Mike Minutes Mastermind 07/12/22

Hello, Gus Nation. Hope you're all doing super well. Let's go ahead and jump in. Couple announcements this evening is the roundtable. I will be seeing another email out with the link I'll probably put in the Facebook group as well. In terms of the roundtable this evening, it's a zoom call. And while I'm at it, let me make sure I put this YouTube link in for people who can't see it on Facebook. Give me one second here.

All right.

So that's this evening. It's gonna be 5:00pm Pacific Standard Time. So it's 8:00pm Eastern Standard Time. It'll be live and got some announcements and things. And then we'll jump right into some Q A. We're also announcing the Franchise Advisory Council, the six members that will be representing all the owners. So make sure if you haven't already, that you get your vote in. It's due in an hour and a half, a little over an hour and a half. So feel free to submit that if you haven't already. I think most everyone did. Like, I was very surprised. A lot of people got all their votes in already. So make sure you get those submitted and that those will be announced this evening who those people will be. Let's see here. I think that's all I had for announcements for now. I have some more this evening, so make sure you're on that roundtable. Be fun. It's always fun to go live and we'll see this evening on that. Thanks. Alright, let's jump into the question. There's a good one that came in. I wanted to go over it. It was really good.

All right, so I read this one. I actually dug into it a little bit, so I actually knew exactly what I was saying here. So this is from Westward Inn. Last week, someone called my location and while they were on the phone with the rep, they discovered they were actually in a different franchisee's location. So my question is, if this happens, am I paying for the phone time even though that customer doesn't belong to me? Or do they make a note of that and charge the correct location? So this is what's really cool about Zooper, is we're able to track this much, much better than Service Autopilot. And so the answer to that question. Give me one second. The answer to that question is in service autopilot, it's basically a wash because we assume that about 1% of minutes are crossed between locations. But there's no way to track the inside Service Autopilot. Whereas in Zooper, we have every single time someone logs into your account at command center there, there's a timer and we're tracking that. So it's much easier to be able to pull minutes from one location to another, change the time card from one location another. It's much simpler. So right now, as of right now, in service Autopilot, it's about 1%. It's a wash between locations in terms of there's gonna be times that happens to everyone about 1% of the time. On Zooper though, we eat the cost of that. So anytime someone calls you, that phone call is actually being covered by command center. No one's getting charged for that. So if it ever got to where it's like 2 or 3 or 4%, we'd probably have to figure out some sort of manual way of recording minutes across. But right now we're just eating the cost. Anytime there is a phone call that someone makes the wrong location. And again, it's so small right now it's literally less than 1%. So we're just going to eat that. It's just easier down the road. If it was really, really bad in a specific location, we would do manual where we'd go into the call log every single time and move the minutes across. But right now it's honestly more efficient for us just to eat the cost of about 1%. So for your specific location, you're on Zooper. If someone like that call specifically, you would have no cost. Also, the person that called in at the location that was supposed to go to is not getting a cost because just the manual process of changing minutes over takes longer than us just eating the cost at command center. So currently we're just eating the cost on these calls. That's the short of the question.

Let me take this out. How are you feeling about financing cheaper trucks? We don't have the capital available to buy them outright, but have been renting trucks. The cost is high for the rent of trucks and about 1/4 the cost if we finance them. We can't find any decent trucks on Marketplace, Craigslist, etc. Without them being crazy overpriced with engine issues. Yeah. So renting trucks is a very, very short term solution. Typically if you have trucks in the shop.

Okay, this is Thomas Hickey. Got it. So renting should be very, very short term. If you need a truck more than a month or two, I'd rather you definitely go finance. Even if it was a used vehicle and getting financing and debt on it, I'd rather you do that than Renting. Renting. You're literally probably paying around $1,000 a month. I would just assume, I would guess you're probably paying around that. So definitely, if you're using a truck for anything more than a week or two while a truck is in the shop, I would be looking for a purchase even if you are overpaying right now in this environment.

I found a decent deal, but not great. Had to make it work to finance with one going down. Yeah, 100%. Cool. There was a question the other day I wanted to go over in terms of kind of the third part, the education side. This evening I'll have more announcements and things like that. But this evening or today, I want to go over something that someone had said in terms of valuation of their property because they were thinking about refinancing it or, you know, moving, etc. And I want to go over how you actually, you're going to look for a real valuation. So let's go ahead. I'm going to pull this up alive. I have not done this already and prepared for this. So let's see if I can do it live here. So I'm pulling up Zillow. I'm just going to go to Bellingham. That's a market I'm really familiar with. And typically what people are going to do when it comes to valuation of a property or their own property is like, oh, okay, let's see here. So this house here, let's get one like more downtown, the boundary. Move this up a bit. Boom.

Zoom in. Okay, great. So here's some properties. Let's go ahead and find one like right here. What's this one? Okay, it's 489,000. Three bedroom, two bath. It's only a thousand square feet. Mercy at small bedrooms. Oh, it looks like that's a condo unit C. So, yeah, this is a condo. That's why it's relatively cheap. Okay. Condos are tough to price out. So you got a $400 per month HOA fee. That's a lot. Condos are very difficult to value from a real estate perspective because of HOA fees. And typically that's why I don't like to get involved with them. So let's just you a different example. Let's go to.

This one looks a little bit more standard. Okay, cool. Here we go. We got a 1992 house and it is three bedroom, three bath. Great. 1800 square feet. Fantastic. And this is what people are talking about when they say, oh, Zillow estimates my house is worth X amount this number could not be further from the truth. Like, it's. It's an absolute joke. And this is literally why Zillow stopped buying houses about four or five months ago, because they were buying houses sight unseen using this number, and they basically, they tanked their stock and lost billions of dollars because they were buying houses using this number. So this number is an absolute joke. If anyone ever says their house is worth this because they saw it in Zillow, it's just totally off. So just keep that in mind. Just realize that this, this zestimate is almost always going to be within 5 to 10% of this number. So if they lowered this price to, say, 500 immediately, the zestimate would change. So it has nothing to do with the zestimate, what Zillow says. The price of the house is really irrelevant. It really comes down to comps, comparison sales and sales.

Ideally that are within the past month or two, especially in an environment like we're in right now where things are changing so fast, you need to have comps that are within relatively close time. So let's look at this house really quickly, and I want to show you kind of how I would look at comps. So a couple things I'm looking at is square footage. Obviously, the main things up here, right? Three bedroom, three bath, 1800 square feet. Built in 1992. Let's see if there's anything other big things that have been changed in terms of. Okay, they updated the roof. That's cool. New roof. Very much of a 90s look in terms of cabinetry, doors. Yep. It's all that wood veneer. Cool. It's close to Barkley Village. Okay, great. All right, cool. So now let's see. This house is right here on the map. So what I'm going to do is I'm going to zoom in, zoom in here. I'm going to find that house, wherever it went. There we go. Is this here, man? Where'd it go? Man, I lost it. There it is right there. 650. It's this house right here. So what I'm going to do now is I'm going to go up here instead of going for sale. I drop this down. I'm going to do.

Pending under contract. I want to see that one. Oh, sorry. There it is. Sold. Boom. So I actually want to see what's sold. Okay. And now I'm going to look at more specifically this neighborhood. Okay. So these are now houses that have been sold. And you can see here, these are houses they listed. Listed from the Most recent sale. All right, so you got this one here. Sold literally yesterday. It's a 7 11, and it was sold for 640. It was a three bedroom, two bath, only a thousand square feet. So that's really interesting. So let's go and click on that because this literally sold Yesterday. Sold for 640.

And what I'm looking for is, okay, first of all, we beat them in square footage. We beat them in bathrooms because we have three full baths instead of two. So that's great. What I'm looking for, though is what potentially could have led to this one being sold at 640. See here.

Primary bedroom, okay, is 11,000 square foot lot. So this is, this is really cool because what you can see here is this one sold for 640. This is a good comp. Right? So let's see the. I'm trying to look for home details. There it is. What year was this built?

There it is. 1995. That's perfect. So ours was 1992, our original one. This is 1995. This one has three bedroom, two bath. Ours has three bedroom, three bath. So we should beat that. Theoretically, our square footage is higher. If I go back to ours out here for sale, boom. Ours is three bedroom, three bath. It has literally 700 square feet more.

Comparable in terms of year. And we're in the same neighborhood. So my, my guess is that this house that just went on the market is going to get bid up. So I believe this will probably go for 670 to 680 based upon this comp. And you can see here they're going to review offers starting today. It's like literally this. I believe this will get bid up with three to four offers to at least 680 based upon just that one comp. Now you can literally go back to here, go for sale. And now what you don't want to do is like, oh, like, let's go all the way back down here because this is like my next door neighbor. Okay, great. But that is literally two months ago. You know, May. That 649 right here. That's not going to happen anymore, right? This four bedroom, three bath, $1.1 million. Not going to happen anymore. All right, so just realize that the comp is the best if it is within the last, like few weeks or month and in the same neighborhood and, and a similar year and similar bedroom and bathroom. So, yeah, I can do more of this if you guys are interested, but this is where you want to be looking at the. Sold on Zillow. That's where you look for comps. That's where you look for the real value of real estate, not in what Zillow says it's worth, so. Cool. I can do more of that. Like I said, if you guys are interested, but anyhow. Yeah, so we are. Now, we can't find anything decent, but the rental price is insane and cost. Glad to hear you found something Connor said. Cool. Awesome. All right, guys, make sure this evening, 5pM Pacific Time, 8pM Eastern Standard Time. I'll send out the zoom link again so we can all be on there for the roundtable. And I look forward to announcing the Franchise Advisory Council. So thanks so much, everyone. Have a great day.