How Patryck Makes His Property Stand Out & Leverages Other People to Generate Cashflow

Quick Summary

Jeremy and Patryck talk about their strategies for building and scaling a successful short-term rental (STR) business by creating standout properties and leveraging partnerships. It highlights the importance of unique property design, high-ROI amenities, and developing operational efficiency. It also provides insights into acquiring co-hosting businesses and the value of local expertise to drive profitability in competitive markets.

Key Points

• Invest in "wow factor" amenities like outdoor showers, decks built into natural features, and luxury spaces to stand out in competitive markets. Prioritize essential “checkmark” amenities (e.g., pools, hot tubs) to ensure properties are not filtered out in booking searches.
• Use data-driven insights and personal experience to identify specific property types that perform best in a market. Building strong vendor relationships (e.g., contractors, cleaners) is critical in rural or competitive locations.
• Purchase existing property management businesses using seller financing or SBA loans. Relationships and trust with sellers are key to successful acquisitions. Scale quickly by inheriting clients, systems, and market knowledge from acquired businesses.
• Use tools like Rank Breeze to monitor listing performance and optimize pricing strategies. Leverage AI tools for guest communications, automating responses, and streamlining operations.
• Continuously innovate and update properties to stay ahead of the competition, avoiding "middle of the market" stagnation. Focus on experiential luxury properties that offer unique value, especially in high-traffic markets like Joshua Tree.

Full Transcript

Check out full episodes on:

1. YouTube
2. Spotify
3. Apple Podcasts

Jeremy: We are live with the Short-Term Rental Pros podcast from Joshua Tree, California.

We are with Patryck today. He has shown us all around to a bunch of the properties he either owns or that he manages, and it's been a lot of fun. So first of all, thank you for not only popping on the pod but for today, man. I mean, saw some crazy stuff that we're going to talk about.

But Patryck is doing it right. The properties, like the one we're at right now, he is setting up to succeed in 2023. Patryck has been on before, but for those who don't know, I'll let him introduce himself, and then we'll get into, you know, what exactly Patryck is doing to make his property stand out as well as how he leverages other people's property to build cash flow.

Patryck: Wow, Jeremy, that is like quite an introduction, man. Thank you so much for me being here, man.

Jeremy: Uh, this is for you guys listening we are literally sitting on boulders.

Patryck: Boulders, yeah. It's kind of wild. So, Jeremy, two nights ago I believe two nights ago, uh, randomly just hit me up and said, 'Hey man, why don't we just do, like, a podcast on a boulder property?' And I was like, 'Well, I think I have this one that'd be perfect for this.' And we're sitting here at a four-bedroom property we're going to turn into a five-bedroom property…

Jeremy: That he's under contract on. So technically, we are doing diligence right now.

Patryck: Due diligence.

Jeremy: And this is really part of the diligence process. You really need to see how the podcast situation is.

Patryck: And yeah, no, this is, this, if I can film a podcast here, then I know that it's a good property. So it's due diligence. So, if the agent's listening to this right now, uh, just know like I am, you know, I'm here to test some things out, like audio, right? And sunsets.

Jeremy: So Patryck, prior to this particular property, how have—like—what's your portfolio look like? Where were you? I know we did another episode, uh, back probably about a couple months ago, so you guys want to check that out after, for those who maybe haven't listened to that one. Yeah, tell us about yourself, man. What’s—what’s up with you?

Patryck: A quick rundown—I mean—I'm a 27-year-old short-term rental investor. I have seven properties in the Joshua Tree area, and then I have four or 35 management clients under contract right now. And so we manage a bunch of Airbnbs out here in Joshua Tree.

And honestly, I scaled pretty quickly. I scaled—I come from a tech background, and, you know, really, really quite fast. And I teach other people to do it. I have this thing called STR Nation. It's a community of short-term rental investors where we do events and then conferences. So a fun conference, really fun. Jeremy was one of the speakers.

Really fun conferences. One of my favorite, favorite conferences, just in terms of, like, fun.

Patryck: Yeah, absolutely, absolutely. And so, you know, I'm really happy to be here. Am I the first-time, second-time guest? First person?

Jeremy: I think you may have been one of the first guests. Uh, I'm not sure what number you were, but just for some, like, context, Ryck—he's unique in the sense where, well, for many reasons. Uh, very, very special human being.

Patryck: Hopefully good reasons.

Jeremy: Good reasons. Good reasons. But he, uh, he essentially found a co-hosting business to acquire a couple years ago and has really grown a portfolio through, like, seller-financed co-host companies.

Which, you know, that's you know—that's an interesting approach. And he's taught me a lot about what that entails. Like SBA, like, you can get an SBA loan to acquire. What is—or Patryck—what is an, like—actually, let's break this down. So tell us about the first co-host company you acquired and, like, how that financing worked.

Patryck: Yeah, so the first company I acquired was almost by accident. Uh, the owners were getting a little bit tired with—you know—they had a new baby, they had a lot of stuff going on. They really didn't want to continue operating their property management company.

They had 14 properties, and they came to me. I had six at the time that I owned, and I decided—well, they decided—okay, well, they didn't know how to sell it, and we didn't know how to buy it. So we just kind of winged it.

And we decided to do seller financing. I put 50% down, and, uh, the second 50% depends on how many of those clients actually stay with the management company for the first year.

So, let's say that, you know, half of them leave, then we pay them less. So that's kind of how you protect yourself on the back end as a buyer.

Jeremy: And also from, like, the owner maybe, like, taking the clients to, like, their next…

Patryck: Non-competes. Right.

Jeremy: Yeah, I guess that's why that is.

Patryck: But there's—there's a lot of ways to do it. But the first time around, I definitely made a lot of mistakes. I learned a lot. Uh, currently, I'm actually a number—I'm pretty much a number three right now, actually, if you consider the contract buyout. I'm doing a contract buyout on a company, uh, right now, and then I'm in escrow with an SBA loan for my third company that I'm acquiring.

So, pretty crazy, you know what I mean?

Jeremy: And meanwhile, you know, he's been buying properties and not just, you know, buying turnkey properties—uh, you know—cookie-cutter, dilapidated, distressed properties, turning them from POS's into insanely unique experiences.

And that's what I mean. I've known Patryck. I've never been to Patryck's, like, properties before. I've seen him post about them, and, you know, I've heard him talk about them. But really, today has been, like, eye-opening. Cuz frankly, like, a lot of people, uh, you know, talk about 2023: 'Oh, our properties aren't making as much as they used to,' like, 'we're not buying in X, Y, or Z location.’

And like, frankly, Joshua Tree is like one of those places where people were going pedal to the metal—like full tilt—two years ago, and then they stopped. And Patryck's still doing it, you know? Literally the property we're at right now. And, you know, so I kind of, like, ask him, like, 'What—what—like, what gives you confidence in properties nowadays?'

And, you know, he talks about, 'Oh, you know, they need to be unique and yada ya y.' But then today, I've seen it firsthand. Like, they're not—they're not BSing, like, you know? And I mean, I think one of the specific things that you look for in properties is boulders.

Patryck: Seems like a common theme, yeah.

Jeremy We go to the properties, and I'm like, 'All right, the new ones, they all—there's some big rocks there.' What they do, which is really, really cool, is, like, they'll build decks kind of, like, into the boulders. Or well, yeah, you don't build the boulders into the deck.

Patryck: No, boulders are there, and you kind of build into the—and it's funny cuz, like, sometimes there's, like, boulders, and we'll, like, cut the wood around the boulder and, like, just let it be part of the deck. And it's this cool, unique feeling. Uh, and our properties crush it, like, compared to the competition.

Not just buying the right location—uh—which is, you know, people come out here to just be away from everything. Like, it's so freaking peaceful out here.

Jeremy: It is. We can't—can't hear a damn thing other than our voices, and they can probably hear us two miles away.

Patryck :And they probably can. Sound travels really far in a desert. But the desert is a beautiful place. As you can tell, there's a beautiful sunset happening right now, and…

Jeremy: Excited for that sunset today.

Patryck: Oh, 100% excited about—for that sunset. It's a special moment, honestly. And I think, you know, I—I hope that, you know, we remember this. This for—for forever, you know? That's—that's the big—that's the big trend we want to create: forever properties, forever friendships, whatever it is. Like, the forever—the long goal—is, like, what we're really striving for these days.

Jeremy: You're not in it for a good time. You're in it for a long time.

Patryck: Exactly. And that requires commitment. So, like, when you take down a property, you got to make sure that you're committing to the process. You, uh, you know, make sure that you understand what you know, and, like, you don't buy things that might be, like, the shiny object, right? Like, you want to go with the, think, tried-and-true thing that works.

Jeremy: And I think what's cool—so—so just, like, correct me if I am mistaken, but—so you own, uh, and, you know, you have business partners, you've raised money from investors—seven properties? You manage, I don't know at this point, like 30 more? But that number is increasing as you, you know, when you close on new co-host companies.

So, based on the fact that you have, like, so much—like, you have yours, but you also have the data on, like, 30 others that you manage, right? That really kind of gives you the inside scoop on what works.

Patryck: Yes, and that's actually a really good point. I think what—what—and I think you do this as well, which is understanding when you manage in a market, buying in that same market has a lot of advantages, right?

Because not only do you have all the contractors, vendors, everything for that specific segment of the market, but you also have—which you can use across your portfolio, right? And it makes it easier when you buy. But you also have, like you said, the real data set.

The only other data set that people use is AirDNA or some of these other third-party providers, and we all know that those third-party providers are not always 100% accurate. I've seen deviations upwards of 20-30% easy.

Jeremy: Yeah, and even as the co-founder of one of the tools that folks use to, you know, BNBCalc—which BNBCalc uses third-party data providers—BNB Cal doesn't create the data ourselves. Uh, but yeah, it definitely is, you know—yeah, every—every number online has context to it.

There is, like, a process that created that number, and you—you're—it's hard for you to, like, completely reverse-engineer that number unless it's your property, or it's someone whose property you know, or it's someone's property who you manage.

Patryck: Yes. One of the fun things I like doing for people that are going to a market and don't want to—or don't want to, like, make an investment just on the data that's, like, maybe 30%, 20% off—um, just talk to some of the property managers that are in the area and act as if—I mean, I don't know if this is bad advice—but act as if you want to, uh, work with them…

Jeremy: Like you want to buy a house. I actually—I actually did that. Uh…

Patryck: and you understand, like, what works, what doesn't. They can tell you everything. And I do that for people, and then they never work with me.

So I've had that happen, and, you know, fair—fair game to them. Like, we're all in the business. I'm in a business sharing knowledge. I don't mind.

Jeremy: So, well, then when you're right, and they come back and be like, 'Damn, he was—he gave me a lot of value…’

Patryck: and sometimes they come back.

Jeremy: He was right. And you know what? Actually managing properties in the middle of the desert is a lot of work. If you only got one property

Patryck: It’s a trap. It's a trap, Jeremy! I get them to think that self-managing is easy and then—come back.

Jeremy: Yeah. Well, just to be—just to be completely frank. So, like, I have a property management business, you know. Patryck does as well. And mine is in, like, a rural location. This is a rural location as well where service providers are limited.

So it's like my value prop to an owner is, you know, I have scale here. Like, people will come to the property, and they'll take care of crap. And, like, if you call them yourself, they probably won't come, you know? Like, they just won't. Like, they have, you know—they don't want—like, you know, they have something else they need to do.

So when you have scale, you have leverage with your local service providers. And a lot of folk—and I think we were referencing, like, one of your clients earlier who bought and initially, like, thought about self-managing. And then they're off in Australia. And now they're, like, you know, they don't want to be—they're 12 hours off, you know, the other side of the world now when, like, an issue arises.

Patryck: Exactly.

Jeremy: How—how are they going to get someone to come out to the property?

Patryck: 100%. And self-managing—I mean, there's a lot of people that are going to probably hate on this and say self-managing is the best way to go. And for some people, it is, right? Some people have the time, energy, whatever.

Jeremy: Say, if you're in a city too. Like, if you're in a city it’s easy. You can just go on Thumbtack, get someone there in five minutes. Yeah, and there's so many vendors, right?

Patryck: Here are your traps. So, like, people lose—I—I can't tell you how many times people have come to me and said, like, 'I've lost 50 to $100,000 because I had contractors or I had whatever.' And there's a lot of headache with it, but also a lot of money lost.

And so, like, if you would have just hired a, you know, property management company—like us—like, we have contractors that we offer to clients to use for the projects that they need to get done.

Jeremy: Yeah, you have contractors. You also have, like—I mean, in 2023, interior design is, like, super important. So you guys…

Patryck: What do you think about the interior design of the places we've seen?

Jeremy: It was—it was good. It was good. I'll have to give, um, shout out to Nic…

Patryck: to Nicollet.

Jeremy: Yeah. I mean, I met her at your conference. And, you know, I heard she did these things, but now seeing them myself—she's—she's, uh, she's —" "And I like how you—one thing that, uh, she's had—some, like, ideas that probably weren't, like, the textbook, you know, textbook, uh, Joshua Tree designs. But you've—you've ran with it. Uh, you just let her do her thing.

Patryck: I think that's the thing that's scary for a lot of investors, though. They want to see an ROI on something or whatever.

Jeremy: What's the ROI on a mushroom…

Patryck: A mushroom room? I can't tell you what the ROI is."

Jeremy: We're going to have to, like, just go through the list of the properties we've seen today because they're crazy. So I'll start with—I'll start with the first one.

So this is a property, uh, that you—you bought a, like, 5-acre lot where you have one existing property, and you are going to build an additional. So you're subdividing the lot to build a second property on it.

The first property—boulders. Elevated deck. Pool built into the deck. Hot tub built into the deck. Outdoor shower built into a boulder—which I was so confused by that. I was, like, trying to reverse-engineer. Cuz literally, he had the pipes for the outdoor shower were inside. Looked like they were inside.

I was like, 'There's no way.' I was like, 'This is possible. Like, there—you didn't use, like, Elon Musk's, like, Bouldering Company and, like, build, like, a tunnel underneath this boulder to, like, come—there's no way.'

So what they did was, like…

Patryck: It's a trick, man. You don't have to give it away all my…

Jeremy: Yeah, yeah. I'm—I was like, damn, that was 10 minutes. If I was a guest, I would have spent 15, 20 minutes there just looking at this being like, 'How the hell did they do it?' And it's heated too, so it also has the hot water. I digress.

So that was the first property. Super cool. Then we went to a couple of the ones you manage. Like, you know, massive six-bedroom houses, pickleball courts, basketball…

Patryck: Full court bball courts, you know, just sauna—everything. I mean…

Jeremy: Amenities galore.

Patryck: Amenities, We focus on outdoor amenities, great design, and honestly, like, I tell people all the time—like, I'm in the NBA right now. Being in Josh Tree is super competitive, and I got to stand out. And I'm okay with that. I’d rather go to a market where I know that the lead flow of people and the traffic is going to be there.

So I just got to capture that attention, as opposed to being in a market where I have to worry about if somebody even wants to vacation there, you know? So, like, I know 3 million people are going through Joshua Tree. It’s just a matter of fact—am I going to get that booking, or is my neighbor going to get that booking?

And so that's why I try to create the most optimal experience for my guest avatar so I don't have to worry about that, right?

Jeremy: Yeah. Whereas I'm, you know, kind of—one of my new strategies has been, like, buying a property where people don't really go vacation there. But then they see the house, and they're just like, 'Damn, we got to go there!'

Patryck: It becomes a destination.

Jeremy: They're like, 'All right, there's enough things going on here that we can—we could totally go here for, like, a weekend trip or, you know, in the summer we'll go here for a week.'

Yeah, but that being said, a place like Joshua Tree or, you know, the Gatlinburgs, the Scottsdales—like, you know people are going to come. But you've got to just—like, amenities—like, I would say, I say Patryck said this. I think this is an interesting point. He said, you know, there's check—there's checkmark amenities, yes, and then there's, like…

Patryck: Wow factor amenities.

Jeremy: Wow factors.

Patryck: So—so here's the way I like to look at it. So this is what I've learned, um, is that when people ask about, like, what amenities are going to get the highest ROI—and, and I don't know about ROI. It's, like, hard to really gauge that.

But what I can say is that there are certain amenities that will check—will—will be with the filtration system. So, like—so Airbnb, for example, has a filter system that has, like—people go in there. If there's a lot of options in highly competitive markets like this…

Jeremy: They'll start clicking, click and clicking.

Patryck: Yeah. They see, 'Oh, like, 2,000 houses left.' 'All right, well, I can—I guess I can afford a pool, you know, because hot tu—hot tub, yeah, fire pit.' And so they just, like, keep going, going, and, like, filtering more and more. So, like, then they're like, 'Oh, pickleball!'

Jeremy: Yeah, but like you go from—like, you go from, like, 600 to, like, 30.

Patryck: Yes, yes! But, like, pickleball is one of those things where you don't get a checkmark for it. So, like, why do it? So it's funny because the homes that are—that don't succeed are the ones that are, like—it's funny—they have this really cool amenity that's not—that's a wow factor amenity, but they don't have, like, a hot tub or pool. They miss on—they miss those two that you need.

So, you don't have those two? You don't even—you're not even competing. Once they filter out, you're out. And then, in the moment, then it becomes—and I'd rather be…

Jeremy: Guys, pools don't need to—a real big pool. That was also another—God, I learned a lot today. A pool—a pool checkmark can literally be a cast-iron tub…

Patryck: That was, uh, a cowboy pool.

Jeremy: A cowboy pool where they have a little bit of, like, you know, water…

Patryck: Filtration, 600 bucks, like.

Jeremy: Yeah, you just fill it, you know, take a couple—take a couple, like, cups of water, pour it in there. Check.

Patryck: Yeah, and you do the check mark, and then—guests don’t complain.

Jeremy: They don’t complain. It’s a pool, it’s a pool!

Patryck: So I think that, like, people don’t realize that sometimes it’s that easy to—you know, the check mark amenities are really important. But then people don’t focus too much on the check mark amenities. They focus on, like, 'Oh my God, like, it’s a pool! Like, I need to spend $80,000 for a pool.'

You don’t necessarily have to. But when it comes down to the—like, when it comes down to the filter, it doesn’t matter if it’s an $80,000 pool or a $1,000 pool, you know? It’s, like, the same thing.

But then, when—once the pictures come up, and they’re making a decision, that’s when you have to, like, sell them on something else.

Jeremy: If you have a big group of, like, 16 people, you’re not going to look at a cowboy pool and, like, book it. But if you’re, like, one, two—you know, two couples, right? That’s perfect.

Patryck: Yes, 100%. So, uh, it really depend—and it depends on the area. But at the end of the day, uh, you got to invest, and you got to build a, uh, property that’s going to outlast the competition for the long run.

And you’re probably going to have to continue to innovate, and, and, and—that’s just a part of it. But a lot of times, also, people say, 'Well, Joshua Tree, like, isn’t it a super competitive market?'

And I will say that Joshua Tree is—it is competitive. But I think the more—the more that the houses get elevated, what’s happening right now is the middle—middle, the crowd is just getting pushed out.

So it’s similar to, like, Kohl's or Sears, you know? Like, Sears is going bankrupt in so many places because they’re middle of the crowd. You don’t want to be middle of the crowd. You want to be either, like, experiential—like, great—or you want to be priced well.

So the people who are coming in new—like, you want to be more in the luxury, right? You want to get into the luxury field. Uh, and that’s kind of what—why—why I kind of go towards that way.

But what people think is that that’s a bad thing. I think that’s actually a really good thing, considering that the elevated—now that they’re squeezing out—the elevated amount of properties are higher. So there’s more people coming to Joshua Tree as a market because they know they’re going to deliver a high—it’s going to deliver a high result.

Jeremy: And some of these houses were so cool. Frankly, like, I’m going to be honest. So I’m staying at a house that I also stayed at last year. I have cousins in California, so we do our—like, the reason I’m here—as much as, you know, I would totally fly to California to hang out with Patryck for the day. Uh, but my family, we do, like, a family reunion in Joshua Tree once a year the week before Christmas.

So this is the third year doing this now, and we’ve stayed in the same house this year and last year. And what we’ve realized is, like, the house from—that was honestly, like, everything was, like, perfect last year. Like, right? Perfect. Like, every—every amenity, like, every little thing. House was, like, pristine clean—perfect.

It’s not this year. And honestly, I look at it. I’m like, 'All right, this house, like, yeah, it has the heated pool. Like, it has the putt-putt. But it doesn’t have—it’s, like, in a gated community. And, you know, it’s just, like, a backyard, you know? It’s not different, you know? It’s not that unique, you know? Like, you can’t see the mountains from it. You can’t—there’s no—there’s no boulders, you know?

Like, it’s not—and I would be like—this is probably considered one of, like, you know—yes, it does technically have, like, the putt-putt. It technically has the heated pool. It has the hot tub. It has the ping-pong. Like, it has kind of the all the check, check, checks.

But there’s probably a million houses that are literally just like this. And it does—the design is—is not, like, very out there. It’s—I mean, it’s, like, probably four years ago it was like, 'Oh, you know…

Patryck: It was probably pretty good. Four years ago.

Jeremy: Yeah, like, good enough. Like, sturdy furniture. But there isn’t, like, any color. There’s nothing like that really stands out.

What they actually did from between this year and last year is they had kind of a game room that just—all it did was had a foosball table in it. So it was kind of pointless. Like—but they actually walled it off and made it another bedroom. So what they’re trying to do is—they’re a seven-bedroom house.

Oh, so that was probably their way of, you know, 'All right guys, we got to do something here. This house isn't doing as well as we need it to do. What can we do? Add another bedroom.'

Patryck: And people think that adding the bedroom is the best thing to do. And sometimes, like, we'll have the space for an extra bedroom, but we think, like, you know what? Maybe let's just make it into a game room.

Cuz I know that's going to be a lot better than making—or a theater, you know, that's going to be a lot better than just making it into a, you know, standalone kind of—kind of like bedroom.

Because, like, you got to know your market. Like, I know my market. There's no difference between—well, not no difference, but very low revenue difference between a two-bedroom and a three-bedroom. So I know that adding that third bedroom really doesn't make sense in a lot of cases.

So, you know, things like that—you got to understand your market. You got to see, like, what's on AirDNA, what's on, like, BNBCalc, and things like that.

Jeremy: So knowing your market, having the data set—like, I talked to John Bianchi, the Airbnb data guy who I love, and I was like, 'What do—because they keep buying too.' And I'm like—I mean, you know, I try to surround myself with the pros who are, you know, have the data in different markets.

I've got the data in my markets. I work with people. So by working with them, you know, whether on, like, a mentorship level, I can see what's going on. When they get properties, I can also help them, like, 'Hey, I think this strategy is, like, you know, there's not a lot of data, but I think it has legs.'

And then if it does have legs, I'm like, 'Damn, all right, that worked here. Maybe that works somewhere else.' You know? So it's like—I try to surround myself with people who are the pros and have the data.

But, like, John—I was like, 'Dude, you guys keep buying, like, what—what—like, what are y’all—like, where are y’all doing?' And he was just like, 'Dude, we just have so much data in, like, the markets we're already in.'

Patryck: Wow.

Jeremy: So, like, we just—we have figured out, like, the exact type of property that works, like, for our markets.

Patryck: There you go! That’s what it is.

Jeremy: And that’s what’s—same with you. It’s figuring out the exact type of property that works within your market.

Patryck: You know what’s really funny? Uh, I’ve talked to John Bianchi, and I’ve also talked to Ryan—or not Ryan, uh, Kenny Bedwell. And both of those guys are, like, the data guys, right? Like, they know data in and out. They’re really smart.

Uh, and, you know, they’re right in a lot of ways when they collect data. But what’s funny is they both avoid Joshua Tree like the plague. According to the numbers, like, the numbers don’t make sense. When you look at a whole market overview of Joshua Tree, it doesn’t make sense to enter in as a new property.

And it’s just a lot harder. And, and I agree with them.

Jeremy: Also—also, it’s probably a pain in the butt because, again, the contractor issues. Like, entering a new market—like, for them, they need to buy, like, 40, 50—or not Kenny, but for, like, Bianchi, they need to buy a lot of properties for it to be, like, worth their while.

For them going into a market, they're like, 'We’re sending it. We need to make sure we build the infrastructure.

Patryck: Agreed.

Jeremy: And I think they’ve been scared of Joshua Tree. I don’t think they’ve been really scared as much as, like, they just don’t understand the nuances. And, like, I think he uses a lot of the properties that I—I have.

Uh, and there’s probably going to be a case study—a few case studies—that, you know, show that, you know, data is not always 100% accurate. When you look at a market level, it has to be a little more specific.

And, and that’s why analysis—I love the data stuff. I’m a big fan. I think you should always be data-informed. But there's a point where you get analysis paralysis, you know? Like, sometimes you just got to understand, like, what local people are doing and just, like, replicate that.

Jeremy: Yeah, and—and I would say the thing that people did a couple years ago was they were like, 'Oh, if you buy in this market and, you know, you have a four-bedroom that sleeps this amount of people, and you have a hot tub and a fire pit—like bang! You'll make money.'

And, like, it’s become a lot more specific than that, you know? So, like, each people—like—are like, 'Oh, I don't, you know—is this property versus this property? You know, I don't know which one.'

And, like, you're going to have more confidence to be like, 'Oh, yeah, this one. I just—for X, Y, and Z reason—I just know.' Like, I can't even—like, AirDNA is not going to tell me this.

Patryck: Yeah. Then—then sometimes owners are like, 'Oh, like, where's the proof?' And, like, you know, AirDNA is not going to say it, but it’s—I show them my properties. I show them literally the calendar.

I'm like, 'Look—$14,000 on this two-bedroom. All in, $500,000 on this two-bedroom. Like, there’s a reason that…

Jeremy: Well—100 grand a year, 14,000 in a month. Or something like that. It’s just that you said "$14,000." So that’s not…

Patryck: In one month. But, uh, that one's going to do 140. But that's like—that's like—that's a very different use case where there’s, like, not a lot of properties that can do that. But—but there are trends where you can understand those nuances and what works and what doesn’t by—by seeing all that, right?

Jeremy: Yeah. And also we're going to—you know—so we've got the buying, and—and—and something that you've done when you find these properties: you get them under contract, and then you go out and raise capital.

So walk us through: how does that—how does that process work? And he's not buying all these with his own money.

Patryck: Yeah, yeah. So—so most—most times, uh, I’ll be honest, like, uh, Jo—my business partner Josh—is my capital partner in a lot of these deals.

Recently, I've been making a lot more money, so, like, I've been, you know, pulling my weight and having half-and-half with him or paying him back for the previous properties or whatever the case may be.

But to get started, I was—I was leveraging his capital a lot. And, like, him and I will—will raise money with partners. Like, we'll get partners on deals. Uh, like the one that I have back there. I don't have the money to really take this down.

Jeremy: This is such a cool property, guys. Like, this is an insanely cool property. And this, again, this is not one that AirDNA is going to say…

Patryck: It’s not going to say anything about it making what it makes. I think once it’s done—like, we—once it’s done—like, I believe it can make, like, 300,000—like, could potentially do 250-300.

Jeremy: And this podcast won't give you full justice, like, what that…

Patryck: It's not fully done, anyways, we're going to have to renovate it. But I need—I need cash to buy it. So if anybody’s interested in partnering—I think that's really cool. Partnering with the industry expert that understands it already, and then being able to have a part of something really special. So it’s kind of the best bet.

Jeremy: So yeah, so anyone listening who’s looking to do—you know—passive or learn—you know—learn this process and learn through someone who’s done it, you know, time and time again, right?

Patryck’s DMs are wide open. Or—they're open. They're not too—they're not wide open. Open a little. Exclusive here.

Okay, so you’ve got the properties, like this one that you're currently under contract for. Uh, you’ve got the property management business, uh, the one that you bought—then you scaled.

Uh, and now you're also buying additional ones. I guess—what’s your outlook and vision for the future?

Patryck: My—so really, I think for the future of Airbnb per se, I think that Airbnb, uh—just in short-term rentals in general—have had like… I used to work in Airbnb in 2019. Or short-term—was 2019, yeah.

Jeremy: We didn’t—we didn’t give you full background. You found out about Airbnb by getting hired, and then they went through some sht.

Patryck: Yeah, yeah. COVID. And I got laid off.

Jeremy: He got fired, but he, like, he still had seen it. Like, he’d caught the bug.

Patryck: So I understood, like, what—I understood how they were scaling, what they were doing, and I saw. But one of the—one of the biggest things when I was there is, like, the problems that were happening then were—like, now we have, like, the PMS systems. They’re, like, affordable and really easy to use.

Back then, it was a lot harder to use. So, well, not even back then. It’s just, like, 2018, 2019. They’re just not as profound as it is now. And then now…

Jeremy: And when I started, I didn’t even—I didn’t even—I, I tried one of the PMS's, and I was like, 'I don’t get what’s going on here. Whatever, I’m just going to —' I only had, like, first, one property, so it wasn’t an issue. I was like, 'I’ll just log into Vrbo. I’ll log into Airbnb. Not a big deal. Like, one message a day.' Then when you get in 25, you’re like, is this sustainable?

Patryck: Yeah. So, I mean, yeah. But, like, the thing is—like, what I was trying to get at for the future outlook is, like, the tech grew so fast. And, like, the people that didn’t keep up with it—um, like, for example, me. I spoke at a local San Diego meet-up. There’s around 100 people there, maybe 110, and 30% of that room didn’t know what PriceLabs was.

Jeremy: And they’re hosts.

Patryck: And they’re hosts in San Diego. So, uh, that kind of—and there’s a lot of older people there—but that made me realize that some people don’t—sometimes forget about what really—you know, like, they, they don’t keep up with the technology, and so they can’t compete.

So it’s, like, making sure that you just keep up with the technology. Right now, a big trend is AI. So keep up with it a little bit, you know? Implement AI into your systems. Make sure that.

Jeremy: How does one implement AI into their systems?

Patryck: Well, like, you know, it’s kind of hard to—to really grasp 100%.

Jeremy: I’ve got to—I have Host AI, who was at your conference.

Patryck: Host AI?! Exactly. Cole. Cole

Jeremy: Get Cole on the podcast. Explain it.

Patryck: Cole—Cole actually got into Y Combinator. Yeah, he’s going to San Francisco. Really smart guy. I like him a lot. He actually has Joshua Tree properties. That’s—that’s his market.

Jeremy: Oh, yeah?

Patryck: He actually just sold—24 years old—just sold, uh, his recent one that set the record for the highest priced home sold, I think, for a four-bedroom. So he had a four-bedroom with a pool and a pickleball. Like, new build, like, amazing. Like, the top finishes—everything. Uh, he did a really good job. And he does new builds all the time.

And, and, you know, that—you know, he does AI basically. And so, like, he’s, like, one of those people that you should talk to.

Jeremy: Well, he showed me—so, like, for example, what his software does—or one of the use cases—is let’s say that you have a guest who, like, requests a late checkout. It’ll send an automated, like, WhatsApp or Facebook Messenger message or whatever you use to talk to your cleaners.

And it’ll send them a message saying, 'Hey, heads up. Like, so-and-so guest just requested a late checkout. Can you confirm or not that, like, you’ll be able to accommodate this?'

So then the cleaner can say, 'Yes, like, I can do that,' and then it can come back and accommodate the late checkout. Or, like, you can create, like, rule sets based off of situations and automate them so you don’t have to, like, be…

Patryck: or, like, guest-like questions, right? Like, eventually you have the same answer over and over again. The AI can respond for you in some ways. Or, at least, like—what Cole does is, like, the AI allows you to, uh, send you, like, a—it does, like, a Slack integration, and it sends the Slack where a VA can, uh, approve it. Pretty much approve a booking, approve the message. Say, 'Oh, that’s a good message.'

So it’s, like, there’s still human element to it, but it’s leveraging technology in a way. So, like, small things like that. Like, we're thinking about those things because we want to stay on top of the curb—like, what's working. Another example of this is Rank Breeze. Uh, you know, a lot of people use Rank Breeze, but I use Rank Breeze to—to see what page my properties are at, because that's important to me.

Jeremy: Is Rank Breeze like—it just tells you, or does it actually help improve it?

Patryck: So it helps you improve it too. They have, like, a whole idea of, like, for example, like, 'Oh, like, uh, these are the amenities I think you should check to, to, you know, show up a little bit more with the search filter or whatever.' Like, this is where you are with page ranking.

Like, for instance, when you drop—like, let's say you drop prices, and, like, let's say your prices are really high and your page—you're page 10. You're not booking. Then you should probably lower price because that's going to jump you up to, like, page two, three.

Jeremy: Are you telling me I actually don't use Rank Breeze? Should I be using it?

Patryck: Honestly, it's actually a game-changer. I'm not even—I'm not just saying that. For everyone there.

Jeremy: All right guys, see—it's been super valuable for me. And you guys are…

Patryck: I don’t think I could—like, I use it every day. Like, I go in there, and I look at the impressions. I'm seeing, like, is it going to convert? What is the conversion rate? Okay, if the conversion rate's low—

Jeremy: Do they just look at Airbnb, or do they look at Vrbo too?

Patryck: They just do Airbnb. I had, uh, the CEO on my podcast, and he did mention a little sneak peek that might be other platforms also coming sometime. Uh, so that’s something to look forward to. But so far, it’s just—

Jeremy: How much is—how much are they per?

Patryck: For three properties… They have different, uh, tiers. For three properties, I think it’s like 30 bucks. And then for 10 properties, it might be like 60, 70. I don’t know exactly. I’d check it out. But it’s not bad. It’s, like, very low. Now that we’re at four—like 30s.

Jeremy: So you do it for your client's properties too?

Patryck: We do it for the client properties.

Jeremy: Do the clients pay for it, or do you pay for it?

Patryck: We do pay for it.

Jeremy: Oh wow, so it’s that valuable that he pays for it.

Jeremy: So valuable. So valuable, Jeremy! I—yeah. But because, at the end of the day, like—for here's an example, right? Like, it tells you, like, specific days. Like, these specific days, we want to be able to—like, it's not booking, right? So we kind of start looking at the price, and we're like, 'Okay, maybe should we lower the price?'

We go into Rank Breeze. We go in the property, and we look—the price is well priced. And then we see that we're actually page one for those days. So we’re like, 'Okay, the booking is coming.' And then, you know, like, a couple days later, the booking comes, and it's like, we should have just, like, relaxed.

And they're like, 'No, no need to—you know—if we drop prices, we could have lost, like, 10, 20%.' Yeah. So it's, like, small things like that.

Jeremy: Chill. It's all right. All right. This is a vanity check.

Patryck: Exactly. Exactly.

Jeremy: Interesting. All right, so tangible tips so far—we’ve got: check out Rank Breeze, and I’m going to take that. Yeah. It’s also just, like, specific market expertise. Like, if you’re looking at a market, don’t just ask, 'Is this a good market?' Talk to the property managers there.

And don’t just talk to, like, the run-of-the-mill, like, lame, like, old property managers. Talk to, like, the young—like, the young, fresh—like, the ones who are using all the softwares and are employing all the best practices humanly possible.

So whether that’s, you know, Patryck here or—I don’t know, there’s a bunch of different people in different places. You can hit me up wherever. Well—you don’t—we don’t need to know where I am. I’m in a few places. We don’t need to…

Patryck: Yeah, right.

Jeremy: Anyone can hit me up for whatever. I’m—I’m—I like the chat.

But okay, uh, so other tangible tips that we’ve gone over: Cowboy Pools.

Patryck: Make—make your home super homes, like Super Properties. I know Bill fake coins that term, but just, like, you know, make your properties—don’t go just, like, the bare minimum. Like, make them really incredible. Uh, make them something that, uh, people are going to want to stay in for—for a long time, at least like four, five years, you know?

Like, and, uh—and that also helps with your value when—when you sell. Not particularly from an appraisal standpoint most times, but from value from, like, a seller. Like, they want to see, like, 'Hey, do you have your own listing for this property? Can I keep the reviews?' Like, things like that.

So, you know, just make—or amenities, right? Like, maybe they don’t add to the appraisal value, but maybe they add to, like, 'Oh, well, this is going to make 100, 120,000,' like, and it’s proven. So, like, I want that, right?

So that kind of thing is, like, just make sure to keep that—that part in mind.

Jeremy: Awesome. And then, just last question here—how does one go about buying a co-host business? I think I’ve asked you this before, but I’m curious.

Patryck: Yeah. So there’s a lot of nuances, uh, with the co-host business in general. But, uh, we can kind of dive into this whole thing a little bit.

So, co-host businesses are really about relationships, right? You’re buying a business. At the end of the day, these people don’t want to, uh—uh, basically work, or they don’t want to work with somebody they don’t really, like, know, trust, right? This is, like, sales 101. But it’s more so, like…

Jeremy: Even if they’re selling a business too, this works both ways.

Patryck: A lot of times these people are just trying—yeah, even if they’re selling the business, like, they—they don’t want to just give it to anybody. They want to give it to somebody that can continue the legacy.

Jeremy: So you come out in the car. You get out. You meet them, right? You shoot the sht with them. You show that you know what you’re all about, what your team is all about.

Patryck: 100%. I think it takes time, like multiple conversations. Like, we had a lunch date, you know—you know, we met up and then, like, entertained the idea of it. Then we had a couple more dates, and we went pickleball, and we—we were just hanging out all the time.

And it’s like now it’s like, 'Okay, we have a good relationship, like, and I trust them, and I can feel like this is going to work.' Um, so I think a lot of times, uh, it’s—it’s building that. And so building that is—there’s other—that’s the number one way: relationships and, like, your existing network.

So, like, tell people. Tell everyone and their mothers that you're looking to buy a business, and somebody might know, um, somebody that’s looking to sell—potentially has a business.

Jeremy: Be active on Facebook

Patryck: Be active on Facebook.

Jeremy: Patryck is a big Facebook guy.

Patryck: Big Facebook guy. So I—I go on there. I go into the groups, and I ask—I straight up ask, like, 'Anybody selling their property management business? Anybody is kind of tired of it?' And I get on conversations and kind of, you know, talk through it.

But I think, uh, if you don’t have those relationships, I think the second-best place is really about, you know, just—yeah, just doing a lot of those kinds of factors, pretty much.

Jeremy: Beautiful. Awesome. So, today we’ve talked about not only buying property management businesses—getting Super Properties. Patryck—everyone—he stays—he shares a lot of stuff on Instagram. So even though I hadn’t been to the properties before, I feel like I’d—I’d seen them. And they’re beautiful. So where can folk—folk, uh—follow you?

Patryck: Yeah, you guys can follow me on Instagram. It’s Patryck—P-A-T-R-Y-k underscore S-W-I-E-T-E-K.on Instagram. And then you can follow me. And, um, happy to answer any questions.

Jeremy: Add him on Facebook, he’s a big Facebook guy.

Patryck: Big Facebook guy, you know.

Jeremy: Awesome. All right, Patryck. Thank you so much.

Patryck: Thank you so much for having me, man. And check out these beautiful views while we’re at it.

Patryck: Okay. So until next time…

Jeremy: Yeah, we’ve got—we’ve got sunset coming here. We’ve got—we’ve got—we got some—something we got to do special that I’ll talk about on the next episode. But, uh, awesome. Cool. Take care, guys. All right, till next time.