YOUR DAILY REAL ESTATE INVESTMENT SHOW
July 5, 2022

Tropical Paradise, Real Estate, And Hotel Conversions with Becca Hintergardt

Tropical Paradise, Real Estate, And Hotel Conversions with Becca Hintergardt

In the 78th episode of Cash Flow Pro, we talk with Becca Hintergardt, multi-family investor and author of Hint Investments. Her goal is to use her 20-year knowledge and experience to help investors have high returns and take advantage of tax benefits....


In the 78th episode of Cash Flow Pro, we talk with Becca Hintergardt, multi-family investor and author of Hint Investments. Her goal is to use her 20-year knowledge and experience to help investors have high returns and take advantage of tax benefits. Becca went from a medical device rep for a Fortune 500 company to living the dream in Costa Rica thanks to her passive income from all her real estate properties. Becca will talk to us about moving to a new country, how to benefit from your properties while abroad, and the landmines we should be aware of when doing hotel conversions!

 

In this episode, we discuss:

  • Creating tax-deductible opportunities from your own home
  • The real estate market in Costa Rica
  • Hotel conversion

 

Tune in on this episode to find out more about moving to a new country and having your real estate income be your resource!

 

Find your flow,

Casey Brown

 

Resources mentioned in this podcast:

  1. hintinvestments.com
  2. https://www.linkedin.com/in/becca-hint-hintergardt-020a82204/
Transcript

Casey Brown  0:06  
Hey there, and welcome to today's episode of cash flow Pro, your daily real estate investing podcast and YouTube channel. I'm here today with Becca hint of hint investments.com. And I'm going to tell you, you are in for a special treat because Becca is currently in or is currently doing what many of us, I guess at least the people of us that have vision, hope to do someday or want to do every day, it seems like and that is, Hey, pick up, move to a tropical destination and say, Hey, kids, this is the new house. This is the new home. This is where we're at. This is where we're staying and settle in now. Becca and her husband and kids, right, two kids, right?

Unknown Speaker  0:56  
That's right, two kids.

Casey Brown  0:58  
And moved. We'll talk a little bit about that. Well, we'll get we'll dive deep into exactly what led to that what started that I know COVID played played a role. I know there was a lot of different things that happened and everything just kind of the stars aligned. And here you are. So Becca, welcome today. How are you?

Unknown Speaker  1:14  
I'm great. Casey, thank you so much for having me on your show. It's a pleasure.

Casey Brown  1:19  
Absolutely. We're always glad to meet up with you and hear your stories and hear where you came from. I know I can say that, because we've talked before, not necessarily on the show. But we've talked and I've learned a lot about where you come from what you've got going on. And so tell us a little bit about the beginnings of what kind of life led you to do what you've done. And then let's talk into we'll talk hotel conversions and the other stuff.

Unknown Speaker  1:48  
That sounds great. And I'm the only one coming to you with a real tropical background. No virtual is real.

Casey Brown  1:53  
That is not Yeah, that is not presumed.

Unknown Speaker  1:57  
I've got the mango trees behind me and the monkeys come around in a couple hours. So hopefully we'll get us a glimpse of them. But yes, it's been such a journey, Casey. And it's just been so wonderful. Basically, back in August, my family and I, my husband and my two kids age 11 and 12. So fifth and sixth grade, we just were from the San Francisco Bay Area, my husband and I were medical device reps. And we said, hey, let's be part of this great resignation. Let's get out of here. Let's leave this whole thing behind. Move to a place where everything is new, put our life on autopilot, put our passive income, rather our income on autopilot. And let's try to go live in the tropics. And what this has ended up in is we left it all behind. And we're here in Costa Rica, living off passive income from real estate 80%, subsidized by passive income from real estate. We live in one of the blue zones of the world. So are you familiar with this the Blue Zones?

Casey Brown  3:07  
I'm not? I'm not and I doubt the listeners are either. Maybe they are go ahead and tell

Unknown Speaker  3:12  
us all right, well, go ahead. Well, basically, we're in Nosara, Costa Rica, it's a boutique surfing yoga hub in the guano cost a province of Costa Rica. So this is the Pacific side. One a cost day itself is one of the six blue zones of the world. And a blue zone is where there's many books on it, there's movies on it, you need only Google it and a ton of things will come up. And it's essentially where there's the highest concentration of centenarians in the world. These are people that live to 100 years and beyond in very good health. And it's a product of a little bit of the biome of the place as in the tropics here. But more so it's the the healthy lifestyle, and the food, the water, and many different things they profile to be part of Blue Zones. Okinawa, Japan is another one saying there's, there's a number of men, and I tell you, it's it's very true. It's been a tremendous difference in my husband's health, that we realized many of just, you know, medications he was on. We're a product of stress. And you know, it's kind of a whack a mole when you go to Western medicine and they say, Oh, you have allergies. You have gluten allergies, you have allergies to all these random things. Here's some medication, here's some, you know, asthma inhalers and something doesn't make any sense. We got here in two to three weeks all that's gone. Oh Ma, so it's a real very real thing Blue Zones. And then the elimination of stress is a huge part of

Casey Brown  4:42  
Australia. I've been right where you're sitting what not right where you're sitting right now but I've been to to go on a call stay in and stayed down there and I can I can vouch for the losing of the stress part. Simply by if by nothing else. The views and the the almost the bay that it sits in is poor. It's honestly probably one of the most beautiful places I've ever seen. And then the fact that you can turn around and drive five miles behind you and be sitting basically in a jungle and eating black beans and maize that's been hand crushed. I mean our hand ground.

Unknown Speaker  5:31  
Yeah, you got it. You got it. Exactly.

Casey Brown  5:34  
It's a fabulous place. It's Yes, it's most definitely. So obviously now now you're you're enjoying life at this point, it seems like and the passive income I want to dig in just a little bit on. So the passive income. Tell us a little bit about that and how you were able to situate that before you left and then kind of go from there. You bet. Yes.

Unknown Speaker  6:02  
My my two favorite subjects travel and passive income. Love it. Yeah, basically, this, this is a lot of things stitched together. Which is, which is great, because I think your listeners need to know this that we don't, we're not people that have it all figured out. We're not big shots out there. And you know, the multifamily space, we stitched many of our passive income deals together and then put our home as a passive income. So for one, I have a couple LP deals. As a limited partner, I've invested in multifamily syndications. And that's about 450 units there. So then we have a little bit of income off that I have a building in San Francisco I've had for 18 years that I house hacked when I was single, and a medical device wrap back then and and that's a good appreciation play. I like these markets, like New York, San Francisco, Chicago, these deals that really don't make sense scratched out in cash flow, but they're good kind of Rip Van Winkle investments who just set and forget them and you know, make make a million bucks in 10 years on appreciation. If you fall asleep for 10 years, and you wake up and you made a million bucks.

Casey Brown  7:13  
That's right. That's right. That's what we're here for. That's what we that's, that's the cash flow. That's why you become a cash flow pro right there. So

Unknown Speaker  7:21  
that's right, that's the cash flow Pro. Yeah. And then you get to a point with some of those investments, you say, Well, I've got a lot of equity, let's now sell this and move it into more cash flow deals. But there's a place for these as well, you know, these equity plays the Asian equity play, and now after 18 years, it, it kicks off a decent amount of income. So we have that San Francisco building. And then we have our single family home. And a lot of people don't realize this, when you when you look at how much you're paying per day, on the home you live in, what is the value of that with the pool guy, the gardener? You know, maybe eliminate the water and the the heating if you're going to rent your home long term. But what is that? What is that price per day? And then take that price per day and say, Hey, how much can you live somewhere else on that? And we took that delta and said, Wow, we could live in Costa Rica surf every day, do yoga every day, send the kids to this amazing school and have our whole life supported on these passive income deals. Yep. From the US. In the single family home part, our primary residence rather has been a real enlightenment in you know, many of the things that you can deduct when your home becomes a rental property. We spent a year ahead of time getting this property ready redoing, you know, the bathrooms, the floors that this that and like ladies, if you want a new kitchen, here's here's your opportunity to get

Casey Brown  8:53  
it. It's the waiting game. You got to leave it though, then you got to pick it, then you got to pack up and leave.

Unknown Speaker  8:58  
That's that's the doubt. Right? That's it. Right? That's the caveat. Yep. But you know, all those things have a year ahead of time and preparing your home for a rental are deductible. And then your trips back home to check on your rental property while visiting family back home is deductible as well. Yes. So you look at things also from a tax perspective on on making a lot of these things tax deductible, meanwhile, creating passive income and then living in a place that's less expensive, and you would be amazed at the life you could scratch out with those variables in mind.

Casey Brown  9:37  
Absolutely, absolutely. And I'll tell you, the people of Costa Rica are always grateful. I mean, they are they were always grateful, at least for the tourist part of it. As far as being a permanent resident, you know, I assume now, what just real quick and this is outside of the cash flow and the capital raising and the rentals and all that stuff. But what are the visa requirements for Costa Rica? I mean, because I know some places you can only go like you can only be a resident the max six months a year or something like that. So what are those requirements? And how do you meet those? Yeah,

Unknown Speaker  10:15  
it's what most people do you do a 90 day visa run. So for the most part, when you live in a place like this, you're traveling anyway, you know, you're going to Peru because South America's three and a half hours away, and then you're going back home, and then you're leaving for the holidays. So every 90 days, you need to stamp your passport and show that you're leaving the country. There are digital nomad visas that were just approved that will allow to stay much longer,

Casey Brown  10:42  
so much longer. How what is that? A couple

Unknown Speaker  10:46  
of years? I believe? I think it's wow, I think yeah, I think

Casey Brown  10:50  
it's I think they're seeing it as an opportunity. their selves, and the Costa Ricans are very, very. They know how to use their resources to the max. And they know how to define those resources. Very quickly, I noticed that when we were there, everything from the coffee businesses all the way to the hotel businesses, they know how to capitalize capitalize at a max and capitalize when they most need to. And I bet that is typical, right? They're saying, hey, these people are all leaving, and they're coming here, we need to do something to initiate the idea that they can stay here and not. And so that's brilliant, brilliant on their part. And I guarantee, like I said, that's almost textbook Costa Rican from my experiences.

Unknown Speaker  11:42  
You know, that's a keen observation, I can tell you're well traveled to just even know that Costa Rica. Previously, their economy was coffee based. But they realize that they are one of the few countries in Central America that safe, they have no army, it's a stabilized economy. It's a democracy, you can own land here. And they have an infinite amount of natural resources in their in their water, their volcanoes. It's just a beautiful place. So because of that the whole economy has shifted to tourism. And now it's shifted to eco tourism, which is just, you know, just wonderful. Yeah. And I think

Casey Brown  12:20  
their geographical situation, because I see the only thing between them and Venezuela is Panama. Correct. Right. And so when you sit and think about their insulation, they're insulated on both sides, from a lot of that other stuff that the world kind of the the demoralization of their own citizens like Venezuela and so on. But seeing the way that we I class, I just You're right, I mean, Costa Rica is just a gym that's sitting there and a lot of people don't know it exists. So without kind of extending into the fact that I love where you're at, I love what you're doing. And and I can continue to talk about it all day long, because I

Unknown Speaker  13:05  
take it offline or whole place great places to travel in the world because I know a ton of them too.

Casey Brown  13:10  
And when I go somewhere, I tend to I tend to be the the I'm the six foot tall white guy that sticks out like a sore thumb. But I'm sitting I love breaking bread with those people where and immersing myself in their culture and doing similar to what Parker's wall did years ago and European vacation, where he accidentally showed up at somebody's house, knock on the door, went in, sat down with them, ate with him, broke bread with them, talk with them, and then get up in there like who the hell was that guy? So that's, that's the type of lifestyle that if I could live every day, I would and just I would I would probably ultimately get myself killed at some point like, because I would be somewhere trying to eat with a tribe that didn't even know whether humans existed or something. You know? Just what anyway,

Unknown Speaker  13:59  
but it's fun. Yeah, I know what you mean, because I love these cultural travel trips. I'm not one that to go stay at the Ritz Carlton, or the West. It's not us. We come here. We've been coming here for many. Well, it's our seventh visit, I would say to Costa Rica, but many people just come here their first visit by friends that just moved here. They'd never been here before. But in previous visits, we would go stay with the host family up in Turrialba by the volcano and we would live with this host family for a month that only spoke Spanish. And they live on a cacao and coffee plantation. And it was a perfect Spanish immersion for my children and I am

Casey Brown  14:40  
sure that didn't you tell me at one point you're you're wanting your kids to be fluent in Spanish by high school. Is that right? Or something along those lines? That's

Unknown Speaker  14:47  
another objective. It's been driving us the whole time too. I started in kindergarten even though I couldn't speak Spanish myself. We've been learning together so I've taken every opportunity of family vacations to immerse them in a Spanish speaking culture. And then even even we live in California. So I, I make them go translate when they speak to, you know, the gardener or anybody else. Yeah. So yeah, my goal is my goal was bilingual by seven for them. And they're at a high intermediate level of Spanish now.

Casey Brown  15:20  
Awesome. Yep. I have. I've, I've got some some workers that are from Mexico. And, and, obviously, they're real good friends of mine as well. We're all we all pick each other all the time. So the first thing that they taught me was all the curse words. So I can say I can cuss anybody that I want to in Spanish. And I don't know how to say it. But it always seems to get a laugh. But anyway, I actually do speak probably intermediate Spanish anyway. So

Unknown Speaker  15:48  
curse words, especially in the restaurant business and through college and Mexican restaurants. And that's what you start with. That's right.

Casey Brown  15:56  
That's what I started with many years ago. And, and so yeah, I'm glad to know that it's at least the way that things go. So alright, well, let's talk I want to hear just a little bit about I know that the last time we chatted you all had, there was maybe a you were looking for a lot or looking for a parcel of land, or maybe had even found where I'm trying to recall. And if it's happened more than five minutes ago, my age is getting to the point where I'm just like, I don't remember it. But I do remember something about talk of land. I want to hear a little more about the real estate experiences that you've got down there. And then I want to talk a little bit about capital raising and hotel conversion and that kind of stuff. So what about the what about the real estate down there? What's going on with that? You bet

Unknown Speaker  16:37  
on the real estate front, we are looking for lots. So we are here. There's a housing crisis here. So there is far more people looking for homes that are available. And everybody, many, many people have the same ideas. My husband and I, let's leave this us. It's just crazy. Let's leave all of this in the pandemic and come to a tropical place. As a result, there's tremendous opportunity here. And there will continue to be Costa Rica has been on the rise for expat buying homes here. And mostly the play here is to buy a lot because of the labor, there's no labor shortage. Here you have all the workers from Nicaragua coming down, and they they live on site of the property for a couple months, watch the property guard the tools built the house, you could buy a lot for 400. Build for 400. In 18 months, your projects done, and you sell for one, four. So there's been this opportunity in in flipping deals. Do that?

Casey Brown  17:41  
Why 18 months? What's the one? That That just seems? That seems I guess, when we're when we're sitting here thinking about real estate in America, and you're thinking, okay, hey, if it takes more than four months to build a house, it basically becomes not profitable. But what is it a supply thing? Because obviously, you said the labor wasn't an issue, but is it a supply thing? Or what? What's going on with that?

Unknown Speaker  18:07  
It's a supply thing? Yeah, especially where we are, we're in the jungle essentially. So you know, we're for B, and then you have to wait for permits. It's still Latin America, things don't move really quickly on the permits and legislative side. But like eight months is a good estimate for investors, you could do it. You know, I have friends that have done it in 11 months, but

Casey Brown  18:31  
I'm actually sitting here scrolling right now trying to find a message from the guy that that I met down there. And actually, when the pandemic first started, he messaged me and he said, Man, I listened. He said, I hate to do this, he said, but I don't have any other choice. But he said, Do you have some money? And I said, I was like and if I hadn't ever met him in person, it obviously would have been like, I'd have been like, alright, scam block, but I know the guy and I said okay, I said the first thing I have to do is, is make sure that that you are who you're telling me you are and from the to the degree of saying, you know, somebody hasn't hacked your account and wants me to, to do this. So I was just again, I'm sitting here looking for the, for the, for the messages that he sent me because I can't remember when that was there, but anyway, so I saw I saw I said, Alright, where did we meet? And of course he spat it off, boom, I picked you up here. I drove you here and I was like, dude, really? You remember all this stuff after after all these after like this two years ago, and he was just such a nice guy. And, and anyway, so I sent him some money. Because, you know, as bad as things were here, I could you know, basically those guys went from he drove us while we were there. We never drove anywhere. I'll drive anywhere, but we didn't drive there. And I'm not 100% sure that it would have been illegal if I would have I just remember it being a little bit.

Unknown Speaker  20:07  
Good move that roads are horrible in some place. Yeah, it was like, there's no street signs.

Casey Brown  20:12  
Yeah. And when he picked us up, I was like, Oh my gosh, thank thank goodness, that, that it that it didn't, that I didn't drive. But anyway, I can't find it. I'm gonna have to get off and get off and get back to this. But I'm in. So anyway, he named off these places, he drove us and I was like, dude, after two years, you're here. And so of course, I sent him money, and was glad to help out as luck says bad things were here in the States. They weren't anywhere near those guys were driving every day, you know, they were used to making 150 $200 a day driving people will all of a sudden that just boom stopped, like, like, they were driving people one day and the next day, March 20, or whatever they were like, go to your house, stay in your house, don't move. Yeah, pay all your bills.

Unknown Speaker  20:58  
And here's the downside of an economy based on tourism, then what happens in a pandemic, the truck, eat some passive income, right? We cinnamal Rich Dad Poor Dad book in Spanish.

Casey Brown  21:12  
That's right in Spanish, but it was waters that hadn't been tested. That was the whole thing. Like nobody in this world knew that we didn't know that a pandemic could even didn't even have the possibility of happening. Algorithms control the world everywhere. Surely, they can just program a computer make it go away. But man, it was really, I think, I think it exposed pretty much every weakness that we had in a lot of different places, or at least complacency that we had, because it had been 100 years since the last one had taken a hole. And we definitely had a complacent population that that that laid down and let it go. So

Unknown Speaker  21:51  
it was quite interesting to see how these places pivot, like Costa Rica has pivoted from coffee, to tourism. And now after this experience, I'm sure they're looking around saying we need to diversify even more, because with the rise and all of these other things that have affected tourism in the past, especially places that are more remote and harder to get to.

Casey Brown  22:12  
Yep. And I felt like they didn't have near as I felt like they didn't have near as understanding of a government as we had here. On the idea that, hey, we've told everybody to stay at home and not work because Costa Rica was like, You're gonna continue to pay your bills and, and you're not gonna leave your house, but you're gonna pay your bills. And it was just so I don't know, and I, I got an idea that they're probably not near as they're not near as easy on non Bill payers as some other places.

Unknown Speaker  22:47  
I would think they're not, but they are good at going without, and they do have a tremendous family support. So you'll have it's a culture where there's multi generations under one roof so they can

Casey Brown  23:01  
live to be over 100 years old, they're gonna be still living with you. Right? Off payroll here. There you go. Yeah, I don't know what getting off payroll consists of but So tell me, let's talk a little bit about capital raising and hotel conversions. Because I know that you know, quite a bit about both. You. Let's talk your first deal. Okay.

Unknown Speaker  23:31  
Well, let's see, um, my first deal in capital raising or my first real estate deal ever.

Casey Brown  23:38  
First deal and that you raised capital for?

Unknown Speaker  23:42  
Okay, well, that's actually goes with the hotel. And I wouldn't recommend anybody start with their first deal to raise capital for in a hotel in a tertiary market in the middle of a pandemic. Not this is not what the coaching programs are telling you to do.

Casey Brown  23:57  
If there was a coaching program anywhere that would talk to you that no

Unknown Speaker  24:01  
road coaching student you know, there you go. My life probably the reason I lived in the jungle here, but yeah, that was that was our first my and my team, our first capital raise, and it's a great deal is the good news. It's a tricky deal to raise for because of our timing. We got this deal at the big let's see, it was 2021. Now 2021, beginning when we closed and it's a it's 100 unit quality in motel that were taken down to 65 units of multifamily. Okay, and it's in a Sierra Vista, Arizona. It's going down to 31, one bedrooms, 31 Studios and a few bedrooms, and we've got this deal. This is the fun things with hotels, hotels are a lot of fun. These hotel conversions. There's so much you can do with them. But we got this too for 30 cents on the dollar, so a 70% discount.

Casey Brown  25:03  
So it's just based on what valuation

Unknown Speaker  25:08  
based on the valuation of what a multifamily would be. And it was very difficult to value it as a hotel, because it was during the pandemic, and they had your whatever it was before is not what it would be now.

Casey Brown  25:21  
Exactly. And that's what I was curious about what valuation Yeah, you can use. Yeah,

Unknown Speaker  25:28  
yeah, you got to back it up into multifamily for that one now is a little bit different. But back then, you had a year of snow. So do

Casey Brown  25:35  
you take the building, and you on paper, you, you strip everything out? And you say, this is what it would cost us to have this shell and we're buying it for 30 cents. So it would cost a million dollars to have this shell and we bought it for 300,000. Now we take our money and we turn it to multifamily. Am I right about

Unknown Speaker  26:00  
that? You got it. Sorry for the delay. A motorcycle just went by? Oh, that's fine. Yep. Everybody Writes motorcycles here motorcycles and ATVs. Yes, exactly. You're exactly right in how we did it. In hotels, there are different metrics you can use, certainly to, to analyze these. And they, there's back of the napkin approaches in which they actually look at the value of the minibar and some of these older hotels, the average valid the the value of what people spend in the minibar times a multiple divided by another multiple so that so that's one some people just depending on what they're turning them into, they'll value it based on like in our case multifamily. So it's it's a time in the market thing, though, it was a little tricky. Since we had a building that had been vacant for for a year almost, you know, this hotel industry has been hemorrhaging long before the pandemic because Airbnb has given them a real run for their money.

Casey Brown  27:04  
I think the pandemic was just kind of the nail in the coffin for a lot of marginal hotels as it was, oh, it

Unknown Speaker  27:13  
was yeah, it just sunk them. But hotel conversions are really fun, but there are some pitfalls. So anybody considering this needs to know there's some landmines to look out for. I can certainly help you with that. Should you be interested but you know, the three big things that come to mind. It's the zoning, the franchise ice, and fire. So first of all in hotels, you need to figure out can you even rezone it to multifamily? In our case, we got lucky. It's a small, little tertiary market. We could, it was just an over change of change of use over the counter. But one of our good friends he is doing one in Phoenix and the city said, Okay, we'll give you your rezoning. But it comes with strings attached. So half a million dollars to repave the road and put into fire hydrants along the way and then we'll give you your rezoning. So you

Casey Brown  28:09  
just seems to me like such an easy fine during due diligence. Unless you budget for that because you aren't Go ahead. Yeah,

Unknown Speaker  28:18  
you got to know that you got to know. And he's he kind of knew that. He said he looked at the road and said, oh boy, they're gonna ask me to fix this.

Casey Brown  28:26  
But he tried to get by and if they don't, then you're that much further Ed. Yeah, here that was it and then close your eyes for the other third and hope.

Unknown Speaker  28:36  
So hope and pray. But yeah, they came back and said just what he had underwritten for and then you have their franchise costs. So you have to buy out the franchise the quality in our days in or suites, whatever your, whatever you're buying, you got to get them out of that, that will range from 35,000 to often 200,000 You have so

Casey Brown  28:55  
they own they own rights to the property or a long term lease on the property or

Unknown Speaker  29:03  
it's a buy in into the owners. So the hotel owners need to buy themselves out. And you could it's best to push it back on them because you don't want to be in the hotel business. But that franchise must be taken care of or the deal's off. You don't want to be in the hotel business. Unless Yeah, no. And then the third theme is fire. So just the fire fire abatement is going to cost you a ton of money. It's counter intuitively, hotels are many of them don't have fire sprinklers and as a result, they don't have the, the the amount of fire hydrants that they would need. So you know ours it was 180,000 for fire sprinklers then we had to put in a fire hydrant and then you have to look at the thickness of the sheetrock on the wall. Because since they don't have kitchens, they don't worry about fire that much. It As a result, the sheetrock is a lot thinner in hotels. Yep. And so you have to pull all that out and put the sheetrock for fire abatement. So lots of lots of things there and then and then you know and then there's the kind of the fun things with hotels like if you have a two story hotel like we do well it's you know the the windows don't open on the second storey because of suicide risk and you'll get this and all these hotels so you have these floor to ceiling windows that are floor to ceiling windows that don't open so you're counter intuitively having a reframe all the windows on the second storey into smaller windows for fire egress.

Casey Brown  30:42  
Fire Well you mentioned fire even on your even on your friend's thing in in in Phoenix the fire part of having to put the fire hydrant in I mean you know because they don't again, it's just something that when you're when you just don't think about it and think about the difference in multifamily and hotel because you know, a lot of people think you just go and you take two rooms turn it into one knock wall out turn it in one and put a kitchen in there you go but but it's yeah, the sheetrock was the big deal when when we were building building multifamily is like not only does this sheet rock have to be thicker on both sides, so it creates almost a almost an inch more sheet rock between the two sides. It has to go all the way if it's a single if it's a single level like a quad Plex triplex duplex, it has to go floor to roofline, like it has to go up. It has to you have to frame overtop of the wall that separates it and that funnel. I'm sorry, it's five eighths sheet rock that has to go for two roofline. And then both sides they didn't worry about insulation you name but it had to be five eight sheet rocked with floor to roofline.

Unknown Speaker  31:55  
That's right. That's exactly right. And you would think, you know, hotels with how noisy it is, you think they'd have thicker sheet rockin in there, but they don't have thick enough for the fire protection need. A basis playing. I know, I know. I mean, there's just so we could go on and on and on. But there's there's a lot of things. But to minimize cost. It's good in going into these things to figure out where you're going to have your water hookups. In our case, we we put them on the other side of where the bathroom is. So hotels are set up in just really two basic ways when you walk in and to the left, there's the bathroom, or on the mirrored side, you're walking into the right there's the bathroom. Well as you walk into the actual bedroom part of the hotel on the other side of that bathroom wall. That's where we put our kitchens and we put efficiency kitchens in those and we're able to use all those water hookups. If one was to buy a suites hotel, it would be even better because many of them come with kitchens, so many kitchens, we have many kitchens that and that's a nice nice play. And then there's the font thing that it's like musical doors you end up with all these doors because we had 100 units and we're taking it down to 65 we have the remaining of those front doors to move around. So we have a whole one whole unit just filled with all these you know heavy security doors. Yeah feel I want to put that on your bedroom. I mean these are thick like you can't kick in these doors. Yeah, yeah. So

Casey Brown  33:29  
Wow. Well that's interesting and it's the first time I've ever really dove into a hotel conversion talk and some of those points you know are definitely worth at least addressing if somebody's considering it or considering hey maybe this is a steal based on the square footage under roof but may not be a steal if you look at the if the hotel wants a half or the company wants a half million dollars to buy out there their contract you know, there's just a lot there's a lot there to definitely watch out for you call them landmines. And and they are most definitely landmines. So

Unknown Speaker  34:06  
and they are and they are and it's a deep value add Casey you know, it's Can you your investors really neat to sit back and put on their patients hat? Yeah, cuz

Casey Brown  34:15  
you're talking to me, you're talking almost longer than a new construction because you have to take out then put back in rather than just continually put in new stuff. So well listen, we're kind of running out of time. I think we we've hit a lot of really good points here. And I think the listeners are going to get a lot of value from at least the hotel conversion part of this. And hopefully they're considering maybe a relocation to somewhere tropical theirself. And they can really learn a lot from that or even possibly reach out to you when we get to that part of the show where, where, where somebody can reach out and say, Hey, Becca, I really want to do what you're doing. But I want to go here, what do you suggest and maybe we can go from there but Before we get to that, what there's a couple of questions we ask every guest that comes on the show. And the first being, what is the best book that you have either ever read or are currently reading,

Unknown Speaker  35:12  
ah, oh my gosh, I'm a voracious reader. So this is going to be a tough one, because there's many. My previous favorite, of course, is the purple Bible, the Rich Dad, Poor Dad. That's everybody, everybody has read. But my recent favorite is who not how, and especially for those living remotely, or trying to put a portion of everything you do on autopilot, it has been a game changer. And the big premise of that, as I'm sure you've probably read it and many of your listeners have, but for those that have not the premises, you know, you can take something from the zero to 80% fairly easily, you have it all in your head, you just kind of regurgitate that on paper, and you've got it. But taking it from 80 to 90% is hard. And taking it from the 90 to 100% is like climbing a mountain. It's so hard. So the key is is to outsource it at that 80% And that's the Enlightenment who not how is given me?

Casey Brown  36:11  
Well, it's such a Yeah, I mean, in the enlightenment, that's, that's that's a, that's definitely a good way to put it. So. But yeah, who not house probably, I'd say it would be the Book of the Year for me for 2021. This is going 20 Years go by so fast. And I got to stop. And I already have to find the shows that show airs, we're going to be another 12 of it through so Alright, well what is now this is going to be a stretch, I'm sure based on just where you're living right now. But what is a dream vacation you have taken or hoped to take.

Unknown Speaker  36:50  
Next on our list is Thailand. So we hope to go to Thailand for next summer. For the entire summer. And after in this experience, you know in living in the tropics, and also visiting this place many times you get so much more out of it if you stay a long time. So we have planned out in our next summer vacations, we're going to plant ourselves in these places for a month and a half and really get to know the people none of this cruise in for 10 days and stay at the Ritz Carlton. That's not our our jam at all. Yeah, that's

Casey Brown  37:25  
super jealous of that the Philippines is actually one of the places that I want to I want to go which is very I assume, at least based on pictures is a lot like Taiwan, or did you say Thailand? I'm sorry?

Unknown Speaker  37:38  
Thailand, Thailand. Yeah, but I know what you mean Southeast Asia is top of my list now. I hadn't ventured there I was. I was a college backpacker. So I've traveled quite a bit I backpacked around the world for about six months and spy myself after college and I want to go see Hong Kong before it became part of Communist China dating myself here probably but it was going to fall in the hands of Communist China three months after I left there wow. It's just and you know what Casey, I got so much more out of that trip after four years of college in traveling around the world for six months than I got in four years of college

Casey Brown  38:23  
I'm sure and you know I say this all the time that you know we we I've got the best school have the best schooling that anybody could ask for I've got a degree in basically 48 Different things just by trying to start our capillaries in business I mean eventually become so proficient at so many different aspects of it and even if you don't know a lot about one aspect of it you have to know that a little bit or at least enough to know who to hire to get to do that so so you get this whole spread and then of course you add your element of world travels and world living and everything on top of that it changes so But alright, so Becca if if the listeners have heard something that really resonated with them and are they want to reach out to you and talk a little more about this, this lifestyle or potentially putting everything they've got on hold and generating or at least looking at saying hey, we want to invest in this for passive income, how can they reach out to you and get in touch and talk with you?

Unknown Speaker  39:20  
You bet I hope you can hear me okay Casey the torrential rains just began and do you hear the monkey the monkeys coming? Do you hear the monkeys howling in the backgrounds?

Casey Brown  39:30  
I do not hear Him I hear the rain but I do know the rain is this is

Unknown Speaker  39:33  
so refreshing since I'm coming from California and we just would kill for rain there. Sure. So yes, listeners can reach me I have a little gift for your for your listeners. It's called Six steps to put your income on autopilot and move overseas. And this is a guide that will show you you know some of the the most common places expats move. Here Isn't 2020 to move for expats and a cost of living index to help your listeners determine where they would like to go. And then it goes into the other steps and how we've done this and how they can do this too, and leads into that passive income and multifamily real estate really is the key here. And they could find that at home. So sorry for the rain. No, it's fine. It's part of the effect, right? Who needs Yeah, who needs special effects? And I try effects and fake backgrounds. We've got it all here. But they could find that at WWW dot hints. investments.com. That's investments within SAP end. investments.com to download that free guide.

Casey Brown  40:45  
Awesome. Well, Rebecca, thank you so much for taking the time to be with us. And we really appreciate it. I know. It's not always ideal coming from now. I see a monkey jumping around on the tree back there. Can you see? Yep, I just saw one run in from the from the lift. So. But listen,

Unknown Speaker  41:01  
you guys gotta see Casey on YouTube. You got to see this.

Casey Brown  41:05  
That's right, folks. They're running on the trees back there behind you. So all right, well, listen. Well, thank you so much for being with us and listeners. If you've liked what you listened to today, and you want to learn more, get get in touch with Becca had her website that she gave you. And also if you don't mind, please, please leave us a review and give us five stars. When you do that review. We will be forever grateful for anybody that passes along our podcast because we're trying to reach the world. Teach the world and get them to learn how to make a cash flow part of their lifestyle. And again, I want to thank everybody for listening. Have a wonderful day.

Transcribed by https://otter.ai

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Becca Hintergardt

www.hintinvestments.com