$1M/Year with 9 Rental Properties by Cracking the Travel Nurse Code

this is the BiggerPockets podcast show 7 28. I feel like Airbnb is in the fifth inning right it's been around for a while they're pushing experiences now unique properties and going back to baseball terms like I feel like medium term rental space like the umpires are barely walking the field they're just chalking the field grounds crews out like that's how early we are in the game and the sooner that you get in the better you build your foundations the likelihood of you being able to succeed in the space is tremendous what's going on everyone this is David Green your host of the BiggerPockets real estate podcast the biggest the best the baddest real estate podcast in the world here today with my good friend and talented co-host Rob abasolo now we have one of the best episodes we've ever done for you today and I'm not exaggerating it's that good you're going to listen to it more than once it's going to inspire you you're gonna go follow the listener and you're gonna think gosh darn it that's why I listened to this podcast when you get that feeling please do me a favor and leave us a review on Apple podcast Spotify Stitcher wherever you listen to this because we really need those and you're gonna love it today's quick tip before we get to the guest is look for creative ways to exercise your leads Our Guest today tells you about different ways of finding guests for different asset classes of properties that you probably never thought of but he is making more than 10 times some of his competition by looking for ways to do it make sure you listen to today's episode all the way to the end because you are not going to want to miss this it is subtle yet brilliant Rob anything you want to say before we get started I have a feeling that if you listen to this all the way through you will probably listen to it again this is one of those episodes that I think people will reference for many years to come I'm so excited I'm so excited this is one of my favorite legitimately that we've ever done yeah I end up asking Our Guest today if he wants to coach me on the topic of today's show and so hopefully he does and we come back and you guys can follow along with the Journey of me trying to implement Jesse's method so without any further Ado we're gonna jump right into our interview with Jesse Vasquez Jesse welcome to the show to give our listeners some background you run a full-time midterm rental or medium-term rental business rather to cater that caters to healthcare workers you've hacked this Market segment and are here to give all of your secrets to our Bigger Pockets audience your business includes 27 properties in Texas Oakland and the Central Valley and you're a self-described go-giver did I miss anything oh man that sounds pretty damn perfect oh and also you're a fellow YouTuber right I am man yeah so I've been able to build a beautiful business you guys uh from both midterm rentals and short-term rentals and co-hosting other people's midterm rentals and specifically in the Central Valley in the Bay Area David wherever you're at San Francisco Oakland Berkeley all those beautiful places in the bay and even though the prices are high there we still are able to get a pretty solid amount of income in a high Market you know which is difficult to do in a lot of places so that's pretty much it man I worked in healthcare for 18 years so what'd you do in healthcare specifically yeah I was actually a business development manager so it's a fancy way of saying sales so I was a sales rep for a hospital for companies my job was to get you know permission for these hot doctors to have privileges at a hospital and also for patients that were discharging my job was to connect and schmooze with these case managers to get them to use me to send folks home like if they needed like so David imagine like if you fell God forbid that happens you broke your hip and Rob you are the case manager my job was to be buddies with you so that you would send me David as a referral and then I would get paid on that end so yeah it was a it was a it was a really cool business it paid me really well I was making over 200 Grand a year I had golden handcuffs at that time in my life um and I finally decided you know what I'm not doing this anymore plus I was driving the Bay Area from the Central Valley and for those you know it's like literally Dave you probably know Modesto oh yeah I um I'm from Manteca which is like 20 minutes away from Modesto holy smokes yeah yeah we're neighbors so it literally driving from Manteca Modesto to the Bay Area literally daily is I'm not kidding you guys it's like a three and a half to sometimes even four hour drive depending on what day you decide to go what accidents and whatnot so for me it was just burning me out that drive was killing me and uh I just decided one day I went into work I'm like I'm just done I'm gonna just go full in on on you know investing in in real estate and Midterm rentals this is fascinating also you can still catch me in Modesto at the Vintage Fair Mall once every two years when I have to go shopping for new clothes that's the best deals around so this is interesting because as people are going to see later on in the interview these sales skills that you developed in this business development role cap come in incredibly crucial for you when it comes to running a medium-term rental business and so this stuff is going to it's going to come full circle that's really good before we hear about your freaking Empire that you've been building tell me about your first real estate experience as a kid yeah so all right you guys have all seen National Lampoon's Christmas Vacation right I'm assuming yes all right so you know that Woody that station wagon so I need you guys to Picture This me being a nine-year-old kid in the backseat of this wool there's literally wool upholstery in the car my mom and dad were in the front seat and my parents were arguing as we were on our way to the courthouse they were arguing because they had tenants that were living in the property that didn't want to move they were like literally not moving that's my first introduction to real estate and I remember thinking like holy crap like I don't ever want to be in real estate because here I am as a nine-year-old boy sitting in the back of a courthouse my parents and this lady that was renting from them and you know the crazy thing David and Rob the judge looked at her and said this is not the first time this lady's been in here and I remember her name like specifically I'm not going to use it on the show but he said this is what she does so it's literally she would go and stay at people's places take advantage of them not pay their rent for months and then eventually go into court and then that's what it was so they was literally just repeating the cycle so that clearly had an impact on the way you decided to structure your real estate business before we hear about that I just want to commend you props for not saying oh there's a bad thing with real estate I'm just gonna throw the baby out with the bathwater just screw it there was a bad experience so many people take that approach instead you were smart enough to say well how do I eliminate the problem and maintain all the benefits so you figured out a way to structure things to where the tenants had less ability to professionally screw you over so like let's hear how did you first come up with the idea to invest in real estate the way you do now yep yeah so this is going to take me back to what I did at my my W-2 job I was working on the floors of the hospital and in California you guys know everybody says dude and bro and Man David Rob you're in Texas you don't know I guess you're you're here from California they say y'all in Texas y'all y'all y'all so there was this really sweet lady her name was Barbara and I was working at the hospital and there was a little you know we're on the floor and she was saying things like oh don't you know and such a doll and I'm just like holy crap where's this accident like I love this where are you from and she's like Fargo and I was like cool I watched the show like I get it now uh or watch the movie this was this was a while back and 2015 by the way and I was like what are you doing here and Barb was like oh I'm a travel nurse and I was like oh that's cool like where are you staying and you guys are not gonna believe where she was staying and Dave you might know this because you are from Modesto she was staying at Motel 6 on 9th Street downtown Modesto why because it's literally it is not a it's not a place where a travel medical professional especially a nurse is going to feel comfortable and I asked her this is my follow-up question uh how much are you paying for that place she was paying three thousand dollars a month for Motel Six that's what the the rent was for her to pay and at that time this is 2015 I could buy a property for under 300 Grand my payment would be 15 1600 bucks and they're paying three cases my brain was like boom I need to do this right now how do I figure out how to do this you started to talk to me about contracts which I already knew about um and everything in healthcare you guys if whether you're a doctor nurse clinician physical therapist everything goes around contracts housing is not any different it's it's everything in healthcare is based around contracts so I walked down to the HR department knocked on the door and said hey I've noticed all these clinicians that are Travelers here how do I actually become like a Housing Solutions provider for these folks because they're all staying at this crappy place and the hospital Doctors Medical Center by the way David was like oh we're actually looking for housing like how do we want to accommodate housing uh what property do you have and at that point I was just like tractor beams real estate I didn't even own my own house yet and I went and bought an investment property so that's kind of how it started my cousin is a nurse at Doctors Hospital in Modesto we have a lot in common here Jesse that's funny what's going on here so this is I mean we're kind of glossing over it but that's brilliant that you recognize the problem that you saw a solution that you just said I can buy a house for 15 or 1600 a month the nurse is going to be happy to pay three grand to have a house and not have to live in downtown Modesto that area's gotten even worse if you've been there lately it's kind of like over overrun with transits at this point so like they're not going to even feel safe leaving the hotel to get to their car is what I'm getting at and they're probably doing this at nurses hours right so graveyard shift swing shift they're coming in and out in the dark it's terrible and they don't have their own space like you know when you're staying in hotels like of ill repute the type of noises you're going to have to hear and the screaming and the yelling and just the overall chaos and nurses need a place where they can find some peace and respite from the the insanity that they're dealing with so you see all these things and it just clicks like oh this is what I'm going to do do you think that your parents background in real estate had something to do with your confidence level to say like okay I can jump in and meet this need in a business way yeah definitely man I think that's I think somehow subconsciously that burned into my brain like I need to get paid I need to make sure I get paid up front and then also my dad would always tell me like real estate is where most people make their Millions like you want to and build it's basically like a long-term bank account is what he told me verbatim that's exactly what he said he's like you buy a property you rent it it's just like having a large bank account that's gonna eventually pay you in dividends over years you know it's not like that you get make money right away real estate's not like that right it's a long game so he essentially burned that into me as a child like by real estate buy real estate but don't end up like me in court every six months and he knew he consciously he was he was in that specific space so yeah 100 my brain was like how do I do this how do I grow but how do I get paid every single one of these Hospital floors guess what was there a bunch of Fargo accidents don't you know and uh you know stuff like that and uh so I realized like holy crap the Central Valley has a such a need for clinicians in fact California Illinois Houston or excuse not Houston Texas um North Carolina and Florida are the most they're five underserved States for travel medical professionals and they're not going to be the pre-pandemic levels until 2030. so if you guys are in one of those states you have a long roadway to build a legitimate business that is housing clinicians because there's not going to be enough clinicians until 2030 is what the National Registry of travel medical professionals is predicting and you've just ruined those States for us by saying that on the podcast yeah so Jesse bring us back a little bit because uh you stated that you were making really good money uh at your previous job or at the job that you were working the W-2 multiple six figures and it is golden handcuffs right you're making money very comfortable you're probably past that threshold where yeah it's like you're very comfortable and you can probably buy whatever you want within reason and travel and do all that kind of stuff and so the difficult thing with making that amount of money is that when you start going into real estate you have to try to replace all that money uh that you're making get your W-2 with real estate which at that level takes a long time so tell us about that shift and that transition yeah I was I had a success with helpful fulfillment like I was happy I mean I was not happy with the job but I was happy getting the paycheck but um for me man it was like I just didn't want to do that grind anymore I was just done and one day I literally went into work and I'm just like I'm not doing this anymore I gave my resignation letter they let me go that same day and literally that was July 17th at 3 43 p.m I was in San Francisco I know the exact time date everything I knew what I was wearing like I remember vividly you guys vividly and from that point on my family was like Dave and Rupp they were like you were insane like why would you ever do that remember my daughter who was like 17 at the time 16 called my mom and she's like my dad just quit his job we're going to be homeless like literally my daughter called and told my mom this um because in Hispanic families you tell the moms the grandmas everything and then they're gonna get on me and I'm gonna be like oh God why'd I do this so um so that's what happened like literally everybody in my family was like you're so dumb like why are you doing this and um now they're just like you were right on we were we were supporting you the whole time we knew we could do it so it's tough man yeah and so you go into this you decide to transition to it obviously the the timing of going into real estate is is always like you just never really know until you make that decision and you march into the office tell us a little bit more about how your family took that yeah so Hispanic families are very like you go into a job you work your butt off then you move up to manager and then you move up to this you climb that corporate ladder so my parents were 100 like that's what you need to do like what are you doing um so it was not an easy transition I think that the first few months it was kind of like I had I had money saved by the way you guys I had like six months of like cash reserves and probably even a little bit more than that so that if it didn't work I can always go get a job somewhere else like I can I'm so I've been in this space for so many years that I can literally go get a job even today like I can go get a job right now if I wanted to um so for me my brain was like if I don't do this or if I don't try this then I'm not going to have any success and I'm going to present this later on in life granted I did give up a 200k a year job but I mean right after I did that you guys like everything just like took off I started teaching people how what I was doing and that was successful and then my my portfolio was you know growing my life has completely changed um I'm working way more than I ever have but I'm also making way more than I ever even dreamed about making and um it's just been such a beautiful ride and not only that but inspiring other people that are in these spaces like Modesto and the Central Valley and places all over the US are not big like you don't have to be in these big Urban markets to do extremely well you can be in the very underserved small market and have a pretty good amount of doors and build an actual legitimate business based off of relationships and I think that's where you know a lot of people can really drive home this this specific model so you mentioned that you're making more money than you ever have before can you give us a quick rundown of what your business stands look like today how many units you're managing and the revenue they're providing yes we have not right now I have nine properties that I own I just did my books and we did about 987 thousand dollars and that's gross in just nine properties and then I manage for other people and we're doing over a million that's short-term interest term off of 11 other properties so between the combinations two we're doing 2.1 million and then my coaching business is like that thing's going crazy right now and uh so just the combination of all those things and just keep in mind you guys when I talk about these numbers those are gross numbers you know the revenue uh if you own properties it's usually you know 40 50 60 is what you have to you know what I get to keep what I actually get to keep but with midterm rentals there's not as much turnover or medium term rentals there's not as much turnover there's not as much products that you need to use in these properties so we have less kind of um and Rob I've heard you mentioned this before I feel there's less wear and tear with having actual medium term rentals in my specific place so um yeah it's been it's been fantastic um this last you know couple years just the growth yeah for sure the wear and tear aspect of medium term rentals I you know when I first started doing it I was doing it incorrectly because I was really only cleaning after that guest checked out so if a guest was there for three months and we cleaned it you know it was a disaster but now what I've done is I send cleaners in every month now to do a checkup and to fix anything that might like to basically Point anything out that might need to be fixed for example my cleaner just went over to one of my midterm rentals last week and there was a mailbox that's attached to my house that was just on the ground and she was like hey this is broken and I was like all right I wish the the tenants would have told me that so sent my handyman so it's a good way to help avoid some of that wear and tear do you have anything like that that you do for your midterm rentals or do you just let them play out their entire lease yeah man there's a lot of things we do with our midterm rentals so going back to the contract that connecting with agencies or maybe we can drop in this in a second but we have car rentals so a nurse can literally hop on a plane end up in San Francisco or Oakland get an hour Uber into Modesto as they check in they have uh you know a car in the garage waiting for them we had a grocery delivery service like clinicians or resident doctors that are there we'll actually go deliver groceries if they want kind of like a shift and instacart before that we were doing that we're still doing that now so literally all they would do was work and we were supplying literally everything they needed from point A to point B and I think this is where you start building relationships like with the recruiters of these agencies their jobs are to place people in these specific jobs and if and if I'm able to be a person that solves problems for them then they're going to use me every time that's really cool here so you're a very TurnKey solution basically like you're not just housing you're also transportation and effectively food and I think obviously there's a lot of value there it's really really smart I don't think you know a lot of hosts and a lot of people in this space tend to really just stop at what they consider to be their quote-unquote job but this really does seem to provide a solution so if you wouldn't mind can you just can you walk us through a little bit how you structure your business yeah yeah so I'll kind of break things down for you so we would go out and do all these things so that these folks would literally go back to the recruiters and say holy smokes Jesse literally takes care of everything so once those recruiters find out about that stuff that's where I'm actually building market share with these actual companies and I'm actually building a business that I don't need to rely on Airbnb I don't need to rely on Furnish finder I don't need to rely on all these people like I am creating my own business and if I eventually want to sell my properties you guys guess what I get to sell not only my tangible real estate but also my contracts my actually legitimate business so I think that a lot of people kind of really think about real estate and they're just like oh cool this is just like a tangible house or a property but there's other things you can actually build that make in business and that's that's being one of them all right so you're talking about the the contract aspect of this walk us through getting a contract because obviously you worked at a hospital and you walked into HR like you talked about but the everyday person can't just I mean not without being escorted out by security but they can't just walk in the hospital and go into the HR department so how can the everyday person go about snagging a contract like this yeah an everyday person can go into the hospital knock on the HR department first off you can definitely do that but okay the smarter way would be to just call the hospital ask for the HR department and just say hey can you tell me what agencies you're working with that are on the healthcare side is there any specific companies you're connected to and secondary is there a recruiter that's attached to you guys that you guys need for housing you know I own I'm just giving example well I own I'm going to say five properties in the specific Market I want to be a Solutions provider specifically for them nine out of 10 times we'll have a HR department that will say yeah we use one company amn Healthcare or true staff whatever those are and our recruiters you know Barbara I'm gonna use Barbara again cool that gives me some really good information now guess what I could do I can literally call that company I can talk to Barbara and say hey I got referred to you from DMC they're telling me that you guys are connected I actually have properties here is there a way that you and I can connect and actually create a contract for these clinicians to come so and if they don't answer you that way guess what I can do secondary I can now we talk about business right I can now go on LinkedIn and I can create connect directly with that company connect to Barbara with her last name on LinkedIn and there's my back door into the to getting this specific contract again everything's about building relationships and you got to think about it just like if you're dating everything's very slow it takes time it takes energy it takes consistency but once you do that you guys and you're able to build an actual contract with these agencies you can get paid every time you get paid up front sometimes three months at a time so first last and deposit and you can really actually build a legitimate business and these agencies will go to you every single time and you don't have to rely on Airbnb or again we talk about furnish finder we'll dive in a bit but you can just actually build a legitimate business this way by just literally building relationships which is not an easy thing to do but it's it's possible and we can all do it now on Furnish finder there's something called unmatched leads and this is going to be a good tip for everybody listening right now take note of this if you if you get on furnished finder there is leads that come in and there's unmatched leads all you have to literally do is pick up the phone and dial everything one of those nurses and let them know what you're doing ask for their recruiter and what agency they work with and that's literally how you could build your business for free like you don't have to pay anything you know to do this you can literally do it for free so that's another way that folks can get into this space by going after these agencies by going on a furnished finder and what exactly I just I need some clarity when you say agency like you said call the HR department at the hospital and you say hey what agencies are you working with can you just clarify what kind of agency are you talking about like a staffing agency yeah so every hospital does not have enough clinicians to meet the demanded patients we talked about this a minute ago Central Valley doesn't have enough uh doesn't have enough clinicians to meet the demand for patients in the Central Valley David you might know this there's a lot of high Acuity patients which means a lot of folks here are sick compared to the Bay Area it's worse than the valley so there's just not enough nurses to meet the demand so these hospitals have to Outsource to be able to bring more clinicians in and they have to Outsource with agencies and they those hospitals typically have contracts with like say amn Healthcare which is National or huge true staff which is another big giant company Aya Healthcare is another big giant company they're National so they'll have one recruiter or two recruiters that literally the hospitals will deal with so if the hospital gives you that information then you can now reach out as a third party person and say hey I just got your information from the HR person at the hospital here's her name uh how how do I connect with you how do I build an actual business and or how do I actually build you know clientele with you guys what is it that you need or how can I assist and I think that's where you know asking the right kind of questions and making sure that you know you're a go-to person for them if you have multiple properties in the market that's better I usually tell people go deep not wide which means you want to have a lot of properties in one little market as opposed to like being spread out so far agencies like to deal with people that have more properties in one specific space yes are you basically saying like they they want to know hey Jesse when I call you I need you to have something available right and so if you keep saying oh all my places are completely filled up they're less likely to call you because it's sort of like a crap shoot with you right yep yeah so my most agencies will look at you if you have five or more properties you become on their like preferred provider list you'll actually become like a preferred vendor and that's what you want to be you want to be a preferred vendor not only on the healthcare side we didn't even dive into the insurance side of stuff but that is what's going to solidify you as being like an actual true player in that market if you have a one-off property here and there you're going to get bookings I'm not going to say you're not but if you have that portfolio of five or more there's tremendous more upside of being that number one person that they go to on a regular basis and I'm seeing this more and more where these agencies are now leaning towards like if you don't have five or more properties don't don't contact us like that's literally what they're saying wow so um anybody's looking to invest you got to have multiple doors and build an actual portfolio think big like from the very beginning like cool I might have my first store now but in you know two or three years or one year I'm gonna have five and you build in that specific Market I want to ask you about how you choose the market because I think you made a very good point isn't that this is not a thing that you can casually step into which at one point it was and so a lot of people hear the success stories from someone that says I bought a property in X City and it does great and then they go oh if I buy a property at next City mine will do great too and then you find out the competition is more Fierce the they have a head start on you if you if you can't get in with like you're saying a minimum of five properties in some markets not everyone but in some it might not make sense probably the areas where there's the most competition where they're you're making the most money it's a very smart and uh helpful point I suppose I would say for the listeners who are like oh I was about to go buy one in in Topeka Kansas maybe maybe I shouldn't I need to look into it deeper what about the specific property I don't want to go too far down this I just want to ask before I forget yeah are you always running to one nurse is it always a one bedroom property that's best or are there times where having two or three bedrooms in the same property is actually beneficial David that's an awesome question so for me I always I stick with two bedrooms and above uh any Savvy investor any intuitive investor is always going to have an exit strategy and for me that would be midterm first short-term secondary long term being last that gives me more exit strategies and more beds that I have the more opportunity that I'm gonna have especially during covert we saw this a lot and you want to be able to house those people and if you only have a one bedroom you can't you're not gonna be able to get that that extra income and agencies want to group people together that's kind of why they connect and a lot of times doctors will actually travel with their families so like we got a contract with UCSF and I'll give you an example it's a doctor that came from Europe him his family he's got two kids a dog a wife and they're they're staying in a property in San Francisco and that's what they do they'll pay and they're paying 14 Grand a month for a property in San Francisco they're not paying the agencies actually paying and the cool thing about the agencies is you can actually get these agencies they can be the leases on these properties so like in San Francisco or Central Valley we worry about like holy crap they're squatters I don't worry about that too much but a lot of people do these agencies are actually the leases and these are multi-million dollar agencies there's no way they're ever going to screw you over and that's one of the things that I love about this space too is that there's taking responsibility for the clients that are there they're taking ownership for that and any damages the agency is actually paying for it that is so smart so smart because you're not going to have a hospital that wants to take you to court and potentially be sued as much as you might have a individual that would be really enrolled the dice it's very similar to the advice I tell people who buy in college towns and they run out to the students I say don't put the student's name on the list but their parents name on the list you're definitely reducing your risk by taking that approach so we've talked about the way you get the contracts the type of properties to look for the level of commitment that you recommend before someone gets into certain markets let's talk about the actual Market that you Target and why you target it so what can you tell me about that yeah so this is this is perfect this is the bread and butter of this conversation you guys so anybody looking to get into a market here's what I suggest you do there's Hospital levels each hospital has a level one and level two Hospital these are like what you typically see like on ER Gray's Anatomy you guys have all seen that I'm assuming right it's his high Acuity a lot of like Rob watches that all the time so so you'll have like these high Acuity doctors that are there brain surgeons literally there's on-call people and I usually say look for a hospital has 300 or more beds and that is not including labor and delivery beds these hospitals are going to have way more turnover so if you look in the Bay Area alone there's probably I'm not kidding you probably like 15 level one hospitals these are massive so they have a lot of people coming in and out so level one and level two hospitals are very similar level three level four and level five hospitals those types of hospitals are more Rural and they also have a lot of clinicians that sometimes come into these markets so you're going to want to look at what the level is it's going to give you a better Insight on how many beds they have it's going to tell you a little bit more about how many clinicians are actually traveling there look at that first call the hospital if you can't get that information it's all public it's all public knowledge you can look it up but just call and say what level hospital do you have one of the other things that I do to you guys is I'll actually go on indeed.com and if you guys are all listening to this right now you can do the same exact thing too go to indeed.com type in Hayward California and uh whatever travel are in travel registered nurse and you'll literally see probably I'm not kidding you 30 or 40 different companies that are hiring for those specific people that's going to give you mindset that okay cool here's the demand in my market this is actually legit like this is today right now information then I can go on Furnish finder and I can see what the demand is on that side so furnishfinder.com stats will actually show you how many clinicians or how many people are actually looking for property in that market so you have these two different angles you have the factual data from airbn or from furnace Finder right then you have the indeed or Monster jobs which is actually people hiring for travel nurses right now and you can pick up the phone and that's another way to get contracts right there is literally just by doing a simple free indeed search are there any other creative ways that you're I mean it seems like you've got basically all these different uh I don't know places that you've kind of found on your own organically are there any other creative ways for getting some of these contracts or client it's into your your business there's so many creative ways man it's yeah I can dive into a lot of them like the healthcare is one of them so you guys know what Dave and Buster's is I'm assuming right you guys know what that is yes so they're built they were building a Dave and Buster's uh in Modesto a while back about two years ago um I saw a construction truck I literally went there took a picture of it called the company said hey where are you where are your guys staying that are working here and they were staying at Holiday Inn Express there was five rooms that they were paying for it was a thousand dollars a day to have these these five dudes working at this place they were all Engineers by the way so I just called that agency and said hey I can rent you guys a property for seven seventy five hundred dollars they can house all your people there like they're literally going to be saving thousands of dollars so there's different ways of doing things like you guys have all heard of um extended stay hotels of course Okay cool so if you literally just drive by there at 7 pm at night and you take pictures of all the work trucks extended stay hotels have literally massive contracts they're like the number one contracted agency with like construction companies stuff like that all you gotta do is literally pick up the phone take pictures at seven at night that's when the dudes are back or people are back at their at the place right and you just call those companies in the morning and say hey I noticed a work truck out there I have properties here can you tell me how many rooms you guys are renting did you guys contract with other people we have a safe comedy you know safe comfortable house that can house all your people that are working right now I can save you money what are you spending right now you just start finding out information about these companies and again this is like the intuitive side of things if you think outside the box you're gonna be able to build a business and I think a lot of times people don't necessarily think that way and these are creative ideas and ways that people can literally start building you know a six-figure business relatively pretty quick by literally just taking the time to call somebody and ask questions that's good man I love it I love it that I mean all right so I don't want to go down too much a rabbit hole on this but you did say something that really sparked I mean we could do a whole nother episode on this I'm sure but you did mention even outside of the the medical industry you talked about the insurance industry can you give us a little brief rundown of what you meant by that what that means and that entire side of the the MTR business yeah so medium term rentals in the insurance companies so folks that are displaced from fires floods or any kind of catastrophic event so just by the way you guys every 88 seconds in the U.S somebody loses their property due to a fire flood or something like that there's a lot of these claims so there's companies like ale Solutions Dan housing these are like two large-scale agencies and what they do is if somebody loses a property they have to relocate them right away these agencies are actually paying it could be 10 of the property value that they lost per month so if somebody has a you know a million dollar house they're paying 10 percent of that per month on housing form so you know that's over 10 grand a month they're specifically paying for these properties so that's a huge plan it's been something for me that's been able to grow tremendously with just two properties like in cash flow 10K a month off just two insurance claims and all these things that we're talking about a second ago building relationships connecting with these folks there's somebody called the relocation specialist and you guys can all go on LinkedIn right now and you guys can all look up these people relocation Specialists are basically the the hounds the the bird dogs for these families to find another property so if you connect with them you build rapport with them they're going to send you these clients can you can you clarify really fast you said ten percent uh does that mean if on a million dollar house roughly they'll give you a hundred thousand dollars a year for a housing allowance yeah every housing allowance is going to be different but yeah so you can that's how you can look at it at yours if the family lost a million dollar property they're going to be able to give you you know 100 000 for that year so for me in the Central Valley you know I have properties are 1500 to 2K a month and we're renting it for 8 000 like I'm cash flowing literally 5K a month from one property and people are doing this all over the US in a lot of different places David you're in the Bay Area same thing most properties are over 1 million one two million so these companies are paying you know 14k like I mentioned in San Francisco uh 9k in Oakland um Berkeley we have 11k so you can get substantial income even in markets that are Urban that are more expensive and that's through building relationships Jesse on on working with these insurance I guess relocation Specialists are there any tips that you might have for building rapport with them yep so what I typically do is I'll get on a call with them and I'll say hey do you guys have five minutes that I can have a conversation with you and your entire staff and they will say like yes or no or whatever so I want to get on a zoom call with them so what I'll do is I'll actually we have this beautiful thing in this world called doordash right you guys heard of that so actually find out what office they're working in I will find out every single person that's working in that office what their name is what their favorite Starbucks drink is how hot they're they like their Starbucks drink and I'll literally order instacart or doordash food to them get on a five minute presentation talk about my properties I will literally have everybody's email favorite Starbucks drink and that's how I'll build my business it's almost like you're meeting somebody in person but you're talking to them over the phone so for me that's again going thinking intuitively you guys is not a lot of people think like that me coming from my background of being in healthcare and this is what I did for a living it's the same kind of concept you want to build relationships you want to be cute but not forgettable right you want to be somebody that they're not going to forget about and I promise you now most people listening to this the those relocation Specialists aren't getting Starbucks drinks people aren't buying them you know Dunkin Donuts we're thinking different we're building a business and a brand and I think that at the end of the day you have to think about those things and just get 5 min that's all you need is five minutes with somebody to talk about what you're doing and how you can help them I want to highlight something I think you're doing so much better than other people that have not had as much success it comes down to the mindset and the approach you're taking because you're approaching this as a business not a replacement for work so many people get into real estate investing because they don't like their job and they're like all right I just want to get a couple houses and never have to work again once I've bought the properties I've done you're describing it so clearly and it really is simple it's not a complicated strategy but it isn't easy it doesn't just fall into your lap right you got to do a little bit of work learn their Starbucks drink learn what instacart is learn what doordash is learn how to use zoom have a clear delivery when you go to this half hour meeting that you explain what properties you have you probably have a slideshow that's prepared or something that they can see pictures of what they look like so they can feel comfortable here in my opinion the future of real estate investing looks more like what you're describing then what it's look like looking back over the last 20 years which was buy it set it forget it it now is going to require an active role if you want to stay on top and we should be very grateful for that by the way because if this wasn't the case Blackstone would buy every single property and push us all out of it and we wouldn't be able to have a business anymore right it's these detailed nuances that allow us to compete with the big dogs and that is why podcasts like this are so important because you can learn these sort of like techniques that worked in other parts of business that will also work in real estate okay Jesse you've mentioned instacart you've mentioned offering rental cars like everything you could do to make this convenience I also I keep highlighting everything you say that's good it's brilliant you're talking about customer service you're not saying I want to buy a property so I don't have to cater to people you're saying I'm going to buy a property and cater to people through that property which gives you an edge what other amenities can people be thinking about that will improve their odds of being successful is design super important are there little details or things that can be left in a house that will improve the actual experience a person's having so that they go to their HR department and say I loved it I want to stay with them again what are you doing yep yeah so there's two things I want to highlight here David as more regulations come into place from the short-term side you're going to see more investors looking at the midterm rental space right now the U.S only three percent of the entire us is regulated by short-term rental regulations in municipalities three percent and it's expected I was just reading a study it's expected to actually triple this year so you're going to see more people that have these beautiful sexy Rob like you airbnbs that are going to get regulated then what are you going to do next oh I'm in a midterm it so you're going to start seeing a lot of these properties come into this space that are beautiful sexy that have all these cool things in there but at the end of the day you want to be very thoughtful and insightful on design you want to be most places on Furnish finder and everybody listening this right now if you go on a furnish finder it looks like most properties on there look like it was a hand-me-down somebody lost their family member and they decided to put that property Grandma's house on Furnish finder literally that's what they look like so right now it's a Competitive Edge where you can have a pretty decent looking property you're probably going to do well so you want to make sure you design it with intuition as far as what kind of clients you're going to go after if you're going to have nurses you want to have blackout curtains David you brought this up a minute ago nurses work from 7 PM to 7 A.M they worked the graveyard shift guess what they're doing during the day they're sleeping so you want to have blackout curtains box fans are really important I've had so many requests for box fans we have those in all of our properties now noise machines really think about you know the design think about the little amenities they're going to help them sleep at night or during the day as a former police officer who also had to sleep during the day for much of my career I can say with a resounding yes to everything you just mentioned the box fans are huge it's hotter during the day right so it needs to be cooler and they may not want to run the AC or may not be able to get the room cool enough to be able to sleep and it drowns out all the noise and I still have blackout curtains in my room because it was so hard to sleep when the sun was up so these are things that like you that set you apart from the competition that can only happen at the micro level that's what's so important if I think about the information you're giving and the strategy you have is it is it's micromanage which which puts the power in the hands of the investor as opposed of the huge freaking corporation that can go by 3 000 properties in every major city and just try to push us out so that we can't make a living like this yeah well David there's actually REITs like uh Greystar all these big companies are actually in the medium-term rental space I don't know if you knew that or not over the last six months they're actually allocating certain amount of properties and we've also lost with Airbnb right they're allowing midterm medium-term rentals in their property so they're actually doing the same same exact thing that I'm talking about here just not on that super intuitive level so we're going to see more and more of this happening and eventually one day my goal is to have such a big big portfolio that smart institutional money comes in and buys my property and they buy my book of business you know that's something to think about that's my exit strategy for me thinking later on is I have you know I was talking to a friend I just I'll talk about this real quick this guy owns 200 Doors in the midwest I'm literally making just as much as he is with 200 doors with literally uh 10 properties literally 10 properties so if you do things the right way and you're really intuitive out you can make a pretty substantial amount of money it does take more work though David you mentioned it perfectly like it takes more work and most investors are not willing to put in that work all right Jesse I have so many more questions but we are getting towards the end here but I'm sure that one of the more common things you hear are the squatters the squatters Jesse I I see those comments all the time on midterm rental and medium-term Rental comments or on YouTube videos and on threads do you make your tenants whether they're through furnish finder or through Airbnb do they all still have to sign leases yep yeah they absolutely have to sign leases and we have addendums that say that they're there for a specific amount of time that they're not considered long-term tenants even though they are there for over 30 days but again go back to what I talked about earlier you guys most of these contracts that I get these agencies are the leases so I don't have to necessarily worry too much about and these folks are professional too by the way you're not going to have a nurse that's going to squat at your property you're not going to have you know guys that are working for Dave and Busters these Engineers they're not going to just be like oh we're not going to pay anymore so I think you got to screen people just like you do with long term it's the exact same kind of concept I think people just take this to way in extreme in a what if scenario and most of the time this doesn't happen on a regular basis and it it can yes it can but you got to protect yourself in a way that if you can get these agencies to be the least leases awesome but you just got to do regular screening that you typically do with every other you know tenant that you have you know the Airbnb version of it is okay so long-term rentals are what do you do if the toilet overflows midterm rentals are but what about the squatters and then Airbnb is but what about an LLC do I need an LLC those are the three main questions I hear in all of real estate toilets I love season squatters have cost people more money than anything else that I know of in my career those concerns about toilets yeah there always is gonna be a challenge but you have to learn to enjoy the challenge because if it wasn't for the challenge you wouldn't have the opportunity if it was super easy and nothing went wrong people with more money than you would have already stepped in and taken all the opportunity there'd be nothing left it's these little tiny paper cuts that are annoying that stop people from being able to do it at scale and so as the mom and pop investors the people that are listening to our podcast that are all trying to find Financial Freedom through real estate are looking for opportunities you actually should be attracted to and drawn to the the obstacles to success that you may find because that means you're going to have an opportunity where if it becomes too easy to do it you will be pushed out and we've seen this over and over and over through so many different industries that like I actually feel better about something like this Jesse and the method you're describing because it sounds safer and like it's a more defensively sound option compare that to buying a 400 unit apartment complex that's some massive Corporation can buy hire one property management company to take care of it and do nothing that's going to be much harder for the small person to be able to get into that space than this one totally 100 agree and you're gonna start seeing more of this stuff happen like I'm like we're right now we're I think I think about medium-term rentals as Airbnb in 2007. there's no there's no property management software out for it there's no price Labs these companies aren't necessarily making anything for it so imagine being able to know where Airbnb is now this is where we're at in the in this the space like I feel like Airbnb is in the fifth inning right it's been around for a while they're pushing experiences now unique properties and going back to baseball terms like I feel like the medium term rental space like the umpires are barely walking the field they're just chalking the field grounds crews out like that's how early we are in the game and the sooner that you get in the better you build your foundations the likelihood of you being able to succeed in the space is tremendous and I think there's just so much opportunity for people and they might not necessarily see it like that but I do I'm all about like skating to where the puck is going and like I see that you know the bend is there so that's just my my two cents fantastic man I'm glad that we had you here to share this information before anybody else heard it this has been really good we're gonna move on to the next segment of our show it is the famous four at this segment of the show Rob and I will take turns asking you the same for questions we ask every guest every episode question number one will come from me and that is what is your favorite real estate book my favorite real estate book is called loopholes in real estate that was the first book I ever read in real estate and it was basically like tax stuff it was uh how to find your first property it was part of the Rich Dad Poor Dad series um you guys probably never heard of it it's not really that huge of a book but that was for me my introduction to actually investing in real estate and I kind of go back to it every now and then so it's called loopholes of real estate awesome and number two what's your favorite Business book favorite Business book is the e-myth so the e-myth I'm sure you guys have heard it it is about removing yourself from your business and that's where I'm at my life is only doing the things that I'm uniquely qualified to do and everything else is going to be delegated to people that can handle it and that's going to allow me more time me to actually focus on the actual business in order to grow an actual legitimate business you can't be the guy that's doing everything all the time everywhere all at once second possible great book would love to read it someday uh number three Hobbies what do you do whenever you're not out there crushing the midterm rental game uh I play guitar I love playing guitar drums bass guitar uh baseball I'm a big baseball fan I still play baseball even at 40 years young I still skateboard you guys I can still kickflip my I have younger kids I still go out and skateboard with him so I stay young and hip and I'm still like a cool dad you know so that's those are my hobbies it's always funny when we ask the hobby question of anyone that has kids it's like the biggest struggle ever to try to find anything to say because I think when you have kids they are your hobby like you're like I do real estate that's my hobby I freaking have kids what do you expect out of me here all right my last question for you what sets apart successful investors from those who give up fail or never get started yep I think grit and having a mindset that is going to keep you going is extremely important I think a lot of times most of us will run into an obstacle and you just talked about it earlier David those little you know those finger Cuts those simple things that people just like oh I'm not going to do this anymore like it's about being consistent the more consistent you are the more reps that you have the more opportunities that you have and I think that being able to build a business takes time it takes energy and it takes consistency amazing well Jesse tell us where people can find out more about you on the interwebs Instagram YouTube all that kind of stuff yep yeah you can find me on Instagram at the real Jesse Vasquez I have a website the real jessievazquez.com and YouTube you can type in Jessie Vasquez on there as well so and one little quick thing if you guys don't mind me saying this there's a midterm rental Summit coming up I've actually linked up with furnish finder it's going to be April 30th to May 1st in San Diego at the Mission Bay Resort so head over to MTR Summit or the midterm rentalsummit.com to pick up your ticket I'm extremely excited about furnish finder jumping on to jumping on with me and we're you know hosting this first ever midterm rental event very cool everybody go follow Jesse Jesse you are one of those people that you're frustratingly smart and very good at this and I learned so much from you and I'm always like I wish I wish I could be that smart your content is really great very knowledgeable so thanks so much for coming to share uh David where can people come and find you if they want to get in touch connect do all that kind of stuff yeah please do you can find me on Instagram or everywhere on social media at David green24 there's e at the end of green and now you can find me on YouTube there as well so youtube.com davidgreen24 we'll take you to my YouTube channel and there's real estate agent advice there's loan officer stuff there's investor stuff there's walkthroughs of my properties there's all kinds of cool content as I'm trying to become more like Rob and less like me Rob how about you uh you can find me over on YouTube at Raw built and Instagram raw Bill and lastly if you like this episode of this episode got you fired up about mtr's which I know it did and if it was useful and you want to get into the medium term rental game then consider leaving us a five star review on the Apple podcast app or wherever you listen to your podcast the five stars really help us get served up to new audiences so we can teach other people how to get into the medium term rental game and the real estate game all around so that's it please leave us a five star review would mean the world to us all right and that is our show for today Jesse thank you so much for being here man this is one of the better interviews I think that we've ever done tons of good information you're a very good communicator I hope everybody goes and follows you and I'll be reaching out to you myself because I am a budding medium term investor myself I've got three properties being rehabbed that should be coming online so I'm gonna get your information and make sure we stay in touch and maybe we can have you back on and we can kind of share what's been going on with my properties and what how you coached me what I did that could be a cool experience that we could have this is David Green for Rob the short-term specialist Abba solo signing off [Music]

Channel: BiggerPockets

Views: 229,434

Keywords: rental properties, rental property, travel nurse, traveling nurse, medium term rental, mid term rental, short term rental, airbnb, furnished finder, jesse vasquez, travel nurse housing, investing in mid term rentals, travel nurse house, cash flow, how to make a million dollars, make a million dollars, millionaire, real estate, real estate investor, real estate investing, invest in real estate, financial freedom, invest, biggerpockets, biggerpockets podcast, podcast

Id: ZEZGjZG3N84

Length: 47min 43sec (2863 seconds)

Published: Thu Feb 16 2023