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All right.
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Well, welcome back to the Outdoor Hospitality Podcast.
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I'm your host, Connor Schwab, joined by the great and wonderful Isaac French.
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Welcome, Isaac.
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Connor, thank you for having me.
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Thank you.
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It's a pleasure to be joined by you.
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I just we're both just at the glamping show, and Isaac was a keynote speaker there.
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Sadly, I missed it, but I heard great things from the people who got to see.
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For those of you who might be living under a rock and don't know who Isaac is, he's kind of one of the bigger names and more influential people in the unique stay and hospitality space.
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He's the you know founder and former owner of Live Oak Lake, which was acquired for several millions.
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And since then has opened the Experiential Hospitality Group, which is essentially kind of like a masterclass group for operators to exchange information and insights and to network.
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And then he's got at least three other properties that I'm aware of: an orchard, a train car, and a nook, all very different, but with fine, fine craftsmanship and attention to detail, of which I believe have been highly successful.
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And then Isaac has attracted quite a massive brand for himself.
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I know he's got 80,000 followers on Instagram, many, many thousand followers on X and YouTube.
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And uh yeah, so he's an important guy.
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So listen to uh he's been through the ringer, so I'm happy to have him on.
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And yeah, Isaac, what are you how are you?
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What have you been up to?
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It's I'm I'm good.
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Yeah, I can't believe we didn't run into each other at the clamping show until just a minute ago.
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I didn't know you were there, but that was a little bit of a whirlwind.
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I've been traveling a lot.
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So this year, earlier this year, I sort of decided because I'd been getting all these invitations to to speak, which are which is very humbling for me because I don't think I'm anything special, but I'm you know obviously flattered when people want me to come and share what I've learned and with their audiences.
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And so I love people, I love connecting with people in the real world even more than way more than social media.
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So I decided at the beginning of this year, I'm going to take advantage of as many of these as I can this year only, and we'll take it, take it from there.
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But you know, I want that, I want that opportunity to to build real relationships.
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So I've been on like a dozen trips this year for those kind of events, and then this past month, this feels like I've been traveling a ton.
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And right now I'm right in between two trips, so you're catching, catching me at the right time.
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But yeah, it's been it's it's been a whirlwind in a good way.
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It was in Mexico a couple days ago, was in Colorado and Tennessee just before that, and have been helping to evangelize the future of hospitality and travel, which is, in my opinion, these small experiential, story-driven stays.
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So it's pretty exciting.
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I love it.
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And was is was Tori and Seth down there too?
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I talked with them on the way out of the show.
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They said they were headed to Tulum.
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Yeah, yeah.
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We ran into each other in the airport, which was fun, as well as Ben Wolf, who was also at the show.
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And what show was this?
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What was what show was this?
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It was a it was actually a mastermind group.
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There's a guy named Rich Summers who does like a boutique hotel mastermind, and so he brought all the about a hundred plus folks together in Tulum, which was my first time to that area, and including some like bigger real estate names.
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And yeah, we it was a two-day event of lots of different sessions geared around real estate and hospitality.
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Did you get to do any fun stuff when you were there?
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You know, I did not, besides uh just hang out with people.
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I wanted to like go, well, Ben and I snuck away one night actually, and we went.
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Have you seen Azullik before on Instagram?
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Is that the kind of stick-built one on the coast with the really interesting architecture and like structures?
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Yes.
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It's probably like one of the more kind of like one of the OG landscape resorts.
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I think it was built like 20 years ago, actually, but it is quite a marvel.
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So Ben and I, he funny story, Ben's partner Jesse in Owassi lives over in Portugal and recently was playing tennis with this random dude who turned out to be the brother of one of the owners of Azulek.
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So through this roundabout connection, we got hooked up to some of the ownership down there.
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So we he went and got a tour, and then we went and had dinner, and you know, got to walk around the property, which which was really inspiring just to see.
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Tulum obviously has a lot of cool properties.
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It also kind of sort of has a bad rap because there's a lot of projects that are kind of half done, and we ex we got to experience that firsthand.
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Like the place we were staying was this incredible architectural masterpiece.
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Like if that place was in the States, it would definitely be getting like all of the headlines and architectural publicity.
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It uh it almost looks like this Colosseum, like it's this four-story, three towers that sort of make up this circle.
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And in the middle, there's just this huge forest and a pool and trails.
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And but I mean, like you drive through you drive down a dirt road that feels like you're on the moon for like half a mile just to get there, and then like immediately adjacent is this huge eyesore of a construction site that apparently was started like you know two years ago, and then they just totally abandon it during the foundation stage, and that kind of stuff is all over the place.
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So it's it's a weird juxtaposition of incredibly beautiful, innovative, you know, creative structures and just third-world country through and through, I guess you could say, which was that's what I love about travel.
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Like you see new things, you experience new things.
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On the architectural front, it was so cool in different places we went where the event was hosted and where I was staying, just to see, again, like what people do in other places, especially somewhere like Mexico, where labor is so much cheaper and where I feel like regulations are so much less of an issue.
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They just build very creatively.
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And that's always been an inspiration for me.
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But again, that was a new region for me to go.
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So I came away with a lot of architectural inspiration, if nothing else.
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You take a lot of photos.
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Yes.
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Yeah.
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Yeah.
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I I went to Tulum with my girlfriend a year ago to go scuba dive the cenote, which by the way is one of the most epic things I've ever done.
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So highly recommend it if you end up going back there.
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It's like a top five life experience.
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Somebody invited me to come to a private one because I know a few folks down there that like own cool properties, and I just ran out of time.
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But that that I've seen those pictures, they look incredible.
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And yeah, you're right.
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Tuluma is such a fascinating place.
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One of the best places in the world that does this indoor-outdoor concept in so much of its architecture where it's they're really meshed and it's just amazing.
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Obviously, they have the weather, the warm weather to support that and kind of a lack of bugs.
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Which makes it really easy to do that.
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But yeah, like even just looking through Airbnb at places to stay there is like you could do it for hours because the the places are just so beautiful and so unique.
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So I'm sure you're familiar with the term biophilic design.
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I'm not actually, so please school me.
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So this is definitely for me like a huge guiding light.
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Basically, the idea is that you're connecting people with nature through the built environment to improve health and well-being.
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And so obviously, natural light, plants, water, natural materials, organic forms all you know help foster that connection, that sense of calm and harmony.
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But I felt like multiple, again, like multiple structures and places that I visited there just crashed it out of the park with biophilic design.
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Like trees coming out of you know the side of a building and plants just enveloping it to where it truly feels like yeah, you're living, you're living in nature, and those lines between indoors and outdoors are blurred.
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So that was one of the most inspiring parts.
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Yeah, absolutely.
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It's it's super cool.
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With that weather and lack of regulation, it you it really produces some incredible stuff.
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I'm very jealous of that, both those things that they have.
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Yeah.
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What uh so I mean, I want to spend a little bit of time just talking about Live Oak Lake simply because that's important to kind of your backstory, but I don't want to spend too much time on it.
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I want to get to what you're working on now.
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But maybe could you tell the audience just a little bit about that project for their own context?
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Sure.
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So the story of Live Oak Lake in a nutshell is five almost five years ago now, I had a dream to create something that I didn't think ever had existed, which was this charming village of caverns in the middle of Central Texas around the lake.
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And so through a through a 12-month period of just sheer determination and a lot of luck, good timing and willpower and team effort, was able to buy five acres and design and build seven really beautiful modern cabins, dig a dig a lake, create a common space and trails and just this really rich outdoor experience.
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And then launched the brand in January of 2022 and had this terrific, you know, terrific reception from everyone, really.
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We were getting like rave reviews and tons of income, and like all of the risks seemed very validated.
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And then two weeks after opening, I woke up and my entire life changed because our entire account on Airbnb was suspended with no warning, with no recourse.
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And it was a much bigger deal than I expected because Airbnb basically told me, tough luck, there's absolutely nothing we can do.
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You cannot talk to that department, and sometimes these properties never come back online.
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And at that time, there were very few examples of and I really didn't know of any of you know Airbnb properties marketing directly.
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And so through through meeting a mentor randomly, because I wasn't really on social media at the time, I got the idea to run a giveaway with an influencer, spun up a website, threw up an Instagram page, Venmoed the lady $950, and you know, seven days later we had $40,000 of direct bookings, all yeah, all direct and over 5,000 followers, kind of starting from from scratch.
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And then just as luck would have it, or God or something, like two days later, Airbnb restored the entire account.
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So if it hadn't been for that window, I never would have took took that leap.
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And we doubled down and went all in direct and grew a pretty big following, about 130,000 followers in the first year.
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And then at the 18th, 18 month mark, with you know, with a million dollars top line the first 12 months, $550,000 of bottom line profit, 80% of all bookings direct.
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We sold the property and the brand for about three times what it cost us to build.
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And yeah, and now since then it has continued to expand the brand has the follower count.
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And so that's Live Oak Lake.
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Cinderella story.
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You know, it's that's amazing.
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And what what would you attribute that success to?
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You know, was it the location?
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Was it the property design?
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Was it the unit design?
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Was it how you marketed it online?
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Like what do you attribute that to?
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It's really difficult.
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I think it's impossible to pinpoint one thing.
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Specifically, I think it is the culmination of a ton of little things, little ordinary decisions that were made with just like an unreasonable amount of care and intention.
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And specifically in the design of it.
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So everything from the site plan and how we kind of leaned into the natural features of the property, the you know, the topography, we dug out this, we turned this swampy marsh into this beautiful lake.
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We cleared out all these briars to expose these incredibly beautiful live oak trees, and then we really built around that.
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And instead of trying to squeeze as many units as we possibly could to juice our numbers, we cut back on the number of units.
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We spent more money than we should have.
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And, you know, just in every way, even though the utilities cost us a lot more, the access did, we wanted to create the most magical experience possible.
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And I think you, I think the takeaway there is like you have to be a visionary.
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You have to be, and you have to have conviction because a lot of people are going to try to steer you away from, you know, again, spending, in that case, like $250,000 per 400 square foot cabin.
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And that's with, you know, with no design or construction management fees, because I was kind of doing all of that.
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There's so like I wasn't being driven by the numbers.
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I knew just like in my heart of hearts that the feeling would be there and the numbers and the money would follow if the feeling was there.
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And so the feeling was the product of all those little decisions, all the way down to you know, the silverware that's in the drawers, literally.
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And so I think that just being again unreasonable about all of those details, including in the hospitality itself.
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So I assume you've read that book, Unreasonable Hospitality.
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I've I haven't read it like cover to cover, but I've like read sections.
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I'm very familiar with the concept.
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It's like my favorite book.
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Definitely my favorite business book.
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But so yeah, I mean, I just love how simple he makes it because it applies to pretty much every business and every industry.
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But the you know, the the concept actually let me just look it up because there's this great quote that from Penn and Teller, the magic show.
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So this was Teller.
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He said, sometimes magic is just someone spending more time on something than anyone else might reasonably expect.
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I think that's what it comes down to.
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It's just that that extra 20% in all those little details that produces that, you know, 80 or 800% effect.
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And if it means doing 50% less in terms of quantity or like footprint that you're trying to accomplish, but being more concentrated, this is the theme I try to drive home more than any other.
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If you want my number one piece of advice to build a world-class micro resort and it's that's just gonna crush it, or if you want my advice to like live a really meaningful life, I'm not that necessarily qualified to give it, but it's the same.
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Do less things and do them better.
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Do fewer things and do them better, build fewer units and spend more money.
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And so I think that that was the product.
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Connor, do you want to talk about glamping permits for a second?
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Yeah, it's it's hugely important.
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The two biggest roadblocks to getting you know glamping projects built is the funding and the entitlements and the permitting.
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So it's it's a really big deal.
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Yeah, and it can be a very challenging and you know, sometimes quite intimidating process, not just putting all the materials together, but presenting it to the county, often going through the public hearing process, which can be really scary and sometimes quite nasty.
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And that's why it does help to have people who are used to doing this on your side.
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And that's why we're delighted to announce that uh today's sponsors are Clockwork Architecture and Design.
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They're an architecture firm based in Kansas City.
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They have a specialist outdoor hospitality division that have done tons of work in the glamping and RV resort space.
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They're experts at designing and permitting glamping resorts or whatever kind of outdoor hospitality project it is.
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They'll come to your property, walk the land with you, work at work through a concept with you, design the whole layout of the site, and then gather all the materials for the county, deal with the county, deal with the public hearings if you'd like them to.
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And they're just you know all-round fantastic partners to have on your side.
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And Connor, I know you and Sage have had some pretty good experiences with clockwork as well.
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Yeah, we've we've been working with clockwork literally the entire time that I've been at the company, so for four years.
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And so we've done dozens and dozens of projects with them.
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And love the chance to get to work with them because you know they are the best and most experienced in the industry.
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They they really know outdoor hospitality and they've designed some world-class sites.
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It's just, yeah, they're they're very talented.
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You'd be in good hands to work with them.
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Yeah, and I can't vouch highly enough for Christian Arnold at Clockwork, the owner.
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He's a you know fantastic guy who cares about what he does, looks after his clients, very reliable communication-wise as well.
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And yeah, we're we're super excited to partner with them on this.
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So if you are looking for site designs, you know, entitlement help, whatever it may be in that field, then do con contact Clockwork Architecture and Design.
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And the way you can do that is by emailing Christian at clockwork-ad.com.
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Uh, all the details will be in the description as well.
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So go check that out if you want.
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Um, so yeah, thank you, Clockwork.
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We couldn't recommend them highly enough.
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Go check them out.
00:17:29.279 --> 00:17:36.960
I was perusing your website, isaacjFrench.com, and I I want to read your manifesto because I I think it's so poetic and eloquent.
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Beauty matters, and it starts small.
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Beautiful communities begin with welcoming homes.
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Before great towns, build warm kitchens and rich traditions, build for children to play and neighbors to gather.
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If you want to change the world, start small.
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Plant a tree, sweep your street, break bread, break bread with a stranger.
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Together we can make the world more beautiful.
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One corner, one space, one story at a time.
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Which god dang Isaac, that is like that just hits.
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And then your mission statement is I make art in nature, restoring old train cars, building cabins and villages, planting orchards and gardens, and making places that make you feel alive.
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But these aren't just spaces, they're immersive little worlds, they're experiences.
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Every moment and detail is designed to draw you in, a little like your favorite art or music does.
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And I think that's why your uh your you know personal brand and your uh properties have done so well.
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You're like the least uh commercial, like least a corporate guy I've ever, you know, followed who's you know so successful in business.
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For someone who's so successful in business, you seem to care very little about what most people in business care about, whether that's like profitability, bottom line, nail and scale, like IRR.
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Like I don't really hear you ever talking about those.
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It's it's it's more about like I'm gonna take care of the other person and the rest will take care of itself.
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And I think that's a huge key to your success in a really wholesome way.
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So like I I I love I love that aspect.
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And then how how how did this acquisition come about?
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Is it something you were expecting, or did you did you design with that in mind, or did someone just approach you?
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In the back of my mind, the whole time we were building, I entertained the notion that one day we would sell, or at least we'd you know be open to it.
00:19:29.440 --> 00:19:53.599
It's really weird because when you go through, I mean, you've you you know you're an industry veteran, but like when you go through the blood, sweat, and tears to like give birth almost to a property like that, you become emotionally attached to some degree because it feels like your baby, but it but you also, like, for me at least in the moment, I was so burned out, to be honest.
00:19:53.599 --> 00:19:57.200
Like I was loving it, don't get me wrong, I loved it through and through.
00:19:57.200 --> 00:20:21.359
But the stress that comes even maybe it's just, you know, when you're compressing a timeline like that and all the things you have to battle through to make that happen, you know, the hundred-hour weeks nonstop, the delays, the setbacks, the price increases, the budget shortfalls, just everything, it adds up, and you sort of get a little bit burned out at times, and and you're like tempted to sort of take the payout.
00:20:21.359 --> 00:20:25.279
Now, in the moment, you can never do that because you've got to actually bring it to birth.
00:20:25.279 --> 00:20:32.160
Like, you've got to have that one thing, that one thing on your resume that will like hopefully help set their trajectory for the other things.
00:20:32.160 --> 00:20:40.079
But in the back of my mind, I was like, look, if somebody came along and wanted to pay us a bunch of money, I'm not gonna be sad.
00:20:40.079 --> 00:20:46.640
So it was a little bit of like that mixed with, I'm gonna be very sad because this is where I've emotionally invested my life.
00:20:46.640 --> 00:20:51.759
And it's the culmination of so many of my own personal passions and dreams.
00:20:51.759 --> 00:21:00.880
But basically, the way it happened is we listed the property for sale at four months in for what I thought was a crazy price.
00:21:00.880 --> 00:21:02.640
It was like six million dollars.
00:21:02.640 --> 00:21:06.480
We had we had spent, for context, 2.3 million to build it.
00:21:06.480 --> 00:21:12.240
And we got a ton of interest all of a sudden from buyers, which surprised me.
00:21:12.240 --> 00:21:14.720
What seemed to be interest, but I'd never been through the process.
00:21:14.720 --> 00:21:16.480
And it was really just tire kickers.
00:21:16.480 --> 00:21:27.200
It was people that, you know, had seen all of the hype around the property and really wanted to like dig into the numbers and just kind of, you know, glean whatever they could glean.
00:21:27.200 --> 00:21:41.440
And so the takeaway there was no serious buyer is going to entertain you if you don't have 12 months at least of operating history, no matter how strong your cash flow is, your follower growth, your projections, all that.
00:21:41.440 --> 00:21:50.079
I guess I didn't expect that because on the other hand, the bank had reappraised the property at four months in for twice what their initial appraisal had been.
00:21:50.079 --> 00:22:02.160
And we had refinanced it, we had completed a refinance six months after opening for a hundred percent of the entire construction cost, plus around $400,000, which is crazy.
00:22:02.160 --> 00:22:10.240
So we were we now had, you know, everybody paid off and we had $400,000 tax-free to reinvest however we wanted at four months, uh, six months.
00:22:10.240 --> 00:22:20.240
But the buyers like are they mean business and they want to see serious historical numbers at a T PL, a trailing 12-month PL.
00:22:20.240 --> 00:22:25.920
So we took it offline about a month later, and then at 12 months, relisted it.
00:22:25.920 --> 00:22:39.599
It also helps because we had a more specialized broker, shout out David Dumental with the Intrepid Group, who did a great drop, great job of just like sending it specifically to experiential buyers.
00:22:39.599 --> 00:22:48.319
And we got a bunch more interest now that we could demonstrate that those number that those projections actually came true.
00:22:48.319 --> 00:22:50.799
And we got under contract.
00:22:50.799 --> 00:22:53.920
So I'll just tell you the story real quick of like how it all happened.
00:22:53.920 --> 00:22:59.039
We got under contract for six six and a half million, which just seemed like a great price.
00:22:59.039 --> 00:23:04.000
The second time we relisted, we were a million higher than the first.
00:23:04.000 --> 00:23:14.319
But we came down a little bit, six and a half, and the buyer put down like 20 grand of earnest money, and uh they did due diligence, everything checked out.
00:23:14.319 --> 00:23:26.640
We were a day away from closing, and they scheduled this celebratory call, which I should have been suspect right away, to sort of just like, I guess, congratulate one another on the transaction before it had actually closed.
00:23:26.640 --> 00:23:33.279
So we get on the call, and their lawyers on the call, and he's like, actually, we need to tell you that we had a little hiccup with the financing.
00:23:33.279 --> 00:23:35.279
We want an additional two weeks.
00:23:35.279 --> 00:23:40.559
And I should have known right then and there, but basically the deal was through.