Ask Lucas 017: An Interview with Money Radio from Phoenix Arizona
Summary: Lucas Hall is interviewed by Money Radio 1510 AM, from Phoenix Arizona. How did you get started, and why do you invest in buy and hold rentals, rather than flips? How can Landlordology and Cozy help a new Landlord? How is it free? Tools Mentioned: Cozy Hosted by: Money Radio 1510AM Full Transcript: Lucas: Hey, what’s up, everyone. This is Lucas Hall from Landlordology and Cozy. Welcome to the 17th episode of Ask Lucas. It’s a bite-size Q&A show where I answer your questions about landlording and property management. The way this works is very simple. If you have a question just leave it as a recorded message on landlordology.com/ask-lucas and I’ll answer it in this podcast. Usually I like to take a question from a Landlordology reader but in today’s episode I’m actually going to share with you a recent interview that I did with Money Radio in Phoenix, Arizona. They heard about Cozy and Landlordology and had some questions of their own. So enjoy! Ken: When was the last time we talked to a Landlordologist on the show? Julie: I don’t know that we ever have. Ken: Well, we are going to right now. Lucas Hall is the Chief Landlordologist at Cozy. Good morning. Lucas: Hi. Good morning. Thanks for having me. Ken: A Landlordologist. Did you make that term up? Lucas: I actually did. It was part of a previous company and I thought it was just a neat, creative term that was kind of catchy and when I joined Cozy, they said, “No. We love it. It’s awesome. Let’s keep it.” Ken: You at a very early age discovered that perhaps there is some advantages to being a landlord as opposed to being a tenant. What got you interested in real estate? You were in your mid-20s. Right? Lucas: That’s right. Actually I did the most practical thing I could think of. I liked this girl and I actually bought my first house to impress her. Ken: That’s impressive. All right. Then you rented that house out? Is that what happened? Lucas: That’s exactly right. I bought a house, multiple bedrooms. I was going to live in one of them and find roommates for the others that would pay my mortgage. That was how I got into it. Ken: For our listeners, your website is Cozy. C-O-Z-Y dot com. You help not only landlords but also tenants. In what ways? Explain that please. Lucas: Sure. Actually the website is Cozy.C-O. Ken: Okay. Lucas: Yeah. We help landlords in 2 ways. Cozy provides the best online software for landlords. We help them collect the rent online. I collect online rental applications and then also the most secure credit report on the planet. Then we also have a website called Landlordology which is where the term Landlordologist comes from. That’s our free education website for landlords where we just teach landlords nationwide how to be better, more profitable, more efficient and how to keep your places rented everyday of the year. Ken: If I understand this correctly, you’re not one of those fix and flip type people who just constantly are in a turmoil, getting rid of properties and buying new ones. You believe in a buy and hold philosophy when it comes to rental properties. Why would people who are listening to our show who are investors find that a very attractive way to go? Lucas: I love buy and hold properties because they paid dividends the whole time that you have them and then they also show their worth two and three times over when you go to sell it. If you can hold it for 30 years or even 20 years, your tenants will pay off that mortgage. Then when you go to sell it, it will be worth far more than what you bought it for later. It’s a great way to secure your retirement with not that many properties. Sometimes as little as 2 or 3, you can have a retirement better than most people’s 401k. Ken: It seems right now especially among Millennials, renting is something that’s very popular with them. They’re just not perhaps ready to buy that first house. Lucas:It is. It’s more popular than it’s been in years. I love that because I’m a landlord and I have the property that they want. I think it’s something that is going to happen for a long time. I think in the next 10 maybe 20 years, renting is going to be the trend. Mainly because people will have more debt than they used to. They’re unable to buy that first home or they’re waiting until they get married and that’s later on in life for them. Renting is a favorable option because it’s cheaper. Julie: Lucas, How does it work? This is Julie. I buy a rental property and I have no idea what I’m doing and I come to your company. What happens and what does it cost? Lucas: Hi, Julie. Yes. Cozy is completely free and so is Landlordology. They’re 2 sides of the coin which cost nothing. If you were to buy your first property, you could come and learn how to find your tenant. You could come learn one of those best practices and why you should do rent a certain way and how you should collect it. Maybe what kind paint you want to color the walls or what kind of carpet to put in that attracts the best tenants. I can teach you all that through my articles or through my podcast. Then with Cozy, when you finally have those tenants and you want to collect the rent we can help you do that or we can help you screen them with credit report in a way that no other company can. Because we have a track record of actually 99% of our online rent is paid on time with no late fees. We process millions and millions of dollars every month. Julie: You’re not in this as a business as a missionary. You must get paid somehow. Ken: He owns properties. Right? Lucas: Right. No. It is a for-profit business. The way we make money at Cozy is through credit reports. A landlord is free to request it and it doesn’t cost the landlord anything but if they do ask for a credit report, we pull the report from Experian and charge it to the tenant – which is about $19 and we take about half that. There’s enough money built into that credit report service that we’re able to give away everything else for free. Ken: That’s a good deal. Again the website is Cozy.co, thats Cozy dot C-O. I have a suggestion for you. Since you came up with the term Landlordologist, Lucas, I think you need a new work to replace the word landlord because you look at old movies and TV shows and books, the landlord is always the mean guy. Maybe you could come up with just a whole new word to describe that process. What do you think? Lucas: Sure. I’ll think about that. I like thinking that I’m more of an entrepreneur than a landlord. Ken: Very good. All right. It’s been a pleasure talking with you and gain for our listeners who are renters or maybe want to become a landlord or are a landlord right now, go to Cozy. The website will give you some great advice there. Lucas Hall, thanks so much for joining us. Lucas: Thank you.