George Salas has built an incredible short term rental business on Airbnb and VRBO in such a short amount of time.
Today his business brings in over 6 figures of gross revenue a month.
In this video George talks about humble beginnings as an immigrant, how he wound up over $400k in debt, and how real estate investing and vacation rentals allowed him to get out of debt and come financially free.
Transcript:
Chris Bounds 00:00
Hey, you’re about to watch an interview that I did with George solace, that king of short term rentals. He’s absolutely crushing it going from $0 in revenue during the pandemic to now like well over six figures, and stay tuned towards the end because he actually goes through a few case studies where he shows you the actual gross profit and net profit that he’s making on some of these properties.
And I think you’re gonna be blown away with what some of these properties are generating. So hope you enjoy the interview. Hey, everyone, I’m here with my buddy and absolute all star. He’s like a rockstar anywhere you see him on Facebook today. Kill it and short term rentals, George sauce, real estate investor, short term rental specialist who throughout the pandemic went from zero to like, six figures grows in income just crushing it monthly. How’re you doing, George?
George Salas 00:50
Chris, thanks for having me brother. I am doing wonderful man. Just just making it building it and very blessed man, thank you for having me.
Chris Bounds 00:59
Absolutely. It’s been really fun watching the your your story transpire. And when we get to know each other, just a little bit, probably a little bit before the pandemic and then been watching you get into short term rental game, which we were kind of dabbling into. And I’ve just seen you absolutely explodes.
Explode that business to the point where now you’re sharing that with other folks, because it’s definitely a very hot topic, a very fast growing industry right now. And I want to unpack that because I know, there’s a lot of folks that have been able to get a lot of value, if they’re looking at whether they’re actively running short term rentals now, or if they’re looking to get into the market and
George Salas 01:44
ready. Let’s do it, man. All right, cool.
Chris Bounds 01:47
Um, to give a baseline for what like anyone that if you’re in the Houston, Texas area, and you’re in real estate investing, you know that into ourselves. Outside of that people may not know who you are, what is your business look like today? Who are you? What are you doing in real estate
George Salas 02:05
all together? We’ve got four lines of business right now, right? We are essentially in starting from the marketing and for the front end, how we are acquiring our clients, either for partnering for properties. And just for you know, all together just in our in our full range of businesses, right is by marketing ourselves as Dino big guys to go for the short term rental space here in Houston, all across the nation. Right.
And that looks like we’ve got an event company, right. That’s who acquires our clients. And we get a lot of properties. From there. We get consulting clients, and we get partners, right? We have we purchase real estate, we essentially also rent real estate rent properties from other landlords. So we were working with, you know, various landlords, property management companies, wholesalers, we’ve got bird dogs, and and now we are launching our acquisitions. Line, right? we’re relaunching that because we have that back in a day, right?
Well, before before I even got into short term rentals, I was wholesaling and flipping the whole nine yards, right? Yeah, that’s what we are. I totally I’ll get started. Right wholesaling. So essentially, we do it all, so that we can grow our, you know, passive income to short term rentals and not saying that children are passive, I’m saying, they’re passive for me, because we built a business that allows me to be passive, right? And, yeah, that’s pretty much it, you know. So events, coaching and consulting, acquisitions and property management. Yes, you’ve
Chris Bounds 03:39
got a full suite of Systems, I guess, in your conglomerate of ventures there. But the events, it’s educational, so you’re educating both the end consumer, these are folks that you may end up working with, whether you’re doing an arbitrage or buying their house, or other investors who want to get into the game, but maybe they find a deal that they don’t want and that you you do want.
So you put into the portfolio. I’d imagine maybe there’s some private lenders who like what you’re doing, and they’d be happy to fund your projects. And then there are folks that they want that more hands on, you know, understanding to work with someone who’s been there, done that. So they’re willing to get get coached or go through any training that you have that kind of sum it up.
George Salas 04:27
Yeah, I mean, essentially, we, you know, we work with a variety of real estate investors, that’s who our client is the real estate investors, and I like working with investors. I’m an investor myself, right. And when you work with investors, they have the mindset to be able to take things to the next level, if we need them to step up and go out there and negotiate. They’re going to go on negotiate, right.
So yeah, I mean, we work very hard to you know, to build a portfolio and to manage our properties to teach people how to do the same, right. So we’re very successful at building other people to do this. Same, right. And you guys do short term rentals, too. So you’ve kind of asked me a couple times, and we’ve had a conversation. But yeah, we love the market. We love just the impact that we’re making in this world. Awesome. Awesome.
Chris Bounds 05:12
All right. So how did you get started in real estate? You hinted on the wholesaling, flipping, I know the game very well. How’d you end up getting getting started prior to the short term rental game?
George Salas 05:25
Absolutely, brother. So um, I’ll make this like a two, three minute, you know, build up of my story where like, essentially, I’m from Peru, right. And then when I was in Peru, my parents got divorced. And I went to live in a little town. So I grew up in my Adobe, in an adobe house house melted, and I grew up playing soccer in the streets. And we moved to the US in 20, in 2000, right, and, um, you know, I didn’t know any English.
So I moved here, you know, I was like, Oh, my God, I always wanted to own my own business. Right. So, as I grew up, I was just trying to find myself as we all do, right? We did try to find in that search, and essentially went into the industry of hospitality, right. So I was an event marketer, I was a waiter, bartenders manage restaurants and bars, you know, and then I did the marketing for that, right.
And that did this for 10 years. So I spent 10 years meeting people and, you know, sort of building relationships and being, you know, marketing venues, marketing events, marking parties. So, that led me to build a nightclub, right, so I opened my own bar, my own nightclub. But I partnered with another guy, and I really didn’t know very much about real estate about building about, you know, you know, really opening up a, you know, an actual brick and mortar business. Right. So when I jumped into it, I was more of like, a second or third command, where I was just doing the marketing and, and hopefully, to let somebody else run the entire thing. Right.
So because I didn’t really worry about and I trust it, you know, I went for, you know, I didn’t have the precautions, right, I didn’t have I didn’t set up myself for success. So I will essentially watched it all fall apart, right? So lost over $400,000 from this big joint venture investment that we did to a to a nightclub, you know, and this is in 2016, when we opened it, and then ended up shutting in 2017 in 2017. And then I’m sitting, you know, in my apartment at the time, I have nothing, right? I am. I don’t know what to do with myself, right? I’m crying and I can’t breathe. And I don’t know, I’m just laying on the floor.
They’re lost. And I really didn’t know what was next. So I got a phone call from a friend of mine. He’s local here. And I’m sure I always give him the credit, you know, because he really did take me there. I went to this house is Brett Franklin. And we literally I was sitting I was just a younger version of this guy. Right now. I’m very naive on the sense of business or real estate, right? sat there for about three hours. And when I walked out of there being you know, Brett, this guy is a hammer, right? Ooh, you got to do this boom, boo, boo, boo, boo.
So I walked out of there with a vision. And I knew that I could create the vision, right? So I went and started studying and learning real estate, he, you know, he was flipping at the time. And I wanted to do fix and flips. So I went to learn everything about real estate, I went to all the seminars, here in Houston, I went to all the networking events. That’s where I met you, right? And I met everyone at the networking events, I build relationships with all of all of my friends that, you know, I can officially call friends now. Right? So that’s where it all started. But then I’ll say, okay, how am I going to do this with no money?
I was still working at the club at the time, right? I was still working at one club, that I had to go back and we know sort of ask for a job again, because I lost my nightclubs. I went from business owner, to back to employee, right, I stepped it down. So it took me about three months to get my first real estate deal. But I got my first flip in February of 2018. And we closed that out, we sold it in you know, towards the summer, you know, maybe made $46,000 On my first deal. I was really happy. But then I have more deals that I was putting together with private lenders with different partners. And those were different flips, right?
And then I figured out what wholesaling was and it was like, Oh my God, you can wholesale a property and make 15 $20,000 or $10,000 and not have to buy it not have to put up a bunch of cash, you know, it’s putting up you know, 500 bucks, or it’s money here. 100 bucks there. You know how that game goes, right? So, and then I made $90,000 In a period of six months, your whole selling. So I was like, Oh, this is really good. What am I gonna do with it? Right and I discover what’s true. When I was maybe a couple months into wholesaling, and my goal was to really create a cash, big cash chunks, and invest in my short term rental business, I did that, you know, as I was getting started in real estate, and in a period of six to seven months, right.
So I launched right after that, in 2018, I launched my first 10, Airbnb, and there were 10 apartments. And then these apartments, were doing good at the time, right? They were doing fine, because I was managing everything myself, they’re making, you know, anywhere between 512 1300 bucks. And when you are working in your business, you know, your vision is narrow, but you’re still making money, right? And essentially, I was I was cured from one thing, right? The one thing was that I needed cash flow, right. And I was hurting because I was waiting two, three months for these deals. And then all of a sudden, I had this really good month in the middle of summer of 2018. And I made $62,000 from wholesaling.
And that’s when I took, you know, part of that money and invested it into you know, $5,000 per apartment, right? I would rent the apartment for 1000 bucks, you know, put another deposit for 1000 out furniture, but 3000 you imagine what kind of furniture is that? Right? Like, you know, it was just a little 600 square foot studio and downtown and Montrose. Right. And then I realized that that was the solution. That’s what I needed to get on my feet and build something because sometimes our problem is that we are narrow minded, we’re not really seeing what we need. So I figured out what I needed which cat which was cashflow in short term rentals and Airbnb pure that now I needed to figure out how to scale it make more money.
So started getting more apartments, right by the end of 2019. I have 35 Apartments at five houses. And you can imagine 35 leases and all apartments COVID hits. And now all the apartments are empty. Everything changed. I don’t know what to do with my cell begin I’m like, Oh, wow, 18 hour days trying to figure out how to play get displaces worked. And Airbnb is restricting people from, you know, booking these apartments, right. And then my house was were just actually doing completely fine. I realized that my apartments were empty, and they were making almost non existent money, right. And in that month of April, when and when COVID really spiked up was terrible, right. And it was a loss for me. But then I realized that the houses was the way to go, right? They were the way to go. Because my house is even during COVID.
They were they were making money, right? And so I started transitioning to houses, that’s when I also got the spark, right? I was trying to figure out what I needed to do to fix the business at the time, because you always does not really go up and down, right and don’t be wrong, being successful. And Airbnb and all this, all of a sudden you get shut down again, by the pandemic have to figure it out. And I did, right. And I went, I took my business from doing you know, 50 to 60,000 a month with all these apartments, right?
During the pandemic, which is barely breaking even, to 150 Plus, per month, right. And this is with the houses. So what we’ve done is we’ve transitioned got rid of all these apartments and transition to houses. Now these houses, you know, they’re bigger square footage, or single family residential, and our model was turning these regular mid houses into beautiful, beautiful properties that people are going to pay top dollar and premium for. And that’s how I get started.
And I came up to today. So today, I am just honored to have awesome friends like yourself, I surround myself around super, you know, super high achievers. And, and that’s what you’ve got to do. Right? You got to elevate yourself. And now you know, I’m happy and honored to say that I love elevating others, just like I elevated myself.
Chris Bounds 14:00
You can tell you’re excited about it. It just kind of pours out so good. But one side question that I had that kind of popped into my head. Because you had so much experience in the hospitality sector service fields prior to your real estate ventures? How much do you think that that played into being able to solve some of these unique problems to be able to get a product online that’s going to serve the customer and they’ll pay you top dollar for?
George Salas 14:28
Well, at the beginning that experience was good. But my product was not the right product. Right? It was a good starting point. And everybody needs a starting point. You just need to start right so just because I launched you know with apartments it did my experience helped me a ton being able to deal with these guests and solve these complex problems. Right, which is part of the hospitality. But then my starting point was not my end point. It was not my midpoint, right. We journey long
Chris Bounds 15:00
way. So it sounds like it helps you tremendously. You knew what to do. And then once you got there, you realize, hey, wait, there’s actually a better thing that we can solve for them. Pandemic forced or not. And I’m going to more focused on houses. That really clicks all in now.
George Salas 15:20
Yeah, absolutely. It clicks. Better than that.
Chris Bounds 15:26
So you’re targeting houses, so apartments pretty much out of that for now? Um, one common question. So for those looking for cash flow, and you mentioned that Airbnb is not necessarily passive. I mean, it can be if you got the right systems and team in place. But for landlords out there that are focused and this is mainly me, long term investors, long term rentals, what do you look for that, you know, that, hey, this property would make a really good short term rental as opposed to a long long term rental, or how did the to compare long term rentals for short term rentals.
George Salas 16:06
So if you’ve got a long term rental, I mean, obviously, you’re going to look for, you know, something that’s going to be long term that has, you’re going to buy in low and obviously get as much rent as you can, you can indeed, that’s typically going to be smaller, you know, smaller properties with smaller neighborhoods, right. So I wouldn’t say as much as much of a high end neighborhood now in the short term rental space to be really profitable, you can’t take that model, but switch it, step it up just a small notch to media houses, right? So instead of 150,000 180,000, you could take you could take these 250,000 $300,000 houses in really dial it with the cash.
Now, I’m not saying that those properties that are good long term rentals wouldn’t make good short term goals. I’m just telling you that these a little meet, there’s a sweet spot in there. And it’s that that area, right? But now, they’re also amenities in a long term rental, you have to, you know, you don’t really worry about having a really beautiful backyard and in a pool, right? A pool is more of a liability, right? In the short term rental land, you want to have as many amenities as you can have pools, hot tubs, you know, in all of the above to make just legitimate experience. So think of a short term rental as, as a as a unique offer. Right? So what you want to do when you’re selling anything in life, is create as much value as possible.
Chris Bounds 17:35
It’s like the a motel versus a Hilton. Like a motel that’s the place to crash no amenities. You want to make a Hilton experience in a single family house it no I say that maybe you get a better way of defining that. But it’s that full experience with amenities with the actual furnishings and everything from the point they talk to you to the point they’re they’re checking out.
George Salas 18:04
Yeah, me. You said, there’s another way to say, Yeah, we create Hilton experiences and just a regular house. Right. So yeah, I mean, that’s it, Chris, there’s no, there’s no fluff about it, you know, and you have to, you have to deliver value in the way that you know, Airbnb, the plan to OTAs online travel agencies work, you know, you’ve got to be up there. So you’re creating an experience, because you’re offering a very cute property, right? And just because the amenities are there, you also no need to know how to market them. Right. So the marketing, part of it is one of the pillars that we teach, and is very important, right?
Chris Bounds 18:44
Oh, absolutely. Yeah. If no one can find you you’re not making any money, regardless of what kind of product you have. Now Airbnb VRBO, that, that those platforms make it easier now. But another thought that came to mind was when you’re talking about how the difference in the quality of the property, now quality, relative term, but even if you take a really nice long term rental, by and large, and and I’m sure we can, we don’t need to go on a big tangent here because I know I can because I’ve been sued by a developer for having Airbnb. I think a lot of communities developers Hoa is they don’t quite understand the Airbnb industry.
And when I talk with other investors, I just tell them like, look, they don’t understand if we can educate them then then a lot of these communities would probably be okay with it. Because at the end of the day, me I own a lot of long term rentals, the end of the day, the moment that rent that house is rented. I am done with maintenance outside of something crazy happens and they call me like a tree fell on it or whatever I’m done with it. They mow the lawn at their own expense and frequency. They take care of everything and they need to be doing that but it is their responsibility. We just know tenants It’s how they prioritize maintenance.
Not very much, right? Right. So the best condition that property will ever be in is the day it’s leased. All the way until the tenant moves out, we’re going to go back in and do another make ready within Airbnb or short term rental completely different, it must be constantly maintained at its highest potential highest condition to attract the customer, because the moment you slack on that, they’re just gonna go say, stay down the street, the next guy who’s got something better. So I think if we can educate communities like that showing, like, hey, like, hey, look, no, I’m actually helping the community by keeping this house in like tip top shape. Um, call me if you got issues and any guess but I’m actually helping by keeping the property in such great shape. Yeah, I
George Salas 20:52
love the way you look at it, you know, Chris, you have to be able to mean, first of all, this, the House does have to stay in great shape. So it is an asset for the neighbor right now. Now, there are some instances where, you know, maybe the tenants are going to leave things out on the street. So you do have some issues. But there are always ways to solve that. Right. So it could be bad, it could be good for the neighborhoods. But every every problem has a solution. Right? And that’s what we’re here to do. We’re here to solve problems and big problems, solve big problems, creates, you know, even a better thing for all of us, right? So. Yeah, man.
Chris Bounds 21:30
So there’s Airbnb, short term rentals, hot topic. It’s still in relatively, it’s still a very young industry, ton of growth, a ton of change, like, we don’t know what the industry look like in five or 10 years from now. Other than it’s going to continue growing. For those who are looking to get in to this get their first short term rental? And I’m sure you, I know, you have a lot of people asking you this question, what’s your advice?
George Salas 21:59
So you know, what I would tell you don’t wait right in, and it’s a great industry, but you got to know your numbers, if you know your numbers, you going to be successful. Now, if you go into just getting started, right, there are many, many mentors out there. I mean, you can come hang out with us at the boot camp, you know, and learn from us three days live in person, or you can maybe jump on one of our webinars, you know, one of our online trainings, you know, wouldn’t have to be me go out there. And if you’re thinking about it right now, don’t think anymore, stop being on the fence, jump over that fence and go get it right. Imagine if all this one rental did bring you $2,000 a month, you know, would that be worth it?
You know, imagine if it, you know, it made you change in your portfolio. So that, you know, maybe you could change your five long term rentals into short term rentals, and you hire someone to sort of manage that, right? And at the end of day, instead of making $400 Now you have a portfolio that is netting you $8,000, right, would that be worth it and change your life? That’s what you got to ask yourself. So waiting, you know, and having that one property or those five properties and not jumping into business, you know, knowing what you’re missing out on, you know, is for me, you know, is I would you No, not take that you know, that road, but most people do, they’re like afraid or scared, right? So go get it out there, right don’t have to be from us. It could be from anybody out there, a lot of people do in this business, right, but get started right now.
Chris Bounds 23:32
And there’s a lot of risk management that you can put in place. So arbitrage or experience bad where you get like a master lease, so you don’t actually have to buy the property. Now, that doesn’t mean you don’t have lease obligations, because you do. But you know, it’s not like you’re having to go out and take a 200 $340,000 loan. But I think one of the biggest things, the biggest opportunities that short term rentals provide and especially the platforms like Airbnb and VRBO, making it easier to do this is it gives us all the ability to run a McDonald’s business. And what I mean by that is, there’s an old story Ray Kroc was asked like, hey, what business are you in? And he said, I’m in real estate, and they’re like, I would like know you’re in the hamburger business, because now I’m in real estate.
We now have a we have a hamburger stand that pays for the best real estate fun all over the world. So the Airbnb VRBO short term rentals allows that model allows regular folks like us who don’t have millions of dollars in their back pocket to afford prime real estate and have someone else paying for it.
Customers are willing to go there. And now if you want to do it as a business there you there’s margins and math to make sure that works. If you want to do it where you just want a guest house somewhere that you can go frequent a couple times a year and then have someone else at least just breakeven on it. That’s another way you can look at it but ultimately, that model allows us to Run a McDonald’s, basically a real estate type of McDonald’s business. anywhere we want, I think that’s truly amazing. I don’t know if you’ve ever thought about it that way. Oh, absolutely,
George Salas 25:09
you know, the goal, you, it’s impossible to, to literally just blow up and build a, you know, 1000 properties, but it’s not impossible because the operations, right, it’s impossible don’t want to do 1000 properties in next, you know, three years, right. But what is not impossible is creating a hybrid model. And that’s how you get to the most properties. Right? And, and being, this is exactly what we’re doing. Right? We are working with people, and we are finding them properties like our teams are right. We’re working with people and we’re partnering with them. So we’re creating the real estate, the McDonald’s model, but doing it through several avenues. We’re doing our own, we’re partnering with people, right? And we’re doing it for other people. So
Chris Bounds 25:58
it’s arbitrage everything is arbitrage now. The internet has monetized everything everything was arbitrage so it’s like Real Estate Leads for motivated sellers like that’s arbitrage because you’re gonna run your own marketing campaigns. Yes, but you can also go into Zillow on like the make me move or get internet leads from other people Realtors doing the same thing. They’re buying leads from Redfin, and Zillow, and they’re doing their own marketing, and building community building community, something that you’re doing that I’m doing real estate agents do. Gary Vee talks a lot about that. And so yeah, it’s arbitrage IQ scale, because you just can’t be everywhere at once. But you can create community where you become like the center of gravity in your little unique niche with a few different marketing channels, on topic community as a you consistency. And then then then there’s residual effects if you want to explore those, which you’re doing that through events and education and stuff like that. But it also creates more stability, right? Different multiple streams of income.
George Salas 27:03
Well, so
Chris Bounds 27:06
what does your business look like five years from now?
George Salas 27:09
Five years from today, our portfolio is gonna look Oh, above 100 own properties, right. And we’re gonna be 10 years $10 million in revenue,
Chris Bounds 27:19
we’ve international Can I go to Can I go to Venice, I’ll be able to say in a solace. Villa over there.
George Salas 27:26
Right now. That’s really I don’t have that as a goal. But you never know. You never know. Yeah, internet me out would be great. You know? No, I essentially, my model is coming in from the front, right? We, we provide the services, and we’re doing business with our own students, they are coming to us and they’re like, Yeah, I want you to help me do this. I want you, you know, so our consulting is creating our entire business model. So we only have to market one time, right, we market one time, we get a client. And now we have three different streams of income. Right? So if I build this, you know, it’s changing every day, every month, right? The Vision always changed, the end result is the same. But the roadmap is changing. Yeah. So right now, my sweet spot at five years is 100 properties $10 million in revenue a year. Just crazy. But I love it. I am crazy, right? And this is from all of our companies, in all of it through short term rentals, all of it through, you know, all the different avenues that we’re creating to short term rentals,
Chris Bounds 28:31
right? Do you ever sit back and be like, like, have like this 15 seconds were like, What the hell is going on? Like, like, in like, full like goosebump humility, knowing that like, for you, Ryan on your floor, after a bad deal with the, with the bar, to thinking and not not just thinking seeing a pathway forward to a 10 million in revenue business in the next five or so years? Does that ever, like just kind of give you the chills like that? That is the reality of the situation.
George Salas 29:10
You know, people, they actually think that they can do more in a year, but they don’t really know what they’re capable of doing three, right. So when I look back, I always do and, and how, and that brings you wisdom, right thinking about how aware you were a year ago, two years ago, three years ago, and compare yourself to where you are now, in it’s not the results. It’s just seeing the gap. Right? Most people they don’t understand. They always focus on what they don’t have and what they haven’t achieved or where they’re not, instead of seeing how far they’ve come in the last year, two years and three years. So to answer your question is yes, I sit down and I see myself there but Dallas, look back. I’m like, wow, three and a half years ago. I was in the shoes that I just mentioned while you know, a couple minutes ago crying, not knowing what I was going to do with myself,
Chris Bounds 30:06
but really in the grand scheme of your life that’s three minutes ago, like, like, it’s that it was that quick, right?
George Salas 30:13
Yeah, I mean, it sounds like it was not that long ago. But, you know, when I look back, and I see what we’ve done in three and a half years, it’s incredible. You know, so I am appreciative. I am so grateful that that has happened to us. And now I’m just passing that great gratefulness. Right. And, and that’s why we’re doing what we’re doing. But yes, that’s it.
Chris Bounds 30:37
Do you got a best selling book in you? That’s for sure. Hopefully, you’re taking notes. All right. So you get this big event coming up. Five houses to freedom. I love absolutely love that marketing campaign. Or that slogan or brand that you have, and so much so that when I saw you publish that I told my wife, I’m like, dude, five houses a freedom. Like, why didn’t I think of that? That’s like, so amazing. Because of what we do we teach more in the long term side, like, yeah, I was like, Man, I could have totally used a brain like that. So I love it. This event, people who are considering or should or who should consider going to this and what can they expect? Can you tell me a little bit about that?
George Salas 31:26
Absolutely, brother, if you are a landlord, burned out, and you’re tired of making 200 200 400 or even 500 bucks, this is for you. If you’re a fixin flipper, and essentially you’ve got some cash in the bank and you’re tired of waiting for these big chunks of cash. This is for you because it brings stability it brings consistency. That’s what short term rentals do free cash flow. If you’re a wholesaler doing the same thing. This is for you. If you’re a creative finance investor, or even an Airbnb host who has done a deal or even a realtor who does deals and wants to convert one of these houses into cash flowing SDRs and their profitable cash flow inks, I love to break the financial model by the way for you, you know and then just the next couple minutes, but brown the s these short term rentals are good like going to just knock out any long term rentals out of the park any day. Right? So Realtors wholesalers fixin flippers, landlords, you know, that’s what we teach
Chris Bounds 32:25
when is the event
George Salas 32:28
November 1 through the fourth and then the first is actually going to be reception where you get to network and hang out with all of us, man, everybody that’s attending and decides to come they want we’re going to go over pillar one right pillar number one is essentially market research how to identify these most profitable areas and most profitable properties you know that they were going to cover pillar two which is the perfect properties right they to cover pillar three which is your product you know, staging and interior design, that marketing strategy, and then guest experience and we’ve got, you know, super special guests that are also going to covering like super high end marketing, right, my business partner, Jerry is going to be covering all about how to market your short term rental, my business partner, Robert, you know, he’s also going to be covering all about you know, the numbers your p&l is and in how much cash flow you can really make what are your expenses, right? So we’re going to be going pretty deep other
Chris Bounds 33:27
in so this is an in person event, it’s not virtual, correct.
George Salas 33:30
It is in person and it is not virtual, we do have a virtual coming next month, but this one is in Houston, November 1 to the fourth.
Chris Bounds 33:39
Okay. All right. And you mentioned case studies. Can you show some real numbers? Absolutely. All right, yeah, just just walk through one or two of these things in to give people an idea of what they can really expect.
George Salas 33:52
Absolutely. So this is an arbitrage deal right in Cypress Texas.
Chris Bounds 33:56
Real quick, what is what is arbitrage like define that a little bit we talked about very briefly but don’t buy right
George Salas 34:01
so rental arbitrage is what we rent to rent right so we’re gonna rent these houses for landlords we literally these are probably from this house particularly from investor friends of mine right so but as a regular poster investor out there if you want to do arbitrage, you just have to go you know get with an investor right or in a negotiated deals to get get them rented to yourself for market rent, and then you get to put them on the show for platforms, anvil and or add them on a direct booking platform, right. So in these these properties, you know, costs anywhere between 10 to 15,000 bucks at a meeting medium before four bedrooms, right for this one we just launched the first month did $9,800. Now currently is as it is low season is doing about seven, right six to 7000. And if at six to seven, you’re you’re looking at a couple $1,000 profit but a 9000 in high season right which is your summer, you’re looking at four to $5,000 profit, right?
Chris Bounds 35:04
So that 1250 or 12 500 startup cost. What does that entail?
George Salas 35:10
That was startup costs for the furnishings? And they did not include first month last month, right? So you put that plus 5000. So that maybe maybe we had extra furniture for this additional property, but a regular four bedroom like this one would cost you 15. Kaolin, right. And yeah, I mean, this one brings in anywhere from on the low end, 1500 2000. Net, and another high end, you know, four to 5000 bucks a month, right? So now, you average that over a period of 12 months. And this is what essentially I we’re gonna cover, right? How do you really know, if this house is going to mix, there’s a process there’s a there’s a way to, to find out based on market data, you know, based on historical current and future data, right. And that’s what we do. That’s what we’re going to teach, right. So this one makes pretty good money. And we can go over the, you know, this is the first we launched it here on the 27th. And it got a booking for 1100. And then we got a pretty sweet booking for a 700. Nice. So and then this happens all the time. But I won’t say
Chris Bounds 36:22
who pays who pays at $700 for a house at 700 is just the payout. Yeah, so who pays for that? Well, what type of what type of client and customer is
George Salas 36:31
that Mo? This is a family that came to stay for whatever reason, right? Their families.
Chris Bounds 36:38
So it’s I’ve had some, it’s just kind of weird. I’ve got one on the Lake and Lake Livingston north east to Houston and we’ve had some transit workers, some folks are coming in for training. And then they need a place to stay for a couple of weeks. And then then you get holidays, but then you get like the sporting type events of like, like are on the lake, we get fishing events. There’s a million different type of sports. I mean, it could be a badminton tournament. You just never know except some special events and conference that comes in. Right?
George Salas 37:11
So yeah, you have different avatars different clienteles. And they’ll just come in right you have people that are staying for relocation. There are a lot of relocation we work with some relocation services, service companies, right we do we get our bookies to VRBO, Airbnb and direct. Okay, so I’m sure you do too. Right. What is your property? Do? i In the high season and low season? Your link limousine?
Chris Bounds 37:41
I don’t run it. So that’s a Jamie question. I find I find I found the deal. She runs 100% Of all the management. I know we’ve been we’ve done the math, because this is a 700 square foot property. If we rented it out, this is going my memory because she manages it all. If we rented it out 700 square feet on the lake, we probably get like $1,000 a month we get about $3,000 a month, it was a little bit higher over the summer. I think if you average it out be about 2700 2800. And that’s considering that we actually haven’t remodeled it, we bought it as is it’s still kind of needed. We put in some new flooring, and we did put in a new doc, but I’m very happy with the ROI. I think we could probably make another 50% more or he did a remodel.
George Salas 38:28
Yeah. And you guys need to attend. Right? You shouldn’t be are you
38:33
happy there?
George Salas 38:37
So yeah, so just going through this one pretty good one first.
Chris Bounds 38:41
That’s my house. That will look like right now. similar layout square footage, I
George Salas 38:46
feel like we equip our properties with like a super super, you know, really good coffee station, right? We put nice two types of coffee makers and, you know, toasters and you know, electric electric knives and rice cookers and tons of plates. And, you know, I got to the kitchen, our kitchens are fully loaded, you know, when people can stay for a full month and have everything. Yeah. So that’s one of one of the ways that we create that irresistible offer for our client, we just provide everything they need is there, right and then we create the uniqueness, you know, by going out there in a backyard or you know, something has to be something has to be you know, beautiful,
Chris Bounds 39:29
right? Love it. Love it.
George Salas 39:31
So this one is another rental arbitrage. Okay, and let me see if we have. Okay, so this one, we spent about 26 We’ve already put another 7000 down. We got cabanas, we got a bet right and I’ll show you where they got a backyard but this was in Westbury. And this could happen anywhere. Houston is
Chris Bounds 39:56
just posted.
George Salas 39:58
Now this one we got in April. All right. Are we
Chris Bounds 40:00
okay? Okay, okay, cuz you just posted one we had to David’s in the back of my Yeah, that’s it. I want to say there.
George Salas 40:05
That’s it. That’s it. So those day beds are not there. We’re not there. We built them. All right, and we had a carpet to go out there and they look sweet. Oh, Elena, and that’s it. It is about creating a USP unique selling proposition. How do I attract the client is going to pay me $1,000 A night? 800
Chris Bounds 40:28
quid that alone makes it makes a statement. I haven’t seen the house, but that that alone makes a statement.
George Salas 40:35
Exactly. So like a house like this, you know? I mean, if we built a database, let me just say 33,000. Right, we launched it the same month makes 10,900. But, you know, we go back, you know, in July in June, it brought 16,000. So you think April was like, you know, 10,900. And I think the next slot was, you know, 14,000. So it’s average pretty good during the summer, right in and obviously, if you do 16 versus, versus 10 to profit is completely different. Right. And it also there’s management, right? We we have our own management company. So we were paying ourselves a management fee, because I’ve got to have people run it. That’s how it makes it pass it for me. Right. But at this number, this property made a 50% profit margins. And I’m a big adamant about, you know, about do you know, hitting that 50% mark. So in his stuff with the little apartments, right stuff with apartments, I never did, I never did. It’s even if you do 50% profits, if 50% of 1800 is 900. Right, or 2000. So, and that’s why I love the house model. Right. And as we evolve it, you know, we have, you know, we just first hit our first $20,000 month this past summer, and, you know, a year and a half ago, I was wishing I had a house that hit 10,000. So it’s not immediate that you can, you know, that I created personally a house that brings in $20,000, or $10,000. It takes a little bit of time, but it is a you can have a shortcut to getting there. Right in in the shortcut lands on get with somebody that knows and has done it. That’s the shortcut. Right. So let’s check it out. So in June, he brought in 16, and made that, and here are some of the reservations. Okay, so 30 400,000 during the week, 3734. There’s one for 45 There’s one for 58. Right. And then in July, it brought 26, which is incredible was when we broke our first, you know, $20,000 months, and then now the profit just doubled.
Chris Bounds 42:44
Yeah, right. My long term rentals never do that.
George Salas 42:48
Yeah, I mean, not every short term rental does this, right? You saw like, one bring 6000 bucks, right. So that one, you know, it’s fairly just 400 square feet less, right? And, and it’s probably, you know, maybe 50,000, or $75,000, less as a purchase in a purchase, right? So you just have to create, and we work on these, you know, they don’t just come in and bring in $26,000, immediately, we have to put on a lot of work upfront, most of the work is up front, right? And if you create a beautiful property and you put the work up front, then it’s easier to maintain. Right? So if you start bad, you know, and then we’ve done it. We know I used to when I launched my first houses, they were making $3,000 a house. Okay, and that was okay. I was happy with that. Because my problem is we’re only making 1800, right? So it’s like, oh, well shoot, my rent was 1000 in the apartment. And in my mortgage, it was 15 1600. Right? I’m only spending a little bit more and I’m making my margins were bigger, right? I mean, I didn’t really know that. Houses could really hit these numbers, but here they are. Right. So here’s a reservation for 30 740-414-4000 8315 137 right so in in I could go all day and truly just show you in August also hit we had a really good number. I really good month here. And we I mean, in one month we made our money there. Right. So
Chris Bounds 44:13
nice paydays.
George Salas 44:16
Yep. So yeah, man. And I could go here all day, brother. But um, I know that we are cutting it short on time. I could do all these case studies. Right. But you know, if they want more, come see me at the boot camp. Right?
Chris Bounds 44:32
Absolutely. And before I get into the like the final closing questions, the boot camp, where can people watch? We’ll we’ll put a link in the notes here on where people can how people can get RSVP for that. So these last four questions real quick. I kind of I ask every guest the same questions. First one if you could give advice to your 20 year old self and you’re not old and you’re not old, so maybe you got to say your 15 year old self But if you can, if I get biased your younger self, what would it be?
George Salas 45:06
Number one, don’t put all your eggs in one baskets, which I do now by creating different streams of income. Right? I invested 400k into one project now investing 5080 2030. Write multiple streams of income. That’s my second, don’t put your eggs in one baskets create multiple streams of income. That’s my advice. And now I’m following on advice. But after a major loss, but the loss brought this opportunity, right. You know, I would have never met you.
Chris Bounds 45:41
There’s always growth, through pain, and distress. So pressure creates growth. We’ve lived that with with flipping, so we realized, hey, all of our income was from flipping and whenever margin started to shrink, that’s when we moved into Airbnb, and buying more rentals. And we’re doing eXp and we did some other things. So what book or books have greatly influenced your life?
George Salas 46:09
Oh, my goodness, I’m the Millionaire Real Estate Investor is one of the first books I ever read that changed my mind when it came
Chris Bounds 46:20
to going about investing. Yeah, very good one.
George Salas 46:23
So Gary Keller is the bomb. The other book that has really impacted me is traction and rocket fuel, right has given me the vision of how to really create the company by having a operate an operating system. I you know, when it comes to maybe entrepreneurship and really drive the book, relentless, and winning by Tim Grover, it always like makes me just on fire, bro. You know, and, and then my, one of my mentors, my my top mentors is Darren Hardy. So all his books, read them all, because it’s literally going to open up your brain, your mind your eyes. So that was four books
Chris Bounds 47:11
that I’ve read a few of those. So in the last five years, what new belief behavior or habit has most influenced or improved your life,
George Salas 47:22
um, laser focus along with, with productivity, right? And then my productivity comes on, on managing my time. Right when I did that, my life changed. Because I was able to get things done, I was able to execute, I was able to grow, and I was able to grow on the things that matter. Yes, being inside in the trenches, I was able to take myself out and grow my business. sess
Chris Bounds 47:57
imagine traction and rocket fuel a little bit to do with that.
George Salas 48:00
A lot. The biggest influence when it came to like, wow, you know, if this course by Darren Hardy, called insane productivity, that sparked how I how I actually live every day, it changed entirely how I spend every minute of my day during the week, of course, except when I take off, right when when I’m off, right, but that would be that one little spark that gave me then I transition a couple years ago.
Chris Bounds 48:30
Last, how can people reach out to you?
George Salas 48:34
Um, well, two ways. George Sallis, 360 G, or G or G s alias 360. And you guys can book a call with me and my team and we can hop on and chat about SDR. Another way is visiting our five h two F. That’s it. Four letters, right, five h two f.com. And then that will talk about the boot camp and you guys can see me and we can have for three days.
Chris Bounds 49:08
Well, absolutely. So definitely put those in the notes on check them out. George has been a true pleasure. I’ve always enjoyed getting connecting with you. And we’ll get connected here again in a few weeks. And yeah, man, I’m looking forward to it.
George Salas 49:25
Absolutely, brother. I really appreciate the help you been providing to vote out because I have to share our license I you know, I’ve seen you guys you really be up there for you know, for your agents like you you’re a trooper, right? You’re a true mentor and give him support. So I’m definitely look forward to seeing you in a couple of weeks, brother and I appreciate your help. And now it’s an honor being here with Yeah,
Chris Bounds 49:48
absolutely. I’m in to give her credit to like there’s not a lot of new agents that come on board and like, run, like run fast and so someone who’s already like close yourself and already got a few million dollars and in the pipeline of transactions and then on top of working with another agent Scout a few million dollars like it’s it’s amazing so I love working with winners and so I like working view and mana and yeah,
George Salas 50:16
I love it man. Well thank you for the support brother and I hope to see you soon okay,
Chris Bounds 50:21
absolutely Take care, man. You too bye