George Salas is a Real Estate Investment Strategist. His team empowers property owners in distress, by partnering with investors and young entrepreneurs to achieve their real estate goals, in both the residential and commercial space. He got into Real Estate because he wanted to change his life, achieve financial freedom and empower others to do the same. What he loves most about what he does is seeing the relief that his clients experience when they finally sell the properties and the smiles that the investors have when they choose to close on a high, high equity deal.

He also loves coaching young and hungry entrepreneurs. Many of them want to break into the real estate industry, but don’t know how to start WITHOUT using their own cash or credit. He loves to play soccer, spend time with his family and travel back to his home country in Peru.

 

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Building An AirBnB Wealth Strategy With George Salas

 

Brett:

I’m excited about our next guest. He’s out of the great state of Texas and he’s a real estate investment strategist, his team and he empowers property owners in distress by partnering with investors and young entrepreneurs to achieve their real estate goals both in the residential and commercial space. He started in real estate because he wanted to change his life and achieve financial freedom and empower others to do the same. What he loves most about what he does is seeing the relief that his clients experience when they finally sell the properties and the smiles that the investors have when they choose to close on a high, high equity deal. Please welcome the show with me, George Salas. George, how are you doing?

George:

Brett, I’m doing great. Appreciate you having me here. It’s an honor as well.

Brett:

Excited to get to know you a little bit better. We’ve been talking all things about building an Airbnb wealth strategy. But before we get into that focus, George, would you help our listeners get to know you a little bit more by telling us a short part of your story and your current focus?

George:

My journey started when I was six, I’m from Peru, I moved here at the age of 15. Meanwhile, my parents got a divorce, I was very young, at the time, I didn’t get to see my dad, I lived in an adobe house back in Peru, and they just moved here, I had the opportunity for my parents, my mom to get a new life. When we came here, then to speak any English and didn’t know anything about this new world. We came in really, my goal was always to make an impact. Went to school now, and I started in the nightlife industry, in the service industry. I did that for about 10 years, and then while I did that, I discovered that I was just a super hard worker, and essentially ended up investing into a nightclub at the age of 27, and then after that, but not with without knowing what it was truly too. To know the aspect of real estate investing and having a true wealth strategy. I got into a bad partnership, and I lost everything I invested 400 grand in 2015ish, and by the time we opened a nightclub, I have been, about 9-10 years into this industry, and then all of a sudden lost everything. I told myself, I was gonna change my life and change people’s lives up to that.

Then I started studying real estate and in 2017 now launch a business that really just knowing the way that the way I wanted to truly go. I was just trying out, wholesaling and I was trying to fix and flipping and then while making that money, I ran into Airbnb and short-term rentals, and I started actually getting apartments and I rented apartments and as sub led them to into Airbnb and ended VRVO and booking.com. Essentially, I figured out that it was awesome cash flow, and then I swapped my entire strategy into all of my focus, and all my best is going into there. We’ve been able to build since then, from like, zero to about 170 $180,000 right now a month, and that took me about three years. Our focus is truly making an impact on real estate investors and just entrepreneurs in the real estate space via short-term rentals.

Brett:

Incredible and those numbers are staggering, and we’ll talk about those here in a minute, because we’re talking about building an Airbnb wealth strategy with George Salas, by the way, you can meet or hear and learn more about George in GeorgeSalas360.com as GeorgeSalas360.com. George, that’s a really unique, cool background. What a story what a journey. I want you to take us back to our high school days. I believe we’ve all been given certain gifts and some people call these superpowers some people call these strengths. I believe their God-given gifts that are given to us to be a blessing and help to others. What are those one or two gifts that you believe you are given and how does that help how you help and bless people today?

George:

I would say my biggest gift that I essentially discovered while I was in my young days was being able to connect with people. I would come in and bring people together and connect people, and I would bring them to events, I would make them have a great time. My gift was to get them connected to a great end, and today, I use that strategy, that gift to bring people and connect them, but connected with their purpose, their destiny, and it also helped them via our events, seminars in our training, and then they get to actually develop many relationships, they get to develop strategies, they get to connect with fellow industry, people that are in the same realm, and they’d really better their lives by developing new strategies and connecting and learning about what we do every single day and how we help people over, their circle battles in real estate investing and, exit strategies.

Brett:

Connecting well with others and bringing them together. It’s all accomplished a common goal or purpose or their purpose and their destiny. Is that a fair summary?

George:

I love it. Yes, sir.

Brett:

Let’s talk about the number one Secret to Building an Airbnb, strategy. What is the first secret to your massive success? I think you said $170,000 per month, is that in gross rental revenue? Is that a net operating income? What’s the number one strategy secret to building that?

George:

Your number one strategy for you to be able to really get profitable properties is essentially doing the right market research. Brett, and for everybody out there, like if you know your numbers, and you come in and invest into the right properties, and you get the right sweet spot the right margins, you essentially can be very successful. When I launch it, I started, I didn’t start with the right strategy, I was just traveling, just learning trying things out. I started with properties that were making me two to two and a half x by mortgages or rents, and today, some of the same properties and all many new properties, we’re in the realm of four to 5x, that’s over an average of 12 months. Every year, our margins are going to be four to 5x. That’s our gross margins, and essentially, our profit margins due to our multiplier four to 5x, our rents or mortgages, or our profit margins, for not every single property, but you know, just I would say, 50% of our portfolio, are in the 50% range, every single month and an average of 12 years.

Brett:

The correct margin is knowing your market, knowing your numbers, and in the beginning, you’re doing like 2 to tw2 and a half times the rent to the mortgage on a monthly basis. Now your mark is 4 to 5x. Is that a fair summary so far?

George:

That’s it.

Brett:

Number two, what’s the number two Secret to Building an Airbnb Wealth Strategy?

George:

And number two secret is actually getting the right property. If you don’t have the right property, then you don’t achieve those margins. First, after you figured out what is the right type of margin that you want to hit? Like? What are those numbers you’re trying to hit based on your budget, your risk, and your risk tolerance and your, the speed of implementation, that you want to reach a goal, essentially, you’ve got to figure out what type of properties in that market is going to make you those four to 5x? Once you figure that out, you’re set. Then you can maneuver that strategy and repeat it in different markets. First, market research, very crucial. Second, the right property and being able to hit those super up rentals for 5x multipliers.

Brett:

Excellent, keep rolling. Let’s go to number three, what’s the secret number three?

George:

Alright, secret number three is essentially your setup. Some hosts, some investors will launch these Airbnbs and be short term rentals, and they’ll just spend the minimum and I did the same why I just wanted to save money, and I thought that maybe, I wouldn’t need to have, x type of amenities or these appliances. Once I figured out that I really truly should put more money to my setup. That’s my interior design. That’s essentially the installation, the setup, and the amenities of picking up for that particular property. I doubled my revenue. Your setup and your interior design are secret number three.

Brett:

So far, we have three secrets where we got market research can make sure get the correct margins, you’re doing your math, making sure you do your homework there, you’re identifying the marketplace that you’re in, you want to be in number two, getting the right property, make sure that it actually fits, you’re not just buying because it’s the first deal that you finally got into contract after making 25 offers and they finally accepted your offer, you’re not just doing or making sure that the investment dog or tail is actually also wagging the the the investment dog itself, and then as well investing into the actual set up like don’t go cheap. But go all out Class A amenities high end. Is that a fair summary? Then all of a sudden is $170,000 is coming in per month like Kimmy there now will give us your journey from like 5000 a month to 10,000 months. Oh my gosh, 170? What’s the number one secret to scaling to such a large number per month? So

George:

I’ll throw into one last secret bonus guys. Essentially, that last secret is how you set up your marketing strategy in your business. Like within that marketing strategy you have, how are you going to book your properties? How are you going to get the book, how you’re pricing them? So your marketing strategy? Then what is this listing look like? How can I improve it every single day? Right, once you’ve got those four nailed it, everything else is gravy, there’s hard work. But I would say the way to get to 175, or $170,000 is essentially packing it up, doubling and improving every single day. I was always from day one, I was focused on the hustle, and I was working on the basis. But once I figured out that I needed to focus on three things. I needed to focus on learning, I need to focus on growth, and I needed to focus on purpose, and then improving my process for things. Learning, process, growth, and purpose once you’ve got those four down, but I focused on the present and every single day, truly just getting it done efficiently, productively, and then just achieving moving the needle every single day. But once I figured that out, I stopped wasting my time, and I figured out how much my time was valuable, and I moved the needle so much faster. 

Brett:

I think it’s pretty well said, I think it’s a quote, it goes like this, we don’t rise to the level of our goals, we fall to the levels of our systems and processes, and so although it’s important to have good goals, big goals and doing those things, you’re only going to get as high as your systems and processes, they have a place especially for short term rentals. Where it’s, it’s moving fast. If people staying there two or three nights, people stay there, maybe a week, maybe a night or two and, and having to turn and maybe you have some ideas and thoughts on a minimum night stays and when you do change your pricing and maybe can get into those here in a minute. But I want to I want to shift to that number because I’m really, really that’s really exciting. Is that $170,000? How did you best get to that? Some point is an inflection point. You’re 1000 a month, you’re five, you’re 10 you’re 20 all of a sudden, I’m sure. I would imagine it went from maybe 100 270 in a 12 to 24 month period. I don’t know like give us this What? What changed? How did you accelerate it so fast?

 

Building An AirBnB Wealth Strategy With George Salas

Building An AirBnB Wealth Strategy: “I got into a bad partnership, and I lost everything I invested, I told myself, I was gonna change my life and change people’s lives.” – George Salas

 

George:

I launched my first Airbnb in August of 18. About three years and about a month after my first-month launch with 10 Grand $10,000 a month, and then I started racing a little bit, I launched 10 Airbnb, and I launched Most of all, like towards the middle of that month. These were all apartments, these apartments, were costing me about $1,000 to rent, I didn’t own them. Then if you figured out that these were making me 2000 bucks each right 2500 and they were hearing downtown Houston, Montrose area, and this is pretty good. I’m making pretty decent cash flow. If you do a two to two and a half x, I think you could profit about 20 30%. We were bringing in, anywhere between six to 800 bucks per apartment. These are Brian’s downtown studios and one-bedroom apartments. Then I launched a three-bedroom house, then I launched a four-bedroom house, and all of a sudden, I realized that these properties were making a little more they were making me three to 4000. So in the middle of 19, which is about a year after I got into the business, and I was doing short-term rentals. I was doing about 30 to 40,000, and this was a big hustle and a big struggle because I had a ton of apartments I would say maybe 20 something apartments and I was only making like two grand apiece.

Then I hadn’t launched any houses yet. At that time. What I realized was like, wait, maybe I should launch some different properties. As I launched a house, flipping these houses because I had wholesale and I was doing rehabs and like I wanted to try this property this house. Three bedrooms, boom, three 4000. Then I tried another 134 1000. Then, essentially, I shifted my focus a little bit by the end of 19. Right before COVID. I had like two-three houses and then I realized that you can make for four to five grand in each house.COVID hits. I’m like three houses in Brett, maybe four. I’m doing pretty good. My apartments went to the drain. Literally, Because a lot of the market, dropped essentially all urban areas during COVID, and still recovering right now, and then all suburbs, a lot of the bigger properties and houses, that the income into revenue just rise up the roof, and the reason for that is people want to privacy, they wanted to be secluded, they wanted to be in houses, they thought that apartments downtown and in many areas wouldn’t be as secluded, as private as houses. I went through this transition, and I was really about two months of really trying to figure out what I needed to do to make the change.

While I am fixing to launch rolling COVID hit in March, I was fixing to launch many apartments, and I had several houses in the pipeline I was already doing. At that time, I was getting half of my best whenever I was projected about 70 grand, and I ended up in Moscow in 37, and April 27, which was a little bit of a loss, then may we broke even, we’re going back about, 35 40k and all of a sudden, I realize, was research and a lot, a lot of hours, 18 hour days figured out that the trick was more revenue, I needed to fix this neck. I went to this book, Mike McCalla, which were really made me realize what was wrong with my business.boo, I knelt down and I doubled down, increasing the houses. Our portfolio went for about 35 apartments and five, four, or five houses during that time, maybe even three, right till about the other way around. We have 27, 28 houses, and about 15 apartments right now, and we’re essentially just swapping three, four apartments for a house three portfolios for our house. When I got all these houses, each one was now bringing in more revenue because the revenue increased and all the property so I really, caught on to that, and I was like. Alright, we have to switch our entire model. Our entire strategy pivot immediately. Within a year, I gave up 20 apartments, switch them all for houses, I started buying the houses renting the houses. What we are today, that’s how we did that. In a year. We went 60 grand last summer, to about 70, 80 this summer consistently.

Brett:

I want to try to dissect some of that, and I’m not sure if and correct me if I’m wrong. Perhaps you were subletting these apartment complexes. Because you didn’t own them all. you’re renting amounts here, I’ll pay 1000 as long as I can sublet and do an Airbnb strategy, and they said yesterday he approved that right. Is that fair on that first part of the apartments?

George:

What we do is we have a lease a strategy called rental arbitrage, we go up to the landlord, and we essentially present them with an opportunity for us to pick up X amount of apartments now houses, and, and we just tell we straight up, let them know that we’re going to do short term rentals. We apply our rental arbitrage strategy, we know we let them know exactly what’s going to happen, and we give them a lot of perks, and essentially, with these perks, they’re able to rent these properties to us, in bulk, it didn’t have just one person to deal with, with somebody doing business, and you know, we call a professional landlord, a professional host of some professional tenant. We did that, and, that strategy worked fine. But when I started growing, we’ve got like, 30 employees plus in between all of our companies right now deliver it within our group. But when I started growing, I realized that, if I had 20 apartments, and each one of them was making me 500 to 800 bucks, 10,000 to $16,000 a month in margins. Look, I added one person, that’s too great.

I added another virtual assistant, that’s like 100 bucks a month or 1000. Then I added another person, all of a sudden, I was losing my margins, and I still had to say portfolio, and I just wasn’t growing, right.it didn’t matter. By the time I took myself out of the business in about two years, or a year and a half to two years. By the time I took myself out on the basis. My margins during COVID were zero. And then I’ve got to do something about it, and I swapped, that’s why I swapped my strategy. But we purchased also 1/3 of our portfolio is purchasing we purchased subject to so it’s very low when it comes to down payments, and then we rehab. We’ve got a couple of rehabs right now and we just launched or one to one rehab, we launched one rehab license to rental arbitrage last month. We’re in the private building through a diversified investment strategy.

Brett:

Some of them you’re purchasing some of them you’re like a fix and flip or wholesale. Some of them you’re just going to buy and then hold and rent out tickets depends on the deal. You’re not putting yourself in a box and somebody’s just going to do the sublet. Is that a fair summary?

George:

That’s right.

Brett:

Then are you approaching even owners and houses and saying, let me sublet your house, that you might be getting, let’s say 1500 rent, I could turn around and get like a five, four or 5000 a month in Airbnb, let me run that and give you a percentage of the profits. Is that another way to do it?

George:

That is one way, to set it up as some sort of Joint Venture or were you when you get them a little bit more money than what they usually get. Typically, right now our rents are about 20% higher than the norm. The big perk here would be letting them know, and then having a secure two to three-year lease with small rent increases every month, and when we negotiate that says, essentially they’re happy, they’re like, okay, you’re going to give me 50 to 75 or 5% more every year? I’ll read it to you for three, four years, and then we always have an option to extend for two to three more years., We’ve got other terms that we request, we’re protected in a way that says a little coming in, it puts some terms or some in our agenda that will allow us to get out of the lease, say another COVID happens, or the HOA doesn’t allow

Brett:

you, it’s nice to do that maybe the option to purchase right, if they put it on the market, you had the first right of refusal? Correct? We had that too. Nice, and then the other thing would be, the improvements. Because some of these houses might be a little bit, tired or sleepy. You got to come in, and you got to stick to your ule Number Number three, which is investing in don’t go cheap into the interiors. If there’s something that you don’t own, and you’re subletting are you putting the improvements in, or you’re asking the owner to do that or walk us through that strategy.

George:

The most part, we’ve already gone into properties that are improved, and if one doesn’t, here’s a different spread, if you go into a house that is not updated, but it’s so clean and well taken care of, that’s going to be a house that’s going to be out for rent on the market, versus you go into a house that is completely remodeled, modern, and it’s got a way different layout, the difference in those two, you’re gonna get more income, obviously, on this one, but the way that we set up our properties, we take this on, renovated or not updated house that needs to, maybe doesn’t have granite countertops or something right, and maybe it has, I don’t know, maybe it’s just not up to par, you don’t have an eyelid went up, we dress it up so nicely, and we create a unique selling proposition somewhere in that house, whether it’s outdoors, the backyard, or whether it’s a master bedroom, or whether it’s the kitchen appliances, or whether it’s the game room that we put awesome games, and at some point, people just care more about the amenities and them hanging out with the family and the comfort, in that they’re okay, paying a pretty good three to 4x, per month. You’re, we’re racing, we’re making pretty good money, even in the properties that are not updated. But of course, if you’ve got an updated property, you’re going to make a little bit more.

Brett:

You’ve answered some really good questions, and I appreciate that. It’s a really neat business and business model in Airbnb. We are ready to shift a little bit. We talked about Capital Gains Tax Deferral, and this and this on this podcast, as well. Sometimes people own these rentals, or own properties, and are looking to do 1031 Exchanges, but sometimes they can get frustrated, with the timing aspect of the 45 days one at or not having a clear plan to sell a business and defer tax. I’m curious for you, George and your clients, and your students, what’s been the biggest frustration when it comes to Capital Gains Tax Deferral on the 1031 Exchange?

George:

I honestly have not used the 1031 Exchange strategy yet. You’re going to have to forgive me on that one. I’m familiar with it. Of course, I’ve refined a couple of properties, a lot of them we’ve purchased just subject to I love to create a finance aspect. Right now, we know we’re using tax strategies, that are applied to the short term rental market, we’ve got like $25,000 or $30,000 in expenses, we could write per property a year, and essentially, we, I would say, we’re on the move, and when it comes to working with our students, right now, as many of them are just getting started, I think it would be great to have you on our podcasts and maybe talk about those right?

Brett:

I’d be honored to and happy to help. That being said, we’re running out of time you ready for the lightning round?

George:

Let’s do it, brother.

All right. Knowing what you know now if you go back to your 20 or 25-year-old self, what’s the one Golden Nugget Make sure to tell yourself to do?

George:

Never put all your eggs in one basket. Ever.

 

Building An AirBnB Wealth Strategy With George SalasBrett:

Second question. Number one book you’ve recommended or gifted the most in the past year.

George:

I’ve got to tell you, so many of them, but the one that has again and again just reminded me of how to build my business. It’s Traction by Gina Whitman. I’m going through it again and I’m building my business with the number of employees we have stopped, we applied at the beginning, and then things got a little crazy. What happens when entrepreneurs scale and over the last year, there’s our entire, relevant blogs, we used to have eight or nine people between all of us, and in less than a year, we’re over 30. We’ve increased our income, and we’ve started our, coaching company, and we started our seminar company, within the last year or so. Pratchett is the book.

 

Brett:

Question number three, what are you most curious about right now?

George:

I am curious about it? You know what? That’s a great question, Brett. I think that storage units really enticed me, my good friend, Victor does tons of them, and then he builds up from the ground up. I was, really enjoyed this strategy of also vacation area rentals. I haven’t done what we mostly do in the house, vacation rental type of properties, but of having been in a vacation rental area, an island or, the beaches with a laser. I feel like that, but it’s a site for impact, and those two.

Brett:

Second last question, what’s the number one quote or theme that you strive to live by?

George:

The quote, I would say, one that that I used to have all my on my jacket, and it’s so it’s live on purpose every single day.

Brett:

Last question. George Salas, after all, your success, all the rentals growing the business, helping students and your clients and friends and family members do the same? How do you stay centered in your values? How do you stay encouraged to charge forward to reach new heights?

George:

I am huge personal development. I’ve got a great Miracle Morning Routine. Focus on being grateful every single day about really putting my thoughts down. I focus on writing down my day writing down my goal, really putting my ideas down, and just making sure that I’m always thankful for my team, and I get them involved, I create a vision for myself, my significant other, my students, and my team, and I really focus on that execute that vision. Let’s do it, brother.

Brett:

Absolutely love it, George, for our listeners who want to get in touch with you. Would you remind them one last time what’s the best place for them to find you?

George:

George Salas 360, and 5 Houses 2 Freedom the number two. Number 5Houses2Freedom.com so those are the two places that you guys can find.

Brett:

George Salas, want to thank you for being on the show sharing so much wisdom with us, helping us to build an Airbnb Wealth Strategy. I would encourage you to keep connecting well with others use the strength of bringing people together, help them clarify their vision and purpose so they can achieve more of their destiny, and I also want to thank our listeners for listening and if you’re watching this on YouTube, to another episode of the Capital GainsTax Solutions which is podcast also streaming eXpert CRE Secrets Podcast and YouTube Channel. As always, we believe most high net worth individuals and those who help in their struggle clarify their Capital Gains Tax Deferral Options not having a clear plan is the enemy using a proven tactical strategy such as the Deferred Sales Trust is the best way for you to eliminate the need for the 1031 Exchange sell high and buy low all tax-deferred. You can learn more with the Deferred Sales Trust that CapitalGainsTaxSolutions.com it’s CapitalGainsTaxSolutions.com please rate review, subscribe. Please share this with somebody that could help out and inspire today. We so appreciate everyone out there and we’ll talk to you again real soon.

 

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About George Salas

Building An AirBnB Wealth Strategy With George SalasGeorge Salas is a Real Estate Investment Strategist. His team empowers property owners in distress, by partnering with investors and young entrepreneurs to achieve their real estate goals, in both the residential and commercial space. He got into Real Estate because he wanted to change his life, achieve financial freedom and empower others to do the same.

What he loves most about what he does is seeing the relief that his clients experience when they finally sell the properties and the smiles that the investors have when they choose to close on a high, high equity deal. He also loves coaching young and hungry entrepreneurs. Many of them want to break into the real estate industry, but don’t know how to start WITHOUT using their own cash or credit.

He loves to play soccer, spend time with his family and travel back to his home country in Peru

 

 

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