You're listening to the Master Passive Income Podcast Network. Welcome to the Master Passive Income Show. This is Dustin Heiner, and I'm here to help you afford anything you want in life. Create generational wealth by investing in real estate so you can achieve financial freedom. And in today's show, we're going to be talking to an expert who's going to show us how we can make three, four, even five or more times the amount of money from our real estate by renting it mid term properties. And he's going to show us how we can do it and how you can do it as well. All right, let's start the show. Welcome to the Master Passive Income Podcast where we talk about investing in real estate with a special focus on making enough money so you can quit your job and live the dream life. And now, here is your host, Dustin Heiner. What's up? What's up? Super blessed as always to have you here with me on the show. Now, I am excited about this episode and here's a big reason why. I started my first midterm property. Now, I've done long term rentals for, oh my goodness, 20 plus, oh, almost 20 years now. 2006 is when I first started investing in real estate. And I love long term rentals. They're so fantastic. I mean, I literally don't do anything. I have experts do the work for me. If you listen to the show at any length of time, I talk to you how to build a business, how to make sure that you have experts doing all the work for you. Well, with that I have long term properties because other people do all the work. Now. When I first started investing in 2006, then fast forward 2010, 15, 2017, there weren't any good companies that were doing midterm or property management for short term rentals. It was just rather, rather difficult. You had to do a lot of work. And honestly, that's why I created Master Passive Income. I wanted to have passive income. I didn't want to do anything to really have to work hard at this business because at the time I was actually working a job, so I didn't have extra time to be doing a lot more stuff on my real estate. So I made it as simple and hands free as possible. Now, about 80% of my portfolio is long term and that is just mailbox money. Like, well, ach money. It just goes into my bank account every single month for my property managers, which is just absolutely amazing. But then you know that Airbnb or short term properties are doing really really well you can make a lot of money because the money has always been there for these short term properties. It's just that they always went to hotels, big corporations. Well instead now it's transferring to where it can go to us. Now short term is fantastic. I have short term properties myself. Now I've gotten into the midterm property. I have one midterm property and I kid you not, I make so much more every single month for my midterm than my long term. Now you do have to furnish the property, you do have to find a long term tenant, but it's going so well. In fact, my property that I left in Arizona, we have it as a midterm property. I got it rented for three months straight booked solid by a company. They, they're literally paying me 3500 bucks a month for my property. I could probably rent it for $2,000. So I'm making a lot more money now. There are some more expenses when it comes to midterm or short term property. You know, Internet and electricity, utilities, all that sort of stuff. But in the end I'm going to be making about 7 or $800 more per month doing a midterm rental. Now here's the great thing. This company wants to actually do an entire year lease as a midterm rental. And that's going to start I believe in April. But in the meantime, here's the great thing. Remember, midterm is amazing. I want you to get in your mind that we buy a property, we make sure we could rent it long term because that's worst case scenario. We could rent a long term, make money or we can rent it midterm or rent it short term. Now my midterm property in February to the end of March, basically two months it is in. My property is in Phoenix. It's in Peoria actually, the city right next to Phoenix. And we have spring baseball. It's like the Seattle Mariners and like just. And lots of baseball teams come to my area for spring ball. People actually just come to watch spring ball, which I never went. It's kind of funny, I'm not a big baseball fan. I've been played baseball and all that sort of stuff. I'm not a big pro sports fan anymore. We, that's a whole another rabbit trail we don't need to get into. I played college football and so I love sports until, you know. Anyways, you get older and you start having kids, you start realizing what's important then getting back too quickly. Sorry for jumping on that little tangent. But now it's two months. February and March are the biggest times of the year in Phoenix. And I have it rented for 40 days. 4, 040 days for over $7,000 for 40 days because it's peak season. Now in the summer it's not going to be as good. But hopefully, Lord willing, I'm going to have this company that already rented for three months. Hopefully they're going to be renting it for 12 months at $3,500 a month. They already said they want to do it. We just got to get the contract signed. But this is the beauty about real estate. You invest in real estate, you buy one rental property, you make sure you could rent it long term. You could also rent it short term and midterm. You make more money with both. Now I'm bringing on a fantastic expert who's going to show us how to do all of this. He's been doing this for quite a some time. And I honestly in listen to this, I learned a lot which is super fun. I love learning. Plus meeting people is just terrific. And I am releasing this episode a day early because I want you to know that I'm going to be in Charlotte, North Carolina for the Christmas party. It's the Rube Club Real Estate Wealth Brothers Club Christmas party in Charlotte, North Carolina. Check the link in the description. You will be able to find all the information. It's going to be Monday night at 6pm at the Hilton University Hilton in Charlotte. And then Tuesday I'm flying to the Phoenix Rube Club. Phoenix Rube Club. It's going to be at the Holiday Inn right next to the airport as well. So Monday I'm flying to Charlotte, North Carolina for the Christmas party for Rube Club in Charlotte. And then Tuesday I'm flying directly to Phoenix and then going to go to the Tuesday Rube Club Phoenix Christmas party. Super, super fun. Then Wednesday, fly home. So it's going to be a whirlwind. But if you're in any of those areas, even if you're in like the next state, I mean I'm flying there. It's going to be a lot of fun. If you want to come hang out with me and lots of other real estate investors, honestly, it's all about connections. This gentleman that we're interviewing today, I met him at a conference, I met him at an event where he really was teaching people how to do this. And I said, hey, we need to talk some more. Like we need to get to know each other. And so fast forward, you need to come to the Real Estate Wealth Builders Conference. So we have the Real Estate Wealth Builders Club. That's the monthly meetup that we do every single month. We have three different cities that we're doing at Charlotte, Phoenix and Denver. And then we also have the once a year meeting where it's a conference, a three day conference bringing all of the master passive income people as well as other expert real estate investors and their students and their community to build one big community of three days of just amazing content, teaching, coaching and networking and making new friends. Now let's jump into today's show. We're going to be talking with a fantastic midterm rental. Actually the guy, when it comes to midterm rental, he's going to show us how we can successfully almost five times our money if we do it right. Here we go. This is my interview with Jesse Vasquez. Jesse Vasquez, thank you so much for being on the show, man.

The Dustin, thanks for having me, man. I'm super excited and glad to meet your fans out there and it's cool to connect with you and talk about midterm rentals because they are definitely up and coming and it's, it's, they're not passive, we'll put it that way and we'll talk about that in a little bit. But yeah, it's kind of.

Yeah, totally. The midterm space is, it's relatively new. I mean it's been around for a little bit but like it's starting to take off in general. People are more knowing about it. But you've also been doing it for quite a while, which is great. And you and I met at your conference, the Midterm Rental Summit, which I went to the conference, I was like, I want to learn more about midterm rental. I want to be, be around people. And so the conference was awesome. So everybody definitely needs to come check that one out. And then at the same time, you're also from, and I found this out that you're also from the same central area, Central Valley in California. You're from Turlock, I'm from Fresno. And so this is fun learning another real estate investor who has a conference who's from the Central Valley, who's helping people do invest in real estate. This is great. Now I mean I know a lot of people have good, great stories about how they got invested in real estate, but how did you actually think I want to do a midterm property? Because I'll be completely honest, in 2006, when I first started Investing. There weren't Airbnbs. There weren't vrbo. There weren't these things that you can actually go and just hire a property manager. You had to do it yourself or figure it out. I was like, I don't want to do that. I want to just do long term. It's so much easier. But then now we have so, like, it's ingrained into property management. People know about it. What made you. Like, how long ago did you just get started? What made you get into the midterm?

Yeah, that's a really good question. So I worked in healthcare for 17 years as a business development manager, which is a fancy way, Dustin, of saying sales rep. So my job was to go. I worked for a home health and hospice agency, and I would go into these different hospitals. I was a sales manager. So I covered from San Francisco all the way to Los Angeles. And one day I was in Modesto, California, which, you know, it's in Central Valley. And I was in doctor's hospital. And if you've ever been there before, it's a super dimly lit hospital. In fact, it has, like, that yellow hue when you're walking around and there's a nursing station. I remember walking up to it, and I heard this woman that had this beautiful accent, and she was saying things like. And maybe you can guess this, Dustin, I'm gonna let you try to do this right here. She was saying things like, don't you know, and isn't he a doll? And I was just, like, instantly drawn. Do you. What. Do you know where that's from? Do you have. Sounds like Canada candidate? Fargo, North Dakota.

No, Dakota. Okay. Really close there. You gotta. Got it.

I gotta go. Don't, you know, watch out for deer? Yeah. So basically, she. I went up to her. I was like, what are you doing here? Like, you're in California. Like, your accent is awesome because everybody says dude and bro and man, just like, you're from Fresno. You know that, right? And she said. She. Her name was Barbara. She was a travel nurse. And she said. I asked her where she was staying, and she laughed and looked at me and said, I'm staying on ninth Street. And if you're familiar with Modesto at all, ninth Street's, like, one of the worst areas. And she was staying at a Motel 6. I started laughing because I thought she was joking. Then I asked her how much she was paying, and she said she was paying $3,000 a month. And keep in mind, Dustin, this was back in 2015.

Oh, my goodness.

Yeah, I know.

Modesto I got goodness, 3,000amonth.

Exactly. It's like, it's a rough. It's a rough area. Drug infested prostitutes. Like, it's a place that you don't want to be. That's where this healthcare worker was working 12 hour shifts, was staying. And it just blew my mind. And she was paying three grand, which I didn't know Motel 6 was even charged that that much. So back in 2015, you could buy a property in Central California for 250,000. If you remember that, Dustin, maybe even less than that. Your mortgage payment would be like $1,300. So in my brain I'm like, holy crap. I've actually seen a bunch of barbers from San Francisco to Los Angeles to Fresno to all these different hospitals that I've been through throughout the, you know, entire coast of California. And I just started to look at it from a different lens. And I asked her, I said, barb, how do I actually, like, get to work with somebody like you? How do I get you to stay in one of my properties or in a property? Because I didn't have anything at that time. And she said, go down in the HR department and talk to one of the HR representatives in there and see if you can get a contract with him. Dustin, if you've ever been in a hospital, you know, you have to have a badge to get in. You know, they, all the nurses have a badge. I sat there, dude, in this hallway that was super yellow, dimly lit. I felt like a horror movie. And I waited for a nurse to go into the HR department. And I want everybody listening right now to picture this because this, what I'm gonna tell you guys right now, completely changed my life. In fact, I wouldn't even be here talking to you guys if this didn't happen. And most people won't do this.

And I want to pause for a quick second and share that honestly, I really want you to invest in real estate. Now. My new goal is to help 1 million people invest in real estate. So two things I would ask from you. Number one, if you get anything out of this episode, please share it with somebody else. Just say, hey, you know, check out Dustin and Master Passive Income. He really wants to help a million people to invest in real estate. That's number one. Number two, I want to get you to invest in real estate. Get my real estate investing course. Absolutely. For free. Text the word rental R E N T A L230 3777. Rental to 33777. I'll literally give you my course show you how to find the area of the country to invest, how to build the business first. You know, I always talk about that and how to find the right properties, how to make sure you're getting experts to do the work for you and scale the business to where you're making 250 or more in passive income. Scale it to quit your job. I'll literally get to you. Or go to masterpassiveincome.com freecourse. Obviously, it'll be in the description, but I really, really want you to invest in real estate. Because the more that actual, normal, everyday people own real estate that are good landlords, the better everybody's life gets.

I wasn't invited to go into that room, Dustin. I wasn't supposed to go in there. You had to have a badge to get in. And this door was the kind of doors that, like, they swing open and they'll all of a sudden close real slow so that people don't hear it right. We've seen those doors. And the door was shutting. In my mind, I'm like, should I do it? Should I do it? Should I do it? Something just happened where I just took off, and I put my size 11 shoe in right before the door closed. And I opened it up, and there was this lady sitting right in front of the door. Her name was Misty. Had this big giant sign on her desk. And I said, misty, I just talked to Barbara on telemetry, Floor 3 on the south tower. She asked me to come talk to you. She's staying at Motel 6. Did you know that that's where travel nurses are staying? And she was like, what are you doing in this office? And then secondary, we started actually talking about it, and she said that she's been looking for people that have property in them in the Modesto market for years. Never was able to catch anybody. But what I want everybody to take away from that is that I didn't have a property yet. I saw an opportunity, and hopefully after this call today, you guys are able to look at real estate in a different way, because I didn't even have a home, but I got a contract before I got the property. So after that, we can. We can talk about how I ended up picking the property later. I had a couple, you know, 15,000 saved up. But that right there, that moment is what defined where I'm at and have. I'm able to have this conference and conferences and talk to you and all these things. That was it, man. If I didn't do that, I wouldn't be here.

That is. That is a terrific story. I mean, that you found the. You found the. The, I guess, market. The people that want to buy before you even have the product, which, because you knew they would buy, they're already staying in a Motel 6. And if anybody knows what a Motel 6 is, I mean, those are pretty rough. And usually they're rough areas. You don't want to be around there. And in Fresno, there's a street called G Street. You don't want to be on g Street. That 9th street is very similar, but $3,000 a month, and then you already have a ready, steady tenant supply. And that is awesome. And then getting the property. Now one thing I want to switch to or like that my mind's starting to realize is that from COVID the nurses, traveling nurses had a lot of money. It seemed like they had a higher dollar amount, entire stipend or whatever it's called to be able to stay. But now it's gone down lower. And so I'm seeing a lot of people on furnished Finder, a lot of nurses and traveling executives too, on furnished finder saying, hey, I only have $1,400 a month. And so what I'm seeing now, it might. And it's still midterm, but renting out by the room instead of the entire place, you know, $3,000 for the place instead of 3,500, $3,000, you're doing $1,400 per room. Like, what are your thoughts about that?

Yeah, I'm not a big fan of renting by the room. To me, it was like I was able to get a contract with the hospital. And that's where it changed for me is that the hospital is actually paying for these travel nurses to come. And this is in 2015. Things have changed since then. So I actually, I got a contract with Doctors Hospital for two years. We were paying $4,000 for a three bedroom, two bath. And they would put the nurses in there. So I didn't have to do anything about. Like, this is why I don't like renting by the room. Each room is like managing its own property. You have to have a new nurse coming in. You have three different calendars you're working with. And if you have four properties like that, four times three, I mean, that's 24 different rooms you're moving around. And that's just. That's just a lot of work. The scalability on that becomes super difficult unless you have somebody on your team that's able to do that. So for me, I'm like, how do I get paid? How do I get paid up front? How can I have the agency actually be on the lease, be the leaseee, so I'm not having to worry about the clients that are coming through because that's what they ended up doing. And I just. For my W2 job, my job, Dustin, was to go in to create relationships with these customers that were TR or that were. There were nurses that were basically, if you fell and broke your hip, which hopefully that never happens and it's not going to happen to you because I see you work out and you're, this guy's a beast. If you guys haven't watched any of his videos yet, like, you're not going to bust your hip. But if you did, the company would call me. The hospital would say, hey, Jess, can you get some nurses to come see this patient? They're going to be going home. So I was already building relationships on a B2B level for years already. So it came super natural to me to be able to think about, okay, here's the opportunity I just got to create a relationship here. We get a contract. Everything in healthcare is contract based already anyway, so that's how the ball started to roll with me is that exact way right there. And again, landscape's changed for sure.

But I do like the idea of not renting out per room because like you said, with all the different nuances of people coming and going, are you still finding right now, like literally right now, end of 2024, end of 2025, that you can get contracts with, let's say hotel or hospitals or get actual contracts where the entity, the hospital is the one on the lease and they just put people inside there, I guess.

Yeah, there's a company called CHG Healthcare. They're basically like, if anybody's ever looked at this, it's called AMN Healthcare. They're the biggest, largest, they have Kaiser contracts, all these other places. CHG Healthcare does more of the personalized, small, like physical therapists, occupational therapists, more of the, you know, physicians that have a special specialty or, you know, like in hospice or something like that. They're actually paying for these folks to go stay in these properties. And what they want is quality individual operators that aren't like, you know, slinging crap properties on Airbnb. So they're looking for, you know, people that are, that are specific, that are building this way. So the healthcare industry has changed a lot. You do have a lot of one off nurses that get per diem pay and that's tax free. They want to keep as much of that in their pocket as they as they possibly can. In fact, Dustin, if you and I were traveling nurses, we would do the exact same thing. We'd be like absolutely. Cheapest room, the cheapest rate. I don't care who's there. Like I just want to be able to crash and pay less than a thousand bucks because I'm. That's tax free money that I'm able to keep. So that kind of shift has happened, started happening in 2022 when CO people were, those nurses were making bank back in that time because obviously there was enough clinicians to meet the demand for patients all over the US Right with everything going on. And yeah, now it's changed. Now the nurses, it's back to that kind of back to what it was before. But this is again where you get creative. Nurses aren't not just the only type of client that I go after. We have corporate entities where we have corporate companies that are actually working with us. I work with a lot of insurance relocation companies. So every 88 seconds in the U.S. dustin, somebody loses their home due to a fire or flood or the catastrophic events that we're seeing with this crazy weather that's happening all across the world. And everybody that loses their home has to be, they're displaced and they have to be put in another property. And these insurance Companies will pay 3 to 5x long term rental rates to get a landlord to pay to live, you know, to have one of their, to get the release their property off for three or four months to this family that's getting their place constructed. And that right there has been one of the best strategies that I found in real estate today. But it takes time, it takes energy and you have to be able to build relationships. But I mean we're getting 8, 9, 10, $12,000 a month bookings by connecting with these companies. And you might have somebody that stays with you for three months. But I mean I'm able to get my mortgage paid for the entire year in like a two month stay. And that's pretty freaking awesome because everything afterwards is just icing on the cake.

So this company or these companies that have other people, not just nurses, are they hard to really get into? I mean it's obviously you have students, there are other people that are doing it just in general, like just property managers trying to get tenants and stuff. Do they have like a glut people trying to get them to work with them or is that going to be somewhat easier to actually still break into that game.

I think it's still easy, man. The thing with it is, is that. And this is what I've. I've. I've always done is that I've always used LinkedIn, and I'm giving my strategies away right here for free. But it's cool. I want you guys to hear this because this is how I actually built this. If everybody goes into. There's a company called Ali Solutions. They have. They're the largest, you know, database company that has all these properties all over the US People put their properties in there and then they will actually go search. You have Farmers Insurance, Dustin. You lose your home. Farmers is like, al, go find a property for this family to go live. So if you go on LinkedIn, you just type in Al Solutions and Relocation Specialist, you'll see hundreds and hundreds of these specialists that work there. Guess what? I'm going to send a note and say, hey, I'm Dustin. I have property in Nashville and Arizona, and I'm not just here to talk about my properties, but I'm here to actually help you find housing for anybody that's in whatever markets. I have a database of over. I mean, I have 600 students in mind. You probably have a few thousand in years. So essentially, you have thousands of homes that are available for these companies. And now I'm starting to build this relationship with these companies this way. So it's not about getting my house booked. It's about how can I actually help and support these companies that are trying to find housing throughout the US and all they have to do is say, I need a place in Nashville. Guess what? Dustin's there. Dustin's got a bunch of people out there. So now I'm just connecting and, you know, making these referrals. And all of a sudden, now they're going to use me when they have a property in Fresno or Modesto or California. But it's not necessarily going to be my first property. I'm going to be helping them find something somewhere else. And I think that's where most people get stuck, is that they're looking at what I'm doing and they're calling these companies and saying, hey, my place in Modesto is a 3:2, and it's only 6,000amonth. And they're talking about their own property. Like, these relocation specialists don't give a crap about your property. They want to be able to find, you know, somebody that's able to tap them into the network that they have. They can help reduce what they're actually doing because they have tons of stuff on their desk. So I think, again, the people that are able to create the most out of anything are able to find a problem, put a solution together, and then start to work around that, not think about their specific mortgage. You're thinking about, how can I actually solve the problems of these folks that are actually working with me? And that's right there. How to build a business. And most people do it totally backwards. In fact, I did for years. And it's just part of the game.

Well, I love that idea too. And especially obviously in my scenario and yours. Like, we have lots and lots of people that we've worked with that have properties. I have lots of students who they, they buy a property and get long term and they're thinking, you know what I might want to do short term. Like, well, have you looked at midterm? Short term is. It's short term. Short term, maybe it could be rough, it could be good too. But I'm definitely much more so in the midterm or long term camp. But having a bunch of other properties, because if you talk to the one person, the person has lots of different markets that they have to take care of, not just one property. Well, what if they find one person for that specific property? Then it might work out. But if you have a network, if you have other people around you or if you just knew other investors, like, if you approach in that light and saying, I want to help you solve your problem, and that's like 101 of. If you read the book how to Win Friends and Influence People, it's like, how do you solve their problem? How do you get them what they want? And if you're talking to them, trying to get them to work with you, figure out what they want and get that for them, and then they're going to want to work with you as opposed to, what do I need? What do I need and what do I need?

Yeah, yeah. And that's the problem that I hear people message me all the time on Instagram or wherever and just be like, hey, I've been trying to do this and I'm asking about my property. I'm like, that's your problem. You got to like, get rid of your property. And like, how can I actually solve a problem? It's going to be some random property out in the middle of Iowa somewhere. But you can still make. This is. This is the crazy thing. And I think this is going to be the 2.0 of wholesaling. So essentially, what, what happens right now Dawson, is that I can get a referral for. Let's just use Nashville right now. A booking for 3,000 or let's say $6,000 for a family of four. They need a two bedroom, two bath. It's same and similar to their home. They're in whatever zip code. And I'm able to connect with you and say they're going to spend 6k right on that, on that, on that space. I'd reach out to you and say, hey, Dustin, I got a, you know, six month booking for $6,000 a month. That's 36,000. I am actually, if you're willing to take that, I'd give you that referral. I'm going to maintain the relationship. All you're going to do is sign the lease. I'm going to be working with the company myself, but I'm going to ask for 10% of the income that comes through over the next 36. So I'm going to make $3,600 by giving you a referral. So essentially I have the lead. I have everything already put together and I'm just sending it to you. The family is going to go walk your home. They're going to say, yes, I love it. You're putting the lease together. I'm sending you the $6,000 a month or whatever it is. 5,000 and you got your place booked. You're happy. You got six months of somebody staying there. They're a family, they're not going to jack it up. You have somebody coming in monthly and I make money, I take care of my, you know, relocation specialist. You're happy because you got your place book for 5k a month, which is amazing because you would have normally only got 3200 or whatever. And you know, your place is booked and taking care of the client. So it's like this is what's happening right now in this internal world that not a lot of people know about. But this is like there's people that are wholesaling these deals all the time. In fact, I just got one from one of my students. $50,000 for six month booking. And she just gave me the referral. Just like that was like, here, I got a referral for you in Modesto and family came and looked at it. 50k. I didn't do anything other than talk about what we're doing. And she got the referral. She's taking care of the client, I'm taking care of the family. And she's making her cash and, you know, I'm making the Cash too. So it's like, it's a win, win scenario. We're not competing with each other. And I think that right there is where you know most real estate. So it's really competitive, especially the short term space. Right. Everybody's like, I got the nicest pictures. I got the treehouse. I got 30 pickleball courts in my backyard and 10 cold plunges. And with a midterm space, you just have to have a comfortable place in a central location that isn't overly themed, that is put together in a way that is not like short term rentals. And I think that's why there are so many people that are appealing to that now, because short term rentals, you have to. You have to have an experience. People got to go and they got to feel something when they're there. Midterm is like, people are living there, they need to feel like they're at home. And it's a totally different context. You're not staying for two days, you're staying for months.

I. I think those are brilliant ideas. Have. How has your experience been with using Airbnb to find midterm? I have one of my students who's. He absolutely loves his midterm property and he puts it on Airbnb. It does a great job. And that's all he like anybody from Furnish Finder that contacts him, he pushes them over to Airbnb because it's so much easier on him. He doesn't have to worry about a lease, doesn't have to worry about it. Just like, they check out and then they go in. Uh, but yeah. What's been your experience with Airbnb?

Yeah, Airbnb is a great lead generator. And what I mean by that is this is where most people screw up. And when they're putting midterm rentals together, they'll list only on Airbnb and they'll have like. I remember when I first got my first insurance booking in 2016. So real quick, Dustin, I'm gonna give you a quick story to this. So I was. I got this amazing booking. It was like $6,500 a month for three months. This company came in, they said, hey, we're actually looking for a house for a family. We're gonna. We wanna rent this place for three months. They're paying the entire amount, including all the fees. And I was like, oh, awesome. They told me that they were exactly a relocation company. I got this awesome booking. It ended up extending being six months. So they paid 6,000, whatever change for six months. Big ass booking. I didn't ask questions. I didn't ask like, you know, what company are you with? How, how can I work with you more often? So I think you're gonna get these bookings that come from Airbnb, but if you don't put leases together, you're not protecting yourself. Airbnb doesn't give a crap about you. I think people need to realize that if you, they're not going to show up at your house and kick people out, you're gonna have to do that. You got to deal with all those things. Airbnb says they have a million dollar, you know, coverage policy. They cover what they want. It depends on the rep you get. So I wouldn't put any faith in that company at all as far as getting paid on a way, on a certain way or kicking squatters out. But they, it is a good place because there's so many people know it. It's a common name that you can get your property booked in a regular way by just listing on these platforms. But I think this is where if you're listing that when you're doing well and this becomes saturated, which it will, I think the midterm market is going to continue to grow. In fact, Blackstone, they just purchased a bunch of extended stay. They actually bought extended stay hotel, which is, that's your real competitor is in the 30 day model. So Blackstone's getting involved in midterm rentals and when they start getting involved in this, this typically institutional money does that three to five years before the general public starts to feel it. So they got into it in 2022. So I think 2025 is really going to be the year that more regulations are going to hit which push on the short term side, which push people to midterm rentals and more people are knowing about it. So it's like if you're just on Airbnb now you're competing with 30 people, but in 2025 you might be competing with 150. So, you know, now it's going to be a race to the bottom who's got the lowest prices. And this is why I believe if you connect with companies, you start to build actual relationships. You're going to have a Rolodex that comes through. And the best thing about what I do is that I'm actually building a business Dustin, on this side, which is the relationships that I'm building that send me referrals. Then I have the tangible, you know, real estate that I can touch. That's you know, the two things are together. And I feel like most people that get into real estate, it's been the same forever. You buy real estate, you get a property manager, you sit back, you collect a couple mailbox money here and there. But this is actually, you're building a business. And I think there's a new type of entrepreneur that's coming into real estate and they have that entrepreneurial mindset where they're trying to build businesses and they're creating kind of a moat to their actual real estate. So they're combining those two things together. I think those are the people that are going to be around in five or 10 years where they're actually thinking like a business. Not that real estate investors aren't, but there's just, it's been the same for the longest time and you're just starting to see this new version of an entrepreneur that's getting into real estate. I think that's really what I'm excited about.

I think that's a great idea too. And then if you're solely focused on Airbnb, what if you get three bad reviews or one bad review and then all of a sudden you just drop off? And that's why I don't like being, having all my eggs in one basket. Absolutely, absolutely. I want to make sure I'm spread out as, I mean even just like having a podcast to having YouTube channel to having Instagram to you know, having all these different ways. I don't like depending on one one way. Now walk me through the process because people listening, they're like, man, midterm sounds great. How do I get started? But like with Airbnb, it's great. They take care of everything, all the money to all that stuff. But if you are going to find somebody for just 30 days, do you set up a lease? That's a full on lease that they also pay a security deposit, a pet deposit. Like how does that. Is it just like a long term. You just condense it down?

Exactly, exactly the same man. Except I don't say tenant. Our. My attorney had us put guest in. We don't ever put tenant in there. So the goal is to if, if these people are on assignment, which they typically working class people, you know, it's the corporate working field, they're coming in, they're only on assignment. So they're on assignment. They're guests in a property for a certain amount of time. So ye. Yeah, we're doing a lease, we're doing background checks. We want to know who's staying in Our property that protects me and the people that are actually in the property. And with Airbnb, that's what scares the hell out of me. And you see these stories all over the place. In fact, just go on Google and read about them. There's Facebook pages that talk about this too. People will book for 30 days on Airbnb and they'll say, hey, can we take this offline, pay the same amount again. And then all of a sudden they're living in that property for the next six months without doing anything at all. Because people just assume that you don't need to have a lease, you need that, that's for protection. Like that's how you are protecting yourself and your asset, you know, over time and unfortunately.

What type of security deposit do you ask for?

Yeah, I usually ask for $2,000. Depends on the property. If it's a property like one of our higher end properties that the rent is, you know, I have a property in Santa Cruz in Aptos, California. Mortgage on that place is like, I don't know, $4,000. I'll ask for what that deposit with my mortgage is. So I'll say 4k on this property just in case. But again, keep in mind that I'm working with agencies and companies that I will try to have them be the lessee. So these are multimillion dollar companies that if they don't pay, I mean the likelihood of them not paying is, is, is, is high. Is not going to happen because they're multimillion dollar companies and you have a random contractor in your house, that might be a different story. But yeah, it's just, that's how I feel comfortable is that knowing that these companies are on the lease. But yeah, you gotta, you gotta do everything. Just like long term, it's the exact same philosophy. So if you're a long term operator, you wanted to get in the mid space, it's exactly the same deal.

So let me ask you, because my whole, I love long term because I have a property manager and it becomes passive. Like I literally don't do much in my business. I know I buy more properties, I do, you know, all this other stuff. But as far as like the day to day running of the property, you know when you bring, when you talked about the new entrepreneur that's going to be running these business, I think it's absolutely true, 100%. I personally don't want to do any of that work. So is it hard to find, are there companies out there that are property managers or people that are already built that business in, let's say. Well, I just think of my. One of my properties in Phoenix that's currently a midterm property that I could say, hey, you have the network, you have everything. Here's my property. Just like, you know that the referral that you got, can you just run it and you. Obviously you're going to make money as a property manager. You're going to do all the work. I just don't want to. I want to. As passive as possible. Is that possible?

Yes. Yeah. I would probably only do that with people that have been in my class that know how to operate this stuff in the right way. I think this is. I think 2025 is going to be the year of co hosting for midterm rentals. Exactly what you're saying right now, where there's going to be a big institutional company or like an evolve that hires somebody like me that goes in and starts getting all these contracts and does all these things and now adds that into a sector of being able to build. Yes. There's people that do that. I would make sure that they're doing it the right way or they're actually connecting with companies already have a Rolodex. Not somebody that's just saying. Or they're just starting because you might be sitting vacant for months. And that's the thing with midterm rentals is like you might have a really good two months or three months, but then all of a sudden it's a month or two before somebody books your property. So you have to be very thoughtful on who I'm going after, what type of client it is, who's actually coming to my market. And I think this is where most people get stuck. Dustin, you mind if I jump in another story real quick about how I.

Please do. We love stories.

This is going to be important here for everybody to see. And this is exactly what I want you guys to think about. So I had a. There's a Dave and Busters that was being built in Modesto. I don't know if you have. You've been to Modesto, but it's probably been years. This is. This is newer. Dave and Busters were being built from ground up. Right. They. As part of the mall in Modesto. And they. They dropped one of these buildings and they're building it back up. I drove by that Dave and Busters that was being built, Dustin. And in front of that building was a bunch of trucks. They had Louisiana plates and they had a company that was plastered on the side. So I took A picture like a creeper of that truck. And I got home and I called and I said, hey, I just saw that there's a work truck, a lot of work trucks that are over and they're built, you know, the new Dave and Buster is being built. I know this is random, but I actually house construction workers and folks just like you. Can you tell me a little bit about your lodging situation so I could see if I can actually save you guys some money. So she started telling me the whole thing. They had five engineers that were working in Modesto. They were staying at a Holiday Inn Express. Each guy had their own room. So it's five rooms and they were paying 150 something dollars a night. Ended up being $200 a night per dude. So 200 times five, it's $1,000 a day times 30. And they did get a discount. So you said right around 25, $26,000 a month is what they were spending to have five dudes in a Holiday Inn Express. And I was like, I have a five bedroom house that's literally 0.2 of a mile away from the, from the job site. Each guy would have their own room. Three of your favorite guys would have their own bathroom because it's three bedroom three. It's a five bedroom, three bath. So you pick those three guys. The other two are gonna, you know, have to figure something out, share a bathroom. But I'd be willing to rent that place to you guys for 10k, fully furnished, everything into it. It's got a pool in the backyard and that's going to save you guys literally thousands of dollars every month. And she's like, I don't know why I didn't think about this before. Let me talk to the team and we'll get back to you. They went and looked at the property, ended up booking the place for 10k. It was a 3 month booking and all I did was drive by a frickin truck of construction that was happening. And this is what I mean by the this. That's a hustler mentality right there, right? Somebody's like taking pictures and doing. There's a lot of ways to build a business by thinking that way. I've also worked with Gala Winery, which is a huge winery in Central California. Exact same, same scenario where this is different though. They were on furnish finder looking for housing. It was five people that were also looking for housing. They worked for Gallo. There are international workers from Spain they're looking for to rent by the room. I called Gallo And I said, hey, I just got five people that were sending inquiries on Furnish Finder. They all mentioned they were working for you. Do you have anybody in the department that I could talk to about housing and lodging? We actually ended up renting one of my properties to them for three years, Dustin. At $5,000 a month for whether they have people in there or not. And this is what I, this is what people don't get, like Frito Lay and all these companies that have conveyor belts and stuff like that. There's people that come from all over the world, all over the world, literally to come work on those kinds of things and put things together. They have, they have midterm states. You just have to find the right people and find the right contracts and find the right opportunities. And again, the very beginning of this episode I mentioned. I want you guys to think different after this conversation. This is exactly what I mean. Traditional real estate is what it's been forever. This is a new way of thinking, a new way of adapting and getting longer term bookings without the headaches that you typically get from the short term rental space. And yes, it requires work, it requires you picking up the phone and dialing and doing all those things. But I mean, that's how you build a business. It's not supposed to be easy, right Dustin?

Oh, no, no, definitely. Any business that you're going to start is going to be work. You're going to have to put work in it. But what I love about the model that you're creating is once you already have the contacts, it's going to take work to build up the contacts, build up the reput that you have as somebody who has properties, not just one property, but multiple properties or other people that you could connect people with. Or you have, you're, you're building this out. So you provide services for key people. I mean, that's really what it comes down to when you're providing a service for somebody else. You figure out what they need and you try to deliver that. And so I love that direction. Is there. Can you give me. And it's okay if you can't. But I'm trying to think of what, what would be a downside. What should we watch out for if we're getting into this midterm space?

Yeah, I would. Well, the thing that I learned about housing construction workers, dudes are going to walk in with their dirty ass boots and freaking kick stuff around everywhere. You're going to get beer cans in the backyard. You're gonna have stuff like that. So I think it's really important to have a cleaner that goes out either bi weekly or monthly that this eyes and ears on your property to make sure it's being kept up the right way. I think that's one of the beautiful things about being a midterm rental operator is you can get to, you get to see your place during the time. Right. And you have to have it up to par. So that's, that's one of them. The other one is, you know, a difficult thing would be it's, it's hard to connect with these companies. Most people will give up after one or two or three or five or 10 calls. People don't like to be rejected. You need to be used to that when you're getting into this space. Like you have to be used to people saying, nope, click, not going to happen. It might be a hundred calls before somebody lands that. Yes. But then that's when you get that. Yes. You build that relationship from them and that's what can feed your business. You don't need to have. This is what's crazy to me, Dustin. I'll talk to people that have a hundred doors and they're telling me like, man, they're making all kinds of cash, you know, $15,000 or whatever a month from 15 in front of those doors. I'm like, man, I got two doors, three doors. And I'm like almost doing as much as you, you know, with a hundred doors. And I think that's where people get confused. Like if you, if you put that energy and time into building something, the likelihood of you actually being intentional and really going after a company that's going to pay a lot more, you know, three to five long term rental rates, you're going to be able to make some cash flow on that. But again, you're going to have vacancies. And it takes time, it takes energy to build. But if you're in that mindset of I'm going to build something that's worthwhile, it's going to be around in the next 10 years. You have to have that mindset of like, I'm going all in. This is what it's going to be. I'm going to get rejected hundreds of times. Get used to it. That's just the way it is. And yeah, those are the downsides.

Yeah, okay. No, I totally get it. And thinking about the downsides, one thing that I was realizing was that if you have a midterm property, if it's not going to be like a long term where it's 365 days. It's hopefully rented. That's, that's your goal is 365 days. You might have a month or two where it's, you're waiting for a next contract to come in. Talk to me about how we handle that or is there a way that we can mitigate that where it's almost booked all the time?

Yeah. So if you're able to short term rent in between gap days, because we, we have that, that's awesome. That's what we do. We also work multiple different leads at the same time. So if I'm working with a, you know, travel nurse in one one side or working with a corporate entity on the other side, working with an insurance company on their side, we'll take whoever's going to come first. Like we're not going to wait around for people to figure stuff out. But yeah, you're going to have blocks of vacancy. Sometimes we'll fill those vacancies in with short term rentals. So midterm rent, drop some short term rentals in there and then we know somebody's coming, you know, January 15th. So we're not leaving the place just kind of empty hanging out. But one of the things that I want to make sure everybody knows is I've never operated my midterm rentals 100%. Like they're always 80% occupancy, you know, 75% occupancy. There's going to be times where you don't have that midterm occupancy and you have to be able to pivot into something else. And I think if you have the ability to operate a short term rental and it's not, you know, you have the ability to piggyback off both, that's the way to go. Especially if you're able to take advantage of the peak season on the short term side and then you transition over to midterm rentals during slow season. Now your income, the smart investors, intuitive investors, keep their cash flow all year long. It's like, you know, it's staying up top with, you know, you know, the short term rental space. Dustin, you'll have these peaks where it's like April, May, June, July, you know, August, all this money all of a sudden crashes, you know, September, October, November, December, January, February, March. That's when I'd be midterm renting and I'd start doing that three months before that season even hits. So that you're starting to build those relationships. You're building the, you Know the. You're connecting with the right people in your market. You're, you know, you're really being intentional about what you're doing, and then all of a sudden, you're hitting those months already booked. I think most people just don't. They're not. They don't want to put that time and energy. And Airbnb makes things easy. Like, I can have an iPhone 13, take pictures of a house, and they'll start making money from it. What other business can you do that in? Like, it's crazy, right? But this is a step further and actually creating an actual business that Brian Chesky doesn't own. You actually get to own the, you know, the house on your own land. If Airbnb goes away tomorrow or if somebody throws a party in your house, Airbnb will shut your listing down. Like, that's happened to me so many times. I'm not in control. Dustin, we just talked about that. We like to be in control of our own situations. Right. Which is why Dustin moved out of California, Guys, just so you guys know. I'm sure he's told you about it. But that's exactly the why I like to do midterm. I'm. I'm in control of my own properties. I'm building my own house on my own land. I have the referrals that are able to get me in these properties. I don't have to rely on Airbnb. And it's. It's not bad to start there, but I just. That's what I want everybody to know, that we're just employees of Brian Chesky. At the end of the day, you're just listing your property on his platform. That's it.

Man, I absolutely love it. Now, Jesse, you have a podcast that everybody needs to check out. Tell us about the podcast and how else can people reach out to you?

Yeah, the podcast is called the JV Pod. Check it out. It's on Spotify and Apple Pod and all that stuff. We talk about midterm rentals and entrepreneurship and just a lot of stuff in general. And then where you can find me most. Where I'm most active is my YouTube channel. And you should type in Jesse Vasquez. I should pop up there. And then I'm also on Instagram at the real Jesse Vasquez, because there's so many Hispanic Jesse Vasquez in the world. That had to be the real one. So you can find me there.

Well, also, I mean, you look at Jesse, you look at your profile picture on Instagram, like that is a professional awesome looking like picture. It's like Jesse got dressed up. He's wearing a suit. He's looking all dapper. I was like, dang, that looks really good.

Yeah. And then you see me in real life, you're like, what the hell happened to this guy?

Backwards hat and flat all.

I know I need to change it up. Yeah, that was my. I haven't changed that picture in years, man. But you're probably right. I need to.

Oh, I'm not saying you should. I just like, dude, he's got a. He's got a stellar, stellar profile picture there.

Yeah. Thanks, man. Yeah, that was my. That was my glamour shots, Dustin. Those my glamour shots I had to get done.

Perfect.

Perfect.

Well, Jesse, hey. Been fantastic having you on. I know I learned a ton. And everybody else is going to be learning a ton. Everybody check out his podcast as well. Super pumped to see everything that you're doing and really appreciate you coming on the show.

Yeah, thanks, man. I appreciate you and thanks for listening.

And that is it for today. Go ahead and get my free real estate investing course. Text Award rental to 33777. R E N T A L to 33777. You can also join my real estate wealth builders group coaching. Get all my courses. All right, guys, we'll see you in the next sa.