Every house is a business

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A horse at one in the morning

1. Why a horse is a business plan
2. Every house is a business

The five steps

1. One, acquisition
2. Two, design the experience
3. Three, management and reviews
4. Four, marketing
5. Five, optimisation

What it is worth

1. Buying a business, not a house
2. The tax side, and waiting
3. She arrives

Why a horse is a business plan

Okay, so [music] it's 1:00 in the morning and I am waiting for my dream horse to arrive from Oklahoma. This is all part of a big business plan that I've been working on for a number of years. I love horses, but it didn't make a lot of sense to spend a lot of money on these horses when I was growing my business and needed to be investing in my business. So, I decided to use my business and sales and marketing skills to buy horses.

And I bought my first horse online on a classified ad for like $500. And then I would do a little training and take better pictures and sell it for $1,000. And then I took that horse and I would buy or I I would take that $1,000 and buy another horse. And then I would do a little more training.

I would do some better pictures and do some better marketing and I would sell it for more money. And I kept doubling my money. Sometimes I would triple my money every time I would buy and sell a horse. In fact, I they even made me get a license to be a horse trader because I was buying and selling horses so much.

And then I ended up buying a brother to this horse from Oklahoma. And this horse is the final pinnacle. I'm going to name her Legacy because she is going to leave a legacy. She is one of the best bred Gypsy Vanner horses in the country.

And I am so excited to get her. And I know it sounds crazy, but everyone knows that horses are very expensive and that don't they don't make you a lot of money. But I'm committed to using my business skills and my sales and marketing skills to make money with horses because I love horses. I love business.

I love sales and marketing. And I have a plan. I'm going to be using this horse to make lots of babies. I also have another horse that they will be making babies with and I will be making lots of horse babies that will be worth about $30 to $50,000 a piece.

Every house is a business

So stay tuned for this little business plan, but I'm committed to be able to make over a million a year with horses and that's profit. So I have a game plan I'll have to let you know as I go. The point is, I'm about ready to show you when this horse shows up soon what she looks like. And you're going to be you're going to be amazed.

She's gorgeous. But the key is I love business. It's just fun for me. I love being able to make money.

Now, I haven't always been in real estate, but I've made a lot of money and needed to reduce my taxes. And then I was taught about real estate and all the tax benefits that come from short-term rentals. That's what led me down this road and I thought, hey, I can teach my clients who also need to reduce their taxes as well. And that's what led us to creating scholarship houses for our clients that they can use to reduce their taxes.

But it's all about business. I don't have to have years and years of real estate experience to be able to make money with real estate because this this isn't real estate. I've said on so many videos before, but I'm going to say it again. This is not real estate.

This is a business. When you get a scholarship house, when you buy a scholarship house, you are buying a business. Every house we buy, I think we bought 10 houses in the last month. And every house that we buy is another business.

I just flew back from Phoenix, Arizona, where I went down to Scottsdale to look at a house that we just bought. And every house, the one in Scottsdale that we just bought, the ones in Florida, the ones in the Smoky Mountains, the ones in um off the coast in the in Texas, all over the country. These houses, Joshua Tree, California, all these houses that we're buying are businesses. Every one of them.

One, acquisition

Every one of them is a business. It all starts with the acquisition. Now, with my horse business, it's been taking me a while to acquire a very expensive horse. That was one of the it's it's arguably the best bred horse in the country.

And it took me a minute to get that horse. But when you acquire a business, when you acquire a a real estate property, a short-term rental, that is the first step. You want to be able to get a really good discount or you want to be able to get a low interest rate like the cabin that I bought in Idaho where I took over a 2.9% mortgage payment or you want a low down payment. We've bought houses for less than 5% down.

So, the key is that you want one of those three things because the money is made in the acquisition. The the big returns on your investment. It all starts with the acquisition. So, you want to look for one of those three things when you are acquiring a property.

Two, design the experience

Now, the second thing you need to design an experience. We have a committee that gets together and we look at the top properties in that market. What's going to make them stand out? Is it a golf simulator?

Is it a theme like a Disney theme? Is it just an amazing experience with amazing, you know, amenities and the barrel saunas? Like what do all the top houses have that we need to have? And what are we going to do?

Are we designing the experience for a a honeymoon retreat? Are we designing the experience for families? What are we designing the experience for? That is the next step.

You design it. You need to maybe do some renovations. Maybe we need to do some some lipstick, you know, and a theme, furniture, all the things. That is your product.

That's your product. Okay? Just like these horses, they're a product. You know, a digital course that you might sell, like my daughter, my daughter sells digital courses on how to do nail art.

That is the product. But when we buy a house and we theme it, we design it, that's the product. That's step two, designing an experience. Okay.

Three, management and reviews

Then step three. Step three is management. It's like buying a restaurant that's poorly managed and you just fire everyone, get a new chef, get new management, and you can help the prop or the restaurant to be successful. You need professional management.

Why? Because you need five star reviews. Have you ever bought anything on Amazon that didn't have a bunch of reviews? No.

We buy everything based on reviews. I've been looking at golf simulators for our cabin and for my house in my garage, and I'm just looking at reviews. I'm researching all these products and I'm looking at reviews. So, when you put a new house on Airbnb, then it's not going to have any reviews.

You've got to get those reviews. And you get those reviews through professional management. You need to knock it out of the park with professional management. You need to blow them away with their experience.

Why? So that they come back and do a direct booking with you that you don't have to pay those 15% Airbnb fees. Right? If you can get people to directly book with you every time because you had they had such an amazing experience with you, not only are you going to get those five star reviews, but you're also going to get repeat direct business and save 15%.

That's huge. And then nobody knows about your house. You just bought it. You just themed it.

Four, marketing

You designed it. It's amazing. You got management in place, but nobody knows about it. That's the next step, right?

Step four is sales and marketing. Just like when I would take these horses and I would take pictures. Sometimes I would buy a horse that had horrible pictures. It was a good horse but had horrible pictures.

I would buy it. I would put my kids on it and I would sell it with really good pictures as a kids horse. I would market it as a kids horse and I could sell it for sometimes two to three times as much just because of the sales and marketing. So when you buy a house, how do you nobody knows about it.

My first business that I ever started was a climbing business. I carved um climbing holes out of foam and we would make molds and we would pour polyurethane in there and and we would sell climbing holds for climbing gyms. And I built this website and I was so excited because I got my first website built which I learned how to do myself and then I launched it. I put it out there on the Google and I was waiting for all those sales to just come flying in.

Crickets. It's crickets. Just like at 1:00 in the morning out here, you can hear the crickets. Uh there was nothing.

No sales. Nothing came in. Why? Because nobody knew about it.

I had to learn SEO back in the day. This was long before this was what, I don't know, maybe 30 years ago. I had to learn SEO, which was how to get that website to the number one spot on Google when somebody typed in climbing holds. And I was super proud of myself because I did it.

I had climbingholds.com as the number one website when somebody would type in climbing holds. So, when we finish a property and we get management in place and we get ready to go and launch it, we're going to run ads. We're gonna run ads because we need to test images. Which images convert the best, right?

Which images do people click on? You got to get the click. Okay. I spend over $5,000 a day on Facebook ads getting people to click on ads so we can help them reduce their taxes and show them how to pay for college using scholarship houses.

We love sales and marketing. We spend a lot of money on sales and marketing. So, it's easy for us to do this for all of our houses. So, we can use our team that we already have in place to build web pages, to create the ads, to test the images, to put it out there, test the headline.

What headline gets people to click on that property? We got to test headlines. We got to test descriptions. We got to test test test.

And we got to get the word out. we got to we got to tell everybody about this new property so that they book it and then they give us those five-star reviews and then we start working our way up to the number one spot on Airbnb and on the first page of Airbnb just like getting onto that number one spotter or on the first page of Google. It's the same thing. And then finally or ne next to finally step five right before the last step.

Five, optimisation

Step five is where we optimize it. We use economies of scale and efficiency to get those expenses down. We get the revenue up. Why?

Because we have somebody watching it every day or at least every other day. And we're strategically pricing. Is it a low occupancy season? Well, then we want to be on the lower price because we want to be we want to be the one that they rent if there's not a lot of renters going on.

In a season where there's a lot of renters, we want to change our prices to charge more because in a high occupancy, we want to charge more. I have a cabin on a lake that's a lake town where it's pretty much active three months out of the year because the lake town is ran by a bunch of high school kids that are out of school and then it turns into a ghost town nine months of the year. So, when you've got those three months to rent out your house, you've got to be the top, you know, you got to be in the top as far as pricing goes because it's going to get rented. So, there's a whole pricing strategy to maximize your average nightly rate and occupancy.

Did you know that going from a 6% mortgage to a 3% mortgage, which we'll probably never see again on a million-doll house, on a million-doll house, going from a 6% mortgage to a 3% mortgage is only like $1,500 a month. You might think, well, heck, $1,500 a month could be the difference between a profit and not a profit. Making a profit and not making a profit. But did you know that if your average nightly rent is $500 a night, you only need three more nights in the month?

And that's the equivalent of going from a 6% mortgage to a four or 3% mortgage. So occupancy rate is just as important as the interest rate on your mortgage. And then what's the final step? The final step, step six, is the exit.

The exit. Why do we exit? If we've got a cash flowing property that's making profit and the house is going up in value because imagine how much it's worth after you've done all of these steps. You've got all of those reviews and it's crushing it and it's a business.

Buying a business, not a house

Okay? Think of it like starting a or think of it like buying as a venture capitalist. You go buy a restaurant. You buy the restaurant, right?

You get it on a good deal because it's not doing very well. it's not making money and somebody wants to sell it, but it's in a good location. So, you get a good deal on the on the restaurant, right? You come in there, you renovate it, you put in new furniture, a new theme, a new coat of paint, put new lipstick on it, right?

You get you fire the management, you fire the chef, you get a new management in place, right? Then you do all the sales and marketing, let everybody know that you're launching a new restaurant. There's a line outside the door for opening night, right? And then you optimize it over 3 to 5 years and then you sell it, right?

You sell it for a lot more than you paid for it because it's a business. Now the real the restaurant is also real estate. The restaurant is real estate. The restaurant is a building sitting on land.

But you don't think about it like real estate, do you? You think about it as a business. When you think of a restaurant, you think of it as a business. If the business is making money, it's worth a lot of money then, right?

So, I could have an Airbnb crushing it and sell it for way more than the house next door. How can I sell a real estate property for more than the house next door? Because it's making money. It has nothing to do with comps.

Has nothing to do with the appraisal. There are people that would come in and pay cash for a business that's crushing it. Now, why would you sell this amazing asset that's making money? Well, I'll tell you.

because you're going to make a lot more than what you paid for the property, right? You're going to more than likely double your money. Our goal is that in 5 to 7 years, you double your investment. So, if you invested $250,000 with us, and we partnered on this process, okay?

In 5 to7 years, we want you to double your investment. If you invested $250,000, we want you to earn about $500,000 over a 5 to sevenyear window through the tax savings. Cuz guess what? When you buy one of these, you're able to reduce your taxes by about 30% of the purchase price.

The tax side, and waiting

So, if you buy a million-doll house, you're able to reduce your income by about $300,000. That's over $100,000 of tax savings. That could be over a 40% cash on cash return in the first year. So, why do we exit in 5 to 7 years?

so that we can get another big cash on cash return by selling it doing a 1031 exchange and buying another one that's bigger or buying two of them. And by the way, we also pay an 8% preferred return minimum on the cash flow or 50% of the revenue, whichever is greater. So, you're going to have an amazing tax benefit, cash flow for five to seven years, and then a huge bump when we sell the house because you're going to get your money back first when we sell the house, and then we'll split the rest 50/50. You're going to take all that money and go buy another one or go buy two of them and get more tax benefits.

You're going to get huge tax benefits every 5 years from one house. Every 5 to seven years is the goal. Now, what if we can't sell the house in 5 to seven years for more than what we paid for it? Then we wait.

We wait. It's just simply time. We just wait another couple years until we can sell it for more money. It's that simple.

Now, if you want to start a scholarship house for your college funding and for your retirement, then click the link in the description below. While I'm waiting for this horse to show up, click the link in the description, book a call with our team. We'll give you all the details and show you exactly how you can partner with us on a scholarship house without any experience. You get all the tax benefits.

Even if you've never ran a business before and you've never invested in real estate, you can partner with us and we'll do all the hard work. You can get the cash flow benefits, all the tax benefits, the appreciation, the exit, the benefits of the exit, and you can keep doing this over and over. Imagine increasing your income by double doubling your income every 5 to seven years. What would that mean to help you be able to pay for college and for your retirement?

She arrives

All right, stay tuned. We're waiting for this horse to arrive any minute now. Okay, here she comes. I'm so excited.

All the way from Oklahoma. [laughter] Look at this. She's a sweet horse. >> Oh, I'm so excited.

>> She loves to be loved on. >> She's definitely the dream horse. The >> Texas drop off and get right back out to New York. >> Wow.

>> Oh, look at that. >> Good girl. >> Wow. Look at that.

Look at that. She's gorgeous. She is going to leave a major legacy. She's going to have lots of little babies every year.

Did you know you can do this Ixie [music] process and they can do embryo flushing and you can use different studs and they you can get about four to five foss every year from these horses. So, this is going to be her new home. Yep. She's just a baby.

She hears her friends. Okay, so I thought you might want to take a look at her in the daytime. Isn't [music] she gorgeous? Now, you may not have a goal to leave a legacy by leaving a whole herd of horses or a big ranch to your [music] posterity, but wouldn't it be cool if you could leave a big real estate portfolio?

Wouldn't it be cool if you could leave a bunch of houses, [music] a bunch of real estate that would allow your kids and their kids and their kids' kids to continue to receive that cash [music] flow for generations and generations to come. When my dad passed away, he left all his real estate [music] and all of his cash flow to my mom. And when she passes away, us kids will continue to get that cash flow and that real estate. And same with [music] our kids and our kids' kids.

You can actually leave a legacy through leaving real estate [music] to your next generation. Yes, it's amazing to help them pay for college. Yes, it's amazing to be able to teach them how to have a great career and support them in their college education. But what if you could teach them how to create wealth?

What if you could teach them how to invest in real estate? What if you could [music] teach them how to affect generations to come? That's what you can do with a [music] real estate portfolio. So, if you want to learn more about how to leave a legacy for your kids [music] through real estate, then click the link below in the description and meet with our team and we'll show you exactly how you [music] can leave a legacy for your kids, just like I'm going to leave a legacy with this cute horse [music] and a bunch of real estate to my kids as well.