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The Short Term Rental Authority Podcast
STRA Episode2 The number one mistake real estate inv...
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Jul 31 2022 29m
Chapter 1 59 sec
Chapter 2 59 sec
rental businessChapter 3 59 sec
if you, if you have the, the property. Yeah. And you're trying to. Operate a business inside of it. I think a lot of people don't even realize that's what's going onChapter 4 59 sec
short term rental side of it. I'm gonna say business is much more like running a reChapter 5 59 sec
rental is because, well, you're actually running a business in it hereChapter 6 59 sec
probably never think to himself, Hey, I could get more rent if I own the Chinese restaurant. Right, right. He would realize that, oh, I'm starting a whole nother business. Yes. I'm gonna run it in my strip mall. But what I'm also forgoing is the rent that I would normally be collecting from the Chinese restaurantChapter 7 59 sec
what I'm doing is I'm putting a hospitality business inside of this houseChapter 8 59 sec
of YouTube videos and things you can read andChapter 9 59 sec
the right word to say it, but it's trying to, you're trying to shoe horn your customer into this property. Right? So taking that into consideration is, is the, the first thing that you need to do is. okay, well, who's gonna be staying in my short term rental businessChapter 10 59 sec
I would tooChapter 11 59 sec
just one, you want a whole chain of these things. Mm-hmm and I know we do, and that's another mistake. Ends up happening with real estate investors is because they're going for deals and value. Ooh, this is another really good point. Mm-hmm yes, they are real estate investors tend to, to think about the, what the cash flow that this particular property is going to bring in mm-hmm rightChapter 12 59 sec
here, a duplex over here in a totally separate part of town. And, you know, a four bedroom over here. Right. And then I've got this place in the mountains. It's from beach house, five bedroom, beach house over hereChapter 13 59 sec
customer. Right? Right. So now if I really want to get into like taking direct bookings and having an email list and I, I, all of a sudden have this fractured customer base. Right. And if I want to reach those different types of people, now I have to, if I had a hundred dollars to market with, I gotta, well, put 10 on the beach house and 10 on the, instead of spending the whole hundred mm-hmm and saying, Hey, here, come stay at any of these placesChapter 14 59 sec
and had a really great experience, mm-hmm for example, they, and they, and they want to come back then. And, but the, the time that they wanna come back, your, your beach house is, is rented or even worseChapter 15 59 sec
be here in this place, in this house, right in this house. They're really saying I enjoyed that experience. I enjoyed that experience. Yep. Mm-hmm that's exactly right. And you know, this happened to us not too long ago, the, we we're in Charlotte, North Carolina, and as hot as Hades here in the townChapter 16 59 sec
get, you need to place to either, either correct the problem by having portable space heaters or something, portable airChapter 17 59 sec
perspective on itChapter 18 59 sec
you're now competing with people that are lowering their price. So now, now you're a commodity and now you're just competing on price mm-hmm yes, that's huge. Yep. Well. I like the, the way that the way that we've done it is at well, the, the way that we coach a lot of people to, to do is to think about what you're, who you're serving, what customers gonna be there and then put what, what they want inside the unitChapter 19 59 sec
those pet covers over the top. Right, right. And pray that people, and we're gonna have a place that doesn't haveChapter 20 59 sec
they do, but they do don't they don't talk to baby contraptionsChapter 21 59 sec
are speaking to that particular customer. And why are we speaking to that particular, particular customer? Because that's who we picked because that's who we picked and that's who we know who we areChapter 22 59 sec
far marketplace furniture and cell phone pictures. And will everybody knows to put a cure egg in there now. Right. Right. And everything's cookie cutter and kind of looks the sameChapter 23 59 sec
Right. Right. The, the, the whole idea is I'm building a, well, at least for us in our avatar, we're building a business that serve. provides temporary housing, short term rentals for families, with children and petsChapter 24 59 sec
right. Even if you didn't start out as a real estate investor, a lot of times what you learned about this business came from someone who actually had that perspective as well. Mm. I hadn't, I hadn't considered that. Mm-hmm yeah. That's interesting. Yeah. Huh. I see what you're sayingChapter 25 59 sec
actually operating? Yes. Yes. What are you actually doing here?Chapter 26 59 sec
Marriotts there's IHG Hilton Hilton. Some, some of 'em like that, and then they have their subbrands like IHG is your holiday Inn and like your, oh, so IHG traveling holiday and your days inChapter 27 59 sec
what a franchise is, right. That's what a F the value in holiday Inn is the systems. Yeah. It's the experience. It's the, and the name, it's the name? Yeah, the brand, the brand and the marketing Uhhuh and all of those thingsChapter 28 59 sec
stuff and, and that's really the value. So when you, when you're thinking about, Hey, I'm going to turn this into aChapter 29 59 sec
even though it's my handwriting, I can't read your handwriting and you can't read your own handwriting. If that's bad. I think about third grade, I was like, okay, I can make letters. good enough to pass. And I just never practiced after that. Yeah. It's really bad. It's well, we hope that you found some value in the discussChapter 30 1 sec
