JB Bullock’s story was just on an episode of the Fearless Investor podcast. It recounts his journey and, how he achieved 42 units in the short-term rental industry in only 24 months. JB’s experience is an inspiration to anyone aspiring to achieve success in STR’s.
JB and his wife have a passion for travel and, they prefer Airbnb accommodations. They had a super positive experience with a host in Joshua Tree and, decided to try hosting themselves. JB began his journey with house hacking, using an FHA loan. They bought a property with a back garage that had already been converted into a small studio. By renting out the studio as a short-term rental, JB and his wife could pay for their mortgage.
JB’s first try with a short-term rental was successful. So, he immediately turned his focus to scaling his business. To accomplish this, he studied many books, and podcasts. He also learned from other investors.
JB then made his first arbitrage deal, which he admits was not his preferred method. But, this helped him get started with scaling his business. JB no longer pursues arbitrage deals and focuses on building equity. He likes the tax depreciation that comes with owning and, creating generational wealth.
JB’s next four deals were all with capital partners who had high W-2 income. They could all obtain vacation home loans with a down payment. JB found the deals, managed and operated them, and split the equity and cash flow 50/50 with his partners. His success continued, and he has since acquired 26 properties with equity partners. He also manages an additional 16 properties for clients. All within just 24 months.
When it comes to relationships, JB highly values his six equity partners and management clients. He believes that communication and transparency are the keys to maintaining successful partnerships.
JB emphasizes how important it is to be selective in choosing properties that meet your goals. He also stresses the need to be efficient and proactive in managing your properties. Having a reliable team in place to handle the day-to-day operations is critical. With a team in place, you can focus on expanding your business and acquiring more properties.
HORROR STORY
He did tell a horror story about one guest in the beginning of the podcast. It’s a story about generosity gone wrong. It’s a reminder that while it’s important to be kind to others, it’s equally important to protect yourself.
JB was reluctant at first but decided to help out a family in need during Hurricane Ian. The family was searching and, couldn’t find any places to stay. JB and his team were fully booked but, they had a property that was still undergoing renovations.
Despite the family not having the funds to pay upfront, JB took a chance on them. He was hoping that they would be able to pay once they received their check from FEMA.
Unfortunately, the situation took a bad turn. The family overstayed their welcome and, he couldn’t get them out. They never paid their bill and left the property a mess. Trying to do good can sometimes lead to unexpected consequences. As the old saying goes “No good deed goes unpunished”
JB’s story is a valuable lesson in how to succeed in the short-term rental industry. By being selective, proactive, and having a reliable team, you can achieve success rapidly. Check out the entire interview in the link below.
