Escaping the Drift with John Gafford - Choose: Tom Hardy or 5X returns with AirBNB? w/ Jason Griggs EP 25

Episode Date: November 12, 2021

The Power Move Episode 25This week we go in depth into the AirBNB hosting business and the 5X rental returns it provides over the traditional rental plan with expert Jason Griggs. We also find out Colt's wife would drop him for Tom Hardy.with Colt Amidan and Jason Griggs

from the art of the deal to keeping it real live from the simply vegas studios it's the power move with john gafford back again back again back again another episode of the power move. This is Friday's episode, so if you're checking it out Friday. Chris Connell, Esquire, still on a damn yacht in the middle. I mean, when I say, this is not a

fishing boat, Colt. No. I've seen pictures of it. It's not a fishing boat. This is a damn... It's not a dinghy. Would you say dinghy? Dinghy? Is that what you said? No, you said it. This is a damn. It's not a dingy. Would you say dingy? What is it?

Dingy? Is that what you said? No, not dingy. No, you said. You said. I'm not going to say it. What did I say? You said dingy. I did it?

Yeah, like an emphasis on the ingy. How do you say it then? A dingy? That's what I said. You're just mumbling the last of it. No, no, no. You said dingy. It's a dingy.

That's what I said. We're going to replay it back. If somebody gets a home run, is it a dinger or is it dinger? dingy that's what i said like a dick we're going to replay if somebody gets a home run is it a dinger or is it dinger well that's different no it's not all right well anyway sitting in for uh chris connell esquire today we got my man jason greg jason what's up buddy how are you thanks john for having me i'm pumped to be here yeah man so so i wanted to have you on for a couple reasons um we're going to talk today extensively about one of the best trends in real estate. Because again, trying to focus on, as they say, dance who brung you.

That's a good way to put it, what my parents say. We've done a lot of the NFT. We've done the crypto talk. We've done all that stuff. But at the end of the day, we're real estate people. This is what we do. And you, my brother, are on, I'm going to call it the forefront of what's happened in real estate. And I dig that about you.

And not to mention that, but you also got another great quality that is near and dear to my heart, which is you're in charge of my son's lacrosse future. So there's that. So tell us a little bit about you, man. Obviously, you're from the great white north, yes? Yeah, yeah. I'm from Long Island, New York. I moved here 10 years ago now. You're from Long great white north yeah yeah I'm from Long Island New York I moved here in 10 years ago

it's important he's from Long Island is it yeah he is he never dated anybody from Long Island right because I did that once

and she almost killed me killed another girl I was dating no yeah don't date New York is a different cool top 5 girls

you dated from Long Island oh well no I'm just kidding don't answer don't answer big and coffee and want me to stab you sorry to cut you off Cool. Top five girls you dated from Long Island. Oh, well. No, I'm just kidding. Don't answer that question. Big and coffee and you want me to stab you? Sorry to cut you off.

No, there it is. So, Jason, you're from Long Island. It's a traumatic event. You grew up there your whole life? Yeah, I grew up in Long Island, New York. I went to school at West Virginia, played lacrosse there, and then went to grad school for a little bit. Moved out to Vegas 10 years ago. I was a phys ed teacher.

And then didn't really love it too much. Okay, back up, back up, back up. So you went to West Virginia. Yes. All right. You didn't marry a cousin. I didn't. Okay, that's successful. Best school in the world.

West Virginia. Go Mountaineers. Go Mountaineers. Go Mountaineers. Beautiful campus. I'll give you that. I've been there. It is beautiful.

I'll give you that. So you graduate with a degree in physical education correct yep physical education and communications communications yep and then you you're just so you got your degree yep and you're like i'm done how do you wind up in las vegas i was visiting a friend of mine over and over again over and i gotta take it was this a female friend no it's my uh it's a male friend my next my it's actually my extra neighbor in new york okay got it he moved out here and was going to school unlv okay right on and he kept inviting me out to visit and i was hooked told my mom what what was it what was it about the town what was it just every the energy vegas is energy town it is for a 22 yearyear-old, I was totally hooked. There's just so much action in this city.

And I really saw the growth of it early. I saw... What year was this? When was this? 2012. Okay, 12. Yeah, 22, 23. I was pretty young.

And this is... I didn't realize, but the real estate market was down. Oh, yeah. And I kept visiting. And then I convinced my cousin. I was like, you could buy a condo out here for cheap, 50 grand for a condo. Convinced them.

I was like, let's buy a condo. He bought me one. He goes, you got one shot. And that was it. And that was it. I was hooked on New York. See, I got to tell you, it's funny you talk about the vibe you felt when you got here, man.

There's a handful of cities, I think, in the United States that just have a vibe to them right when you get off the plane. I think New york city has that i think i think when you're pulling in of course i mean most people fly in to newark or wherever else and when you're driving in man we're coming across the bridge or wherever you're coming through and you pop out there's just an energy to that city you can't feel i feel that way about new orleans i mean the second island in the airport there's just a vibe to that city i think there's definitely a vibe to this city one million percent i think the probably the biggest vibe because you walk into the uh gambling you walk into slot machines right on the airport like how do you not feel a vibe when you hit this town i know there's no way i just think everybody's in a

great mood in the city at all times on the flight's coming in right that's like the flight's coming out but when you land and you get off that plane everybody in the city's happy everybody's ready to go um and it was very appealing to me early being a young guy um didn't know what i wanted to do with my life and i wanted to take a chance and gamble on something and i came out here by myself and i just hit the ground running and i love i love it so the first gig where so the first gig you get where is it so i get a job i go on craigslist i get a teaching job teaching kindergarten on craigslist is that how they're getting my kindergarten immediately i'm picturing like this dirty kid and now i'm thinking i've been watching a lot

of the school board meetings lately and it's all coming together shit show and i'm like it makes a lot of sense it was in north las vegas of barluther barluther king and anne okay i had no idea about it answered moved out got the job i was was making $29,000 a year. Okay. My first year. Well, I did it. I did the year, and then I met the lacrosse team here in Henderson. And all the parents were like, you got to quit that job.

We could get you a job doing something. Way more money. Anything else. So I got a job. One of the parents hooked me up with a job at the hotel. I worked at XS Nightclub. That was my second job. All right. Great networking place to work. Of course. Number one a job at the hotel. I worked at Access Nightclub. That was my second job. All right.

Great networking place to work. Of course. Number one nightclub in the world. What'd you do at Access? I was a busser. You're a busser. Table, servant, or whatever they used to call it. Got it.

Networked every day. That's one of my, I would say, best qualities. I like to talk to people. I like to meet new people. And after that, I worked there for about four years, saved up all my money. We were making really good money at the time. What's all this thing you saw there while you worked there? I think all the celebrities that you see, just like Bieber and Leo and like, they just come in and they're just like normal people. Oh my God. Right next to you. I got it

written. I literally have it written in front of me. And that was like, we might have to have you on. That's like the best segue ever. Did you happen to see? The Leo Bezos. Dude, Bezos. All right. See, here's the thing. Let's break this down. I think every guy on the planet started breaking this down like, oh, shit, that could happen.

So you know what's going through her mind. She's like, there's only, I mean, Leo's got money. There's only so much money. Like, there's a line where it just becomes irrelevant. And I think Leo's over the line. I'm pretty sure. I mean, what's the appeal of Leo? Like, I'm looking at Leo.

What's the appeal of Bezos? Are you kidding me? You're a billionaire, and you don't have to deal with him probably a lot. But I just don't look at Leo. Like, I see why girls throw themselves at him. I don't know. Maybe because them probably a lot but i don't i'm i just don't look at leo and like i see why white girls okay throw themselves at him i don't know maybe because i'm looking at leo leo is taking your girl in like i mean he that dude could like sleep in the gutter for a week and show up and take but i don't get it you know what what? So I've been fortunate enough to meet a lot of cool people. Your wife does.

Oh, probably. I'm going to ask her. No, my wife does, yeah. I always tell people the most impressive thing I've ever seen is a room come to a standstill, and I've been around major celebrities that have gone to stuff, but David Beckham made a room go to, it was like, it went slow motion. David Beckham was like, yeah, he's taking everything. I think there's, look, as much ego as you want to have as a man, I think there's a line and there's a handful of guys that cross over that line

that, like, you just know. You have no chance. They can take your girl and there's nothing. Like, if my wife came home and said, I'm leaving you for David Beckham, like, what am I going to say? You're not gonna be mad what am i gonna say i'm gonna be like mad at that point i'm just gonna think like well shit the kids are gonna have good christmas i guess i mean what are you gonna do i mean you

can try to what am i gonna sell her on this that's what that's what's gonna happen no leo's in that top he's a top ten you're completely done you're done i mean okay so you got leo you got david who finishes the top five oh and that list me i mean even though he's aging out i think stamos probably could occupy that list almost fine i think yeah yeah i'm sorry i can't tell that story yes we've been doing this for three months. You know the rules. You say some crazy shit. You got to tell the story. I was at a... No, because then I'm never going to get invited to the party.

No, you're telling the story. Tell the damn story. You know the rules. Tell the story. Stamos just knocked over some red wine on a nice rug and blamed it on a poor little girl. And I saw the whole thing go down and didn't appreciate it. And that's all I'm going to say. And he didn't like that I Oh, that I told the story,

but yeah, no, he's gorgeous. I'll give him that. Great. Good looking guy. Nice job. Now,

John Stamos is no longer listening to the show. Damn it. Cold. And what's the guy Rob Lowe? I got, Oh yeah. No Rob. Yeah.

Rob Lowe. He's taking it. And then like, there's gotta be like one old guy that you're like, yeah, of course he's going to take your girl. And I'm trying to think of who that person would. We'll get back to that.

No, see, I can't. See, like I wanted my initial response, my gut response was to say Clooney. But he hit like this weird line where he just turned to this weird old man. Weird, yeah. And like now, like that's the line that I fear. Because it's coming. Like I'm going to hit the wall. Oh, God, I hit the Clooney wall.

What's the 007 guy, Pearson? Pierce Brosnan. Eh, maybe. I don't know. He's on Leo's level. All right. wall that kind of hit the cloney wall what's the uh the 007 guy the pearson pierce brosnan i don't know he's on leo's level all right well you know as much as i'd love to sit here and talk about sexy dudes all day colt as you hijack the show as you always tend to do um yeah back to this so you get a better job get a better job that was a long that was a long way around that was quite the trip around the gym. Thanks. All right.

Welcome to the show, guys. Hey, welcome to the show. Anyway, so you got a better job. Got a better job. And what the lacrosse team gave to me was a networking plethora of opportunities. Every parent is so welcoming and wants the help, right? And so. I'm going to say this, man.

My kid's done every sport there is out there. And I will say of all of the things that we've done, the lacrosse family has been the most welcoming, the most interested in your kid being part of it than anything else. It's been really great. Why do you think that is? Because I come from Utah, so we're more just traditional sports.

It took some time, but we built it. The problem with youth sports right now, it's so competitive. Every parent thinks their kid is going to be an NFL and NHL professional, right? Yeah. And with lacrosse, there's not really a whole home ending to being a professional. There is, but these parents are realistic, and they just want every kid to have a good experience. Yeah.

And that's what we've built in Henderson. Yeah. I think, you know, it was crazy. And we were playing baseball here. It was like, dude,

my son was like seven. And I started talking to somebody. I'm like, yeah, you know, we're playing, you know, say a birdie little league,

blah, blah. And they're like, Oh, who's this hitting coach? I'm like, dude, he's seven.

They're like, you're behind. Yeah i'm like dude he's seven they're like you're behind yeah you better get on it i felt that i told my brother something when he came from la i said dude this is no joke your kid's baseball is he's like oh from la blah blah i go no and there's nothing wrong with that but yeah i think there is with with you there's going to be competition everything but there's a line. But what those kids don't get is it's always like you have to beat out the next kid. You have to beat out. And with our team, it's working together.

Yeah. And that's the difference between something like that and what we do. Yeah. I've definitely felt a good sense of that. I appreciate it. So you get a better gig. You circle across things. Where are you working now?

I'm still in the hotel. And I asked Tim Cupps, who you know. Yep, I know Tim very well. I wanted to learn how to do real estate. I bought my first house. Loved the process of it. I was like, can you teach me how to do real estate? I was coaching his two sons at the time. And he gave me an opportunity.

He said, oh, I'll give you a shot for a year, and we'll see how you do. And it exploded from there. And you know what? I'm going to give Tim a shout out real quick. Because look, man, I own a very large brokerage here. So me being me and doing what I do for a living, as soon as I found out Jason was in the business, we do what brokers do.

Hey, come on down. Come on down to the promised land, buddy. And what did Jason say, man? Hyper loyalty to Tim for teaching him the business and hold the ropes and an immovable stone from their brokerage, which is as it should be. Dude, I respect when you've gotten something like that from somebody. I respect that, man. I do. Shout out to you, Tim. Good job.

Yeah, Tim's been amazing to me, life-changing, obviously, mentor in my life. And I look at it, I compare it to the lacrosse team where if I coach a kid for a few years and then he says, oh, I'm going over here, Coach Griggs, because of whatever reason, I get mad. Like, I put some time and effort into you and I feel like I should coach you throughout. We're going to talk about that a little bit. We're going to talk maybe a little bit about that. So that's how I feel. I should coach you throughout. We're going to talk about that a little bit. We're going to talk maybe a little bit about that. So that's how I feel.

As it goes. But yeah, not anything to do with you, but just, yeah, we'll talk about that later. Sounds good. Anyway. Wait, you guys are going to talk off air, but I have to spill my guts on everything? No, that's true. I'm pretty sure the boy, because you're currently with the Coronado program. Yes.

I think the boy's going to go to Gorman. Well, then he'll go play for my good friend, Nick. Okay, cool. So that's good enough. And it's totally fine. Vegas is different. Vegas is different because of the schools. Look at you.

You're trying to cause problems on the show with the guests. You've got like seven inches, but he's kicking your ass. We bring him in here and we're trying to have a nice conversation and you're causing problems. I'm just trying. Do you think you could be an Olympic?

Do you think you could play lacrosse? No, not even close. But you could definitely ride a horse. So you've listened to the show enough, you know where this is going, I'm guessing. Just saying, he's in good shape. He's an athlete. I'm pretty sure he could be

an Olympic athlete. For those of you who just tuned in, Colt has this fantasy i'm guessing just saying he's in good shape he's an athlete i'm pretty sure he could be an olympic athlete for those of you just tuned in colt has this fantasy that he could be an olympic equestrian because he feels the horse does 95 of the work you're all laughing when i'm making a million sponsors what's the uh iber what's the drug that they keep claiming everybody's taking for COVID. The horse. The horse. I know what you're talking about. The hybrid lectin or whatever it is. Yeah, Rogan's big plug.

They're going to be my big sponsor. Your sponsor. Perfect. All right. Well, we'll take all the sponsors we can get at this point, which is fine. So Cups gives you the big chance to start selling real estate with me. What year was this? Five years ago.

Five years ago. I've only been in five years. Five years. Five years ago. Yep. only been in five years. Five years. Five years ago, yep. So this, you know, I love this because we're going to talk about Airbnb, which is really what's become your niche, which is really, really good. And, you know, something I love about the real estate business is the best people at it.

And, you know, I always tell people the best people in this business in three years from now are probably not even in the business right now. Yep. And that's the thing I love about this is because you're never too late. Never. If you're smart, you can maneuver this business. You can, you can set this business up to do well in, and you can really, the sky's the limit. It really is. That's the best part is there's no, there's no cap on how much money you make. And I'm somebody who never made a lot of money. And then I started making some money and I loved it. And I was like, this is awesome.

Like, I'm going all out. This is awesome. This is awesome. I can go this dinner. I don't think it's something that's talked about a lot, where if you want nice stuff and you want to better your life, you have to work hard. And you can in real estate.

The harder you work, the more money you make. Yeah, that's a good point. And that's what I've done. That's a good point. So you started out 2012. The harder you work, the more money you make. Yeah, that's a good point. And that's what I've done. That's a good point. So you started out 2012. You're just grinding, doing. Yeah, well, so I started, well, 2016 was my first year in real estate. And so I immediately realized that my success was going to be from investing in real estate

rather than being an agent. You know, that's one of my favorite sayings is there's more money to be made in real estate than in real estate. And I learned that very quickly. And within my brokerage, nobody was investing in real estate. And I was like, why aren't these people 20, 30 years in the business? Why are they buying? Why aren't they flipping?

And I don't know. I still don't know the answer to that question. I do. I do know the answer to that question. I do. I do know the answer to that. The reason that most agents that get in the business don't get into the business of owning real estate, and a lot of people do that, is because of a couple reasons. Most people that come into the real estate industry have never owned a business before. And when you start in real estate, you become you incorporated. That's what you start as.

And that's a great point. People don't understand things like P&L management, budget management, taxes. These are things they don't understand. And in most cases, people are always most realtors in two, they're chasing an image. Yep. So they're spending beyond what they're earning, especially to the tax man. I mean, I would guess to me, if I had to put a number on it, I bet you 50% of people that do this job have a tax issue, are making tax payments of some sort. 50% of them are making. But what do you guess?

I would have guessed at least over 25%, which even 25% is ridiculously high. Okay, but I'm talking about the ages of work here no no i'm talking about your age i'm talking about the agents scattered across you know what part-timers everybody it always killed me is you got some successful people and they don't even go in the home i'm like how do you not own your own home right that kills me that kills me big time again you get back to the point of they don't understand that this is a business they don't understand that so they're not running it like a business. So they're always kind of behind the eight ball financially.

And then when you start getting things like tax liens and tax workouts and those sorts of issues, your credit is going to get demolished. Therefore, you don't have the credit to do this. So you've got a cash flow problem because you're always being chased by the tax man. Plus, you probably have damaged your credit by something you're doing. But that's the sad point of this, which is why I recommend people, when they get in this, one of the things that we train people here on, that are new, is business basics, man. Because a lot of people, and there's nothing wrong with this, but if you've never owned a business, if you've never run a budget,

if you've never run a P&L, if you've never run quarterly tax payments, that's a lot more important than look at this beautiful fireplace in the family room. You bring that up, and I'm a good example of it. Both my parents were teachers. And so they were, be a teacher, retire at this age, you get summers off. Sure. And that was embrained into my head from zero until I was 17. And then I realized that isn't what I'm supposed to do for me.

Some people like to do it. I don't. And so when I broke away from that, I exploded. I immediately turned into an entrepreneur where, okay, we have my real estate. I started a lacrosse business. I think of ideas and you could start this, you could do this, and you can incorporate it all into one. And so I bought my first rental house within the first six months in the business. I think of ideas and you could start this, you could do this, and you can incorporate it all into one. And so I bought my first rental house within the first six months in the business. Well, let's back up a little bit though, okay? Because you were coming out of being a teacher.

You had no experience with any of the stuff I just laid out. No, no, I had zero. So did you make an investment in learning that stuff or is that something Tim made sure that you knew? No, Tim didn't. Tim didn't teach me really any of the off-market investing. No, I'm talking about basic business principles. I have a cousin who I really rely on. He's like my guy who pretty much raised me and taught me economics business 101. He was the one who bought the condo for me.

Yeah, got it. Okay. So when I had the idea to get into real estate and he was like, yeah, that is a good idea. Go do it. Get your license. Call me. And then we'll start looking for investment properties together. And so that's what I started doing.

I looked in Henderson where I live in Sunridge and I found one. And I said, look, a little three, two. It was 250,000 at the time. I'm like, we could rent it for this. And he's like, let's buy it. So we split it and we started renting it out. And he's like, let's buy it. So we split it. And we started renting it out. And that's how I got started into it. So that first house, the first condo, right?

The first one, yep. Did he pay you the down payment or did he pay the whole thing? He paid the whole thing. He paid the whole thing. He bought the whole thing in cash. I didn't even know he was going to buy it. I just told him about it.

I'm like, my buddy, he lives in this complex. $50,000. He could buy a condo. Oh, yeah, 2012. Sure. 2012. God bless. We were planning snow in brooklyn new york and he's like i bought that condo i'm like in vegas he's like yeah and then my mind was like okay i'm gonna go live in vegas i'm gonna ask him to live in that condo and so i did well i don't know if i don't know if you know how i got in real estate but when i first got into the business we were doing condo conversions right okay This is during the boom time of 2006, 2007.

And we would go out and they would take, buy apartment buildings. They would renovate like 20% of the units. And then we would go to these big real estate shows and say, hey, you can buy a unit. Do you want to buy one of these? Or look, these already have tenants in them that are already paying rent. They would already buy the ones with tenants in them, even though they were not renovated. Got it. That was the hustle.

It was a company called Sunvest that was here. Unbeknownst to me, that was a hustle. I just, you know, bright-eyed, new in real estate. This is how I thought it was. And it's funny. We were selling these units in Vegas for like $327,000 for the three twos, like $327,000. I was selling those same exact units in 2011 as an REO agent working for the banks for like $35,000. It was crazy.

I know. So I started like, I guess I started very early because I saw that part. And then I enjoyed Vegas even when it was down. I didn't notice. I didn't realize that it was kind of like a depression time for the real estate. I was having a blast doing, I was a 22-year-old kid having fun, just doing my thing, working, and just meeting new people here. I think that's the real estate. I was having a blast doing, I was a 22 year old kid having fun, just doing my thing, working and just meeting new people here. I think that's the best part.

And so yeah, I bought that rental and that was it. Life changed as soon as I started renting that thing. So what'd you guys run out for a month? What were you getting for it? At the time, 1600. Now we're almost at 2700. Wow. For a 50,600. Now we're almost at $2,700. Wow. For a $50,000 condo. It doubled in value. Oh, it smokes. Well, more than doubled in value. You paid $50,000. It's worth way more than that.

I was talking about the house. Oh, I thought you were talking about the condo. Well, the condo, it tripled. Okay. More than tripled. So you're crushing on that. You're splitting that with your cousin. Yeah.

Well, that was his. That was his. That was his agreement. He let me live in it for free. Got it. That was his property. And then we bought this first one in Sunridge and we still own that one together sunridge heights and so how many properties did you accumulate before the whole airbnb thing came around

um i bought 13 13 yeah 13 rentals so five years right, so let's talk about that. Because you're a dude at this time. So at some point you quit XS, right? Yeah, I quit. This was a blessing. How many houses did you buy while you were still working at XS? Just one, my personal house. Just one, the first one. Okay, got it. They laid us off.

They laid us off because they were transitioning part of the nightclub. And then they did a rehire. And I was like, i'm not going back come out i just uh loved real estate i was hooked so when you so when you got into the real estate so when you started working as an agent how like you're buying 13 houses how far below your means were you living based on what you're making commission-wise so i was making really good money at excess we were making about $1,000 a night cash every time we walked in.

So I was making really good money compared to being a teacher. But I'm a really good saver. I save my money really well. And so I bought my own personal house and I kept saving and saving and saving. I was like, you know what? I have my lacrosse business now.

I don't need to work at XS anymore. And then I saw the green light at the real estate and I'm like, okay, this is where, this is my future, what I'm going to do here in real estate. And so I just went all in on real estate. Were you BRRRR-methoding this? Were you getting your cash back out of the houses? What were you doing? No, what I was doing was I was finding investors in New York, where I was from, and I was calling all my friends, family, look, these houses are cash flowing like crazy.

The rental market here in Vegas, in my opinion, is the best market to rent, buy and rent houses. And so I just kept doing it. And I would partner with people, investors. I would say, look, I'm going to find the house. You put up the money or 50-50 split, and I'm going to run the rental. I run all my own rentals myself. I don't buy it.

I don't let anyone else touch them. And that's a little different from other people's model. Are you a property manager or just? Yes, I am a property manager, but I do my own. Just your own stuff. But you got the license just to be safe because it's nice protection. Exactly. Smart. Okay. Yep. So I do that and I manage them all myself and I've had great success with it.

So just to sum that back up, a couple of things I just ran by real quick that people might not know we're talking about. It's so hard when we get other real estate people in here that we start speaking jargon. And then somebody listens to us like, what the hell did you say? Let's break it down for everybody. No, no,

no. It's like the burr method. What we just talked about is essentially where you buy a house that needs a little bit of work. Yep. Right. Let's say you got to put 20% down. Let's call it a hundred thousand dollar house.

And if there's, if that exists anywhere, let me know. It doesn't anymore. I just use an even numbers to make it easy because the cult gets confused quickly. So no. So let's say I got to make it easy because Colt gets confused quickly. So let's say I got to put 20% down on a $100,000 house.

I put my 20 grand down. I buy it. It's a little beat up. I improve the house with about, let's call it $10,000. So now I'm $30,000 out. Now I get it reappraised. Yeah, refinanced. So now it refinanced out. So now the value of the house is $130,000 because the improvements that I made on it, I'm able to pull my original $30,000 back out. Essentially now I have the

house sitting as it is refinanced, putting a tenant in it with all my original money back out. That would be the BRRRR method. The method you're talking about though. So I didn't BRRRR my first five. You OPM'd buddy, which is even better. Yeah. My goal is to pay off my first five rentals free and clear for protection purposes of those things. No matter what the market comes in, up or down, doesn't matter. Doesn't matter.

That's my retirement. And so those within those five houses, I would be, I would be netting, I would be bringing in more than my mom's retirement as a T. I would just be doubling it. Just on the five hours. Just on those five. So OPM, for those of you who don't know, is other people's money. That's when you go out. It's one of the favorite words we use in the real estate business is you find a deal.

Like you said, you basically find somebody to come in, put the money up, you do all the work, and then you split the profits. Yeah. So I feel a little weird sometimes doing it like that. I always like to have my skin in the game too. Sure. Right? So I always usually have a little skin in the game.

Probably not as much sometimes as some of the other investors, but with my main investors, I always go 50-50. Well, if you look right now, OPM is the name of the game in real estate investing because who's the master at this now? Grant Cardone. Oh, right. Grant Cardone.

He's the best. Hey, we're going to buy. We're going to buy. All these units. We're going to cash flow. Don't buy a house send me your money that's what you do and yeah so he's the master smart guy with that yeah um i don't know i feel a little weird in my stomach when i'm always like i'm taking people's money but i'm not putting my own money too yeah so i always like to put my own just to be well it only sucks when your money goes out and then it never comes back. Right. Occasionally. That's happened to me a couple of times.

I think something to throw out there real quick is the whole Grant Cardone type of deal. If you start pulling money from people, maybe you're not that close with, you guys can be in a lot of liability when you start losing people's money. So, you know, there's a whole different thing on what people are based on as an investor. And so be careful with that. Like if you don't know these people, you might want to consult an attorney. Well, not to mention that, but I talk about it all the time. It's like, look, if you're going to go with OPM and you're going to go with people, you know, friends and family, if that deal goes south, you got to make them whole. Or guess what? You're

losing your friend and even go lose your family. That's your family. But if not, you might be in a lawsuit and get some, you know, there's, you can get in some real financial issues using other people's money that are not considered accredited. I'm pretty picky with my investors. I usually tend to go to people who understand real estate rather than other people who are not really accredited or advanced because it's it's it's a lot more difficult to explain to those investors rather than somebody like my cousin who is business savvy gets it to understand it could go bad but it's a safer play one of my favorite posts i saw my buddy steve sims put this up and he's like how you know you he's like the person he's like the client that you that you don want. It says like when they wire you the deposit, it's like,

I've sent you the, I've sent you the $10,000. No, the low ticket client. It said, I've, I've wired you the $5,000. It is my expectation that our working relationship will be fruitful. However, you know, I expect you to take care of my, whatever it is diligently, blah, blah, blah. And he's like the high ticket investor. are you 100k thanks that's it and you know what that's a great feeling if i called him right now and i said i need 50 grand he would not even question yeah it's done done done show me the house later and i think that's cool for me is i i got to that point where i'm comfortable even asking well but but here but here's the difference because you built a reputation and you have a track record of success with them that enables you to do that.

Well, we're going to come back in just a minute from the break and we're going to talk about Airbnb, which is why you're here. We've been talking about it. I don't know. Is it, is it nonsense?

No, I don't think it's nonsense. I think it's all five hottest guys out there. I'm trying to give a public service announcement. Keep your, keep your women away from these men. Exactly. Stay clear.

Back in a minute. Awesome. Hey, it's John Gafford. If you want to catch up more and see what we're doing, you can always go to the John Gafford.com where we'll share any links that we've things we talked about on the show, as well as links to the YouTube where youafford.com where we'll share any links that we've things we talked about on the show as well

as links to the YouTube where you can watch us live and if you want to catch up with me on Instagram you can always follow me at the John Gafford I'm here give me a shout back from the

break back from the break sitting here discussing real estate Airbnb's Colts hatred of John Stamos among other things. I mean, there's things that are important. Yeah, there was. What did we talk about?

Top five. Top five. Top five. I mean, I could go on. I'm sure you could go on. I mean, I imagine you kind of lay awake in bed at night just like thinking about all the men could take your wife. Who would steal my wife? Do you have like a hall pass you know how some married people have hall pass like oh if that

ever that person ever came yeah you're fine no i don't think i don't have that either i hear that all the time i'm like no hall pass i mean mine would be like shakira is so hot no i don't think we don't we don't have like a hall pass in there, but I think we both probably figured out like what the next day would be after that. Like, yeah, and then I can go here and do whatever I want. My wife's like, I can go to brunch.

I can do whatever I want. It's just, I'm sure we've all, it's more like fantasizing about what you would do randomly the next day than actually like sleeping with somebody else. Like what would I do? Like, I mean,

I'd probably walk around the house with no pants on just because I could. You know what's's so funny so my buddy who he runs a big fund um he's like god man you know it'd be so great i'm like what and i'm like thinking we've had some fun stories and he's like go sit up by a pool get blacked out drunk just us two and then be able to sleep in the next day and not have kids around he's like that would be like a dream to do you pretty much just described traveling with connell yeah pretty much what you just described i'm like sitting there like how bad is that that the dream is the just to be able to sleep a hangover yeah just well just yeah what's your what's your fantasy

to have no one call me that's all i know that's all i want just to hot down my phone not ring and not care for ringing at all. That's it. Wouldn't that be life? So we're back with Jason Griggs, my dude, good friend of mine, that has become an expert at this Airbnb game here in Vegas, which is exceptional in its own self because Airbnb is incredibly difficult to do here in Vegas. Like, if you're listening to this, like, why should I listen to this guy?

I'm afraid to ask him questions. I don't want to get him in trap no no no no they're all legal you can't ask you like how much you bench because you're in good shape what's your bench how much you squat yeah that's what we're going to talk about no no no but but his is all his are all legal so if you're another part of another part of the country, it's really an amazing business plan. A lot of guys I know in real estate are leaning into this business plan in other parts of the country. And it's definitely paying off. So back to you picking up the story we left off. You've got how many rentals was it, 13 or 16?

Yeah, so I have 17 total. 17 total. I have six short-term rentals. When did you start the short-term rental thing? When did that come up? When did that idea come up? About a year ago. About a year.

About a year ago, I got into it. It was presented to me by someone in our brokerage who created a system to manage him. Which is Sean Cunningham? Yeah, Sean Cunningham. Great dude. Great guy. And super smart, sharp.

And he showed it to me. He showed me once, and that was it. I was like, whoa, this is some serious stuff. This is some serious money. I can do this yeah and i was surprised he wasn't really buying them for himself he was just he created the systems to manage it for other people yep and then i went out and i just bought just went crazy just went crazy i bought as many as i could so walk so walk me through okay let's before we talk about the system let's talk about the money so you've converted some of your existing

rentals oh i bought all all I bought all brand new ones. Okay, cool. All right. Yeah, I got it. Okay. So I bought new ones based on the systems he created of what will work and why. Single stories, four bedroom, three bathrooms with a pool, not near neighbors for noise purposes.

Right. So not near neighbors, that's a clutch. Correct. So obviously you have to go through the HOA as well to make sure that they- No HOAs. No HOAs. No HOAs. No HOAs the HOA as well to make sure that they- No HOAs. No HOAs. No HOAs. No HOAs.

Stay away from HOAs. Yeah, stay away from HOAs. So you want them a little bit spaced out, at least four bedrooms with a pool. Now, for example, just don't know, your average house in that box that you purchased, what would they rent for if you rented them traditionally on a traditional basis? How much a month? So I think they're about four times a normal rental, maybe five on some of them. So $2,000 a month, regular rentals, they're going for about $10,000 to $12,000.

So you're getting four to five X a month. Four to five X a month. Colt had just skipped. Wow. That's crazy. Just go back real quick. HOA guys, you got to read through your documents. A lot of HOAs have 30-day limits, stuff like that.

So just a little, sorry. Yeah. I mean, owning a house in an HOA is an issue anyway. I couldn't imagine doing a short-term rental within one. I mean, the neighbors and the people within HOA, they're very easy. There's no way. So here in the Vegas Valley, if you will,

so yours are all in Hendo, I'm guessing. They're all in Henderson. They're all in Hendo. Because Henderson allows short-term rentals. Yeah, so here's a cool little stat. There's about 14,000 Airbnbs in Las Vegas. There's only about 400 that are legal. How?

I think it's even less than that. Wow. So what was the process like for getting these things legalized? So you need a license. You need a short-term rental license. You have to take a course course and then you have to apply for the license. Who's teaching the course?

It's a college course. Okay, is it? Yeah. All right. Dixie State University. They do it. Dixie State? Yep.

This woman created a whole college course. Is this online? It's online. Okay, so Dixie State University. So Dixie State University. Do you think I could get some credits from Hooters University if I did that?

Dixie State's a real university in St. George. Oh, yeah. It's a party school. Oh, is it? It's a little party school in St. George. So it's cool. It's a real one. It's not your Hooters University if I did that? Dixie State's a real university in St. George. Oh yeah, it's a party school. Oh is it? Okay, all right. So it's cool. It's a real one. It's not your Hooters. Hey! We don't give a hoot about your Hooters. Listen, listen, dingy. I didn't say dingy. You did say dingy. You emphasized the g. How would you say it? Dingy, dingy, dingy. No g. Just dingy. Dingy. See, you're still doing it. I can't talk to you Dingy. No g. Dingy. Dingy.

See, you're still doing it. I can't talk to you anymore. The first G is really strong. Back to you. All right. So you go to Dixie State University. I take this class, and the teacher owns them all over the country. She owns about at least one in every state.

So she's got it clocked. She's got it clocked. So the reason why she started doing this, she did this right from the beginning when it first took off 10 10 years ago she likes to travel and she loves to go and stay at her houses in every state and she's producing income from all over the place and um the reason why i got started in it was because i saw everyone was coming to visit didn't want to always stay in the in the hotels there's not really a lot of hotels in that southern part of henderson the fiesta closed and everyone's coming for the lacrosse tournaments i'm like if i bought houses and rented them out to people are you

promoting them to the lacrosse tournaments i am soccer see it all it's cold it all comes together all comes together so it works all right so good man. It all comes together, so it works. All right, so go ahead. So you see a problem, and you want to fix the problem. That's where a lot of businesses get started, and that's kind of the way I went with it. You find a need, Colt. You find a need.

You've got to find a need. That's what happens. I found it, yeah. It's Colt's delicate for a need. So Sean showed me the business, and I was looking at his properties. I'm like, I could remodel these and make them, I could blow my trick.

Yeah. I could blow them away. And so I did one and he was like, wow, this is, this is going to fly off the shelf. Yeah. And we kept doing it.

And now I'm like, I just bought a 9,000 square foot mansion, which is the biggest one in Henderson. Yeah. See, that's, that's what a lot of my guys are doing is they're buying the big bad boys. Yeah. But they're not legal.

Right. So I officially have the biggest one. No, not here. I mean, not here. This is in other places they're doing this. And I go to Arizona and I stay in Airbnbs and I love it. But yeah, so I house people who want to come to the bachelor parties for the business trips, whatever. And I think my houses are.

Where'd you get 9,000 feet? Where is it? It's off of College Drive. Okay. Oh, yeah, down by those churches. Yeah, yeah, yeah. And this house is like, it's got, it was Slipknot's house. Got it.

The singer of Slipknot. Got it. And he built this basement, and it's like, it's a whole compound, basketball court, volleyball court. I'm like, if I'm coming on vacation, self-contained, this is, there's nothing around. As much noise as they want. Go crazy. So we're remodeling that one now.

That's going to be my biggest project. That's awesome. That's going to be, that's going to be a big one. That's awesome. Yeah. Yeah. So 9,000 feet. So what'd you pick that up for? If you don't mind me asking.

It was one point. It was 1.4 million. And what are you going to put in it? We're going to put about 170 into it. Okay, got it. All right. And then we'll rent it for, we're hoping, 2,000 to 3,000 a night. Nice.

So what's the formula? You said four bedroom, three bathroom with a pool is what you're looking for. That's a necessity. Yeah. What do you, so I've heard a lot of the guys I know that are good at Airbnb say, look, you got to go this thing over the top. You try to make it interesting.

You don't try to make it look like a home, make it look like a cool hotel room is what you try to do. Do you have a designer you work with on this or is it just a gut? I have a great contractor who I really trust. Nick Marietta. There you go. He does all my stuff. Yeah.

That's great. And I love him and he's changed my business twofold where i don't i don't i can't even nail it in a hammer g-rock he does everything he knows what i like designs it he knows what other people like and so when you're scanning on these airbnb lists i don't know dude i gotta tell you i gotta tell you what nick i don't know how he has time to do everything he does it's crazy and does it well i mean he's got a reputation with what he does a great job credible reputation he's turning away a lot of business now yeah i can imagine i got in with him at the right time but yeah he's turning away a lot of business and he's expanding it to others i buy houses from in kansas city now yeah i i'm expanding this into

have you been to kansas city like two houses I haven't been there personally But I'm doing an Airbnb there A lot of moisture Yeah A lot of moisture In some of those homes Different Be careful Gotta give it a shot

Gotta be careful Yeah I'm buying some Of the markets too And I looked at Kansas City But I didn't like the moisture It rains a lot It's cold Yeah a lot of moisture

Anyway But yeah But no And Nick's got a jet now He's got a jet I've never seen him He invited me But I had a kid You gotta go on the jet You gotta go on the jet I. He's got a jet. I've never seen him. He invited me, but I had a kid.

You've got to go on the jet. How do you not go on the jet? I haven't been on a private jet. That's when I know I made it a little bit. Is it? I think so. That's the line? I think that's impressive.

To go on a private jet. It is. It is impressive. So back to the Airbnb model. We got it down. So I buy this house. I figured it out. I've renovated it.

I've made it cool. Yeah. I mean, when it comes to furniture, are you going like Ikea? Are you trying to buy indestructible stuff? What are you trying to buy? I've gone. I would say that's one of my bigger issues right now is you want to go cheap, not too expensive.

Interior designers are expensive. You want to go kind of middle of the road. I think the Ikea stuff is fine okay um but you want to make it like a nice big couch sectional couch with some with some fun stuff around it my big thing is games i'm a big game guy when i go to house i want darts i want pool i want beer pong i want pool basketball so that's i put a lot of those type of things rather than the nicer decorations. Got it. Cause nobody cares about,

you know, if you've got a van, if you've got a van go on the wall, they want to play pool. Right. That's what they want. And you know, we're targeting bachelor parties,

bachelor parties. Those are the things that those people that are going to come use the house. So build a house in a way or design it in a way that it's going to be, it called it, it cultivates entertainment. Fun. If you will. It's a fun house.

That's what we want. Would you go strip or pull on one? You know, we were thinking it on the San Gabriel one, but there's going to be kids there sometimes. So we were thinking about it. We're probably not going to do it. It's tough. Are you not supposed to have strippers around?

No, Colt. You're not supposed to have strippers around kids. It was talked about, and we decided not. It's like there's a playground back there. Yeah, that's what you... I think you can't go stripper pole and playground. I think it's a little weird. It's like, some say potato, some say potato.

Some say dinghy, some say dinghy. But there are. There's a lot of stripper poles in these Airbnbs. There you go. That's what it is. All right. So I've got my house renovated. I've got it done.

I've got it set up, and I'm going to put it up on Airbnb. Now you need the license. I need the license. I get this. The license. You get this. I've got it done. I've got it set up. And I'm going to put it up on Airbnb. Now you need the license. I need the license. I get this. The license. You get this license. You've got to apply. So I've gone to Dixie State College.

You go to Dixie State College, and there's a map on City of Henderson that you have to check to see. If I rush a fraternity, will they let me in? No. This is like going into the police academy. It is. Okay. I'm with you. And you have to apply.

Make sure that your house is not a thousand square feet within another house okay so you and i neighbors we both can't do it so that's the rub that's the rub so you got to make sure that there's not enough is there a place where you can go and search for this or you just yes there's a whole city of henderson short term registrar yep okay search registry make sure you apply every year you have to apply for this license okay they check and they come and they make sure everything's up to code your fire safety your pool's okay pool alarms sound alarms all these all of those rules that they put into effect to make sure that it's not making you jump through hoops like that in kansas city no no there's no rules

so with the airbnbs with short-term rentals, that's the thing. You want to find a good city to do it. Yeah. And I believe Henderson's a great one. But there's a lot of work involved. Well, let's get back. Now we're getting to the work. Because now I've got my license.

I've got my house. The mix is done. I'm getting ready to put it on the site. Obviously, you want to have professional photographs taken. Just like I'm listing. I'll say this, Sean. The hardest part is you've got to buy this house, right, with the risk that you put it on the site. Obviously, you want to have professional photographs taken. Just like I'm listing. I'll say this, Sean. The hardest part is you got to buy this house, right? With a risk that you might not get the license.

Ah. Okay. That's where it makes it. Because I bought two and I got denied. So are you running the cash flow models as standard rentals too? Yes. You have to. To be super protective or flip.

So the two that you bought that you didn't get a license why didn't you get a license because somebody in the neighborhood applied before me oh you didn't know that because you can't see the pending you can't see anything pending see the applications that are going to the city you can't it's a i flipped one and i kept the other one it's kind of like if you're at a party colt and your wife goes to the bathroom you don't know if john stamos is in there you have no idea if he's in there john stamos could the bathroom, you don't know if John Stamos is in there. You have no idea if he's in there. John Stamos could be in there. You don't know.

I don't think my wife would like John Stamos. Really? I don't think so. Can we call her and ask? I mean, kind of. I'll call her and I'll call her. I think, yeah, we've never done this on the show. I'll just put her on speakerphone.

You'll be able to hear her. Put her on speakerphone. All right, keep talking. Yeah, we're going gonna call colt's wife and ask her she likes john's famous and we'll go from there and uh and yeah so you got you got the license you gotta hold you gotta pull it right to the mic though which comes on oh she's gonna hang up on him for sure put her on speaker.

You're live here. Put her on speaker. Don't say nothing stupid. Don't say nothing stupid. Now you're on speaker. There she is. Would you leave me for John Stamos? I said no. I think you would.

No? No. Wow. Okay. That's a great way. What about Leonardo DiCaprio? She's going to say no again. But you know what?

You could throw out like some, who would you leave me for? Who's your top three? Tom Hardy. Tom Hardy. See, she doesn't think about it. She comes right up with it. Yeah.

That's it. So just Tom Hardy? I can't really think of anybody else right now, but yeah. See, what about those guys that come down crooning the Spanish music? No, never. None of those guys all right no okay all right

good talk good talk thanks a lot told you i know oh my god she's gonna she's gonna beat you senseless when you get home now i know who i need to look out for that's right tom yeah tom hardy could be at the fire isn't tom hardy no who am i am I thinking of? He's Bane, right? Bane. Bane and Batman. Oh, Batman. I don't watch any of that stuff. Neither do I.

I just know that. Do you ever see Star Wars? No, I'm not a Star Wars guy at all. Have you ever seen it? I've seen it. Yeah, because who hasn't seen a Star Wars movie, right? What kind of total psychopath would never have seen a Star Wars movie? I've seen it.

I'm just not into that. The comic thing. He's never seen a Star Wars movie. Oh, really? Not into the nerd shit stuffs i'm a sports guy he thought he literally thought at one point the guy's name was dark vader that's what he thought and he believed that but is that a better name for a villain yeah oh all right jesus you're just jason you're making this worse you're just you're just you're just you're gonna make it worse you're to make it worse. You're going to make it worse.

All right. So I got my license. I got, I got this done. We get it posted. Yeah. We get that done. Yeah.

But let's back. Oh, so the houses you got burned on, cause you can't see the register. You gotta be careful with that. You gotta be careful. So we, luckily Nick,

he saved me on, on this one where he's like, we're going to remodel it, but not totally go all out just to get you out just to get me out in anything yeah that's one of my favorite sayings in real estate in business is everybody buys their refrigerator once in a while and uh the scale of what you how big of a refrigerator can vary yeah i got lucky on that one because the market just shot up it was in april yeah three months to august and yeah i we did okay we did well on the deal that's good i got to thank

him for that though he really helped me yeah that's good. I got to thank him for that, though. He really helped me. Yeah, that's good. While he's flying in a jet, I think you're probably thinking about that. We're helping each other. He helped me big time. That's how it works out.

So now I get it up. I get it posted on Airbnb. Yep. And for those of us who have no idea, so I've got a calendar I put up, and I put my availability for the house when they can check in and check out walk me through managing this bad boy for me so I'm not involved really

in the managing of it I let Sean do everything so he physically takes care of it it is such a science this business to how much you're charging per night, when to list these prices how much to charge for replacement towels like all

all these crazy things you would never think of because you're basically running a hotel yeah and people break things and then they cancel and so my job with this is to find the houses yeah that's what i'm good at i'm good at finding these things i'm good at getting them on the contract and buying them well you know i've heard heard from other folks that I know in there in my circle that do a lot of this, that what they want to do is they want to have somebody essentially, they try to hire like the house cleaners that are available 24 seven, seven days, and they become kind of the de facto house manager. Yeah. Yeah. You need those people to run this business for you. And so Sean has all these systems created that I don't even care. How he did it, what's it like on the back end of things?

They work. I've seen them work. I trust that it works, and I trust him. He runs it for me as a property manager. So literally as this gets going, because if somebody checks in the house, I mean, we've all done Airbnb at this point, so if you have me living under a rock. But if there's no hair dryer, if there's no this, you make a phone call to the house manager or whatever, and somebody's got to run that stuff over there or go pick it up.

And I know guys that have hundreds of these, and they do it through Airbnb arbitrage, which is a whole different thing. That's a whole other animal. That's a whole other animal. And for those of you who don't know what that is, essentially that's where you go in and you rent a property from a homeowner. And then you essentially just Airbnb it. And how they kind of get away with it is, and it's pretty slick actually. It's a very slick model. I think more and more owners are getting savvy to it.

But I think how they present it, this is one of those things where I tell people that there are some lines, I think, where you can be a licensee in the things you can say, and then you should not be a licensee if there's some things you're going to say. This goes into that, you probably shouldn't be a licensee deal and try this, the arbitrage game. I don't think that that game is going to last. Here's why. Because the city of Henderson, we pay a tax of our profits to the city. With those people, they're not paying a tax to anybody. Oh, and they're going to end up leaning the properties. Well, the cities are going to catch on. And they're going to be like, we're missing out on all this money that could be made here.

And all these people are doing this kind of under-the-radar type deal. And they're going to want their cut. And once that comes in. The IRS. Because you can't arbitrage here in Vegas. No, no, you cannot. You cannot. There's no way to do it because for your license, you need to own your house. Yeah. Well, for these guys, what they're doing is they're going to the owners of these homes and

other markets, not this one. And they're saying, you know, Hey, Mr. Home seller, um, we bring in a lot of corporate housing. We do corporate housing. We bring in executives here to train and this and that. Would it be okay if we used your property for corporate housing? And they sublease it out. And then they do the Airbnb. But they said, you know, then there's a couple of rubs. I don't know if you follow this. Do you even have anything to do with the booking of your property?

Is it all Sean? All Sean. Okay. Because like these guys are like, we will not book to anybody with a local address. That is in effect with ours. Absolutely not. If you're local, we're not booking because there's a reason you want to come

wreck my house and not your own. Correct. We won't do that. And they look for party sizes and just different things. They look for the age of people renting them. There's a lot of- You're vetting your tenant

just like you do with a regular rental. Well, and trust me, well, no, no, because some of the stuff they're using to vet, you could not use to vet them at a regular. You can't say, well, you're a 22-year-old guy. I'm not going to rent to you because that's a protected class.

But again, that goes back to in that arbitrage game, you're walking a little bit of a fine line as to what you're really going to do and what you're really doing. So if you have a license, you're going to get zapped with that. If you don't, you're not. Yeah, it's being promoted like they teach it. You could buy a course doing it, but that's not the real business of Airbnb. Yeah, the whole thing. You can buy a course for it, but that's not the real business of Airbnb. Yeah, the whole thing.

You can buy a course for everything. So you use Sean to handle all your stuff. What's his cut of what you do? Every house is different. It's based on the house size. The bigger ones are a little bit more. They're more work. And then we have our team, his team also, that handles the day-to-day operations.

And he's just like a P&L for a business. He's just billing service to that. It's ran so smooth. It's been where you're very hands-off. You can be involved if you want to. And I choose to let him handle it. Yes, of course. Anytime he can be hands-off for five.

Because here's the thing. As soon as I heard 4X, 5X, my immediate assumption was, well, here comes the work. Because like anything else, the less passive an investment is, the more you're going to make. my immediate my immediate assumption was well here comes the work yeah you know because like anything else that the more the less passive an investment is the more the more you're gonna make but but so i'm waiting for the okay yeah i gotta run towels over there at midnight no i gotta like the pool heater won't work i gotta run over there and deal with it i feel like his fee is very fair

what what percent if you had to average it i would say around 20 to 22 22 percent of your gross goes into that goes into that yes so you you 22% of your gross goes into that. Goes into that, yes. So 22% of your gross goes into management, which I think would probably be about the same if you hired cleaners and did everything yourself. Probably about the same. Yeah, I mean, I've thought about it.

Like, if I did this myself, but then I'm like... No, but why? Why? Why? There's no reason. I can't go to five different pools at one time on the break. Yeah, 22%. I left a professional handle.

Yeah. I would say that's- I'm very fine with that. I would say that's a very smart way to do it. So 22% goes to that. What percent goes to taxes? They take about 13%. Okay, 13%.

City of Henderson. All right. What about the booking fees? We charge the tax to the tenant or the visitor that's what we call the biz a pass-through fee yep pass through i'm looking that's tom hardy's kind of you're still you're literally sitting we're talking about airbnb money here and you're obsessing over the dude that's gonna steal your wife i maybe i'm not her type tom hardy's a badass

Alright well I'll give her that Sorry to cut you off I actually met Tom Hardy at XS Did you? It did Oh great So now he comes to Vegas He comes to Vegas

And he's a big dude Is he? I'd kick his ass You know what Here's a text I just got Never mind on Tom Hardy She passed on Tom Hardy already? In English

I couldn't deal with the accent. Sorry, Gavin. That quick. She passed it. There you go. You're back in the bag. We're talking about making money.

What are we talking about? Where were we? I'm sorry. I'm sorry. What a Tom Hardy. Yeah, I got depressed. My life was over.

My wife's leaving me. Sorry, guys. All right. So 13%, but it's a pass. Your tax goes from goes from there so your your percentage net net on what you bring in every month is is pretty high pretty good it's it's a good very good return based on the last part of the utilities yeah and how much electric they use water gas all those things would you say you're still 70 75 right it's a little less than 75 around 70 mark there you go that's great no it is great and you've got um in obviously you have their credit

card through the system so i think it's damaging it does that everything's damaged uh they get charged and sean handles that that's how the coin too i'm never running out of gas for refunds you guys have nightly minimums like four yeah so that's the whole that's the whole science behind this business is everyone's like because the weekends are the yeah sure so what he's figured out is where you charge a little less for the weekends but you get them that fourth night you get them on that thursday or you get them on that monday and it's like you get them a whole extra day and so there's a whole game of science that goes behind figuring that out. And isn't there like a, there's a program where you can pull like the hotel rental rates and see what

they are. Yeah. And then there's the air DNA got released. That's pretty accurate. They show you every Airbnb in Vegas and Henderson. So you know where your competition is throughout the nation, throughout the nation. And he's constantly moving and flexing that pricing.

Yeah. And, and what's, it's what sucks is that if you want to look at Vegas as a whole, Vegas and Henderson, you have to pay per city. It's not just one area. So you have to pay the $60 a month for Vegas, and then the $60 a month for Henderson. But Vegas isn't open yet.

But it's coming. You told me that. You said it's coming. It's coming, which I was shocked. It's coming. I was shocked. It's just, they made a state mandate about it where the hotels,

they don't care. They want people to, to have these things. Oh, I was, I was absolutely shocked that that got done. Are they going, are they going to do it the same way Henderson is,

or are they going, because they started out allowing it with licensing and that shut down real quick. Yeah. Yeah. They're, they're, I like the city

henderson model i think it's good a thousand feet you know and it won't get oversaturated and they're cracking down on the illegal ones so all those people who are crushing over these past few years they made their money but now they're kind of sweating a little the fines are ginormous to a thousand bucks a day i saw the one guy in rancho circle like years ago got hit with a hundred thousand dollar lien yeah yeah because they give you a warning and then if you keep doing it they bang you zap you oh goodness yeah that's terrible well dude fascinating man absolutely fascinating and i'm telling you if you are in the house owning game you might want to take a look at a getting the air Airbnb deal because four to

five Xs, that's ruthless. Yeah, it's great. But I think the teacher of the course, she had it right where you can use these things to your advantage and you could help family members out who want to visit. You could essentially run the business however you want to. I think that's the coolest part about it. Yeah, because I mean, you look at like my situation at the beach, like we own a house at the beach. Um, we own it with several other people and there's like seven of us. We didn't want to, we didn't want to run it out cause it's,

it's, it's, it's a nice house. It's several million bucks for this house. And, we didn't want to run it out, but now I'm kind of like thinking, yeah,

maybe instead of money going out all the time, maybe money's coming back in. And a lot of guys that I hang out with, they're buying multimillion dollar properties in Arizona and different places they want to go just because it's what they want to do. I think once you get over the fear of like somebody else in your house,

like I know some people have that, I would never sleep in the same bed. Like it's a bed, you change the sheets, it's okay. But that business is- Sleep in a hotel. Well, you sleep in a hotel. Right, exactly. It's the same thing.

The money and the business part is why I'm doing this. Yeah, no, it's crazy. Well, dude, hey, man, I'm proud of you. I think it's awesome. Thanks, John. I wish more agents would jump in and work in the business instead of just around the business. If you're listening to this, man, and you're thinking, why am I not doing that? I'm a real estate agent. Why am I not buying property? First things first, man, start with the basics. Get your house in order, pay your taxes, learn how to run your business like a business, start saving money, live below your means, start investing. And then you can be like my man, Jason. Yep. I'm a product of it. And dominate and dominate. Well, anyway, guys, Jason, thank you so much for joining me. I'm sorry you got upset. I'm sorry. No, I'm happy.

She said no. She's back. Maybe she's lying to you, but I'm sorry no I'm happy she said no she's she's back maybe she's lying to you but I'm just gonna leave it at that well if you like what you heard today man make sure to tell a friend if you're listening to us on on over on the

Apple give us a review give us a five star give us a comment it's lovely and yeah if you like us tell a friend if you hate us tell two

because it doesn't matter if they're talking good about you what is it, Colt? As long as Tom Hardy's not there. As long as Tom Hardy's not there. See you next time. Hey, it's John Gafford. If you want to catch up more and see what we're doing,

you can always go to thejohngafford.com. We'll share any links of things we talked about on the show as well as links to the youtube where you can watch us live and if you want to catch up with me on instagram you can always follow me at the john gafford i'm here give me a shout