KGCI: Real Estate on Air - Mastering Real Estate Contracts: Georgia Strategies, Financing Tactics, and Portfolio Growth Secrets for Success

Episode Date: August 30, 2025

Friday Focus is your weekly mini-series from KGCI Real Estate On Air—a deep dive into one theme, broken into tactical, easy-to-implement episodes. Every Friday and Saturday, we unpack the strategies, scripts, and systems agents use to win more business—without the fluff.Catch every episode in the series to get the full picture, and put these moves into play by Monday.SummaryThis episode is a deep dive into the foundational skills required to build and scale a successful real estate business. The discussion goes beyond the basics of finding deals and provides a comprehensive guide to understanding crucial legal and financial components of a transaction. You'll learn how to navigate Georgia-specific contracts with confidence, master creative financing tactics, and strategically manage a portfolio for long-term growth and wealth.Key TakeawaysNavigating Georgia Real Estate Contracts: Learn the nuances of Georgia's real estate contracts, including key clauses and common pitfalls to avoid. The episode provides a clear breakdown of how to write offers that protect your interests and ensure a smooth closing.Creative Financing Strategies: Discover how to buy properties without traditional bank loans. The discussion explores powerful financing tactics such as seller financing, subject-to deals, and hard money loans, which can open up opportunities in a competitive market.Building Your Portfolio for Wealth: Understand the difference between buying properties and building a portfolio. The episode provides a blueprint for a long-term investment strategy that focuses on cash flow, appreciation, and leveraging your equity to acquire more assets.The Power of Proactive Due Diligence: Learn how a thorough review of a property and its financials can save you from a costly mistake. The discussion emphasizes the importance of a detailed inspection period and understanding all costs, from repairs to holding fees.Topics:Real estate contracts GeorgiaCreative financingPortfolio growthReal estate investingSeller financingCall-to-ActionReady to take control of your real estate career? Listen to the full episode on your favorite podcast platform and start building a portfolio that lasts! Ready for more? Subscribe to KGCI Real Estate On Air and grab the Always Free Real Estate On Air Mobile App for iPhone and Android. Inside, you’ll find our complete archive, 24/7 stream, and every Friday Focus mini-series—ready when you are.

Tactical, focused, just like a top producer. Here's a sample from this week's Friday focus on KGCI, Real Estate on Air. Welcome to the Financial Freedom Mastermind Group podcast. Here we're all about breaking free from the 40 to 50-year work grind and accelerating our journey towards financial freedom. Join us every Wednesday at 7 p.m. Eastern as we explore different types of investments that can fast track your path to financial independence. We serve as a hub for connecting with fellow members during our sessions so you can share

successes, ask questions, and keep the momentum going. Good evening, everyone. This is me, he Adewaleigh, host of the Akava Home Financial Freedom Mastermind podcast. And I'm excited to be joining you on this Wednesday, August 7th. We are officially really kicking into the back half the year, right? When he talked the last time that we met and had an interview with Nasir Young, we got to hear about his story. And tonight's there to be more of an open session. And I actually had a couple of topics that I want to code tonight all around the Georgia contract and like how you can rework or well estate deals. And so kidding this thing will also be an open session, so please feel free to jump in, ask any questions, send anything through the chat,

and we will definitely address that. But we want to take a deep dive session into contracting and how to work this in your favor as we're going after deals and how the Acabah Home team uses the contracts to protect our clients. and put the other position to win even bigger. And so before I can jump into that, it's been a while since I actually introduced a full team. So I'm going to share my screen here. And what you're looking at right now is the at Kappa-owned team as it stands today.

And at this time last year, I want to say we had about six members in the team. We are now at 13, and we actually have members in Florida as well as Georgia. And so we're covering the whole state of Georgia as well as Florida. and we are helping a lot of investors get closer to financial freedom, as well as helping regularly retail buyers and sellers either disple of their house or getting to their dream home. And so if you or if you are looking or we know anybody else that's looking to purchase a home or sell a home, feel free to reach out to the Akava home team. We have a lot of referral partners that we work with across the state, and we are personally

servicing customers in Georgia as well as in Florida. So that's a major upkeep announcement. And the reason that we're jumping in the contracts today is because tomorrow I'm actually leading a session, an internal session with my team, to walk through the contracts and how we can use it in our favor to make sure that we're getting the best deals for our clients. And so a couple of disclaimers up front. One, I am not a lawyer, nor do I play one in TV. And so please verify all this with your real estate lawyer.

I'm just going to speak of anecdotally about some of the ways that we've used this contract for Georgia real estate to help make deals even sweeter for our clients. And then I'll also show some examples and explain some of the concepts behind these things that we have in that Georgia hot track. So again, if you got any questions, we'll free to jump into the chat and or join live to ask, then we will go from there. When you look at the Georgia real estate contracts, right, the first thing that I think about is how can you be protected? And there's really three protections that come to mine. The first one is due diligence.

And due diligence is the strongest protection that you have when you enter into a real estate or residential estate. Due diligence period with our team is typically between five and 12 days unless you're working on a flip, which at times flip due diligence could be zero days. You could add one day, you could have three days, but it's significantly less because of an property as is, and you should be getting it happily discounted so that you can go and make the profits after fixing it up. And so during due diligence period, you can leave.

literally walk away for any reason and get your earnest money back. And so taking a step back, earnest money is typically 1% of the purchase price. And so if you're buying a house for $100,000, harness funding would be a $1,000. And that's what you put at risk with the closing attorneys to show the seller that you're serious about buying your house. Otherwise, people would say, yeah, I'll pay you whatever for the house, put it under contract, and then not execute without any penalties that secure your deposit for earnest money actually puts you to have a skin of the game and it allows a seller to feel more comfortable on you to go under contract of that property. And so there are even diligence.

You can walk away for any reason. You can literally wait that and say, hey, it's raining outside of the sunslash, I think I'm going to exit this contract and you can get your full earnest money back. That's your first protection. Your second protection is financing contingency. we typically set this at 14 days. And what this does is, if you get pre-approved of one of the lenders that we work with,

we're pretty confident that you're going to qualify for that long because we've vetted a lot of lenders. We've worked with a lot of lenders. We've found the one that execute and get it done. Now, if you work with a random lender, right, who's pushed it to the max, and all of a sudden, they're wearing just some snags. Once they see the property like, hey, you can't approve this,

then if they send us a letter within 14 days, we're able to use that to present to the seller and get your earnestly whack and get out of the deal as well. That's financing contingency. And the final piece is the appraisal contingency, which protects you on the value of the home. And so when you look at the appraisal dependency, when you look at properties, especially for investors,

what we're focused on is running the numbers, as well as the neighborhood, to ensure that this is going to be a solid investment over time, and that it's going to hit the message from the numbers that investors are looking for. What our team is coached to do is not a number, necessarily to try to become an crazier, right? We do run CMAs, but we're not a crazes.

You don't know what that are crazy is going to feel like on a given day, and if they're going to appraise a high, low, or somewhere in between. But what we do do is make sure that in our contracts that aren't flips, that we have an appraisal contingency built in, typically the 21 days, so that if the home appraises low, we have the ability to renegotiate that with the seller, right? And we've negotiated a lot of bills where we'd be able to get the seller to reduce the price. because we're so close to closing, and that in turn, they deal with some great deal.

Or if the seller's unwilling to budge on that number, we can walk away and take the earnest money and still get retarded. And so that's your appraisal tendency, and those are those three top protections. Now, one of the things that a lot of people are selling to explore and we're educating our clients on is the use and the reason behind seller credits. And so when you look at your closing costs, if you're buying that primary home, your closing cost should be anywhere from, you know, should you roughly about 3%, right? But if you're buying an invested property or anything in between or like a vacation home, it's usually between

three and five percent. So that's a lot, especially when you factor that in on top of the down payment that you're giving. Let's say that you're putting, you know, 20% down on a $100,000 house freezing math. That's 20K. You've got to come up with another 5% potentially, right? Another five grand to put down just a cover closing cost. that's not going toward the mortgage that gives that nature. And so one of the things that we've done as a team is we prioritize trying to get these seller credits toward closing that they can use to knock out some of these closing costs. And if we get significant amount, we could potentially buy down the interest rate for our clients

to help them lower that amount out of pocket up front, right, which essentially increases their cash on cash return because they had less money in the deal. And so when you look at the government and what's the, they're trying to incentivize, they make it very clear. They like homeownership because, one, it's helping with the housing issue. It means that a different homeowner who's going to live in that house has now purchased there and give you another taxpayer. And so that's going to use all the community resources and pay to different vendors that are around the neighborhood, which overall helps the overall kind of be the neighborhood and things that nature, right? And I

claim that workers don't or investors don't, it's just a homeowner is going to use a lot more the resources in the area to help that neighborhood. And so the way that federal lending and things that nature works is they've subtly incentivized homeowner insurance. And I'll give it to you a lot. When you talk about seller paid credits, there's casts and limits on how much a seller can assist you with if you negotiate it. And so if you're looking to buy a primary or a secondary loan, if you put down less than

10% as a down to pay it, you can have a higher than 90-10 loan to value, you could only get a matter, and you're going to live there, you could only get a mass of 3% toward close. And so in that 100,000 example, you get 3K toward closing. You'd have to pay the other potential, you know, 2K out of pocket. If you were going to do more than 10% between 10 and 25% down, you can get it up to 6% toward closing, which is awesome. That means you would cover your closing cost in that scenario and have a thousand to potentially buy it out of main share, 4708 in the new limit.

And if you have a 25% down payment or more, right, then you can get up to 9% in seller credits, which now you're really good. By that you're really doing well for you're able to put down 20% percent on the property and you negotiate 9% to work early. Now for an investment property, it doesn't really matter how you pick it up as an investor property, whether it's the SCR loan, a 15% down, or a conventional loan, 20, 25% down. You can get a max at 2% in seller. credits for closing. And so they still are essentially forcing you to pay even more out of pocket,

which makes it harder for you to buy investment properties as compared to a homebuyer's primary residence. If you and a home buyer had the exact same budget, okay, I can only afford X, the home buyer would be in a more advantage of positions. You offer a little bit more for that house and get it because they would not have, potentially have the pay as in any closing cost, one, and two, they potentially could have a lot more assistance from the seller to help them you're across the finish line. Now, when you talk about FHA loans, the cool thing about FHA is that is an automatic 6%

that you're allowed to get toward closing, which is awesome. And so sometimes if you're on the end of the conventional in FHA, this piece may push you over it, depending on what you're going to negotiate, because 6% toward closing can be a heck of a lot and a major utility for what you're trying to do with the compound interest rate

and making that dealing in sweeter. TheA loans is an automatic 4% toward closing, and then USDA loans is 6% toward closing, closing and it kind of continues from there. And so one of the pieces that we as an Akaba home team have been able to be for our clients, because we're investors ourselves, we see these limits and we always are asking questions of one, why are there? And we're not looking at to say, right, we're always asking how could it be done and is there a way to get creative? And so, for example, we've had a few deals where we've gone well over that amount. And we'll say,

quote unquote loophole is if you're able to negotiate all these credits and we're maintaining an amicable relationship to the seller to where they're rolling to do some of the word and you're glad to do ahead of time, you can reallocate those credits to checks that are cut to vendors at closing for the work that they're doing. So for example, let's say that you want a chicken net put into your basement, right, so you can turn it into a basement revenue and that kitchenette's going to cost you $10,000 to put it in. If you've already agreed to say 20,000 seller credits and you only need 10 to cover closing, you could essentially, and this is what we've done a couple of times, give back that 10K before closing and have that

contractor complete the work ahead of time and then get paid at closing from seller proceeds. And so it's money coming from the seller. It's the seller doing work on their own property and getting paid. It's the same net to the seller, but now you are coming with less out of pocket, which again increase your cash on FIFR charter because you've racked getting unit updated into your loan. Now, not all sellers are going to go for this, but we found a way to explain it to seller agents in a way that it's a bit less fratting, and we had a pretty good success in getting this done, which is awesome. I actually just stayed with a personal priority where we got that each time.

The other thing to think of is extensions, right? Extensions, there's something that's new, or not even new. It's unique to the Georgia real estate. contract and it's called the eight-day unilateral extension. It's supposed to be the buyer or the seller can utilize this for financing reasons. If there's like, hey, I hadn't received my disclosures in time before closing or a myriad of reasons you can use that eight-day unilateral. Give notice to the other side that you're going to extend closing for up to eight days. And this single line that's inside the Georgia contract has helped save countless number of deals

Because there's signs really tied to it at the end. And the lenders are still working. If you've not coming into things in at nature, and you need that extra day or two, and you're able to utilize this eight-day unilateral to get up to eight days to make it happen from there. And so that's one that we've utilized a significant amount, and it's something that I'm keeping their back pocket. And it ties into the next piece that I'm going to talk about as well, which is closing day, right? A lot of people will take the foot off the gas when you start getting toward that closing. day piece. And for us, as fiduciaries for our clients, what we're trying to be was make sure that

we get you all the way through the whole process, right? And we want to make sure that we capitalizing in every portion of it. So what I've explained this whole time is how we negotiate your diligence, how we negotiate financing, how we negotiate the appraisal contingency, seller credits, how we're using it, right, to try to make the deal even sweeter. The closing day is also important. A lot of people are just like, oh, yeah, yeah, you know, whatever day you pick is good. But If there is, say, updates that need be made to the house, say your plan to renovated unit and there's not have any income coming from that, what we try to do is set closing as close as we can to the first of the month. Reason being, if you were to close, say, today, right, today's August side. If you close today, your next mortgage payment is not September.

It's actually October, right? And it's October 15th if you wait until the last day to make the payment. And so you essentially have two full months to get all the renovations done. Maybe that takes you 30 days. And then you have another 30 days of income coming in from that park route. That's going to help you pay that mortgage and so in October. Whereas, let's say you close through the end of the month. If you close on August 30th, right, then your first payment is October, right?

And so that's a lot less time. And so it's ideal if you can work it in the deal to have the close date either very close to the end of the month for you to use the eight-day unilateral extension and or communicate with the other agent to push it to the first or to have it on the first of the month so that you have the ability to get the most time to wrap up some cash special investment before you actually have a more issue. And so these are a couple tips that I'm going to go over with my team actually tomorrow. And I shared this feeling a little bit earlier.

So those that might have missed it will be able to cast it on the reply. But the Akabo Home Realty team has grown significant. through the years. In 2021, it was a, in 2022, it was a TV 1. It was, uh, year's truth, right? Running around on a made it had. In San Antonio, you started taking on team members. And it ended the year with eight team members on the Hala Home Team, which was awesome.

And now midway through 2024, we actually have 13 team members and growing. And it's pretty incredible. We're covering all of Georgia. We also cover Florida. And so if you know anybody that is looking to buy or sell, whether it's an investor or a regular retail buyer or willing to help and have to you with love. And with that, I think I've been on the soap lot for bid. And yes, I'm with you, AJ.

Shout out to the eight-day unilateral. But this is going to be an open session. So feel free to bring any topics you have forward, any questions forward. What I've just covered was just tips and tricks on the Georgia real estate tax checks and how you can use that to your advantage to make a good deal. review. Andrews. Any questions, comments?

Feel free to join as well. Yeah, everybody's busy multitasking and watching the Olympics. Hey, no words. Yeah, that running stuff. And I got to get on it, but I'm not quite there yet. I'll stick to tennis. Steve, which, we've got to get a game here. So not unsettling to the new place.

We will keep going here soon. So while we wait for any questions, comments from the group, I'm giving you just not taking the market right now, right? So this is, I think we talked about it a couple weeks ago, but we're essentially in a buyer's market. And I think for a lot of us, we're in a buyer's market and we're potentially heading into a recession if we're not our immune. And for a lot of the individuals that are millennials, this is going to be the first,

quote unquote, recession. And you've been in where you're an adult, right, where you are actively in the market by real estate or stock and that sense and things that nature. And so, and for me, I'm going back and reading some of the books from the grapes that right back in the past from, you know, the warm bubbles of the world where he's like, hey, when everybody is fearful, that's when you're greedy. When people are greedy, that's when you should be fearful, right? And when you start to think about some of the advice, the sage advice, the test of time,

what I notice right now is a lot of people are pretty fearful. I've had the walk of a cuckle, I don't even have. I've had a conversation with a lot of different individuals that were in the midst of, I think I should sell a house right now and things of that nature. And it's like, no, I think you should. should take a view on the market long term, right? You bought those property long term. And if you try to flip something short term that wasn't meant to be flip short term, like that property, that's how you lose money, right? Whereas when you look at it long term view and you start to say,

okay, here goes the things that are coming to the metro. This is a short lit in the road. You talk about just like the next decade. Daddy from now, you're going to be happy that it's property or not, right? And so I always tell something long term and also trying to to use that when everybody's digging. I see all that I could say that right now is an awesome time. If you have liquidity and or partners, you go and purchase real estate. I can't tell you how many deals come across the board each day

where there's potential to do cellar financing, right, to where you could literally come to the table with minimal down and take over somebody else's team at subject to seller financing. There's plenty of realtors reaching out and slicing prices. I just saw those six-bedroom four-bath. Doe, gate, long driveway, big house, they'll make an amazing Airbnb or midterm rental that has steadily dropped their price from, I think they were at like roughly a million dollars during like 950 years ago, and now they're at like 550.

Right. It's a company that's still going to appraise to see if it can be more. Like, if there's opportunities in this market, if you are willing to be greedy while others are fearful and have a long-term approach and have the liquidity to kind of, to write out short-term storms. So I'm excited about that piece. And I think I've talked to a couple people on here, but I recently closed on a duplex that we were able to negotiate significant enough credits

and we're able to get a kitchenette put in with some of those credits. So we essentially came at Duplex until the try cut. I actually have people back there right now who are probably going to pull in all the night or putting everything together. And I'm going to go join them after this call to make sure that we can get the TVs, get all the wallpaper up, all that stuff. and get this thing launched next week as a love for Richie Shultramer. Because we are going to lean in to this environment.

But again, this is an open session. Feel free to drop any questions in the chat or comments and or join live. My God. What's up, boss? Desmond, how are you, man? I'm Della. How are you? Come on, man.

We got another booking.com. I'm good. Absolutely, man. I'm good. And, dude, I don't worry talking about it the other day. I was super excited. I'm maybe more excited because the devices should be here by the end of the week.

That reminds me. So Desmond and I are talking about this way where as you continue to grow your portfolio, how do you optimize it? How do you squeeze more lemon or more juice out of that lemon, right? You've already gotten multiple short-term rentals. And with the Accoma home team, you have a 35 now under management. And so we recently partnered with this company, Stafi, and they have these Wi-Fi receivers, right?

That you clung into your house and it's like extension, extension devices, but it works like a hotel where when people check in, they essentially would have to give their email and a valid email and their phone number to access the Wi-Fi and all their devices. And then it goes to a system and it automatically sends email marketing to them. The reason that we're going for with it is one, we have the breadth of a lot of properties that we can market to. And two, we want to be able to boost our direct numbers, right? Right now, I think we're at like around 10% or so of our bookings or direct or maybe seven or not. We want that to be at 30%.

And the way that we can do that is by not only marketing to the host that booked it or the guest that voted, but to the other 11 people that are with them and try to keep that on. Yeah, absolutely. And I think that's a super cool thing that, like, and we were talking about this earlier, it's really cool to see, you know, how your portfolio has, like, progressed. And now you're bringing in, like, these more sophisticated, you know, aspects of the business. And I feel like for someone, my operations caliber, right? So just three, you know, short-term rails. I don't really know if it would make sense for like, you know,

that small of a portfolio. But then again, I feel like direct to make sense no matter what kind of rental you have, right? I think it's just a matter of how much you're willing to lean in on that piece. Like right now or I think in the past, I haven't really felt the need to, lean into that direct and I've been like grateful for that. But here recently it's definitely been something I've been considering more just as I've been having to check the calendar more and having to think a bit more about, you know, how to attract guests and get bookings and whatnot. So yeah, I mean, I think it's something I might even, you know, try out if I can, you know, try that out for chief or, you know, work that out in some way. But yeah, I think it's a great idea

for sure. And I've heard about it a bunch, if not even through stay five, just the idea of like collecting guest info to increase the direct because like you never know what's going to happen with the platform and like I hear horror stories all the time of like hosts with like thousands of reviews and like many many properties and they just get like banned off of one random one off experience so even like a divvy one so we bought a house subject to earlier this shit and we talked about a while ago and it was it was running too like it was booking's below lore, you know, we had like a month and a half booked up and we're excited about it. And then midway through all those days, Airbnb is suspended our listing.

And they're like, oh, well, there's another listing to this address. You can't have two listings and seeing others. I sent them all the documentation the same day. Like, here goes to the settlement statement. It's a new owner. The other listing is taken down. Look at the pictures. They're different, right?

All this stuff. It took them two weeks. And they canceled all the remaining bookings in front of those. It took two weeks to get us back on live, right? And that was just off of a misunderstanding, not anything happening, right? And so when you see stuff like that happened, it definitely shows you that it're vulnerable. And I think three is enough, man. Like, you have three properties.

It's just set aside some tire because hospitable does a lot of the words. Honestly, not that hard to do it through them. It's just going to be a little bit of an extra expense, maybe like $50 extra dollars or or something like that. So go ahead and build your direct site because now, even when you're looking to market to other owners, like, hey, man. energy. I don't necessarily send them the Airbnb. I usually send the link to our hospital so they can see all of it and it's nice and clean. They see our marketing. It's like,

oh, man, this is awesome pictures, right? And you're not distracted by, okay, what is this one bad review, right, as opposed to look at the breadth of the portfolio of man? Yeah, absolutely. Absolutely. Yeah, you're definitely right. Like, honestly, I've been, like I said, I think I've just been fortunate enough to where I haven't really had to, like, think about it or like, things have kind of just been flowing smoothly up until this point, but I'm definitely at the point to where I want to, like, optimize. I want to just be better about,

you know, how I'm running things. So, yeah, it's definitely a point to that I'm going to, I'm going to follow you up on and, like, yeah, get on that because I don't want to,

you know, one day randomly get blocked either. So. No, and I'm definitely going to keep you posted on, on kind of how to stay fine experiment goes. Please do. You're going to be launching this Lover,

B&B here next week. You actually had guys working right now. I've been planning to pull an overhead. I would be awesome and get this thing done because there's some bonuses in play. I feel like, hey, we're going to do that. So that's cool. So looking forward to that piece, $5 versus $1.00. Should you add it?

Yeah. There may be an extra fee for that piece, which is actually not that bad. But yeah, I'll keep you both on the stay five piece. It's one where you just keep adding things little by little over time. I think we're talking about that a lot. It definitely did it start off like this before it was like bootstrapping it, right? And then over time, you can add other layers because there's more income coming in. And you start to add other services that make a lot of sense.

The one thing I'm trying to figure out, though, is how it would work to bring cleaners into, like, pay hourly on staff, and whether they're working or not, and figure out that amount. Because right now, when I look at the dollars that are going out to the cleaners every month, they're awesome, amazing, amazing proves. But it's upwards of 20K. I mind that. So when I look at that, I'm like, this could be funds coming back to the management company. If it were to pay somebody, say, I don't know, $15 to $20 an hour, 40 hours a week, right?

And you're not necessarily the work for 40 hours a week. You just get you consistent. I'm trying to think for you that. That's the next thing. Yeah, because that's something that has kind of been in the back of my mind to, like, even just with having three, I'm like, man, you know, especially if the occupancy is, you know, where it should be and where I wanted to be, the cleaners are here in a pretty consistent. consistent basis. And I think it's the piece of having consistent, like, pay and consistent work that can be challenging and, like, I think it'd be the tough piece that's figured out. Because, yeah, sure, typically you might have, you know, three or four cleans a week, maybe,

but, like, it can be so variable, right, that I think it's going to be hard for someone to want to sign on to saying, hey, like, I'm okay with my schedule being variable and being based off the calendar. So I think some sort of consistent pay, is required, but I think it would take some figuring out and some, like, good crunching of the numbers to make sure that, like, you're not screwing yourself out, right? And, like, there's enough work for where it makes sense, but then also, like, it's going to make sense for someone to want to take on that job and, like, you're paying them enough. But, yeah, I definitely think the size of where you're at, I wouldn't be surprised if, you know, they're doing a cleaning every day

or cleaning every other day, at least, right? And even if you just start with the, a few people, you know, starting off. I feel like I would imagine that being another kind of next natural step for you to take as you continue to build things out. No, like I'm 100% with you. And it's one where we are at a scale where it couldn't make sense. If you were you just math it out, $20 is a lot per hour, right? Times 40.

I'm talking 40 hours to $800, time four. I was like, I'm going to round up. It's 3,200, but I'm going to round it up to 3,500. Say, you need a 500 per month for one person, and then say you need at least, say, three people, right? Because you need one person that can work weekends, and others you have to work during the week consistently, and then another person is like a backup, right? So 3,500 times three, it's 10,500. That's not that bad. There's going to be sometimes where you're not going to have as many cleanies, and you still got to keep people on staff. But you put that money aside from the good times, it could be a goal. Like, when I look at that and I say, okay, 50% increase in profits, if you work ahead, we've kind of taken it on and having some people on staff.

The piece that I question those, Jack and said like, it is really weird. It's not like a normal job or, hey, you're coming here, I'm late Tuesday, Wednesday. You're literally, well, but it could be. It could be, I'm paying you X amount per month, and these are the days that you work. But the days, you got to hit X number of profits. You mean. And there could be no properties. Right.

I think that's the piece that you have to be comfortable with and, like, might take a little more thinking of like, when there is no work, is it okay for the cleaner to do nothing? Or do I have them go to the property and clean up outside? Right? I don't want to just be creating work, you know, for no reason. But I also don't want to just be, you know, handing out money for you to be sitting on the couch, just because, like, Jimmy extended for another week, you know? It's true.

So I think that's the piece that, for me, would be tough to part with that money of, like, oh, I know there's not going to be a cleaning for the next month, right? But you're getting paid. So likely it's not going to be that long. But so I think that's the piece that, like, in my mind is a bit harder to understand because I think there are still things that, like, could be done that aren't necessarily a part of, like the day-to-day cleaning, right? So even if it's, okay, here's a piece that I've really tried to, like, get better at

and just think through is, like, deep cleans, checkups every so often. And I saw AJ posts on his Instagram story not so long ago as he was doing one, like a monthly checkup of his Airbnb. I'm going to try to go in there at least, well, I have on my kind of schedule to go in there every three months and do like a deep clean. So that's beyond what the cleaners are doing, beyond what I expect them to. to do. And it's really something I want to be doing myself and like want to have my own kind of eyes and ears and hands on to where, you know, I'm cleaning the couch and, you know, we're dusting

the fans and like the specific things I'm doing inventory. And right now I have a small enough, you know, portfolios where I can go and do that on my own. And like, I'm still doing that myself. I think eventually I will even offload that. But for now, like, that's my task. I'm okay with that. But I realize, like, that's something that's going to have to be offloaded. But I think it's something like that could be thought about, right, to where like, hey, if we don't have a cleaning this day, well, let's go make another property, you know, just that much better. I think, like, you don't want to be creating busy work because people can sense that. But you have enough properties to where it's like, if you're doing it every three months,

that's probably like a week, you know, or every week that a deep clean would be done. And I don't know if you guys have, I know you said you'd have the operation manager and she goes and does those kind of checks and stuff. But I don't know what kind of cadence, you know, you have, you know, what that looks like. But to that, like, what you just, and I love workshop on this stuff with folks that are in this too, because we all, you know, you come from Dary Angle. I love what you just said, because I didn't think about that. Like, you're, these days, you're on call from from this time or this time, right? And so if a house needs to get, you know, recleaned or somebody's like, hey, I do whatever, something got in this, you know, or let's say that the operations manager, it has to hit three houses to go change batteries. But even that piece, say it, these three people are under your purview for these days and then, or these two people.

And then on these days, it's these two people. I think that could work out. Then you always have that, hey, your cleaning is the priority. But if there's not a lot of cleanings to, like, assign to them, then it shifts so whole. to everything goes within reason. I think it's like, you know, telling them, hey, the operations manager isn't going to go tell you to jump off a bridge, right? No.

But, and this is something that came together at B&B, she may say, hey, come join me to help unbox these. Precisely, like you're on the clock, right? And like, you want you over here, you know, helping us out. That's a very reasonable request, right? And there are, you know, you don't know what could come up. So, for instance, for me today, I got a message from a guest earlier this morning. And he was saying, hey, Desman, you know, everything is great.

but I was trying to make a cup of coffee, and I noticed that the cure egg isn't working, and it has the de-scale light on. And I'm like, okay, like, that's fair. So if you have a coffee machine, you know, here, maybe like a year and a half, for some reason, the machine needs to be what's called descale. I don't really know what that means.

Do you have to be some special process, de-scale it, and then you can make coffee again. I know that's a requirement. So, like, it comes up, you know, not enough to where, I have like a reminder for it or to do item for that. But like now I all of a sudden had two curex sitting on my, you know, kitchen table that need to be de-scale.

So I guess later tonight at like 9am, I'm going to be de-scaling curex. And like, did I plan to be doing that? No. But like is that something that comes up and needs to be done? Yes. And I feel like there are just always, it seems like those one-off random things, batteries or decaling or, oh, there's a spot on the couch and the cleaners weren't able to get it, they had to leave. Like, you know, whatever it might, like, there's just a million

of things I feel like that can come up. And I think with the amount of properties you have, it doesn't have to always be like the routine cleaning. It can be almost like you said, everything under the sun that the operations manager needs help with within reason, right? And going from there and just like starting from there and then, you know, building that out and, you know, having a specific scope of work, you know, eventually. But starting out, like, hey, look, it's cleanings and then whatever else we got to need. for it. Yeah. And I think it could get broken debt because now I'm thinking even deeper, we could figure out what that daily amount is. And maybe it's, you know, so we talk about 3,500 in a month,

you know, you divide that by 30. We're looking at like 125 or so a day, we'll call it. Yeah. Something like that, right? So like 125 a day. So each day that you're on call, it's $125 that's coming your way to pay you weekly. And so like if you're like, hey, I want to work X number of days with your team on these days, you're working. with us. And that would help you to even scale up to have, you know, more staff. The only piece that kind of comes back is, right now it's pretty autonomous. You know how those are the cleaners. Like, you don't really think about it at all. They're doing their own thing. You're advantage of it. If somebody shows up sick or whatever, they're replacing them with somebody else.

And so are we ready to take on that task of recruiting and maintaining and kind of going from there just deep. Yeah. And that's something that I was kind of like worried about too. having in-house cleaning is like now you are taking on the role of basically cleaning manager, right? Like, now you're the manager of a cleaning team. So it's like all these problems that like, you know, typically like Tertify was handling or whoever, you know, was handling that before. Now like that's kind of coming back to you.

But I think it's all about having someone responsible. So I think just how you have an operations manager, maybe that means you now have a cleaning manager. And every cleaner is actually, you know, reporting to her. And that cleaning manager is the one who, you know, is responsible for kind of, you know, she might even start doing the weekly, like, hey, let's do a weekly, you know, make sure we're doing the cleanings. And, you know, so I definitely think it's something you could build out and, like, have one person you really trust, you know, to maybe. Hey, you heard it here first.

Our Desmond just distract a role. We're looking for a cleaning manager. I haven't figured out the pay yet. It's probably not the incentivized based off of what we make, right, so that you can grow with the economy. And so if you're interested and have an experience managing cleaners, seriously, because that would be awesome to get another 10K or so into the business. I mean, that'd be pretty cool.

Yeah, that actually, that's super cool. I'm looking for a role, too. I don't know what it is. So don't apply. I'm looking at. Hey, I was looking for help. Somebody helped me. All right?

You tell me what we need to do that. seriously. Yeah, that's funny. And I think it's funny because I feel like, you know, in this kind of like, and we've talked about it before, like in this weird, like small, medium range, I feel like that's kind of a sentiment of a lot of owners, or at least I hear a lot to where it's like you're not big enough yet, but you're big enough to where you have, you know, constant stuff that needs to be done.

So I think it's a common problem. I think it's good to know that like it's good having groups like this, I'll say, right, especially when it's a larger group, right? And we are, you know, typically, you know, just whatever it comes up and we can talk about. And, like, I think having folks to go through it with together can definitely be super important. So I'm, you know, grateful for you for setting up space like this. So come on, thank you. This is real estate strategy and it's also a therapy session.

So I appreciate you, truly, everybody that joins for continuing with that spirit. Because at the end of the day, no longer we all stick with. with this, the better it gets. It just gets better and better each year. More stabilized. All of a sudden, there's more income coming in. It's just when you're new in this. And I remember the feeling, you get like a, hey, I need a jump mentality, but you've got to have that long-term vision, figure it out one problem at a time. And over a short distance of three to five years, all of a sudden, you're not even thinking about that property. And it's just growing and helping you hit your goals. Yeah, absolutely. All right, man. Well, Desmond, I appreciate

you jumping on, AJ. I know you're still running, man, kill that haul for us. And I will catch you a little bit later. All right, man. Take it easy. Join us every Wednesday at 7 p.m. Eastern as we explore different types of investments that can fast track your path.