You’ve probably heard that short term rentals are a great way to make money. But with the changing real estate market, is it still a good investment?
Our guest, Tresa Todd, founder of the Women’s Real Estate Investing Network, joins us to discuss what’s been working for her in this current market, as well as her perspective on women increasingly dominating in the real estate space.
Here’s what she had to say….
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Listen to the podcast here
The Short Term Rental Strategy That’s Working Right Now With Tresa Todd
Welcome to the show that’s for you, those of you who worked so hard for your money and you’re ready for your money, start working hard for you right now. Do you want that freedom and cashflow today, not 30 or 40 years from now if you’re lucky, but you want it today so that you can live that life that you love, doing what you love with those that you love? Most importantly, it’s not just about getting rich. It’s about living a rich life because as you are blessed financially, you have a greater capacity to bless the lives of those around you.
That is a ripple effect I’m here to create in your lives today. Thank you for tuning in, binging, and creating your ripple effect, whether it be through this or your gifts and talents. Thank you so much for joining us today and I appreciate it. Especially those of you, some of our wealth Accelerator Academy clients, thank you for tuning in as well because we love you and we’d love to able to give you guys the great benefit that you have. If you have any questions, you can reach out to us at MoneyRipples.com.
Today, I’ve got a special guest that I knew I had to have on. I have Tresa Todd here with us. Tresa is the Founder of the Women’s Real Estate Investor Network, or WREIN, as we were talking about before we went to start. It’s a 2022 Best Business Award winner. It’s also the largest learning and networking community for women in real estate investors in the country. That’s one big reason I want to make sure we have her on today because I know that she’s been underrepresented big time. She’s a real estate investor, obviously a powerhouse motivational speaker. She is also the host of the Without Fear of Her Future podcast and a bestselling author of the book of that same title. Check that out. I’m excited to have her on today. Tresa, welcome to our show.
Thank you. I’m so honored to be here.
Give us more of your backstory. Tell us what got you into real estate investing in the first place. Were you born out of a crib real estate investor? How did you come to fall into this?
I have a crazy story. I have been in the medical field for 25 years as I worked for an ophthalmologist. We did eye surgery, LASIK, cornea transplants, and all those things. That’s what I knew for 25 years. I had these three sons who had all come out of college and learned, out of college, to start investing in real estate. They were working together. They found so much success and they weren’t killing each other. When your sons can do all those things, that makes me so proud. I was just very happy being their cheerleader. I’m watching them. They had found their calling and their niche. It took them three years and they kept saying, “Mom, come do this with us.” Finally, I said okay. I walked away from a 25-year career. I was in Tyler, Texas, which is a couple of hours. They were in Dallas.
I left my career and my church. I had a ministry. I had all my friends. I left everything at 50 years old to learn about real estate. I had no experience whatsoever. I’m telling you, it was the best thing I’ve ever done. It was the most exciting thing I’d ever done. On my very first deal, I profited $20,000. The most I had ever made in my career was $65,000 a year on one deal. I made almost 1/3 of that. It was just crazy. I was all in, but I was going to all of these networking events with them. This was in 2018 or 2017. I would go and it was 97% men. I love men. I’m the mom of these three boys and all that, but I was like, “Where are the women?”
I started the Women’s Real Estate Investors Network. I remember that very first meeting was a local meeting here in Dallas. I didn’t even know if women wanted to learn how to invest. Forty women walked in the door that night at the very first meeting, and I was thrilled. I kept having meetings all over the metroplex. I went to Houston and then we were shut down by COVID in 2020. All of our live events had to cancel. That’s when I took it online. I knew then women need to know this more than they ever have before. It just blew up.
We were able to go nationwide, and as you said, we’re the largest women’s real estate investors network in the nation. We’ve made history twice with having the most amount of women real estate investors in a room with over 3,000. Over 2,000 this time of just my students. It’s been a journey that I never dreamed of. It is so much fun and exciting.
I’ve seen the same trend myself when I go to mastermind events, especially when it’s big 7- and 8-figure type of real estate investors, whether they’re flippers, wholesalers, or whatever. You’d be in a crowd of 200 men and you might see 4 or 5 women. Why do you think that is? Why aren’t you seeing more women in real estate right now?
Predominantly, it’s always been a man’s world. Women were intimidated by investing. I’m hoping that the Women’s Real Estate Investors Network is turning those numbers around. It’s intimidating but I do think that this is a season for women and that they are now taking more chances. They’re stepping out and doing braver things. I see a bright future for women as real estate investors.
I’m anti-stock-type stuff now. I used to teach people about stock trading and I noticed, even when I worked with people one-on-one, the women tended to do a better job than the men did. The men tend to take a little extra risk that they shouldn’t take and would lose money, whereas the women are consistent. They would make it work. I don’t know if that’s necessarily the same I see in real estate, but I will say this. When I see in real estate, a lot of times, you get these almost machismo men. These men are hard drivers. They’re going to make it happen. I could see where that energy is different. I’m not that energy necessarily. I’m more chill and relaxed.
The one thing that women may have a little bit of an edge on is negotiating because they don’t go into negotiating. They’re going in and having a conversation. Let’s create a win-win. They are not overbearing. I find that women are good at that. When they learn how to have conversations, they care. They’re more nourishing. One area that I see women dominating is going in and getting these properties under contract.
One thing that women may have just a little bit of an edge on is negotiating. Because when negotiating, they're just going to have a conversation, let's create a win-win. They are not overbearing. Click To TweetI agree. As you know, we have a lot of audience that are more on the passive side versus active. Even on the active side, we’ve got people that are doing wholesaling and flipping, but that business has been leaner than it has been in the years past. What’s a strategy you’re seeing right now that’s great for people, whether they’re active or passive?
I’m going to be honest. I say that about all of them. I love all of the strategies, whichever one is getting me the deal right now but one of my favorites is short-term rental. My expertise is in what I call boutique short-term rental. It’s a step up from your regular short-term rental but not a luxury. Nothing is wrong with luxury, but that requires a lot of handholding and it’s a lot of work. If you really want to be passive and make the most amount of money, I believe that boutique is it. All it require is you are going to spend a little more money. It’s not necessarily more money, but you have to put a little more thought into the design. You do something to make it feel special with either themes or colors or something that doesn’t look like every other short-term rental that they will compare to.
The other thing that we do with boutiques is turn the garages, because you typically don’t need a garage in a short-term rental, into bunk rooms. I’m talking about fancy bunk rooms built in. I’m not going to Sam’s and getting a couple of bunk beds, but I’m talking designer bunk beds. All queen size so adults can sleep in them. Those two things have put us on the top. They stay booked out the most amount and we can get the most amount per night. I tend to bring in the bunk rooms and that designer look. It’s a lot like bachelor rep parties.
We’re in Dallas so we’ve got all the little sports teams coming into town to compete or something or even big family reunions. They can put all the kids in the bed in the bunk room. We have all the PlayStations and all of that in there. That has done so well for me and it’s a strategy that I teach my students. I love to see all the pictures they’re all putting in those bunk rooms. That’s a game-changer.
This boutique idea, is this better for areas where there’s a higher population, or is this better in Dallas? Is this better in certain other parts of the country? Where do you see it work best?
Anywhere. Location for short-term rental is the most important thing. If you are within 20 to 30 minutes of anything that’s drawing people in on a regular basis, it’s perfect. I don’t think it even matters what city. It doesn’t matter if you’re near an ocean, a lake, a tourist, a city, a winery, or whatever’s bringing people in. Wherever people may come in groups, these boutique short-term rentals with this bunk room are going to draw them in. They still save money. It’s still a lot less expensive for several families or people to go in together on this short-term rental. You have that experience and all of that with the shared space versus them all going getting their own hotel room.
Is this something you think requires a lot of money or is this something that could be done in a rental arbitrage type of situation?
You can do the rental arbitrage or the BRRRR method where you’re refinancing out. Only there is a little more expense in a short-term rental versus a long-term one because you have to completely furnish it. There’s more expense there. Other than that, it’s the same as a rental, and you can use the same strategies of getting into it and all that.
You mentioned comparing this boutique idea to doing standard short-term rentals. What would be the difference? Give an example of maybe a home that you guys did renovate or you’ve started to furnish, but you decide to put those little extras in. How much extra money was it, and how much better return did you get on the per night stay, for example?
How much more money is hard to say because it all depends on whether you’re doing a one-bedroom or how many bedrooms, and the size. I typically do a 3-bedroom, 2-bath. That’s typically what I’m looking for. I turn that garage into the bunk room that sleeps eight. Now I can sleep fourteen with regular bedrooms and then that. You can certainly charge more per how many you sleep. I’m bringing in more like that. When I say boutique, it’s not doing your traditional furniture. I have one and it’s all crushed velvet blue and some funky tiles on the walls that you wouldn’t traditionally do. People may not want to live there, but it is certainly fun.
That’s how you find a short-term rental. At first, it’s got to sleep how many you need. It’s got to be in the right area. You’re looking at the pictures and I want something that draws people that they’re like, “This looks like a really fun place to stay.” I always do outdoor furniture and outdoor grills. You make sure that you have some games. I’m going to say, for me, a little funkier than anything traditional. I can go get that tile and still get it for the same price as a traditional one. That didn’t even cost me anymore, but it’s different. Bright colors and always do like a barn door somewhere. That’s still fun. Maybe a little funkier light fixtures and not everything is so traditional.
Very standard like we walked out of Home Depot.
Absolutely.
I can see how that works because my family and I use Airbnbs all the time, VRBO, or whatever. We’re always using short-term rentals whenever we travel because we’ve got eight kids. We don’t always bring all eight. We might bring 5 or 6 of those 8 with us, but naturally, we’re looking for that same thing. We’re looking for space for us, but we also want to place this bill to say, “Here, go have your rooms. Get out of our face.” We usually have more bathrooms because we have a lot of girls out of those eight.
You would love the whole bunk room thing. That would work great for your family. It’s been fun. One thing is you have to tell the good, the bad, and the ugly. I set a lot of bachelorettes and bachelor parties. Occasionally, they get a little wild and mess up some things. You always have to go in and make sure they didn’t break something and all that. That happens but there is insurance with the short-term rental. Usually, it’s all covered. It’s not a big problem, but it’s something that you don’t have nearly as much with a traditional short-term rental. I think that the ROI on a boutique is worth whatever you spend. The time, energy, and money that goes into setting it up, you see a good ROI on that.
It sets you apart. In this market, are you seeing it easier to find homes to be able to do this with? I know it’s tough because people don’t want to sell. At the same time, people still want to have a house, but they can’t always buy a house. How are you navigating this market?
I’m only buying off-market properties. I do mostly my own marketing so I’m getting them at a deep discount, and then I’m going in and rehabbing them. I’m going to be honest. I’m not having that much more difficulty finding them. There are always people who are in distressed situations. If you’ll do your marketing to find somebody that’s facing foreclosure or someone that’s lost a spouse, so probate or pre-probate, that’s what I’m buying a lot of. You’re creating a win-win. They were about to lose it or they owned this property that they lived in a different city. They don’t have time to go in and deal with it. As investors, we pay cash. It creates a win-win for everybody involved and then go turn it into a short-term rental.
That’s fantastic. Let’s say somebody is reading this right now. They want to be able to figure out how to make that work. Is there something you offer that allows people to learn more?
I have my book, Without Fear of Her Future. I have a masterclass. It’s also called WithoutFearOfHerFuture.com. Go there and you can see when the next masterclass is taking place. You can find me at WomensREIN.com for Women’s Realestate Investors Network. I’d love for you to check us out and have a masterclass that teaches you all things, including strategies, about short-term rentals, and the other strategies that we’re using right now that work in this economy.
What would be some final words that you would offer for those who are tuning into this show? They could be men, but obviously, there are a lot of women that are trying to learn and gain from this as well. What would be some good advice you would give them?
First of all, I want to say, you can do this, girls. Jump in on this game. It’s life-changing. I don’t know another way. You probably agree with this. You can make this much money this quickly as in real estate investing, whether you’re playing the short game of wholesaling and flipping or building that long-term wealth with short-term rentals and all of that. If you’ve got some money and want to lend, be a private money lender. I’m doing a lot of that.
That’s the thing I would say. Get a mentor and find someone who can show you the ropes and walk you through how this all works. Don’t be afraid to jump in because it’s life-changing. It was for me. I believe that’s why I’m so passionate about sharing it. I want to shout it to the rooftop for men and women, but I’m especially passionate about sharing that with women.
Tresa, I appreciate your time today. This is so good. Many great nuggets we can glean from this and great words. I love your story, too. It’s a very inspiring story to see. You don’t see many people who get inspired by their kids and then go do something. It completely change your life and take it to the next level. That’s cool to hear.
I’m so grateful that they talked me into walking away. They helped me run my business now. We run it together. It’s so much fun to be in business with your family. Thanks for having me, also. This was fun.
Be sure to check out our stuff, WomensREIN.com. I know some of you are saying, “She was speaking right to me. I know she was talking to me. I need to do this.” Here’s the thing. You can read this all day long and your life will stay the same. It’s when you do something about it and you move to action, that’s when you start to see your life change. Don’t just be a hero of the word. Be a doer as well. Go and make it a wonderful prosperous week. We’ll see you later.
Thanks, Chris.
Important Links
- Women’s Real Estate Investor Network
- Without Fear of Her Future Podcast
- Without Fear of Her Future
- WithoutFearOfHerFuture.com
About Tresa Todd
Tresa Todd is the founder of the Women’s Real Estate Investors Network (WREIN). A 2022 Inc. Best in Business award winner, the WREIN is the largest learning and networking community for women real estate investors in the nation. She is a real estate investor, powerhouse motivational speaker, host of the Without Fear of Her Future podcast and bestselling author of Without Fear Of Her Future: A Women’s Guide To Real Estate Investing. Tresa and the WREIN have been featured in Business Insider, Apartment Therapy, GOBankingRates and select podcasts such as The BIG Wealth Podcast and The Live Out Loud Show.