[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 Karl.
[00:00:16] All right, Short Term Rental Management. I want to talk about competition.
[00:00:22] Competition. We're going to tie this into being an entrepreneur in general because what happens is some folks get a taste, they buy a house or two and then they get hooked and they think that this is going to be their future. And it very well can be. And I've said it a billion times, if you want to live off cash flow, you've got to have a billion dollars.
[00:00:42] If you've got enough money to buy $50 million worth of real estate, which could possibly give you the opportunity to live off the cash flow, then you've got probably a really big life. And. And that cash flow ain't gonna pay for a jet. All right, that's okay. It's still a wonderful thing. You need to buy real estate. You have to buy real estate. And I'm not talking right now. I'm not talking to you folks that are buying one every year, every two years, chipping away 10 houses a year, 10 houses by the, you know, every 10 years, that kind of thing. Just look, little retirement plan. You folks, you're great. No problem with you.
[00:01:17] I'm gonna leave you be. You're doing it right.
[00:01:20] And you folks that are shout out to Canon, wanna quit your job, you're doing it right too. But again, we need to be realistic.
[00:01:29] What is really going on here is that you may be an entrepreneur, may be.
[00:01:36] Here's how you know. If you are working a day job and you want to poke your eyeballs out, you may be one of the 2% that's ready to go work for yourself. It's 2%.
[00:01:52] And the 2% is not being put into the world to work for themselves. And it's not about. It's not about ego. It's about making good decisions and providing value to other people. The universe knows what's up. And then the universe knows if you are going to be capable of this or not. And only 2% are. 2.3%.
[00:02:18] Read it in a book, Couldn't tell you the book.
[00:02:23] So again, I've said it a thousand times. Buying a few houses is the gateway drug to understanding that maybe you do not want to work for the man for the rest of your life, but you still have to work. And you are going to work 20 times harder.
[00:02:40] And with that, with entrepreneurism and rentals in general, again, this doesn't need to be such a big picture. Just rental Real estate in general comes competition.
[00:02:55] Matter of fact, if you decide to be an entrepreneur and start your own business, you have just become somebody's competition.
[00:03:02] And in a lot of cases, it's whoever you were working for before.
[00:03:10] And if you get good at it and you get a taste of it and you could do it for a long time, you're going to start to realize how much that competition is eating away at you mentally, physically. Stress level.
[00:03:26] Competition is like Pac man and it's eating up your dots, bro.
[00:03:31] It's the other way around. You're Pac man and the competition is the ghost. And the ghost is just floating along and sometimes you cross paths with it and it eats you.
[00:03:44] Talking about you entrepreneurs. And I'm gonna break it down to my hosts, my property managers as well.
[00:03:49] But you, you know, I, I, you don't know how difficult it is in this world.
[00:03:58] And if you're ready for this world, it doesn't matter.
[00:04:04] It's not going to stop you. Nothing's going to stop you.
[00:04:06] If you're a 2 percenter, 2.3 percenter, doesn't matter.
[00:04:12] And how do you know if you're a 2.3 percenter? Because if you're sitting at a desk right now and you're listening to this podcast or something along the lines of trying to make yourself a better person, build, grow, and your job makes you want to poke your eyeballs out, it's time to go.
[00:04:28] Obviously there's a lot more to it than that. Do you have children?
[00:04:32] Are you five years from retirement?
[00:04:36] I should say five years from a pension.
[00:04:39] There's a lot to it, but the same thing goes for just buying a rental house, a short term rental. If we're going to break it down to the bare bones of what we're talking about here, not such a big picture, you're going to have competition. This is once again why that word saturation drives me nuts.
[00:05:01] Saturation means that there are other people doing this and it's probably a good thing if there's nobody else doing it. If it's not saturated, it's probably a stupid idea.
[00:05:13] So you folks that are getting on our live calls every week, which you can join
[email protected] we'd love to have you. You can come to stsplus.com because, and I'm saying that because I had a client in my inbox in my phone just yesterday that was saying she didn't even know that we sold houses. She didn't even know that we had a course. We don't have a course, we have a community. Okay? And it's very inexpensive.
[00:05:41] And she's like, I've watched a thousand of your YouTube videos and I didn't even know. I'm like, well, did you look at the top of the YouTube page? Because it says on there, I don't, I don't, I don't know. I'm not trying to be too salesy here, just trying to help.
[00:05:54] So on behalf of that client who said she didn't have any idea, I'm telling you that we do sell houses in vacation towns. It's what we do. And I will teach you what deadbolts you need, how to find a housekeeper, how to deal with the, with the tax advantages. I'm not a cpa, but we know all about that stuff and we'd be happy to turn you on to a CPA that can help you.
[00:06:15] And we have hours and hours and hours of content on that subject and every other subject you can think of. Sts+com. All right?
[00:06:26] Competition. What will happen is somebody's going to come in and I mean, if you want to break it down to the entrepreneur, the entrepreneur. You start a business, somebody comes work for you, they decide they like what you're doing and they rip you off. Go down the street, tell everybody you suck and they're trying to do it better for cheaper.
[00:06:42] Competition.
[00:06:48] My advice, best way to handle that, keep working your ass off and maintain integrity.
[00:06:54] Maintain integrity. Because if that person really is saying, telling people that you suck or you know, spreading rumors or not even being truthful or whatever, that's going to get around. People are going to see through that over time.
[00:07:10] And it's gonna hurt at first, but over time, if you work your ass off and you're, you maintain integrity, you'll be just fine. Same thing with the rental house. Let's say you got some, somebody stays in your rental house, they like what they see, they buy the one next door, they rip you off, they charge less money, and they're getting all the gas. Now.
[00:07:29] Competition, competition. And that house should fire you up. You go look at it, what is it doing better than what you're doing?
[00:07:38] Oh, they got a nicer coffee machine. Okay, let's get a nicer coffee machine. Now the good thing in the world of rentals, there's not a lot, there's really not a lot of moving pieces. That's why it drives me nuts when I hear about these people putting in a hundred thousand dollar outdoor kitchen that they didn't need.
[00:07:52] The real estate Market is always changing. Covid is long gone, prices are down and properties are sitting on the market.
[00:08:02] The short term shop sells houses in all of the best vacation markets. And we'd love to help you purchase your next vac home.
[00:08:11] Join us at theshortermshop.com theshortermshop.com let's find you a deal.
[00:08:21] Competition is a good thing.
[00:08:23] It's going to happen. If you don't have composite competition, you're doing something wrong or you're doing something that's never going to make any money.
[00:08:32] I have a perfect example for you.
[00:08:35] Starbucks.
[00:08:38] I should just say coffee shop but on my way to school to drop the children off, there are two Starbucks I used to go to. The one that was closest to my house and I know I should be going local, I know that. But the locals, the other direction. So give me, give me a, just bear with me.
[00:08:54] And this Starbucks closest to my house is horrible.
[00:09:00] And to be honest, it was my first experience with Starbucks because it was the closest coffee shop to my house on the way to where I was going. And I never really went to a Starbucks before. I went to the Starbucks and I just kind of assumed they all sucked because this one sucks. I hate to use that word that people, you, they, you walk in, they act like they don't want you to be there. They're really behind, they're overwhelmed, they can't keep up. You end up, you know, you do the online order and then you still have to wait 5 minutes, 10 minutes when you get there.
[00:09:29] It's a teeny tiny little shop.
[00:09:32] The drive thru is a mile long. It's just, it's got nothing going for it.
[00:09:37] And I just thought that's how it would always was. And then I realized there's another Starbucks down across the street from the kids school because let's face it, there's a Starbucks in every corner.
[00:09:50] That's why they don't advertise, they don't have to spend money on marketing because they are the marketing. There's a sign, everybody 10ft.
[00:10:01] So lo and behold, I started going to the new Starbucks. What new to me. And it's a bigger facility, it's a single, it's a standalone facility and it's not in a strip mall. I don't know if that makes a difference, but I'm painting a picture and this Starbucks smokes the other Starbucks smokes it. They are unrelated. I found this out because I've now spoken to these folks and told them my thoughts about how much better than they are, they are. Than the other one down the street. They don't know each other. They are different management, different owners.
[00:10:30] They are competing, they are competing with each other. But Starbucks number two, the one closer to school, has no competition. I walk in there, they know my name. My coffee's always ready to go. I just go over, get it. I leave. I've got a nice clean bathroom if I need it, I can get a spin drift, which I love the spin drift. I drink them all the time. They have them right, right there, cold if I need one.
[00:10:55] And everybody's got a smile on their face. They're happy to see you.
[00:10:58] And I also noticed that this, this Starbucks has management meetings right there at the front table on a regular basis. They're all crowded around, having meetings, trying to improve the company, trying to improve their business, improve everything.
[00:11:14] And it doesn't go unnoticed. The other one, Starbucks number one down the street, they couldn't care less. They don't even want me to be there.
[00:11:22] Competition.
[00:11:24] How do you, how do you handle it? You work harder, you wake up early, and you do better than the other guy. That's why I don't want to hear about this saturation crap.
[00:11:33] My short term rental hosts, my entrepreneurs, which in a lot of cases, you're one in the same competition is good.
[00:11:45] Had another one. I'm gonna go biblical on you here. I'm gonna go. I was at church last weekend and the preacher had a fantastic line, the preach that a friend of his.
[00:11:58] I don't remember the exact line, but it was something to do with the fact that a friend of his started preaching. And at first he was very upset about this, but then he realized that there were now two preachers in the room. And the more preachers there were in the room, the better chance that Jesus was there.
[00:12:17] And that stuck with me. I like that.
[00:12:21] And that 100% applies to entrepreneurial entrepreneurism and vacation rentals.
[00:12:32] If you have multiple rentals in one area, it's, and I'm talking to my Uber noobs right now that are nervous about buying in an area that's quote, unquote saturated. If you have multiple rentals in one area, that means that the money is there.
[00:12:49] If the money wasn't there, the rentals would not be there. So wake up earlier, be a better preacher, sell better coffee, have a smile on your face, know your client's name, and you will succeed.
[00:13:04] Embrace it. Rejoice. If there are more people getting into your space, into your neighborhood, into your business, that means that it is Working.
[00:13:18] And all you have to do is be better than the other guy. Speaking of, I am better than the other guy. If you want to learn how to do this, if you want to buy a house, you call the short term shop.
[00:13:27] You go to sts plus.com, you go to theshortermshop.com. you come through our teachings. We sell houses. That's all we do. We're just better at it than everybody else. And I will teach you every single thing I know about managing a house. And believe me, I'm the best there's ever been. I've been doing it longer than anybody.
[00:13:48] I've been teaching Management Monday for over 10 years now, which is a class that every influencer you've ever heard of came through and started their journey and then became my competition.
[00:14:04] And here I am. And every Monday, people show up, and it's a wonderful thing.
[00:14:09] And my.
[00:14:10] The, the. The other people that created or got inspired by me are doing it, too. And that's fine.
[00:14:20] That's fine.
[00:14:23] Competition is good.
[00:14:26] All right, so. So when you get the neighbors going and you're nervous, oh, my goodness. Saturation. I'm never gonna make it. Let's knock that off.
[00:14:35] We're gonna knock that right off.
[00:14:39] Okay. And I'm gonna leave you with a quote.
[00:14:43] Well, first of all, I've read four books this year already.
[00:14:47] I don't know when this podcast is coming out, but I just finished. Mike Malowitz has a new book, Money. I think it's called Money Habit.
[00:14:54] Pretty good. Pretty good. I feel like I've somewhat graduated from Mike Michalowicz a little bit, but he was absolutely instrumental in my early career. So thank you to Mr. McCallowicz. I'm reading a book right now that actually he recommended that I'm shocked that I did not read previously because it is very good title. Was a little, you know, a little too much, a little too kitschy, I guess. But I will teach you to be rich.
[00:15:21] So I'm reading right now. It's about 15 years old, I guess. 10:15.
[00:15:25] Rahmit Sethi did not expect to like it, to be honest. It's very long.
[00:15:32] Which not expecting to like it and being very long are not good things. But it's very good. I like it.
[00:15:37] Uh, and I'm gonna leave you with a quote.
[00:15:41] Just because a crackhead doesn't have any money does not mean they are not going to smoke crack that day.
[00:15:50] Don't be worse than the crackhead with no money. Go get what you want.
[00:15:58] It's ridiculous. I know, But I love you. Don't overthink it.
