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Co-Living Secrets: How to 3X Your Rental Income Fast w/ Grant Shipman · Real Estate Investing with RealDealCrew

0:00
Welcome to the REI Masterminds Network, where
0:04
host Jack Haas gathers amazing stories from leaders in real
0:08
estate investing. In each episode, our guests will tell you what
0:12
they're doing that works, what they've tried that failed. And best
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of all, you'll learn actionable steps to take your real
0:19
estate investing to the next level. Now, here's
0:23
Jack with another value packed episode. Grant
0:26
Shipman joins me here today, and you can learn what
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his team is up to by going to livings.com/mastermind.
0:34
That's gonna be a clickable link in the show notes. We're gonna be talking
0:37
about co living today, and, this is kind of an interesting
0:41
vertical in the real estate world. So thanks for joining me.
0:46
Well, JD, it's an honor to be here. I love talking about co
0:50
living. It's the newest biggest thing that, people
0:53
still don't know about. Right. Because once people start to hear about something
0:57
it's possibly in the past. And so I love it. It's my passion.
1:00
So thanks again for not just making a quality show, but also for bringing
1:04
me onto it. This is really great. So this is kind of an
1:08
interesting vertical. I see this in my market quite a bit because we're a big
1:11
college town. We see co living situations, but
1:15
not positioning it as an investor. Could you talk a
1:19
little bit about how you found your way to this particular
1:22
niche? Yeah, it was one of those beautiful
1:25
accidents as so many things are right. I got hooked on the
1:29
idea of financial freedom because I
1:33
call it my dream babe magical journey. I wanted to find my dream
1:37
girl and get married when I have kids, but I wanted the financial
1:40
freedom to enjoy them. So I started learning about real estate,
1:44
right? It's pretty much the easiest, surest,
1:48
safest way to financial freedom. And what I found when
1:51
I went to look at a house was that there
1:55
was another house on the same property.
1:59
And so I went to see this. I was the normal, normal Joe
2:03
investor. I found my financial freedom number. I thought if I work hard and make
2:07
$200 per door in 10 years, everything goes
2:10
right. I too can be financially free, you know, and that was a long
2:14
time, but I was committed. But when I came to this house with
2:18
my relitter, I was delivering dominoes out of a shitty
2:21
Prius. I was renting a room and the lender I called,
2:25
cause I was supposed to build my team, right? The lender lender laughs at
2:29
me. Like you can't, you gagging the house. I'm like, all right, we're just going
2:32
to keep going. Well, I went to this and what happened?
2:36
What was this like to any moment was I thought,
2:39
how do I lease this place out? So, I ran
2:43
some dummy ads to see demand. I saw I could put
2:47
both houses on one lease, each house on its own lease. And
2:50
I thought, well, how about I could also lease it out by the
2:54
room. And so in the next 48 hours,
2:58
I had gotten at least 10 times the response for the
3:02
rent by the room. And when I spoke with my real
3:06
estate mentor, he goes, Grant, everybody knows
3:09
rent by the room has high revenues, but by the
3:13
end of the month, your profits have disappeared and your management headaches
3:17
are way above what you want. Long term. That's why people don't do it
3:21
typically, unless they feel called to it. What was different for me
3:25
is that for 20 years, I had lived,
3:29
with hippies, with the intentional living community. These people who are
3:33
the OGs of strangers sharing the
3:36
house, not because they can't afford to because they want to. And
3:40
so, so yeah, I kind of stumbled into this thing. I got
3:44
financial freedom from that day when I found that surprise
3:47
house in the backyard. I ended up not getting that place. It's just
3:51
where this moment happened, the switch in my life.
3:55
But from that day, a little less than 15 months later, I had
3:59
financial freedom. 2 months after that I found my dream babe.
4:02
I married her and then we got pregnant on our honeymoon. It's just been
4:06
awesome. From an investment standpoint, you get way more for way less.
4:10
And from a renter standpoint, they get a whole beautiful house for the price
4:14
of a row. So kind of the perfect setup. It's interesting.
4:17
You mentioned doing these dummy ads. The last time I saw
4:21
that was in a Tim Ferris book, the 4 hour
4:25
work week. He recommends you doing these dummy ads
4:29
to just kind of test the market. Is that where you got that from? Or
4:32
is it just kind of come naturally? I'm not sure. I know I didn't get
4:35
it from there because I read the book after that. I wish I would have
4:38
stumbled upon that book earlier. So many things, but I think for me, it
4:42
just made sense. I didn't know. And I was very
4:46
responsible about it. Like somebody would message me. I would immediately message them
4:50
back and say, sorry, it's not available. I didn't want somebody holding their breath.
4:54
These are important. People are wanting to find where they can move to. But yeah,
4:57
I just did it and I thought, oh my gosh, everything changes now, J.
5:01
D. A house can make my first house that I got
5:05
renting it out, it would have made about $2,700 a
5:08
month and it makes $6,300
5:12
a month through Colip compared to just traditional rental. It's
5:15
astounding. Those are some big number
5:19
differences. And I mean, the the only other market that I see
5:23
people throwing numbers like that around is for,
5:26
like, Airbnbs, the short term rentals. And
5:30
that's dwindled quite a bit now because, I mean, the market is
5:34
frankly just flooded. Could you kind of break things down a little
5:37
bit as to how these numbers come about and
5:41
maybe the let's talk about your buy box a little bit
5:44
associated with these properties? Yeah, I think it'd be
5:48
good to say what co living is because
5:53
there is rent by the room strategies that have been around
5:56
forever. So, for instance, I have sober living. I have a sober living
6:00
house. I do not consider that a co living house.
6:03
There are halfway houses. There's rooming houses. That's kind of
6:07
housing for the poor. Other senior housing, like you mentioned, there's student
6:11
housing. These are all transitional housing, right?
6:14
People are only there for a certain amount of time
6:18
and usually they don't want to be there longer than they need
6:22
to. This takes a special kind of management,
6:26
extra work, all of this stuff. So, just to say my wife's in
6:30
Airbnb and like you said, that's a red ocean. It's oversaturated.
6:34
It seemed like they're trying to regulate it to death where co
6:37
living is something that's as far as property management
6:41
goes, there's no more additional work. It's a different
6:45
type of property management, but it's different from my wife with the
6:48
Airbnb. Who's paying a cleaner to come clean the hot tub. Who's
6:52
doing all kinds of little extras here and there. These are
6:55
mainstream renters who just want to live in a house
6:59
without signing the lease with a bunch of strangers. So just in the sense
7:02
of having in mind what this is, because it's definitely
7:07
like, could students live in co living?
7:10
Sure. But it's not student housing as far as how
7:14
I define co living. Could, could somebody who
7:18
is poor live in a co living house? I have plenty of people who are
7:21
in my houses who would be considered poor, but
7:25
it's different from a rooming house or a rebranded boarding
7:29
house. So, is, is that sometimes I'm confusing. I don't
7:32
explain it well enough and people have kind of an idea in their head of,
7:36
of of, you know, the, the house down the block with a bunch of people
7:39
smoking out front. Right. That's kind of like the slum nord situation
7:43
is JD. Is there anything you thought maybe I've been confusing on?
7:47
No, I think you're kind of clarifying things a little bit because when you
7:51
do, to be honest, when you said co living, the first thing came
7:55
to mind and I called that out right away is in being in a college
7:59
town. Typically what I see is, is co living situation with a
8:02
bunch of college kids, but you're actually looking at more of
8:06
long term residents who just simply enjoy the company of others and
8:10
they want to live in a house with others. Yeah.
8:14
And can you remember back when Airbnb,
8:18
like people didn't even know the name or say like Uber
8:22
people and people were like, were, were you one of those people that was like,
8:25
yeah, I'll go stay in an Airbnb or were you kind of weirded out by
8:28
it for a little while? No. Well, I, yeah, I kind of
8:32
jumped on fairly early, but then that was because I was looking for cheaper
8:35
ways to, to travel at the time. That was the
8:39
case. You would get kind of a deal. You can move, go
8:43
into, to an area and get an inexpensive place to stay for, for a week.
8:43
Now, more time, week. Now, more times than not, it's gotten a lot more
8:47
expensive. And you mentioned the regulations associated with it. My wife has 3 units in
8:49
Estes park, Colorado, which is
8:59
what you go through to get into Rocky Mountain National Park. And those things are
9:02
not cheap. I was all about it. It's a lower cost and you get a
9:05
fantastic place. It's, you know, the reason I ask is this trend,
9:09
the co living trend, it's a new thing. It actually started around
9:14
2,003. It really picked up steam about 2010,
9:17
2011, which is 1 Airbnb, Lyft,
9:21
Uber, all of these sharer economy got going. But
9:24
us individual investors, we didn't really know about it. It was
9:28
just something that's very grassroots and happening. Now, big
9:32
data that, you know, hedge fund investors, big money has
9:36
access to. They've been pouring 1,000,000 of dollars
9:39
into the co living market since 2012. That was the,
9:43
so $256,000,000 plus invested since 2012.
9:48
But they have access to data that the rest of us were just,
9:51
it's just starting to bubble above the surface. Even the term co living. When
9:55
I started my company, I called it community living homes because there
9:59
wasn't the term co living. We didn't know what to call it. I feel like
10:02
one of those things though. It's just to say it's, something, a new thing always
10:05
has to be kind of misunderstood. But the fun thing about this
10:09
phase is can people, is my wife making money on
10:12
Airbnb without a doubt who made the most money on
10:16
Airbnb, the people who got in early when it was really happening.
10:20
And that's, what's the thing with co living it. It's like I put a little
10:24
bit of work into co living and I get massive returns on
10:27
it. And I mean, that makes anybody feel fantastic. Not to mention the service
10:31
to society. Could you let's go to the buy
10:35
box? Like what type of property are you looking for
10:40
to that's ideal for this type of thing? Yeah. So, picture a
10:43
normal neighborhood, AB level neighborhood in, in a, in
10:47
a normal house in that neighborhood. It's probably going to be on the corner
10:51
lot, because you want to have plenty of parking. What I
10:54
suggest is looking at a 5 bedroom,
10:58
3 bath because this house typically can
11:02
be a 7 bedroom, 3 bath. We don't
11:05
go larger than 11 bedrooms. There are big
11:09
houses out there, some old Victorians, some fantastic, beautiful houses
11:13
that have plenty of bathrooms, plenty of all that stuff. When you go
11:16
more than 11 bedrooms, when you get to 12, there
11:20
starts to be 2 households, like 2 groups in the
11:24
house. And it's not bad. It's just a little confusing to manage.
11:28
At the same time, when you go lower than 7 bedrooms, this
11:32
might seem like a lot to people, but if you go lower than 7, it's
11:35
actually kind of challenging because responsible adults are
11:39
not home very often. They're at work, they're at the gym, they're out with
11:43
friends. And so, when you have less than 7 people, like I have a
11:47
6 bedroom and a 4 bedroom that our property management company manages,
11:51
Those have the toughest time because renters
11:54
prefer to see each other. And if you have 7 people, then usually at least
11:58
one other person has a schedule like yours. You know, these people
12:02
moved into a house because they want to see others and they just feel like
12:05
they live in a big empty house by themselves. So, yeah, normal house and
12:09
normal neighborhood, no more than 3 bedrooms per
12:13
one bathroom. And beside that, I bought everything
12:16
rent ready off the MLS with a realtor,
12:20
with conventional financing, or sometimes I've done VSCR,
12:24
but it's a really cool setup. And I would say one of the
12:27
coolest things is anybody who's into house
12:31
hacking, CoLiving puts house hacking on
12:35
steroids. So, I mean, holy cow. You can get I do a
12:38
DSCR loan. It takes me $80,000 to get the same house I could get
12:42
with 16 or $20,000 And then I just
12:46
partner with somebody and then it costs me no money. So, yeah, that's it's now
12:49
with buy box. Is there anything else that you think would be helpful or did
12:53
I cover the main points? No, I think you covered the main points
12:56
there. You mentioned that you're in Colorado. Is that your primary
13:00
market? Yeah. We're we're Colorado and in
13:04
Texas. And then we just got into Jacksonville, Florida as well.
13:07
But Colorado is where I, where I started. Okay.
13:12
So, and we're gonna later half of this show. I'm I'm gonna
13:16
put you on the spot, and we're gonna kinda go through the numbers here a
13:18
little bit so we can have an idea as to how how this
13:22
works. But before we get into it, I wanna remind everybody again,
13:26
you could learn more about this in detail by going to livingsmithpro.com/mastermind.
13:34
Livingsmithpro.com/mastermind. I'm gonna have that
13:38
as a clickable link in the show. If you found some value in what
13:41
we're talking about so far, do us a quick favor, share this with one of
13:45
your investor friends. And if you're watching us on
13:48
YouTube, give us a quick like and subscribe.
13:52
So, Brad, we can we can go in a number of
13:56
directions here. Now I'd like you to kind of run
14:00
through the numbers if you wouldn't mind. Like, let's
14:03
let's say, and, you know, I hate to give this typical, but since you're
14:07
in 3 different markets, I'm sure the numbers are kind of all over the place
14:11
on some of this, but you you're mentioning, you know,
14:14
$23100 rent versus I think you
14:18
were even in the $56100 rent in some
14:21
situations. Could you talk a little bit about how you price
14:25
these rooms and how some of these numbers kind of flush out?
14:30
Yeah. Yeah. And, in the room, the room rental
14:33
rate is very, is actually a really independent thing
14:37
from, normal just single family residence
14:41
market rate or for that matter, apartments, anything. So to say pretty
14:44
much any market you're in. So say Jacksonville, you
14:48
know, is a lower cost market where I'm going to buy that same house
14:52
in Denver, Colorado area. So, Jacksonville houses, I've got one
14:56
under contract right now for 420,000. I was to buy
15:00
that in the front range, Denver, Colorado, all of that area, that would cost
15:04
me around 750 thousand. So if I I'm going
15:08
to get a lot more cash flow in one than the other, but that
15:11
being said, room rates are going to be about the
15:15
same. They're always going to be between 700
15:19
and a $1,000 even if you're downtown Boulder
15:22
or Austin. But usually, they're going to
15:26
be 750, 800, or 850.
15:29
So, the easy way to know if you just look at a house
15:33
that, anybody listening, if you have a house for reds, or if
15:37
you're underwriting the house or analyzing the house to see if you want to buy
15:40
it, just take the number of 4 bedrooms and
15:43
multiply it by $750 And if
15:47
that amount of income because your expenses are going to be
15:51
virtually the same, same mortgage, more or less, same
15:54
utilities, same taxes, etcetera. But if that's
15:58
compelling enough to dig into co living, then
16:01
boom. A great thing to do is just to do it traditional. Right. But if
16:04
you get one of these houses that can crush it for you in co living,
16:08
I mean, we're talking 5 to 10 X, the, the
16:11
profits, right? Because revenue might be 2 to 3 X, but the profit
16:15
is. Well, one of the things
16:19
that's interesting me here is that in a traditional, at least in my market,
16:23
the traditional single family home as a rental,
16:27
you know, I'm talking about maybe on the high side,
16:30
$300 a month in net cash flow that could get
16:34
wiped out if the AC goes out. Or is So you're you're kind of in
16:38
a more of a unique situation here when you're renting by the room and and
16:41
the dollar amounts here are actually pretty striking. Can
16:45
you talk a little bit about the difference there as to what
16:49
do you provide as the landlord and what is on the
16:52
residence? Because I would have to think that there's some shared expenses or
16:56
something going on here. Yeah. What are great questions.
17:00
There's going to be about $50 of expenses a month, not at
17:03
max, I should say, $50 a month. So, what we do when we
17:07
set up a house and a house setup is very important because
17:11
we set up these houses. So, they mostly run themselves. The kind
17:15
of quality renter that is going to move in and turn that
17:19
home into a cherished place they love and don't want to leave.
17:23
That's the kind of person who really does want to run their own
17:26
household, right? This group of people living together, they want to make it
17:30
easy on. They don't want you micromanaging. They don't want somebody who's
17:34
running an Airbnb house that's stopping by and dropping off chocolates. It's like,
17:38
no, this is their house. But as far as the setup goes and
17:41
what works the best is all of the common areas. So,
17:45
everywhere besides the private bedrooms are furnished. Just
17:49
think with common, pretty normal stuff. I usually get used
17:52
furniture, used kitchen tables, that kind of stuff. It's easy to pick up. It's usually
17:56
closer than going to the store. And then there's going to be storage shelves that
17:59
get put in the garage because you don't want to have everybody have to keep
18:02
all their stuff in the room. And then, you know, anything that's in the
18:06
common areas. So for instance, toilet paper or
18:09
kitchen utensils, that kind of stuff is going to be
18:13
provided by the investor, the homeowner, or
18:17
the property management company. So they're going to provide those. They're
18:20
going to keep an eye on them, but really the house members are going
18:24
to take care of the stuff. They're going to clean the house. They're going to
18:28
use the lawnmower. They're going to do all of this stuff because that's
18:32
part of the joy of them getting to be in a house. When you're at
18:36
your house, maybe not everybody wants to mow the lawn, but 1 or 2 people
18:39
in the house are probably going to be fighting about mowing the lawn. And that's
18:42
why if you drive by one of these co living houses, the only thing,
18:45
ah, you would notice is it's probably the best lawn in the neighborhood. Right? Because
18:49
when you have 7, 8 responsible adults, that house is clean.
18:53
That house is a great yard and they might be the ones throwing a little
18:57
block party for the neighbors. Right? This is something that where neighbors either don't know
19:01
about it. They don't notice it, or they particularly enjoy
19:04
it. You mentioned that it's kind of a utopia
19:08
situation with these tenants, but with that many people too, you're going to run
19:12
into some conflict. How do you handle that?
19:15
And I'm sure there's going to be some complaints about so and
19:19
so is not holding their end up with a bargain here.
19:22
Yeah. I call what you just asked the $256,000,000
19:28
question, or I should say $226,000,000 Basically, how
19:32
do you get people who get along? There was back when I was managing my
19:36
own properties. Now I have a property management company that does it,
19:39
but in 2018, when I was still the one going to the
19:43
houses, get everything set up, there was this guy
19:47
who called up and he said that he regrets to inform
19:50
us that he lives with Satan and in
19:54
Satan's name is Tim. And so, right. This Tim was an,
19:57
another house member, right? A co renter. And,
20:01
this guy's name was John and he just like, you gotta get Tim out of
20:05
here. He's an awful guy and all of this stuff. Right. And then it wasn't
20:08
surprising that I also got an email a day or 2 later from
20:12
Tim. Tim said he also lived with the antichrist and
20:15
that guy's name is John. Well, that following Tuesday,
20:20
and this was in Longmont, Colorado for anybody familiar there, the kind
20:23
of the good tacos there, but they went to Taco Tuesday together, and they've been
20:27
going to Chalky Tuesday. As far as I know to this date,
20:31
they are like best buds. And do you know what
20:35
happened between taco Tuesday and, you
20:39
know, when they were messaging the property management about, you
20:42
know, the other being, being like Lucifer?
20:46
Somebody took the other person's hot sauce.
20:51
Well, I have no clue what happened. And this is a really important
20:54
thing to anybody who wants to manage co living
20:58
properties is that these guys,
21:02
just like every human everywhere, when a
21:05
relationship is forming, it doesn't matter how superficial, whether it's
21:09
a coworker, but somebody you're regularly around enough,
21:13
there has to be a little bit of friction. Otherwise, you will never
21:17
have trust or mutual appreciation. That's almost without fail.
21:21
And so, conflict is actually not a problem. It
21:24
means that good things are happening in the house. But if the
21:28
property manager steps in and tries to help,
21:31
1, they need to butt out. It's not their business. 2, it's
21:35
taking the property managers like time. That's
21:39
exhausting. But the third thing and the most important thing is
21:42
the property manager is robbing these guys
21:46
from the ability to work it out themselves when
21:50
conflict happens and you work it out yourself, it not only builds
21:53
that relationship, but like individually, you just
21:57
feel fantastic. You're like, I thought that was the end of the world.
22:01
And in regards to that circumstance, the $226,000,000
22:04
question is there's as far as all of this co living
22:08
hedge fund investing is there's been, I think, 7 companies that
22:12
have totaled 226,000,000 that have failed because
22:16
they keep trying to solve tenant conflict with software
22:20
or they set up this one company set up a 24 hour a day
22:24
hotline, where if you are in a conflict with the person you're renting
22:27
with, you can call them. Could you imagine getting a call at 2
22:31
am from strangers you've never heard of that are in a fight because they
22:35
rent a house together. Like, cool. Right. But, yeah, so just
22:39
to say the I get that I should answer real, like how do
22:42
I do this? It's not because I, you know, have a magic, you know, conflict
22:46
resolution wand. It's when I lived with the hippies for 20 years, the
22:50
intentional living community, the hippies, communes, co op world,
22:54
they have ways to resolve conflict. I adopted a thing called the 5
22:57
15 process. It's a 10 minute conversation that people have
23:01
between themselves and the household handles that the property
23:05
management company doesn't. So do our houses have
23:08
conflict in them? Well, of course you need conflict,
23:12
but does it, is that conflict become a problem? No, because the
23:16
households figure it out. And if there's a person who's not willing
23:20
to do their part and they kind of become a bad apple, then that
23:23
household will remove that person. So, Hey, it keeps the
23:27
household safe and the property manager doesn't have to pour their time down
23:31
the drain. You kind of led me into what I
23:34
was gonna ask you next. Were you just mentioned the household
23:38
can remove that individual. What type of power or
23:42
authority do you give the tenants to actually make
23:46
these type of decisions on finding their next roommate or in
23:49
this case, actually removing somebody who may be a consistent problem?
23:54
Yeah. So, well, there's this one gal, her
23:57
name's Lori. She's been in that. I think she moved in like 8
24:01
years ago. And when she moved in,
24:05
what did she most want to? Was it the property? Well, yeah, but she
24:09
wanted to see who she was going to live with. So what we have is
24:12
we always have a house member give the tours. This saves us time.
24:16
A house member met Laurie, showed her around. Laurie saw
24:19
the chore board hanging on the dining room wall. Okay. We all do 20 to
24:23
60 minutes chores a week. And Laurie's like, holy smokes. That's why this
24:26
place seems so clean. And then it also blew Laurie's mind because
24:30
the house was quiet. It was great, and there was 10 people living
24:34
in the house. Like, holy smokes. And so you're asking
24:38
about how do housemates have a do do they have a
24:42
a say in who moves in basically this person that gives the
24:46
tour, they then text back to the property manager, just
24:50
a thumbs up or a thumbs down. Right? So the property manager is
24:53
not discriminating. They're they're, they're not violating any rules. They're
24:57
doing the exact same thing with every person. And if this person who
25:01
does the tour gets a thumbs up, it says that person fits, you know, and
25:04
as long as they pass the background checks and just our normal best
25:08
practices and in screening residents, then they get offered a lease. And
25:12
then as far as, you know, with Lori, right? She had a great experience
25:16
because she had to meet somebody in the house. She saw the house. She loved
25:18
that there was chores. She didn't want to have to do all the cleaning. Right?
25:21
And so she moved in there and she now become that person who
25:25
gives tours. They're just a volunteer because then they, they kind
25:29
of, they kind of, the house trust that person to,
25:32
you know, to, to pick out good people. This person doesn't, they're not a manager.
25:36
They don't have extra responsibilities or authority, but they do have, you
25:40
know, they represent the house's interest. If a person would be a
25:43
good fit or not. You know, early on, we talked about the
25:47
regulations that are kind of, strangling the short term rental
25:51
market a bit. Do you see Thing like
25:54
that coming your way regarding this, or is there anything
25:58
that we should be aware of before we attempt this in
26:02
our local markets? Oh, it is. So here's, what's
26:05
amazing. Like the power of
26:09
legislation trends, which is just working terrible
26:13
against Airbnb. It's actually the
26:17
opposite in regard to co living is now there's a
26:20
legislation trend that is absolutely
26:24
protecting co living. So, for example, in Colorado,
26:28
before I would have said, hey, you know, make sure and we have a chat
26:32
GPT cheat code that you can find out how many unrelated
26:36
adults can be in place because when you do your due diligence, you know, this
26:39
is one extra step to find out, make sure you're being legal,
26:43
but effective July 1st this year,
26:46
every law that could limit co living has been
26:50
banned in Colorado. This has happened in Oregon and Washington and
26:54
Iowa and New York and California
26:57
cities like in Austin. Let me see. I think
27:01
Madison. But just to say this legislation trend is
27:05
so it's perfect for co living because people
27:08
realize, holy moly, like we have
27:12
housing inventory shortage and co living doesn't
27:15
just talk about eventually building something, eventually
27:19
fixing something. It immediately is a
27:23
solution. So, yeah, as Airbnb is getting beat over the head by
27:27
legislation, for us co living investors, We're just
27:30
riding this wave. We're like, and this kind of legislation is
27:34
happening in city councils and up to the state level, all over
27:37
the place. I can't help, but notice that a lot of the states that
27:41
you listed there are in obvious issues
27:44
around housing shortages, as well as let's
27:48
face fact, the economy isn't the best right now with buying a
27:52
house yourself or even rental prices in an apartment.
27:57
They're probably people are looking for cheaper
28:01
ways to live. Yeah. So there's 2 things I've noticed
28:05
with people who rent in co living. Some
28:08
are looking for cheaper places to live because they themselves
28:13
are having financial problems. And this is what's rad
28:16
about co living is you can provide
28:21
lower cost housing without
28:24
making it affordable housing or making it like housing for the
28:28
poor. We have people who this one gal actually who I mentioned, Lori,
28:32
nobody knew it, but us as property managers knew it. She was
28:36
homeless the 2 years before she lived in a car with her 2 cats.
28:40
And that's not because she was unskilled or irresponsible
28:44
person. The number one cause for homelessness is housing prices. And she
28:48
lives in a house where there's a civil engineer and a college
28:51
professor on the HVAC technician. I haven't checked up on the house
28:55
since then, but to say is that is the case. But the other thing that's
28:58
happening as well is people are realizing,
29:02
man, I could spend this money on housing and I could
29:05
afford it. They could even live by themselves and even live in a
29:09
nicer house, but they would rather spend money
29:13
on travel or not have to work as much overtime
29:17
or all of these things. Like basically they're choosing to spend their
29:21
money elsewhere. And that's a thing that I think has happened because of the
29:24
economy, even those of us with more money are
29:28
valuing things different ways. Just to remind everybody one more
29:32
time, head over to living smithpro.com/mastermind.
29:36
That's living smithpro.com/mastermind.
29:40
There is a lot to unravel here. In fact, you're going
29:44
to be putting on something on December 9th this year to help people with
29:48
this. Can you talk a little briefly about that? Yeah. Thanks for
29:52
having me do that is so co living just
29:55
like anything that's powerful. It can make
29:59
people a ton of money and provide massive service,
30:03
but just like with real estate, leverage is so powerful in real
30:06
estate, but if people don't understand it, they can really get
30:10
themselves in trouble. And I would say that same thing with co living. Co
30:14
living is not, it doesn't work with traditional property
30:17
management. It doesn't work with say short term or mid term property
30:21
management. This is a new type of thing. It is managing a
30:24
household of individuals. And so we're putting
30:28
on a a free training. It's 5 days. It's 1 hour a
30:32
day in the evening and me and my teaching team, we're just
30:36
going to bring the absolute most. We're going to show you show
30:39
people how to that chat CPG code, as far as like, does this work with
30:43
their regulations and you know, how I bought my first seven properties with
30:47
not a penny of my own. And, and in what systems do
30:50
you put in place and what furniture and how does the mail work and what
30:54
about overnight guests or what about cameras or watch all of
30:58
these questions that come up. How do you set up a house? So it really
31:01
runs itself and people thrive. The other cool thing in that link
31:05
is there's a book in there. It's normally $28 on Amazon, but you can
31:08
download it. Anybody who's listening to this and it's written by our
31:12
renters because the best thing you can do if you want to make money
31:16
is get to know your target market and people love this book.
31:20
So yeah, we've got this free buy big training and I'm always having to like,
31:23
people are keeping asking questions once the hour has passed. And I'm always
31:27
like, hi, I've got to, you know, take off to put my 2 boys to
31:30
bed, but it's so exciting. It's just a really fun time
31:34
for co living. Everybody wants it and it kind of absorbs a lot
31:38
of the learning curve in the beginning because there's such a high cash flow.
31:42
Yeah. You can learn more of that again at livingsmithpro.com/mastermind.
31:48
Grant, Is there a question or concept you wish we would have covered
31:51
before we jump into the rapid fire? Wow. I think, you
31:55
know, Tony Robbins says that the quality of a person's life depends on
31:59
the quality of the questions they ask and be great, ask great questions. So now
32:02
that we cover stuff a long time, but like you said, we could keep talking,
32:06
you know, all this stuff's fun. Yeah, this is especially interesting.
32:10
So I I'm probably going to have to, check out your event
32:13
myself to that endless a little bit more.
32:17
But if you're ready, we'll jump into the rapid fire questions and close out this
32:21
episode. I'm ready. Let's do it.
32:24
What lie do real estate investors sometimes tell themselves?
32:29
That buying a house is not worth it right
32:33
now. If you could go back in time and give your younger self
32:37
one piece of advice, what would that be? Biden, the urge
32:40
to say, check out real estate earlier. I think my
32:44
younger self, would have been
32:48
to chill out and chill out. It's going to work out.
32:52
What book would you recommend? This is my all
32:56
time favorite real estate book. It is called loopholes in real
33:00
estate by Garrett Sutton. And what I learned from him
33:03
just all across the board, I think has made it where for
33:07
me, my assets are safe and my real estate investing.
33:11
He really got me caught up on best practices. Yeah. And
33:15
Garrett was just on the show. So just go a couple episodes back and you'll
33:18
see him and his son, has a great conversation.
33:22
And then lastly, what single strategy process or tool
33:26
have you implemented that has had the biggest time saving impact to you
33:30
or your business? JD, I've gotta rise Garrett because
33:33
he's his Sutton Law is like my main attorney that I
33:37
use. And so anyway, that's really cool. I missed that episode. So that's really
33:41
rad. Shoot. Now I got so thrown off by that. What was the question you
33:44
asked again? What single strategy process or tool have you
33:48
implemented that has had the biggest time saving impact to you or your
33:52
business? So Asana or any kind of
33:55
project management software planning my week out ahead of time.
33:59
Ideally, I only work 3 days a week, 5 hours a day,
34:03
6 months a year. But I can actually do the things that I want
34:06
to. And at the end of the workday, I feel like that was
34:10
excellent. And if I didn't get to everything, that's fine because I have a
34:14
plan so I can change that plan. So anything Asana's free,
34:18
other things are free, but task management software for the win.
34:22
So one thing that I I gotta we gotta spend a couple minutes on there
34:26
is that you just said that you spend 5 hours a day, 3
34:30
days a week, and that's the financial
34:34
freedom that I actually think people are trying to find.
34:39
Could you talk a little, just spend a few minutes talking about the
34:42
perils and the work that it took to get to that point,
34:46
because I feel like there's a lot of people that run
34:49
ads and, make it sound like real estate is just mailbox
34:53
money. And it's the simplest thing in the world. But talk about
34:57
the heavy lifting that happened prior to that, to this point.
35:01
Yeah. I mean, I think the biggest heavy lifting for me
35:05
was really some mindset stuff. I didn't, I grew, when I grew up, my
35:09
parents were on boot stamps, that kind of thing, but just realizing
35:13
that I can do something, but then having the audacity to
35:17
do it. But in the beginning, when I was getting started, I
35:20
moved maybe 26 times in
35:24
2 years. And that had to do with a form of investing we do
35:27
called beyond house hacking with co living. But I didn't have a
35:31
truck. I told you, like I had the shitty Prius, so I had to get
35:34
furniture. So I had strapped stuff to the top of the Prius, right?
35:38
Like it's just making things work. But I would say the biggest
35:41
thing is that real estate has been done for so
35:45
long that it's easy to follow others
35:49
and putting in the work is not tough as long as
35:52
you're getting the results. And so, yeah, it took
35:56
me, what was it? So for me, it was 15 months to
36:00
get financial freedom. I kind of got lucky because of the whole living with hippies
36:03
and the living thing. But that was, I
36:07
mean, every hour I was on it. Right. I was a lonely single guy. I
36:10
was just working my guts out because at a certain point I wanted to have,
36:14
you know, what I have. And to emphasize, it's not just the 3 days a
36:17
week, 5 hours a day. That's only 6 months a year. And now it just
36:20
worked because I really enjoy it. And that's what, and when that
36:24
switches, because works great. Like if you get to do what you enjoy,
36:28
works great. In real estate, if whether it takes somebody 15 months or
36:32
10 years, that financial freedom is worth
36:35
whatever number of hours somebody puts into it, if that's what you
36:39
want. So that's my best on that. Well,
36:43
a great way to end this episode, Grant. I really appreciate it.
36:47
One last time living smithpro.com/mastermind.
36:52
And, really appreciate your time here. This was a great conversation. I hope you'll
36:56
consider coming back again sometime. I would absolutely love to be
37:00
invited back anytime. Thanks again for putting this quality show out here as this
37:03
program. If you learned at least one actionable step to
37:07
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37:10
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