AirBnb Your Multifamily

Intro
Hi, my name is Rod Khleif, and I’m the host of “The Lifetime Cash Flow Through Real Estate Investing” podcast. And every week, I interview Multifamily Rock Stars, and we talk about how they built incredible wealth for themselves and their families through multifamily properties. So hit the “Like” and “Subscribe” buttons to get notified every Monday when a new episode comes out. Let’s get to it.

Rod
Welcome to another edition of How to Build Lifetime Cash Flow Through Real Estate Investing. I’m Rod Khleif, and I’m thrilled you’re here, and I know you’re going to get a lot of value from the dynamic individual we’re interviewing today. His name is Jorge Contreras, and Jorge has just created some pretty impressive with the whole Airbnb environment. And, you know, I’ll tell you, you might be thinking, okay, what does that have to do with multifamily? Well, it could really be a saving grace in some situations if you’ve got an asset that’s positioned well enough. And we’ll have Jorge talk about what that might look like, where you can actually throw some furniture in and Airbnb the thing. So, anyway, welcome to the show, brother.

Jorge
Thanks, man. Truly appreciate it. It’s truly an honor to be here on this podcast with you.

Rod
Well, that’s kind of you to say that. So, you know, why don’t you tell a little bit of your story? Let’s start there. Give, you know, a little much better intro than I did, and talk about who you are and bring us current.

Jorge
Yeah, absolutely, man. So, I actually started my very first business when I was 20 years young. I actually became a professional dancer. I was teaching Latin dance all over the world, had this festival, this nightclub.

Rod
Wow.

Jorge
But one of the problems, Rod, is that I was running my business like a job. I was a self-employed person. If I wanted it done right, I have to do it myself. I was wearing all the hats. So I was essentially, like, still trading time for money. I always refer to it as my job. And I was working, like, 14, sometimes 16 hours a day. And I started to have these back issues where I herniated my disk in my L5-S1. Got to the point where I couldn’t dance and I couldn’t work out. Then I couldn’t run, then I couldn’t walk, and then I was just laid on the floor, and I had to have back surgery. And the doctor said it was a 50-50 chance I’d ever walk again.

Rod
Wow.

Jorge
And that really inspired me to look for another way of creating income in a way where I didn’t have to trade time for money. And that’s really how I came across the book, “Rich Dad Poor Dad”. Started reading the book, went to the seminars, and invested in my education. And, yeah, in 2012, I started to buy real estate, in 2019– I started the Airbnb business in 2017 with properties that I already own. That was a low-hanging fruit. But then in 2019, I discovered this strategy where you didn’t have to buy the real estate. And at the time, I just wanted to replace my business income. And so I learned that sublease, you know, the Arbitrage model was like the quickest way to basically start making passive income with no down payments, no closing costs. And of course, as we started to build that business, we accelerated our capital, which then allowed us to go and buy more real estate. And here we are now.

Rod
Okay. No, I love it. That was really short and sweet. I expected you to go a little longer than that because I read your bio and there was a lot of other stuff in there that was interesting, but, you know, with your dad and stuff like that, and you really, you know, did some interesting things there that– but they’re probably not relative to what we’re talking about here. So, talk about how–you know, dig a little deeper on the business model. So let’s say somebody– well, let’s talk about somebody just doesn’t have hardly any money, but, you know, they want to make money. They want to get out of the rat race. They–you know, talk about this Arbitrage model where you go and I guess you lease a place and just give us some little more detail.

Jorge
Absolutely. So the subleasing model is essentially Rod, where we rent a property, get permission and write it from the owner, and then we launch it as a short-term rental. And just like anything where you’re going to need the first-month deposit, some furniture, and yes, you know, you’re not getting appreciation, depreciation, no cost, none of that because you don’t own the real estate. But for people that just want to get their feet wet, they want to get started and just start somewhere, this is a great way to really just invest for cash flow. And then once they become financially free and replace your nine to five, then they can go into buying and, you know, getting all those other benefits that they currently don’t. So, you know, first-month deposit, rent, and they can basically get their feet wet and get started.

Rod
Yeah. Of course, yeah, and you know, they don’t have to buy all their furniture brand new, you know. So let’s take it through the steps here a little bit. Let’s go a little deeper. So, you know, you contact somebody that’s got a place for rent. Imagine, you know, there’s got to be some sales involved to convince somebody that–you know, to have a turnstile-type tenant situation in their home. You know, and I’m sure you get quite a bit of pushback. What do you do to mitigate that pushback with a homeowner that, you know, you’re going to try to convince them to do Airbnb? Talk about some of the strategies to mitigate that.

Jorge
Yeah. Great question. One of the things that I learned is they want to work with whoever they feel is like the most credible person, right? So when I show up and I got 800 credit score, strong financials, references, and I present myself in a very, you know, professional manner and really like, the three biggest objections is, are they going to get, like, if we didn’t make money right, would we still be able to pay the rent? But we have access to some software, right. They’re Mashvisor and AirDNA, and they’re basically like comps. So we can look at the existing performance of short-term rentals in the area, similar in bedrooms, bathrooms, square footage, amenities, and location. And if those properties are making double or more than what I’m going to rent the property for, then I know I don’t have to worry about, you know, not making money.

Rod
I understand you don’t have to worry about it, but how do you show the seller?

Jorge
Absolutely. So we will tell them that we’re going to set up the property in auto pay, and obviously, we got a contract, so that’s like the biggest thing. And sometimes they might ask for a second deposit on the higher-end properties.

Rod
Okay.

Jorge
So we’re very, you know, flexible to make sure that they feel like, peace of mind because after a few months, if they had any concerns, they’re kind of like, all right, it’s been working. And so far, we’ve renewed like 100% of our leases since we started the sub-leasing side, you know, three-plus years ago.

Rod
Okay. All right, so you rent the place. Obviously, you got to put furniture in, bedroom furniture, you know, the beds, the nightstands, the kitchen furniture, the table, the couch, TVs. What other things do you do to make–and of course, guys, this applies to a unit as well. So the same answers here would apply to one of your units in a, you know, small multi or even a large multi. So, what are you doing to set yourself apart? Aside from furniture. Yeah.

Jorge
So one of the things that we do is we want to create a staycation experience, and this actually helped us, you know, during the pandemic. So all of our properties have like a pool and or sometimes both a Jacuzzi and also like a game room. So like a pool table, foosball table, like large Jengas. We want to be able to create an experience in the home without needing to leave the home. So when people stop traveling by plane and people were sick and tired of being home, and also sorts of created demand for people that wanted to just have a local experience in their city or in a nearby city. So people that live in small apartments or small condos were like, man, I want a social distance, getaway. And they would book these single-family homes with pools just to get away for the weekend or a couple of days. So that’s always been like a really, you know, great niche for us.

Rod
Okay, well, you know, certainly plenty of apartment complexes have pools, but let’s talk about, you know, maybe give some– okay, so you do– I’m sorry. Jumping around a little bit here. So you make the asset or the property a little bit unique. You do the giant Jenga. You do, you know, foosball table if there’s room, pool table if there’s room, you know, just to really make it unique. How might someone that has a four-plex, take one or two of those units, they don’t have a pool. You know, what might they do to increase their income on a couple of those units with the Airbnb model?

Jorge
Yeah. One of the things that we look at is how many people can we place in the unit while still making it, you know, comfortable? And so we always look at, like, okay, in a hotel, say it’s like a 2/2. Right. And maybe if there’s a group of six people wanting to come to the area, they’re coming to a conference, maybe a multifamily event with, you know, for Rod Khleif’s boot camp.

Rod
Right.

Jorge
Six people, you know, might pay, you know, two, $300 a night. They’re probably going to need two rooms. Now they’re looking at four to 600 a night. But if we have this 2/2 unit, maybe we charge 250, host up to six people. And at 20 nights times 250 like, that’s already five grand. It might be double whatever the fair market rent is. So that’s how–

Rod
So, how do you get six people in a 2/2?

Jorge
Great question. So we’ll take the larger bedroom and place two queen beds side by side and then a queen in the other room or a king in the other room. And sometimes, you know, a lot of people when they’re traveling, right, probably like a bigger percentage of people when they travel, they’re like, how can I save money? Like, you know, when you and I travel, Rod, I see your luxury travels with your, you know, amazing wife, and you guys are high-end and beautiful experiences. But there’s a much bigger percentage of people that maybe they’re not there yet, so they just want to save some money. And sometimes they’re like, hey, can we just put a mattress? You know, do you have a couch in the living area? And so a lot of times, you know, that will work. So, even though we’re hosting up to, you know, six people, it doesn’t mean there’s always six people. It might be three, four, five, or six, but it just gives you more options as to how many people [inaudible]

Rod
Do you typically do a pullout couch as well? I know I’m getting a little granular here, but–

Jorge
No worries. Yeah. If we can’t fit, like the desired or goal in just the bedrooms, then we do host up to two people in the living room, whether it’s a pull-out or a couch that converts or something like that.

Rod
Okay. Do you charge more for the more people that are in there?

Jorge
Currently, we don’t.

Rod
Okay.

Jorge
We just host a flat rate. And we feel like–like one of the things, Rod, if you’re looking to stay at an Airbnb and say there’s a group of eight, when you go, it gives you the filter. You put the location, the dates, and how many people? Anyone who doesn’t host eight or more, their properties won’t even come up.

Rod
Got it.

Jorge
If you have competitors hosting only up to five in a similar property, then you basically get more eyes on your listings.

Rod
I want to go a little more granular, guys. So if you have no interest in this then obviously, you can sign off. But I do think there’s an incredible opportunity. I’ve actually been thinking about buying some lakefront property myself and Airbnb. I’ve got some very wealthy friends that do it very successfully. They actually even rent the boats out. They’re very very successful. They have a whole system where they play, they make them watch videos to be able to rent the boat, you know, about safety and all that stuff. It’s a very impressive model that those guys do. I’m not going to drop names, but, you know, let me ask you this. Now, you do pretty much the vacation demographic. You’re in the Southern California, so you’re getting the people that want to enjoy the fun in the sun and be close to amenities and enjoy the property. What do you know about other types of short-term rentals that might go for, you know, near a hospital or a business or, you know? Speak to that a little bit if that’s in your wheelhouse?

Jorge
Yeah, it absolutely is. And a lot of people ask me like, Jorge, how are you going to shift during a recession? Like, you know, people are going to travel less. And there are really like four additional types of bookings that I feel are not impacted by what’s going on in the economy. They’re just always looking for these types of units. And one of them is like a relocation company. So like right now, in one of our single-family homes we have this family who’s been there for four months. It’s a 3/2, 1100 sq ft. This one has a game room, but no pool, no jacuzzi. This is one of the ones we own. Our mortgage is like $2,700 and they pay $37,000 for four months, which is an average of 9500 a month. And so we’re cash flowing like 6500 per month after all the expenses. And this is the relocation company. Right. When people have water damage or any type of damage of the home, these companies will relocate them for months at a time and that’s going to happen regardless of the economy.

Rod
Doesn’t matter where you are either, really for that–

Jorge
Yeah, doesn’t matter where you are. This is anywhere in the US.

Rod
Interesting.

Jorge
And these companies all book through Airbnb. Why? Because that’s where all the inventory is. Right?

Rod
What other companies– I’m sorry, sorry to interrupt, but what other companies besides Airbnb do this? And forgive me, this VM, or whatever, but I’m just a novice at this.

Jorge
Yeah. It’s called the Vacation Rental By Owner. So it’s VRBO.

Rod
Okay.

Jorge
And one of the cool things is you can actually host on both platforms and see the calendars inside of Airbnb.

Rod
Oh.

Jorge
That’s pretty cool.

Rod
Smart on their part. Okay.

Jorge
The other one is a– we have another family that was recently at one of our smaller units at 2/1. They booked for three months and it was a family from Guatemala who came to the US through political asylum. So the government will book our Airbnbs as well.

Rod
Interesting.

Jorge
And none of these people ask for discounts, right. Government bookings, like these insurance relocation companies, we also have nurses who are traveling for work at three to six months at a time. And a lot of times they ask for a small discount, but it’s still like, you know, very profitable. And then the fourth one is just corporate companies who are, you know, providing training in the area. Like, say Verizon is hosting an event in the area and they got, you know, 5000 employees or training in sales or maybe they’re going there to provide a service. So relocation, insurance companies, the government bookings, the nurses, and then the corporate bookings, like those are not affected by what’s going on in the economy. They’re just always going to– so I always tell people, say, how do you get these bookings? I’m like, look, you can have the most marketable property in the right location and by having it on Airbnb, these companies are going to find it on the platform.

Rod
Well, you know, I got to tell you, I’ve seen some posts on Social talking about how some of this has dried up. Recently, like I saw somebody posted three cabins, I don’t know where they were. And they said that one has been occupied, but the other two have been vacant. You know, I’m sure that there are strategies to, you know, market more heavily or, you know, ensure that that doesn’t happen. Can you speak to that a little bit? You know, what do you do to make sure that, you know, you’re renting enough to cover the debt if there is a–?

Jorge
Yeah, absolutely. So just like hotels, right? Like if I have a vacancy, say, you know, today, tomorrow, and Thursday. It’s unlikely someone’s going to book it at full price so we start bringing down the price to create demand. And most of our homes, single-family homes, host up to ten people. So when I bring down the price, maybe 30, 40, or 50%, I may attract a smaller group of two, three, four, five, but it helps me, you know, cover the debt, cover the expenses, right?

Rod
Sure.

Jorge
And the other thing that we do is we start building relationships with these you know, companies that do the long-term bookings and then we can even, you know, book directly with them. There’s also a platform called Furnished Finder that is specifically used for traveling nurses. And then there’s another one called like CorporateHousing.com, which is again specific for companies who a lot of times book for 30 to 90 days and they’re looking for furnished units. So I think that’s something that also people in the multifamily space could tap into.

Rod
Yeah. So what do you do– well, a couple of questions. What do you do on the whole–you know, because obviously, ratings are important. And one of the things about Airbnb, just like Uber is itself rates. You know people rate their experiences and you can really get killed or beefed up by the quality of those ratings. What do you do to enhance, you know, someone’s experience and get them to leave a positive review? What sorts of things?

Jorge
Absolutely. So one of the things I’ve learned is there’s always going to be hiccups, things go wrong like maybe these entry dies, they can’t get in. And I’ve learned that as long as we can provide a solution, like in the shortest amount of time possible, then you’re actually okay and, you know, we fix it, boom, they still give you, you know, a five-star review. So we have like virtual assistants that are basically available almost 24 hours a day by having a VA in Mexico, another one in the Philippines. So they’re in like 12-hour shifts. And one of our KPIs is for them to respond within three minutes to all inquiries. So if something happens, they contact the manager. The manager, you know, will send somebody, whether it’s a plumber and electrician or whatever it is, a handyman, the cleaner, to provide a solution. And that’s a big one. Just being able to, you know, respond to all those inquiries, having great communication, and being able to provide solutions.

Rod
What sort of–so I’m assuming you put some sort of a keyless entry system that you can change the code on remotely?

Jorge
Exactly.

Rod
Yeah, there’s like a Nest thing, or what is it?

Jorge
It’s the Schlage.

Rod
Schlage. I’ve heard that.

Jorge
Schlage brand.

Rod
Okay.

Jorge
And you could even set it up where it automatically uses the guest’s last four digits of their phone number and it turns into the code and it’ll literally give them access like five minutes before check-in.

Rod
How do you spell that? Is that the S-C-H-L-A-G-E?

Jorge
Exactly.

Rod
Okay, so that’s the regular lock company. The big lock company. Got it. Okay.

Jorge
That’s like the best one.

Rod
Okay. And then I’m assuming, do you put the Nest cameras, like, on the door? I’m like, you can see these stuff on TikTok where somebody that has got an Airbnb, see some crazy shit. Somebody– actually there was a murder, I think, where they dragged a body out some crazy shit because they had– a true story. True story. I saw it. They had a Nest camera. I mean, I’m assuming you have that sort of thing?

Jorge
Yeah, we always put a camera, one in the front and one in the back.

Rod
Got it.

Jorge
And that really helps. I mean, I remember one time there was a guy– these two guys coming in with like kegs of beer and we’re like, what the heck is going on? And then our manager was able to contact them, like, nip it in the butt, make sure they didn’t throw a party. But it really does help.

Rod
Sure.

Jorge
And it’s always good to have those cameras because sometimes people are trying to get a discount and they might, you know, try to pull something strategically. And with those cameras, we’ll have proof of like how many people were actually there because we don’t allow guests at the properties, only the people on the reservation.

Rod
Right. So back to my previous question. What sorts of little tips and tricks do you do to really enhance the experience? And I’ve seen people put water in the fridge and, you know, what sorts of–give me some examples of things that might set you apart.

Jorge
Yes, a lot of times we have our virtual assistants ask a guest, like, hey, what brings you into town, you know, Rod? And you might say, you know what? It’s me and my wife’s wedding anniversary, or whatever it is. And we’ll try to do something based on that.

Rod
Oh, that’s smart.

Jorge
Maybe a bottle of wine. You know, something that is relevant to their experience. If we know they have a bunch of kids, we might put, like, Skittles and, you know, just candy and chips. Like, anything that can provide, like, an element of surprise. And it always has to be unexpected or even just, like, a personalized note, like, welcoming the group into–

Rod
That’s brilliant. I mean, you know, personalizing it to their situation is freaking brilliant. People are like, Oh, my God, that’s so thoughtful. Yeah, that’s a good one. Okay. And so, you know, let’s say someone’s got a plex or a small multi, and they’ve got a, you know, 2/1 or a 2/2 in there. Or a couple of them. Maybe they’re near a big medical center, near a big corporation, or, you know, near a cool like, I’m buying an asset in Hot Springs, Arkansas, and there’s a lot of cool stuff there. They’ve got museums, you know, like a wax museum and a duck tours and all this tourist crap. So, you know, if I was to take a couple of those units and they’ve got a big thoroughbred race tracking, casino, and stuff right there. So this actually could work for that actual asset that I’m sitting here thinking about it. You know, what can someone expect to pay to furnish, say, a 2/2? And, you know, I mean, I know you put– I’m sure you mount a TV on the wall and so–

Jorge
Right.

Rod
All in, do you have kind of an estimate of what that would run?

Jorge
Yeah. Like on a 2/2, if you’re putting, you know, furniture, appliances, the course applies pictures, it could easily run, like, ten to 15K.

Rod
Okay, all right. And that’s probably mostly new stuff then. Yes?

Jorge
Yeah. That’s like, all new stuff. Absolutely.

Rod
That’s all new stuff, yeah. So, I mean, you could go out there and, you know, go to the Goodwill or whatever, I suppose.

Jorge
Yeah.

Rod
I guess that’s probably not a good idea, but I don’t know. You know, again, I’m a novice at this. So, okay, ten to 15 grand, and then you– you know– oh, here’s what I want to ask. Now, you self-manage, obviously, because you talked about you know, your KPIs and your VA’s. You’re doing it all in-house, but, you know, I know there are management companies that do this as well. And my brother has got some cabins up in Blue Ridge, Georgia, that he Airbnbs, and he was using a management company, and they were actually ripping him off, and so he took it in-house. But speak to management. Speak to the management piece of it.

Jorge
You know, I typically don’t recommend for people to outsource the management just because it’s such a big portion like, it’s like 25 to 35% of the gross revenue, and a lot of times that’s your profit margin. Right?

Rod
Okay.

Jorge
So I always tell people to just build an in-house team, like, hire somebody in-house that will basically manage the cleaner, maintenance, and communication. So you have you as the owner. Then you have the manager right under you. And then beneath that, you have the three technicians, the cleaner, maintenance, communication, and just have, like, a Slack group or a Slack channel for each property. And just everybody can communicate efficiently.

Rod
Yeah. So the communication could be a VA. I mean, I’ve got VAs in Latin America that are, you know, $4 or $5 an hour. I’ve got one in the Philippines that is $3 an hour. So, you know, that’s not super expensive. You know, but when you’re getting started, I guess you’re going to wear some of these hats. You may go in there and clean. You may be the maintenance person, whatever, but that’s how you get started. Okay, now, you know, so what’s, you know, next for you? Are you going to continue to do this Arbitrage, or are you trying to buy– I mean, I know you and I have talked about you syndicating and things like that as well. So speak to what’s next, brother.

Jorge
Yeah, the two things are we’re in escrow right now on like, a million-dollar property in Joshua Tree, California. Great vacation, destination. So we’re constantly implementing both models, the purchasing model and the Arbitrage model. And just like anything, Rod, eventually you run out of your own money.

Rod
Right.

Jorge
So the next game plan for us is to start, you know, building a fund and start syndicating, like, little outdated hotels that we can renovate, do some value at, and the same thing with like multifamily. So we’re looking at getting into, like, ten to 20 unit, hotel multifamily. And the idea would be to put most or all of them as short-term rentals, depending on the demand, and put the rest as long-term tenants. In this way, we could raise the capital just like you do and the way you teach people. And this way, you know, we could go bigger, better, faster, stronger.

Rod
You know, that’s really interesting. I was listening to a Tim Ferriss interview with a guy that bought a hotel in Austin, Texas, and really turned it into this destination-themed, cool, trendy, eclectic kind of place. And you just triggered that–I mean, you know, if you get a small motel, you know, piece of crap on the side of the road, flat roof, you know, but you really give it some character, maybe give it a theme, that might be really cool.

Jorge
Yeah. Just about two years ago, we were in San Antonio, and my partner and I stayed at this eight-unit, you know, small multifamily, and they were all, you know, like, 20-foot ceiling, high end, new construction, and the guy was charging, like, $400 a night.

Rod
Wow.

Jorge
That’s kind of what inspired him. Like, man, he must have like syndicated that deal because I mean, it was beautiful, like, really nice property like [inaudible]

Rod
And the whole thing was a short-term rental?

Jorge
Everything.

Rod
Okay.

Jorge
And I know because, you know, when you look down the Airbnb profile, you can see all their units. And it literally had unit one, unit two, all the way to eight. They all had two parking spaces. I mean, honestly, the guy must have been making a killing just what the nightly rates were at 400 times– you know, even if you only did 20 nights, that’s like eight grand times eight units. That’s like 64 grand a month. I mean, it’s crazy. So that has inspired us to start doing these small multifamily syndications and with the short-term rental model.

Rod
Okay, what do you think about the idea of having it? Maybe a theme. That you could hurt yourself with the theme too? I guess. You know, if somebody wasn’t interested in it [inaudible]

Jorge
I think the theme would work. Like, there’s a lot of short-term rentals, for example, in Disneyland, like near Disneyland, and they do a lot of themes like Mickey Mouse, Minnie Mouse for the kids. And I feel like it’ll work in very specific destinations–

Rod
That makes sense.

Jorge
That is relevant to why people are going there.

Rod
Yeah, no, that makes sense. So what are your thoughts on this recession? I mean, Bank of America says we are technically in a recession. You know, I think it’s going to be, frankly worse than people think it is. I mean, good for me because there’s an incredible opportunity coming. But what are your thoughts as it relates to your business?

Jorge
Yeah, that’s a good question. I mean, what is it Warren Buffett says? “Be greedy when people are fearful. When others are fearful, be greedy”.

Rod
Yeah. I just use that on a YouTube video Shorts because people are starting to become fearful. And, you know, I mean, we’ve got– I’m sorry to interrupt, but I’ll just interject something here. So, you know, I’ve only bought one big asset in the last year, 296 units in San Antonio, actually. And, you know, I’ve been in best and final on so many deals and I’m like scratching my head when I see what they sell for and I’m like– you know, and they’re putting short-term bridge debt on. I just know that you know what’s going to hit the fan with a lot of those assets and properties and why did I bring that up? Oh, because right now, I mean, I’m in two for sure deals. I mean, two– just happened. I mean, fantastic deals that small one I was talking about in Hot Springs and a large one in Nashville. And so, it’s just kind of crazy. Now, it’s already starting to happen, I guess, for me from an opportunistic standpoint.

Jorge
Absolutely.

Rod
But let’s get back to the Airbnb. What are your thoughts there?

Jorge
Yes, I mean, you know, I was doing mortgage loans for Bank of America in 2008 during, you know, the last recession. So I got to experience it. I was only like, what, 19, 20, but I clearly remember what happened. And just from a lot of podcasts and, you know, all the big names that have a big following on YouTube and podcasts, they always say that the biggest thing is like supply and demand. Right. And one of the things that created all that supply was all these foreclosures. But at least to my knowledge, right, I don’t see people being in as many foreclosures or anything close to what we had in 2008.

Rod
No, it won’t be like that at all. No.

Jorge
Adjustable-rate mortgages too, Rod. I’m really close with this mortgage lender that’s really big in California. And he’s like, yeah, we still offer that 5/1 ARM adjustable-rate mortgage, but like 98% of people have 30-year fixed.

Rod
Right.

Jorge
And almost everyone right, if you bought before 2020, like you have equity, whether it’s tens of thousands, hundreds of thousands, or even millions in these super high appreciating areas. So, I feel like we’re already starting to flatline in a lot of areas, especially around here in California.

Rod
Oh, everywhere. Everywhere is flatlined because the interest rates have doubled. But I’m not really talking so much about single-family. Okay?

Jorge
Okay.

Rod
You know, my audience is multifamily.

Jorge
Right.

Rod
I actually think there’s going to be some pain in our industry because bridge debt has been so available and abused, in my opinion. You know, anywhere from 18 months to three years and, you know, adjustable-rate, didn’t get caps. I mean, I think there’s going to be some blood for sure. Well, let me give you a ray of light, okay? And you can use this because I was just reading this and a lot of economists– well, not a lot. I read some economists are saying that this will be different. And that people will stop buying stuff, but they still want the vacations, they still want to travel, they still want the services. So places like Vegas and honestly, frankly, the Airbnb business probably should do just fine through this particular recession. So that makes you feel any better. I want to see what your take was, but I have been reading that. Just FYI.

Jorge
Yeah, that’s really good. It’s good to hear that from you.

Rod
No, I mean, I read as much as I can. I got Forbes and Wall Street Journal and whatnot and I remember reading that a couple of times that they think this one, that the service–that people are actually leaving retail jobs and going over to the service industry because they need help and the retail is going to, you know, will likely flounder. But anyway, well, listen brother, it’s been a treat to see you and, you know, I know we’ve had a lot of back and forth on things and I think we were talking about having you do an MC at one of my events.

Jorge
Yeah.

Rod
I think at one point we talked about that. Anyway, it’s great to meet you face to face.

Jorge
When’s the next boot camp?

Rod
The end of July. 29th, 30th, and 31st. There are still some tickets left guys, and if you DM me on any social channel, you can still come for $197. It’s kind of a duh because it’s not a sales pitch for three days of training and I know you’ve probably heard me say it in the intro for this episode, but by God, it’s coming. In this commercial business. I don’t think it’s going to be as much opportunity in the single-family. There’ll be deals for sure because it’s ground to a halt because the interest rates have literally doubled. But in commercial multifamily, I think there’s going to be a lot of deals and some real opportunity. And some economists say, “it’s the greatest transfer of wealth in history could be coming right now”. So, you know, I’m getting excited. I’m not, you know, not going to allow any fear. And I got to tell you, you know my story, Jorge. I lost 50 million in 2008 and ’09. And so I’m carrying around that pain a little bit, psychologically. So I bounce back and forth a little bit like, oh, shit. But, you know, luckily, I’m in really good shape and have a lot of cash right now because I’ve been getting ready for this. Well, listen, I appreciate you coming on, my friend. It’s a pleasure to meet you, and I’m sure we’ll see each other soon.

Jorge
Thank you, Rod. Appreciate you having me. Have a good one.

Rod
All right.

Outro
Rod, I know a lot of our listeners are wanting to take their multifamily investing business to the next level. Now, I know you’ve been hard at work helping our Warrior students do just that, using our “ACT” methodology, which is Awareness, Close, and Transform. Can you explain to the listeners how they can get our help?

Rod
You bet. Guys, we’ve been going non-stop for three years, building an amazing community of like-minded people. And our coaching students which we call our Warriors have had extraordinary results. They’ve purchased thousands and thousands of units, and last year we did over 1000 units with our students. And we’re looking to grow this group and take it to the next level. We’re looking for people who want to follow a proven framework that’s really step by step and then leverage our systems and network to raise equity, to find and close deals, and to build partnerships nationwide. Now, our Warrior community is finding success in any market cycle. So if you’re interested in finding out more about how you can become more of our incredible network and take advantage of the incredible opportunities that are coming very soon, apply to work with us at “MentorWithRod.com” or text “CRUSH” to “72345”, and we’ll set up a call so you can check us out and we can check you out. That’s “MentorWithRod.com” or text “CRUSH” to “72345”.