One Million Dollars on Facebook Ads - James Svetec (BNBMastery)

James' Website: https://bnbmastery.com/

If you reach out to James and mention you came from the Smart Money podcast he has a special for you!

Interview With BNBMastery - James

Smart Money: [00:00:00] Hello, and welcome back to smart money tricks. I'm very excited to have with me here, James, from BNB mastery, an Airbnb expert, author of Airbnb for dummies, which is actually the official one and founder of BNB mastery. Joining us today, James, thank you so much for joining us.

BNB Mastery - James: [00:00:36] Yeah, absolutely. Thanks all for having me.

Smart Money: [00:00:38] So, can you give us a little intro? What got you into Airbnb? Clearly, you know, a lot about it , you wrote, you know what I would call a well-known book series on it. What got you into this space?

BNB Mastery - James: [00:00:50] Yeah. So I, I first got started in Airbnb about four or five years ago now. I got started out managing other people's properties, actually in and around Toronto area , on short term rental. Basically just realize that there was an opportunity for properties on short term rental to earn a lot more income, depending on , if it was the right property, it could earn a lot more income on short term rental than it could on long-term rental.

So, started managing some properties for other people, and that did really well. And then took it a lot more digital, started teaching some other people about how I had started my management company. And so now I've got BNB mastery program where I coach about four or 500 students how to run their own short term rental management companies. And then a couple of years after that, got involved with a blog called learn Airbnb and my business partner Symon there. And so really just taking it a lot more towards the education space, and then also now getting started with Airbnb investing, that's a pretty recent endeavor.

Also launching a group coaching program pretty soon here, teaching people how to invest in short term rentals and how to find the right properties, everything like that.

Smart Money: [00:01:53] I love it. And I'm very, very excited to have you on this and I'll actually start off. Do you do anything outside of Airbnb? Are you a fan of stocks or are you fully into real estate?

BNB Mastery - James: [00:02:04] Yeah, no, I definitely do like I've got some money in crypto and I've got some money, just invest in the stock market. I'm a big fan of diversification. I also like to have some money in real estate. There's a lot of advantages to real estate that you don't get with other asset classes.

So, I'm pretty well spread out at this time at this point.

Smart Money: [00:02:20] Okay, good to hear. Good to hear. I'm glad you're an avid listener of our podcast and you follow our advice. So, let's jump into, you told me a story about how you started off with $5,000. What I always think of is Airbnb is like an expensive endeavor, to get started with because you know, you have to, buy the property or in your case, maybe manage it for somebody else, but there's some type of capital investment involved with it. So what would you say is sort of the right entry point for somebody coming into this? How much money do you need? You know, is it more than people think less?

BNB Mastery - James: [00:02:59] It depends on, on what strategy you're using. There's a couple of different strategies that you can use when it comes to Airbnb. So the, the management option is the, the one that requires the least capital. And that's largely why I got started there is because at that time I had just had a business fail and I was in debt and didn't have the means when I start a new business to go and invest a whole bunch of capital into it.

So with the management fee model, I was able to pick up a property under management and manage it for a percentage of the overall revenue. So I wasn't actually paying any money up upfront, out of pocket to get that property going. And then obviously I only got a percentage of the upside. There's another popular, relatively popular model called rental arbitrage where you rent a property under what's called a master lease agreement , so you have a lease agreement with your landlord that stipulates that you actually can use it for short-term rental. So in that scenario, you'd be paying first and last month's rent for the property and a security deposit typically. And then you'd be paying a several thousand dollars to furnish the property and then flipping it on to Airbnb to earn a profit that way.

That's a method I don't generally recommend to most people because the reality is, your putting up a lot of capital and taking on a lot of risk and a monthly cashflow burden for not a whole lot of reward, because you can oftentimes earn just as much money under a traditional management fee model, without putting up that capital.

And there's just a lot of risks if regulations turn all kinds of different scenarios that can end you up in a bad place with that model. And then if you're buying a property for short-term rental, that's sort of the most capital intensive way to go about it and it, yeah, it does require an upfront investment obviously, but there's different ways that you can structure your real estate deals and any real estate transaction to, have relatively little money invested into it.

Considering the value of the asset you actually now control on the amount of income that you can, that you can bring in on that investment if you buy the right property and manage it effectively.

Smart Money: [00:04:50] I love that. The fact that there's atelast three different ways into real estate. It makes it for diversification in some sense, then the fact that you can start off with this management approach with no upfront capital, I think is exciting to people, but obviously let's just be realistic.

Money doesn't just grow on trees. You have to have a skill set. And I think one of the things that I find so interesting is once you acquired the skillset, you felt comfortable to actually go out there and educate other people. You mentioned about 500 people, who you work with or you have worked with to date.

Let's start off with what made you want to sort of publicize this information rather than just keep it for yourself?

BNB Mastery - James: [00:05:32] Yeah. Great question. So I, my background is actually in professional business coaching. So I worked for a couple of years with a company that, it's relatively well-known, they're actually a profit 500 company it's called a student works painting. And so I actually started when I was in university operating a student painting franchise with that company.

And then later on after university, I went on to be a coach within that program. So I was coaching students how to run their residential and commercial painting businesses while they were in school. And I just found that super rewarding. It's something I really enjoyed doing something that I was uniquely good at.

The founder of that company and the CEO of that company, Chris Thompson is a long-time mentor of mine and he always, you know, he always talked about finding that spot where you, you have an intersection between things that you're very good at. And that, and that you also really enjoy and he called it sorta your unique zone of excellence.

And that, to me, that for me has always been coaching. I'm really passionate about entrepreneurship and really enjoy coaching. And one of the things that I've realized over the years is that, specifically with entrepreneurship, I'm really excited about the initial startup phase. And when a business gets into the latter phase where it's more about just kind of tweaking and optimizing things and slow and steady growth and maximizing efficiency, that isn't as exciting to me.

So with coaching, I got to constantly be in that startup early phase with all the students I'm working with. So that's something that I really enjoy about it. So when I left student works, I, I knew that whatever business I was starting, I was going to use that as a platform to gain more experience, gain more expertise, and then eventually get back into business coaching.

And so that's what I did.

Smart Money: [00:07:12] An amazing story. And, I think it's, it's interesting entrepreneurship, I would say starts typically at a young age. And so that, just that experience, I feel like also set you up for this. And so can we talk about how you drive traffic to your course?

Because obviously I think one of the most interesting things today is we're still in COVID, we're recording this on April 14th, 2021, at least in Toronto, we're back in the lockdown. And I know in many parts of the world as well, except Australia, I wish I was in Australia. But how do you drive traffic to your course?

BNB Mastery - James: [00:07:46] Yeah. So there's a couple of different ways right now that traffic goes towards our course. I've got, an active YouTube channel. We blog on our website and then the majority of the traffic though is coming through paid advertising. So I've been dabbling a little bit now, recently in YouTube and Google display ads. Mostly just retargeting, but the majority of the paid traffic that I'm sending towards the, the program is coming from Facebook ads.

Smart Money: [00:08:07] What's the YouTube channel, just so that they can research.

BNB Mastery - James: [00:08:10] yeah, it's James Svetec. So just my first and last name, last name is a little bit harder to spell, but it's S V E T E C.

Smart Money: [00:08:18] Awesome. and what do you share on there? Is it more of these tips?

BNB Mastery - James: [00:08:22] Yeah, it's, it's really everything Airbnb related. I try to dive into all the different aspects of Airbnb. A lot of it has been Airbnb management, but getting more into the real estate investing side of things. So yeah, just pretty much all things Airbnb.

Smart Money: [00:08:36] I love that. And so before we circle back on this ads. Can you give us two or three of your top tips and maybe just like, even like mistakes for people to avoid, because I remember one of the things you and I had discussed is, you're a big believer in courses because they save people time.

And there's no doubt in your mind that people could figure this out on their own, but they would make mistakes and probably caused that themselves cost money and time and time is itself money. Right. So, can you talk a little bit about some, maybe common mistakes to avoid without giving away everything and, you know, a little bit about what I just touched on regarding the courses and you know, why they make sense?

BNB Mastery - James: [00:09:16] Yeah, for sure. So the reality is it would just, it would take me hours and hours and hours to give everything away. So I'm pretty open. I'm pretty much an open book, with going into detail on whatever, whatever would be valuable . I think the biggest reason why course is valuable, why I'm a consumer of courses and why, why I'm a believer in courses as an educator.

Is that exactly what you said, they save a lot of time and they save a lot of mistakes because the great thing, the great thing about the world we live in today is that you can go and learn absolutely anything you want on the internet. And so the question is like, why then would you go and pay for education?

Why then would you go and attend a college course? A university course, an online course, whatever it might be. And my view on that is that there's, there's two main reasons. One is that you get to save the time by having all the information neatly laid out for you. And that, you know, that it's from a credible source, because if you're looking online, then.

Realistically, you have to go all over the place and it's going to take you a tremendous amount of time to dig this stuff up. You have to check the credibility of each person that you're learning from, because I know I personally have made the mistake too many times to count where I've gone and trusted something I read online and then gone and figured out that that actually doesn't work in practice.

And so if you're doing something like investing in real estate or building your own business, those mistakes can cost you a tremendous amount of money. So you have to do a lot of work to fact check it if you're going to go and just learn at random online. But the, the other, probably the most important piece I would say is not even about just the time that you would spend going and searching around online for this stuff.

But it's that, the reality of learning a lot of valuable skills is that you don't know what you don't know. So it's often challenging to figure out and it would be, it'd be really hard to, to actually go about figuring out what are the things you need to know. So I'll give an example of this is.

You know, one of the common things that I, that I teach, in my program, it's the second week of our, of our program, where I teach people how to start their business. There's a lot of mindset elements. And that's just about how to stay focused, how to stay motivated towards your goal, how to maintain consistency, and not, not lose sight of the end goal and not let yourself get sidetracked and distracted.

Like so many people do. And that I have found the implementation of that week within the program has drastically improved the results that my students get, and it's not something that would be intuitive for someone who would just be, let's say, going around, Googling online to go and say, okay, well, my goal is to build a BNB management company.

What they're going to Google is how to start a BNB management company. How to have landlords agreed to, to work with you, how to manage a property on Airbnb. They're not even going to know that a crucial component to running the business is making sure that your mindset is in the right place. Similarly with real estate investing, one of the things that I never considered and that I never would have known to look up online, had I not been learning from another expert was that there are, there's a wide variety of different ways that you can structure a real estate deal, in order to have less money down on the deal in order to.

You know, do things with seller financing, there's all kinds of different ways you can structure it to make the numbers make sense. I always thought that it really was just about getting a mortgage on the property, getting it with 20 or 30% down, and then just making sure that you buy the right property to make that make sense.

But then lo and behold, there's all these different strategies so that you can find deals that no one else is seeing because you just have different tools to be able to use, to structure the deal and make it work. So that's, I'd say the biggest reason why it's so important to, to learn from experts if you have the means to do so is because not only does it save you the time, but it also,it just helps you to avoid kind of spinning your wheels and making mistakes because you get to learn from someone who's done it before and has figured out all those different barriers that aren't super intuitive to, that you don't see them being right in front of you.

Smart Money: [00:13:08] I love it. Those are some very, very good examples and a part of what I actually like is you actually built your own LMS, which is a learning management system. Why, why did you decide to take that approach?

BNB Mastery - James: [00:13:23] Yeah, so to clarify, I didn't actually build my own LMS. I just opted to, to put the program on an LMS called Kajabi. Rather than putting it on a, on a platform for courses, like, for example,Udemy. And the reason that I decided to put it, to put my program on an LMS and market and sell it myself, as opposed to putting it onto one of these more sort of plug and play learning platforms like Udemy, or Coursera, or what have you, was this just ultimately that I wanted to have more control and I didn't mind the additional involvement with students actually it's something that I, like I mentioned, I really enjoy that aspect. One of the great things about a platform like Udemy is that you can basically just set your course up and not actually interact with the students. That's what the users on, on a platform like Udemy are used to and what they're expecting versus if you, run your course yourself and you're doing something more high ticket.

Then typically there's a lot more involvement from the instructor. So that's why a lot of instructors tend to shy away from that method, is becasue they prefer to be more hands off. I personally prefer to be more hands-on with my students. I like to be able to work with them. It's something I just really enjoy doing.

So that was something that I wanted regardless. And then the, the freedom and flexibility that I get from having my own program on my own platform, where I can do whatever I want with it. I can price it however I want. Sell it however I want. Market however I want. I don't have to worry about how Udemy is marketing and selling and presenting my program and me as an instructor.

So ultimately just gave me a lot of control with no real downside.

Smart Money: [00:14:56] I love how focused you are on the people and I, and I think, and I've talked about this maybe a little bit here, but people are such an important part of an organization. And I would say like the organization here is the communityyou've built and I love how focused you are on it, because it would just be so easy to sort of sit back.

And I know, not, like I said, there's no printing money in life. There's, there's no money growing on trees, but hypothetically it'd be so easy to sit back and like do a Udemy course and just watch the money roll in and relax on a beach in Florida. Right. And clearly that's not what you're in this for.

BNB Mastery - James: [00:15:39] I don't know that it's fully altruism and I don't even know that I fully believe in like in pure altruism, like there is benefit that I get, like, I, like I said, I genuinely enjoy working with students and seeing them succeed.

That's something that, honestly just gives me a lot of enjoyment, a lot of fulfillment. So selfishly, like I do it for that reason. But then also the, like the other aspect of it is that in, in business, in my experience has been that if you're not growing, you're dying. And so like, even now, even now that I've got the program running really smoothly and we, and we've got a consistent flow of new students coming into it, I'm constantly asking myself, how can I improve this?

How can I make this better? And constantly updating the content, updating the program, updating the level of support that we give the students in the ways that we give them support, because I know that. If, if I sit on, if I just sit on my laurels and I wait around someone else is gonna come and they're gonna, they're gonna take my lunch.

And I'm in a unique position right now where I, you know, have something really great that I've built over the last number of years. And it's, it's mine to lose at this point, but it's still very much can be lost. I don't really, I'm not a big believer in that you can just sit around and kind of let things go because over time that's just going to, that's just going to slowly start to die and you might not see it at first, but, but it's happening.

Smart Money: [00:16:54] I'm gonna have to clip that because what you said there is so powerful and I'll put it a little differently. . So you said that if you're not growing, you're dying and, and another way to put it is, The rent is due every day.

Like, unless you literally have enough money where you could live off interest payments in the bank, like the rent is due every day, just because you were successful yesterday, doesn't mean you're going to be successful tomorrow. And oftentimes people mistake that you talked about having the right attitude in business, and I've seen this like persistence to me is probably. One of the most important traits for any business. If you have any business, if you're an entrepreneur, small business, large business, doesn't matter. One of the most important characteristics you must have is persistence and perseverance because times will be tough. The rent is due every day, just because you were successful yesterday, doesn't mean you will be tomorrow and. Like I've seen people celebrate too early. Like, I'll give an example. I'm not a big hockey, but I think this was like the most recent Olympics or the one before that, where I think team Canada lost cause we celebrate it in the first half and then we lost it in the second half. Like it's not a good look on anybody.

And I feel like in business, especially, like you said, it's real money and you could have a lot of money and it's gone in the second half.

BNB Mastery - James: [00:18:16] Yeah, absolutely. Like, I, I I've been down that path myself before as well. And you know, you think you, I find that comfort is a real, is, is something to be. To be taken seriously. Once I, anytime I find that I'm starting to feel more comfortable. I take that as a note that I have to think bigger because it's easy to get comfortable and look at it and go, yeah, you know, now I can start coasting.

But ultimately, if you start coasting, everything starts to deplete. Everything starts to die. Someone else's going to come and they're going to do a better job than you. And that's one of the things I love about entrepreneurship is that it's, it's just like the biggest sports competition ever, ever with all these really, really smart people.

And nowadays it's the entire world is competing against you. And so I just think it's exceptionally arrogant to think that. You're you're going to be able to just sit back, relax, do nothing. And with that level of effort that you're somehow going to out-compete the other people that are out there trying to deliver more value to the marketplace than you do.

It's just, it's just not going to happen.

Smart Money: [00:19:20] We're going to take a quick 20 second break to tell you where you can find out some more information.

And we're back, with James who has been one of the most motivational episodes, I think we've done to date and I love it because I think there's a lot more to business than just numbers and math and finance and, you know, making the numbers work.

It's that mindset that we talked about. So I want to circle back a little bit to talk about, you did a little bit on Facebook. You did a little bit on YouTube. You did a little bit on Google, which one have you found the most success with and how do you go about getting into this?

BNB Mastery - James: [00:20:09] Yeah, so far in a way I've had more success on Facebook than any other ad platform. Funny enough, the, the, the way that I got started with Facebook ads and actually with online courses and how to structure the business around that, was from another course that I purchased, from a guy named Sam ovens, that a lot of people have probably seen his ads all over the place.

Cause he's done very well. But yeah, I've learned everything, pretty much everything just from, from that course. And then I've taken other courses here and there to try to learn other bits and pieces. And yeah, that's basically where I've had the most success is Facebook and that's how I learned it.

Smart Money: [00:20:39] How much would you say, have you spent to date on just advertising for Facebook?

BNB Mastery - James: [00:20:46] On Facebook ads. I probably spent north of 700,000 now,

Smart Money: [00:20:50] Wow. 700 Canadian or us?

BNB Mastery - James: [00:20:55] USD.

Smart Money: [00:20:56] Wow. Basically a million dollars Canadian.

BNB Mastery - James: [00:20:59] Yeah, no, definitely. It's, it's pretty much it's it's by and large, the largest expense for our business. And it's something where we get a direct ROI on it. So putting more money into Facebook ads makes a whole lot of sense, as long as you're getting the right metrics coming out of the backend.

Smart Money: [00:21:15] Right. And so can we talk a little bit about that? Like obviously if you have to spend that much, there has to be some ROI. How do you go about like, How did you get into this?

How much did you start off with, with your ad spend? How did you, how did you figure out? And I know the course obviously helped you, but can you give us a little bit of the highs and lows?

I like to show people, you know, it's not just glamorous, like, it sounds amazing that you spent a million dollars on ads, but I got to hear, like, how much did you start with, how close were you to going broke?

BNB Mastery - James: [00:21:44] Yeah. So, so I started with, I set aside $5,000 for my initial testing budget. Now it was after a promotion that I ran with the blog business that I now own learn BNB. This was before I owned it, that we ran a promotion through, through that to their audience. Made some great sales through that.

Got my, kind of my offer, really refined, got things, kind of dialed in. And then at that point I put aside a $5,000 budget for testing Facebook ads. And yeah. Basically just follow the training. And I think the big thing for me is that, I really, really believe in if I'm trying to learn something, I want to go and find the person who's done the best at it.

Just absolutely exceptional at that thing. And then I just want to listen to what they have to say and not question any of it. And I put a lot more time into finding the right person to learn from finding the right mentor so that I don't have to put time into critically analyzing everything that they're saying, because I've found so many times that I don't understand why things are the way they are until I see it in action.

So Facebook ads is a great example of that. I went and I put the time into finding someone who has done exceptionally well and that's Sam. And, and then I was able to just kind of blind trust everything that he said about how to run Facebook ads and starting out. I didn't understand it because I didn't know the way Facebook's algorithm worked.

I didn't understand media buying. I didn't understand any of these things, but I just blindly trusted it and then implemented it and had fantastic results. And then over time, I've obviously learned a lot and understood, okay, this is why we do things the way that we do. On that, on that instance, I actually got sales rather relatively quickly on that $5,000 budget.

So I wasn't really close to, to going broke, or kind of running out of my, my allocated budget for it. But, on another time I switched up the whole basically sales funnel, the way that our program is sold, it used to be that people would get onto a phone call with myself. I remember my team and we would, we'd go through basically a set an hour long session with them and bring them into the program over the phone. And then I realized about a year, a year and a half ago now that that just wasn't going to be able to scale the way that I needed it to, and the way that I want it to, and that all the time that I was in putting into these calls was time that I wasn't able to put into improving the program, improving results for students.

So I actually kind of shut things down for a couple months to build out a fully automated funnel where now people can join, directly after the, the webinar watch that we direct them to with Facebook ads and just jump right into the program without having to get onto a phone call with myself or anyone on our team, they can obviously email us back and forth or get in touch with if they want to, but it's not a necessity.

And when I first did that, that was even, even though I was very far into the program and running Facebook ads and had a lot more experience under my belt. And that was pretty scary for me, cause I never had experience with selling something online, purely, you know, not doing it over the phone, not even talking with someone before they shell out and buy something from me.

And so I allocated again, $5,000 for testing and was going to see how that went. And I fully expected that $5,000 should just be gone and for me to get great, great insight and learn a lot from it. And then go back to the drawing board and see what. I needed to do, and then, it turned out that on the, at 11:45 PM on the night before our budget was, was set to run out, we got our first conversion and then we're actually able to, we've actually been able to roll over the revenue and continue growing and scaling.

And we haven't had to turn off our ads since then. So that actually went really well, but it certainly can get close to the wire depending on how things go early on. But it's just, again, it's really important to train yourself mentally and be prepared that, Hey, this is all in the name of, experimentation.

You know, I just view advertising. I don't really look at it the same way that I look at spending money on a coffee or spending money on really anything else, because there's two ways to earn from Facebook ads. There's your direct ROI that you're going to get. Whether that's immediate or long-term, but then there's also just all of the learning that you get.

And that is very, very valuable. So even if you put aside a budget and you don't actually get sales from it, as long as you actually understand why you don't, you didn't get sales from it and learn something that you can then use to improve later on and improve your numbers later on, then it's going to pay off and you just have to train yourself to think about it that way and not have an emotional attachment to that money leaving your bank account.

Smart Money: [00:26:18] That is an expensive lesson, but I think that mindset speaks to it speaks to everything we've talked about, to be honest, it's about learning from your mistakes and, never given up, but, can we talk a little bit about how much the course costs, and I know we talked, earlier, and you said you might have something interesting to share with our listeners.

So, can you touch briefly a little bit on that?

BNB Mastery - James: [00:26:41] Yeah. So at this point we've got a couple of different programs. We've got, one program that's just geared towards people that are already hosting either their spare space or, or their, vacation home. What have you on short term rental and just teaching them the ins and outs of Airbnb, how to really optimize performance and streamline operations.

Then we've got another program, obviously geared towards people who want to start a business, managing other people's properties on Airbnb. And then, like I mentioned earlier, we're actually launching a group coaching program. That's going to be a lot more intimate. We're capping it at 15 new people per cohort and running a six month program, showing people how to.

How to actually get started investing in properties for short-term rental. And in that program, we're actually guaranteeing that, people will have their first profitable short-term rental coming out of that six month program. And so each one of those are at different price points, but, anyone who's, who's listening here to the smart money podcast.

If they want to reach out to me. Whether it's on, on Instagram or go to our website, BNB mastery.com. My Instagram is, just James Svetec. However they want to reach out. They just let me know that they're coming from the smart money podcast and I'm happy to put together a special, special package and a special deal for them.

Smart Money: [00:27:49] That's amazing. I think everybody will appreciate that. And I think the fact that you guys have three different programs targeted at different experience levels and different, sort of wants and the guarantee to me sounds very enticing. So maybe I'll have to fill one of your 15 spots. All right.

Do you have any qualms about. You know, you touched lightly on if the legal structure ever changes and you actually own the property that probably puts you at the largest exposure, but how likely do you think it is that we will see legal regulatory changes? Are you worried? I know in Toronto, you know, they've been somewhat strict.

Any thoughts?

BNB Mastery - James: [00:28:32] Yeah. So the regulation changes, honestly, you're not. You're not really that exposed if you're buying the right property and you're actually like owning the property. The model that leaves you exceptionally exposed to regulation changes is rental arbitrage. And that's why I really recommend that, most people don't do it and that you only do it if it's really the perfect property, which is very, very rare to come across because the challenge with rental arbitrage.

Is, let's say that you start building a rental arbitrage business and you're paying first and last month's rent and paying for furniture. You're buying you're, you're putting that money into rent that doesn't have any long-term value. You can't salvage the value of that any in any way, and then furniture, which is just a depreciating asset.

That's hard to get rid of. So if regulations change and then suddenly your business can't earn a profit. You know, different regulations that restrict the way you can use a property on short-term rental, or if you're operating a worst case scenario, if you're operating in a condo or the condo board shuts things down, which can happen quite easily, then you're now leaving yourself completely exposed with no retained asset.

You're not retaining any equity and everything that you've built. And you could very well have built this for six, 12 months and been reinvesting your profits to growing. And now suddenly. You've got to just basically pack up and get out and you don't have anything to show for it other than some old furniture.

So that sucks. That's definitely a bad situation you're putting yourself in. So that's why I generally just tell people not to, not to look at the rental arbitrage model, except for in a few specific situations. When you're buying a property. It's relatively easy to buy a property that you're going to, you can make money on it in different ways.

So for example, the property that the first property that I've got for short term rental, we're doing a rehab on it and we're building equity. And then we're actually getting a cashout refinance, the BRRRR strategy, a lot of people are probably familiar with. And so number one, we're not actually going to have a lot of capital tied up if any, about a year from now, once we do that refinance and the other aspect is that we now own this asset that is intrinsically valuable. It's got, it's going to take more than a regulation shift to make any kind of substantial impact on that. So we actually retain the value of that. And we can worst case scenario, flip it over and use it as a long-term rental.

If there were ever to be short-term rental regulation changes mind you. We did also invest in an area where I feel very confident that short term rentals are not going to be something that's changing because they have been around in the area that we purchased. In Kawartha lakes, into cottage country, short term rentals and vacation rentals have been around for a very long time.

It's an established market established industry there. So it's not something that's, new and foreign to the area. Like it is to a lot of metropolitan areas that before Airbnb became large, it wasn't really a thing. So there's a lot of things that you can do to protect yourself and a lot of, a lot less risk that you're exposed to in general, when you're actually buying the property.

Smart Money: [00:31:28] That's amazing. I think you actually hit on a couple like if you read between the lines of what you said, like you look for an established market where, you know, it's accepted regulatory change is unlikely. Like those are all. Amazing tips. If you, if you really listened to what you just said, I think you gave some really good insight there.

So let's wrap up, here, I think, you know, where can people find out more if they want to hear from you and your course.

BNB Mastery - James: [00:31:57] Yeah. So probably the best way to, to reach out and to get in touch is either through Facebook or Instagram. Just look me up, James SVETEC last name again is S like Sam V, like Victor, E T E C. A little bit of a tough one there. So apologies for that, but, yeah, just look me up on Instagram or Facebook.

I'm happy to connect with anyone. Yeah, just send me a message.

Smart Money: [00:32:16] Awesome. And as always, if you guys are looking to learn more about finance, real estate savings and everything related to smart money, check out WWW.SmartMoneyTricks.com