Brian and John welcome Brad Clarizio to this episode. At 28-years-old, Brad is a young investor who holds rental properties, flips houses, and rents an Airbnb. On top of all this, Brad still holds a full-time job which increases his ease of acquiring loans and funding deals. Brad was born and raised in Columbus and made his first investment when he was 21. Brad discusses the opportunities that having a full-time job opens as an investor, but also the problems it can create. We learn about what it is like to be the landlord of an Airbnb, Brad’s processes, and the lessons he has learned about paying for quality.
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Covered Topics:
- What to expect when getting into renting Airbnbs.
- The importance of paying capable people to work on your properties.
- The intricacies of holding a job while also investing in real estate.
Show Notes:
- 01:22 – Core developments of this week.
- Buying a condo that should be an easy flip.
- A wholesale/wholetail deal getting listed as is.
- Listing some buildings after being in rehab for six months.
- 03:22 – Introducing Brad Clarizio.
- 06:04 – How Brad has gotten to where he is today.
- Meeting up with John in 2016.
- Investing in property since he was 21.
- The pros and cons of having a full-time job while investing.
- 09:28 – Brad’s current portfolio and activities.
- Owning thirteen rentals and one short-term rental (Airbnb).
- Turning his girlfriend’s apartment into an Airbnb after she moved in with Brad.
- Later leaving the apartment and buying a house to rent on Airbnb.
- Obtaining his real estate license in May 2018, many years after completing his courses.
- The process of turning the apartment into an Airbnb.
- 15:20 – A deeper discussion about Airbnb.
- The first few guests that Brad and his girlfriend have welcomed to the new Airbnb and problems they have had.
- Making more money but having more work to do.
- Self-cleaning the properties vs. getting a company to do it.
- 20:03 – Having processes in place.
- Brad constantly evolving with his team.
- Brian and John’s idea of possibly giving tenants a process manual, with potential problems this could cause.
- 25:09 – Paying for quality.
- The story of John referring Brad to his accountant.
- Using a professional photographer to take pictures for the Airbnb.
- A contractor that Brian and John had, who was also Brad’s tenant, who swindled all three guys.
- The difficulty of finding quality contractors.
- Rental quality work vs. flip quality work.
- 34:26 – Brad’s plans for this year.
- A major flip that Brad has a significant of money invested in.
- Starting a development project on a piece of land.
- Flipping a house in Delaware.
- Seeing his long-term future in rentals.
- 39:09 – Closing advice from Brad.
- Get your first deal.
- Learning experiences from doing deals as a new investor.
Topic Takeaways
- Putting property on Airbnb is more profitable than a long-term rental, but expect more work.
- The way you market makes a big difference on what kind of tenant you attract.
- Do whatever you have to do to get your first deal. There are infinite ways to get funding.
Tweetable Quotes
“You have somebody in your house for a year as a long-term rental. You’re talking about having 75 to 100 different people in a given year [on Airbnb], and it’s scary.” (Tweet This!)
“Having good people, to me, is absolutely #1. I have got a team I focused on building over the last seven years. They’re not exclusively mine by any means, but they’re people I trust.” (Tweet This!)
“Over the years, man, have I ever learned to just use the right people the first time. Paying for something twice is a lot more expensive than just paying the first person a little bit more to do it right.” (Tweet This!)
