to market and advertise your property using the latest tools and learn the key differences between short term rental and residential rental strategies. Do you want to increase positive cash flow today while tapping into the short term rental market of tomorrow? Listen to the SHORT TERM RENTAL PROFITS podcast and learn key tips on how to select, purchase, and market your property. Your family’s financial freedom is just one podcast away, listen to SHORT TERM RENTAL PROFITS today.
Obviously, 2020 was a rough ride for most businesses, particularly those included in the travel industry. Eric Moeller, CEO & Co-Founder of STR Legends, gives us a peek into his business through 2020 in the Short Term Rental market. STRs aren't just about the real estate business but also hospitality. Airbnb made some massive decisions to cater to the guests' needs and not so much their partners in business, the hosts. These hospitality decisions shifted how STRs had to operate to maintain high occupancy.
[2:20] In one year, the industry collapsed, there was speculation of AirBnB collapsing, and now a year later, the business model has changed, specifically the length of stay.
[3:30] The urban markets have collapsed since COVID-19.
[5:00] Have the operators given cuts for longer stays?
[6:21] "30 Day Stays"
[9:55] "Home Instead of Home"
[12:30] Markets outside of major cities are doing 98% occupancy.
[13:15] Tiny home experiential markets, for the 30 Day Stay
[16:10] AirBnB decisions were being made to prop up their IPO rather than worry about their hosts.
[23:00] Even Google is trying to get into the short term rental market.
[25:20] Airbnb is a great place for building your business compared to other OTAs (online travel agency)
Robert Rosenthal, Co-President for the Foundation for Inner Peace, joins Jason Hartman today for this tenth episode special. Rosenthal shares his understanding of the ego and how one might interact with it, or believe in interacting with it. He also shares life-changing concepts about forgiveness. Rosenthal also authored, From Never-Mind to Ever-Mind.
[3:20] A Course In Miracles, and we aren't talking about religion here.
[5:30] A course to know yourself.
[8:45] To some extent, we are all seeking security.
[11:14] "There's no such thing as a bucket list in A Course In Miracles."
[18:30] In understanding ego, ex: we never confuse ourselves with our playing piece in a game of monopoly.
[23:00] The ego is intent on its pseudo survival; it's not real, but it thinks it's real, and it needs to convince you that it's real.
[31:30] How and who do we forgive? Do we forgive Hitler?
[33:00] We want to be willing to forgive everything, even if we aren't ready.
[40:00] There is nothing anywhere else ever; the body is a limit.
New Year, New Goals, Same proven asset class! Jason Hartman invites you to celebrate with him another fantastic year of prosperity for all real estate investors practicing some of Hartman’s proven investment techniques. Following the celebration, we must look for the “what next” plan or goal. How do you build your goals? Do you write them down? Do you create realistically achievable goals?
[1:30] Let’s celebrate our prosperous year of 2020 and look forward to another great one to follow.
[5:00] The Hartman Stimulus Payment CONTEST
[8:45] Be a self-sufficient person.
[10:00] 80% of Americans do not have goals, and even fewer have written them down.
[10:40 New Years’ Resolutions are so cliche.
[12:15] A goal should be just out of reach but not out of sight.
[15:20] The Winner of the 5-Year Plan Video Contest
[15:40] Winner, Michelle, laid out how she and her family intend to achieve their income property goals.
[21:20] It’s the kind of person we become just by trying.
[22:00] SMART Goals
[23:00] Smartsheet from monday.com
[26:50] Balance out your portfolio.
Jason Hartman discusses with Rabbi Moffic the successes and fears of Moffic's short-term-rental (STR) purchase, taking place at the outset of the pandemic. The STR market was divided into great success and great struggle through the coronavirus pandemic. The automobile once changed how we lived. As we move into a period where cars are self-driving, we will see another significant shift in how we live.
[1:45] Bubble In the Sun, The Florida Boom of the 1920s and how it brought on the great depression
[4:00] Evan purchased a Short-Term-Rental Home in St. Augustine, Florida, in February 2020 (COVID-19).
[9:50] What had more influence on society, automobiles or Genghis Khan?
[14:00] Automobiles once changed how we lived; Apple self-driving cars and Tesla are both likely to change how automobiles affect our lives.
[19:20] The rise of suburbia is upon us.
[22:30] Housing inventory is the lowest; it's been in recorded history.
[27:45] New inventory is impossible to pencil out as a starter home.
Jenna Weinerman, VP of Marketing from updater.com, joins Jason Hartman to share some facts and figures on Americans' move out of big cities. Updater is an app that helps to complete all of the peoples' moving-related tasks. This app has a lot of moving data collected from real estate businesses across the US.
[2:00] What is Updater?
She is the VP of Marketing -
Updater helps to complete all of the peoples' moving-related tasks.
[3:00] With Updater, they can survey one-third of the market.
[5:00] Jenna explains the difference between moving and a relocation event in terms of the pandemic.
[6:45] Is there support for the anecdotal evidence that people are moving mid-pandemic?
[9:45] Bidding wars across the country with this unusually long real estate season.
[11:00] Zoom fatigue. But the tech is there to work from home.
[11:45] Three more national moving trends starting with: the distance that someone moved.
[14:45] Why did mobility spike? Why are people moving in this period?
[15:15] Are people leaving the city?
[18:30] Warm southwest climates are receiving more new residents.
[23:00] You can't always take data at face value.
[24:00] Discussing net loss.
[28:30] What cities are making headlines and why? The Covid-19 Effect on NYC
[29:45] San Franciscans liked to stay in California, while NYC residents likely left the state.
[33:25] Jenna continues to break down where people that fled ended up.
[35:15] Where did San Franciscans go? … besides California, Texas!
[40:00] Where are Boston and Vegas residents going?
[43:00] A lot of people are moving to Denver, CO. Where are they coming from?
[47:30] What should our country expect moving forward?
[52:00] If there were ever a time to purchase a home, now is it!
Clear some confusion about tax strategy, and gain some added tricks of the trade by listening to this interview. Jason Hartman talks with Amanda Han and Matthew MacFarland, authors of Advanced Tax Strategies for Savvy Investors. Tax laws can change every year, so it’s crucial to take advantage of them as soon as you can. Learn what most investors forget to do for some of the best write-offs.
[2:30] Excited to have advanced tax strategy with a focus on RE
[3:00] Will we lose the 1031-Exchange with Biden in office?
[8:10] Many RE investment property owners overpay on taxes because they do not view themselves as a business when it comes to their taxes.
[13:40] How do I take more deprecation sooner than later, with a cost segregation study?
[20:20] How do you prepare to take unlimited deductions, regardless of income - by qualifying as a real estate professional?
Zoom Virtual Event: October 17th, 2020
Early Bird Admission: PandemicInvesting.com
Get Instant access to Jason Hartman’s newest report, you'll learn…
- The modified square root shaped recovery
- Understanding the rare economic malady of supply/demand shock
- Generational PTSD and what it means to you & society
- The six lifestyle mega-trends that will change the world forever
- And much much more!
Jason Hartman talks Real Estate Wholesaling with Lex Levinrad. Lex takes us through his work-flow and how his business spans real estate wholesaling, flipping, and rentals. Jason finds out how Lex is continuing to find foreclosure inventory and talks about the anticipation of changes in the next three years.
[1:26] Explaining wholesaling
[5:00] How are you finding foreclosure inventory, and is it more-so of a struggle currently?
[7:30] With current trends, short-sales will become a booming business again in the next couple of years
[9:30] What’s the step by step?
[12:55] Understanding the concepts of whole-saling, and the order of process
[19:30] No matter what you are doing, flipping, or wholesaling, remember to keep a couple of rentals as well
Jason Hartman spreads the news, lumber prices have gone through the roof. What does this mean for new construction homes? What does this mean for the homes you already own?
Jonathan Martis, CEO and Co-Founder of Kleard, joins Jason Hartman today to share his business with smart locks, smart real estate, and self-tour tech. Open a house for potential clients from anywhere in the world, and get pre-qualifying information alongside. Will this tech move to the short-term rental market as well?
[1:30] From a weekly report on the lumber market: Prices have gone through the roof on southern yellow pine, an essential building material for homes.
[4:00] The houses you own are index funds for commodities.
[7:45] Meet the Masters VIP Follow-On Session Number 2
[11:00] 42% mortgage interest rate in Honduras (1994)
[13:30] Index + Margin = Rate or the lenders interest rate
[16:25] Since April 17th, the average new single-family home has increased in price by____?
[21:00] What is Smart Locks by Kleard, and how did it come about?
[24:45] Jonathan explains how to use Kleard for self-tours.
[34:00] How much does it cost?
[39:25] What’s next in the smart home industry?
Dr. Richard D. Wolff, professor of economics and author of Understanding Marxism, joins Jason Hartman today, discussing the global economic meltdown. Wolff shares his interpretation of marxism and why he believes that is has been poorly applied. As well, Hartman and Wolff discuss capitalism in America, the perception and the reality.
Wolff and Hartman discuss the disproportionate pay between CEO and workers. The CEO to worker compensation ratio has changed dramatically. Wolff states that a cooperative/directorship might work using the example of The Mondragon Corporation.
[2:15] Was Karl Marx's ideas applied wrong?
[8:45] "A liberal and a marxist are not the same things."
[10:30] What is a Marxist?
[12:45] Capitalism didn't make the break from fatalism and slavery that it thought it did.
[16:45] Did any country have genuine pure marxism?
[20:30] "There's a reason that a very small number of people are capitalists (entrepreneur) and a very large number of people are workers" - Wolff
[20:45] How do we solve the issue of disproportionate pay between boss/worker, redistribution?
[24:00] How would a company run with a representative republic, cooperative, or directorship?
[25:10] Successful Co-op, The Mondragon Corporation.
[31:45] What is the Yellow Vests Movement?
James Rosebush, a former Deputy Assistant to President Reagan, is on the show to discuss his book, Winning Your Audience. He shares tips to sound more like Reagan, the great communicator.
[2:30] Reagan, the great communicator, loved his audience. This was his secret to success as a speaker.
[8:20] Speech abilities given to Reagan because of his history as an actor.
[12:00] Some tips to speak a little more like Reagan.
[16:00] Visualize what you want to give brilliance to your speech.
[18:00] The experience of being blessed by the Pope.
[19:00] 65% of communication is non-verbal.
[23:00] If you speak from your heart, you will win.
[26:00] We need more speakers that are sherpas.
What is the “dollar milkshake theory”? Brent Johnson joins Jason Hartman to share his ideas and concepts on macroeconomics. Particularly, what’s the strength of the U.S. dollar, and how does it compare to gold and other currencies? Brent also shares his thoughts on modern monetary theory and the possibility of its presence in the future, and potential problems.
Brent Johnson also discusses the broad term currency as it pertains to gold, the U.S. dollar, and many other currencies around the world. Brent shares his views on gold and the role it plays. As well, Brent and Jason discuss what is needed for money to be loaned into existence.
[2:00] Dollar milkshake theory.
[4:00] Discussing MMT Modern Monetary Theory
[5:30] Until a new system is designed, there is no place to go, other than the U.S. dollar.
[9:10] Does MMT work or is a pipe-dream?
[12:35] Let’s talk about gold and the role it plays.
[19:00] Because money is loaned into existence, you need monetary velocity or credit expansion to be taking place.
[22:00] What about military tensions?
[26:45] How delicate is our economy that corporate giants need bailouts as bad as family-owned restaurants?
Investment Counselor Adam talks to one of the lenders in the Jason Hartman network about what's going on with interest rates these days. People are locking rates below 4% on properties $100,000 and up! The two explain why you should not let your loans go into forebearance, how potential mortgage forgiveness could disrupt the market, and what to keep an eye on for the next 30 days.
Stay Calm, Keep Good Counsel, Keep Your Eye On The Ball, Take Action. Rinse, and repeat. Jason Hartman is joined in today’s episode with his co-host from the Solomon Success Show, Rabbi Evan Moffic. Evan brings up some challenging questions about a new potential tax break from the CARES Act. What does Trump bring to the table as our first RE President? Will there be a global currency or an ever-growing nationwide rental assistance program?
[1:25] New tax break, CARES Act, using depreciation to offset capital gains?
[5:20] Trump is the first RE President
[8:30] Herd immunity thoughts in the U.S.
[10:00] Public health is linked to the economy
[12:30] Stay calm, keep good counsel, keep your eye on the ball, take action
[23:00] Review from a listener, Andrew. Thank you!
[25:15] Will we go to a nationwide rental assistance program, like section-8?
[27:00] Will there be a push to a crypto-currency?
How have short-term rentals changed amid coronavirus? Jason interviews Evan on his recent short-term rental purchase and how bookings have changed. Once again, this proves the shift from high-density living environments to low-density dwellings.
Stay tuned in to hear from a local market specialist with details on Jacksonville, Ocala, Palm Coast and Atlanta. What information can we learn about current mortgage rates and how they compared to rates post 9/11?
[4:00] Closing on a potentially life-changing short term rental, with Evan
[7:30] Airbnb property manager is using dynamic pricing
[9:45] Lower density areas are perks for short-term rentals, especially if they are in driving distance from high density locations
[14:45] Real estate, if you can stay when others fold you’re really in good shape
[18:00] Part II - with local market specialist
[26:22] Current mortgage rates are better now than we’ve ever seen
[27:40] Updates on Jacksonville, Ocala, Palm Coast, Atlanta
Today, Jason Hartman unlocks one of the most powerful investment tools as an alternative to the 1031 exchange. The great thing about coupling an unsecured loan with a qualified intermediary installment sale is that you start with a new property and a new depreciation schedule.
Before this investment skill is revealed, Jason shares an update on the promise of the ‘federal’ reserve plan to keep the economy in shape. Beware of the elevator, even the NYTimes is talking about the population density problem.
[2:10] The US ‘federal’ reserve is taking the role of buzz lightyear, to infinity and beyond. They will provide unlimited asset purchases, with no limit to what they will do to prop up the economy
[5:32] Winning is a relative game: Here’s how you do it!
[9:35] “Density is really an enemy in a situation like this (coronavirus)” NYTimes Dr. Steven Goodman, an Epidemiologist at Stanford University
[10:10] Trump is going to reopen the US
[11:00] Chinese are cleaning their money, digital currency
[12:00] Everybody needs more room if we are going to be at home all the time
[14:25] Guest, Tom
[16:45] If you do an installment sale, you pay taxes on an annual basis
[19:15] Why is a QI (qualified intermediary) needed?
[25:50] The great thing about coupling an unsecured loan with a qualified intermediary installment sale is that you start with a new property and depreciation schedule
[28:50] Don’t forget the rule of 72
[33:10] This can be a rescue from a 1031 exchange that isn’t working out
Jason Hartman speaks with returning guest and author of the book, “Heads I Win Tails You Lose,” Patrick Donohoe. The conversation touches on topics of an ever changing world culture that continues to reshape how we approach wealth, the freedom to do, and in what we find meaning. Despite some of the chaos and cultural decay, the 2020’s are going to bring some excitement to the world.
[20:40] It’s not freedom from having to do something, it’s freedom to do something.
[22:07] The order of magnitude: an interesting time in history where we are going to see massive change.
[24:00] The rising 3 billion, that aren’t online yet: If you think that society has benefited from sharing knowledge, you’re right.
[26:38] There will always be winners and losers
[28:40] The Ritz Carlton Slogan discussion “Systemize the predictable so you can humanize the exceptional.”
[32:27] People are still trying to find meaning in other things.
[33:16] A little bit of struggle is good for the human spirit
Jason Hartman makes his way to Medellin, Colombia to chat with George Gammon about creative real estate investing linked to the Colombian Peso and oil. The two discuss the CAPE ratio and what is cheap in the United States.
In our second segment today, Jason is joined by in house economist Thomas Young, to discuss our Presidential Candidates Capital Gains Tax Plans. Do these new Capital Tax Gains Tax Proposals make sense?
[3:15] George Gammon, what took you to Medellin, Colombia? Pesos and Oil?
[7:05] Real Estate Investor turned reality tv star
[9:25] Colombian house flipping
[13:30] What is the CAPE ratio or Shiller P/E ratio?
[17:15] What is cheap in the United States?
[20:35] In house economist, Thomas Young, and capital gains taxation
[23:36] Zero Sum Gain
[28:30] The government’s tax code currently encourages investors to take the risk, and that risk is sometimes successful and grows the economy
Jason is joined with investment counselor Carrie to discuss some more current properties. Take a mini-tour with Carrie in York, Pennsylvania, or listen up for this auditory property tour through Alabama, Georgia, and Indiana.
In the second segment today, Jason discusses the hybrid approach to property management, prompted by a Voxer message from client Bruce. As well, Jason speaks on three basic economic maladies; inflation, deflation, and stagnation. This drives the show to our final topic of Jimmy Carter and Malthusian thinking.
[1:20] Atlanta, Georgia area property only 9 miles from the Hartsfield-Jackson Airport
[4:30] Port city, Mobile, Alabama property offers low property taxes
[7:00] Property Tour with Carrie in York, Pennsylvania
[9:00] The latest empowered investor, Bruce, taking the hybrid approach
[11:40] Firing your property manager, self-managing or the hybrid approach. Not all bad or mysterious
[13:30] The three basic economic maladies; inflation, deflation, and stagnation
[18:40] The carter administration was typified by Malthusian thinking
[19:45] Jimmy Carter’s infamous Malaise Speech
STR 40: Debt Coverage Ratio, Loan Limits & Appreciation Estimates
Jason Hartman is joined with investment counselor, Sara, and they discuss some current properties that you view on the JasonHartman.com website. As well, the two discuss some common investor questions including the 6% appreciation estimate and strategy for navigating the Fannie Mae, Freddie Mac loan limit.
Today’s second segment, A Fire-Side Chat, Jason is joined at a live event with three guests. The three guests share a quick background to their real estate journey: the how, the why, and the success of their real estate ventures.
[2:38] If you’d like a private tour with a local market specialist, contact one of our investment counselors
[6:13] Where does the 6% appreciation estimate come from?
[9:12] Fannie Mae, Freddie Mac loan limit is 10 financed properties per person: make a good use of your financing with a fourplex under one conventional loan
[10:03] The debt coverage ratio provides a little comfort for the conservative investors
[12:23] Mortgage Sequencing for loan leverage
[17:11] A fire-side chat with Doug, Evan, and Sara. The barrier to entry and success stories.
[23:04] Are tech startups changing the world?
Hartman Investment Counselor, Adam Schroeder, talks with one of the network’s lenders to discuss how mortgage rates are shaping this February 2020. The two discuss current events and the impact that those events might have on available rates with the hypothetical purchase price of $100k.
Thou shalt diversify. The continuation of our discussion on due diligence. Jason and Adam present tips on investigating the areas in which you own property. Use tools like google street view to take a tour of the surrounding areas to understand the influences for value and rent.
Adam shares a real life scenario on a property in Merrillville, Indiana. Find out what questions you should ask before investing in a property.
[3:00] Thou shalt diversify. Diversity into three to five markets.
[5:55] Use google street view to understand the areas that surround your investment.
[8:30] Check with local property management companies to confirm rent estimates.
[11:15] Put the system to work with a real life evaluation of a current property.
[14:10] The institutional apartments do a really good job of squeezing the rent out. We should be demanding more for our properties.
Do the Due! Do your due diligence. Jason Hartman speaks with investment counselor Adam Schroeder about key aspects of income property investing including; checking home prices with Zillow and contacting the Tax Assessor. The two give insight on working with lenders and the importance of home inspection and re-inspection.
[4:00] Where to find pricing: MLS, Zillow and Tax Assessor
[9:10] Pictures can be insanely misleading. Sometimes, it’s not even the same house
[14:25] A quick call to the country tax assessor can give you a ballpark estimate on taxes for an investment property.
[19:35] Lender deals can change due to dynamics of reevaluations.
[24:00] The licensing laws vary from state to state, check the requirements for you state
Jason's investment counselor Adam talks with one of the lenders from the network about what interest rates are now and what they're likely to be throughout 2020.
Jason Hartman and Rabbi Evan Moffic take a look at America's one affordable trophy city: Chicago (which just so happens to be where Evan lives). The two explore the things going on in the area that are helping drive business and helping investors in the area make some good money.
Then Jason and Evan explore the Memphis market and what the two like about the future of the city.
[8:28] YouTube offers the ability to learn anything
[12:15] Chicago is the only cheap, iconic city in America
[16:04] Democrat leaders in Chicago have still been pro-business
[19:02] 2 big things that are happening in Chicago right now that are good for investors
[22:09] Evan's thoughts on the Memphis market
Jason Hartman and investment counselor Carrie discuss two properties that are available through the network right now that are definitely worth a look. Listen in to hear about how properties in Maryland and Mississippi might make good additions to your portfolio!
Jason talks with Spencer Burleigh, co-founder of www.RentTheBackyard.com. Spencer's company will build a unit on your land, list it online and split the rental profits with you 50/50 as long as you have an area at least 25' by 20' clear and you live in your home most of the year. Listen in as Jason and Spencer discuss the business model and how you can take advantage of it.
Jason Hartman talks with Matt Curtis, founder and CEO of Smart City Policy Group, about the state of short-term rentals in today's society. Matt explains why he thinks that no matter what people in power do, they won't be able to stop the movement that is short-term rentals. Matt also discusses what he expects for the market when the economy inevitably sinks into a downturn and people stop taking so many vacations, and why a societal shift is key to that.
[4:15] Technology is leading us closer to a Jetsons like world
[6:52] Short-term rentals seem like they're going to win out over areas that are currently resisting
[10:06] It's not hard to see why some areas of the country are resistant to the idea of short-term rentals
[13:51] Are short-term rentals squeezing renters out of the higher end homes?
[18:13] Commercial mix-use multifamily seems to be an area that there's no qualms using for short-term rentals
[20:23] What happens to short-term rentals when the next recession hits?
Jason talks with Marc Biron, founder and CEO of Home Diversification Corp, about his product that is intended to help homeowners diversify their market risk in their own home purchase. The product is intended to help protect homeowners from downturns in the housing market in their local zip code by indexing it to the national housing market. Listen in as Marc explains why it would make sense for homeowners and how it works.
[1:55] How Marc's mortgage product can help diversify market risk
[6:14] Marc claims his product is 42% more stable than the average housing market
[10:29] A sample case of how the product works
[13:58] Home Diversification uses the Zillow statistics for national home price indexing
In this off-topic 10th episode, Jason Hartman talks with Tal Ben-Shahar, co-founder of The Happiness Studies Academy and best-selling author of Happier and the new book, Short Cuts to Happiness: Life-Changing Lessons from My Barber, about how you measure happiness, predictors of happiness and what sorts of things Tal was able to learn from his barber. They also discuss whether Millennials and Generation Z to see if they've been coddled too much or if we've just learned how to better communicate with them.
[4:30] How do you rate a country's happiness?
[6:57] There's only one thing that predicts happiness levels on a national level
[11:16] The hazards of social media on happiness
[13:18] Lessons learned from Tal's barber
[18:48] How to praise people properly to encourage growth
[21:37] If you don't teach people to face reality then you're setting them up for failure
[25:01] The first step toward happiness is, surprisingly, allowing in unhappiness
Jeb Carty, co-founder of Zumbly, joins the show today to discuss their new product and how investors can use them to maximize their returns.
[1:38] How Zumbly differentiates itself from generic MLS websites
[5:51] All the assumptions in Zumbly's calcuations are adjustable
[9:01] Zumbly is hoping to provide the newest of investors the best information possible to make smart deals
[9:58] Millennials are looking for a new way to buy
[14:26] Zumbly's rolling out in 10 more markets
Jason Hartman talks with Jennifer Hsieh, VP of Homes and Villas at Marriott International, about how Marriott is working with short-term rental property owners to become a big player. Jennifer explains why she doesn't feel the short-term market is over supplied and whether this is all just a fad.
[1:24] Big players have been entering the short-term rental market for a while
[3:35] How does entering your property into the Marriott branded pool work?
[6:00] The target demographic
[9:44] How do companies like Marriott take care of customers when it comes to short-term rentals?
[12:10] What happens to the short-term rental market when the economy turns
Jason Hartman talks with Rob Stephens, co-founder of Avalara MyLodgeTax, about whether the short-term rental market is oversupplied and what the impact of institutional investors is doing to the marketplace as a whole. They also discuss some of the tax implications of running short-term rentals.
[1:46] Is the short-term rental market oversupplied?
[5:13] How will short-term rentals hold up in the next economic downturn?
[9:32] What has the increased usage of short-term rentals done to the timeshare market?
[10:51] The way institutional investors are getting involved in short-term rentals
[15:42] Tax compliance
[18:57] How much do room/tourism/hotel taxes differ across the country?
Jason Hartman talks with his Local Market Specialist from the Jacksonville/St Augustine markets about what types of properties are available. The markets offer new construction single family, duplexes, and short-term rentals for purchase that all cash flow.
[2:28] The 3 types of properties the Jacksonville/St Augustine markets provide
[7:11] Who are the short-term rental target tenants?
[10:41] You can cash flow expensive properties, but you have to do it in a different way
Jason Hartman talks with Bob Oakes, President of Village Realty, a short-term rental management company that's been in the business since the 1980s. The two discuss how the short-term rental landscape has changed over the decades and how technology is being used by his company to improve the tenant (and owner) experience.
[3:06] How the short-term rental market has changed
[8:09] Smart locks have substantially changed check-in processes for short-term rentals
[10:54] What other smart home features Bob's group uses
[14:13] The most effective advertising you can do for your short-term rental
Jason Hartman talks with Eric Anderson, The Airbnb Guy, about how to succeed in the short-term rental space today. Eric has been in the short-term market for about 20 years, so he's seen it all. Jason drills Eric on some best practices for generating bookings and gets Eric to dish the #1 thing to do to increase listing requests (hint: it's not that expensive).
Eric also gives Jason his thoughts on what will happen to the short-term rental market when the next market downturn hits, as well as whether sites like Airbnb are going to go the way of Amazon by cannibalizing their customers and taking over the market.
[1:15] How Eric got his start in short-term rentals
[3:09] Some best practice techniques
[6:03] The #1 thing to do to help get you enough listing requests to be picky with tenants
[8:49] What's the likely scenario for short-term rentals when the next recession hits
[12:22] Is Airbnb going to go the same route as Amazon and cannibalize their market?
Jason Hartman talks with TJ Clark, co-founder & CEO of TurnKey Vacation Rentals, about making it easier for owners to manage their short-term rental properties. TJ explains how he's trying to help owners evaluate tenants and why they're pickier than places like Airbnb when it comes to guests.
[1:51] What Turnkey Vacation Rentals does and why it matters
[6:50] How TJ's company helps evaluate potential tenants and monitor your property
[8:52] Why Turnkey feels the need to verify guests more than AirBnB does
[12:10] What's next for Turnkey?
Jason Hartman talks with Chuck Hattemer, Co-Founder & CMO at Onerent, about how their technology is changing the property management game. Chuck and Jason discuss the big problems that face investors and renters, and how Chuck aims to solve those problems, including how they're attempting to eliminate vacancy losses.
[1:39] What is Onerent?
[5:54] The biggest problem Onerent sees is fragmentation
[11:38] Who is Onerent competing with?
[12:55] The next phase of real estate and what services are coming up in the space
[17:49] The industry is becoming more and more refined and efficient, which should excite investors
Jason Hartman talks with Marcos Jacober, Airbnb Superhost and author of Eat This Mr. President: How a Brazilian Immigrant Went from Truck Driver to Millionaire in 4 Years, about how to pick short-term rental markets, what properties to target, and convincing landlords to let you use their properties for short-term rentals.
[3:07] Where the idea behind Marcos' Airbnb business came from
[5:03] What kinds of properties does Marcos target?
[6:52] What is the "Burger King Effect"?
[10:36] Marcos' advice to hotels if they want to compete with short-term rentals
[14:05] How to convince a landlord to let you use their house for a short-term rental
[16:43] Marcos has had better luck convincing investors to let him use their homes rather than homeowners
[20:38] It's never been easier to become financially free, and the sharing economy is the future
[22:30] How Marcos deploys his capital
[26:28] How to find "struck off" lists
In this off topic 10th Episode, Jason Hartman talks with Adam Andrzejewski, founder & CEO of www.OpenTheBooks.com, about wasteful government spending and how President Trump is doing at stemming the tide. Open the Books' mission is to track "every dime, online", even going so far as to have an app where people can follow the money in as close to real time as possible.
Adam discusses how pervasive the pork barrel spending is, how large the trough has grown, and what areas are most ripe for trimming.
[2:34] Why is Open the Books different from other government spending watchdogs?
[6:14] How is the Trump administration doing when it comes to government spending?
[10:30] Absurd levels of grants ($600 billion) were given out in the final year of Obama
[13:07] Pork barrel spending knows no party affiliation
[17:07] It's our constitutional right as citizens to see all the expenditures of our government
[21:36] 2016s highest bonuses
Jason Hartman talks with Dr Andy Krause, Principal Data Scientist at Greenfield Advisors and AVM Analytics, about the state of automated valuation models (AVMs), the potential future for AVMs, how they work, and what practicalities are slowing their development down. The two also discuss the wide range of uses AVMs have, how they're going to be changing moving forward, and how short-term rentals are impacting housing markets across the country.
[1:23] The biggest AVM people know about is Zillow
[2:25] The science (and accuracy) behind current AVMs
[5:18] 2 things that are stopping a database from happening that would significantly improve appraisals
[9:49] How does the AVM come up with a value?
[15:24] What the AVMs do outside of simply valuing individual homes
[17:45] The future of AVMs
[21:04] The effects of the short-term rental market on the overall housing market
Jason Hartman interviews Rich Dad Advisor Ken McElroy, who will be speaking at this year's Meet the Masters of Income Property in La Jolla. Ken tells Jason some of the most common mistakes he sees real estate investors make, why you can't just buy real estate any time you like, and some tips on how to do property management the right way.
They also discuss why the American idea of home ownership may be a massive myth, and two critical pieces to your investment success.
[4:51] The two common mistakes Ken sees in real estate investors
[6:54] Real estate is cyclical, so you can't just buy all the time throughout your career
[9:16] Ken's real estate business model
[10:55] Some tips on how to do property management right
[13:36] C class properties look good on paper, but in the long run, better quality properties bring better quality tenants
[20:23] It's important to treat all your residents as your customers
[21:49] Is the idea of home ownership a myth?
[23:55] Population growth and migration are two things critical to investment success
[27:14] The state of the states
Jason Hartman talks with Steven Quintanilla, co-founder of SpaceCadet, about the short-term rentals. But this time, however, we're not talking about short-term residential property, but short-term commercial property rentals. Steven tells Jason about how the process works and the arrangement can benefit both sides in certain situations.
[8:33] What is a micro-rental?
[15:22] Are there any places to go to browse available properties?
Jason Hartman talks with Nate Secor about his transition from the long-term rental market into the short-term rental universe. Nate opens up and shares profit margins, business planning, home picking, furniture finding and more as these two discuss every aspect of starting up your short-term empire.
[1:36] Nate's evolution from long term rentals to short-term
[6:04] One of the mistakes Nate's made along his short-term rental journey, and why you should target cities that charge a tourism tax
[10:32] Nate's an Airbnb only guy, but what would his second platform be if he were using one?
[11:50] What to look for in a property for a short-term rental
[13:44] How Nate is pricing his properties
[17:43] Does Nate actually visit the properties he has? And how do he and his partner split responsibilities?
[22:40] Where to find furniture and housewares
Jason Hartman talks with J Massey, real estate investor, author and host of the Cashflow Diary Podcast, about his new venture into short term rentals. J and Jason discuss why J has gone into the market, where he finds the best prices, what technologies J is using in his units, and the systems he's put in place to ensure his operation runs smoothly.
[2:06] J has done many different types of real estate, why is he in short-term rentals now?
[6:16] How J realized how to leverage high priced real estate
[9:33] J rents out entire apartment complexes for short term rentals
[10:37] The #1 reason an owner would let you rent their place to turn into a short term rental
[14:04] Where J finds the best prices
[19:38] What locks and sound monitors does J like & use?
[24:31] A unique differentiator for J's units
[28:21] Is there any concern that the next downturn will cause a spike in vacancy rates?
[32:04] What systems does J have in place?
[36:42] Can you self manage short-term rentals while you have a full time job?
Jason Hartman talks to Robbie Kramer, co-founder of SenStay, about how to invest in the short-term rental business. Robbie and his company owner or manage over 100 units, and peaked at over 250 before scaling back.
Robbie talks markets that have been good for their company, how to turn a leased property into a short-term rental, how much you should expect to pay a short-term rental property manager, and a lot more tips on how to get up to a 6x return on your money.
[2:14] How Robbie got into short-term rentals
[5:53] When he first started, Robbie didn't tell some landlords what he was doing, which got him into some trouble
[7:21] Where Robbie sources his furniture and other furnishings
[10:22] How does Robbie deal with the uncertainty of getting a place, spending money to furnish it, then hoping for bookings?
[13:17] What Robbie does & doesn't like about each of the short-term rental website platforms
[17:29] How is Robbie paying the on the ground manager?
[21:40] What kind of technology Robbie is using in his rentals
[25:49] Robbie's bread and butter investing technique
[27:57] How do you convince a landlord to let you turn their house into a short term rental?
[31:46] Memphis is becoming a short-term rental market where you can 4-6x your money
[33:52] How much do short-term rental managers cost and what should you be looking for in one?
Jason Hartman talks with James Guzman, founder of San Miguel de Allende Vacation, about some of the tools he's using to run his vacation rentals, as well as tips for convincing landlords that they should allow you, the renter, to use their residence as a short term rental.
They also delve into how to recoup money tenants owe you, and how to truly have a successful short term rental business.
[1:32] Some of James' favorite technologies & tools to aid him in his STRs
[6:46] Is James comfortable self-managing remotely?
[10:35] The complaint process on AirBnB for recouping money tenants owe you for damages/checking out late/extra people staying
[12:54] James' advice on how to have a successful STR business
[15:36] How James handles his landlord when he rents out the place as a STR
Flavia Berys, host of the Lifestyle Solopreneur podcast and teacher at Landlord Prep, joins the show to discuss the current legal landscape of short term rentals. The fight between residents and landlords of short term rentals isn't going to end anytime soon, but Flavia has her finger on the pulse when it comes to what's happening right now.
She discusses where to find good, long term tenants, and gives some tips on how to properly manage your properties to get the best reviews from your tenants, and keep your things safe.
[4:03] What is the status of STRs in California
[6:21] The issue of laws for STRs and property rights of the owner
[12:51] 2-3 month long rentals for traveling professionals is a great market, but where do you find them?
[15:36] You need to decide what amenities to offer from the onset
[18:53] How Flavia uses her security system, and how you have to deal with cameras and your tenants
[21:41] How remote Flavia manages her properties, and a reminder that being a STR host is MUCH more personal than being a landlord
Homee on Demand is a new app that's aiming to make property management from afar easier than it's ever been before. Your tenant can alert you to a problem, send you a picture of the issue, you can get a quote, and verify the issue is taken care of.
Listen in as Sara McFarland gives a rundown of the service, how they ensure you don't get ripped off, and how you can best use it in your portfolio.
For our first 10th episode show, Jason goes off topic with former Marine snipe Jake Wood, now co-founder of Team Rubicon and author of Take Command: Lessons in Leadership: How to be a First Responder in Business. Team Rubicon takes military veterans and utilitizes their unique training for disaster response more effective and efficient.
The two discuss the important elements of leadership, some tips on succeeding in high stakes environments, and making sure you're knocking out the important things in your life rather than just skating by.
[2:19] The mission of Team Rubicon
[6:32] How Jake ended up writing his book
[8:33] Being comfortable with the 80% solution
[12:21] Tackling your To-Do list in the proper fashion
[15:54] Some tips Jake learned in the military on how to succeed in a high stakes environment
Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers.
[3:36] The 30,000 foot overview of the GOP Tax Reform
[5:31] Will this tax reform create a repatriation of wealth back to the US?
[9:22] The move that mobilized the GOP forces toward tax reform
[11:19] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals
[13:29] The standard deducation has been increased, which should increase the number of simple 1040s being filed
[16:30] The single largest revenue raiser in the entire bill
[18:42] The change in mortgage interest deductions could cause a dampening in the high end real estate market
[21:12] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul
[23:03] Pass-through businesses are getting a 20% deduction
[30:02] The accelerated bonus depreciation is enormous for real estate investors
[33:34] Changes to the 1031 Exchange rule
[37:37] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques
[39:26] 529 plans (education plans for children) can now be used to pay for private schools
[40:00] Some tax changes that were EXPECTED but didn't end up happening
The short-term rental market ranges from random studio apartments in any city across America to high end vacation homes in desirable markets. InvitedHome manages properties in the high end vacation home side of things and is trying to bring professionalization into the short-term rental market.
Market share for short-term rentals has exploded in the past decade, becoming roughly 4x bigger than it was in 2007 when Michael entered the arena. Jason and Michael discuss why InvitedHome picked the market they picked, what kind of return investors can expect to see, and what the future of the industry looks like.
[1:14] What is InvitedHome?
[6:01] InvitedHome saw an opportunity when they realized they could brand themselves as a company with quality destinations
[7:39] How InvitedHome chooses which homes to add to their network
[8:33] 3 key factors that impact your home's rental potential
[9:41] The Gross Rental Revenue to Purchase Price Ratio many investors are looking for in short-term rentals
[12:34] The process of when the homeowner wants to use the vacation home and not rent it out
[14:37] The current size of the short-term rental market is $100 billion
There is a lot of talk in the news lately about a possible downturn in the US economy, yet Jason’s guest, Ali Wolf of Meyers Research is staying bullish. She says the important indicators to watch aren’t showing the normal warning signs of a market drop. Ali also discusses the trends of Millennials with regards to renting vs. buying a home, their purchasing cycles and what they are willing, and not willing, to pay for.
[01:23] Are we at the end of a business cycle?
[04:50] Ali uses the Quits ratio to judge the state of the economy.
[06:59] Three critical indicators to use as early warning signs to a possible market drop.
[09:49] Wiil Millennials be staying put and buying homes or are they the rental generation?
[16:53] Why modern, prefab homes may offer Millennials more amenities than space.
[27:54] Inventory of existing, resale housing is lower in every single market Zondo tracks.
Business conscious people are leaving California in droves. Expert, Author, Attorney, Speaker and Advisor, Garrett Sutton shares his insight as to possible reasons for the mass exodus. He also describes the latest changes to IRS rules regarding LLCs and LPs, how income property investors can protect themselves from internal and external threats and how property holders can avoid large transfer taxes by utilizing a 1031 Exchange.
Garrett will be speaking during the upcoming Meet the Masters of Income Property in January 2018.
[2:10] California’s LLC, Estate, and Transfer Tax grabs.
[8:03] Hey California! A 1031 Exchange is supposed to be tax-free.
[13:25] New IRS rules for auditing LLCs and LP’s.
[18:43] The importance of choosing the right state to form and hold your LLC.
[27:15] Garrett Sutton explains the internal and the external attacks on LLCs.
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Maureen Regan, President of Seaside Vacation Rentals and former president of Vacation Rental Management Association, joins the show to talk about what's going on in the short term rental market, how your home can actually take less of a beating with short term tenants, how to market your property, and how to be a good host.
[3:38] Where Maureen's properties are and how business is
[6:52] How it's possible that short term rentals wear your properties less
[10:02] Maureen's thoughts on the improvement smart homes have brought to hosts
[15:18] What it takes to be a good host
[18:45] Accounting and organizational tips
While sites like AirBNB and HomeAway have brought short term rentals into the limelight, it's not a new thing. In fact it's been around for more than 3 decades.
Today's guest, Mike Harrington, is President of Topsail Realty and President of the Vacation Rental Management Association (which was formed in 1985). He and Jason discuss what's going on in the vacation rental market, the march toward standardization, and what kind of fees you should expect if you go with a property manager for your property.
[1:40] How the vacation rental market is doing right now
[6:58] The short term rental market right now is dealing with how to create professional standards in a non-standard marketplace
[10:07] What direction do short term rentals need to go to avoid massive legislation being placed on them from the hotel lobby?
[13:51] The best thing to do if you're looking to get into the short term rental market
[15:24] What kind of property management fees should investors be expecting?
Sites like AirBnB, HomeAway and the like are popping up and being used more than ever. Many people believe that they need to be in high traffic cities like LA, NY, Miami, etc, in order to take advantage of owning a short term rental property.
Wendy Sweet, Principle of Carolina Hard Money, talks with Jason Hartman about how she's making her AirBnBs thrive out in "the middle of nowhere" and some of her pricing tips and tricks to make her short term rental profits double those of her single family long term rental properties.
[1:42] Who are the AirBnB tenants in the middle of nowhere?
[4:32] Wendy's strategy for putting her homes on the market
[7:07] Wendy's pricing strategy for filling any vacancies, and how AirBnB helps with it
[12:42] Wendy's experience experimenting with AirBnB's Smart Pricing software
[15:20] The one problem guest Wendy has had so far
[18:37] How technology can make being a Short Term Rental host possible from long distance, and whether Wendy is using any currently
[22:28] Comparing Wendy's experience with long term vs short term rentals
The sharing economy isn't going anywhere, and people can make a lot of money getting involved. But you have to be smart about how you invest. Each property is different, each market is different, and each day is different, which can make figuring out exactly which properties are going to be best for purchase.
Scott Shatford, founder of AirDNA, talks with Jason Hartman about the tools his company offers that can help investors.
[0:30] The genesis of AirDNA
[4:45] The process of diving into a market to search for a property
[8:47] Average occupancy rates around the US and what, if anything, it means
[11:16] What the government is trying to do to find rogue AirBnB hosts
[16:21] How AirDNA's pricing tools can help investors
Julia Spencer used to invest in long-term rental homes, but decided to switch over to short-term rentals a few years ago. She shares with Jason what she has learned over the years while self-managing the properties she owns, and gives some tips on how to avoid pitfalls that she experienced. The fears of an all consuming time commitment, never being able to go on a vacation, and having your home destroyed by guests are explored, and we find out the true income potential of short-term rentals.
[2:43] Julia has about 30 listings for her 7 homes
[6:56] Julia's portfolio prior to starting short-term rentals
[9:40] The importance of the review system in the short-term rental market
[12:45] Julia started her short-term rental career by moving out of her own house and renting it out, and got rid of some of her long-term rental homes
[16:37] Short-term rentals and problems with neighbors
[21:10] Red flags (and green flags) for properties you're considering for short-term rentals
[25:38] What team members do you need in order to self-manage?
[31:11] Whether Julia has ever looked into using (or used) a property manager
[34:28] How Julia streamlines her operations
[38:08] A real life example of what kind of profits Julia makes on her properties