Leveraging Finance Tools To Kick Start Your Business

Leveraging finance tools to kickstart your business

Welcome to Boostly Podcast Episode 578.

In this Boostly podcast, the host Liam Carolan speaks to Olivia Tati and Anita Nagle, who own and operate the short-term rental business, Tati & Co Rentals.

Olivia has a background in chemical engineering and previously worked in the oil and gas industry for three years before quitting to start the short-term rental business.

Anita, on the other hand, has a day job in marketing and is more focused on operations and marketing for Tati & Co Rentals.

They both bring private money and partner with investors to fund the properties, while they manage the work and the property themselves.

They discuss their interest in real estate, which led them to short-term rentals as they love the creative side of designing and decorating the properties.

They also enjoy the flexibility and income potential that comes with short-term rentals.

They share tips on how they market their properties, including using social media and having a website.

They emphasize the importance of guest communication, anticipating guests' needs, and ensuring that their properties are clean and well-maintained.

Overall, they provide useful insights for anyone interested in starting a short-term rental business.

 

Here's the video for this episode:

Timestamps (audio)

00:00 – Intro
00:48 – Olivia Intro
01:41 – Anita Intro
02:33 – Why short-term rentals
05:35 – Was there a scary moment before you went into business
07:25 – How did you find this location
08:47 – Outro

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Transcript from the Episode

Intro

[00:00:00] Liam: Okay, welcome to the Boostly podcast. This is the podcast they give hosts all over the world, the tools, the tactics, the training, and most importantly, the confidence to go out there and get more direct bookings, my name's Liam Carolan, and today we are going behind the host with another interesting and successful short-term rental host.

[00:00:16] Uh, we're gonna learn about their hospitality business, what has inspired them to get. Into hospitality, but also some of the things that you may be able to take advice from and put into action within your own business. So today I'm pleased to be joined, uh, by two very special guests. We've got, uh, Olivia Tati and we've got Anita Nagle, and they are from, uh, tatty.

[00:00:39] And co rentals. So welcome along. Thanks for joining us today. Thanks for having

[00:00:43] Olivia: us.

Olivia Intro

[00:00:45] Liam: So let's get started. Um, and if we start with yourself first, Olivia, if you can give an introduction to yourself and, uh, the business in

[00:00:52] Olivia: general. Yes, for sure. So we actually started Tati and Co in about October, 2022. So pretty recently.

[00:01:00] Um, we currently have one short term rental under the business, hoping to get under contract on our next one. Here this week. Um, so yeah. And, um, I guess a little bit of background about me. I used to be a chemical engineer in the oil and gas industry. Um, was in the industry working full-time for about three years, but quit my job right when we started this business.

[00:01:23] Um, I actually have my own duplex as well in New Orleans. And I short, that's how I kind of started off with the short-term rentals. Um, I short house, hacked short-term, rented out one side, lived on the other side, and now I'm midterm rent out my side. So, yeah.

Anita Intro

[00:01:40] Liam: Nice. I like it. And coming across to yourself, Anita, um, if you could give yourself a introduction and also what your role is within the business.

[00:01:47] Olivia: Yeah, so, um,

[00:01:49] Anita: Olivia became obsessed with real estate like two or three years ago, and I was kind of her sounding board. I'd wake up to like 50 texts just about real estate. Um, and then in October she was like, you know what, I'm, I'm ready to do this. Do you wanna partner with me? I said, yeah, I mean, After all that I've heard from you, like I, I'm ready to go.

[00:02:11] Um, I still, you know, have a day job. I work in marketing, um, as, uh, my day job, but hoping, um, to go full-time eventually with Tati and Co. Um, my role here, Olivia does a lot of the growth and then I'm kind of more on the operations marketing side.

[00:02:30] Liam: When it comes down to the business is, is quite newly formed.

Why short-term rentals

[00:02:33] So what we're gonna be doing today is, is diving into why short-term rentals and also the model that you use at the moment. So is this property that you've got, your first one is this arbitrage, is this owned? Um, how does, uh, what's the model look like?

[00:02:48] Olivia: Yeah, so we own it. Um, but we bring in private money, um, to fund the deals or we part partner with other folks to fund the deals.

[00:02:55] So we do all the work. We're the boots on the ground. We are the ones finding the properties. We're the ones, um, managing it. We're the ones rehabbing it and we DIY a lot of it ourselves. Um, but then we find partners or investors to bring in the capital basical. That's,

[00:03:11] Liam: that's good. That's good. And we can dive into that.

[00:03:13] Uh, certainly that's more the real estate side of things, which I know you're very strong on. So you've formed this business and you've decided to go all in. So the two questions I've got for you, let's start off with why short-term rental, what was it that about short-term rental, which was attractive?

[00:03:28] Olivia: Yeah, I mean, I think I can go first on that. So I, as Anita said, have been obsessed with real estate since basically the pandemic. Right? I think a lot of people kinda reevaluated their lives. Right? Um, and for me, you know, I was listening to bigger pockets obsessively for, and I still do always, um, but the long-term rental side.

[00:03:49] Of it didn't get me as excited. Um, short-term rentals, we love decor and design. Um, I don't think that's ever gonna be something we actually hire out because we really enjoy it. Um, and you can just get so much more creative with short-term rentals. And then we're also both like we love to host, right? And not even just like posting people, but hosting events, hosting whatever it may be.

[00:04:11] Mm-hmm. We always have visitors too, so I think. That side of things and being travelers and knowing kind of what people are looking for in the hosting and vacation rental business, that kind of like really appealed to our strengths.

[00:04:24] Liam: So this first one you mentioned, um, was you kind of house hacked. So talk me through, for people listening who may not know what house hacking is, talk me through how that came about.

[00:04:33] Olivia. Yeah,

[00:04:34] Olivia: so basically house hacking is when you buy a property, it could be a single family home, it could be a duplex tri. So the thing that um, I guess is most common is people will try and buy either a duplex, triplex, or fourplex. So a small multi-family property. The cool thing about that, at least in the US, is you can use an f h a loan where you put 3.5% down, which is awesome cuz it's not that much money.

[00:04:56] Um, and then you rent out the other units or you rent out other parts of your house and then you live in part of it to decrease your living costs. So I was actually able to get all of my living costs and cash flow off of it with sh by short term, renting out the other side, which is pretty awesome. And then I also came out of pocket with it.

[00:05:14] $0 cuz I was just able to leverage a bunch of different things. Like I was a realtor, so I rolled my, um, commission into closing costs and then I also got a 401K loan. And then also using the f h A loan. It just wasn't really that much cash. So it's like I had the cash, but I was like, how can I. Take it further so I can put money into the next property and build a business and everything.

Was there a scary moment before you went into business

[00:05:35] Liam: Was

[00:05:36] there a scary moment before you both went into business together and how did you know this would work together as, as business partners? And I've gone slightly off script here, so, um, yeah, uh,

[00:05:46] Olivia: you can, you can go first. I mean, I think whenever you're starting any new venture, it's definitely scary. I think for me it was when we finally got under contract and we were like using like, you know, partners.

[00:05:59] I was like, wait, are we doing the right thing? Like, do these numbers work? Um, and I think it's just like, um, remembering that you understand the fundamentals and you understand the basics. And then I think I also, I probably have. You know, the utmost confidence in myself, like delusional confidence, then I'll figure anything out.

[00:06:22] So I think that helped. But I guess What about you? Honestly,

[00:06:26] Anita: I feel like it might have been scarier for you at first because. Um, Olivia had more of the experience and I, you know, she was bringing me in and I'm like, I trust Olivia with my life. Like Sure. So it was kinda all on, you know, her, I feel like the confidence portion, um, but I feel like.

[00:06:45] There wasn't

[00:06:45] Olivia: ever really

[00:06:46] Anita: a moment of doubt. Like as soon as she asked me if I wanted to partner, I was like, yeah, let's go. How do we make this work? We're both very, like, we can figure out anything type people. Um, when we got our first property, we were sleeping on air mattresses on the floor with no plumbing, no heating for a few days and like.

[00:07:04] Still generally cheer dispositions. And I was like, if

[00:07:07] Olivia: we got through

[00:07:07] Anita: that together without even snapping at each other once,

[00:07:11] Olivia: like we can, we can get through

[00:07:13] Anita: anything.

[00:07:14] Liam: How did you know this location was gonna work? Was there any kind of softwares or anything that you used, or is it more of a experience based thing, or was it a, um, a hit and hope?

How did you find this location

[00:07:25] How, how did you find this location?

[00:07:28] Olivia: Yeah, so it's a little bit of everything. So this location, we was never really on our radars. I like, were always kind of scouring different markets and there was one property, it was like a cute little, a-frame, kind of close by to here that popped up and um, I like subscribed to this one.

[00:07:46] Um, Email list called the Offer Sheet or something like that. I actually don't remember author. I don't really use it too much anymore, but when we were originally just trying to figure out our market, um, and we decided to look into that property and then we looked into the area and we're like, wait, it's right next to a national park.

[00:08:04] And then kind of just started looking into the return. So we use Price Labs and Air d n A just to kind ends t r Insights, just to kind of figure out our markets to see which one. The best to go into, well, not necessarily the best to go into, but a decent one based off of our price point to go into. Um, just cuz we were also raising private money right.

[00:08:26] For the first time. So we, it's not like we had hundreds of thousands of dollars to work with, you know, we're like sc grounding just to find investors. Um, So within that framework, we landed in the Shenandoah Valley. Um, and yeah, it's been a great, it's a, an ol awesome market. Yeah,

[00:08:46] Liam: definitely. Good to hear.

Outro

[00:08:47] It's good to hear. Uh, thank you so much for sharing your journey with us today on Behind the Host podcast. And, uh, thanks again. Any closing comments just before we close it?

[00:08:55] Olivia: No, just thank you so much. Seriously. Appreciate it.

[00:08:59] Liam: Thank you both. Speak again soon. Bye for now. Having a blast. Gonna get it on the Bruce Lee

[00:09:05] Olivia: podcast.

[00:09:06] Bruce Lee led Bruce Lee cuz it's so hard on the tee Is loose leaf

[00:09:10] Liam: picking up those rhymes? Don't write it, just do it loosely.

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