Manage episode 364692605 series 2857622
Joe Riley, the founder of Patriot Family Homes, joins Taylor Loht to discuss his journey from military veteran to successful short-term rental investor. Joe talks about how he got started in real estate investing by accident and how he and his wife built their teams and systems while he was actively deployed overseas. He shares his strategy for investing in more affordable homes and markets to yield higher cash flow returns. They also cover topics such as understanding the rental revenue potential relative to the cost of buying homes, sources of tenant demand, the job market, macroeconomic climate, regulatory framework, and home price appreciation. Joe provides insights into how to appeal to construction crews as tenants, the importance of remote team management, historical context when ramping up quickly in a new environment, regulations, cash flow considerations, and seasonal changes.
This episode is packed with valuable advice for investors looking to follow in Joe's footsteps and create successful businesses!
[00:01 - 06:02] Opening Segment
- Joe's background and career
- He and his wife built their teams and systems while he was in the military overseas, actively deployed
- They focus on run-of-the-mill homes and towns for run-of-the-mill folks
- They specialize in transitioning traditional long-term rentals into more short-term rentals
[06:03 - 11:36] Achieving Passive Income Through Run-of-the-Mill Homes and Markets
- Allow people to achieve passive income objectives with higher cash-flowing use cases for single-family rentals in the short-term rental context
- Strategy is targeted towards run-of-the-mill properties and run-of-the-mill areas
- Focus on a cash flow-based model, looking at rental revenue potential divided by average home value
- Assess markets based on sources of demand, stability, job market, macroeconomic climate, and regulatory framework
- Quantify demand drivers using third-party data sources and look for communities with high turnover
[11:37 - 16:28] Patriot Family Homes: Building Teams, Systems, and a Mission-Focused Business
- Construction crews are a likely tenants in certain properties
- Funerals are the number one reason people stay with Patriot Family Homes
- Amenities for construction crew tenants focus on parking and beds/heads
- Utility-style product focuses on durability and functionality rather than style
- The importance of valuing passion, family, and hard work in a company
[16:29 - 22:12] Pros and Cons of Short-Term Rental Investing for Military Families
- Always underestimate the importance of historical context and overestimate how quickly people can ramp up in that environment
- The military is not the most entrepreneurial enterprise, but military spouses are some of the most entrepreneurial people
- Short-term rentals have better cash flow, but higher upfront costs and more unpredictable cash flow
[22:13 - 26:33] Closing Segment
- Best investment: buying Joe and his wife's first house
- Worst investment: trading Joe's stock portfolio
- The most important lesson learned: if you got good people that you trust, motivate, and train, they'll make you successful
"God works things out in interesting ways." - Joe Riley
"We don't give people jobs; we give people missions." - Joe Riley
Connect with Joe!
Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/
Track your rental property's finances with Stessa. Go to www.escapingwallstreet.com.
Join our Passive Investor Club to access passive commercial real estate investment opportunities.
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