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Speaker 1: Hey, everybody is Bill Courtney with an army in normal folks.

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Speaker 1: And we continue now with part two of our conversation

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Speaker 1: with Atticus LeBlanc, right after these brief messages from our

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Speaker 1: general sponsors.

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Speaker 2: So, Mitch and his buddy Otis. He wants to know

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Speaker 2: if they can come rent rooms in my house. Now.

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Speaker 2: I'm terrified because I wasn't been vacant for a month,

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Speaker 2: and I'm waiting for the air conditioner to disappear or

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Speaker 2: the copper pipes to be stolen or whatever.

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Speaker 3: Yes, yes, please please come in.

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Speaker 1: Let me ask something. I'm sorry to interrupt you, but

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Speaker 1: I have so many questions about this. So and this

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Speaker 1: is two thousand and nine, long before Pat split.

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Speaker 4: Pat split.

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Speaker 3: This is really like the progenitor.

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Speaker 4: I get it.

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Speaker 1: It's why I'm so interested in I'm trying to crawl

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Speaker 1: on your brain a little bit. Sure, if you had

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Speaker 1: rented that house to a typical renting family, how much

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Speaker 1: would you get in rent from that house?

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Speaker 2: It had been rented previously for eight hundred and fifty dollars.

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Speaker 1: So if Mitch and Otis move in, you're already getting

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Speaker 1: two hundred dollars a month more than you would have.

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Speaker 4: They had five hundred dollars.

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Speaker 2: Well, of the difference is you have to include utilities.

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Speaker 2: So so it's a wash. Yeah, fish, it really like

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Speaker 2: two at two and a half. It's about a wash

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Speaker 2: in that house. Okay, but I have four rooms I

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Speaker 2: can rent in that house, and now question Yeah, And

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Speaker 2: now as I look at the house, I realized, wait

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Speaker 2: a second, I think someone had been whoever had owned

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Speaker 2: this house, and maybe it was the same guy who

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Speaker 2: owned the house next door, Like whoever had owned this

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Speaker 2: house previously had clearly rented out the rooms. I mean,

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Speaker 2: it had already been kind of set up for this

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Speaker 2: with these with these four rooms. And so I start

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Speaker 2: doing the math and realizing, wait a second, if if

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Speaker 2: Mitch moves in and Otis moves in, and I can

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Speaker 2: get two other people, then yeah I can. I can

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Speaker 2: net call it eleven or two twelve hundred dollars, whereas

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Speaker 2: I was grossing eight fifty eight hundred the old way.

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Speaker 2: And it's way better for me, it's way better for Mitch.

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Speaker 2: It's like far better and quality of property, right, yeah,

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Speaker 2: and Otis.

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Speaker 4: And the other two nameless folks.

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Speaker 2: Well, well, actually the so the third person who who

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Speaker 2: moved in still lives there today. Her name her name

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Speaker 2: is Linda, and she was working at Wendy's at the time,

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Speaker 2: and so like she still pays either one hundred or

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Speaker 2: hundred and twenty five dollars a week for the same

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Speaker 2: room sixteen years later.

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Speaker 1: Okay, for those who haven't watched black and white films

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Speaker 1: or paid any attention, this concept, although sounding new today,

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Speaker 1: is actually a century old.

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Speaker 3: Oh yeah, easily, if.

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Speaker 1: You will think about it's a wonderful life exactly.

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Speaker 2: Yeah, well you really think the second Yeah, well, Mob

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Speaker 2: Bell or whatever.

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Speaker 1: Bob Bell or Bob Parker, whoever it was. But that's

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Speaker 1: it's nothing at all new that people would have homes

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Speaker 1: and rent rooms.

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Speaker 3: Yeah.

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Speaker 1: And it used to be that the person who had

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Speaker 1: rent the room also lived in the house, and maybe

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Speaker 1: it was a widow or a you know, people whose

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Speaker 1: children had moved on, but they had a four bedroom

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Speaker 1: house and to keep their home, they would rent two

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Speaker 1: or three of the rooms.

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Speaker 2: Both of my great grandmothers on my mom's side did this,

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Speaker 2: rented rooms.

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Speaker 4: Yea.

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Speaker 2: They were they were single at the time and rented

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Speaker 2: out rooms to help just keep up keep up the

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Speaker 2: home there.

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Speaker 1: It is nothing new, went on forever and ever and ever,

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Speaker 1: and that's what you stumbled onto with Mitch. Notice is

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Speaker 1: that this still goes on and there's a way to

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Speaker 1: do this.

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Speaker 2: Well, there's a way to do it. And really, I

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Speaker 2: mean I credit Mitch. He was the one who told me, Okay,

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Speaker 2: here's what you have to do, because I didn't understand

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Speaker 2: what was required or what were you.

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Speaker 4: Were about your house getting destroyed by all these people?

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Speaker 1: Really?

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Speaker 4: Okay, so what Mitch say you had to do?

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Speaker 2: Well, you had to include beds, You had to put

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Speaker 2: in the beds, you had to install wash and dryer

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Speaker 2: so that they had laundry on site, and you had

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Speaker 2: to cover the utilities. And then typically they were built

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Speaker 2: on a weekly basis.

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Speaker 4: What about kitchen and common area?

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Speaker 2: So that house was four bedrooms and two baths. It

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Speaker 2: was only probably twelve fourteen hundre square feet, wasn't It

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Speaker 2: was not a big house, but had two shared bathrooms

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Speaker 2: and then these four bedrooms, and yeah, they figured it

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Speaker 2: out that no living room. There actually was a small

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Speaker 2: living room.

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Speaker 3: In that house.

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Speaker 4: What about a kitchen?

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Speaker 3: Yeah, shared kitchen, all right, So.

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Speaker 1: I would assume you would actually if you had a

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Speaker 1: big living room, put a wall on a door and

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Speaker 1: make it another bedroom as long as there's a kitchen,

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Speaker 1: a laundry room and locks on the doors.

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Speaker 2: Yeah, you absolutely could. It depends on the layout of

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Speaker 2: the house. Uh this particular house. Uh, the it just

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Speaker 2: it made it difficult for the living room in that

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Speaker 2: in that case, but it was it was certainly an

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Speaker 2: efficient layout, There's no no question about it.

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Speaker 3: That was alsious.

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Speaker 4: What happened to the house next door at the tarp

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Speaker 4: On it did you buy?

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Speaker 3: Eventually?

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Speaker 2: We did with with a partnership with a partnership and

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Speaker 2: then fixed it up and then the partners who were

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Speaker 2: in that house wanted to get out, and so now

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Speaker 2: I think it's just a traditional owner occupied home. But

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Speaker 2: but yeah, we we had it for for several years.

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Speaker 2: I have a number of stories like that where it's

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Speaker 2: just everything really comes full circle. But but yeah, so

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Speaker 2: it worked out well, and we did.

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Speaker 3: We did a couple more and most of what we.

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Speaker 2: Were doing though, because this was just a flood of

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Speaker 2: properties at that period of time. This model was really

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Speaker 2: interesting and you could see that it earned more cash flow,

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Speaker 2: but it was super operationally intensive. I would have to

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Speaker 2: go physically multiple times a week to go collect money

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Speaker 2: orders out of the rent box on site in two

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Speaker 2: thousand and nine, and you have to make sure that

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Speaker 2: somebody didn't change the thermostat down to sixty three degrees

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Speaker 2: in the summertime exactly well, and the unit would freeze

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Speaker 2: out and bring up exactly And then you were mediating

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Speaker 2: some of the well he stole my leftovers from the fridge,

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Speaker 2: those types of disputes, and so it was just it

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Speaker 2: was a lot of bandwidth to kind of keep it going.

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Speaker 2: Obviously I still did since we still owned the house

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Speaker 2: sixteen years later, but we just kind of shelfed it right.

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Speaker 2: And Stan and I through this company Striant, we were

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Speaker 2: really creative. By middle name is Briant, his name is

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Speaker 2: Stan Stryant.

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Speaker 1: Nice and because Atlanta Housing Fund was already.

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Speaker 2: Taken exactly exactly so and Staticus was a little a

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Speaker 2: little bit too over the top.

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Speaker 4: That's it.

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Speaker 2: So we were still buying and I never got to

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Speaker 2: owning ten on my own, but through Strient was able

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Speaker 2: to get enough where it felt like, okay, we can come,

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Speaker 2: we can get out of this thing. Because it was

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Speaker 2: really just scratch and claw, I mean from two thousand

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Speaker 2: and five to twenty twelve, really before I mean twenty

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Speaker 2: twelve was really among the first times and I felt

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Speaker 2: like I could finally take a breath. And to your point,

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Speaker 2: like had just come to the verge of financial collapse

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Speaker 2: several times over that period, even when you knew you

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Speaker 2: were like logically this was great and everything was going

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Speaker 2: to work out, you still got to the precipice and

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Speaker 2: looked into the chasm many times.

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Speaker 3: So uh yeah.

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Speaker 2: So by the time things got stable, I started thinking

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Speaker 2: about what was next. And I'd started a construction company

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Speaker 2: in twenty eleven and found a guy I grew up

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Speaker 2: with to kind of hand off the reins to in

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Speaker 2: twenty fifteen really and I started thinking, okay, well, look,

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Speaker 2: I've I've done everything that I wanted to do to

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Speaker 2: just secure the financial stability for my family. At that point,

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Speaker 2: I had four boys, and I wasn't worried about paying

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Speaker 2: for school or just everything being okay. And started thinking through,

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Speaker 2: how do I leave a legacy in the world for

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Speaker 2: good and just make sure that my time has been

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Speaker 2: worth it so that if I get hit by a

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Speaker 2: bus tomorrow that I've done something to leave the world

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Speaker 2: a little bit better And started looking at joined rotary.

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Speaker 2: We were talking about rotary earlier joined Rotary, was just

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Speaker 2: doing other civic stuff and ended up at an affordable

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Speaker 2: housing ideas competition in late twenty sixteen, and I'd been

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Speaker 2: working on this school renovation project where we were going

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Speaker 2: to we needed to raise a lot of money to

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Speaker 2: convert it to affordable units, and it was clear at

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Speaker 2: this competition they wanted scalable solutions, not kind of this

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Speaker 2: one off historic redevelopment deal. And so I went back

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Speaker 2: to this house where I had met at exactly and

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Speaker 2: I was like, look, this is going to be really controversial,

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Speaker 2: but if you guys really want to solve the affordable

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Speaker 2: housing problem, and I've only watched this get worse from

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Speaker 2: two thousand and eight onward, you need to go figure

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Speaker 2: out how to do this at scale. And I've watched

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Speaker 2: Airbnb from twenty eight to twenty sixteen get to six

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Speaker 2: million listings, six million units on the platform, which.

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Speaker 4: Is to me one of the craziest thing in the world.

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Speaker 1: One that people will rent their house to somebody else

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Speaker 1: to come stay in. It's crazy, not just a rental unit,

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Speaker 1: but people actually rent their own homes to do it.

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Speaker 1: And two that people are comfortable going and staying in

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Speaker 1: someone else's house.

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Speaker 4: I would have never believed it, to be honest with you.

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Speaker 1: I mean, maybe I've got some of your father in

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Speaker 1: law in me, but I would. But the fact is,

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Speaker 1: my kids now in their late twenties, when they travel,

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Speaker 1: they think Airbnb before they think hotel.

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Speaker 4: Sure, it's crazy.

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Speaker 3: Yeah, I think most of us do. Honestly, I still don't.

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Speaker 1: I'm still to school. But the point is I think

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Speaker 1: most do.

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Speaker 2: Check your privilege, bill, yeah, check your privilege yeah.

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Speaker 1: Yeah, well maybe so, But I mean, honestly, that is Yeah.

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Speaker 1: But it's interesting because that gave you a glimpse into

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Speaker 1: what could be I think.

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Speaker 3: Right exactly. Yeah, And it was.

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Speaker 2: It was this idea that Okay, I've I've watched now

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Speaker 2: Atlanta and like the fringe areas of Atlanta had had

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Speaker 2: changed dramatically from two thousand and two thousand and sixteen.

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Speaker 2: I'd watched it, I'd been a part of it. I'd

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Speaker 2: seen talking about the the army of normal folks like.

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Speaker 2: It wasn't one major investment that changed Atlanta. It was

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Speaker 2: thousands and thousands of individual people making decisions for their

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Speaker 2: own personal well being in most cases, that changed these

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Speaker 2: neighborhoods dramatically. And so I thought, Okay, if you can

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Speaker 2: harness that power and channel it for good, specifically to

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Speaker 2: create more affordable housing, then that would be an incredibly

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Speaker 2: powerful force. And so Airbnb had kind of done the

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Speaker 2: same thing but for vacation rentals, and so I thought,

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Speaker 2: if you could, if you could do that and show

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Speaker 2: how this rent by the room model could be more

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Speaker 2: profitable for an individual but also just better for the

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Speaker 2: community and society at large and actually create opportunities for

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Speaker 2: the people who needed them, whether it was Linda or

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Speaker 2: Otis or Mitchell what have you, then that would be

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Speaker 2: an incredibly powerful force. What you needed to figure out

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Speaker 2: was how do you reduce or remove the operational complexity

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Speaker 2: that makes this business hard.

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Speaker 1: We'll be right back back to you're going to have

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Speaker 1: pick up money, orders and exacts, set arguments about who

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Speaker 1: stole the leftovers and.

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Speaker 4: All of that.

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Speaker 3: Yeah, exactly.

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Speaker 1: And rooms would be a big because if I'm going

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Speaker 1: to buy, if I'm going to rent a room in

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Speaker 1: a house, because i work at Wendy's or McDonald's and

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Speaker 1: I'm working my forty hours a week, I'm contributing to society.

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Speaker 1: I'm not pulling from it. I'm working I'm doing what

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Speaker 1: I'm supposed to do. Just because I'm not making a

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Speaker 1: lot of money doesn't mean that I don't have the

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Speaker 1: exact same wants and desires and concerns of a millionaire.

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Speaker 1: I want safety, I want happiness, and I want some

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Speaker 1: solace when I get home.

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Speaker 3: Say it again, I mean, like absolutely right and true.

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Speaker 3: It's everybody.

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Speaker 1: So when I go to my home, even if it's

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Speaker 1: a room I rent, I want to make sure the

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Speaker 1: other three people renting rooms in that house are also

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Speaker 1: aligned with me in terms of what I want out

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Speaker 1: of life. And I don't want that schizophrenic, grazy person

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Speaker 1: making my life miserable. So I would think vetting is

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Speaker 1: a huge piece of the operational issues for this model.

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Speaker 2: Yes, yes, And what do you do for vetting when?

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Speaker 2: And you can't screen for a schizophrenic person right, like

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Speaker 2: literally it's legally not allowed. So so how do you

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Speaker 2: figure that out?

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Speaker 4: It's a good question, I'm asking.

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Speaker 3: Yeah, so the idea that I had.

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Speaker 4: So there was big operational issues.

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Speaker 1: Sorry to interrupt, but that's the point is the scalable

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Speaker 1: part of this has a real operational component that is tough.

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Speaker 3: Yep, yeah, and absolutely true.

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Speaker 2: And I knew all of this, and oh, by the way,

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Speaker 2: there's also the elephant in the room, which is the

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Speaker 2: regulatory piece of this. In Atlanta, based on the definition

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Speaker 2: of family and pretty much every other jurisdiction in America,

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Speaker 2: you weren't allowed to do it because the talking about

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Speaker 2: the old way, when it was really common one hundred years.

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Speaker 4: Ago, family lived in the house.

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Speaker 2: Well not even necessarily, I mean traditional rooming houses were

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Speaker 2: around then as well. But in the nineteen sixties onward,

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Speaker 2: the American Planning Association and their infinite wisdom decided, oh yeah,

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Speaker 2: we should totally outlaw this as part of our standard code, really,

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Speaker 2: and that's when you really start to see this proliferation

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Speaker 2: of single use, single families owning. Whereas if you go

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Speaker 2: to historic neighborhoods, what you'll see in most cases for

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Speaker 2: anything that's one hundred years old, oh well, there's a

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Speaker 2: mix of housing types. There's a single family home, and

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Speaker 2: there's a duplex or a quadplex, and there's this former

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Speaker 2: rooming house or that's.

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Speaker 4: My exact name.

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Speaker 1: I live in midtown Memphis, and there are ten thousand

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Speaker 1: square foot homes and around the block as a duplex,

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Speaker 1: and then down the next block is a three story

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Speaker 1: kind of apartment building thing.

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Speaker 4: But that's just the way development was exactly.

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Speaker 2: Yeah so, but you can't under most modern zoning laws

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Speaker 2: build those neighborhoods the way that they're built today. And

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Speaker 2: the key thing came down to this definition of family

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Speaker 2: and family was actually defined at a local level, whereas

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Speaker 2: person is defined on a state level. Like why do

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Speaker 2: we need to define family.

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Speaker 3: At a local level? Like that's crazy?

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Speaker 2: Uh? And in Atlanta there are eighty three different jurisdictions

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Speaker 2: with eighty three different definitions of family. Uh. Yeah, so

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Speaker 2: so on one side of the street, it could be

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Speaker 2: no more than two unrelated people are allowed to live together.

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Speaker 4: Uh.

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Speaker 2: And City of Atlanta's current definition, at least right now

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Speaker 2: until they change it is up to six unrelated persons

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Speaker 2: plus four boarders occupying no more than two rooms. And

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Speaker 2: then there's an exception for domestic servants. Any number of

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Speaker 2: domestic servants may live with the family.

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Speaker 1: So like these domestic servants, of course, there's a near

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Speaker 1: mark for them, not for them, but for the people

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Speaker 1: who employ them, right, who are also the same ones

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Speaker 1: back in these rules.

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Speaker 3: But I meant, oh, you'll see that stuff.

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Speaker 2: I was talking to somebody I think it was Rochester,

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Speaker 2: New York and they didn't know, but they look back

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Speaker 2: at their code and like, oh gosh, like domestic servitude

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Speaker 2: is actually defined in this owning code and allowed under

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Speaker 2: definition of baily.

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Speaker 1: Wow.

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Speaker 2: So so so yeah, a number of just enormous hurdles

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Speaker 2: to get to get over before you even get to

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Speaker 2: the logistical and operational stuff.

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Speaker 4: Uh.

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Speaker 2: And so I wrote this white paper and just said, Okay,

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Speaker 2: here's how I think you can do it. And and

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Speaker 2: here are the three core services that this marketplace would

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Speaker 2: have to provide in order to make this work and

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Speaker 2: to really scale this this solution. The first is filling

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Speaker 2: rooms and it gets to some of the screening piece

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Speaker 2: to your point.

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Speaker 4: Uh.

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Speaker 2: And so just screening for uh, it's f c R

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Speaker 2: A compliance Uh federal or federal credit What is it?

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Speaker 2: Federal Credit Reporting Activity credit so credit. Uh yeah, but

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Speaker 2: it's it encompasses a lot okay, a lot more in that.

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Speaker 2: It might be Fair Credit Reporting Act anyway.

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Speaker 4: I think it is. Yes, it is in any.

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Speaker 2: Case, so no felony convections in the last seven years. Okay,

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Speaker 2: So that's like screen the screening area.

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Speaker 3: Number one.

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Speaker 2: The second was do you have an income? Do you

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Speaker 2: have an income? And do you earn enough income to

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Speaker 2: cover the cost of this room?

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Speaker 4: Does social Security benefits? Kount of income?

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Speaker 1: Sure?

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Speaker 4: Sure?

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Speaker 3: Any income?

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Speaker 2: And then the last piece is identity verification and are

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Speaker 2: you the person who's actually applying because in apartments that's

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Speaker 2: a huge issue where somebody will apply and a different

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Speaker 2: person we'll move in. So those are like the three

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Speaker 2: things on screening off the cuff, but more importantly, how

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Speaker 2: do you actually create a demand generation engine so that

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Speaker 2: you can when Mitch or Otis has a housing need,

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Speaker 2: they know that this place exists and they can come

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Speaker 2: to it and they can figure it out easily and

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Speaker 2: move in. So that was probably the biggest piece of

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Speaker 2: the whole thing. The second piece was payments, where we

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Speaker 2: were handling all the collections. We would want to handle

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Speaker 2: all the collections because most, really every property management software

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Speaker 2: was not set up to take payments on a weekly basis,

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Speaker 2: and it's way more effective and way easier to budget

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Speaker 2: on a weekly basis than it is on a monthly.

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Speaker 4: Basis, especially when you live. We to wak exactly, so.

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Speaker 2: If you're living paycheck to paycheck, one all inclusive bill

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Speaker 2: far easier to budget around than monthly and non inclusive.

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Speaker 1: I ad the utilities included, which I would just drive

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Speaker 1: to teach you or Mitch or somebody.

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Speaker 2: Yes, yes, okay, And then and then the third piece was, well,

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Speaker 2: what do you do in the I have a schizophrenic

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Speaker 2: in my house who's screaming at two o'clock in the morning,

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Speaker 2: or somebody dealers peanut butter?

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Speaker 3: Yeah, exactly, and what do you do in those situations?

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Speaker 2: And so if kind of going back to this Airbnb

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Speaker 2: example with six million listings, I wasn't confident and I'm

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Speaker 2: still not by the way that you can like match

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Speaker 2: people on the front end, because everyone says they're clean.

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Speaker 2: Nobody's going to admit that they have schizophrenia, right, even

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Speaker 2: if you could legally screen for that, which you can't anyway.

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Speaker 2: So instead, what you can do as a reactive measure

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Speaker 2: is to say you have the ability to transfer to

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Speaker 2: any home on the entire platform. So if you think

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Speaker 2: about those six million Airbnb listings, imagine if you show

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Speaker 2: up to one and you didn't like it or something

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Speaker 2: was wrong, and you have the ability to move to

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Speaker 2: any of the others, and one might be across the

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Speaker 2: street or across town or really whatever.

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Speaker 3: So so those were like the.

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Speaker 4: Tenants mobility exactly if they feel they need it.

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Speaker 2: Yeah, so even if you're making seven hundred and thirty

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Speaker 2: bucks a month, you have economic mobility.

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Speaker 1: I'm curious Uber the rating, the five star ratings for

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Speaker 1: both the Uber. What am I called when I get

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Speaker 1: an Uber? I guess I'm a renter or a rider?

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Speaker 4: Thank you? A rider gets rated as well as the

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Speaker 4: driver does. Yep.

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Speaker 1: And I think that is an ingenious part of Uber

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Speaker 1: because whenever I see an uber driver's got five stars

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Speaker 1: and a thousand good reviews, I'm feeling pretty good about him,

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Speaker 1: and same for me. If I tip well and don't

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Speaker 1: act like an asshole in the back of somebody's car,

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Speaker 1: he's probably ginn get me five stars. So an Uber,

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Speaker 1: if I call one at two thirty in the morning

401
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Speaker 1: at a sketchy area, if I'm a five or a

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Speaker 1: fringe area or downtown or something on a weekend where

403
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Speaker 1: people get drunk and you can end up picking up jerks.

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Speaker 1: If I've got a five star, that Uber driver's going, yeah,

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Speaker 1: I'll pick him up. He seems like an okay guy. Yeah,

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Speaker 1: I think it's brilliant. Same thing, wouldn't it be the

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Speaker 1: exact same thing it is. I mean, because I could

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Speaker 1: if I'm renting this house and Otis is in it,

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Speaker 1: and Otis is a five star tenant, and that's not

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Speaker 1: a bad guy to stay with. And if these people

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Speaker 1: with this house are four point three star renter people homeowners,

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Speaker 1: Tho's probably a decent place to say.

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Speaker 2: And it goes a step farther in our business where

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Speaker 2: residents have the ability to rate each other as well.

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Speaker 2: So there's like this host and we refer to residents

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Speaker 2: as members. So you have hosts and the members.

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Speaker 1: Okay, hosts are the property of parieties and members are

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Speaker 1: the people who are living in the rooms.

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Speaker 2: Correctly, and sometimes a host is an owner occupant. More

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Speaker 2: often than not it's it's an investor, but increasingly we're

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Speaker 2: seeing more owner occupants now. But so you have this

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Speaker 2: rating relationship between hosts and members. That's that's bilateral. They

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Speaker 2: can rate and communicate both ways. And then you have

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Speaker 2: member to member ratings as well, so that if you've

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Speaker 2: got somebody who's really disruptive in your home, you can

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Speaker 2: rate that person and when their score falls below a

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Speaker 2: certain amount, they risk their their membership termination, which is

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Speaker 2: pad split speak for they lose their ability to access

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Speaker 2: the platform.

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Speaker 4: Would you just say pad speak you now, okay, so

431
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Speaker 4: what we've stepped ahead? You rate this white paper? I'm sorry,

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Speaker 4: I got to get us back.

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Speaker 1: Well, you write the twenty got aarbab twenty sixteen or something,

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Speaker 1: and then what the Jewish people with synagogu say sixteen?

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Speaker 4: No that work?

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Speaker 3: So excuse me.

437
00:23:36,080 --> 00:23:41,240
Speaker 2: What happened was the h This was a JP Morgan

438
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Speaker 2: Chase Foundation sponsored this competition. The winner would get seventy

439
00:23:45,320 --> 00:23:48,040
Speaker 2: thousand dollars, but each of the finals would get ten

440
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Speaker 2: and to my own shock and surprise, we were one

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Speaker 2: of the finalists, so we got ten thousand dollars. The

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Speaker 2: first thing I did was hire an attorney to figure

443
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Speaker 2: out how do you legally figure out the family issue?

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Speaker 2: And then as a finalist, you have to like go

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Speaker 2: to the next stage and figure out, like how do

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00:24:10,320 --> 00:24:13,560
Speaker 2: you create a prototype for whatever your idea happens to be.

447
00:24:14,760 --> 00:24:19,200
Speaker 2: And one of my three houses had recently become vacant.

448
00:24:20,040 --> 00:24:24,159
Speaker 2: It was a really terrible situation with a previous tenant

449
00:24:24,200 --> 00:24:27,800
Speaker 2: where they had stolen the appliances and they were just

450
00:24:27,920 --> 00:24:30,679
Speaker 2: terrorized in the neighborhood. And when they moved out. They

451
00:24:30,800 --> 00:24:33,040
Speaker 2: broke all the windows, and I had like a forty

452
00:24:33,080 --> 00:24:35,040
Speaker 2: six thousand dollars insurance claim on that house.

453
00:24:35,200 --> 00:24:35,640
Speaker 4: Oh wow.

454
00:24:36,320 --> 00:24:38,920
Speaker 2: Right, at the same time, I was writing this white paper,

455
00:24:39,840 --> 00:24:42,320
Speaker 2: and so I thought, Okay, well, like this can be

456
00:24:42,400 --> 00:24:43,439
Speaker 2: the first prototype.

457
00:24:43,840 --> 00:24:45,840
Speaker 4: I got to rebuild the damn thing anyway.

458
00:24:45,600 --> 00:24:51,360
Speaker 2: Yeah, exactly exactly. So I converted it. And what I'd

459
00:24:51,440 --> 00:24:54,399
Speaker 2: learned over the last seven years also was that the

460
00:24:55,359 --> 00:24:58,320
Speaker 2: extent to damage. To your point earlier around are you

461
00:24:58,400 --> 00:25:02,720
Speaker 2: worried about damage in these rooming houses, I had seen

462
00:25:02,920 --> 00:25:06,119
Speaker 2: that it was much lower risk in these rooming houses

463
00:25:06,160 --> 00:25:08,480
Speaker 2: than it was when I was renting an entire property.

464
00:25:08,800 --> 00:25:12,320
Speaker 1: Is that because you're mitigating your risk among four people

465
00:25:12,480 --> 00:25:15,399
Speaker 1: rather than one family. So if one person does damage,

466
00:25:15,440 --> 00:25:17,320
Speaker 1: only damaging their room rather than the whole.

467
00:25:17,240 --> 00:25:19,800
Speaker 3: House, I'd say it's it's multifaceted.

468
00:25:19,960 --> 00:25:22,960
Speaker 4: So one, I wouldn't have I wouldn't have thought what

469
00:25:23,080 --> 00:25:23,560
Speaker 4: you just said.

470
00:25:23,600 --> 00:25:26,080
Speaker 2: I think most people would not most people and I

471
00:25:26,119 --> 00:25:28,920
Speaker 2: would not have thought that were true either before I

472
00:25:29,040 --> 00:25:34,000
Speaker 2: experienced it. So One, you have different sources of income,

473
00:25:34,840 --> 00:25:38,639
Speaker 2: and you have whatever four or six or seven different

474
00:25:38,680 --> 00:25:42,160
Speaker 2: people that are now all providing a portion of the rent.

475
00:25:42,560 --> 00:25:44,560
Speaker 2: And so when you have a vacancy or when one

476
00:25:44,600 --> 00:25:48,080
Speaker 2: person has a job loss in campaign, you have one

477
00:25:48,320 --> 00:25:52,040
Speaker 2: of four or five or six or seven versus the entirety.

478
00:25:52,480 --> 00:25:53,000
Speaker 4: Makes sense.

479
00:25:54,000 --> 00:25:56,440
Speaker 3: The second thing is risk has spread out. Yeah, well,

480
00:25:56,480 --> 00:25:57,800
Speaker 3: and you noted this earlier.

481
00:25:58,640 --> 00:26:02,560
Speaker 2: When you are in those jobs, you want just safe, clean,

482
00:26:02,680 --> 00:26:06,840
Speaker 2: quiet place to stay, and when someone is disrupting that,

483
00:26:07,520 --> 00:26:12,040
Speaker 2: you are very quick to report that issue. Whereas if

484
00:26:12,080 --> 00:26:14,920
Speaker 2: I'm runting an entire house or an entire apartment to someone,

485
00:26:15,480 --> 00:26:18,000
Speaker 2: and there may be all sorts of things happening behind

486
00:26:18,080 --> 00:26:22,720
Speaker 2: that front door, but in a domestic violence situation or

487
00:26:23,040 --> 00:26:25,960
Speaker 2: even roommate squabble or whatever it happens to be, the

488
00:26:26,119 --> 00:26:27,760
Speaker 2: likelihood that one of those people is going to go

489
00:26:27,800 --> 00:26:30,440
Speaker 2: to their property manager or their landlord to report it

490
00:26:30,720 --> 00:26:36,680
Speaker 2: is almost none. Right, it just doesn't happen. So that's

491
00:26:36,800 --> 00:26:39,840
Speaker 2: like the reportability and willingness to report, I think happens

492
00:26:39,920 --> 00:26:42,399
Speaker 2: much more. And then the extent to which they can

493
00:26:42,440 --> 00:26:46,359
Speaker 2: actually create damage is also much lower. Where they have

494
00:26:46,720 --> 00:26:49,600
Speaker 2: one room as their own space and they're sharing the kitchen,

495
00:26:49,640 --> 00:26:52,680
Speaker 2: they're sharing the bathrooms, and so yeah, if.

496
00:26:52,600 --> 00:26:54,120
Speaker 4: I live in that house, I'm not letting you tear

497
00:26:54,200 --> 00:26:54,399
Speaker 4: up my.

498
00:26:54,480 --> 00:26:58,280
Speaker 2: Kitchen exactly, yes, but not in my kitchen, and so

499
00:26:58,400 --> 00:27:01,119
Speaker 2: your your capacity for early invention as an owner is

500
00:27:01,359 --> 00:27:05,440
Speaker 2: much much greater. Interesting in a shared housing model, which

501
00:27:05,520 --> 00:27:08,879
Speaker 2: means that your turn costs, meaning the cost that you

502
00:27:08,960 --> 00:27:12,080
Speaker 2: spend in between vacancies, is also much much lower.

503
00:27:12,320 --> 00:27:13,400
Speaker 3: It's like under one.

504
00:27:13,320 --> 00:27:17,920
Speaker 2: Hundred dollars on average for rooms, yeah, whereas in a

505
00:27:18,000 --> 00:27:20,720
Speaker 2: house it could be easily in the tens of thousands.

506
00:27:23,480 --> 00:27:35,080
Speaker 1: We'll be right back, all right, So you turned this

507
00:27:35,240 --> 00:27:38,520
Speaker 1: torn up forty six thousand dollars insurance claimhouse into your

508
00:27:39,000 --> 00:27:40,720
Speaker 1: prototype model, I.

509
00:27:40,720 --> 00:27:44,280
Speaker 2: Guess, yeah, and then filled it all. How long did

510
00:27:44,280 --> 00:27:48,600
Speaker 2: it take? Probably three months? It was really pretty easy.

511
00:27:48,680 --> 00:27:50,720
Speaker 2: That house was already a five bedroom, two and a

512
00:27:50,760 --> 00:27:55,080
Speaker 2: half bath. So the only thing I did for construction

513
00:27:55,440 --> 00:28:00,159
Speaker 2: to modify the house was the living room had two

514
00:28:01,640 --> 00:28:04,879
Speaker 2: cased openings for like double doors where you can picture

515
00:28:04,880 --> 00:28:07,640
Speaker 2: these old houses that had the glass the glass doors,

516
00:28:08,359 --> 00:28:10,840
Speaker 2: so those had probably been there at some point in time,

517
00:28:11,320 --> 00:28:14,080
Speaker 2: and I just put regular double privacy doors.

518
00:28:14,440 --> 00:28:16,680
Speaker 3: And so I had six bedrooms two and a half baths.

519
00:28:17,400 --> 00:28:21,160
Speaker 2: We redid the floors and put it up for rent

520
00:28:21,280 --> 00:28:25,520
Speaker 2: on Craigslist and said, hey, we have rooms available for rent.

521
00:28:25,680 --> 00:28:28,880
Speaker 2: Here's the deal. I'm pretty sure it was called pad

522
00:28:28,960 --> 00:28:32,240
Speaker 2: split at that time and how I was advertising it.

523
00:28:32,960 --> 00:28:34,520
Speaker 2: But that was the first one, and I had it

524
00:28:34,560 --> 00:28:37,960
Speaker 2: filled within two weeks, and it was exactly the types

525
00:28:38,000 --> 00:28:42,560
Speaker 2: of folks that the city, through this program and competition,

526
00:28:42,680 --> 00:28:45,440
Speaker 2: had wanted to house. There was a bus driver for

527
00:28:45,720 --> 00:28:51,840
Speaker 2: local Public Transit Authority. There was a technician for comcasts

528
00:28:51,920 --> 00:28:55,959
Speaker 2: at the time now Exfinity. There was a yoga instructor,

529
00:28:56,320 --> 00:29:01,320
Speaker 2: a graduate student, a contract pain her, and a security guard.

530
00:29:01,760 --> 00:29:06,200
Speaker 2: And I mean I knew all of them personally, but

531
00:29:06,560 --> 00:29:09,240
Speaker 2: the story of the security guard was really the one

532
00:29:09,800 --> 00:29:15,440
Speaker 2: that changed my outlook and I think my passion.

533
00:29:15,600 --> 00:29:15,840
Speaker 1: Really.

534
00:29:17,120 --> 00:29:20,400
Speaker 2: She her name was Tiffany, and she was she had

535
00:29:20,440 --> 00:29:23,240
Speaker 2: been living in an extended day motel east of town

536
00:29:23,360 --> 00:29:28,640
Speaker 2: and then well past the fringe, really really sketchy area. Uh.

537
00:29:28,920 --> 00:29:32,120
Speaker 2: And she'd been paying twelve hundred dollars a month to

538
00:29:32,280 --> 00:29:36,640
Speaker 2: rent this motel room on and she, in her own words,

539
00:29:36,800 --> 00:29:39,240
Speaker 2: was dodging drug dealers and prostitutes to get to the

540
00:29:39,280 --> 00:29:41,880
Speaker 2: bus stop to go to her job as a night

541
00:29:41,880 --> 00:29:46,200
Speaker 2: shift security guard at a local film studio. And she

542
00:29:46,400 --> 00:29:48,280
Speaker 2: told me, she said, I've never lived in a situation

543
00:29:48,440 --> 00:29:50,440
Speaker 2: like this before. But this is the nicest house I've

544
00:29:50,480 --> 00:29:50,840
Speaker 2: ever seen.

545
00:29:51,800 --> 00:29:56,040
Speaker 3: And she moves in. Yep, And so she moves in

546
00:29:56,160 --> 00:29:56,560
Speaker 3: right away.

547
00:29:57,840 --> 00:30:02,760
Speaker 2: She starts she's paying five few months with all utilities,

548
00:30:03,760 --> 00:30:05,440
Speaker 2: beautiful furniture.

549
00:30:05,160 --> 00:30:07,800
Speaker 4: Saving seven hundred dollars a month, yeah, seven fifty.

550
00:30:07,920 --> 00:30:11,200
Speaker 2: Yeah, so she she started well, six six fifty six fifty.

551
00:30:11,600 --> 00:30:14,640
Speaker 2: So she starts storing six hundred bucks in cash under

552
00:30:14,640 --> 00:30:18,680
Speaker 2: her mattress, which I teases it's not a recommended strategy, uh,

553
00:30:18,920 --> 00:30:21,640
Speaker 2: but but it worked for her. And three months later

554
00:30:22,480 --> 00:30:25,400
Speaker 2: she's able to buy her own used little smart car,

555
00:30:25,520 --> 00:30:27,920
Speaker 2: you know those little kind of European looking cars. She

556
00:30:28,040 --> 00:30:30,760
Speaker 2: buys her own used car so that she can drive

557
00:30:30,920 --> 00:30:33,160
Speaker 2: to and from her job as a nice SIF security guard.

558
00:30:33,480 --> 00:30:35,760
Speaker 2: And three months later she has enough for a deposit

559
00:30:35,840 --> 00:30:38,080
Speaker 2: on her own apartment. And so she moves out in

560
00:30:38,160 --> 00:30:42,760
Speaker 2: six months, and she has changed her life, Like but

561
00:30:43,120 --> 00:30:45,800
Speaker 2: for this opportunity, she would still be living in that

562
00:30:46,120 --> 00:30:52,040
Speaker 2: in that motel room. And I was really conflicted when

563
00:30:52,120 --> 00:30:56,880
Speaker 2: she when she moved out, because I was like, well, one,

564
00:30:57,040 --> 00:31:01,560
Speaker 2: I'm thrilled for you, but and I'm excited that we've

565
00:31:01,600 --> 00:31:06,720
Speaker 2: been able to help facilitate this outcome for you, but like,

566
00:31:07,240 --> 00:31:09,680
Speaker 2: this was not charity by any stretch, right, I mean,

567
00:31:09,880 --> 00:31:14,920
Speaker 2: I increased my income in creating this opportunity, which really

568
00:31:15,160 --> 00:31:18,960
Speaker 2: just makes you feel like, why is this not a thing?

569
00:31:19,640 --> 00:31:21,640
Speaker 3: Why is everyone not doing this?

570
00:31:21,720 --> 00:31:24,840
Speaker 4: This would be a win win for literally everyone.

571
00:31:24,600 --> 00:31:31,040
Speaker 2: Exactly, And it's much cheaper, more accessible for Tiffany or

572
00:31:31,160 --> 00:31:34,600
Speaker 2: anyone in her similar situation, it's more profitable for the owner.

573
00:31:35,520 --> 00:31:38,840
Speaker 2: Everyone should be doing this. And I've been at this

574
00:31:38,920 --> 00:31:42,440
Speaker 2: point in the affordable housing space for ten years and

575
00:31:44,240 --> 00:31:47,080
Speaker 2: no one's even talking about it. And on the contrary,

576
00:31:47,080 --> 00:31:50,840
Speaker 2: they were mostly talking negatively about it or had a

577
00:31:50,960 --> 00:31:55,920
Speaker 2: negative idea about it. And so that's when I thought, Okay, well,

578
00:31:55,960 --> 00:31:57,840
Speaker 2: I'm just going to keep telling these stories over and

579
00:31:57,920 --> 00:32:00,880
Speaker 2: over and I'm going to bring anyone who will listen

580
00:32:00,960 --> 00:32:06,320
Speaker 2: through this house, including city officials, real estate investors, funders,

581
00:32:06,400 --> 00:32:11,760
Speaker 2: and literally anybody. And finally convinced one of those folks

582
00:32:12,200 --> 00:32:16,280
Speaker 2: who was a real estate investor in twenty eighteen to

583
00:32:16,360 --> 00:32:19,840
Speaker 2: bring on her first house, and that was that was

584
00:32:19,880 --> 00:32:22,960
Speaker 2: the first third party host February of twenty eighteen. And

585
00:32:23,160 --> 00:32:26,920
Speaker 2: just like these stories, these personal stories, like you just

586
00:32:27,760 --> 00:32:30,320
Speaker 2: you start accumulating them over time and.

587
00:32:32,520 --> 00:32:33,880
Speaker 3: It affects you.

588
00:32:34,600 --> 00:32:37,840
Speaker 4: So when did pad split officially become.

589
00:32:39,480 --> 00:32:39,800
Speaker 3: A thing?

590
00:32:40,360 --> 00:32:40,560
Speaker 4: Yeah?

591
00:32:40,880 --> 00:32:46,040
Speaker 2: Yeah, so yeah, officially is is an interesting way to

592
00:32:46,200 --> 00:32:49,080
Speaker 2: describe it. So, like that first house that I did,

593
00:32:49,600 --> 00:32:53,840
Speaker 2: I define, Okay, that's official, Like pad split LLC became

594
00:32:53,920 --> 00:32:56,800
Speaker 2: a thing. I made the little kind of campaign signs

595
00:32:56,840 --> 00:32:58,760
Speaker 2: and would stick them out in corners and tell people

596
00:32:58,800 --> 00:33:03,600
Speaker 2: to call my phone number. But I got into I

597
00:33:03,680 --> 00:33:05,800
Speaker 2: knew this needed to be a technology company. I didn't

598
00:33:05,800 --> 00:33:08,880
Speaker 2: know anything about technology, so I thought, okay, well I

599
00:33:08,920 --> 00:33:11,760
Speaker 2: should go figure out how does one actually start something

600
00:33:11,840 --> 00:33:16,960
Speaker 2: like Airbnb and was just introducing myself to different groups

601
00:33:17,000 --> 00:33:23,160
Speaker 2: around town. Made my way to a group called tech Stars,

602
00:33:23,200 --> 00:33:28,120
Speaker 2: which is now international program out of Boulder, Colorado, and

603
00:33:28,240 --> 00:33:32,640
Speaker 2: they run these incubators where for three months you are

604
00:33:33,520 --> 00:33:38,000
Speaker 2: intensely involved in how to build a startup. And so

605
00:33:38,120 --> 00:33:41,640
Speaker 2: that was now started in June of twenty eighteen, and

606
00:33:41,800 --> 00:33:45,320
Speaker 2: we were admitted to that program and started. I recruited

607
00:33:45,440 --> 00:33:49,400
Speaker 2: my brother in law, my sister's husband, to be kind

608
00:33:49,400 --> 00:33:53,360
Speaker 2: of the operational co founder and this other guy I

609
00:33:53,360 --> 00:33:56,280
Speaker 2: got introduced to, John O'Brien to be the technical co

610
00:33:56,400 --> 00:33:58,840
Speaker 2: founder and he was really the one who knew everything tech.

611
00:33:59,200 --> 00:33:59,920
Speaker 3: I still don't.

612
00:34:00,120 --> 00:34:03,600
Speaker 2: I mean, I'm much better than I was, but hardly

613
00:34:03,800 --> 00:34:08,640
Speaker 2: hardly technical by any stretch. And yeah, the official official

614
00:34:08,680 --> 00:34:13,320
Speaker 2: start was truly like June of twenty eighteen, and we

615
00:34:13,520 --> 00:34:16,560
Speaker 2: just threw ourselves into the program one hundred and twenty percent.

616
00:34:16,880 --> 00:34:23,640
Speaker 2: And yeah, it, I mean, it seems like it went

617
00:34:24,080 --> 00:34:28,040
Speaker 2: quickly in hindsight, but it was just it was a

618
00:34:28,120 --> 00:34:33,239
Speaker 2: slog for a long time and super super gradual. But

619
00:34:35,320 --> 00:34:40,200
Speaker 2: and many other near death moments where we were looking

620
00:34:40,280 --> 00:34:41,080
Speaker 2: over the precipice.

621
00:34:41,160 --> 00:34:47,080
Speaker 4: But but yeah, we'll talk about where it is now.

622
00:34:47,400 --> 00:34:52,520
Speaker 1: But I want to tell you something. My son, one

623
00:34:52,560 --> 00:34:55,359
Speaker 1: of my sons, my older son, my third kid, Will,

624
00:34:58,200 --> 00:35:01,800
Speaker 1: went to the University of Mississippi and studied public policy

625
00:35:02,120 --> 00:35:04,960
Speaker 1: at the Truent Lott School of Public Policy and Leadership,

626
00:35:05,040 --> 00:35:08,759
Speaker 1: and he's now working on the hill. I will never

627
00:35:08,920 --> 00:35:17,320
Speaker 1: forget two things that he shared with me when he

628
00:35:17,400 --> 00:35:19,759
Speaker 1: came home from school. And rarely do your kids in

629
00:35:19,840 --> 00:35:22,279
Speaker 1: college come home from school excited about something they want

630
00:35:22,320 --> 00:35:23,080
Speaker 1: to tell you about.

631
00:35:23,920 --> 00:35:26,480
Speaker 4: The first was I'm going to butcher it.

632
00:35:26,680 --> 00:35:32,960
Speaker 1: But it's about a Mississippi guy who during Prohibition had

633
00:35:32,960 --> 00:35:36,800
Speaker 1: a great speech about where.

634
00:35:36,640 --> 00:35:38,440
Speaker 4: He stood on the.

635
00:35:40,480 --> 00:35:40,840
Speaker 2: On the.

636
00:35:42,920 --> 00:35:48,200
Speaker 1: Issue of prohibition, and he wrote a eloquent speech about

637
00:35:49,480 --> 00:35:54,719
Speaker 1: why if we're talking about the bourbon that suses the

638
00:35:54,840 --> 00:35:58,480
Speaker 1: old man aches that makes Christmas a better day, that

639
00:35:59,400 --> 00:36:01,400
Speaker 1: he goes on on and on and on about that.

640
00:36:01,840 --> 00:36:04,440
Speaker 1: He said, I am absolutely for it. But if you're

641
00:36:04,480 --> 00:36:07,960
Speaker 1: talking about the same salve that makes alcoholics of husbands

642
00:36:08,120 --> 00:36:11,160
Speaker 1: and beaters of children and goes through and uses a selican,

643
00:36:11,680 --> 00:36:16,960
Speaker 1: he said, I am absolutely against it. So at this

644
00:36:17,160 --> 00:36:24,360
Speaker 1: point I stand here absolutely steadfast on my approach to prohibition,

645
00:36:24,640 --> 00:36:27,879
Speaker 1: which meant I don't know right, there's a great thing.

646
00:36:27,960 --> 00:36:29,640
Speaker 4: Do you know what I'm talking about? You should look

647
00:36:29,640 --> 00:36:32,280
Speaker 4: it up. It's a great speech. The second I hate prohibition,

648
00:36:32,400 --> 00:36:36,080
Speaker 4: though I don't agree with them. Yeah. The second.

649
00:36:37,360 --> 00:36:45,160
Speaker 1: Was when he brought home that still hangs in his

650
00:36:45,320 --> 00:36:51,560
Speaker 1: house today, the uh the man in the arena.

651
00:36:51,880 --> 00:36:52,279
Speaker 3: Oh yes.

652
00:36:53,280 --> 00:36:55,319
Speaker 1: And the reason I'm saying that is because I read

653
00:36:55,360 --> 00:36:59,640
Speaker 1: what you said, and I'm going to read it because

654
00:36:59,680 --> 00:37:03,600
Speaker 1: when I read it, I sent to my children. The

655
00:37:03,680 --> 00:37:05,880
Speaker 1: guy I'm interviewing today summed up my life.

656
00:37:07,120 --> 00:37:08,239
Speaker 4: And this is what you said.

657
00:37:09,160 --> 00:37:13,319
Speaker 1: Everybody says, Oh, man, that's a great idea. I wish

658
00:37:13,400 --> 00:37:15,359
Speaker 1: I should have done that if I had a dollar

659
00:37:16,120 --> 00:37:18,840
Speaker 1: for every time I've heard that. The reality is that

660
00:37:19,080 --> 00:37:20,840
Speaker 1: it's just a lot of pain and a lot of

661
00:37:20,880 --> 00:37:23,400
Speaker 1: sleepless nights. And I mean, I've been served with an

662
00:37:23,440 --> 00:37:28,120
Speaker 1: innumerable number of lawsuits at various times, and we got

663
00:37:28,200 --> 00:37:31,040
Speaker 1: left at the Altar Bier series a funder, and then

664
00:37:31,040 --> 00:37:33,440
Speaker 1: we've had a couple of layoffs, and that stuff's hard, man.

665
00:37:33,560 --> 00:37:37,239
Speaker 1: I mean the Teddy Roosevelt poem about the man in

666
00:37:37,320 --> 00:37:40,320
Speaker 1: the Arena, and it's like, you just got to be

667
00:37:40,440 --> 00:37:43,000
Speaker 1: willing to put up with a tremendous amount of pain.

668
00:37:43,840 --> 00:37:46,799
Speaker 1: And the reality is, there just aren't many people out

669
00:37:46,840 --> 00:37:49,120
Speaker 1: there that are willing to put up with the amount

670
00:37:49,120 --> 00:37:53,839
Speaker 1: of pain and risk that's required to make a business successful,

671
00:37:54,040 --> 00:37:58,600
Speaker 1: particularly one that's like we have. When I read that,

672
00:37:58,840 --> 00:38:03,800
Speaker 1: I'm like Atticus and I have lived the same life,

673
00:38:04,000 --> 00:38:08,560
Speaker 1: just in different worlds. So when we hear this cool story,

674
00:38:09,040 --> 00:38:11,000
Speaker 1: I think it's before we go to where you are now.

675
00:38:11,320 --> 00:38:15,759
Speaker 1: I think it's very important for you to make sure

676
00:38:15,800 --> 00:38:24,719
Speaker 1: our listeners understand business philanthropy. Anytime you are creative and

677
00:38:24,920 --> 00:38:30,640
Speaker 1: engage in something that is a little bit uncommon, and

678
00:38:31,560 --> 00:38:40,520
Speaker 1: anytime you venture out, it's never easy, but when it wins,

679
00:38:40,640 --> 00:38:44,600
Speaker 1: the payoff is just catastrophic. And I don't mean personal

680
00:38:44,680 --> 00:38:47,000
Speaker 1: payoff in your pocket, but the change you make for

681
00:38:47,120 --> 00:38:53,320
Speaker 1: our society. But it sounds good, and the rest that

682
00:38:53,400 --> 00:38:55,920
Speaker 1: we're going to hear is going to sound extraordinary. But

683
00:38:56,000 --> 00:39:01,160
Speaker 1: I think it's really important for people to understanding beats,

684
00:39:02,400 --> 00:39:06,719
Speaker 1: hard work, and nothing replaces sleepless nights, time away from

685
00:39:06,760 --> 00:39:10,239
Speaker 1: your wife, tom, away from your kids. The risk the

686
00:39:10,360 --> 00:39:12,719
Speaker 1: days you look in the mirror and feel like am

687
00:39:12,760 --> 00:39:15,960
Speaker 1: I going to puke? Die? Or what's going to happen

688
00:39:16,200 --> 00:39:18,040
Speaker 1: in the next thirty minutes of my life? When your

689
00:39:18,080 --> 00:39:21,279
Speaker 1: head's bounding so hard, ears ringing, and your eyes are

690
00:39:21,320 --> 00:39:23,880
Speaker 1: bloodshot and you not even see what you're looking at

691
00:39:23,920 --> 00:39:27,480
Speaker 1: in the mirror. Some days I know you've experienced it.

692
00:39:27,719 --> 00:39:28,359
Speaker 4: Oh, no doubt.

693
00:39:29,200 --> 00:39:36,120
Speaker 3: Yeah, yeah, I remember saying that, and I can't I

694
00:39:36,160 --> 00:39:36,600
Speaker 3: can't recall.

695
00:39:36,600 --> 00:39:37,320
Speaker 4: It was an interview.

696
00:39:37,400 --> 00:39:38,759
Speaker 3: Yeah, it was an interview, all right.

697
00:39:38,800 --> 00:39:40,919
Speaker 1: Well, Alex picked it up somewhere and when I read

698
00:39:40,920 --> 00:39:42,800
Speaker 1: it in the prop, I was just like, holy crap,

699
00:39:42,880 --> 00:39:44,480
Speaker 1: this guy does feel feel it?

700
00:39:45,680 --> 00:39:48,719
Speaker 3: Yeah? No, I mean, and it's been it's been consistent.

701
00:39:49,440 --> 00:39:52,680
Speaker 4: Consistent, misery just getting well.

702
00:39:52,719 --> 00:39:56,840
Speaker 3: I mean like listen, you and you know this. You

703
00:39:57,239 --> 00:39:59,800
Speaker 3: you build armor. I mean it is a muscle that

704
00:39:59,880 --> 00:40:05,200
Speaker 3: you you build and just confronting.

705
00:40:05,960 --> 00:40:12,680
Speaker 2: Failure, and I mean in some cases it's it's not

706
00:40:12,920 --> 00:40:16,040
Speaker 2: just antagonism, it's it's hatred in some cases, and you

707
00:40:16,239 --> 00:40:21,560
Speaker 2: know that they're whether whether it's failure or actual opponents.

708
00:40:23,800 --> 00:40:26,520
Speaker 2: And every day you make a decision about what's what

709
00:40:26,600 --> 00:40:28,920
Speaker 2: are you going to do moving forward and what's the

710
00:40:28,960 --> 00:40:30,040
Speaker 2: next step that you're going to take.

711
00:40:30,800 --> 00:40:33,080
Speaker 1: Yeah, and anybody that thinks you're going to venture off

712
00:40:33,160 --> 00:40:36,359
Speaker 1: into the unknown and something that's uncommon and also work

713
00:40:36,560 --> 00:40:40,920
Speaker 1: and serve in the fringe areas that thinks it's just

714
00:40:41,080 --> 00:40:44,080
Speaker 1: going to be easy peaches and cream, wake up.

715
00:40:44,640 --> 00:40:44,839
Speaker 3: Yeah.

716
00:40:45,360 --> 00:40:48,879
Speaker 2: And I don't know how many people, or at least

717
00:40:49,080 --> 00:40:51,040
Speaker 2: I don't know that. I believe many people think it's

718
00:40:51,120 --> 00:40:54,400
Speaker 2: going to be easy, but I'm not sure that most

719
00:40:54,480 --> 00:41:01,080
Speaker 2: folks realize what they're going to have to do. I'll

720
00:41:01,080 --> 00:41:05,799
Speaker 2: tell you though, For me, when I decided, I mean

721
00:41:05,840 --> 00:41:07,719
Speaker 2: because I had been through the ringer in the early

722
00:41:07,840 --> 00:41:09,239
Speaker 2: years my entree.

723
00:41:09,320 --> 00:41:11,239
Speaker 4: I made ten thousand dollars in two thousand and six

724
00:41:11,360 --> 00:41:12,360
Speaker 4: with the newborn.

725
00:41:12,480 --> 00:41:14,279
Speaker 2: Two thousand and nine was the hardest where like I

726
00:41:14,400 --> 00:41:18,239
Speaker 2: was literally like crying, collapsed on the floor of this

727
00:41:18,360 --> 00:41:19,880
Speaker 2: rental house because I thought I was just going to

728
00:41:19,960 --> 00:41:26,239
Speaker 2: lose everything. But in when I started pad split, I

729
00:41:28,640 --> 00:41:30,839
Speaker 2: and I took a deep breath to just say, Okay,

730
00:41:30,880 --> 00:41:33,759
Speaker 2: I'm going to do this. I was super clear on

731
00:41:34,480 --> 00:41:36,320
Speaker 2: what I was willing to risk and what I was

732
00:41:36,440 --> 00:41:39,439
Speaker 2: not willing to risk. And what I was not willing

733
00:41:39,480 --> 00:41:41,759
Speaker 2: to risk was my family. Right. I had seen far

734
00:41:41,880 --> 00:41:44,719
Speaker 2: too many entrepreneurs and we've seen I mean, there are

735
00:41:44,760 --> 00:41:48,719
Speaker 2: books written about all these people, right who have become

736
00:41:49,040 --> 00:41:53,920
Speaker 2: incredibly successful in some way, shape or form, and have

737
00:41:54,080 --> 00:41:57,040
Speaker 2: now been divorced many times over and estranged from their

738
00:41:57,120 --> 00:41:57,480
Speaker 2: kids and.

739
00:41:57,480 --> 00:41:59,919
Speaker 3: So forth and so on, and their kids are yeah,

740
00:42:01,000 --> 00:42:03,000
Speaker 3: not in great shape exactly.

741
00:42:03,120 --> 00:42:05,680
Speaker 2: Yeah, And and I said from the from the very

742
00:42:05,719 --> 00:42:08,080
Speaker 2: early stage, that is not something I will sacrifice. I

743
00:42:08,160 --> 00:42:10,960
Speaker 2: will not give up my family, and that will always

744
00:42:11,000 --> 00:42:14,560
Speaker 2: be the first priority, and that this thing that I'm

745
00:42:14,600 --> 00:42:16,719
Speaker 2: creating that I want to be a legacy for good

746
00:42:16,760 --> 00:42:21,719
Speaker 2: in the world, can only ever be second to that,

747
00:42:22,760 --> 00:42:25,000
Speaker 2: because first and foremost I want to be a father

748
00:42:25,080 --> 00:42:31,440
Speaker 2: and husband. But yeah, I mean, there there is just

749
00:42:34,360 --> 00:42:41,040
Speaker 2: the the persistence of the pain and it's just like

750
00:42:41,440 --> 00:42:46,279
Speaker 2: it's like a constant drip. And I think that's really

751
00:42:46,400 --> 00:42:54,080
Speaker 2: what requires the muscle building, is just understanding that this

752
00:42:54,280 --> 00:42:57,560
Speaker 2: is not going to be done in a year or

753
00:42:57,640 --> 00:43:00,880
Speaker 2: two years or five years, like this is going to

754
00:43:00,920 --> 00:43:05,719
Speaker 2: be almost every day in some cases, for much much

755
00:43:05,800 --> 00:43:08,560
Speaker 2: longer than you ever anticipated it will be.

756
00:43:09,600 --> 00:43:14,600
Speaker 3: And long after you think you have proved to the

757
00:43:14,719 --> 00:43:19,880
Speaker 3: world that this works, you're still going to have the

758
00:43:20,000 --> 00:43:21,800
Speaker 3: majority of the population who.

759
00:43:22,440 --> 00:43:26,080
Speaker 2: Absolutely refuses to believe it and will be opposed to

760
00:43:26,120 --> 00:43:27,719
Speaker 2: you at every turn.

761
00:43:28,680 --> 00:43:31,440
Speaker 1: I gotta believe the same thing happened with their benb guy,

762
00:43:31,480 --> 00:43:31,960
Speaker 1: whoever that.

763
00:43:32,160 --> 00:43:35,439
Speaker 3: Is, Yeah, Brian Chesky, Oh yeah, I guess you would

764
00:43:35,560 --> 00:43:36,680
Speaker 3: know their name probably.

765
00:43:36,480 --> 00:43:41,600
Speaker 2: But yeah, I'm sure well. And actually I borrowed a quote.

766
00:43:42,080 --> 00:43:44,120
Speaker 2: It's not his director, but I heard him say it

767
00:43:44,560 --> 00:43:51,279
Speaker 2: from Picasso, and the quote is the older I get,

768
00:43:51,640 --> 00:43:52,920
Speaker 2: the stronger the wind blows.

769
00:43:53,320 --> 00:43:58,440
Speaker 3: And it's always in my face of it, and it's

770
00:43:58,520 --> 00:43:59,160
Speaker 3: totally true.

771
00:43:59,600 --> 00:44:03,440
Speaker 2: But but like what's missing from that quote is the

772
00:44:03,560 --> 00:44:07,759
Speaker 2: older you get, the more customed you get to the

773
00:44:07,880 --> 00:44:12,680
Speaker 2: wind blowing stronger and stronger, which is which is a

774
00:44:12,760 --> 00:44:17,200
Speaker 2: pro and a con, and that like one I journal

775
00:44:17,400 --> 00:44:19,800
Speaker 2: every day and and I look back at my journal

776
00:44:19,920 --> 00:44:24,040
Speaker 2: entries from five years ago, and they just look like

777
00:44:24,560 --> 00:44:28,480
Speaker 2: simple tribulations, even though I knew they were existential crises

778
00:44:28,480 --> 00:44:32,000
Speaker 2: at the time. Now it's just like, oh whatever, it's

779
00:44:32,080 --> 00:44:37,280
Speaker 2: just another day at the office. But but the problem,

780
00:44:37,360 --> 00:44:39,920
Speaker 2: I think where you really need to be conscious is

781
00:44:41,719 --> 00:44:44,040
Speaker 2: how do you how do you still refill your cup

782
00:44:44,920 --> 00:44:51,719
Speaker 2: and how do you not just become uh, I don't know,

783
00:44:52,120 --> 00:44:55,920
Speaker 2: immune to feeling in some ways, and make sure that

784
00:44:56,080 --> 00:44:59,280
Speaker 2: even if as you've built this armor because you're accustomed

785
00:44:59,280 --> 00:45:03,560
Speaker 2: to confront difficulty, how do you still retain compassion and

786
00:45:03,640 --> 00:45:07,439
Speaker 2: empathy and be a human in a lot of ways.

787
00:45:07,640 --> 00:45:12,080
Speaker 4: That is really profound because I have had to work

788
00:45:12,120 --> 00:45:12,279
Speaker 4: on that.

789
00:45:12,600 --> 00:45:17,879
Speaker 1: Yeah, you know, dealing with bankers crawling down your neck,

790
00:45:18,000 --> 00:45:21,799
Speaker 1: and employees needing stuff and having to lay them off,

791
00:45:21,960 --> 00:45:25,920
Speaker 1: and the guilt you feel, and fighting customers and vendors,

792
00:45:26,040 --> 00:45:29,040
Speaker 1: and we do business in forty two countries fighting all that,

793
00:45:29,239 --> 00:45:33,680
Speaker 1: and you can imagine what our trade war is to

794
00:45:34,560 --> 00:45:38,600
Speaker 1: my business when you know, and all of that, and

795
00:45:38,719 --> 00:45:40,640
Speaker 1: this shell, this armor, the stuff, since you got to

796
00:45:40,719 --> 00:45:44,239
Speaker 1: have to make things go for everybody. And then when

797
00:45:44,239 --> 00:45:46,279
Speaker 1: you leave that world and you walk through the front

798
00:45:46,320 --> 00:45:48,600
Speaker 1: door of your home to your beautiful wife and your family.

799
00:45:49,520 --> 00:45:52,879
Speaker 1: You have to be able to dis robe from that armor. Yeah,

800
00:45:53,000 --> 00:45:56,919
Speaker 1: to recapture the essence of who you are as a person.

801
00:45:56,760 --> 00:45:58,319
Speaker 3: And who you want to be and who you want

802
00:45:58,360 --> 00:45:58,480
Speaker 3: to be.

803
00:45:58,760 --> 00:46:02,839
Speaker 4: Yeah, it's a challenge sometimes, most of the time, most

804
00:46:02,880 --> 00:46:03,200
Speaker 4: of them.

805
00:46:03,920 --> 00:46:08,120
Speaker 1: But the point is, whether you're doing pad split or

806
00:46:08,239 --> 00:46:14,200
Speaker 1: you're starting some organization to serve homeless or whatever, it's

807
00:46:14,360 --> 00:46:20,160
Speaker 1: all the same process, really, yep, which is why when

808
00:46:20,560 --> 00:46:25,360
Speaker 1: you pull it off, it is so unbelievably, undeniably rewarding,

809
00:46:25,640 --> 00:46:28,480
Speaker 1: and not just yourself but to those around you.

810
00:46:32,800 --> 00:46:33,919
Speaker 4: We'll be right back.

811
00:46:46,360 --> 00:46:51,840
Speaker 1: So twenty nineteen eighteen, Whin's pad splid bec official.

812
00:46:52,239 --> 00:46:56,120
Speaker 3: Twenty eighteen, twenty eighteen, I'd say it is official official.

813
00:46:56,520 --> 00:47:00,440
Speaker 4: So tell me what Pats it looks like to day, bro.

814
00:47:00,880 --> 00:47:05,200
Speaker 3: Yeah, so we are. We just crossed twenty five thousand units.

815
00:47:05,960 --> 00:47:12,560
Speaker 4: Un believable. What deep? Five thousand of these things spread

816
00:47:12,600 --> 00:47:13,799
Speaker 4: out all over the country.

817
00:47:13,600 --> 00:47:14,240
Speaker 3: All over the country.

818
00:47:14,320 --> 00:47:14,759
Speaker 2: Yeah, we're.

819
00:47:16,280 --> 00:47:18,160
Speaker 3: In at least twenty six states.

820
00:47:18,760 --> 00:47:20,040
Speaker 4: Now you're not in Memphis.

821
00:47:21,560 --> 00:47:22,480
Speaker 3: We can be though.

822
00:47:23,000 --> 00:47:24,080
Speaker 4: We're gonna be all right.

823
00:47:24,239 --> 00:47:28,080
Speaker 1: Oh, we're gonna be This is look I look around

824
00:47:28,160 --> 00:47:31,200
Speaker 1: my town, and I see what you saw in Atlanta

825
00:47:31,400 --> 00:47:37,360
Speaker 1: twenty years ago today, and there are literally hundreds of

826
00:47:37,400 --> 00:47:40,400
Speaker 1: neighborhoods with the exact houses you're talking about that the

827
00:47:40,600 --> 00:47:43,520
Speaker 1: nineteen twenties to thirties, cool looking little bungalows that are

828
00:47:43,600 --> 00:47:48,480
Speaker 1: historical nature and complete neighborhoods inside our loop which is

829
00:47:48,800 --> 00:47:49,839
Speaker 1: two forty yep.

830
00:47:50,000 --> 00:47:51,960
Speaker 4: Okay, you said, what was Atlanta's.

831
00:47:51,880 --> 00:47:52,399
Speaker 3: Two eighty five?

832
00:47:52,480 --> 00:47:57,759
Speaker 1: Okay, ours is two forty same exact, exact demographic, same

833
00:47:57,840 --> 00:48:02,560
Speaker 1: exact everything, andghborhoods with all these houses built from nineteen

834
00:48:02,600 --> 00:48:05,160
Speaker 1: forty five to nineteen sixty that are the ranch style,

835
00:48:06,120 --> 00:48:12,719
Speaker 1: coming home from the military type things. And there are

836
00:48:13,840 --> 00:48:17,360
Speaker 1: good neighbors and all of these places that are simply

837
00:48:17,480 --> 00:48:20,759
Speaker 1: seeking the same basics that we talked about, almost the

838
00:48:21,480 --> 00:48:24,440
Speaker 1: Maslow of hierarchy of needs for home exactly.

839
00:48:24,480 --> 00:48:26,640
Speaker 3: Yeah, quoted all the time, do you really Okay?

840
00:48:26,680 --> 00:48:30,640
Speaker 1: Well, there you go, same thing, and there is nothing

841
00:48:31,680 --> 00:48:38,880
Speaker 1: like this, And Memphis is full full of service oriented

842
00:48:38,960 --> 00:48:48,480
Speaker 1: people experiencing. I call it home insecurity, and I think

843
00:48:48,520 --> 00:48:50,800
Speaker 1: there are cities just like ours that are like this.

844
00:48:51,000 --> 00:48:55,200
Speaker 1: It's why I loved it so twenty five thousand. But

845
00:48:55,280 --> 00:48:57,719
Speaker 1: give me more demographics. Yeah, so lots of give me

846
00:48:57,800 --> 00:49:00,359
Speaker 1: the numbers, give me, give me what you know now

847
00:49:01,360 --> 00:49:05,279
Speaker 1: that you felt in twenty eighteen that have now come

848
00:49:05,320 --> 00:49:08,280
Speaker 1: to fruition that make this the degal.

849
00:49:08,440 --> 00:49:11,080
Speaker 2: Yeah, well two things I'll say there. I'll happy to

850
00:49:11,080 --> 00:49:12,560
Speaker 2: give you the numbers. So we also just crossed two

851
00:49:12,640 --> 00:49:15,399
Speaker 2: hundred million dollars saved for the residents who have moved

852
00:49:15,440 --> 00:49:16,319
Speaker 2: into the keep up.

853
00:49:16,239 --> 00:49:18,880
Speaker 4: With that metric, we do two hundred million.

854
00:49:19,160 --> 00:49:22,279
Speaker 2: Saved relative to what they were doing before. If you

855
00:49:22,360 --> 00:49:24,880
Speaker 2: compare it to market rent, it's probably like five hundred million.

856
00:49:25,080 --> 00:49:29,920
Speaker 4: But half a billion dollars. Yeah, it's I mean, and

857
00:49:30,080 --> 00:49:32,560
Speaker 4: that's weird numbers. That's like hard to have them.

858
00:49:32,680 --> 00:49:34,440
Speaker 2: And that's what I'm saying, Like, I mean, I know

859
00:49:34,600 --> 00:49:37,480
Speaker 2: these numbers off the top of my head. It's like

860
00:49:37,600 --> 00:49:41,920
Speaker 2: seven billion dollars relative to what would have been required

861
00:49:42,280 --> 00:49:47,160
Speaker 2: if you use traditional subsidized housing program to subsidized housing

862
00:49:47,200 --> 00:49:49,800
Speaker 2: programs to go create a similar number of units. So

863
00:49:49,920 --> 00:49:52,400
Speaker 2: like taxpayer dollars that otherwise would have been necessary to

864
00:49:52,520 --> 00:49:57,440
Speaker 2: create twenty five thousand units is about seven billion. We

865
00:49:58,040 --> 00:50:01,480
Speaker 2: our meeting income is twenty seven thousand a year or

866
00:50:01,600 --> 00:50:05,799
Speaker 2: your members YEP of our residents. We know that eight

867
00:50:05,920 --> 00:50:09,600
Speaker 2: percent of our residence moved directly from unsheltered homelessness in

868
00:50:09,680 --> 00:50:11,400
Speaker 2: spite of having full time employment.

869
00:50:12,440 --> 00:50:14,439
Speaker 1: That's the thing I got. I gotta tell you something

870
00:50:14,440 --> 00:50:16,879
Speaker 1: else about Memphis. There's a thing here called Church Health.

871
00:50:18,560 --> 00:50:20,880
Speaker 1: A guy named Scott Morris who's been a guest but

872
00:50:21,160 --> 00:50:23,680
Speaker 1: before that, it's a buddy of mine. He's got his

873
00:50:23,800 --> 00:50:28,920
Speaker 1: degree from Yale in divinity and he's got is a

874
00:50:29,200 --> 00:50:32,799
Speaker 1: medical doctor from I think Emory in Atlanta. Wow, that's weird.

875
00:50:32,920 --> 00:50:34,920
Speaker 1: And he grew up in Atlanstia. We should meet, you

876
00:50:35,080 --> 00:50:38,040
Speaker 1: really should meet. Because he started Church Health for the

877
00:50:38,280 --> 00:50:42,120
Speaker 1: working poor. He said you should not work thirty two

878
00:50:42,239 --> 00:50:46,960
Speaker 1: hours a week or more and not have top healthcare.

879
00:50:47,800 --> 00:50:51,200
Speaker 1: And it is now the largest what is it, alex

880
00:50:51,680 --> 00:50:52,840
Speaker 1: it's the largest.

881
00:50:54,320 --> 00:50:56,160
Speaker 4: Yeah, there is a title for it, but it's uh.

882
00:50:56,480 --> 00:50:59,600
Speaker 2: They got sixty they're on the primary doctor for sixty

883
00:50:59,640 --> 00:51:02,640
Speaker 2: thousand underinsured people in Mentoota.

884
00:51:03,200 --> 00:51:09,680
Speaker 1: Yeah, and we're talking a YMCA rehabilitation center, a full dental,

885
00:51:09,920 --> 00:51:13,680
Speaker 1: full vision, full medical, all the way to if you

886
00:51:13,840 --> 00:51:18,839
Speaker 1: need a heart transplant taken care of for the very

887
00:51:18,920 --> 00:51:22,120
Speaker 1: tight people that need a place to live in like

888
00:51:22,239 --> 00:51:25,719
Speaker 1: what you're providing. He provides for those very people, the

889
00:51:25,840 --> 00:51:32,080
Speaker 1: working poor, better healthcare than I can. And the point

890
00:51:32,440 --> 00:51:34,520
Speaker 1: is that you just said. The reason I brought it

891
00:51:34,640 --> 00:51:41,720
Speaker 1: up is you're absolutely right. Tiffany the security guard should

892
00:51:41,880 --> 00:51:44,800
Speaker 1: not be working forty hours a week in this country,

893
00:51:44,960 --> 00:51:47,799
Speaker 1: paying or taxes paying or Social Security, doing what she's

894
00:51:47,800 --> 00:51:51,080
Speaker 1: supposed to do and have to step over drug dealers

895
00:51:51,120 --> 00:51:54,000
Speaker 1: and hookers to pay twelve hundred dollars to live in fear.

896
00:51:54,480 --> 00:51:59,120
Speaker 4: Yes, that is not an America that I believe in.

897
00:51:59,280 --> 00:52:03,480
Speaker 1: That is not a culture that that woman should have

898
00:52:03,600 --> 00:52:06,080
Speaker 1: to put up with when she is doing what the

899
00:52:06,160 --> 00:52:08,480
Speaker 1: world told her to do, which is get a job

900
00:52:08,560 --> 00:52:12,960
Speaker 1: and you'll be there. And this thing is an answer

901
00:52:13,080 --> 00:52:13,960
Speaker 1: for some of those folks.

902
00:52:14,080 --> 00:52:14,279
Speaker 4: It is.

903
00:52:14,480 --> 00:52:18,400
Speaker 2: It is, and I mean for those of you listening too.

904
00:52:19,200 --> 00:52:21,520
Speaker 2: I mean the other part of that equation, though, is

905
00:52:22,320 --> 00:52:25,759
Speaker 2: do you believe that people like Tiffany should have an

906
00:52:25,840 --> 00:52:30,040
Speaker 2: opportunity to live in our communities which they serve literally? Right?

907
00:52:30,040 --> 00:52:33,600
Speaker 2: I mean, she was a security guard. The example I

908
00:52:33,680 --> 00:52:36,960
Speaker 2: often use in one of my speeches is a woman

909
00:52:37,000 --> 00:52:39,080
Speaker 2: named Kyosha who is an in home health aid and

910
00:52:39,280 --> 00:52:42,360
Speaker 2: go ahead and look up, like I challenge anybody's listening,

911
00:52:42,640 --> 00:52:44,920
Speaker 2: go on indeed dot com and look up what a

912
00:52:45,000 --> 00:52:47,239
Speaker 2: home health aid gets paid, like the same people who

913
00:52:47,320 --> 00:52:50,640
Speaker 2: are going to be caring for your loved one when

914
00:52:51,160 --> 00:52:53,200
Speaker 2: they are on their deathbed.

915
00:52:53,400 --> 00:52:56,839
Speaker 1: And it's not in a quarter or ten fifteen an hour,

916
00:52:57,040 --> 00:52:57,800
Speaker 1: it's nothing.

917
00:52:58,040 --> 00:53:00,040
Speaker 2: It's it's it doesn't matter what city you're in, and

918
00:53:00,080 --> 00:53:02,239
Speaker 2: it's always it's always less than forty grand a year.

919
00:53:02,680 --> 00:53:06,359
Speaker 2: And then go look at what that income actually qualifies

920
00:53:06,440 --> 00:53:08,440
Speaker 2: them to rent. And what you see is there's this

921
00:53:08,840 --> 00:53:13,480
Speaker 2: enormous disparity, and so do those types of people deserve

922
00:53:13,520 --> 00:53:17,239
Speaker 2: an opportunity to live in those communities? But that what

923
00:53:17,360 --> 00:53:21,560
Speaker 2: that also means is that for people who have lived

924
00:53:21,719 --> 00:53:25,960
Speaker 2: in traditional neighborhoods for a long time, like something has

925
00:53:26,080 --> 00:53:29,000
Speaker 2: to give, right and you have to be able to

926
00:53:29,120 --> 00:53:32,399
Speaker 2: house the people like Tiffany or the home health aid

927
00:53:32,520 --> 00:53:38,640
Speaker 2: like Kyoshia in those communities. Because if a small company

928
00:53:38,760 --> 00:53:42,200
Speaker 2: like ours has been able to save seven billion dollars

929
00:53:42,400 --> 00:53:45,080
Speaker 2: in taxpayer funding that would be required to create this

930
00:53:45,239 --> 00:53:48,360
Speaker 2: type of housing, and you know that money doesn't exist.

931
00:53:48,440 --> 00:53:51,640
Speaker 2: It's like four trillion dollars total that would be needed

932
00:53:51,760 --> 00:53:55,400
Speaker 2: just to build the houses. Much less actually, operate them

933
00:53:56,280 --> 00:53:58,880
Speaker 2: at a price that could be afforded by those workers.

934
00:53:59,239 --> 00:54:01,200
Speaker 4: Meanwhile, there's a solution. Yeah.

935
00:54:01,239 --> 00:54:04,360
Speaker 2: Meanwhile, yeah, there are empty bedrooms there. You have thirty

936
00:54:04,400 --> 00:54:08,040
Speaker 2: two million empty unused bedrooms in the United States compared

937
00:54:08,120 --> 00:54:11,760
Speaker 2: to a housing need for those types of people around

938
00:54:11,800 --> 00:54:12,440
Speaker 2: seven million.

939
00:54:13,239 --> 00:54:14,600
Speaker 4: So you have a surplus.

940
00:54:14,680 --> 00:54:15,960
Speaker 3: That's easy math, right, we have.

941
00:54:16,200 --> 00:54:19,440
Speaker 2: We actually have more housing supply on a square footage

942
00:54:19,440 --> 00:54:22,360
Speaker 2: basis today than we've ever had in United States history.

943
00:54:22,800 --> 00:54:25,799
Speaker 2: So people talk about the shortage of housing, Well, it's

944
00:54:25,920 --> 00:54:28,320
Speaker 2: kind of true, but it's only true because we have

945
00:54:28,400 --> 00:54:30,920
Speaker 2: a lot of one and two person households who are

946
00:54:31,000 --> 00:54:35,320
Speaker 2: living in larger homes, and a lot of people like

947
00:54:35,440 --> 00:54:38,160
Speaker 2: the Tiffany's and Kyoshia in the world get left out

948
00:54:38,760 --> 00:54:41,800
Speaker 2: because they don't have access to those to those rooms.

949
00:54:42,480 --> 00:54:48,200
Speaker 2: And so like, do we as Americans who believe that

950
00:54:49,200 --> 00:54:51,880
Speaker 2: you should be able to pull yourselves up by your bootstraps,

951
00:54:51,960 --> 00:54:54,200
Speaker 2: or you should at least have an opportunity if you're

952
00:54:54,239 --> 00:54:57,040
Speaker 2: working and you're doing the right thing, you should be

953
00:54:57,120 --> 00:54:59,759
Speaker 2: able to have a safe place to call home. Do

954
00:55:00,040 --> 00:55:03,120
Speaker 2: we also believe that you know what, like, I'm going

955
00:55:03,200 --> 00:55:07,360
Speaker 2: to be a part of that solution and That's ultimately

956
00:55:08,280 --> 00:55:11,120
Speaker 2: why I created this company as a marketplace is so

957
00:55:11,239 --> 00:55:15,120
Speaker 2: that anyone anywhere who is compelled to take action has

958
00:55:15,160 --> 00:55:16,440
Speaker 2: the ability to do it, and they can do it

959
00:55:16,480 --> 00:55:19,960
Speaker 2: anywhere in America right now on on the platform. You

960
00:55:20,120 --> 00:55:23,520
Speaker 2: have an extra room in your apartment or your house. Uh,

961
00:55:23,760 --> 00:55:27,719
Speaker 2: if you want to go become a housing provider an

962
00:55:27,760 --> 00:55:29,319
Speaker 2: investor like I did.

963
00:55:29,800 --> 00:55:31,000
Speaker 4: Like, there are.

964
00:55:31,120 --> 00:55:34,640
Speaker 3: Multiple paths you can You can go do this in

965
00:55:34,719 --> 00:55:35,720
Speaker 3: a financially.

966
00:55:37,120 --> 00:55:41,280
Speaker 1: If you haven't absolutely and you're probably gonna make more money.

967
00:55:41,480 --> 00:55:42,960
Speaker 2: Yeah, in a lot of in a lot of cases

968
00:55:43,000 --> 00:55:46,000
Speaker 2: you will. And so to that point, it's not even

969
00:55:46,120 --> 00:55:52,080
Speaker 2: it's not even a sacrifice, right, but you I think

970
00:55:52,160 --> 00:55:55,479
Speaker 2: what what's powerful uh and still resonates with me about

971
00:55:55,520 --> 00:56:00,160
Speaker 2: this model is literally anyone can be a part of

972
00:56:01,200 --> 00:56:06,000
Speaker 2: that solution. It's just a question of are we willing

973
00:56:06,200 --> 00:56:10,080
Speaker 2: to take that principled stand and take the next step

974
00:56:10,160 --> 00:56:11,839
Speaker 2: towards towards.

975
00:56:11,560 --> 00:56:17,719
Speaker 1: Action About pad splits, members, ninety percent would recommend pad

976
00:56:17,800 --> 00:56:21,399
Speaker 1: split to a friend, which you can't get ninety percent

977
00:56:21,440 --> 00:56:23,560
Speaker 1: of people to agree to anything, So that's a huge number.

978
00:56:23,640 --> 00:56:26,840
Speaker 1: Twenty seven thousand dollars is the median annual income for

979
00:56:27,360 --> 00:56:34,600
Speaker 1: members residents. Fifty four percent report improved job stability. Primarily,

980
00:56:34,960 --> 00:56:37,320
Speaker 1: My guess would be because they have somewhere to go

981
00:56:37,480 --> 00:56:41,719
Speaker 1: that's quiet and healthy and safe, which allows them to

982
00:56:41,800 --> 00:56:45,560
Speaker 1: be better at their job. Eighty percent are employed. Of those,

983
00:56:45,800 --> 00:56:51,200
Speaker 1: seven percent commute to their jobs. Fifty percent of the

984
00:56:51,320 --> 00:56:56,040
Speaker 1: members are able to pay off debt. Average monthly saved

985
00:56:56,120 --> 00:56:59,040
Speaker 1: each month by residents or members are three hundred and

986
00:56:59,080 --> 00:57:03,200
Speaker 1: sixty six bucks. Seventy five percent of members are persons

987
00:57:03,239 --> 00:57:06,080
Speaker 1: of color. Nine point three months average is the length

988
00:57:06,160 --> 00:57:10,160
Speaker 1: of stay median age is interesting to me thirty six

989
00:57:10,280 --> 00:57:14,799
Speaker 1: years old, five point four nine million saved per month

990
00:57:14,880 --> 00:57:19,080
Speaker 1: across active members, nineteen point nine plus million historical savings

991
00:57:19,600 --> 00:57:25,200
Speaker 1: fifty six thousand, five hundred members.

992
00:57:25,560 --> 00:57:31,400
Speaker 4: Housed off your idea, bro fifty six thousand.

993
00:57:32,680 --> 00:57:36,880
Speaker 1: And here's the big one. Zero dollars in taxpayer box,

994
00:57:37,760 --> 00:57:41,320
Speaker 1: no money, no money from the public, callfers to do this.

995
00:57:42,280 --> 00:57:46,880
Speaker 1: The economic impact we've created more than twenty two thousand,

996
00:57:47,000 --> 00:57:50,960
Speaker 1: five hundred units for our residents. Two hundred and fifty

997
00:57:51,040 --> 00:57:54,520
Speaker 1: thousand is average costs for government substyles affordable housing US,

998
00:57:54,640 --> 00:58:01,440
Speaker 1: which equals five point six billion dollars that PAD split

999
00:58:02,200 --> 00:58:07,360
Speaker 1: has saved taxpayers in addition to the money it makes

1000
00:58:07,480 --> 00:58:12,360
Speaker 1: for its homeowners and the money and saves savings and

1001
00:58:12,560 --> 00:58:15,880
Speaker 1: the increase in lifestyle provides for its members. It is

1002
00:58:16,040 --> 00:58:17,160
Speaker 1: a triple win.

1003
00:58:18,120 --> 00:58:22,480
Speaker 3: That's that's the idea. Yeah, we nominal, Yeah, thank you.

1004
00:58:22,560 --> 00:58:23,920
Speaker 2: Yeah, we are a little out of date on the

1005
00:58:24,120 --> 00:58:26,040
Speaker 2: on the website, but we're growing pretty quickly too.

1006
00:58:26,400 --> 00:58:28,960
Speaker 4: So it is pad split it app? Is that what

1007
00:58:29,080 --> 00:58:29,800
Speaker 4: it ends up being.

1008
00:58:29,920 --> 00:58:36,200
Speaker 1: How how does Mitch find out and if Linda moves

1009
00:58:36,240 --> 00:58:38,520
Speaker 1: into this house and doesntlight this dude and has that

1010
00:58:38,640 --> 00:58:39,560
Speaker 1: mobility piece?

1011
00:58:40,200 --> 00:58:40,320
Speaker 2: Is it?

1012
00:58:40,560 --> 00:58:42,640
Speaker 1: Is it on a computer? Is it on a phone app?

1013
00:58:42,720 --> 00:58:45,920
Speaker 1: I mean, how does it give us? How does pad split?

1014
00:58:46,160 --> 00:58:46,680
Speaker 1: How does it work?

1015
00:58:46,880 --> 00:58:52,120
Speaker 4: Operationally? Work? And you know, when I want to become

1016
00:58:52,160 --> 00:58:55,640
Speaker 4: a member? How do I apply? Who is vetting me?

1017
00:58:56,280 --> 00:58:58,400
Speaker 4: Give me the operational background behind us?

1018
00:58:58,520 --> 00:58:58,680
Speaker 3: Yeah.

1019
00:58:58,800 --> 00:59:01,160
Speaker 2: So so they can find on the web or on

1020
00:59:01,240 --> 00:59:03,240
Speaker 2: the app. Let's assume they've never heard of pad split

1021
00:59:03,280 --> 00:59:04,640
Speaker 2: and they just go look for a room for rent.

1022
00:59:05,400 --> 00:59:08,400
Speaker 2: We're usually one of the first sites that pops up.

1023
00:59:08,920 --> 00:59:10,920
Speaker 4: And so we are two smart guys making sure you're

1024
00:59:11,040 --> 00:59:11,880
Speaker 4: number one on the web.

1025
00:59:12,080 --> 00:59:15,200
Speaker 2: Yeah, I mean not necessarily number one, but a lot

1026
00:59:15,280 --> 00:59:18,200
Speaker 2: of those sites that list are listing our units as well,

1027
00:59:18,640 --> 00:59:22,720
Speaker 2: so we're posted on pretty much anybody who lists rooms

1028
00:59:22,760 --> 00:59:28,720
Speaker 2: and most departments. But yeah, they would just search for

1029
00:59:29,080 --> 00:59:31,200
Speaker 2: they want a room for rent, and that will navigate

1030
00:59:31,240 --> 00:59:35,320
Speaker 2: them to the site. They come on and they apply.

1031
00:59:35,560 --> 00:59:38,640
Speaker 2: They're usually screened within just a couple of minutes where

1032
00:59:38,840 --> 00:59:43,600
Speaker 2: we're looking at again that criminal background screening, their income verification,

1033
00:59:43,840 --> 00:59:46,760
Speaker 2: and then they have identity verification where you take a

1034
00:59:46,840 --> 00:59:49,800
Speaker 2: picture of yourself holding your ID and so there's a

1035
00:59:49,880 --> 00:59:51,880
Speaker 2: biometric scan that takes place to make sure you are

1036
00:59:51,960 --> 00:59:55,000
Speaker 2: who you say you are. They go to book a room,

1037
00:59:55,320 --> 00:59:57,880
Speaker 2: which they'll see on the site or in the app.

1038
00:59:58,440 --> 01:00:01,840
Speaker 2: They click on that room. In some cases is a

1039
01:00:01,920 --> 01:00:05,000
Speaker 2: picture of a room. Oh yeah, yeah, picture. A lot

1040
01:00:05,040 --> 01:00:07,120
Speaker 2: of times there's like what's called a matter port or

1041
01:00:07,280 --> 01:00:10,919
Speaker 2: a kind of a three D plan of home. It'll

1042
01:00:10,960 --> 01:00:13,640
Speaker 2: give profiles of the other residents who are renting in.

1043
01:00:13,720 --> 01:00:15,760
Speaker 4: That kidding, so you actually know who you're going to

1044
01:00:15,760 --> 01:00:16,520
Speaker 4: have a room next day?

1045
01:00:16,640 --> 01:00:19,520
Speaker 2: Yes, yea, that is so cool. Keep going and then

1046
01:00:20,000 --> 01:00:22,560
Speaker 2: so they'll book that room. In some cases, hosts will

1047
01:00:22,720 --> 01:00:26,400
Speaker 2: auto approve, so as soon as you book, you will

1048
01:00:26,440 --> 01:00:28,840
Speaker 2: be given an access code to get into that property,

1049
01:00:28,880 --> 01:00:32,560
Speaker 2: so there are no showings upfront, and that's important because

1050
01:00:32,600 --> 01:00:34,680
Speaker 2: it makes the process just go so much faster.

1051
01:00:36,040 --> 01:00:38,800
Speaker 3: But in some cases the hosts it's a week.

1052
01:00:38,800 --> 01:00:39,960
Speaker 4: If you don't like it, you can move.

1053
01:00:40,160 --> 01:00:42,680
Speaker 3: Yeah, well they can. They can move right away if

1054
01:00:42,680 --> 01:00:43,560
Speaker 3: they move in payment.

1055
01:00:44,240 --> 01:00:46,800
Speaker 2: No, if they move in and they and like, let's

1056
01:00:46,800 --> 01:00:49,360
Speaker 2: say the photos on the site don't look like the

1057
01:00:50,040 --> 01:00:53,000
Speaker 2: house or it's dirty or something, they'll get an automatic

1058
01:00:53,080 --> 01:00:56,360
Speaker 2: free transfer right away to book any other room on

1059
01:00:56,400 --> 01:01:00,320
Speaker 2: the platform, which is huge because it's economic mobility, even

1060
01:01:00,360 --> 01:01:04,480
Speaker 2: for folks that are making fifteen grand a year. But

1061
01:01:04,640 --> 01:01:07,919
Speaker 2: some hosts will have additional screening where like, if someone

1062
01:01:08,000 --> 01:01:09,680
Speaker 2: moves into your house, you want to make sure that

1063
01:01:10,640 --> 01:01:13,480
Speaker 2: you're compatible with that individual. So sometimes they'll do like

1064
01:01:13,480 --> 01:01:17,640
Speaker 2: an interview, or they'll run additional screening on their own.

1065
01:01:17,760 --> 01:01:20,240
Speaker 2: So hosts have that choice if they want to check

1066
01:01:20,280 --> 01:01:24,320
Speaker 2: that box to run additional screening, But the end process

1067
01:01:24,400 --> 01:01:26,760
Speaker 2: is still the same for when they go to move in.

1068
01:01:28,000 --> 01:01:31,640
Speaker 2: They have through the app, the ability to submit maintenance

1069
01:01:31,680 --> 01:01:35,040
Speaker 2: tickets or communicate with their hosts, communicate with other members

1070
01:01:35,080 --> 01:01:38,959
Speaker 2: of the home just say hi, my name's Genium coming

1071
01:01:39,040 --> 01:01:44,240
Speaker 2: in and here's who I am so like some houses

1072
01:01:44,520 --> 01:01:47,640
Speaker 2: like organically will kind of build their own little communities.

1073
01:01:48,040 --> 01:01:51,160
Speaker 2: Others are just each room is like its own apartment,

1074
01:01:51,400 --> 01:01:56,440
Speaker 2: and they want safe, clean, quiet, and the house is

1075
01:01:56,800 --> 01:01:59,320
Speaker 2: dead quiet, right because everybody's just kind of in their

1076
01:01:59,400 --> 01:02:03,440
Speaker 2: room as it's their own little home. When they go

1077
01:02:03,560 --> 01:02:06,439
Speaker 2: to apply, they pay nineteen dollars for the application fee.

1078
01:02:07,360 --> 01:02:10,240
Speaker 2: Move and fees range between zero dollars to about two

1079
01:02:10,320 --> 01:02:14,000
Speaker 2: hundred dollars. The average is around eighty one, and that

1080
01:02:14,400 --> 01:02:17,440
Speaker 2: covers the cost of turning that room from whoever the

1081
01:02:17,520 --> 01:02:20,080
Speaker 2: last person was that occupied. There are no deposits, there

1082
01:02:20,080 --> 01:02:23,920
Speaker 2: are no minimum credit scores. They move into this room.

1083
01:02:24,000 --> 01:02:28,280
Speaker 2: It's fully furnished, all utilities are included. We provide access

1084
01:02:28,320 --> 01:02:31,160
Speaker 2: to tele medicine as well, talking about the importance of

1085
01:02:31,320 --> 01:02:35,640
Speaker 2: just the available availability of medical care, so that if

1086
01:02:35,680 --> 01:02:38,800
Speaker 2: they end up in the er for some reason, we

1087
01:02:38,960 --> 01:02:41,120
Speaker 2: know that that has a significant impact on their ability

1088
01:02:41,120 --> 01:02:44,880
Speaker 2: to stay and pay rent and remain employed. So access

1089
01:02:44,920 --> 01:02:48,000
Speaker 2: to tele medicine is one of the benefits. And then

1090
01:02:49,320 --> 01:02:51,000
Speaker 2: they can stay for as long as they want. So

1091
01:02:52,000 --> 01:02:55,280
Speaker 2: minimum contract term is twelve weeks. They can pay one

1092
01:02:55,360 --> 01:02:58,160
Speaker 2: hundred and seventy five if they need more flexibility. But

1093
01:02:58,240 --> 01:03:01,320
Speaker 2: they have the ability to transfer for free the first

1094
01:03:01,360 --> 01:03:03,800
Speaker 2: time to any unit on the platform, and after that

1095
01:03:03,880 --> 01:03:06,840
Speaker 2: it's an average of eighty one dollars to transfer, whether

1096
01:03:06,920 --> 01:03:11,560
Speaker 2: it's across town or across the country. They pay when

1097
01:03:11,600 --> 01:03:14,000
Speaker 2: they get paid in most cases, so weekly or if

1098
01:03:14,000 --> 01:03:15,360
Speaker 2: you get paid every second Tuesday.

1099
01:03:15,880 --> 01:03:16,800
Speaker 3: So as I mentioned, it's just.

1100
01:03:17,320 --> 01:03:20,080
Speaker 2: Far easier to remember that today is Tuesday than it

1101
01:03:20,240 --> 01:03:22,360
Speaker 2: is like what day of the week is November first,

1102
01:03:23,000 --> 01:03:27,960
Speaker 2: So people can budget much easier. And yeah, in most cases,

1103
01:03:29,400 --> 01:03:33,960
Speaker 2: people are just trying to save for their next thing, right.

1104
01:03:34,040 --> 01:03:36,560
Speaker 2: Sometimes it's starting a business, sometimes it's an apartment, sometimes

1105
01:03:36,600 --> 01:03:37,240
Speaker 2: it's a car or.

1106
01:03:37,200 --> 01:03:37,800
Speaker 3: Buying a house.

1107
01:03:39,000 --> 01:03:41,000
Speaker 2: But you have about fifteen to twenty five percent of

1108
01:03:41,040 --> 01:03:44,360
Speaker 2: people like Linda who I mentioned earlier, who just will

1109
01:03:44,400 --> 01:03:49,720
Speaker 2: stay forever and they're not necessarily going to make a

1110
01:03:49,760 --> 01:03:53,080
Speaker 2: lot of money later in their lives and they're kind

1111
01:03:53,080 --> 01:03:57,080
Speaker 2: of capped on income and this is just a respectable

1112
01:03:57,120 --> 01:04:01,360
Speaker 2: place for them to be for as long as as

1113
01:04:01,400 --> 01:04:02,360
Speaker 2: long as they want to stay there.

1114
01:04:02,800 --> 01:04:07,160
Speaker 4: I love it. We'll be right back.

1115
01:04:20,080 --> 01:04:23,480
Speaker 1: So I thought it wasn't the prop, but I think

1116
01:04:23,560 --> 01:04:28,040
Speaker 1: I looked it up, but it was where the city's

1117
01:04:28,240 --> 01:04:30,880
Speaker 1: pad split is now in and only five or six

1118
01:04:31,000 --> 01:04:38,240
Speaker 1: years and oh there it is Atlanta, Austin, Baltimore, Charlotte, Dallas, Denver, Houston, Jackson,

1119
01:04:38,400 --> 01:04:44,920
Speaker 1: Kansas City, Vegas, LA, Miami, New Orleans, Orlando, Philly, Phoenix, Riley, Richmond, Tampa, Washington.

1120
01:04:45,320 --> 01:04:46,240
Speaker 3: You're going to read in a while.

1121
01:04:46,600 --> 01:04:49,080
Speaker 1: Yeah, And it just says find a room and then

1122
01:04:49,120 --> 01:04:52,920
Speaker 1: you click on it in Washington, d C. One hundred

1123
01:04:52,920 --> 01:04:55,760
Speaker 1: and seventy seven bucks a week. Trust me, you ain't

1124
01:04:55,800 --> 01:04:58,480
Speaker 1: finding nothing in Washington, D C. For anywhere close to that.

1125
01:04:58,760 --> 01:05:01,320
Speaker 1: My kid, two of my kids live there, and that's ridiculous.

1126
01:05:01,440 --> 01:05:04,560
Speaker 1: And I look at these and some of these are

1127
01:05:04,680 --> 01:05:09,800
Speaker 1: really really nice. Yeah, I mean that's nice.

1128
01:05:09,920 --> 01:05:14,160
Speaker 3: Yeah, And so we're not talking about and that's the idea.

1129
01:05:14,200 --> 01:05:18,080
Speaker 4: And that's it, and I mean the bedrooms are nice,

1130
01:05:18,200 --> 01:05:21,320
Speaker 4: and it's it's so cool.

1131
01:05:21,680 --> 01:05:22,640
Speaker 3: Well thank you. Yeah, So.

1132
01:05:24,480 --> 01:05:27,160
Speaker 4: Do you ventu yourself a little bit? It's kind of

1133
01:05:27,200 --> 01:05:27,760
Speaker 4: a big deal.

1134
01:05:30,080 --> 01:05:34,760
Speaker 2: No, I mean it's in hindsight, you think, man, like

1135
01:05:34,840 --> 01:05:37,840
Speaker 2: twenty five thousand, it's pretty cool. Like we added seventeen

1136
01:05:37,920 --> 01:05:42,040
Speaker 2: hundred units last month, So I holy smoked, I'd say

1137
01:05:42,240 --> 01:05:46,320
Speaker 2: more that speed because it took us almost two years

1138
01:05:46,360 --> 01:05:49,280
Speaker 2: to get to a thousand units, and so it's more

1139
01:05:49,360 --> 01:05:53,040
Speaker 2: that like we added five hundred and sixty in a week.

1140
01:05:53,640 --> 01:05:56,080
Speaker 2: Like that's the kind of stuff that you pinch yourself.

1141
01:05:55,760 --> 01:05:58,280
Speaker 3: About a little bit. But I mean, do you think

1142
01:05:58,280 --> 01:06:01,640
Speaker 3: you'll get to I'm planning on millions, right, I mean,

1143
01:06:01,880 --> 01:06:04,360
Speaker 3: if you want to, I do, I do?

1144
01:06:04,720 --> 01:06:04,919
Speaker 2: Yeah?

1145
01:06:05,080 --> 01:06:08,760
Speaker 4: And what will the money be saved on that number?

1146
01:06:09,360 --> 01:06:12,000
Speaker 3: I haven't done that math, but it's a lot.

1147
01:06:12,320 --> 01:06:14,800
Speaker 2: But I mean to your point earlier about like just

1148
01:06:14,920 --> 01:06:18,400
Speaker 2: the scale of the numbers, it's hard to feel the numbers.

1149
01:06:19,760 --> 01:06:22,880
Speaker 2: It's really important for me personally to go out and

1150
01:06:23,440 --> 01:06:27,520
Speaker 2: engage with members and hosts on a regular basis because

1151
01:06:27,560 --> 01:06:30,200
Speaker 2: that's where you feel it, right, Like I still remember

1152
01:06:31,240 --> 01:06:34,800
Speaker 2: the stories of Linda or Otis and Mitch and Tiffany,

1153
01:06:34,880 --> 01:06:38,080
Speaker 2: and I mean I've got thirty others that I know

1154
01:06:38,280 --> 01:06:40,200
Speaker 2: off the top of my head and many that I

1155
01:06:40,280 --> 01:06:44,600
Speaker 2: still engage with today. But like that's what makes it real, right.

1156
01:06:44,920 --> 01:06:50,280
Speaker 2: You don't you don't feel any different at twenty five

1157
01:06:50,400 --> 01:06:53,640
Speaker 2: thousand versus a thousand, right because you don't. You can't

1158
01:06:53,760 --> 01:06:55,800
Speaker 2: touch all of those you don't. You don't know or

1159
01:06:55,880 --> 01:06:59,000
Speaker 2: have a human connection to those but you you absolutely

1160
01:06:59,480 --> 01:07:02,000
Speaker 2: feel it when I read some of the reviews that

1161
01:07:02,120 --> 01:07:06,160
Speaker 2: are like, thank you, I left a domestic violent situation

1162
01:07:06,560 --> 01:07:10,600
Speaker 2: and this absolutely changed my life, or I was living

1163
01:07:10,640 --> 01:07:13,800
Speaker 2: in my car. One of my favorite stories is this

1164
01:07:13,920 --> 01:07:17,440
Speaker 2: woman Amber, who her she was living with her grandfather

1165
01:07:17,480 --> 01:07:20,160
Speaker 2: and he passed away and they lost the house, so

1166
01:07:20,240 --> 01:07:22,800
Speaker 2: she was living out of her car when she took

1167
01:07:22,840 --> 01:07:24,600
Speaker 2: a shower at a friend's place who told her about

1168
01:07:24,640 --> 01:07:28,280
Speaker 2: pad split. She moves into a pad suplit that week

1169
01:07:28,560 --> 01:07:31,920
Speaker 2: from staying in her car, starts cleaning the property. The

1170
01:07:32,000 --> 01:07:35,080
Speaker 2: host notices and hires her to clean the property, and

1171
01:07:35,160 --> 01:07:36,720
Speaker 2: then and then hires her to clean the rest of

1172
01:07:36,800 --> 01:07:41,000
Speaker 2: her properties. Amber builds her own cleaning business over the

1173
01:07:41,080 --> 01:07:43,520
Speaker 2: next four years. Now has a place of her own

1174
01:07:43,640 --> 01:07:45,680
Speaker 2: and her dream is to own a pad split. Like

1175
01:07:46,360 --> 01:07:49,240
Speaker 2: those are the kind of things that make you pinch yourself.

1176
01:07:51,560 --> 01:07:52,440
Speaker 2: I mean, it's amazing.

1177
01:07:52,680 --> 01:07:56,960
Speaker 1: She was literally homeless, right, and it doesn't mean she

1178
01:07:57,160 --> 01:07:59,880
Speaker 1: was a failure because she was homeless, I mean.

1179
01:08:01,440 --> 01:08:02,520
Speaker 4: Right out of options.

1180
01:08:03,360 --> 01:08:04,439
Speaker 3: Absolutely yeah.

1181
01:08:04,440 --> 01:08:07,240
Speaker 2: I mean one of the things that I heard from

1182
01:08:07,280 --> 01:08:13,800
Speaker 2: a very early employee, this guy Juwan, told me, no

1183
01:08:13,880 --> 01:08:19,200
Speaker 2: one wants your pity, They want a shot and I mean,

1184
01:08:19,280 --> 01:08:21,559
Speaker 2: that just hit me like a ton of bricks, where

1185
01:08:22,960 --> 01:08:25,360
Speaker 2: I think it's easy to kind of fall into this

1186
01:08:25,479 --> 01:08:28,519
Speaker 2: trap of feeling sorry for yourself or for other people,

1187
01:08:30,200 --> 01:08:34,200
Speaker 2: but for I mean, I think if we all kind

1188
01:08:34,240 --> 01:08:38,560
Speaker 2: of dig deep within ourselves, what you realize is you

1189
01:08:38,920 --> 01:08:42,320
Speaker 2: just want to create a better life for yourself, Like

1190
01:08:42,400 --> 01:08:48,400
Speaker 2: you have some goal, and if you know that there's

1191
01:08:48,479 --> 01:08:51,519
Speaker 2: a path towards that goal, it makes it a lot

1192
01:08:51,640 --> 01:08:54,760
Speaker 2: easier to deal with all of the struggles and just

1193
01:08:54,960 --> 01:08:56,200
Speaker 2: junks that you've got to put up with.

1194
01:08:57,800 --> 01:08:59,679
Speaker 3: And I feel.

1195
01:08:59,479 --> 01:09:06,080
Speaker 2: Privileged that I've had enough of the struggles to know

1196
01:09:06,320 --> 01:09:09,720
Speaker 2: like you can create your own path and that you

1197
01:09:09,800 --> 01:09:15,000
Speaker 2: can visualize success however you define it and just scratch

1198
01:09:15,080 --> 01:09:16,720
Speaker 2: and claw your way to get there.

1199
01:09:16,760 --> 01:09:17,920
Speaker 3: If you refuse to quit.

1200
01:09:18,360 --> 01:09:22,200
Speaker 1: What happens if we have millions of people with access

1201
01:09:22,280 --> 01:09:25,080
Speaker 1: to that path, engaging in that path, engaging in their

1202
01:09:25,120 --> 01:09:27,160
Speaker 1: communities across our country.

1203
01:09:28,400 --> 01:09:32,120
Speaker 4: You win. You win, We do win. We do win.

1204
01:09:34,439 --> 01:09:36,519
Speaker 1: That's the whole idea behind the show you're on now,

1205
01:09:36,920 --> 01:09:43,720
Speaker 1: is that whole approach and idea that's the man I

1206
01:09:43,960 --> 01:09:45,760
Speaker 1: know there's going to be people that want to hear

1207
01:09:45,920 --> 01:09:52,160
Speaker 1: more and possibly people that want to talk talk with

1208
01:09:52,360 --> 01:09:55,160
Speaker 1: you more. And most of our guests leave a way

1209
01:09:55,320 --> 01:09:57,400
Speaker 1: to find So how do we find you?

1210
01:09:57,560 --> 01:09:59,600
Speaker 4: Where do we find you? What's what do we do?

1211
01:09:59,760 --> 01:10:03,280
Speaker 2: Yeah, A couple couple ways. Uh one, I'm pretty active

1212
01:10:03,360 --> 01:10:06,439
Speaker 2: on LinkedIn. OK so that's that's an easy way to

1213
01:10:07,080 --> 01:10:07,960
Speaker 2: at least follow or.

1214
01:10:09,439 --> 01:10:09,839
Speaker 4: LinkedIn.

1215
01:10:10,080 --> 01:10:10,360
Speaker 3: That's it.

1216
01:10:10,560 --> 01:10:15,560
Speaker 4: Got it everybody, It's L little E capital B L

1217
01:10:15,640 --> 01:10:19,320
Speaker 4: A n C. Got to be French Cajun, Yes, Cajun,

1218
01:10:19,479 --> 01:10:22,280
Speaker 4: that's right, New Orleans of course, duh sure.

1219
01:10:22,840 --> 01:10:25,040
Speaker 2: And then uh, if you want to become a host,

1220
01:10:25,360 --> 01:10:28,919
Speaker 2: go to PadSplit dot com slash hosts. That's the fastest,

1221
01:10:29,040 --> 01:10:31,240
Speaker 2: easiest way. And then if you want to talk to

1222
01:10:31,320 --> 01:10:34,080
Speaker 2: me personally about anything, you can reach me through LinkedIn

1223
01:10:34,240 --> 01:10:36,479
Speaker 2: or just email me at Atticus at PadSplit dot com.

1224
01:10:37,000 --> 01:10:39,680
Speaker 4: Lovely. And if you're listening to us and you want

1225
01:10:39,720 --> 01:10:40,560
Speaker 4: to be a member.

1226
01:10:41,320 --> 01:10:43,400
Speaker 2: Uh yeah, just go to PadSplit dot com. It's easy,

1227
01:10:44,000 --> 01:10:46,400
Speaker 2: and we we try to make that part as easy

1228
01:10:46,520 --> 01:10:47,120
Speaker 2: as possible.

1229
01:10:47,160 --> 01:10:50,120
Speaker 1: If you're a security guard sitting around listening and tired

1230
01:10:50,160 --> 01:10:55,879
Speaker 1: of living in a a rent by the weekly motel, thing.

1231
01:10:56,040 --> 01:10:58,760
Speaker 4: Like Crystal No what was her name?

1232
01:10:58,800 --> 01:11:04,439
Speaker 1: Tiffany Tiffany, Like Tiffany, you can go do it right now,

1233
01:11:05,600 --> 01:11:10,519
Speaker 1: thanks for sharing that. You know, earlier we were talking

1234
01:11:10,520 --> 01:11:15,200
Speaker 1: about Airbnb and and all of that, and do you

1235
01:11:15,280 --> 01:11:17,680
Speaker 1: know how many how many of those things are there

1236
01:11:17,680 --> 01:11:20,520
Speaker 1: in the United States as properties?

1237
01:11:20,600 --> 01:11:20,840
Speaker 4: Do you know?

1238
01:11:22,000 --> 01:11:22,080
Speaker 2: Now?

1239
01:11:22,160 --> 01:11:24,519
Speaker 3: I think the number is like two million.

1240
01:11:25,360 --> 01:11:28,320
Speaker 1: I think that's right. I think it's it's it's up there.

1241
01:11:28,400 --> 01:11:33,160
Speaker 1: It's a big number. And you can't help but wonder

1242
01:11:33,200 --> 01:11:37,280
Speaker 1: if the market's getting saturated there. And I mean, if

1243
01:11:37,360 --> 01:11:42,479
Speaker 1: I had an Airbnb, I'm if it was the right area,

1244
01:11:42,600 --> 01:11:45,640
Speaker 1: neighborhood and the laws and all that, I would absolutely

1245
01:11:45,760 --> 01:11:51,240
Speaker 1: be thinking about converting those properties to pad splits.

1246
01:11:51,320 --> 01:11:54,280
Speaker 4: And do you have people doing that now?

1247
01:11:54,520 --> 01:11:55,320
Speaker 3: Yeah, yeah, we have.

1248
01:11:55,439 --> 01:11:55,920
Speaker 4: We have a lot.

1249
01:11:56,040 --> 01:11:58,640
Speaker 2: Actually, you know, we're never going to compete on like

1250
01:11:58,760 --> 01:12:03,800
Speaker 2: beachfront property on Golf Coast. But if you're if you're

1251
01:12:03,880 --> 01:12:07,599
Speaker 2: in Atlanta or just in town and in most metro areas,

1252
01:12:07,880 --> 01:12:09,720
Speaker 2: it can absolutely be an option. Or if you're in

1253
01:12:09,920 --> 01:12:12,200
Speaker 2: like a beach town like Deston, but you're not on

1254
01:12:12,400 --> 01:12:16,920
Speaker 2: the beach, uh, you can absolutely have scenarios where you're

1255
01:12:17,120 --> 01:12:20,559
Speaker 2: you're making more net operating and come through a pad split.

1256
01:12:20,400 --> 01:12:23,679
Speaker 4: Model than through owns that have become hosts.

1257
01:12:23,720 --> 01:12:25,680
Speaker 2: Oh, yes, yeah, many, it's I mean, it's one of

1258
01:12:25,760 --> 01:12:28,559
Speaker 2: our major channels of growth right now, as people who

1259
01:12:28,600 --> 01:12:29,600
Speaker 2: are converting.

1260
01:12:29,360 --> 01:12:32,240
Speaker 3: From short term rentals to this model.

1261
01:12:32,040 --> 01:12:35,000
Speaker 2: In part because of regulation and in part because to

1262
01:12:35,080 --> 01:12:39,559
Speaker 2: your point around just market saturation generally, and also because

1263
01:12:39,560 --> 01:12:42,519
Speaker 2: people realize that this has become a full time job

1264
01:12:42,600 --> 01:12:44,800
Speaker 2: for them and they're spending a lot more time than

1265
01:12:44,840 --> 01:12:49,680
Speaker 2: they thought they would with short term rentals where they

1266
01:12:49,800 --> 01:12:52,840
Speaker 2: have to go clean the rooms or change the bedding

1267
01:12:52,880 --> 01:12:56,360
Speaker 2: or whatever every two or three days, which is way

1268
01:12:56,479 --> 01:12:59,360
Speaker 2: more intensive. And I'd say pad split, like from a

1269
01:12:59,479 --> 01:13:04,160
Speaker 2: from a war standpoint, sits somewhere between a single family

1270
01:13:04,240 --> 01:13:09,160
Speaker 2: rental which you probably almost never go to, versus a

1271
01:13:09,240 --> 01:13:13,720
Speaker 2: short term rental where you're there very very regularly. But yeah,

1272
01:13:13,760 --> 01:13:18,240
Speaker 2: we have folks who've absolutely converted well pragmatically.

1273
01:13:18,560 --> 01:13:23,080
Speaker 1: The numbers seem to make better sense at pad split

1274
01:13:23,720 --> 01:13:26,920
Speaker 1: for an owner of a property than yeah does so.

1275
01:13:27,720 --> 01:13:29,719
Speaker 1: Imagine a lot of people were just doing it because

1276
01:13:29,760 --> 01:13:30,560
Speaker 1: the money's.

1277
01:13:30,240 --> 01:13:34,519
Speaker 2: Better, no question. Yeah, I mean, and it was true

1278
01:13:34,560 --> 01:13:37,320
Speaker 2: in my own life, right. I mean, where I think, first,

1279
01:13:37,520 --> 01:13:43,360
Speaker 2: as you look at the scale and scope of mom

1280
01:13:43,439 --> 01:13:46,160
Speaker 2: and pop real estate investors, and that's almost entirely who

1281
01:13:46,200 --> 01:13:48,439
Speaker 2: we're talking about. You know, folks talk about like the

1282
01:13:48,520 --> 01:13:50,960
Speaker 2: big private equity and social buyers, Like we don't have

1283
01:13:51,120 --> 01:13:53,920
Speaker 2: any of those people, right because this is too far

1284
01:13:54,080 --> 01:13:56,240
Speaker 2: flung for those groups, and it's the same reason they

1285
01:13:56,280 --> 01:14:00,320
Speaker 2: don't invest in airbnbs in most cases. But but what

1286
01:14:00,520 --> 01:14:02,760
Speaker 2: those people are looking for, and what I imagine all

1287
01:14:02,800 --> 01:14:05,760
Speaker 2: your listeners are looking for, is like financial stability. And

1288
01:14:05,920 --> 01:14:09,200
Speaker 2: for me, when I started in this world as an entrepreneur,

1289
01:14:09,560 --> 01:14:11,840
Speaker 2: like I was trying to provide for my family like

1290
01:14:11,960 --> 01:14:16,920
Speaker 2: that that was first foremost my priority. Now I absolutely

1291
01:14:17,040 --> 01:14:21,280
Speaker 2: became much more passionate after I felt like I had

1292
01:14:21,360 --> 01:14:24,439
Speaker 2: my bases covered for caring for my family and I

1293
01:14:24,520 --> 01:14:27,599
Speaker 2: could see the impact that I could have on people's

1294
01:14:27,680 --> 01:14:30,679
Speaker 2: lives like a Tiffany or a match Erland or whomever.

1295
01:14:32,240 --> 01:14:34,479
Speaker 2: And I see that same conversion. And that's something else

1296
01:14:34,560 --> 01:14:38,000
Speaker 2: I get really excited about is our hosts. Absolutely, they

1297
01:14:38,040 --> 01:14:43,479
Speaker 2: are drawn because of the financial potential of this model

1298
01:14:43,560 --> 01:14:47,960
Speaker 2: and their ability to build passive income for themselves, whether

1299
01:14:47,960 --> 01:14:49,519
Speaker 2: it's because they want to leave their job or they

1300
01:14:49,560 --> 01:14:51,479
Speaker 2: want to retire, pay for the kids college or whatever.

1301
01:14:51,920 --> 01:14:56,080
Speaker 2: They come for the income, but they stay for the

1302
01:14:56,160 --> 01:15:01,320
Speaker 2: impact because as soon as they have experienced changing someone's

1303
01:15:01,400 --> 01:15:04,760
Speaker 2: life like Amber, where she was homeless and now she's

1304
01:15:04,840 --> 01:15:09,800
Speaker 2: a business owner who's doing this on her own, that

1305
01:15:10,120 --> 01:15:13,960
Speaker 2: is something that is highly addictive, and it's something that

1306
01:15:14,880 --> 01:15:16,960
Speaker 2: that's the kind of addiction that I want to see

1307
01:15:17,000 --> 01:15:20,360
Speaker 2: spread throughout the United States. Right if you can, if

1308
01:15:20,400 --> 01:15:23,240
Speaker 2: you can get a taste of changing someone's life for

1309
01:15:23,280 --> 01:15:27,320
Speaker 2: the better, then that's something that we should absolutely try

1310
01:15:27,360 --> 01:15:27,719
Speaker 2: to spread.

1311
01:15:28,640 --> 01:15:28,960
Speaker 4: Love it.

1312
01:15:30,520 --> 01:15:36,080
Speaker 1: Atticus LeBlanc, founder and CEO of pad Split from Atlanta, Georgia,

1313
01:15:36,439 --> 01:15:39,240
Speaker 1: and just one of the coolest story.

1314
01:15:39,280 --> 01:15:41,839
Speaker 4: You didn't disappoint. I told you I was really excited

1315
01:15:41,840 --> 01:15:43,280
Speaker 4: about this one. Well it was.

1316
01:15:44,640 --> 01:15:50,080
Speaker 1: And dude, thanks for flying over and visiting with us

1317
01:15:50,120 --> 01:15:52,680
Speaker 1: and sharing the story with our listeners. I know that

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01:15:53,000 --> 01:15:55,280
Speaker 1: people are going to be like jazzed up about this

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01:15:55,439 --> 01:15:58,280
Speaker 1: when I hear it. I'm jazzed up about it. I

1320
01:15:58,520 --> 01:16:00,439
Speaker 1: really do want to talk to you offline a little

1321
01:16:00,439 --> 01:16:05,080
Speaker 1: bit about you know, there's time and bandwidth in one

1322
01:16:05,160 --> 01:16:08,840
Speaker 1: man's life, but I know people in the real estate

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01:16:08,920 --> 01:16:11,640
Speaker 1: business and I got to get them engaged in this

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01:16:11,840 --> 01:16:13,680
Speaker 1: thing because I think this could help a lot of

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01:16:13,720 --> 01:16:14,799
Speaker 1: folks in my hometown.

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Speaker 2: I hope so, and I believe it, but really appreciate

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01:16:18,400 --> 01:16:21,360
Speaker 2: the opportunity. It's been an honor to be here. And yeah,

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Speaker 2: I'm a firm believer in the army of normal folks

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01:16:25,600 --> 01:16:27,559
Speaker 2: and just everyone has.

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01:16:27,560 --> 01:16:30,560
Speaker 3: Capacity to be the change can be.

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01:16:30,880 --> 01:16:31,760
Speaker 4: Thanks for being with us.

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01:16:31,880 --> 01:16:32,640
Speaker 3: Absolutely, thank you.

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01:16:37,320 --> 01:16:39,439
Speaker 4: And thank you for joining us this week.

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01:16:39,800 --> 01:16:43,599
Speaker 1: If Atticus LeBlanc has inspired you in general, or better yet,

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01:16:43,800 --> 01:16:47,559
Speaker 1: to take action by renting from pad split, listing your

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01:16:47,600 --> 01:16:51,040
Speaker 1: property on there, sharing this episodes with friends who have

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01:16:51,160 --> 01:16:54,639
Speaker 1: extra bedrooms or investment properties that could find their model

1338
01:16:54,680 --> 01:16:58,320
Speaker 1: of interest, or something else entirely, please let me know

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01:16:58,920 --> 01:17:00,880
Speaker 1: I'd really like to hear about it. You can write

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01:17:00,960 --> 01:17:05,040
Speaker 1: me anytime at Bill at normal folks dot us. And

1341
01:17:05,200 --> 01:17:07,679
Speaker 1: if you enjoyed this episode, please share it with friends

1342
01:17:07,720 --> 01:17:12,040
Speaker 1: and on social subscribe to the podcast, rate it, review it,

1343
01:17:12,680 --> 01:17:16,200
Speaker 1: join the army at normalfolks dot us. All of these

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01:17:16,320 --> 01:17:20,000
Speaker 1: things that can help us grow an army of normal folks.

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01:17:20,160 --> 01:17:23,200
Speaker 1: I'm Bill Courtney. Until next time, do it.

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01:17:23,360 --> 01:17:23,640
Speaker 2: You can