Radical Wealth Plan – “How Buying a Failing Business Turned Into a Short-Term Rental Empire”

Podcast: Radical Wealth Plan
Host: Paul Morris
Guests: Josh Rudin & Patrick Swiatek
Date: February 24, 2025

Episode Overview

This episode explores the inspiring journey of Josh Rudin and Patrick Swiatek, two young entrepreneurs who turned the acquisition of a failing property management company into a thriving short-term rental business in Joshua Tree and beyond. Host Paul Morris, himself an experienced investor, dives deep into how the duo’s unique backgrounds, willingness to take risks, and smart partnerships fueled their unconventional path to real estate success. The conversation ranges from first property buys to industry insights on market timing, valuation, regulation, the power of local knowledge, and actionable advice for budding real estate investors.

Key Discussion Points & Insights

1. Backgrounds and Early Entrepreneurial Roots

• Josh Rudin’s journey: Began working at a deli at 19, mentored by investor Jed August who specialized in creative financing (“subject to” deals). He bought his first mobile home for $23,000, yielding $800/month (approx. 25% return), funded initial deals using college savings, then leveraged hard money and friends/family as he scaled up (03:47–08:13).
  • Quote: “Without this leverage, I’d be nowhere even close to where I am today.” – Josh Rudin (08:24)
• Patrick Swiatek’s experience: Started a tech company at 14, earning $40,000/year in high school by selling gaming server space. He describes his push-pull relationship with traditional success versus the call to entrepreneurship, building businesses and learning through failures before entering real estate (12:58–17:35).
  • Quote: “From a young age of 12, I was looking up employment documents online… it’s the entrepreneur.” – Patrick Swiatek (14:04)

2. Transition to Real Estate & Short-Term Rentals

• Patrick gained experience scaling an Airbnb-focused property management company in LA before starting his own investment in the Smoky Mountains, guided by local experts and analytics (17:17–24:13).
  • Quote: “I just found the experts … and I followed their advice.” – Patrick Swiatek (23:48)
• Josh became interested in Joshua Tree during COVID, noticing exceptional rental income potentials and eventually joining forces with Patrick: Josh brought capital and construction know-how; Patrick added analytical, operational, and tech skills (21:35–22:21).

3. Building the Business & Partnership Model

• First deals were 50/50: Patrick found deals, Josh funded renovations and mentored on-the-ground. They self-managed at first, realizing quickly the need for local teams for true scalability (22:29–28:08).
• They leveraged economies of scale by combining their resources and soon transitioned into property management via acquisition (27:34–29:05).

4. Buying a Failing Property Management Company – Lessons Learned

• Acquired a Joshua Tree-based property management company managing 15 Airbnbs (later scaling to 33+, with more in the pipeline) for $100k up front, $60-100k more pending performance (29:36–30:22).
  • Quote: “We realized to this day that we got ripped off bad because we didn’t understand how to value a company... we bought ourselves a job.” – Josh Rudin (29:36, 32:34)
• Key pitfalls: Underestimated the value of owner labor (the “7-Eleven effect”), hidden payroll/tax liabilities, and loss of staff after acquisition.
• Upside: Gained a foothold, a client network, and real-world expertise that accelerated future opportunities (36:59–39:10).

5. Scaling through Smart Systems

• Introduced virtual assistants (VAs) for support, freeing up founders to focus on business growth rather than day-to-day tasks (33:24).
• Emphasize “work on the business, not in the business,” as a critical transition for scaling up (33:53).
  • Quote: “We want to work on the business, not in the business.” – Josh Rudin (33:53)

6. Market Analysis – Timing, Regulations, & Strategic Investments

• Discussion on whether it’s a good time to buy: Divergent views, but agree that investors should buy under market value and create value, not just pay market price (09:30–12:19).
• Importance of buying in regulated markets: Too little regulation (e.g., Dallas, Houston) can mean abrupt bans, while stable ordinances with local support (like Joshua Tree, Yucca Valley) are safer investments (40:14–44:13).
  • Quote: “It’s actually more risky to go to a place with absence of regulations... safer to go to a place like Joshua Tree where not only do they support it, but they need it.” – Patrick Swiatek (41:27)

7. Value Creation – Stand Out or Fail

• Market is oversupplied in Joshua Tree, so differentiation via unique amenities (“Instagrammable” features) is key.
• High-ROI upgrades include pickleball courts, domes, game rooms, and hot tubs—things that drive bookings through photos, not just luxury finishes (44:37–48:36).
  • Quote: “Short term rentals are really all about what the photos look like.” – Paul Morris (46:48)
• Counterintuitive insight: One-bedroom homes on big lots and large “sleep-18” configurations dramatically outperform mid-sized homes due to lack of supply and unique group demand (50:55–52:22).
  • Quote: “A one-bedroom, boy, we rent them so fast, we turn them over so fast.” – Josh Rudin (50:55)

8. Actionable Advice for New Investors

• Find experienced, local experts to guide purchases—don’t just follow generic advice (23:48, 44:47).
• Invest for “value add,” not turn-key; buy under market and plan to enhance with unusual amenities.
• Leverage resources like STR Nation—Patrick’s networking group and educational platform (25:00–26:19).
• If single-property: Still need to invest in standing out; access Patrick & Josh for advice, referrals, or connections to the right agent.
  • Quote: “You won’t do well if you don’t put money in... you need to stand out, you need to have the right location.” – Josh Rudin (55:23)
• Abundance mindset: Success comes from sharing and acting on information, not hoarding it (57:13–57:44).

Notable Quotes & Memorable Moments

• “Leverage is everything. Without this, I’d be nowhere even close to where I am today.” – Josh Rudin (08:24)
• “Buying a job... we bought ourselves a job.” – Josh Rudin (32:34)
• “You cannot learn how to ride a bicycle in a seminar. You’ve got to go and feel it, and that’s how you learn how to do it.” – Paul Morris (39:42)
• “Instagram, how does it photograph?” – Paul Morris on rental amenity priorities (56:27)
• “Abundance mentality... not everyone takes action.” – Josh Rudin (57:43)

Timestamps of Key Segments

• 03:47–08:13: Josh’s real estate origin story, first deals, power of leverage
• 12:58–17:35: Patrick’s entrepreneurial journey, from tech to real estate
• 21:35–22:21: How Josh and Patrick partnered, combining skill sets
• 29:36–30:22: The acquisition of the failing property management company
• 33:24: The role of virtual assistants in scaling up
• 36:59–39:10: Lessons from overpaying for a business and finding silver linings
• 40:14–41:27: Why regulation in short-term rental markets can be your friend
• 44:37–48:36: How to stand out – amenity arms race and “Instagrammable” features
• 50:55–52:22: Hidden gems: maximizing returns with one-bedroom or sleep-18 setups
• 55:23: Advice for investors with less capital—focus on value add and guidance
• 57:13–57:44: Abundance mentality and the rewards of proactive learning

Action Steps & Resources

• Connect with Josh (@joshrudin) and Patrick (@patryk_swi) on Instagram for advice and referrals.
• Join STR Nation (Short Term Rental Nation) via their Facebook group or yearly conference for networking and education.
• If investing: prioritize markets with thoughtful regulation, unique value-add opportunities, and leverage expert local knowledge.

Closing Thoughts

This episode is densely packed with real-life lessons on leveraging partnerships, learning by doing, and adapting quickly in the evolving short-term rental landscape. Josh and Patrick’s story is a testament to action over analysis, turning setbacks into scalable systems, and building true wealth through collaboration and continuous learning. Whether you’re a first-time investor or a seasoned pro, the episode’s practical wisdom, candor, and entrepreneurial spirit deliver tremendous value for all listeners.