[00:00:02] This is Short Term Rental Management, the show that is all about short term rental property management with your host, yours truly, Luke Carl.
[00:00:16] Short Term Rental Management with Luke. I have several things I want to talk about today. We're going to do an open mic style office hours style podcast. And I'm really glad you're here. I'm so psyched that you are here. Summertime life is good.
[00:00:35] Just an incredible journey I've been on in my life and it's wonderful and I appreciate you for being a part of that. And we would love a review. Please hit me with the review.
[00:00:44] This teeny tiny little podcast, when I say little, I mean like niched down, you know, I'll never forget I got a property manager buddy of mine that I see at the beach every now and then is where I live. Everybody's either a property manager or real estate agent.
[00:01:00] And I asked him come on my show one time and he said, what? What podcast? I said, I got a podcast about property management management. And he goes, who the hell would listen to that?
[00:01:12] And I go, you're a property manager, maybe you should be listening, dude. So anyway, I thought that was funny, but please, please hit me with a quick five star, especially if you're on Spotify. I've actually moved everything over to Spotify recently. I love it and I have more reviews on Apple than I do Spotify. And make no mistake, that's because traditionally I have been an Apple guy and I pushed it harder on Apple than I have Spotify. At least that's my assumption because.
[00:01:46] And I finally found a piece of paper. I've been looking around for a piece of paper. Here we go. Here we go.
[00:01:50] David Letterman style.
[00:01:53] The more effort you put into something, the more return you get out of it.
[00:02:00] All right, I see too many people that get into real estate because they have googled how to get rich or something like that, and they see that real estate is passive, this, that and the other, and it is the greatest thing ever. But it is hard work if you want to do it the way I do it. Anyway. It's hard work and I like that. I like hard work, I like hard work. But I've always asked for POD reviews on Apple podcasts and these days I've switched over to Spotify. I'm doing everything on Spotify now.
[00:02:30] Love Spotify. It's great. I actually have it going in the background right now with some, with some metal, some heavy, heavy stuff that would probably scare you to death if you're not into it.
[00:02:40] But I like it.
[00:02:46] And so now I'm trying to focus. Hey, hit me with some Spotify reviews, please. Because you put that in the universe and it will come back.
[00:02:55] You read books and it will come back. You give out a dollar and you will get three back. Let me tell you a story before I get into some more stories.
[00:03:03] My daughter, I got her the. She, like, she's into these little trinkets. She calls them trinkets.
[00:03:10] And she's gotten herself 50 little tiny ducks. They're little plastic ducks. And I remember that her brother was hanging out with a friend and the friend wanted a duck. And my. Her brother, my son, wanted to give a duck to his friend and she got upset about that. I don't want to give one of my ducks away.
[00:03:31] So I made a deal with her.
[00:03:34] I said, for every duck you give away, I will give you three ducks. And I went and bought 50 more ducks. They're just these little teeny, tiny things. It was like five bucks for 50 of them.
[00:03:47] And she has been having a blast with it ever since. She gives them to every waiter, every hostess host at every restaurant. She gives them to her teachers. She gives them to her tennis coaches. And yes, she has. My daughter has three tennis coaches, sometimes four.
[00:04:09] And we just love the tennis. I only have one tennis coach. But she's giving. Now she's loving giving these ducks away because she gets three back and I'm teaching her to invest.
[00:04:28] Somewhere along the way, I read in a book, every dollar you put out, you will get three back. And ever since then, I have truly believed that as a guy who was raised with a scarcity mindset. And I have, I still struggle to this day to not have that, you know, broke dude from the Midwest, a hard working scarcity. Scarcity. Scarcity.
[00:04:49] Abundance is everywhere. Look around you. Everything is abundant. The trees are blooming. They are blooming with abundance and greenery.
[00:04:59] Scarcity is. There's no place for it. So I had to teach her that holding on to those ducks was not a good thing.
[00:05:05] We need to let those ducks free and more ducks will come back to you. And now she is loving giving them away, and I give her three every time. And I'm telling you, whatever book I read that in, I have no idea where I picked that up along the way.
[00:05:19] Thank you.
[00:05:22] Thank you. And I do believe that now the dollar has to go to good use. Putting a smile on somebody's face, whether it's a tip or spending it on a rehab on a property to make the property nicer. So the tenants and the guests have a better time.
[00:05:37] You will get three back. You will get three back.
[00:05:44] I don't know how I got on that subject, but want to teach, want to talk about today. That's. We're gonna go ahead and call that topic number one, even though it was just a precursor.
[00:05:52] Thank you for listening. We sincerely hope that you find value in this podcast.
[00:05:59] We would love it if you would use our team to purchase your next vacation home.
[00:06:04] We sell houses in all of the best vacation markets in America and we want to earn your business.
[00:06:12] Reach out to us
[email protected] stsconsultation.com that's the shorttermshop.com my next topic is patience. I see too many people.
[00:06:33] Actually, I'm going to come to. Back to that. Let's go to.
[00:06:36] You might be a property manager. If I'm going to come back to the patients thing, because that one's really important.
[00:06:44] I'm not ready for it yet.
[00:06:47] I'll make sure I head it home, baby.
[00:06:49] But I do want to point out, and I've said this a thousand times, and honestly, if you're listening to my podcast, I'm preaching to the choir. It's probably not necessary to say this stuff, but I'm going to say it anyway. If you are hooked on this and trying to co host and trying to manage more properties and hooked on the Airbnb reviews and hooked on the verbo bookings and loving it, loving it, loving it. You are a property manager.
[00:07:19] I did a podcast on it about a year ago called you might be a property manager.
[00:07:25] Please go find that and listen to it. It's an hour or whatever of me ranting and I still see it all the time, and I don't know why. I have no idea why. It's something to do with Airbnb and their culture. They feel like these folks feel like they invented something.
[00:07:45] But what you're doing is managing a property and that is what property managers do.
[00:07:55] I see it in there. I see it in your face. If you thinking. If you're thinking about moving over to co hosting, oh, my goodness, I can co host. I don't have to own the property, Its property management.
[00:08:11] There are hundreds and hundreds of property managers in the town that I live in.
[00:08:16] You're no different than them. As a matter of fact, you can't compete with them. They have their own trucks, their own cleaning crews. They're local. They do not live in Minnesota trying to manage this thing from five states away or whatever.
[00:08:33] Minnesota, okay. It's more like 12 states away.
[00:08:40] Off on my state count either way. But anyway, there's nothing wrong with it. I don't know why people don't realize it. And then when they do realize it, it's almost like they don't want to admit it.
[00:08:52] And then I'm, I just, I just, it, it offends me, it annoys me that you don't want to go to the extent of getting a license to be an actual property manager.
[00:09:03] And here's another thing I see, here's another thing I see with you folks is that you get these huge numbers. You put these huge numbers up, you get a three bedroom house and you put up 190 grand and that's great. But then you start using that number and telling your real estate agent and telling people on Facebook and telling, telling, telling, telling, telling that you can get 190 grand out of your three bedroom and you're showing screenshots of it and the next thing you know, people are like, oh sweet, do that for me. And then you're like, okay, I'll do it for 10% because I'm trying to. I hate my job.
[00:09:41] Hello. What are you doing? What are you doing? It's stupid.
[00:09:46] You are now over promising to the point where you cannot deliver on that with other people's properties, especially at scale. Once you get four, five, six properties, which is not scale by the way, it's kid stuff, you will be overwhelmed and you will not be able to deliver the 190 grand and you will let your client down and they will fire you and you will go back to work.
[00:10:12] See it all the time. I see it all the time. Look at these huge numbers I'm putting up. I'm going to be a co host. And then you go and tell people those huge numbers. It's stupid.
[00:10:23] There's a reason professional property managers don't put up the same numbers as a host, as an owner operator, because it's freaking hard. Once you get past 10 properties, you can't even keep track of stuff anymore.
[00:10:37] You can't.
[00:10:40] And these property managers are not doing anything wrong. They're doing it right.
[00:10:47] And I love that you want to be a property manager, but I don't love that you don't realize that what you want to do is be a damn property manager.
[00:10:56] I see it all the time. I've seen guys that went out and bought a property management company and still will not admit that they're a property manager.
[00:11:05] What are you too good? You're too good to Be a property manager. You too good for it.
[00:11:11] You got to be a co host. You gotta have some fancy name for it.
[00:11:16] Well, we're a boutique and we put up massive numbers.
[00:11:21] Top producers, we're super hosts, we've got nothing but five star reviews. That's one of my favorites. Well, our boutique property management company has nothing but five star reviews. Oh, really? I remember my first beer.
[00:11:39] Cuz you're gonna get a four star, you're gonna get a two star, and if you don't have one yet, it means you're a bum.
[00:11:47] Sorry.
[00:11:51] I can't believe I got to get so fired up about this stuff. You're probably a property manager, you're just not willing to admit it.
[00:11:59] And I don't know why.
[00:12:02] I'm still waiting for people to realize that they're property managing.
[00:12:13] If you know somebody that's doing this stuff, please send them this podcast because the sooner they admit that they're just managing properties and it's not that big a deal, the better they will do. Next thing you know, they got a hundred units.
[00:12:29] You're holding yourself back by doing this boutique, 200 grand gross income per property crap.
[00:12:41] Those numbers are not sustainable.
[00:12:44] You're over promising and your clients will be let down.
[00:12:52] All right. Just something I'm passionate about. I want you to be a property manager, damn it.
[00:12:58] I do. It's a great gig. It's hard.
[00:13:01] You have to understand that you don't matter.
[00:13:06] You're just putting two people together, the guest and the host. The guest host owns the property, they're screaming at you all the time. The guest is renting the property, they're screaming at you all the time. If you don't want to be screamed at, this business is not for you.
[00:13:19] If you bartended or waited tables in college and didn't like it, don't do this business.
[00:13:27] Because it's the same damn thing.
[00:13:30] Really. At the end of the day, it's not much different than driving Uber, which I did that too. When we were first starting out, which is what my next topic is. When we were first starting out and we didn't have anything and Avery was going to grad school that night while working full time. My wife thank God for her grandmother who passed this year, she paid for Avery's grad school and I had a truck that was a piece of junk and it was just horrible, falling apart. And Avery had a fairly decent rotten Toyota, a what do you call it? Suv.
[00:14:02] And so when she would get off work and go to campus and I had A full time job too, by the way.
[00:14:09] Pretty decent one.
[00:14:11] And when she would go to campus to, to do her schoolwork on weeknights, every night for two, two and a half years or whatever it was. Two years, I would go drive to the campus. I knew where she was parking. I would trade my truck for her car and. And I would drive Uber and lift because I didn't have anything else to do. My wife, I don't think we were married yet, but my. My lady was busy with school.
[00:14:36] So while my wife was in. Well, again, I don't think we were married yet. I remember her graduating.
[00:14:43] I don't think we were. I don't know, somewhere around that time, maybe we were. I don't know. It doesn't matter.
[00:14:49] But we were starting out, is my point.
[00:14:52] When she was in grad school, I ran seven full marathons in one year and drove Uber and got enough extra mil money to buy a freaking house, a rental house. That's how we started. We worked our asses off.
[00:15:08] I did. Maybe it was eight.
[00:15:12] It might have been eight full marathons. I think it was seven full marathons in one ultra in one year.
[00:15:21] 362 days or something like that.
[00:15:25] And I still run a lot, by the way. I still, I still get out there and crank it out. I ran. What did I do? A little over six miles this morning. And I'm not even training for anything right now. I'm doing the Toronto Marathon this fall. At least it's on the schedule.
[00:15:37] Sometimes that changes based on the children's activities.
[00:15:44] So.
[00:15:46] And let me get to the point here, which is again, patience though. That dude that was you had to go borrow. Why was I doing that? My truck was not good enough. It would not qualify qualified to use for Lyft.
[00:15:58] It was too junky. So I had to go get her car.
[00:16:02] But I didn't want her driving my truck the way down because we lived out in the country at the time. I didn't want her driving my truck to town because my truck was a piece of junk. What am I gonna do? Drive her fancy car, you know, nicer car all the time and she. She's gonna drive my junkie? No, I would swap her while she was at school.
[00:16:20] Pretty sure she probably said, I'm not driving that damn truck.
[00:16:23] Okay, I'll come get your car then. How about that?
[00:16:26] Because I was trying to contribute and pitch in and throw into the pile to get some properties and I remember we bought our first house. I was 36 years old.
[00:16:36] Wait a minute. Let Me, do some math. I was probably 33 years old.
[00:16:41] Our very first house, which we flipped, lived in, flipped, put a tenant in there and then later 1031 exchanged it.
[00:16:50] Actually, we didn't have to because it was two of the last five rule. So we didn't have to exchange it.
[00:16:56] What a great house. We still talk about that house. What a great house.
[00:17:05] But I was hungry. We were hungry. We were living on $25 a day.
[00:17:11] And so my point is, is if you get into real estate. I do again, I talk about this all the time. I do need you to understand I'm not going to beat this to death like I always do. You have to understand, real estate is expensive.
[00:17:24] You know this 85% of millionaires have real estate thing, it's the other way around. You're thinking of it backwards.
[00:17:33] 85% of millionaires own real estate.
[00:17:37] It's because they're millionaires and they can buy real estate.
[00:17:41] Yes, some of them, maybe many of them became millionaires because of real estate, but they bought real estate because they're smart and they work their ass off. And real estate is the best thing for your future.
[00:17:54] People think about that one backwards all the time.
[00:17:58] Speaking of futures, I just got a picture of my son's pre K4 graduation picture. And it's. That's the future, man. It's just. It's the greatest thing ever. Those kids are the only thing that matters. And I do say, I will say I, I had that going for me. We.
[00:18:13] I'm a little older, you know, I. My average. My wife is, you know, a little bit younger than me and we kind of got our act together before we had kids. And I'm very grateful for that. But I do have the disadvantage of missing, you know, 10 years of my youth or more, which was my own damn fault. I spent too many years playing around in New York City bars and things like that.
[00:18:41] Shenanigans and stupidity and young kid stuff that I did a little too long.
[00:18:49] But in exchange for that, I have a kid that's graduating pre K4 right now in my. And I'm in my late 40s and I've got my act together and I've got a whole boatload of real estate that's going to pass to him someday. And he can sell that tax free on the step down, step up, I should say, which is going to have a whole nother host of problems making sure that he does it right. Making sure that he doesn't. Him and her, both my children don't sell all the properties as a package deal.
[00:19:17] That's not what I'm going to want them to do. I'm going to want them to move. If it's a single family, move the tenant out, rehab it, sell it to a first time home buyer, that's what needs to be done.
[00:19:28] Because that's the kind of houses I buy.
[00:19:31] Single family. If we're talking single family, which of course I've got the vacation houses and I've got the apartments, those are different.
[00:19:38] So a lot of lessons to learn there along the way for these children and to set them up for success, but more importantly, to set them up for, for success. You know, to, to have a happy, healthy life and not just say, oh my rich dad gave me a bunch of real estate.
[00:20:03] All this stuff is intentional and he's gonna have to work just as hard as I did.
[00:20:10] Anyway, for those of you who are just getting into this and you're like, oh my gosh, I have to go out there and buy a two million dollar house right now. I've got to go out there and buy a five million dollar house right now because it's on the beach, it's going to be easy to rent this, that and the other. But I only have $150,000 in cash that I killed myself to save up.
[00:20:30] Shame on you.
[00:20:32] I see it all the time. I see it all the time. You are selling yourself short. You're not giving yourself enough credit. You need to be proud of where you are.
[00:20:43] Be proud of where you are.
[00:20:48] Let's take that example. $150,000 in extra cash that you've saved up for a better future.
[00:20:56] And you're sitting there saying, man, I really wish I could afford the 5 million dollar house.
[00:21:02] Shame on you. You should be so proud that you came up with that money. However you came up with it.
[00:21:08] That is a huge deal. That is a huge deal.
[00:21:12] My parents could never dream of such a thing.
[00:21:16] I have to weekly, on a, on a daily basis read books about money to get myself out of that damn mindset about never having enough money, about scarcity, scarcity, scarcity.
[00:21:30] And if you've got $150,000 laying around, I made that number up. But God bless you, you worked your ass off and now let's go put it to use and be proud of it and buy the house you can afford.
[00:21:44] Just live where you are. Don't worry about 10 steps down the road. Don't worry about these stupid influencers that are talking about millions of dollars in real estate. This, that and the other one of which may be me.
[00:22:00] Don't worry about it. You got to start somewhere. And when I was first starting out, I drove Lyft on the side. I had a, I had a full time job. My wife was again, all this stuff. And we killed ourselves and living on 25 a day to come up with down payments.
[00:22:15] Because that is the hard part.
[00:22:18] Now again, there's other ways to do this. You could go buy a hotel, get into the hotel industry.
[00:22:24] There's no reason you can't figure out how to get into, into a syndication. There's no reason you can't go find somebody who's super wealthy and ask them how you can help. Because let me tell you something. Some dude that's in real estate and hustling and super wealthy would love to have somebody call him up and say, I want to work my ass off. What can I do for you?
[00:22:47] I will work my ass off. And I don't care if you got to go turn hotel units, scrape ceilings, I did all this crap, go do it.
[00:23:02] Hard work will always prevail.
[00:23:08] Hard work done in a stupid way is not going to be good for you.
[00:23:14] Be where you are in life and if you have enough money to buy the $500,000 beach house, be proud, be blessed.
[00:23:24] You don't need to worry about the 1.5 million dollar beach house. Don't worry about it. Because if you're sitting there like, oh man, if I buy this 5 million, if I buy this $500,000 beach house, I don't have another down payment and I'll never get another down payment. Scarcity, Scarcity. Do you know how much money is out there in this freaking.
[00:23:48] Because I do. And it's somewhere around $150 trillion.
[00:23:54] It's out there.
[00:23:55] It's out there and it is abundant. I'm looking out the window knowing that there is money out there. If that's what you want, stop being a wimp and go get it.
[00:24:10] Can't believe I gotta get fired up about this.
[00:24:18] Oh, I really went. My friend got a 1.5 million dollar beach house and all I can afford is 500,000. I don't even know why I'm bothering.
[00:24:27] What?
[00:24:30] You need to read some books? Who taught you to talk like that? Your parents?
[00:24:36] Then your parents don't know crap about money.
[00:24:39] And you need to stop talking to him about money.
[00:24:44] Be where you are.
[00:24:46] Be proud of where you are. Buy what you can afford and the good things will come.
[00:24:53] Buy what you can afford. Figure it out.
[00:24:57] Worry about the Next one later.
[00:25:03] You got to start somewhere.
[00:25:05] All right, all right, that's it for me. Today I am going to give you a couple of quotes. I think I have a couple of fresh quotes.
[00:25:13] No amount of brilliance or personal charm will carry a man to the top and keep him there unless he can come up with a come up smiling day after day.
[00:25:25] I love that. I don't know where I got that. I got that from a book I recently read. I don't know where I should have wrote it down. I'm sorry, no amount. I'm going to say it again. All right. And this is, this is. I'm preaching to myself right here because I have been a very grumpy man at certain stages of my life because I didn't have what I wanted.
[00:25:47] And I was a total jerk for many, many years in different capacities and different reasons. And this, that and the other.
[00:25:58] You know, all that changes though with mostly with children and with time with getting older. But I'm going to read it to you again. No amount of brilliance or personal charm will carry a man to the top and keep him there unless he can come up smiling day after day. Luke Carl Short Term Rental Management. I love you.
[00:26:20] Don't overthink it, Sam.
