The Real Estate Law Podcast

The Blueprint to Building Your Short-Term Rental Portfolio with Cashflow Diary Founder J. Massey

January 24, 2023 Jason Muth + Rory Gill Season 1 Episode 86
The Real Estate Law Podcast
The Blueprint to Building Your Short-Term Rental Portfolio with Cashflow Diary Founder J. Massey
Show Notes Transcript

We're thrilled to welcome J. Massey - real estate entrepreneur, father, coach, instructor, author, podcast host, short-term rental expert, and founder of Cashflow Diary, an STR hospitality training company that shows investors how to build their own short-term rental businesses.

J. has built a real estate portfolio with short term rentals at the center, and now operates a 37-unit short-term rental business, which has created more profit faster than any other strategy he has seen before.

In fact - J. and his team have identified 65 different use cases for short-term rentals.

65? Really?

If you thought that short-term rentals were just beach condos and cabins in the woods, you will want to hear what J. has to say!

Cashflow Diary exists to create short-term rental entrepreneurs. With Cashflow Diary, J. has trained thousands of students, helping them invest profits into whatever is most important to them - family, business, community, and the future.

In this episode, we discussed:
- Balancing the tax challenges of active income with buy-and-hold strategies
- How J. discovered short-term rentals as the perfect entry point for many
- Why your labor should build assets rather than simply building income
- What's the difference between being in your career and being retired?
- Why short-term rentals solve single points of failure for investors
- Benefits to short-term rental arbitrage, both from the standpoints of operators and property owners
- The 65 different use cases for short-term rentals
- J.'s thoughts on oversupply in the short-term rental market
- What opportunities are a little less apparent in the short-term rental space?
- Themed short-term rentals and why they work well
- Scaling your business and the need for learning leadership

Where you can find J. Massey:
Website - https://cashflowdiary.com/
Facebook - https://www.facebook.com/CashflowDiary/
Instagram - https://www.instagram.com/cashflowdiary/
LinkedIn - https://www.linkedin.com/in/cashflowdiary/
YouTube - https://www.youtube.com/user/CashFlowDiary
The Ultimate Short Term Rental Guide - https://cashflowdiary.com/the-ultimate-short-term-rental-guide/
How To Start An Airbnb Business: https://cashflowdiary.com/how-to-start-an-airbnb-business

Text "Blueprint" to 949-881-6939 for J.'s free eight-hour course to learn how to get your first short-term rental

Join Jason Muth and Attorney / Broker Rory Gill of NextHome Titletown and UrbanVillage Legal in Boston, Massachusetts for another episode of The Real Estate Law Podcast!

#realestatepodcast #nexthome #humansoverhouses #realestate #realestatelaw #realestateinvesting #realestateinvestor #realestateagent #airbnb #str #shorttermrentals #vacationrentals #airbnbtips #airbnbinvestor #mediumtermrental #airbnbarbitrage #cashflow

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J. Massey:

I figured out that this particular strategy with systems is very scalable, very accessible for way more people than the traditional real estate strategies that are out there. And it's served as an entry point, now, for a lot of individuals, we've had unemployed individuals, individuals going through divorce, married couples, all of them. And we get the privilege of working and seeing insight into 17 different countries now with this particular strategy.

Announcer:

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Jason Muth:

Welcome to The Real Estate Law Podcast. Thanks again for tuning in. We really appreciate your listening to us yet again, for another awesome episode here. We've really brought in one of the heavy hitters, Rory. Rory Gill attorney broker NextHome Titletown Real Estate and UrbanVillage Legal, you're not the heavy hitter I was talking about. But you know, you're a hitter. That's cool.

Rory Gill:

I'm not the heavy hitter. But I'm happy that we're having a heavy hitter taking us back to something that we know pretty well. And we've discussed a lot. And that is Jason's favorite topic in the whole world. Short term rentals.

Jason Muth:

Short term rentals. We talk about it a lot on this podcast. It's what everyone's talking about. When you go to any real estate meetup in the world. You'll have more people at the meetups about short term rentals than any other subject. And we're going right to one of our favorite experts - content factory online, the founder of the most advanced short term rental training company in the world Cashflow Diary. Coming to us from sunny California, right J?

J. Massey:

Not sunny at the moment. But yes, that's funny. Content factory. I will you know, I'm gonna take that and

Jason Muth:

Jot that down.

J. Massey:

I'm gonna let my team know like, yeah, it's becoming a content factory. That's exactly right.

Jason Muth:

Right beneath your title on your door, you know, so when people walk in, they know that you are, you know, the content factory. This is J. Massey, everybody. J., welcome to the podcast.

J. Massey:

Thanks for having me. I appreciate you guys taking the time to care about this subject. But as someone said, or has visited, you can't kind of avoid it today. That's the part that I love. That's the part that I love. There is no avoiding this subject at all. So no matter where you go, I like it.

Jason Muth:

So J. is with Cashflow Diary. And this is something that you've created. When did you create this?

J. Massey:

When?

Jason Muth:

Yeah.

J. Massey:

2008.

Jason Muth:

Wow. Okay, the sub headline on your website is practice what you teach. And that's one one thing that you just never know, when you're online, you know, you're following people on Tik Tok or Instagram reels or YouTube. And, you know, there's, there's a lot of there's a lot of great content out there. But there's a lot of pretenders out there as well. And I think you have to peel back the layers of the onion to figure out is the person that you're listening to really doing it? Are they in the trenches? Are they practicing, what they're teaching, and you're also a teacher, all the content that you have. You have an amazing Facebook community where you're always answering questions from them. J., tell us how all this started and how it took you to the level of expertise that you're at right now.

J. Massey:

So it started because I in my first marriage, I was, I wanted to be the man that I believed I needed to be for better or for worse, that's what you're supposed to do. And when she was pregnant, she has a condition known as hyperemesis she couldn't eat or drink. And I ended up puncturing my lung and I was born with asthma, and I couldn't walk and talk simultaneously. So if you can imagine a situation in which you you can't work, because you can't walk or talk. She couldn't work because she was literally fighting for her life. I was looking for a way to generate income still, and I didn't know what that was. And turns out that real estate was the answer. See, we're taught to take our labor and turn it into income when the truth of the matter is if we take our labor, build assets, and then use those assets for income, when we get sick, it would matter. And that's the challenge. We don't know how to do that. And I was forced to learn it at a very young age. And the first strategy I was executing was wholesaling. I was buying and selling houses using no money, no credit. And really quickly in about 72 hours we went from I was doing $2,000 to $26,000 per transaction. And like most people, if you teach me the rules, I can play the game. I didn't know it existed, though. So you can't do that. And I was forced to learn it. But through that process of doing a lot of transactions, because I did around 200 or so wholesale transactions before I like just like Okay, I gotta do something better. But I didn't realize I needed to do something better until the IRS came and said, Hey, we want our share. And I'm like, I don't like that. What can I do about it? And that's what got me to collecting houses. And then from what I was what I call collecting houses, but it was really cell phone towers, commercial real estate, apartment buildings and the like. And through that process, I learned the weaknesses of both sides. When you're doing a whole bunch of active income, you have a tax problem. When you do nothing but hold property, you have an income problem, it's a great way to build wealth, horrible way to build income. And I wanted a mix between the two. And what happened is that one of my students came to me one day and said, Hey, this is what we did with the money you you helped us, you know, to learn how to raise. And what they were showing me was a short-term rental. I had, I mean, I had heard of Airbnb, but I wasn't like, that's what I'm getting. I don't see how that works. But being forced to sit down, look at the numbers and understand it, I was like, Oh, okay. And then I decided to help them make a better system build a better system for what they were doing. And in the process of that construction, started doing it himself. And lo and behold, I figured out that this particular strategy with systems is very scalable, very accessible for way more people than the traditional real estate strategies that are out there. And it's served as an entry point now, for a lot of individuals, we've had unemployed individuals, divorced, individuals going through divorce, married couples, all of them. And we get the privilege of working and seeing insight into 17 different countries now with this particular strategy. And it's, it's been one of the greatest, greatest feelings ever, is to create seven figure families. That's what I get excited about.

Jason Muth:

What a story. There's certainly a lot there. And some of the elements that you just mentioned, that you have discovered, are things that are not taught in traditional school, you know, you mentioned the tech elements.

J. Massey:

Some of the elements?

Jason Muth:

Yeah, all of them. I was being I know, I was being generous.

J. Massey:

Like, which one was in school, I really would have loved that class.

Jason Muth:

Yeah, we all would have. And, you know, Rory, and I have done a lot of conversations lately about tax planning. As you and I were talking before we hit record, you know, something that should be done throughout the year, you know, not just in the later part of the year, but there's a lot to it that is never taught to us, it's never told to us and the average person, you know, who's outside of the world of real estate investing, is unaware, completely unaware of what you've mentioned, right there. Rory, what are your your thoughts on the direction that J. has taken, you know, his teachings and some of the things that he discovered, you know, well over a decade ago that people are still discovering to this day,

Rory Gill:

It's not lost to me that you were through bad circumstances kind of forced to learn a lot of this when you were younger, and implement these good habits at an early age. And fortunately, a lot of that has paid off. But a lot of that goes contrary to what a lot of people are told, and that is to get a job, go to school, be comfortable incurring a lot of student loan debt in the process. And that is the recipe, the old recipe to success. And that leaves a lot of people with a tax problem. It leaves a lot of people with a debt problem. Inhibits any ability for people to really gain assets for it. You were forced to understand what your why was pretty early on, you know, in a negative way. But that really allowed you to jumpstart and get things going against the grain of what we're told.

J. Massey:

Didn't feel like a jumpstart. I wasn't it wasn't like, Yes, I'm doing it better. I did not find out that it was a superior method. For a while. I didn't find that out until, I don't know, it was 38-39, I think is when I called myself retired for the first time and said, I realized that had nothing to do. But I also had no one to do it with. I had no one to do nothing with it, which was the problem because I was like, bored by myself. And I learned that, oh, this is better than what most people said. And I've done nothing wrong, just because we were told that retirement happens at 59 1/2 or 60, or whatever that number is. That doesn't mean it's illegal if you did it early. But we act like so. We literally plan and accept. Okay, cool. That's supposed to happen then. So for now, I can do whatever I want. No, it could happen sooner if you just knew that your labor should build assets as opposed to labor going into income and that that was not something I like I said, I wasn't taught that. I didn't know that. There's nothing at the kitchen table. There's nothing at the high school. I have a public high school diploma that is that's that There you go. That's what I got. And it happened because I wanted to eat. I wasn't trying to be anything other than a responsible human being who fed his family. And oh, on the other hand, I discovered that this is the most valuable thing that I've learned is, or the most valuable thing that I have, because that's what set off to creating the teaching and training company was, I was faced with some of my business mentors who passed away. So I was like, Okay, well, if I was the one to pass away, what was going to be the most valuable thing. And I think at that time, I only had like, 117 houses or so. And, you know, more spoiled rich kids. That doesn't. That's not it. So it's not the houses, it's not that. And I realized it was the information, it was the understanding, it was the how to look at the marketplace and assimilate that information in a way to develop a cohesive strategy that works for an individual, regardless of their level, current level of skill set, so long as they're willing to apply themselves and push forward. And that's a you know, so I've spent the better part of a decade plus now trying to help others, specifically men, lead if you will, and build in belief. That's what I want

Rory Gill:

What do you mean by retired? Because you're people to do. obviously working, you're, you're putting up the podcast you're teaching. What is it? What's the difference between being in your career and being retired?

J. Massey:

That's a great question. Because if more people would take the time to define what they mean, here, they probably wouldn't actually accept it. So what I've come to define retirement as as more money coming in, and going out without working AKA, if your assets cover your, your expenses on a monthly basis, then you're effectively retired, you don't have to work your work because you want to or maybe you're on a mission of some kind, you've got something that you want to achieve, not because you need the money, but because you you need the sense of accomplishment, personal development or something else. So if you had a portfolio of houses or short term rentals, or song rights even that paid you 20 grand a month and your expenses, or even 20 grand a month so long as the 20 grand a month keeps showing up. You're you're in a retirement-like state. So you want to continue to drive that to the point where maybe the income is double. And you know what your expenses are. But that's, that's what I mean, is that if you got up if you did nothing physical that produced value, and received economic compensation for it in that month, and still be fine.

Jason Muth:

So why did you find your way to real estate as a way of achieving that? You know, that's a softball question I'm hoping because I think that there's so many benefits, especially the people who are listening to this podcast that know that real estate is a way to achieve that. But like, you know, when people come to you for the first time, what are those things that you tell them that real estate could do for them that their current W-2 job wasn't telling them?

J. Massey:

Well, the biggest Okay, so for me, and I'm glad So when people come to you because your your website talks you brought this up. I'm asset agnostic, I really don't care what the underlying asset is, I could care less about real estate, the walls, the toilets, and all that stuff. So I'm sorry, all of you Home Depot people who are in love with the countertops, I'm not that guy at all, I just don't care. Now, the benefits that real estate brings - different story. And one of those benefits, I think the biggest benefits is that when you understand that you have the ability to live your values. I think the biggest challenge that a lot of individuals face that we face as a society is the fact that we've got people who are yes, you might be earning a significant amount of money, but you don't like what you're doing. You don't even like who you are when you're doing it. And you don't know what else to about short term rental masterclass, what are some of do. So you keep doing it. And you can't find a way in to what you've been told is a great asset class, aka real estate because it can feel very exclusionary depending on who you are. That how do I get in then how do I I would like to get in that looks good to me. And that's why you know, when I first got started, well, even still to this day, I specialize all the traditional real estate strategies. I've never used the bank so all the things you heard me rattle off earlier the single family houses the cell phone towers, commercial retail, these were all done with no banks whatsoever. And learning to do that without and around the standard traditional financial institution. But that's why I love short term rentals is because it is to me the entry point to giving someone anyone for that matter the ability to become what banks like to look at to in order to lend. And if you want to keep going with that to buy even bigger bigger assets. the questions that you're getting from those initial inquiries from people that reach out to you saying, like, J., I like your stuff, I listened to your podcast, I see you have a lot of expertise in here, I kind of want to run down that road, as well. But I don't know where to start. There it is right there. You just nailed it. How do I start? I don't get it, whatever, how does this work? Right. And they they bring a number of preconceived notions, but which we deal with, but then we just literally help them see that it is a it's a very clear step by step process. But what happens is that most people, we complicate because of what we think we already know, or how we think things work. And that that's the challenge, for example, that one of the biggest things people believe is you have to own the property, when the truth of the matter is you don't. The second written right behind that is because someone I know, I know, I'm talking to you right now, you washing the dishes driving the car, here's what happened, you said yourself, but J., I want to own the property because of the equity and I will make more money. And here's the thing, you did that without doing the math. And the truth of the matter is, the higher cash on cash returns is through arbitrage using somebody else's property. And the next step becomes Okay, well, what about the money? I don't have all the money. I don't know what it is about real estate, people wanting to become real estate investors. But for whatever reason, if I said restaurant, if I said I got an idea for a new pen, a new Kindle, a new water bottle, a new something. You know what? In that instance, we think, Okay, I gotta go get some money from somebody else to then bring this thing into being. But when we say real estate, we think suddenly, I have to have every resource, all of it. And that's not true. Yes, knowledge, time, money, and credit are required, but they don't have to be yours. You do need to bring something to the table. But leverage is the biggest thing. And the real estate or real estate strategies benefit from POC proof of concept. Simple as that. I don't need any convincing. You don't need any convincing to talk to the next human to say that, well, people like a roof over their head. That's not news. So yes, you're right. Got it, though. So long as that's true, then okay, great. I mean, when people stop liking roofs over their heads, then we're in trouble. But until then, you know, it's just a matter of how are we going to use real estate? How are you participating in real estate? Do you only pay into it? Or do you also receive from it? See, most people use Black Friday, if you will, like, man, they hate it? Well, the only reason you hate it, because you're not the one selling the products. See, if you've ever been a producer on Black Friday, you love it. The first of the month, you hate it, because you pay rent, not receive it. You hate it because you pay the mortgage, not receive it. So it's all of those things. It's the consumer versus producer situation. And we have to work with that mindset to get you to then do the activities of looking for properties from landlords that can help you to that, that that are looking for you because landlords have vacancy. So it's a very simple equation. Yeah, vacancy is a problem. It's an expense. And you the short term rental operator are the solution. You're the tenant, Hey, you're the buyer. And so most people don't see it that way, at least at the beginning. But we have to help them see it that way. And then once they do, there's a whole list of questions that are typically associated with that transformation process, to get them to understand that no, that gas station down the street, you know, they probably don't own the land, they have a landlord. And it's very similar.

Jason Muth:

You know, I when I first heard about arbitrage, you know, last year, the year before, whenever it was and realize what people were doing with it. First, it seemed like people who are renting places, were asking permission saying, Hey, listen, you know, you have a great apartment. Do you mind if I rent this out short term to people, here are the things that I will do, and then you come to an agreement for it. One thing you just mentioned right there, though, is helping solve a landlord's problem. And that's another way to look at an arbitrage situation where if you want to approach a landlord that maybe is having a hard time renting their place out or doesn't want to keep looking for tenants, maybe you're going to give them an out and easy solution to their problem of a long term tenant saying, I'll I'll sign your lease. Just let me do this. Instead of saying, you know, hey, beautiful high rise in Miami. Do you mind if I do this? It's a little A different way to think about arbitrage that I hadn't thought about until you mentioned it.

J. Massey:

Well, okay, let me give you a few more because I want to also undermine that. This is it. Okay? You guys are ever been on an airplane? I'm assuming the answer's yes.

Jason Muth:

I'm not Rory.

J. Massey:

Yeah. So a couple times, right, exactly. So if you

Jason Muth:

A couple times.

J. Massey:

Right? Because there's now a problem. Yeah, that plane has a single point of failure. See, one of the things are getting ready, get on an airplane go from say, Miami to that we business owners or real estate investors even don't do is realize real estate investors tend to forget that they're in business. Therefore, you create, we often create single points of failure inside especially long term landlords, because what they're not thinking about is the fact that, hey, I am committing watch this 365 days, I'm pre selling them, I'm New York, New York to LA, whatever. Gonna go to Cancun. I selling them for $24,000. Now you Mr. tenant, I will give it to you on an interest free loan. And here's the payment structure. I need you to pay me $2,000 a month. And then and then in fact, to make me feel better, I want you to give me an extra, you know, $2,000, and I'm just going to hold that just to make sure that you're gonna make good on all of the payments. And don't care where you're going. But you're getting on the plane. we create a single point of failure, he's sold 365 days to one person on the hope that nothing will happen to that one person. And if that one person that one family goes down at any time during that term, then what? Exactly is the problem? And what we as a short term rental operators can do is we can pivot our person technically every day, and landlords tie their business to a single point of failure, whether that be that one family, one industry, heaven forbid, should it be his entire And just before you board you notice you look at the plane. tenant base is employed by the major employer, they all work for Google cool, they all work for Meta, great, well didn't Meta just layoff, do you? And now you as the landlord have a problem because the mortgage company, they're not really going to care about that, then you've got to figure it out. We offer what I consider to be a safer product, because we can change. Just like what happened back when and COVID, landlords Everything else looks right. You got the right, captain, you got learned it's that single point of failure existed, we remove that. See from a business standpoint, that just makes sense. You would never, ever design an entire business around I got one supplier, that's it. You wouldn't do that. Because your business means too much for that, but landlords, we think, Ah, I'll just get along, you know, a traditional tenant, and that'll be fine. And no, not really, it's not that that's not even talking to the are you maximizing the revenue piece? I mean, but we could, but more importantly than that, the other the right, everything looks like you like you remember it. But do thing that hamstrings long term landlords are the ordinances and rules. Because you got me, especially for those that operate in rent control areas. Well, I don't know, you may not think about it. But the short term rental operators not a protected class. Think about that for a second. That gives you different options as it relates to the revenue related to the to the building. And then for those of you owning property, you're making a choice. It's either cash flow or you look at that plane and that plane has one wings? Are you deferred maintenance. I know because well, property owner, cashflow or deferred maintenance, and you you decide each and every time. But if you had more revenue on the front end, you wouldn't have to make that decision, you could upkeep your property and take money home. And this is definitely true until the property is paid off. So it's there are many things that we don't think about that make it superior, in my opinion, or at least worthy of considering in the mix. Because it has characteristics that most people just aren't thinking. going to get on it? It's just something new to us. So you're like, I don't know, and you run the other direction without truly trying to take time to understand if that makes sense.

Rory Gill:

Yeah, yeah. In a just being The Real Estate Law Podcast. I'll just kind of double down on something you said, even though we're not under rent controlled area, we are in an area where it's very difficult procedurally to evict, and a six month eviction timeframe is good. It's short. So for landlords looking at different options they have renting a property to a short term rental operator has it benefit because it's going to be much easier to evict the company, the investor, the short term rental operator, if they fail in their obligations under the lease, then it would be to evict a long term tenant in there. And then you have now effectively six months of vacancy plus damages plus legal fees. And that's something you're not likely to face with the short term rental operator as your tenant.

J. Massey:

Or, but and here's the fun part. When that operator, again, we're using operator as if they're all equal, they're not there's still an there should be an underwriting process for that operator, because they're not all created equal. Trust me, I know. But in general, even if and when it goes bad, one of the standard things I like to include and teach people to include is a right of replacement clause, if you will, where I the operator, if for some reason I identify and go, Okay, this is really not working out, here's what I'm asking you to do, let me find you pay for whatever, a suitable tenant for you, and, and move on. Because I can see that if that's going to happen. Now, I don't have to use that clause. But the point is, is it's still there. Because, you know, maybe maybe something happens and and you decide we decide somebody decides that a change needs to be made. And it's just an it's just not, it's just not thinking about it, or thinking it through and understanding exactly what the business model is, what it does, and how it serves the community. That that makes all the difference in the world. Because the person or having a short term rental operation inside one of your buildings actually can help you even from a tax standpoint at a certain at a certain volume and in certain ways. So it's, there's just so many things that are available. But we you know, we just shy away from it. And we stick with what's traditional, even when what's traditional has been proven to not work. And that's the stuff that I'm like, Come on wake up, we can do we can do better than this.

Jason Muth:

What are some trends you see, as we're heading into the Airbnb platform growing in a double digit, I think it was in 20 something percent of of units went up this past year. You know, this is we're releasing this in early 2023. And a lot of operators are saying that there's more supply out there right now, you know. How do you? How do you coach your students and people that ask you about that? And, you know, what are some ways that you give them the confidence that this is probably still a good idea if the supply has gone up a little bit higher than the demand in some markets?

J. Massey:

Okay, I'm gonna I'm gonna, I'm gonna answer this but you you are about to risk converting the majority of your audience to short term rental operators. Are you sure you want me to do that?

Jason Muth:

Hey, why jump in the pool? The water's warm here.

J. Massey:

Here's what I mean. So yes, you're right, the You mean, you said way more detail and eloquently than I economics of the situation has always been supply and demand. However, what we consider supply is important. And what we would say. But I've definitely noticed in our short term consider demand is also important. Most are when they're considering the short term rental industry. They're thinking about vacation homes, they're thinking about, I live in I live in Southern California, and the number one customer I do not want is someone on vacation, I do my best to avoid them. Okay, so there are 65. We've identified 65 different use cases for short term rentals. So let's start with that. Yes, supply has gone up, and there's still not enough renting that areas and big cities as big in every jurisdiction that we operate. So here's what I'm saying. When a house experiences an event, like their pipes bursting, so, someone today, as you are listening to this had their pipes burst. You know what happened? They called their insurance company and their insurance company called the claims company that claims company outsourced that claim, because one of the coverages is to find them a place to stay, it's inside the insurance policy. And that outsourced the claims company that outsource that housing need. They use short term rentals. So now we have to ask ourselves something very basic. Will pipes ever stop bursting? No. And here's what I know. I can call up any of those companies. By the way, one of them is ALE solutions because I know somebody is going to ask what is the name of that company? It's ALE solutions, and you can look them up. And every one of their agents has a stack so high that they cannot house them all. They just can't they don't have enough. So they they so they try to convince their insured person to use a hotel. Well, if the hotel closed down, and do you see what I'm saying? This need doesn't go anywhere. That's just one. But let's talk about the military, for example. If you're near a military base, especially those that train - does the military ever stop training? The answer's no. So there's a need there. And it's always constant and definitely undersupplied. There's also the PCS permanent change of station. There's a site out there called at ease AtEase that you notice specializes in specializes in providing temporary housing for military, just for the military. But probably one of the strangest ones that I had no clue about, was one of our students got contacted by the government because they needed to put a - they had a person on house arrest. And they needed to put him somewhere because they didn't know like, What are you talking about? That was strange had no idea. There's so many use cases for this. I mean, we don't think about it. But every tornado, every natural disaster anytime you've seen FEMA rehousing people, they are housing them somewhere. And these are all forms of temporary housing. Yeah, Airbnb, VRBO. These are all the marketplaces where you can meet some of the people, but it's not all of them that have the need. And that includes emergency shelters, for that matter. For abused spouses, you got that you got your LGTBQ who are being put out in various, there's a number of different ways of slicing this pie, if you will. And the need is massive. We haven't even begun to scratch the surface. You've just gotten to the awareness stage. And it sounds too grandiose and it feels like you are too late when the truth of the matter is we've just begun. Here's how I can tell you that. Just back last November - Greystar. Look them up a lot, one of the largest residential management companies in the United States, as well as a couple of other publicly traded companies keyword being publicly traded companies just solidified and announced their partnership, they've been working together for a while but they just solidified in announced their partnership with Airbnb giving their tenants their existing tenants, the opportunity to put their unit that they are living in on Airbnb. What I'm saying ultimately, is we haven't even reached marketplace acceptance. And we're concerned about saturation. Yeah, that's what I'm saying everywhere. If you guys can hear me right now, you've got to, you've got hotels building a hotel. They're doing it for a reason. It's not because they think it's going to be empty. And the so yes, there is more supply. But we're still well below 2019 numbers in terms of supply 2019 being the base year before COVID because everything went wacky after that. But we're still below that. Now we're approaching it fast. In fact, short term rentals is the fastest part recovering part of the hospitality industry, which is great. And we have a long ways to go. Because corporate travel, the work from home movement, all of this other stuff is affecting a corporation's need for temporary housing, as well as not and not, that's not even including the new mothers, all of the new mothers who have just been trained and don't want to expose their kids to especially below 18 the stats say families traveling with children between the age of two and 18 are the ones who are literally dumping the hotel for short term rentals the fastest because nobody wants to, they want control over their environment. It all makes sense. It all works. We're just not as entrepreneurs realizing the trend. We're listening to headlines trading on that without truly understanding who the customer is, because that's the biggest piece to understand. And the fun part is for any one of the things you've heard me mention, you must realize there's the Walmart, Target, and Nordstrom effect. So just because I'm a traveling medical professional or traveling nurse or something, sometimes I'm the Nordstrom style traveling nurse, meaning I want to live a certain way. Sometimes it's the Target stuff, sometimes it's the Walmart stuff, I just want the bare basic needs at the greatest discount. And as the short term rental operator, we get to decide, am I the Walmart, Target, or Nordstrom of my area for this particular customer. So when you divide it up properly and really think about it the way markets mature, we are so at the beginning It's not even funny. drivers behind short term rentals. But there's somebody who needs to stay in areas that you don't even think of as necessarily having short term rental traffic. There are people that need to be near family, people that need to be near a temporary job. And these aren't necessarily the glamorous places, or the big cities where people think of, but there is a strong demand in those places. And often those are the same places that are underserved by good hotel infrastructure. So, you know, there are opportunities that I think are a little less apparent to maybe some people who are listening, but they're worth exploring having a short term rental space. Yeah, I agree. Well, I'll say it this way. It's not about the property. It's about the experience of the property. There wasn't property, it was all orange groves, but it became Disneyland. And he followed that up with buying a swamp, turned it into Disney World. So if you can, that's really what it comes down to. It is not about the property. In fact, try this one on for size, go type covered wagon Airbnb. Covered wagon Airbnb, in that though, that that order in Google, you know what's gonna pop up? People who are taking vacant land, and putting a covered wagon on it, no correction, five covered wagons on it, putting them in a circle, but renting each individual covered wagon for hundreds of dollars a night on vacant land. Now, I don't know where to get a covered wagon. But maybe you do. My point is, you just have to realize it's about an experience. What you're crafting is an experience at a piece of property not it's not the property in and of itself. And that that's the biggest difference. Once you click there, everything else can can open up for you. The opportunity is massive. And we haven't even begun to scratch the surface.

Jason Muth:

You know, as Airbnb would have you believe that covered wagon wagon example that you gave, I was thinking more like a leanto or teepee or Yurts. Yeah. And you go to their homepage, and

J. Massey:

Yurts are great, bro. they're talking about all these unique experiences, which is the direction they're taking their marketing, it's the direction that they've categorized a lot of their properties. Everything you mentioned right there, though, you know, a lot of those kind of medium term stays. It doesn't feel like it's forefront in the marketing on Airbnb, like they're not telling hosts that this is this long list of things that you could be looking for, for these types of customers. You know, I mean, for God's sakes, you mentioned house arrest, you had a list, I'm sure if 64. And then when they said house arrest, you're like, alright, the list is 65 now, right? You know, maybe it'll be 66 when you learn about another category of people. But this year was a year where I heard a lot about medium term rentals. And maybe it's just me that heard about that this year. But I think it's out there with a lot of podcasts and YouTubers, and at the BP Con this year out in San Diego, they talked a lot about mid term rentals. And a lot of the category you mentioned was all mid term rentals. But you know, you dissected it, it's not just oh, yeah, do mid term rentals to well, then what does that mean? Oh, traveling nurses. Okay. There's a lot more than that, beyond just traveling nurses. And you know, I appreciate your sharing lots of those categories. Absolutely. You know, it's given me and a lot of other people a lot to think about when you're trying to put together a strategy to fulfill a need, because really, Airbnb is a marketplace, right? You know, it's created a need. And then can your property capture the demand that's out there? You know, it is a search engine, right? Yeah, that we find a website, you know, you do good search engine optimization on the website. Airbnb is the same thing. This one often blows people's minds. And it should, because it's crazy, but it's also true. You've been in the airports, you use travel again, you've been in the airport, you've opened in that SkyMall magazine, or whatever it's called now. And you've seen the doctors that are there in the magazine with the big cheesy grin. You've never seen them. But they're in every airport. You know why? It's because people are flying to from other places to see that doctor, that particular doctor for whatever it is that they do. And watch this. Every time that doctor makes an appointment, the receptionist right after she said, Okay, cool. We'll see you on Friday the 15th. The question that he or she gets next is, do you have any places that you can recommend for us to stay? Wait a minute. What? And you know what they do? They're like, well, there's a hotel down the street. That's what they do. Because no one contacts them to say, hey, if you've got a patient coming in, they can stay here. And it here's the fun part about that. When we're thing thinking through this, you're thinking, okay, cool, I just, you know, I'm gonna start now just get one, you don't realize that the law of adverse selection is working against you, and you need the law of large numbers working in your favor. And in fact, this business is harder hardest from zero to seven. So you're thinking, I'll just get one and see how it goes, when what the doctor's hoping is that you'll get 20, because they're going to see about that many patients for what they do over the course of a month, and they can just keep rotating that entire house, and then you realize, that's just one doctor. And there's more than one of those doctors in your area. That's what's so crazy about this particular way of, of housing individuals is the when when I break it down, like I'm doing right here, it becomes very apparent to you that you didn't, you just haven't used don't know what you don't know. And there's a lot that you don't know, but that the opportunity is huge. And which is why I say every one of the strategies is a seven figure plus strategy. Now you need to become the person who knows how to operate a an organization and a building and staff and team and all of the things that can then keep it going. And a natural next step for a lot of those that we work with is hotels, which is what they make the transition into. Because, hey, now it's even more people, but it's the same game. And that's what's fun. Anyway, I love what I do alive. Because of the transformation that's required inside in order to do it.

Jason Muth:

I can tell I mean, you're really giving some thought to positioning it as more than just, you know, I want to get into short term rentals or Airbnb, it's like saying, I want to open a restaurant. Well, what kind of restaurant you want to open up? Do you want to open up a fast food place or top end steakhouse or, you know, somewhere in between? You know, there's lots that is the dining industry, right? But just because you're opening up a restaurant, doesn't mean you're gonna serve the whole industry, you're gonna serve a niche within the industry. And this is what you've given some great thought to. And shared amazing knowledge on this podcast is, is really helping our audience, if you're listening to this saying, What's my niche? I mean, it's limitless is what Jay is saying,

J. Massey:

Which is the problem. Yeah, that's actually the problem, because nobody wants to choose, they want to try to serve everyone. And what you don't realize is that you end up serving no one, we've created units specifically themed and that sounds it's gonna sound crazy to some of you around Star Wars, that the entire theme. Now some of you absolutely can't stand it or even don't know what it is. I'm sorry for you. That's okay. But Star Wars, and you know what, they make more money because people want the R2-D2 is the coffee press. It's pretty funny, you know, or Marvel or anything Disney related, honestly. And making themes is just another is it's a variation on that same concept, to create a unique experience. Probably the most unique theme I've ever seen was spiders. I don't know who you are, I don't want to know who you are. I cannot stand spiders. But guess what they did quite well, because there's some of you out there who really like spiders. And so you want to spider-decorated curtain and duvet and stuff, but I'm not that person. And or clowns. I saw one like that. It's all crazy. It's limitless is actually part of the problem. Because when you're first starting, you're you're dealing with so much fear, you're afraid that you're not going to succeed or get it, quote unquote, wrong. When the truth of the matter is, it's a it's a marketing question. If you spread the message wide enough, you'll be fine. Especially if you're talking to a very specific person because somebody somewhere wants the Billy Bob alligator and airboat experience. It may not be you. But there's somebody

Jason Muth:

Well, Rory, do you want to book a spider Airbnb? That could be our next vacation.

Rory Gill:

Let's then create a list of the snake, the snake in the termite and maybe a cockroach themed one, somebody is going to be out there who wants it.

Jason Muth:

If they're if they're a big cockroach enthusiast, well. Why don't we get to our final couple of questions. And then J., you could tell everyone where they can learn more about you and your teachings in your course and whatnot. We ask these three questions of everyone that comes on the podcast as a way to wrap things up and get to know you a little bit better. The first of our final questions is if you can get on stage for half an hour and talk about any subject in the world with zero preparation. What would that be?

J. Massey:

Leadership and accountability. There's not enough men leading we have a leadership deficit. And I think that's simply because we don't even believe we can. Yeah, we don't even believe we can. And we believe it looks like something that it doesn't and he or somehow this mystical leader is born a certain way. And that's not me. So clearly, I'm not yet meaning we can become it. So yeah, leadership all day long.

Jason Muth:

Excellent. Great answer. Second question, tell us something that happened early in your life or career that impacts the way that you're working today.

J. Massey:

I'm a military brat. So I've gotten to I've spent the majority of my formative years outside of the United States, that gives me and still informs a perspective of the world that is different than most individuals that I am around on a daily basis. I say that to say, I don't take the freedom to choose what to do with my time for granted. All of us are free. Now, you've got to decide how do you want to fight to keep it? And once you obtain your goal, do you turn around and help another? So being from a military environment, it's always been about team, it's been about the mission and the the message. And that informs nearly everything I do, because it doesn't, it's not about the money, it your whatever your whatever got you started doesn't keep you started until it elevates into to some to some different level. And right now, it's seeing a person cross six or seven figures for the first time. And we in fact, this past year, we just created our first single black female who got into the seven figure category. That's what I get excited about is it's being able to do that. And that comes from leaving no soldier behind. That comes from understanding that. Yeah, I may be okay, but what about the next person, and it comes from just learning and seeing and having to think about more than just my own safety and well being everywhere I go, and also understanding that where I go, I'm a representative of where I'm from. And so all of those things come come into play today.

Jason Muth:

Yeah, it's a teamwork environment. It's paying it forward. And it's realizing that you could teach other people to be successful, and that won't make you fail.

J. Massey:

Doesn't make me less successful to help you be successful.

Jason Muth:

Right. Well spoken that's well said. That's a really great insight. And our final question for you is tell us that you're listening to or watching or reading these days.

J. Massey:

Understanding the Power and Purpose of Men by Dr. Myles Munroe. So that probably resonates very, you know, consistently throughout everything I've been saying. But yes, understanding the power and purpose of men because the male identity has been under attack for quite a while. Many men don't know who they are, we define we let something other than ourselves define what it means to be a man, and then do that yet. So that which makes it challenging because then the next person who has a different definition, we're like, do we defend what I just learned? Or do we adopt that and it gets really confusing. So yeah, Understanding the Power and Purpose of Men by Dr. Myles Munroe.

Jason Muth:

Got it. Well, great. Well, J., we really appreciate the time you spent with us here on The Real Estate Law Podcast, if people want to learn more about you, and everything that you have shared today, plus more, where can they go?

J. Massey:

So here's the easiest, especially since you're you're probably on your mobile, sorry, your mobile devices. Because when you go, you could go to at what's it called Cashflow Diary at Cashflow Diary anywhere, and it'll probably it'll be us. So that's the you know, at cash flow diary. You know, you can do that on Facebook or Tik Tok, or wherever you go. But probably the best thing is we produced a eight hour course, we're going to teach you how to get that first short term rental at no additional cost, just text, the word Blueprint, it's free to 949-881-6939. All you got to do is send a text message, we'll send you the link. Download it follows the directions, please follow them. Don't invent new ones, okay. 949-881-6939, text the word Blueprint there, that'll get you started. So that you can know and understand and implement many of the concepts that I've shared here, because again, I view short term rentals as the gateway drug, you're going to use other people's property, that's phase one, then you're going to scale that going to two to 120 to 120, because that's the system that we teach you support up to 120 units. And then phase three, you're going to buy assets by those long term assets that you want to for intergenerational wealth or for whatever purpose you you have in mind, and that's the plate that's that's it, and I want to make sure that more where people can do it, which is why we took something that we used to charge for. But now we give it away, because it helps more people get where they need to be where they want to go.

Jason Muth:

Yep, proven strategy, follow the blueprint. Don't sway off the course. You know it. I'm sure that it's very well battle tested. And you have a long list of successful students who have followed exactly what you said you should do.

J. Massey:

Including making an entity, so that we're clear. Many people keep trying to do this without one. But that's a whole nother but you guys know that?

Jason Muth:

Oh, yeah, we know that. Hey, Rory, where can people find you?

Rory Gill:

People can find me in two places at my real estate brokerage business. That's NextHome Titletown nexthometitletown.com. Or they can find me at my law practice or in UrbanVillage Legal, that's urbanvillagelegal.com.

Jason Muth:

All right. All of that is going in the show notes along with everything that J. mentioned, as well, we'll put the number to text and it makes sure everyone has all that great information so they can reach out to both of you. And if you want to reach out to me, you can email me at jason@nexthometitletown.com Or leave a comment on this video. Wherever you're watching it. We appreciate your ratings as well. If you want to give us a five star review, we love five star reviews. Got to ask for the review. Right? If you're on Airbnb, you want the five star review? That four star review is not what you think we want the five. But we appreciate your listening to this podcast. Jay, we appreciate all of your time today. This has been fantastic. And I'm going to challenge myself and others to think of more use cases for short term rentals to add to that list. Next time we talk it will be up to 75 or 80. Just kind of keep on going.

J. Massey:

That would be great. That would be good. Well, on behalf

Jason Muth:

On behalf of Jay and Rory and myself, thank you so much for listening to The Real Estate Law Podcast and we'll see you next time.

Announcer:

This has been The Real Estate Law Podcast. Because real estate is more than just pretty pictures. And law goes well beyond the paperwork and courtroom arguments. were powered by NextHome Titletown Real Estate or Boston's progressive real estate brokerage. More at nexthometitletown.com and UrbanVillage Legal, Massachusetts real estate counc serving savvy property owners lenders and investors more at urbanvillagelegal.com. Today's conversation was not legal advice, but we hope you found it entertaining and informative. Discover more at realestatelawpodcast.com Thank you for listening