81 – How to Cash Flow with Airbnb Rental Arbitrage with Shiv Gettu

Sean  0:00

Hey everyone, and welcome to another episode of The everything real estate investing show with Sean pan. Today we have shift get to she visited investor in the Bay Area and focuses on Airbnb arbitrage. In this episode, she will share her story of how he got started with investing and how he plans to scale his business to the next level. If you’re interested in starting your owncash flowing business with rental arbitrage. You need to listen to this episode. If you enjoy this episode, subscribe to the show and leave a review. We release episodes every Wednesday and Sunday. I release the show notes on our site, everything Rei com. Enjoy. So thank you so much for being on the show today. Go ahead and introduce yourself and let us know who you are and how you got into real estate investing.

Shiv  1:16

Sure, yeah, my name is Chef get to and I am a 24 year old graduate from the University of Southern California. I studied international and systems engineering there. And soon after, actually finished may of 2017 and took five months off before I started working. traveling the world spent three months in Europe had a great time there with friends, I highly recommend it if anyone’s thinking about taking some time off before graduating, or even before going to college. It’s good to take some time off and experience the world but yeah, I kind of fell into real estate ton of funny so I, as I said started off with consulting at it.

I company doing, you know Salesforce work, and still doing that. And I got put on this remote project. So I had the flexibility of working from home. And you know, when you work from home, you still work. But there is a little bit more time because you’re not dealing with the commuting, you’re not dealing with all that kind of stuff. So my brain started thinking, I was like, Well, how can I start using this extra time and my family had always been in real estate in India. So we little bit of background I moved in, you know, and I was 12. I grew up in the Bay Area and went to school there International School for six years, and came back here for college. So I kind of started thinking like, how can I use this extra time and I knew I always was interested in real estate, I had some sort of exposure to it. And this company called hubhaus I so I I was basically living once I graduated, I moved back to San Jose, and my parents kind of have an extension of their house that they used to go back and forth. So I was living there, kind of serving as the property manager and making sure that tenants making sure all issues get taken care of. So I got a little bit of exposure there. And when it came to finding a new tenant, I took ownership of that started doing some research and found a tenant called hubhaus. And their company that basically signs a master lease with you, and guarantees you rent and in return, they sublet your place to multiple people. So they look for typically, you know, four or five bedroom houses, they convert extra space and two bedrooms and, and make it like a six bedroom house, and then just do room for rent. So I didn’t know this at the time about the conversion. But you know, I signed up with them, everything went well. And one day I just like saw on my, on my driveway, there were these massive truckloads of blocks. And these blocks are basically used to create walls to create extra bedrooms. And then I’ve kind of did the math and I went inside the house. And in the house, they had like a piece of paper on each room saying how much they’re renting it for. And I knew how much you know, we were they were paying us. So I quickly noticed that they were making like $2,000 a month for doing not that much work, you know, just being a normal property manager and they didn’t even own property. So that kind of got me thinking of how I can get into real estate at a you know, just graduating not too much money in my bank. How I can kind of get involved with real estate without putting in too much money. So that’s when we stumbled upon an article by Paul Moore, who’s an awesome guy. He wrote about J. Martin, who basically, I think the title of the article is how to generate $10,000 a month in passive income. And when my business partner Kendrick, and I read that we were just blown away, we were like, Okay, wow, this guy is, you know, dedicating three or four hours a week or month I think working he’s hired, outsource his team. And he’s pretty much automated his business and just collecting money. So we were kind of inspired by that. And yeah, that’s how we that’s how we got started.

Sean  4:56

Nice. That’s a great story. Hi, first things first, I gotta give craft going to USC, I’m a Bruin right here. So you know, hopefully, if you’re a school over there, just kidding. But I also want to say you’re also you’re also being very smart with your free time. Because a lot of people who are your age and your position, they would use that free time and you know, watch YouTube or just slack off I work. But instead you actually went out of your way to find some more opportunities so that you could have a better life in the future. So props to you on that.

Shiv  5:26

Yeah. Thank you

Sean  5:27

also want to ask you, so you said it was your parents house that you guys rented out to hubhaus? And then they did the conversion, right?

Shiv  5:34

To the conversion? Yep.

Sean  5:36

Okay. And these plastic blocks, these are easily removed, right? It’s not like they had to exactly, it’s not a big deal

Shiv  5:42

is that and that’s part of the reason why they didn’t even have to take permission from the landlord. Because they’re basically modular walls, you’re creating a wall that’s non invasive. So you’re just making you know, a plastic block wall, creating another bedroom. And you know it when when their tendency runs out of time they they just take the box and leave and no damage is done talk place. Well, with a really good for program on they were running it. So I think my house was running for 40 $800 a month. That’s what they were paying us. And they each room was different, but I think it total to about 6800 or $7,000 a month. So they were collecting a premium of you know, 20 $200 a month.

Sean  6:23

The original was what four bedroom house,

Shiv  6:25

a four bedroom. Yep. And then they added two more. So they Yeah, so they took the, you know, the, in my house, we have like a formal living room. They made that into a bedroom. They took the formal dining room, they made that into a bedroom and just optimize it and yeah, not inspired me and just made me think like, okay, like, you can be creative in real estate, you can jump in and real estate without actually having, you know, massive amounts of cash.

Sean  6:48

Right? So it’s about 1100 dollars a month per bedroom after it’s been converted, I would say so yeah. And these people are chill, like,

Shiv  6:55

does isn’t a weird living other people like that. They’re pretty, one of the reasons why I actually lean towards them was because, you know, I I’m in South San Jose, and I don’t know, for those of you who know, the Bay Area, like San Francisco is typically where everything is exciting as a younger person, I had the choice to go to San Francisco, but I kind of decided not to because I knew I wanted to save money, I’ve always been someone who is very forward thinking. So I made the conscious decision to you know, save money on rent move away for a little bit be away from all the social scene. So I think having, you know, the typically their cell is they bring in a lot of young working professionals, people in their 20s. So the people right now are actually relatively cool. You know, their, their whole model of houses, they want to create community. So they want to help people who are relocating to a new city and find, you know, quickly get amalgamated within the culture and be comfortable. And yeah, I mean, they’re short, long story short, yet. They’re cool. And I’m fine with it. Because essentially, that’s the way it works. It’s kind of confusing. My parents have a main house, and then they built an extension. So there’s actually two separate entrances. So we’re not sharing a house or anything like that.

Sean  8:11

Got it. So it’s the extension house. Are you with me next session house?

Shiv  8:17

My parents live in India, so I’m just living in an extension house. Yeah,

Sean  8:20

got it. And so the main house is being rented out by all these different people. Exactly. Yeah. Okay, cool. Well, let’s not talk about hope house too much, because that’s actually not your profession, right? You’re doing the Airbnb arbitrage model. So. So after you got inspired by J. Martins article, what did you guys do next?

Shiv  8:36

Yeah, so we got inspired by his article, we, I think in the article, they mentioned someone by the name of Allah Williamson, he was kind of the guy who started this whole idea, maybe not started it, but spearheaded a community around it and got people together and started, you know, talking more and more about this concept of rental arbitrage. And maybe I’ll just go over that for a second. So rental arbitrage, in furnished rental arbitrage is typically where you rent an apartment or a house, you furnish it. And then you sublease it to, you know, anyone you want. It can be vacation rental travelers, it can be corporate middle travelers, and the whole profit margin, the whole business model is arbitrage taking money on top of what you’re already paying. So you know, in a case example, if we’re paying 20 $500 a month, our goal would be to make more than that, because then we keep the profit.

Sean  9:32

Okay, so then you found out Williamson, and then what happened.

Shiv  9:36

So we found out Williamson, and we started talking to a lot of people in the Facebook group, you know, just I think Kendrick and I, both people who are are hard workers, and we’re willing to put in the effort and time it takes and make the sacrifices. So we just started spending, you know, a few weeks months in the beginning, just learning, learning, learning, learning burning the midnight oil, talking to people gathering information. And I think within a few weeks or a few months, we had registered analyse, got a bank account going and picked up

Sean  10:08

our first property. Okay, so did you take Alice course? Yeah, so we took Alice course. Yep. Got it. And how you know, Kendrick? How did you know your partner?

Shiv  10:16

Yeah. So Kendrick is a friend of mine from USC. So we met in math class. kind of funny, but we met in a math class, I think sophomore year, and he’s been one of my closest friends. Since and I yeah, when I started just learning about real estate. I thought it I didn’t want to do it alone. So I just gave him a call. And I was like, Hey Kendrick, like, I’m thinking about getting involved in real estate. What do you think? And he’s, he’s a guy who’s always like, yes, I’m down. So he was like, literally, yeah, I’m down. Let’s do it. And he was actually working in Boston at the time, or, sorry, he was in Boston for a little bit at the time working. And he basically just made the move and was like, okay, like, you know, I’m just going to do this. And he just like, moved from Boston came to San Jose, like found a job with a asset manager who owns about 1000 units. More on that later. But he owns 1000 apartments in the Bay Area, and just started working for him and, you know, decided to invest a lot of his time in real estate.

Sean  11:22

That’s what’s up. Yeah. So tell me about your first deal. How did you get someone to agree to rent out their unit to a bunch of 24 year olds who have never done this before?

Shiv  11:33

So yeah, so there’s two approaches here, right? One approach is you play the numbers game. So you reach out to as many landlords as you can, you do the pitch, and you know, the typical Brandon Turner funnel, except you’re not buying, you’re just trying to rent and get them to agree to, for you to separate on the other. The other method is building relationships with people that own real estate, then, basically, pitching them the idea. It seems similar, but I think, from where I’m approaching it is, instead of trying to find as many one off when words, as you can try to build a relationship, or at least this was our approach, build relationships with landlords who own a lot of units, build trust with them, and then see if they buy into your business model. Because that way you’re getting access to, you know, in this case, hundreds of units to rental arbitrage, rather than just, you know, just one off landlords.

Sean  12:34

Right? So how did you do that?

Shiv  12:36

Yeah, so we, I just tapped into my network, I reached out, my parents were from the Bay Area. So they worked here for a number of years. And I just top top my network, I reached out to everyone I knew reach out to my parents, you know, I asked them to connect me to people, they knew who did real estate, I asked those guys to connect me to people who did real estate and just on and on, I just reach out to as many people as I can. And I built a relationship with landlord, as I said, owns about 1000 units here runs at kind of like a mom and pop shop, which is ironic, doesn’t have a formal property management layer company, and just built a relationship with them over time, you know, made sure that I was not wasting his time, we connected on a lot of levels. And he kind of began to like me, he was one of my dad’s friends. And I think the way we picture this whole thing is I think trust is really important for us. And when building a business. And also, I think, for a lot of people. So the way we saw this was, how can we build trust with this landlord, so that he’s willing to buy into our business model. And you know, at the time I mentioned, Kendrick was working in Boston, he was working for his dad’s engineering company. So he had a little bit more flexibility, I was kind of working, you know, that a formal company, and didn’t have as much latitude to just swing back in, if I left my job. You know, thankfully enough, Kendrick was willing to and able to as well. So he just left his job, we saw that this landlord was actually since he was kind of running like a mom and pop shop, there were some gaps in his business, they were mismanaging it, you know, within eight years and went from being, I want to say like a B plus property or a minus property to like a b minus c plus, because it was just mismanaged, they kind of little bit older landlords, they didn’t spend the time necessary. And we saw that there were a lot of gaps in this business. So we went in, and we said, Hey, listen, like, you know, we see that there are a lot of things that could be changed here. And we basically sent him a presentation of our thoughts and what we thought could be done. And he called us and we spoke to him. And he’s like, you know, the elephant in the room here is who’s going to pay for this? Like, are you guys proposing that? You want to work for us? And we said, No, we actually just wanted to do it for free. And he was kind of taken aback by this, because he was like, I think maybe because he was a little bit older, he wasn’t exposed to the abundance mindset, or, I don’t know, maybe Generally, people would be kind of taken aback by that. So we just said, you know, we’re willing to do it for free. We just want to learn as much as he can, and as much as we can, and see how we can help you out. And I think he was kind of taken aback and basically said, You know what, let me just hire one of you guys. So he hired my friend, my friend move within five days, Kendrick, and started working for him and started building this trust and, and showing him that he can really help his company grow. And when we establish this trust, that basically opened a huge gateway into all this opportunity. And when we pitched him our idea of trying, trying out, you know, this furnished rental idea, he said, Yeah, go for it.

Sean  15:44

That’s, that’s an amazing story. And way to take action. Definitely. Props to you guys. So then, after that happened, he basically said, Look, I have a vacant unit. You guys can take over this one. Let’s try it out. See how it works?

Shiv  15:56

Yeah, exactly. So he basically said, since I think we established a good one lot of trust with them. He basically said, You know what, I know you guys are young. I want I want to help you guys. So why don’t I give you one unit? And why don’t I put you guys on month to month, which was huge. We didn’t have the fear of like signing a year long lease or anything like that. put us on a month to month and and we basically signed the lease with him gave the security deposit as a normal landlord and started furnishing. And, I mean, anyone who’s in this business understands that it’s very seasonal, right? So typically, in the summer is right now is peak season, right? We’re seeing large amounts of revenue, but in the winter, it starts to slow down. So we started I think, in December, which is the slowest month of all. And yeah, we furnished, furnished a unit. And actually, we did have a hiccup before that. So as I mentioned, some of his properties are a little bit older. So the first property that he was willing to let us try out on was one of their more rundown ones. And, you know, I got all excited, I was like, let’s do this. I hadn’t seen the property. So I, I walked in there talking to the property manager kind of noticed that the building was a little bit rundown, and there was kind of, you know, didn’t really seem like the ideal place to do Vacation Rentals or corporate travels and what I just said, you know, let’s just go go with and see what happens. So I think to get the whole experience I wanted, you know, we were really eager. So I was like, Okay, let me just sleep in this vacant apartment and see how the experiences and obviously I didn’t plan ahead, so I didn’t bring any pillows or mattresses or anything sounds just literally sleeping on the ground. And within a few minutes of being in that apartment, I started noticing a lot of cockroaches. Oh, God, and bugs and spiders. And like it was the building was old the drawers smelled like I was just sleeping on the ground here. I was like almost like, you know, what did I just get myself like, there’s no way we can find the fleece. So I spent the night there. I don’t know if cockroaches are calling all over me. But woke up the next morning and basically talked to the property manager and I said you know that this can’t work. Like there’s no way we can get corporate rental travelers or vacation rental travelers in a place that has an insect problem. And thankfully, they were understanding. But now it’s kind of the one hiccup and I remember after that experience, I was like, Oh my god, this is like, we’re done. Like, we should just stop. And and for a second. I was like, What do you mean, like, after we’ve seen all these podcasts and hearing all these inspiring stories, there’s no one that goes through success, quote, unquote, success or an experience that they enjoy without some bumps in the road. So I just said like, I you know, I kept telling myself, like, each bump just makes you progress further. It’s just a step towards, you know, the top. So we shut that off continued. And we started looking for one of his other properties.

Sean  19:06

Yeah, going to the top one cockroach bite at a time.

Shiv  19:09

Yeah.

Sean  19:11

Exactly. Okay, so then once you decided to rent one of his properties, how much was the startup costs? And how long did it take for you to actually create a furnished rental?

Shiv  19:22

Yeah, so. So we first started off with two a two bedroom. So the startup cost for that was about, I want to say. So it costed? So let’s say for the for the security deposit, you know that? I think in this case, it was about $650 in rent, or said you know, hours total? Yeah, pretty well. Wait, wait. Yep. Okay. Yeah, that’s the way it just worked in there. And they’re building so $650 security deposit, one month’s rent, which I think was around 3000. So that’s 3600. And I think furnishings costed around $4,000. So what does that 7650 startup costs? Let’s just say 8000? Around $1,000, to start start this unit, and how long did it take to furnish? Yeah, that’s a good question. Because in the beginning, we were doing everything ourselves, you know, ordering and, and assembling and, you know, throwing away the packages and going to IKEA and going to, you know, goodwill and doing all these runs, and we would just pull all nighters. And it was kind of fun in the beginning, you know, after one unit or two units, but after the appointed time, it just got exhausting. But I would say it took about maybe four days or five days to finish. Completely. That’s

Sean  20:44

not too bad. That’s not too bad. Five days, and but you’re learning so much at a time.

Shiv  20:48

Exactly. Yeah. I mean, we spent, you know, day and night, pretty much pretty much working on the place. But yeah, it didn’t, it didn’t take too long. But then we realized that four and five, four or five days is a long time. So now we pretty much do it and you know, 24 to 48 hours.

Sean  21:06

And who’s your designer?

Shiv  21:09

Me Me? Me know. Yeah, the I can I can kind of just, we started looking at other furniture, websites, and just looking online and trying to build our eye towards furniture, taking inspiration from my parents house, and, you know, my family’s house, my relatives house and everything like that, but we don’t have a formal designer.

Sean  21:30

Cool. And so what is the kind of spread you’re looking to make per unit you guys acquire?

Shiv  21:35

Yeah, so now we’re kind of at a point where we are a little bit more picky with our units. Initially, we were kind of hoping for around $500 per month and utilize So I think, you know, as I mentioned, very seasonal, right? So we were hoping for Yeah, three, three to 500. But right now we I think, you know, iterating, the process over and over again, we’ve kind of understood what works best and what doesn’t for our area. So we’re we’re looking to make at least $1,000 a month on each property.

Sean  22:11

And that’s like,

Shiv  22:12

net net. net. NET NET is RK Yeah, maybe eight? Yeah. 850 to $1,000.

Sean  22:18

Sounds good. Since then, have you work with other landlords to rent out their property? Or has it always been that same guy that you’ve been renting his units? No, we actually just

Shiv  22:26

use them as a jumpstart. So we have I think only four or five properties with him. And I think right now we have a total of 10. We started in December of 2018. So it’s been six months. And yeah, we I think we have four or five with them. And then yeah, the rest of the five we have. We have it with other landlords. Hmm.

Sean  22:48

What is your ideal property that you’re trying to acquire? Like bedroom bath size and whatnot?

Shiv  22:53

Yeah, that’s a good question. So we typically look for ways the way it works in our area, we typically look for either one bedroom. So you know how I mentioned earlier that, that company hubhaus did this conversion that kind of inspired us to do a little bit of conversion ourselves. So we typically look for bigger one bedrooms that have the potential to be converted, or two bedrooms in one bath, we found that we originally started with one bedrooms, and we found that the profit margin just wasn’t strong enough to make sense. And I think our theory behind that is, when you rent to one bedroom, the Bay Area, let’s just throw out some numbers for a numerical example, right? If we’re renting a one bedroom for 20 $500, you could typically rent a two bedroom for maybe $3,000, right? But the value of a one bedroom at 20 $500 is far inferior to the value of a two bedroom $3,000. Because if you’re only paying $500 more, the revenue that you can generate with that extra bedroom far exceeds $500. And I think that’s just because more beds equals more heads equals more people equals better value, right? So we typically have, you know, two bedroom places, and we have often two beds in each bedroom. So you know, that’s four beds plus the pullout couch, which is turns into another bed. So in some of our two bedrooms, we have upwards of five beds, housing six people. So if you look at that, right, like if we’re paying, you know, $3,000, that’s like $100 a month for us. I’m sure we can get and we have been getting people who are willing to pay more than $100 a day for 456 people, right? That’s $20 a person if you work out the math. So that’s kind of the way we thought about it is I think two bedrooms is where we’re pretty comfortable.

Sean  24:42

Cool. And do you have any like preferred locations yet to invest in?

Shiv  24:46

Yeah, we, we like the San Bruno, which is near the airport near the San Francisco Airport. So it’s about five or 10 minutes away. So we get a lot of travelers looking to stay there and just before their flights. And yeah, and Redwood City is really good for corporate rental. So we do corporate rentals and vacation rentals. So when I say corporate rentals, that basically means any state that’s greater than 30 days, Vacation Rentals is typically you know, one to 29 days. So we do both, we found that Redwood City works really well for corporate, because, you know, there’s just more and more companies coming to that area. But Vacation Rentals right now we’re working in San Bruno.

Sean  25:28

I remember what had our Simpson on my show, he actually said that he does extended stay rentals. So there are corporate type people not just traveling nurses, right. People on per diem. Do you guys have a specialty or a special market you’re trying to target?

Shiv  25:44

we don’t we don’t target anyone particular. So we don’t look specifically for traveling and nurses actually, sometimes we look. We avoid certain groups, right? Like we found in our experience that traveling nurses are a little bit more price sensitive. So we tend to not market specifically towards them. But I think our strategy right now is we market on sites that have the most eyeballs one one in particular, right, which is Airbnb. So Airbnb, at least in the Bay Area. You know, 90 plus percent of bookings come from that one site. So you know, just using the Pareto principle, right, it just makes logical sense to direct all your marketing and marketing efforts towards that one site.

Sean  26:29

Every music, great website, and I use it every time I go traveling. Yeah, I know. So by using Airbnb, are you ever concerned about if Airbnb changes their regulations? Or if I mean, the city itself, right, the city itself can really change something, and then that could ruin your business model? Absolutely.

Shiv  26:49

Yeah. No. And actually, that’s kind of the way we made ourselves a little bit more anti fragile, is typically when the city’s change regulations, they change it so that there’s no states that are less than 30 days. So they allow states that are greater than 30 days, the way we built our business so far, is we’re choosing areas that still allow Airbnb, but also have a great potential for corporate rentals. So if anything happens, we can just pivot from Airbnb vacation rentals, to you know, corporate rentals day. So I the reason why we I mean, so far, in our experience, we’ve seen that Vacation Rentals is a little bit more profitable. We’re also willing to do the legwork. Actually, we don’t really do the legwork. Now we’ve hired a team and built built out all the systems but you know, we’re willing to, it’s the way we see it. As you know, Vacation Rentals is like the Gold Rush, right? Like, eventually, that’s going to time out. And you know, the profit margins we’re seeing is, is really strong. So we’re trying to build that system till the end, and when when their regulations do come into play and scenarios, will just put it to corporate models, which is allowed by almost every municipality in the country.

Sean  27:59

That’s right. That’s right. And who is currently managing your properties.

Shiv  28:04

Yeah, that’s so as I mentioned, I, we both have full time jobs. And we have employees. So we have an employee in the Philippines who’s working for us doing desk communications, we have our up 40 hours a week, we’re actually in the process of hiring another person to kind of do guest communications and build out our marketing efforts. And we have a maintenance guy that helps us set up the units and attend to maintenance issues. And of course, we have our cleaning team that that takes care of all the turns. So I mean, right now, like I, I almost like I’m not really participating in any of the operations. It’s just kind of running on its own because of the systems we built.

Sean  28:47

That’s the dream. I mean, you read an article about J. Martin, about a year ago. And now here a year later, you’re almost there.

Shiv  28:53

Ya know, we read it. Yeah, like 878 months ago. Yeah. No, we’ve I mean, it’s, it’s interesting, I think the way we think about that this whole thing is not how many units we have, and how we should operate based on how many units we have. But whether our operational capability can withstand operating on 1000 units, right? So every time I think about a task or, or a process, right, I think to myself, will this task or process be able to operate if we had 1000 units, right? So that that and when you think like that you really understand the importance of systems thinking, where each thing each task you do is scalable, right? So that’s our our goal is to basically build out this business, so that it’ll operate the same way on 1000 units, then that just won’t need it.

Sean  29:42

There’s a lot of pros doing Airbnb arbitrage. What are some of the cons to your strategy?

Shiv  29:47

Yeah, no, good question. I mean, one of the biggest cons is that you don’t own the asset, obviously, right? Like one of the enticing things about real estate is that you can buy something for 20% down, oftentimes less, you know, if you’re doing an FHA, and sit on it for 30 years and own the entire asset outright, like for our our business model, we’re not able to do that, because we don’t own the property. But that doesn’t mean we can’t eventually own the property, and do our business on top of that as a layer. That’s that’s one con. The second con is obviously, it’s definitely way more active compared to real estate, long term rental investing. But again, like it, everything is systems, right? If you can build a system, you can make it less, you know, less, it’ll still be active in an absolute sense. But relative to your time, it won’t be that active.

Sean  30:39

So you’ve been doing this for about six months now, right? Since December of 2018. And I’m sure you’ve learned a lot throughout the process. What are some things that you know, now that you wish you knew back then?

Shiv  30:50

It’s funny, right, because I’m very analytical as a person. And I tend to get stuck into analysis paralysis, right. And I think it’s important to remember that there’s more value sometimes in growing fast, rather than always growing as efficiently as possible. And I don’t want to scare people off. But what I mean by that is, you can get stuck in analysis paralysis, you can try to make things as optimal as possible and make it as efficient as possible before you get started. But if you can make micro movement, and fail in a microwave, and you’re constantly making these iterations in a micro fashion, you’re going to grow a lot more intelligently. You’re going to learn a lot more throughout the process. If you do that, and I think that’s something that we did end up doing. But I think in the beginning, there was a lot of push, and I think, you know, thanks to Kendrick like Kendrick is I’m a little bit more analytical, and I think things over he’s kind of like, let’s, let’s do it. So I think we kind of work well together. Because he’ll be saying, let’s do it. Let’s do it. Let’s do it. I’m like, Okay, well, let’s take a minute. And let’s just think about the ramifications of our decision. So we kind of inch our way along, like tug of war going back and forth, back and forth. And we we move slowly. So I think my one advice would be

Unknown Speaker  32:08

sometimes just make my make micro decisions. And it’s okay to have micro failures.

Sean  32:16

Make micro decisions, it’s okay, if I call failures. Okay. I like that. What are some actionable steps that new investors can take so that they can do what you do in the very near future?

Shiv  32:27

So there’s this law called Parkinson’s Law, right? Parkinson’s Law, it states that work expands with the amount of time present for the task. Right? So let’s say, and yeah, you may lose me for a second. But if you set yourself time, so let’s say you give yourself one week, to do all the learning you can. And after that one week, you have to take action, I think you’ll be more likely to take action. But what ends up happening with a lot of people I think, is they’re constantly the state of learning, because they haven’t set shot boundaries of their time. So I think, you know, if I’m just thinking about this, right now, I think what I would say is set a time set, set some boundary and in which you want to learn, so maybe it’s two weeks, maybe it’s three weeks, set that time to learn. And once that time expires, reach out, maybe you can, yeah, reach out to our Williamson, Alex and has the course and get into a group of community of people who are doing something like this, right? Because one of the biggest things for new investors and people just getting started is they’re nervous to take the first step, right, but the more people you talk to, but be careful, you don’t want to talk to too many people and just never take action. So more people you talk to the more they’ll kind of encourage you to just take action. So almost almost take action, and think about it. But don’t overthink it to the degree that you’re just paralyzed.

Sean  33:50

Great. Is there any final words you’d like to say before we end the show today?

Shiv  33:54

People are the most important thing here. Like people always say your network is your net worth. But you know, that couldn’t be more true. So just I would encourage people to just reach out as much as you can talk to people, learn from them, ask them questions, and see if those people that you talk to can connect you to other people. That’s kind of the way we did it. Right? We got connected to someone we spoke to them and ask them if they can connect the same as anyone else. And just continue that branch. Learn as much as you can. And yeah, take action.

Sean  34:25

Solid advice. Talk if you will get in contact with you.

Shiv  34:27

Yeah, so you can reach me on my email. So it’s shift sh IV at ATMAN. ventures. vntures.com. And yeah, if you want to reach out to my business partner as well, Kendrick, it’s KEND r IC K, at ATMAN. ventures. com. Where does that stand for? altman is kind of it’s basically life force in Hinduism. So yeah, the price right.

Sean  35:00

Nice name. Cool. I will share thank you so much for your time today. And thank you for telling us all about hybrid, vacation and corporate rentals, you give us a lot of great information. So I hope people can listen to what you have to say. And just realize, look, you only started this six months ago, and you’ve already achieved massive success. So if they really want it, they can go grab it themselves as well.

Shiv  35:21

Exactly, yeah, no, just just don’t have any preconceived notions and just take action.

Sean  35:26

Absolutely, man. Thank you so much your time. I’ll see you later. Here’s some of the key takeaways from this episode. If you want to see results, you need to take action shins partner or young adults who decided on creating alternative streams of income and made it happen. Instead of reaching out to many owners find a single owner who has many properties, and nurture a relationship with that owner. Renting a two bedroom unit is better than a one bedroom because the value of the other room is a lot higher than the extra $500 so that you’re paying for the extra room. Rental arbitrage is also a great way to earn more cash flow. But one of the cons is that you don’t own the asset. So you don’t get the benefits of appreciation, debt pay down or tax benefits. hope y’all learned a lot in today’s episode. You can find the show notes on our site. Everything rei.com Thanks, and have a great day. This was another episode of The everything real estate investing show. If you enjoy the show, give us a five star rating will take less than a second and they’ll help a lot. You can contact me at sean penn realty at GO. com. That’s svanpanraotyiqo.com Thanks Have a great day.

Transcribed by https://otter.ai