Scaling to 177 on Turo & Paying $0 for Worst/Best Cars I Jose Moreno + Demario McCowan DSH #387

He just started ghosting me.

I was like, okay, well, this is what's going to happen now.

So I'm then trying to find his location.

Forget the car.

I'm like, okay, well, why don't you just like bring?

So we brought two choke trucks at the end.

And he still was like going to drive off.

I'm like, this is just going to be unsafe.

You know, someone's going to get hurt.

So I was like, I don't want to get sued on this.

So we eventually got it.

But this guy for three weeks kept the car on.

This we've never had somebody do this.

Damn.

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And here's the episode.

All right, guys, here with Jose Moreno and Demario McCowan, car rental experts.

177 cars, guys.

That is impressive.

Thank you.

How long did it take to scale to that?

Two years.

That's it?

Yeah.

Damn, two years?

You were getting what, 80, 80, 90 cars a year?

Yeah.

Yeah, with both of us working.

That's immediate work.

Yeah.

How much capital did you need to get to that level?

So we used a lot of other people's money, right?

So out of the 177 cars, there's only a certain amount that we actually own.

We do a lot of, it's called co-hosting, where investors are actually able to fit their cars on our fleet and everybody makes money.

Got it.

So when we learned, when I learned that and we learned that, that scaled things like 3x because I wouldn't buy 177 cars.

But to manage 177 cars with what we own

is a lot better that way.

Right, because if you're buying it, it's going to be expensive if you're putting down 20% on each one.

Yeah, it'll take a while to make your money back.

Right, right.

I mean, I jumped in the game with just having good credit.

I always took care of my credit, even though I didn't have any major ideas.

So, and then when I found out about Turo, I bought two cars with my credit zero down.

Wow.

And then, which cars were those when you're starting out?

It's probably on the cheaper side, right?

So, I started with a small Honda HR-V, and then I started with the Lexus.

But the Lexus, don't really recommend starting with Lexus's because you're paying for that type of car So I would recommend to start with Hondas.

Yeah, I haven't heard many good things about Lexus's I started with a Lexus too.

Yeah, and I agree Do they break down a lot?

Well, it's just the value of the car like the Lexus like how much you're paying for a Lexus Versus how much you get right now like you could just do a Toyota not spend as much money and still make more money because people would rather get a Toyota than Lexus.

How do you guys feel about Teslas?

Because when I was in Jersey, I rented one.

I knew it was pretty cheap.

I don't know how they make money to be honest.

Yeah, they're just dropping the prices.

yeah it was like 40 bucks a day to try to compete so many people said oh i'm gonna do two room by tesla so now there'll be how many teslas are there in two rooms oh my gosh there's so many teslas in vegas um they dropped the market and you know the reason why i don't let necessarily like tesla right now is because if you look in the overall car market tesla's dropped like crazy everybody's been betting on tesla and maybe in the future but when it comes to the rental car space there's a high barrier of knowledge that someone needs to to actually drive the car it's not an easy thing if you've never driven a tesla and you go rent a tesla you don't even have to open the door yeah no for real opening the door the first time the process and the regenerative brakes are like funky at first yeah no yeah the brakes are like it kind of it's just like it's just one of those cars so i don't think tesla is a good car to rent out um and they're very expensive when you have to fix the parts because It's hard.

You have to wait a long time to get the parts now.

Yeah, even the Cybertruck, we'll see how that does, but I don't know.

It's gotten in a few accidents already.

Yeah, I think the Cybertruck will be good because it's like so scarce on how many there are out there.

So initially the people that have them running it up on the platforms like Turo are going to win.

But in the long run, you know, Tesla's value of their car has to kind of go up because it's just oversaturated with so many Teslas, you know.

Especially if you got in the business when the prices were high and then after the price cuts, then your exit's going to be horrible.

And then the repairs.

There's a learning curve, right?

So we had a guest who had, they put the charger in wrong.

It's a thousand dollar repair.

Why, by the way, yeah, put the charger in wrong.

Yeah, wow, that is crazy.

It seems like every brand is launching an electric car, right?

Right now, pretty much at this point.

But a lot of them are just flopping, it seems like.

Yeah, I think, like, you know, the people that are betting on EVs now in the early stages, I mean, they're gonna have to come with all the anything that you bet on early stages, you're gonna have to ride in ups and downs.

But I think in the long term, that's what they're trying to switch everything to.

So, EVs.

But why'd you guys pick San Diego and Vegas as your markets?

That's just where I was.

And he was here in Vegas.

I scaled to, I would say, around 60 cars.

Oh, yeah, 60 cars.

He was around 50.

And we had done some business together.

So we joined our forces.

And all the investors seen us doing it together.

So that's how we scaled so fast after that.

It was just calling out an effect.

Getting 15 cars here, 12 cars here.

It was just insane.

I love it.

And you guys recently raised a million dollars in funding?

Yeah.

So what we do is we help other businesses get get money and get capital.

So we have a client, and he's actually one of our locations in Florida, in Boca Raton.

And we got him a million dollars of funding.

So we got him five vehicles.

We got him Mercedes GA.

What is it?

Mercedes GT?

The GT.

Mercedes GT.

We got him a Lucid.

We got a BMW.

We got about five cars.

That cost about $450,000.

And then we got him something which is really cool.

It's a $200,000 line of credit.

And the cars, you don't have to hide that you're renting the cars out.

They know it.

And the cool thing on that is he can turn those cars back in.

And it's like a lease model.

So he got $200,000 on that.

And then everything else was just liquid.

So it's going to help us.

It's going to help that side of our fleet in Florida going to scale.

Right now, out there, it's making like $25,000 a month

just on nine cars.

That's crazy.

And with these four extra cars, I'm thinking we're going to make an extra probably like $15K a month.

Holy crap.

How were you able to get him that much?

Did you have like bank statements or something?

Yeah.

So so he's been in the business he was making 25 000 for every month for like three years so it was it was a little bit easier but the big thing when you're raising capital for rental car companies is as soon as you tell them that's your rental car company they're like we're not gonna give you a car like we can't give you a car

yeah and he already had nine cars so it's like after you have three cars reporting your credit, the banks are like, well, what are you doing with this?

Like, this is weird.

No one has nine cars.

You know, some people do.

Wes Watson.

Yeah.

So like, other than that, like there's a very small amount of people that do so when they see that they're like okay this is high risk right and uh so i had a it took about two and a half months to get all of that funding that's good to know because i'm looking to get more into cars and i put one under my business so does that matter at all if you have some under your personal and some under your business yeah so like the personal credit there's like even with credit cards and cars right there's only so much your personal credit can handle right even if you make a lot of money they're like okay well this is still too risky.

But when you put stuff in your business, that's almost like unlimited because you have the ability to say, well, here's my revenue.

I can get three cars or I can get four cars.

So I see it in the funding world.

If you don't have a business in the long term, you're actually not going to get as much capital.

So the car is smart in the business name.

The only downside is the interest, bro.

Because I heard all the business currencies are higher, the commercial loans, dude.

I paid 10% on mine.

Yeah.

I was like, bro, if I rented higher on it, I don't even know if I made money at this point.

10%,

bro.

Yeah, that is crazy.

There's nothing stopping you too from just creating more businesses as well.

So

let's say you have one business and you max out the loans that you can get on there for the past six months.

You still have a personal guarantee it, but then you can open another business and do the same thing.

So, you know, there's some people with a fleet loan, you can get four cards at once.

So if you have four LLCs, you get 16 cards right away.

Yeah.

And you can stack the 0% credit cards too, right?

Yeah, exactly.

Yeah, those people, I know someone that's gotten millions of dollars just making 40 LLCs and stacking 0% cars.

The 0% interest cards are great because what I tell a lot of people now is like we can actually just liquidate the funds and buy the cars.

Because in the Toro space and the rental car space,

if you default on your car for two months, they're going to come take it.

Why that quick?

Like, yeah, they'll somewhere even quicker, but two months, they'll start seeing, like, okay, we need the car back.

But if you take that 0% interest car, say if I got

50,000 Chase Business Inc., I take that and I go buy a $25,000 car.

I own the car.

They can't take the car.

Now, you can mess your credit up with the credit card.

I'm not telling you to do that, but you own the car still.

So even if you mess the credit card up, you still get the car versus going to go get that auto loan.

You're going to pay higher interest.

And if you mess up, they're going to come take the car.

Yeah, I like the credit card strategy better because you have 12 months, right, before the interest starts kicking in.

Yeah, hands are moving at some.

You see 19 months.

So it's pretty solid.

Yeah, by the time 18 months rolls around, you already rented it out 100 times.

Exactly.

And when you have the title to it, you have a lot of flexibility.

I mean, we know some lenders with the title, they'll give you, if your car is 20,000, they'll give you 20,000 cash.

And then you can do the rinse and repeat that process.

Yeah.

I like the business model because if you're doing it the 0% way, I don't see much risk other than like people up your car, I guess, getting in accidents or getting your car stolen.

You're smiling.

So there's probably some stories there.

Yeah.

Yeah.

We got a lot of stories with that.

Only you want to tell one of us some good stories?

All right.

Yeah.

One of the most recent ones, we have a BMW.

It's a white one.

uh we have we're running the economy play with it so what that is long-term rentals rented out over a week usually they'll keep it a long time he had the car around six months or eight months a long time but then towards the end

are you interested in coming on the digital social hour podcast as a guest well click the application link below in the description of this video we are always looking for cool stories cool entrepreneurs to talk to about business and life click the application link below and here's the episode guys he just started ghosting me i was like okay well this is what's gonna happen now so and then, trying to find his location, he kept the car on for two weeks or three weeks because I have a kill switch on there.

So, I couldn't even shut off the car because it was on.

Wait, he kept the car on?

For three weeks.

What?

Running it, sleeping in it, everything in the car.

How did the gas not run out?

He was pumping gas with it on.

Yo, what?

Oh, so if he turned it off, he wouldn't have been able to turn it back on.

Interesting.

So, you found him eventually?

Well, I kept sending tow trucks, and every time the tow truck would get close, I'd just take off.

Wow.

This guy was on it.

Stalking around right now?

We got the car back.

I didn't even know.

Like, just like, I'm like on the back end of the business.

So he calls me.

If he calls me, there's an issue.

So he calls me, like, yo, like, we got to go get the car.

I'm like, okay, well, why don't you just like bring?

So we brought two chow trucks at the end, and he still was like going to drive off.

I'm like, this is just going to be unsafe.

You know, someone's going to get hurt.

So I was like, I don't want to get sued on this.

So we eventually got it.

But this guy for three weeks kept the car on.

This we've never had somebody do this.

Damn.

He must have been desperate.

If he was living out of it, I could see why.

Yeah.

That's crazy.

We saw a story like that on the news before.

We're like, oh, we kept it on for two weeks.

That's crazy.

And then it happened to us.

We had tow trucks box him in.

He got away and we were like, it's going to be way too dangerous.

So I just have to play cool and saddle with him just to let go of the car.

Wow.

And this was a turo customer or private?

Private rental.

Oh, I heard those are riskier, right?

Yeah, it is riskier, but you're making four times the money.

Right, because no feet, no turo takes a cut, right, or something like that.

And then if you're on turo, you're listed on there, you're dealing, you're competing with hosts who are listing their car at $3 a day.

One of my cheapest cars is small Hondas.

I'm renting it for $43 a day.

Yeah.

I've just heard so many horror stories with the private rentals, man.

Yeah.

Like Hellcats getting stolen, cars getting shot up, like crazy stuff.

Yeah, I had a Hellcat stolen.

They locked it in a storage unit in LA.

And nobody was going to help me.

I had to talk to the storage people and they finally let me get it out, but it took days.

Wow.

Even though I had the registration and the key right there, they probably just didn't want a lawsuit because, with the storage things, you're not allowed to go and enter, right?

If you're not the owner, right?

Damn.

So, they were gonna, and when they put in like storage units, especially in California, they're gonna ship the car out.

Like,

yeah, they're like, let's like send the car out.

Like, cars go to Mexico, they won't return.

That's like the worst.

Like, if you're in the West Coast or you're like in Texas or the bordering states, that's like even on true, if your car goes to Mexico, highly unlikely.

You're not going to Mexico to get that at that point.

Yeah, so most people get their cars taken.

What's like the biggest red flags when you're dealing with potential clients?

So some of the biggest red flags is they don't have any documents or they're trying to say, oh, I lost my license.

Here's a picture.

Or if they don't have insurance.

There's a lot of people that will rent without insurance.

They'll provide insurance, but you're risking a lot because if you have a lawsuit, it's going to go on your commercial policy.

If you have one, or if you're renting on personal, let's say I just have personal insurance, I rent this to someone, super wrong, but then you're risking a lawsuit on your personal insurance, which is gonna affect you forever.

Yeah, yeah, I feel that.

If someone showed me a photo of their ID, I probably wouldn't do it.

You know what I mean?

It's crazy when you see all types of things, people with fake IDs.

I see someone photoshopped.

They photoshopped a picture of them sitting next to our car one time.

No way.

That's crazy.

What?

Photoshopped?

Yeah.

The guy that photoshopped with the ID in his hand.

He photoshopped the ID in his hand because he didn't have his ID.

That's hilarious.

Dude, the fakes are so good these days.

I don't even know.

Like, do you guys have a way to tell?

Yeah, so you want to tell them a little bit.

Yeah, so actually with our own

Website, we actually have something that verifies insurance.

So they can't fake insurance because they have to log into it and it shows us like this is valid.

So it will kick them out if it's fake.

Got it.

And we have something that checks the IDs.

So same thing like when you like go scan your ID for like a lot of the apps right now or like the government stuff, it scans their ID and it makes it scan their face.

So that really helps us.

Uh, we just got that software, we put that on our website, so that's key, yeah, that's so key because the fakes are so good, man.

I used to have one and it scanned it too, yeah, oh, yeah, yeah,

that's a good fake, yeah, no, for real.

Um, what's the most expensive car you guys own right now

part of the Ferrari, Ferrari California T?

Yeah, how much is that?

$21.30.

Okay,

so I mean, we had we like to diversify, but it's definitely, you know, once you start getting into like 200K, 250K, and then a lot of people's personal insurance is not covered all the way up there.

And we really just want to get volume.

So, yeah, so you found like a sweet spot.

You're not dealing with like the high-end exotic customer range.

Exactly.

We have some.

I mean, like in Florida, our location is like each location is like a different use.

So, like, a lot of the San Diego cars we have for Uber Lyft drivers.

Vegas is still kind of more for tourists.

And then you got Florida.

We have the Ferrari.

We have the AMG GT.

So we'll make more money out there because it's still, it's warmer year-round, you know?

So,

yeah, I think like each market is different.

And that's like having five different locations makes it easier to say, okay, well, hey, this car is not doing good in Vegas.

Send it to San Diego.

Like right now, we actually have somebody moving a car from San Diego all the way to our Alabama location.

Alabama.

Yeah.

Damn.

Yeah.

Because the rental rates in Alabama are interesting because they'll pay for a Toyota Corolla and Toyota Camry at a higher rate than Vegas because we have, like, Vegas is very oversaturated.

San Diego is oversaturated.

But when you get into areas like Alabama, it's like there's only so many cars out in Montgomery.

Right.

I've never even heard of that topic.

Yeah.

I mean, in San Diego, we're putting a lot of, we were starting to put a lot of high-end, including BMW IA, Hellcat, and then just being so close to the border, next to LA, so many issues.

IA crashed after four rental trips.

Yeah.

Hellcat stolen multiple times, impounded multiple times.

So we'll say, okay, in San Diego, we're just going to put a lot of economy cards so we don't have to deal with so much of that.

And then Miami,

Miami people go for, you know, luxurious vacations.

We have the Lucid as well, a Land Rover out there.

So nicer luxury models.

I saw Lucid Vegas Holler Gallery.

What did you think of it?

I haven't driven it yet.

Oh, yeah.

Lucids are nice.

I like Lucids.

You know, like Tesla gang doesn't like the lucids, right?

But I like lucids.

They're really nice.

When you go up to it, you're like, okay, this is a very nice car.

And that's like what you want in a higher-end car.

Even the dash inside of it, when you sit inside of it, it's really nice compared to just like a regular Tesla or even something higher-end Tesla.

So I like Lucids.

I think they're faster than Tesla.

I'm not sure.

Wow.

We'll see.

It's quite the statement.

That's going to cause some confidence.

We'll see.

Any car brands you guys think are overrated?

Car brands that are overrated.

I would say i know the bmw i8 so many people try to get this car to rent it out i think it's like one of the worst cars right one it's very low so the chances of it like bottoming out like something hitting something especially in cali is high the second thing is everybody i knew that has a bmw i8 has had it crash and it to me it's just not it's not it's not a practical car like i think you can go get like a corvette and still make money longer term than dealing with like a bmw i8 so i'm over i'm over with the I8s.

What about you, man?

Man, just seeing a lot of two roll hosts.

You know, we have a lot of two roll hosts with their business.

So we see them, and the biggest thing would just be the Lexuses or luxury models like that.

You know, Acura, you're paying a premium, a $30,000 premium that you would, and you're not going to get more money.

So let's say a Toyota rents for $30, for example, and then you'll get $45 or $50 for an Acura or Lexus compared.

And you're paying $30,000 premium with the dealership.

Right.

So you're looking at it purely just from a numbers point of view.

Yeah, that makes sense.

It's like low, low, mid, it's like low-grade luxury, like Lexus's and stuff.

And when you finance Alexis, here's the thing that people don't understand: every dealership is different on how they finance and lease cars.

When you go to Alexis, like you can, you're gonna lease a car or finance is $800 plus dollars versus going to, this is why there's so many BMWs, if you really look think about it.

When you go to BMW, they have a better way to lease their vehicle.

So, you'll be able to get a BMW a lot of times cheaper than getting a Lexus.

And more people are

brand anonymous, especially younger people, are going to look at BMW versus Lexus.

So

I think Lexus isn't a good brand to rent out at all.

When it comes to

buying a Mercedes with the same markets you're going to pay, you could get a Mercedes and you're going to get a much higher rate.

I feel that.

When it comes to that debate of financing versus leasing, would you guys stand on that?

So I think, you know, when you look at the business, the big key in this business is people need to understand that we're actually flipping cars, right?

We're not really focused just on how much we're going to make when we're in it.

I focus a lot.

Okay, how do we buy the vehicles, right?

So I like leasing.

Most companies don't let you unless you do that like $200,000 line of credit.

I like it because the car's depreciation, as soon as you drive it off the lot, when you finance it and it's new, it just plummets, right?

It just goes down.

You're losing instantly money, right?

Instant equity.

So I also like the only reason why people don't like leasing and why I never liked it at first was because there's a mileage cap.

So people like, well, what am I going to do if the car is over mileage?

But there's multiple ways to get a lease.

You can sell it back.

I sold my BMW back to BMW and they bought it and I didn't have to pay anything.

I didn't turn it in early.

Wow.

You could turn the vehicle in or you can swap a lease on where you can literally have somebody take over your lease.

So I like it because there's multiple exits of that vehicle versus when you finance a vehicle, you're going to have to hold on to that car or you could sell it.

There's not many options.

You know what I'm saying?

Interesting.

So even if you're over mileage, you could still trade it in or swap it.

Yeah.

Yeah.

So when you, what people need to do is when they go to the dealership, they don't need to go say, hey, I'm turning the lease in early because they're going to be like, okay, well, you owe us money.

You just say, hey, I'm selling the car to you guys.

And I didn't know that.

I actually made $5,000 on selling my Honda at the time to CarMax.

I leased it and they're like, yeah.

We're going to buy the rights and we're going to buy the car from you and we'll give you this.

And I was like, yo, because because if i had turned that car in i would have had to pay four thousand dollars because it was over my car that's a good hack right there wow yeah that's bars man i had no idea because i always worried about i used to lease cars and i always worried about the mileage i was like i gotta stay under you know what i mean because i didn't know how much they were gonna charge yo you don't you go there they're like all right you're back like all right you go it's like three thousand dollars you're like okay and you're already there yeah so for real What about you, man?

Any car hacks?

So speaking about financing versus leasing, I agree with with the leasing because a lot of people jump into the business and they get an exotic car or a higher-end car and they finance it.

But you have to think that you're locked into this for five years.

And right away, especially higher-end cars, you're going to lose value very, very fast.

And when there's an accident, the insurance only pays you out what it's worth.

So let's say you still owe $100,000 on that loan, but the car is now worth $70,000.

You're going to have to pay the $30,000.

So that's a huge thing that I see a lot.

That's a huge mistake that I see a lot.

Yeah.

When you guys guys deal with accidents, have you seen insurance companies come through?

Man, it's a roller coaster.

Yeah, it's hit or miss.

So

it's very, very, you know, you have to have everything down to a T, but once you get that, then it's pretty much smooth.

But also, they're always changing.

Or you can deal with, you know, right now we're dealing with one and they're saying, oh, we have an administrative hold.

We're not paying for anything right now.

Wow.

So, oh,

you know,

a lot of money.

You know, nearly sucks holders right now.

just in holes right now.

And they're one of the biggest companies.

It's called, what is it, Lula?

I think it's for insurance.

Yeah.

Yeah.

It's for insurance.

And a lot of people utilize that for rental cars.

But right now, they're dealing with some

internal things where they are like, well, we don't know when we can pay you guys out and all these different things.

So

because the way they do it is they're not actually an insurance company.

They're more of a broker.

So they're like more like a middleman, which is smart.

But they're in a situation now that someone, the insurance company, if the insurance company actually doesn't pay anybody, then everybody's paying insurance to Lula for how many months?

So yeah, rental car insurance is very difficult to get.

So moving forward, right,

you know, you find an insurance broker.

You tell them your exact needs.

That's what we've done in our newest locations.

And that's worked the best because you find an insurance broker, they have ways to look for insurance that you don't.

And they can find something that's tailored to the rental car company.

And do you put all the cars under one insurance?

So it depends either on location or the way we're set up.

If we're not big enough at that location, then we'll put it on another one.

But once it gets big enough, then we'll put it into an actual, its own policy.

Right.

And what's the price based off of, like, for the monthly payments?

Value.

And, you know, if it's a commercial policy or if you're doing a cheaper policy, if the car is just on tour, then you can do a lower policy.

You know, there's some that are $50 a month.

You just put it on tour, but you're not having that much protection.

Dude, the insurance on the checkout is crazy.

Oh, yeah.

That's how I was not used to that.

Not going to lie.

Cause you just, when you buy a car, you don't even think about it.

I mean, you guys do, obviously, but just a normal person just doesn't even factor that in.

Yeah.

And then you're like, oh, wait, what?

Especially in Vegas.

We have high insurance in Vegas because I guess all the crashes and stuff.

So I see a crash every day.

Bro, people don't know how to drive in Vegas.

Bro, it's crazy.

I literally drive so like carefully.

Me too.

I don't know who's drunk.

I don't know what's going on behind me.

Yeah.

Like I have the auto drive on my Tesla.

I don't even use it.

Oh, yeah.

I I don't use auto drive out here.

I don't do any of that.

Like, in Cali, you might be able to get away.

We're on the free race so long.

In Vegas, I don't use any of that.

You literally have to be focused on the road.

And that's why our insurance rates are so high.

We have bars everywhere.

I actually, somebody hit one of the cars that I was in near my house, which is like in a residential area.

There was a little bar and I went to a store nearby.

And the guy was drunk.

And he came out and hit the car.

And I'm just like, bro, he's like stumbling.

Yeah, we got to be one of the highest states.

Yeah.

Because of the strip, the strip.

People are are just blacking out and then driving home.

Yeah.

Any markets you guys got an eye on right now?

To open, to expand.

I think the Florida market and the Miami market is really enticing.

A lot of people try to go out there and do it.

They don't really make it because they don't have any market share.

But I think that's where we're focused on.

We have some real estate out there as well.

So I'm pretty excited about what we're doing because this we may went with nine cars making $25,000 on Turos, is it's not easy it's not for two years so i'm like okay we can pit more into this um even our alabama location because our numbers are better i'm at we're actually like looking into like you know smaller markets like the alabama and the florida market the bigger markets like vegas and san diego i'm like trying to stay away from what are people race to the bottom in the bigger cities just because there's so many people that heard about it they want to come in they're not making any money they're desperate to pay their car payments so they'll put at the test lab 30 a day hoping to make the payment yeah my jaw dropped when i was in even in jersey it was cheap i don't know if that's considered a big market but yeah 40 bucks a day

that's crazy

like they're literally losing money on there that's so low especially on and the big thing is like when we look at like the rental car market and this is why we do private rentals and i like it turo has a small market share like every business has a market share right they have a very small market share and inside of the big market which is where we're competing with enterprise and hurts when you compete with them it's a different ballgame you know enterprise is making a lot more money than a lot of people on Turo, even just for their daily rates.

And the car, we can have a Tesla on Turo versus getting like a Camry on Enterprise.

And the Camry, they're going to make more money because Enterprise has everything figured out already.

They have airport locations, huge airport locations.

When you need your car fixed and you're at a reputable body shop, they're going to say, hey, and you're running through insurance.

Well, we got a rental car.

It's just down the street for you.

Like, it's through Enterprise.

Yeah, they're everywhere.

So

that's like another tip.

is like go when we go to local body shops and we go to local rap shops and we just say hey listen if you have somebody that needs a car we have a bunch of cars we can we can break bread together because i'll bring it to your people yeah give them a little cut that's that's actually brilliant yeah that's huge not only that you have the space too some places will let you that's how we're doing in alabama partnering with a mechanic shop and they have a lot of space so we take care of their customers and they let us park our cars there that's smart yeah i know some people out here park their cars like on the strip like in casino parking lots Mm-hmm.

It's kind of weird, right?

I actually listen.

I had a

I had a slingshot that I had in Vegas and I couldn't keep it out the house because it was uncovered and it was raining.

And I parked it in

the Palazzo parking garage, bro, for like two weeks at a time.

It wasn't rented.

And I used to tag it sometimes.

And I was just thinking that today, because they actually pit where you have to pay now at the Palazzo.

And I'm like, man, I would have paid a lot of money just to keep this car down here.

There's very few free parking out here now.

Yeah.

It's crazy, man.

It used to be always free for locals.

Yeah, now it's like, nope.

20 bucks for three hours.

Literally.

You even have to win now, you got to pay.

And a lot of them actually took away the local thing, too.

So you still.

Oh, the ID?

Yeah, like no ID.

I'm like, come on, man.

They're getting up.

Everyone.

The gambling proceeds weren't enough for you guys.

People are losing their lives gambling.

They want it's just like every business, like, how do we get money more and more ways?

And it's just like, oh, we just set up pay for parking.

You guys do a little Airbnb also?

Yeah, so we've set up around,

what is it, three in Miami?

How many we have in Vegas now?

So we have four in Vegas.

I thought they're banned it here.

Yeah, so they haven't banned it.

It's just different laws that you have to work around in Vegas or have to go through.

If you own real estate, it's a little bit different.

And we do some short-term rentals that are like, it's not technically short-term, but it's 30 days.

And in the eyes of what they say, it's 28 days in most places.

So if you're renting out 30 days, you're not violating

certain laws.

So, yeah, the Airbnb space is pretty cool.

It's comparable to the rental car space.

And what we do is you can rent our car and you can rent our Airbnb.

Smart.

Yeah.

Little bundle package.

Bundle, yep.

Yeah, in Miami, though, we just got three units working on a fourth.

And then we have some big projects lined up that are going to be very exciting to see.

Which market excites you guys more, the car rental or Airbnb?

I like real estate.

I actually got my real estate license at 18.

And so I was deciding between at the time, like Airbnb or Turo, the barrier to interest, the barrier to entry for Turo is a lot smaller,

economical, but the loss.

So I got into that space.

And so we basically, like, my goal is to we funnel as much money back into real estate.

It's something that's not going to go away.

And when you, when you buy a car, here's the thing.

When you buy a car, it's going to depreciate unless you buy one of one or one of 100, right?

When you buy real estate, it still depreciates.

theoretically, but it still goes up and appreciates.

So I get to write off the depreciation and I get to still make money more every single year.

It's an asset rather than a car is a liability, right?

Yeah.

And even if you get the car and it's making you money, I still, it's a depreciating asset that eventually I can only have a car for so long before it goes away.

But the huge thing we've learned is this social currency.

So we started with the car rental business and you can enter as low as $5,000.

We have cars that we bought for $5,000, $3,500 absolutely.

Well, like $3,500.

And we're renting them out.

And they can make anywhere from $225 to $250 a week, which is not bad.

Your entry is $3,500.

But the same investors that helped us buy those cars are telling them, look, we've done good business in the cars.

We have these Airbnb projects.

And then that's a social currency.

Now you're able to raise more capital.

And once you can raise the capital, then real estate's no-brainer.

Yeah, social currency is huge.

And you need it.

Look at what Grant Cardone did.

Yeah.

Raised $4 billion.

I love it.

Guys, it's been fun.

Anything you want to promote or close off with?

Yeah, so if you guys are looking to, we basically teach people how to use popular side houses, whether it's Turo, whether it's Airbnb, whether it's trading to get more social currency, to provide more value, and to get investors.

All of the businesses that we started, I didn't go to the banks, I went directly to people that I knew that already knew what we were doing.

So, if you guys want to get in it, we have a group where it's $21.99 a month.

I made it economical, and all you got to do is text the word social to 702-602-6399.

Again, 702-602-6399, and I have a free e-book basically showing how we started all these businesses

with

under $1,500.

So we'll link it below.

Thanks for coming on, guys.

Cool.

Thanks for watching, as always.

See you next time.