Podcasts about pete you

In today's episode of the "The Runway Decade Podcast," hosts Bill Bush and Pete Bush, advisors at Horizon Financial Group talk to Gene Plauche. He predominantly works in the insurance side of the business, with one of the prominent insurance companies, Concourse. Gene connects with financial advisors to help them supply financial insurance solutions for their clients. Episode Highlights 02: Gene talks about his childhood and how he grew up amidst 6 siblings. 51: Gene talks about his school and university days and later how he came to know about the financial service business. 00: Gene shares how he was recruited out of college to get into the financial service and insurance business. He also speaks about the factors that motivated him to stay in this business. 05: Post his father's death Gene got exposed to a new side of the finance industry and now he uses his knowledge and experience to help others. 45: Gene talks about his wife and 2 kids. His son wants to be a radiologist and daughter a forensic psychologist. 56: Gene talks about his 50th birthday and how he celebrated it with his family. 08: Gene travels a lot as a family together trying to create some memories. Retirement to him does not mean completely stop working especially in the finance industry. 00: As per Gene one must consciously think about between time, money and health. You need your health and everything need to be able to handle that. But you need time and money to do those things. And if you wait till you are 75, you may have time and you may have money, but you may not have your health. So, you got these little windows of time to balance these things. 23: Concourse is considered a broker general agent out there. Gene says that they work in the risk management side of things with insurance products and things of that nature, fully licensed, but really kind of focus on the risk management side of things. 49: Wealthy people do tend to look at long term care as a form of asset protection just in the sense that if one spouse needs the time to go in a facility or a lot of thing times people overlook the fact that it does cover in home care. 08: Gene explains how since the pandemic, the long-term care, home health side of things have exploded. Three Key Points Gene talks about his mindset post turning 50 years old. He talks about his happiness that he is healthy at the age of 53. The 50s is kind of like the first time that this concept of retirement sort of hits people in the face. It becomes a real thing. Gene shares what does that word retirement means to him. Gene talks about his company Concourse. He talks about the services offered by his firm. Tweetable Quotes "It's cool in your 50s that the conversation you are having with your kids got changed so much, as they do in her adulthood and figure out their path and where they want to go." - Bill "Retirement to me means I am going to say freedom more to go and not be tied to a nine to five job or an 8 to five job, but to give up, be able to go do some things that you want to do." - Gene "We have guys that are affiliated with our group here that are that are 80 and still going strong, still making their ten goals for the year and planning and growing and prospecting and all those things." - Pete "You got to have a plan for everything that we do and a lot of our products and services that we do just kind of fit in within that plan of what you want to achieve throughout your life because your life is a plan." - Gene "With the pandemic they a lot of people have pulled their loved ones out of a facility and brought them back home and said, you know what, I can control my home environment, so I am going to have them stay here and just pay an assistant." - Gene Resources Mentioned www.runwaydecade.com https://www.linkedin.com/in/gene-plauche-ii-lutcf-fss-cltc-457ab836/ plauche@ concoursefinancial.com

This episode of the In The Cl ub Podcast by Club Colors features Pete Durand, Chief Executive Officer of Cruxible Partners and host of the Eating Crows Podcast. More and more people are utilizing LinkedIn and building their brand through content creation. It's never too late to start investing in your brand, but you should start now!Pete joins the show to talk about Cruxible Partners and how the Eating Crows Podcast came about. He shares valuable insight on weathering through an economic crisis and how you can stand out during these times. He also talks about why creating a branding experience is integral as a business owner, recruiter, or even as a job candidate. HIGHLIGHTSHow Cruxible Partners came aboutRecruiters that are saying that they're doing what they're not doing will be found outHow folks can separate themselves from competition during economic crisesPete's time working with Alex B SheridanSetting a goal for LinkedIn interactionsCreating an event-driven branding experience QUOTESPete on creating a culture whether for remote work or in the office: "Again it's back to the roles and the type of culture. And you have to see the leadership walk the talk. They walk the halls. Do they really care? Are they hoping you succeed so that everybody succeeds? That's exhausting by the way. I don't think people realize that's hard to do."If you haven't invested in your brand already, you're almost screwed, says Pete: "You're going to go quiet, then you're already far too quiet. And if any of your competitors that have built a brand and their employees truly like working there, even in a tough downturn, know that their friend got let go and understand it and still believe in a brand, they will succeed."Key principles of inspiration that Pete has gained over time: "Never stop learning. There was a period of time when I was running one of my first start-ups and about five years I got so busy and deep into the business that I stopped seeking mentors, I was just trying to survive. I just realized I wasn't improving, it wasn't helping the company and my family and I had some mentors and good people in my life that took me on the side." Connect with Pete in the links below:LinkedIn: https://www.linkedin.com/in/petedurand/Eating Crows Podcast In the Club by Club Colors is sponsored by our proud partners:Maple Ridge Farms | mapleridge.com

Pete Neubig has been investing in real estate since 2001. He has owned and managed 39, 52, and 100-unit apartment complexes. He currently owns single-family homes and a 52-unit apartment complex. Pete created a property management company based on the motto "by investors for investors". His property management company has clients from Houston and all over the world. His technology-based systems allow owners to see everything that is happening at their property without having to be involved. Pete leverages virtual assistants to do more than he can do on his own. A real estate virtual assistant (VA) is a business admin who essentially acts as your right hand. A real estate VA can offer a variety of business services in-person or remotely. The right VA can cover diverse tasks like lead gen and database management, or even finance and marketing. Tune in for today's episode where Pete talks about how he uses virtual assistants and what real estate investors should be aware of when they want to take this step in building a team. Episode Link: https://www.vpmsolutions.com/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: Hey, everyone, welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and joining me again today for a recurring visit is Pete Neubig and he is the founder of VPM solutions. He's gonna be talking to us today about virtual assistants and what we as investors should be aware of and how we can utilize them to our advantage. So let's get into it.   Pete Neubig what's going on man, you are back for more didn't have enough the first time we had.   Pete: Man, Michael, thank you so much for bringing me back on. I had we had such a blast. You know, last time just talking about my investor jury and then right at the end, we got to talking about my new venture and so I'm glad, thank you so much for having me back to talking about my new venture.   Michael: Of course, no, super, super excited. So for those who didn't catch the tail end of our conversation from your prior episode, give us a quick and dirty who you are, and what you're doing in real estate and what your company is all about.   Pete: Sure. Well, my name is Pete Neubig. I'm out of Houston, Texas, I started buying properties in 2001. I bought so many that I failed miserably at it that I ended up creating a property management firm in 2012, sold that firm in 2019 and in 2020, I started VPM solutions and we went live with our product in 2021 and VPM solutions is think of it as a dating service. It's like it's an online marketplace that connects people in the United States and Canada, like employers, you know, people in real estate, with contractors in mainly Philippines and Mexico, but we're in about 60 different countries where we have different contractors and so that's you know, so we're like, like dating service, like match.   Michael: I love it, I love it, I love it. Okay, so who are your clients? Kind of on the investor side and then who are your contractors on the contractor side, just random, random people?   Pete: Yeah, that's a great question. So we really try to stick with the real estate industry. So because I'm a property manager by trade, we started with property management and so we targeted property managers in the United States and Canada, right, because in property management, as most of your clients know, especially if they self-manage, is a process oriented and is a people oriented business, right? It there's a lot of things you have to do manually and so you can't automate as you can automate a lot. But there's still a lot that has to be done manually. So we started there. So that's our main clients, we're now breaking into the real estate and brokerage side of things because there's a lot of work, there's a lot of help, they need like transaction coordination, and just generating leads and appointment setting, so we're there, as well and on the contractor side, what we're looking we advertise we do quite a bit of advertising in different countries, just letting people know, hey, you can work from home, you can pretty much make a little bit more money than what you can get, you know, in your environment and we actually build some, it's called LMS. But it's video training, that you can literally take video training for free to learn more about right now is property management. But we're going to be built, we're going to be throwing some other videos out there always well, we'll be adding more video training out there and so are our contractors, somebody who's bilingual, someone who's educated, and somebody who's looking to make a little bit more than what they what they make in their own in their own country, and that they want to get into real estate, mainly property management or in the real estate industry.   Michael: Okay, interesting. So I am like, the whole concept of a VA is I understand it, but it's totally foreign to me, I've never utilized one but I know people who have so give all of our listeners who are listening, a little bit of background or insight like why should someone consider a VA, like what benefits do they bring?   Pete: Yeah, another great question, man. It's like, so, here's the main thing, right. What happens is, you get so much work, that you need to hire somebody, right? Whether it's whether you're self-managing, and like me and Steve, what my business partner, we were self-managing properties and next thing, you know, we had all these maintenance requests, we had all these leases that had been renewed and we had all these resident questions and we have lease marketing, and it gets daunting and all of a sudden your conical passive job becomes very, very active very quickly and so now you have to either A) hire somebody or B) you know, hire a property manager or hire somebody internally, right and so when you start looking at assistants in the United States, what happened was, especially after the pen EMIC with inflation. So what's happening is those low level low enjoyment tasks that that you don't want to do as the you know, as the investor or as the self-manager you want to give to somebody else? Well, if you, you try to hire that person United States, typically what happens is that job role doesn't pay what people want.   So for example, it might be like the job role might only pay 30,000 a year, right? That's a full time, whatever, but the person wants 50,000 a year and if you pay that person, what they wanted, you would make you would be negative cashflow, you will make any money. This happens quite a bit when you're managing your own properties and you're kind of building your portfolio and adding more properties to your portfolio. It's like all of a sudden, you're overwhelmed overworked, to hire somebody, now you're cash negative and so and then what happens is with these folks, what I found in my personal job, my personal company, Empire industries, when we when we started, we manage over 1000 units. When I hire people in the US, they have like a GED, or that you're getting very, like you're getting very low, you know, schooled, low education type people, and what happens is one, they're not appreciative of the opportunity get, and then two, they always want more money, and then three, they always bring in their outside challenges into your business, the car doesn't work, they take more time off, you know, they have family drama, that kind of comes into your business and so in the past, what happened was, you have to be stressed out to make money in property management. So I have I have, I have, I have all these doors are managing, I have all this work that needs to be done, I have to hire somebody. But as soon as I hire somebody, now I'm not profitable. So now I have to go get more properties to manage, so that I can bring the income up and now everybody's stressed again and the reason why everybody's stress is because I'm hiring people in the States, which, you know, demand a much higher hourly rate, if you will and so what I realized is, if I, if I hire if I outsourced, in a second or third world country, I can get educated people, bilingual educated people, that will work for a lot cheaper than somebody in the US and it's not, I'm just going to pay them less because they're in the Philippines or they're in Mexico, it's that in Mexico, $10 an hour goes a lot further than $10 an hour in Houston, or $10 an hour in Northern California. So the way I tell people look at is like this, if I took if I was doing the same job in Northern California, as I do in Houston, Texas, I'd get paid a lot more for that job in Northern California, because the cost of living, right, and then I'd get less money doing the same job in Houston, because of the cost of living and I probably make, I probably even get paid less if I was in like Arkansas, because of the cost of living. The dollar still travels just as far. Well just think of Mexico, as you know, as the next level down of cost of living. Just because you're paying somebody $10 an hour doesn't mean you're taking advantage of them. Matter of fact, $10 an hour in Mexico is a very good hourly wage. It's actually a very good wage and then in Philippines, to give you an idea, Michael $4 an hour is a good wage in the Philippines.   Michael: Wow.   Pete: And you think you save yourself? There's no way we're gonna take advantage these people? No, I mean, $4 an hour is a good wage in the Philippines. So it's, you know, as a criminal getting paid very well here in the States and so, the reason why people are outsourcing is because I can get bilingual and by the way, most of these people are either their high school educated or greater. They have some type of education after high school, whether it be associate's or a college degree. So you're getting educated people that that are bilingual, for a fraction of the costs in the United States that you are in the United States and because these low level jobs can, you can only pay so much. Now you can actually pay what the job role requires, which means now you can make more money in the company, right and then I'll turn this around on how we actually helped our US people, because I had people in Empire that were that were making some money. The ones I hired the virtual team members like oh, Pete, you got rid of jobs. Actually, no, they got rid of themselves because I couldn't afford them anymore. They wouldn't work at the level I needed them for the company make money. But once I hired these other virtual team members in the company started making money, I was able to actually pay my US people more, I was actually able to get better benefits for my US people, right because these are contract workers in the Philippines and Mexico and you know, Costa Rica, wherever you're going to hire them from and so they're contract workers, so they work they get paid, that's great. But your team members in the US once a company starts making more money, you can treat your kids because their employees right so you can treat them better stock options or 401k, whatever it was. So for us, it was bonuses, it was higher salary and we started doing we started we started looking at it we start doing health insurance. So that's how we were able to benefit out team. So the next question is, well, what can a VA do that somebody in the US?   Michael: Yeah, that's exactly where I was gonna go with it.   Pete: What I'll tell people is the VA can do anything that the person in us can do except for two things. One, obviously, if they need to be physically at the property, right, right, they can't they can't do that and then we'll do if they need a license, if they need a license to do something, they can't do license act, right. So give you an example, though. We actually had one of our virtual team members do all of our lease renewals? Well, you say, well, P That's a licensee Act and the you know, you need to be licensed to do lease renewals and the answer is actually, you don't need to be licensed to just create the lease renewal, you need to be licensed to negotiate the lease renewal. So what we would do is 90% of our lease renewals were not negotiated, most people just sign the lease renewal, right, most of our owner clients, or our residents would just sign the lease renewal and the ones that would have questions, that would get escalated to our property manager and so what we did just that one, just that one job role, what we did is we literally took 90% of the work away from the property manager gave it to give it to the virtual team member and then a product manager took the escalations. Now, I'm a big proponent of it, the way you can save your company, so to speak, a lot of a lot of stress and noise is can you automate through policy and can you automate through, you know, computer technology, in this case, what we did in this, you have to look at it but in Houston, we know that the average rate, the average renewal rate would go up about 2% per year over time. Now, some years, it would go up more in other years, it wouldn't go up at all, it actually would go down. But over time we…   Michael: need in terms of like the rent, like how much rent, you're getting rent increase the renewal… Yeah, okay.   Pete: So we did is we just create a policy that our rent increases every 2% every year, and we put that in the lease. So there was no negotiating, right on the residence side...   Michael: It wasn't up for discussion…   Pete: Right, so but if people say, hey, I'm gonna leave unless we do XY and Z, well, that would get escalated but we were able to reduce the escalations because of the part because of the policy we were able to automate and then we on the on the owner side, we would send something 90 days out, hey, do you want to renew your release or not, right like, we didn't ask them what the amount was, we because we built the 2% and so we stopped doing CMAs. So it is a lot of grunt work that we can stop doing, which then allows your virtual team ever to actually do a lot more, we have one person for 1000, doors, doing lease renewals, and, and reviewing inspections.   Michael: one person for all 1000 doors…?   Pete: For lease renewals and inspections. Yeah…   Michael: Holy smokes.   Pete: But then I had one person that did all collections. So I'll kind of go through the whole thing, right. So like, you can have a virtual team member, their whole job literally could be making sure that your collections are being done, your notices are getting sent out and that they can if you have if you have a third party company like we did that handle the evictions, they can actually be the gatekeeper with that third with that third party company and do all that stuff. My property managers did nothing with evictions   Michael: What?   Pete: Yeah, yeah. So we again, we had policies in place, right. So if, if the resident owed less than 50%, we, we wouldn't file evictions, if they owed, you know, 50% or more, we'd file the eviction we like so we just put on a different policy. You teach the VA, what the policies are, and then they just follow the process and what's cool is they actually know the process better than you and they, hey, can I do this or this or this instead, and they tweak the process and you're like, yeah, that sounds so much better and then they own the process. So if you're like an investor listening to this, and you don't like magic companies, for whatever reason, by the way, obviously, I own a magic company, I highly recommend. But let's just say, let's just say that you don't like me had a bad experience, and you're gun shy. But what you're finding is your leases aren't being renewed, right? You're your maintenance is overtime, the phone rings you like, I don't want to deal with this. You hate when somebody moves out, because you want to deal with the turn, your books are a mess, because you don't have time to do the books because you're, you know, a high net worth individual working 70-80 hours a week as it is, then a VA could do all of that stuff for you. They can do everything, you got to train them, of course. So just step back, take two steps forward. But they can do your property accounting, they could be your QuickBooks, they could do your business accounting, they could do your maintenance coordination, they could do your turn coordination, they can do your collections or evictions. So they can do your utility turn on and turn offs, like so all that stuff that you like, oh my god, they could do your onboarding for you. So I was going to get a new property you got to enter all that stuff in the in the computer system. They can do all of that stuff for you.   Michael: If anyone's watching the video here, you see that my jaw is like on the floor. So for anyone listening I just want wanted to bring you up to speed. But okay, so peace on, let me just understand. So they could do, like they could do all of this stuff and literally anything I mean sky's the limit is and with regard to things that they can do other than the two things you mentioned the license act, and then anything that requires them to physically be there. But when it comes to accounting, I mean, one thing that I'm thinking about is, there's very sensitive information, there's banking information, there's pat, you know, credit card information, as part of the accounting process that I do personally. So am I going to need to divulge personal information and sensitive information to the VA or like, how does that work?   Pete: Yeah, so, you know, in most in most instances, like in your QuickBooks, and in any property management software, they have different levels of permissions and even in your banking, like I bank with Chase, and Chase has different levels of permissions. So I can give you all the rights to, to my, my, my VA team, right, which I did, I gave them all the rights, so they can see everything, they can reconcile the bank statements, they can, they can look at everything, they just couldn't make any payments, right, they couldn't make any transactions. So that's, that's what we did. Now, we also had two property accountants that they did probably accounts for our third party folks and so they had access to, you know, sensitive information. So what we did is we did a bet we did a thorough background screening, there's a third party company out there that can do background screening, and they came up, you know, pretty, they came out really good. So we went forward, and then we just had our cyber liability insurance policy just to make sure go again, because we're a property manager firm with over 1000 units that we manage. So we wanted to make sure that we you know, we took care of ourselves. But if you're an individual with a handful of properties, or a small property manager, then you can do all of this through the permissions that your banking and that your that your software allows you to do.   Michael: Okay and so as I'm hearing you, you talk about as a man, I'm getting really excited, I'm trying my the wheels are kind of turning on all of the things that I might be able to outsource. What are some things that you should definitely not have a VA do? I mean, have you seen some things go really sideways or go really south because someone said, oh, well, Pete said, they can only can't do these two things. So I'm gonna give my VA everything else. I mean, what should I be thinking about in terms of limitations?   Pete: Yeah, so I gotta be honest, you, Michael I, at first, I always thought like, okay, I'm just gonna give him a list of things to do. I'm going to scan it to him and we're going to just do this stuff off the list, like a checklist thing. I quickly realized he could do much more. Then I said, hey, I own the process and they own the process and they can and now I do believe that I actually had VA supervise people in the States. So I had somebody in Mexico supervising people in the United States. So I believe they can get to that that supervisory level, what I will say is, they can do everything. So I'm not saying they can't do anything. But the one thing is you need to put in place some escalation paths…   Michael: What do you mean?   Pete: So even though they own so let's say for example, they own maintenance, right? Well, they're going to be able to handle 99 out of 10 maintenance calls, no problem. But then there's that mold call that comes in, right where the resident says they have mold, well, right there, that should be a buzzword that gets escalated to the property manager because they don't like they don't have mold in other areas of the country of the world that were that worried about mold as much as much as we do in the US. So if there's like an emergency, that could that can cause you know, a resident can get sick, right, or anything like that we're property code. So each, each state has their own little different property code, right. So like, for example, in Texas, believe it or not heat, if they have no heat, that's, that's a, that's an emergency. But if they have if they don't have air non-emergency, well, we treat no AC as an emergency in our in our company we did and so there was like three or four things that those got escalated a property manager. Now the property manager, at that point would say, I'm going to take it from here, or here's what you should do. But then the property manager is kind of co-managing that ticket. So I believe that in any business that you run, whether you own a property management firm, or you're a you know, an individual landlord that manages your 10 units, there's got to be certain. I call them taps on the shoulder, there's got to be certain tabs that you realize this is a potential problem, right? So let me deal with it or I call them taps two by fours and then getting run over by a man, right? On over by a Mack truck means that you're in a lawsuit, right? The two by four means somebody moved out because you didn't handle a maintenance request in a certain way and the tap is the maintenance request is 10 days, 15 days old, whatever it is, and no one's looking at it. Right, so how can you run your business through tabs? Well, if you have these vas, the great thing is you're not doing the work anymore, right? You're not creating the lease renewal you're not you know, calling, you know roto rooter to get out to the property. You're not doing that but what you have to do is you have to take a step above, right so you have to instead of being at the ground level, you got to be 2000 feet up, right, not 15 30,000 feet up, but at least 2000 feet up and as report you have to review and so if you see a property that's vacant for over so many days, that's a tap, if you see a maintenance request that's open for so many days, or major quests that hasn't been responded to, in so many days, these are tabs. So if you can identify what the potential problems are, your job now becomes manager, right? So I'm not the doer anymore. So you're getting rid of the task or hat, you put it on your manager hat. So if you hire a VA for him to do everything, and then you don't put your manager hat on, I can tell you, you're gonna, you're gonna get in trouble. Especially if you, especially if you do terrible training, which most people do.   Michael: That was gonna be like my next question and so like, for everyone listening, what what's the expectation around training? How long is it before a VA is really up and running and so as people are thinking about, okay, forecasting, I don't need a VA today, but maybe in 369 12 months, I maybe need one. So what's the runway lead up time to get someone effective?   Pete: You're gonna hit the answer, but it depends.   Michael: That's my favorite answer.   Pete: It depends, okay, so the more like, even if I'm a smaller firm, and only got 20 properties, I'm managing, I'm doing everything, you have to teach that VA, every piece of managing that property, right, from onboarding, to, you know, to utilities, to lease ups to move into maintenance, to collections to eviction, to move out, and you have to teach them everything… Well, just because only one move out happens a month, it doesn't make anything any easier, you have to learn, they have to learn how to do that they have to understand basically, property management. So that's going to take a lot longer than say, like, with me, I had one person like all they do is collections. Well, I can teach collections in less than two weeks. Right, especially if you have processes in place. So the big thing depends. So if I wanted to hire somebody for collections, it'd be about two weeks. But if I want to hire someone to do maintenance, the more I call them, if they analysis, the more decision points there are in the job. In the process, the longer the training, right maintenance, so many things go could happen with lease renewals, it's like there's three things, like you teach them the three things, and then they know, okay, I do these three, if this happens, I do this and if this happens, property manager, right. So to my least your own person, it really was like two weeks of training. My maintenance people, it was about two months to three months of training.   Michael: Wow. Okay, so yeah, you weren't kidding. When you said it depends.   Pete: It depends, yeah.   Michael: And then I guess, like, the next question that comes to mind is, what is the turnover look like if I'm an investor, and I'm investing two months, three months into a person really getting them up to speed, and then doesn't work out or they don't like it or they move on, like, what have you seen in terms of turnover?   Pete: That's a great question as well. So what I saw at Empire, I had 23, virtual team members, 23 different roles that that my virtual team members handled, and I had them for about five years, you know, most of the jobs some jobs were newer, but I had people there for five years and in those five years, I had to get rid of I let go of two and one person left. So I had three people, my churn rate was much lower on the VA side of things than they were on the US side of things…   Michael: I was gonna ask… in the US:::   Pete: Now, I'll tell you why my churn rate was low, though, okay, because I treated these people like team members, not like virtual assistants, right? So the old mentality of a virtual assistant is, I'm just going to throw you here's the work, you go do the work, I'm going to make sure it's done and like, that's it right. My guys that we have day out there on our website, they had videos, they were they were part of all of our company meetings, they had, they had ownership of each of their job roles so that they can, they can modify and do things they had, they had more control over certain things. We went down, I went down there to go visit them, because most of my people were one city in Mexico, so I paid them PTO like I gave them like if they even though there were contractors, if they needed a day off Mike just put the time in, that's okay, I'm gonna give you a day. So we the more you treat people like we can we put them on a bonus structure. So if their key performance indicator was met, they got a pat on the back, but if they exceeded it, they got they got 50 bucks, or something small, but $50 to somebody in California that Michael they're going to take the $50 thing it's critical and throw in your face like this isn't even a gallon of gas. You know, and but in you know, Mexico you give somebody 50 bucks that's like a half a day's work, like so again, you so you can make people happier with a lot less with a lot less money, right? because sometimes it's like, oh, it's not the thought. It's like, wow, man, you only gave me $20 like that's like almost like an insult you know, in the US where it's not a over there. So if you treat the people, right, so what does that mean? It's not just like paying them and treating them, right, make it part of the team, but also manage them correctly. A lot of people think like, I'm just gonna hire this VA, but they have, like, they hire the VA and then you're, you're not ready for the VA, like, you hire them because you like you got excited, you heard this podcast, I'm gonna hire VA, right and then it's like, okay, you don't have a good job description, you're not really sure what they should do, you don't know how to manage if they're doing a good job or not and so you hire somebody, and they don't really know what to do, and then you don't know what to do and then it doesn't work out, right. So I recommend anybody do is make sure like you, you create a job description first. So you can go about it two ways:   One is I want them to take this, this process from end to end or two is like I want to be an executive assistant and I want to do the things that I hate doing. So identify the low level low enjoyment tasks that you don't like, create a job description from that, post it out there, say this is what I'm looking for or say, man, I really want to give somebody collections evictions, you know, like that process? So it depends if you're if you're smaller than you may say, hey, I want them to be a property manager and give me all the things I have to do just understand it's a lot more training. So once you have the once you have the job description, so that you know what they should do they know what they should do. The next thing is what are the key indicators that you know they're doing a good job and the rule of thumb is 123 key indicators they call key performance indicators and every job role in the organization should have at least one if somebody has 14, that's way too many, I know because I live this I had my property manager API's and it's not it was way, way too much. So like, for example, your executive assistant. If that's where they are, you know, maybe they have to answer calls, well, maybe a KPI is answering 94% plus call rate, right or response to any email is in less than one day. Now, you the KPIs, you can pull them out of a hat, but they have you have to have a report that can show that, that they can put the KPI and so they have to get the data, the data has to be available, right? So if I say hey, I want a 90% call rate, but my call, my call software doesn't have call answer rate, I'm not gonna be able to get that number. Does that make sense?   Michael: It makes total sense.   Pete: And so you have to be able to report on it. So just because you want a KPI, but there's no way to report on it, then you have to figure out a way to report it and get that KPI. If not, you have to move to a different KPI. So if I have the job description set up, they know what to do that we have the key indicators, so they know what the scorecard is if they're doing a good job or not, and so to you, because so many of you will say, yeah, I feel like that he's not doing a good job. What the hell is that me show you?   Michael: How do you know?   Pete: Especially if they're, you know, 20,000 miles away for you in the Philippines? Like, yeah, like, so how do you know the key indicators and then if you have good training, and you spend the time with them, and then you should once you have the train, So training is like every day, right? You do every day for two weeks, maybe three weeks, you have training every day, hour a day video so they can rewatch it and they can build, they build the process manual, not us. So they build a process manual. Why is that important because if I had 100 page process manual for maintenance, I did Michael I swear at Empire had 110 page process manual…   Michael: We talk in single space, or double space?   Pete: Single space, I think. Like legit, it was legit. Nobody read it. Nobody knew how to navigate it and nobody learned once I had them build their own manuals, guess what happened, they started retaining stuff and they knew how to navigate their manual. So don't be don't be upset if they like let them create their own manual so they can navigate it. So now you know what they what you want them to do. They know what they know what they're supposed to do. You can you can you can scorecard it with the metrics, you train them, and now you manage them and the way you do that is you have a weekly meeting. Now if you're smaller, you're going to have you're going to meet with them every day, right my IV pm or smaller firm was five of us, I mean, when my VAs every day, because we're just we're so small, we have to talk about what to talk every day when I was at Empire because I have 40 people working for me. I met them once a week and I would meet my maintenance team, separate from my accounting team separate from my resident services teams and for my own services team. But I would go over with them each week and we'd go over, we'd say what's a feel good? Tell me something that's good, right because as humans, we have this habit of going below the line instead of like above the line. So let's start off the meeting really good. Let's go over to metrics, right individual and then the group metrics, the department metrics, then let's go over tasks from last week did they get done? Then let's go over challenges and each one of those a five minutes and challenges like 20 minutes, 25 minutes. You don't you can't solve all them all the time. But you can solve you know, a couple of them and if you could solve a couple of challenges each week, you're doing really, really good and then and then one thing I added was what's your stress level from zero to 10. This was interesting because sometimes they'd be at a 10 and it was because somebody was on vacation or we just got 50 new houses that week, it's worth, you know, 10 yeah, okay. But when it's 10 all the time, and that's the standard, that means you haven't to do too much and if somebody's attend all the time, it means they're ready to punch out. Like anybody in your team, you should literally take the pulse of your team on a weekly or monthly basis, right and but here's sometimes the 10 was because they had something going on personally and then I'd get everybody off the off the phone, and then I would talk to them personally and that gives you an incredible opportunity to create relationships with people who you never met, that working with you that are, you know, 5-10 1000 miles away and that is why they didn't leave me because they knew I cared, right, it wasn't a bonus. It was it was I cared, I want them to grow the company, I want them to, you know, to, to feel like they're wanted, but I also cared about their personal lives, I really did and so if somebody had an issue, you know, Hey, man, you know, we talk about so you get to learn a lot about people when you do that. But I did that each week and if a KPI was read two weeks in a row, and went to the issues list, you know, things and so you, if you have a structure with your business, you're the person you hire, the chances at whether that's in the US, like sitting next to you in the US, that's, you know, a few states away, that's working virtually, or a virtual team member outside the borders of the US. If you have structure, the chances of you hiring somebody successfully becomes great becomes very, you know, most cause much greater. But if you don't have that structure, the chances of hiring anybody is not going to be it's not going to be very, very, very good. It's going to be much lower rate of success.   Michael: Yeah. That makes a ton of sense. Pete, have you ever had a VA hire and train another like another VA?   Pete: Oh, yeah, of course. That's the whole job, right? The whole goal, right? So monkey see monkey do, right? So when I forget Empire, the first round of vas, you're looking at the trainer. I was the guy I trained there. Okay but my maintenance team, once somebody would leave, and somebody would get hired, or they would hire a new person, I was out at a training business.   Michael: I love it.   Pete: They train them. So once you train that first batch, and by the way, here, Michael, here's the secret to at Empire, I was gonna hire two virtual team members. That was that's what was in the budget. I interviewed four people hired all four of them and here's the reason why one figure one person is going to wash out right? Can you figure that and then the second thing is, it's, I was hiring two to three people for one person United States.   Michael: Okay.   Pete: All right. So think about that hourly rate, I would get rid of one person us and I'd hire three people in Mexico and so do you think more stuff gets done with three people?   Michael: I would than one probably guessed.   Pete: So. Yeah. So then I'm like, okay, I'm gonna hire four people. So I was over budget, guess what happened within 30 days, I'm able to grow my business because more tasks are being done and so all of a sudden, it's like, yeah, and if one but I hired four, none of them washed out, I was one of them wasn't a good fit, they were a good fit for the organization, not a good fit for the role. So we moved on to a different role. So another important thing is when you hire and this is probably I mean, your team, your, your listeners probably know this. But every business has core values, that can be a sheet on the wall that you never look at, and they're not going to be any, they're not going to be worth anything for you. But you should have core values that you hire, fire, promote and demote on, and give raises to like, that's your core value. So who are the people you want on the bus with you, right and if you are, if you are an individual landlord, that you know has a bunch of house and you're looking to hire that first person. Well, that's a business, right Michael, would you teach that like, as soon as you're hired, as soon as you buy that first house, you are business…   Michael: Yeah, you are business…   Pete: You are business. So you need to have core values and if you don't, as a business, you should have them as an individual. So who are the people I called the fog. So who do people want to foxhole with you? That gets you the right person in the organization. But that doesn't mean they're the right person in the right seat, right because the right see, for example, like, if somebody's super outgoing, you want them in sales, if they're super outgoing, but not detail. You don't want them in accounting, right? I might have the right person. But if I put that outgoing person, and that's shipping and sales and accounting, he's going to do a terrible job. So I found the people through my core values, I then put them through a personality profile test. I like disk. It's super simple. I don't know what you would use. Do you have one that you use?   Michael: No, not personally, but I'm definitely going to be adopting one as I'm gonna get for virtual assistant, yeah…   Pete: There's, there's a lot of them out there. Disk is super easy. I know it very well. It's easy to learn. So I use disk. So that tells me I get the right person in the organization. I put them in the right seat and through my job description and my key performance indicators. I know they're going in the right direction. So if you do all of that, and then you do the training and then you do the managing the chances of you having somebody washed out or somebody leave, it goes down dramatically. It's not 100%. It's never 100.   Michel: Like anything… Yeah, that makes a ton of sense to me, Pete this has been, this has been super eye opening, really exciting, exciting stuff for people that want to learn more want to take advantage of the cam solutions, like how do they get in touch with you? Where should they be going?   Pete: Yeah, so you can go to https://www.vpmsolutions.com/ , and create a free profile. So that's the other thing, Michael, everything on the company side is free. So creating a profile posting a job, searching for people, finding them is all free. When you thought when you hire somebody, they we charge the virtual team member a percentage, and that's how we make our money. So, it's free to the company. So all you're paying is the hourly rate, and a small processing fee that we pass on from the stripes of the world onto the onto the dude the company, but that's what it should go and if you want to email me directly, it's pete@vpmolutions.com and we have over 14,000 virtual team members in 60 countries on our on our site right now looking for work and we have property management video training that your listeners can actually take for free as well. So we have like, I think we have like 12 courses, it's over about nine hours of content it goes from, it's basically the lifecycle of property management. So if you are a, you know, a self-manager, and you want to learn more about how I can manage my property a little bit more efficiently, I highly recommend taking those courses and then when you post the job, you can actually ask your VA, these are the recommended courses that we recommend that you take and then people would actually take those courses on their time and they're done. So you're getting a little bit of people trained before you actually are paying them.   Michael: That's really slick and it probably helps weed out a little bit more of who's serious versus who's not is who's gonna put in the time in advance.   Pete: Absolutely, 100%...   Michael: Oh, man, I love it. Pete This has been so great. Thank you for coming on with us a second time. Definitely, we'll be in touch man.   Pete: Yeah, Michael, thank you so much for having me. Really appreciate it.   Michael: You got it, take care. All right, everyone. That was our episode a big thank you to Pete for coming on. Super exciting. If you couldn't tell it was pretty giddy throughout the episode. It's something that I'm going to be very much looking into for my personal business. As always, if you enjoyed the episode, we love hearing from you reviews, comments, feedback questions are always welcome in the comment section, and we look forward to seeing on the next one. Happy investing…

Pete Neubig is a realtor who focuses on investment properties. Pete has been investing in real estate since 2001. He has owned and managed a 39, 52, and 100-unit apartment complex. He currently owns single-family homes and a 52-unit apartment complex. Pete created a property management company based on the motto "By investors for investors". His property management company has clients from Houston and all over the world. His technology-based systems allow owners to see everything that is happening at their property without having to be involved. Tune in for today's episode where Pete talks us through some of the mistakes that he made as an investor and how he's doing things differently today. Episode Link: https://www.vpmsolutions.com/ --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today with me, I have Pete Neubig who is a real estate investor and CEO of VPM solutions and Pete is going to be talking to us today about some of the mistakes that he made as an investor and how he's doing things a little bit differently today than maybe your typical investor. So let's get into it.   Pete, what's going on, man? Thanks so much for hanging out with me today. Appreciate you coming on.   Pete: Michael, thanks so much for having me, I'm really looking forward to it.   Michael: No, me too and so before we hit record here, you were telling us about the three different lives that you've lived. So you are a super interesting guy. Needless to say. So for anyone who hasn't heard of Pete Neubig before, give them the quick and dirty rundown of who you are, where you come from, and what you're doing in real estate today.   Pete: Sure. Well, real quick. Let's see, I'm from New York City originally, I moved to Texas in Houston back in 1995. So I have a gun. So I guess I'm a Texan now.   Michael: Give me one when you move to the state, like I think…   Pete: They give you a cowboy hat, a gun in some boots, you know. So I started buying real estate in 2001 when I bought my first property, actually, I bought a duplex and a single and a a 100 unit apartment complex like same day, like I closed on the same day, I ended up owning bunch of property that I ended up starting a property management firm and I got so busy doing that, that I stopped buying real estate for a while just to build the investment, the property management business, I ended up selling the property management business and now I started a an online platform. It's a virtual property management solutions or VPM solutions where we connect the real estate industry with virtual talent around the globe, so…   Michael: That's so cool. Pete just taking a total step back to say you're from New York now living in Texas, do you remember like I don't know in the late 90s, early 2000s there was that pace salsa commercial where like all the cowboys were sitting around like, where's that guy from New York City, New York City? When you say that, that's like the first thing that I thought of like, oh, hey, salsa commercial.   Pete: And I still can't say y'all correctly I get I get I get yelled at all the time and I'm down here saying y'all, so…   Michael: Y'all with the New York accent, I love it, I love it. Well, you did you I mean, this is a really cool trajectory that that you've ended up on and I would love to focus on kind of the first stage of your investing career where you own a bunch of rentals and again, we were chatting before we hit the record button, and you were saying that you had sold a bunch of them off, and then actually paid off some of the remaining ones. So walk us through, you know, like, why because I think I think a lot of people would be like, oh, that's stupid, like, what is Pete doing? You gotta have leverage. That's how you juicy return. So, you know, walk us through how you built up the portfolio and then why you decided to sell them but then keep some free and clear.   Pete: Sure thing. So I started buying on my own first right so I own like 12 I think it was like duplexes. I was for some reason I was love duplexes. I think most people would say, well, it's the cash flow, right? Duplexes, have a great cash flow and I was always looking at just cash flow and I think if I go back in my, in my investor life, I can tell you, Michael, I've lost so many millions of dollars by not buying houses with very low cash flow, because I forgot about this thing called appreciation, right? I wasn't buying cash flow, right and my goal at the time, I was a young man, I was early 30s, like 30-31 when I started buying, my goal was to get enough cash flow so I can just leave my corporate job. That's kind of what the way I was thinking. So I buy a bunch of properties and then I get I get talked into being a passive investor for 100 unit apartment complex and I told if I buy one apartment complex, I can retire right? So I'm like, oh, great, you know, monopoly, I'll buy a bunch of houses, sell them and all that good stuff. Well, it just never materialized. I was buying lower income homes and if anybody knows the lower income homes a cash flow is really just on the sheet of paper. It's not it's not true returns unfortunately, because there's little things like you know, the evictions or you know, not getting all the rent and in the make readies are not a couple 100 bucks or a couple of $1,000 because people in low income they take what's called parting gifts. You know, they take your AC, your doors…   Michael: Your goodie bags, you know…   Pete: Yeah, good. Yeah, exactly. Exactly. So, so I ended up connecting with a business partner named Steve Rosenberg, who he's kind of a a national speaker now but Steve and I ended up finding his guy who is offloading a lot of his portfolio. So we thought this is great and we ended up buying like 30 houses and we were both enamored with buying property. But we didn't had no idea what to do once we bought them. Like we were terrible and how to manage them. So what happened was…   Michael: Pete was this was this local in New York or local in Texas, there was this remote?   Pete: Yeah, great question. So I was, I was, I had lived in Texas at the time, we're buying everything in Houston. I there was no such thing as Roofstock that we knew have to go buy stuff in other areas and back in the early 2000s, the average price of a single family home in Houston was like around 130. I was buying it for 35,000. Like, lower low income houses. Yeah.   Michael: But not have roofs, like, what's the deal?   Pete: Man, they were just in low income and today, those houses are now worth about 150, right, 20 years later, and I was buying them at 35 and they were worth 50 to 55,000. So I was buying them below. But I just found an investor who wanted to offload stuff but he was offloading me all his problems, right and if you don't have good management, behind you, if you have a good management company, by the way, it's really difficult to manage these low income stuff. It just is because they don't pay online, they don't abide by the lease, they have dogs, when they say they're not going to have dogs, all that all this stuff that you have to deal with. It's just difficult and so Steve and I, we ended up buying 31 homes. So now I have 31 homes, and we advertise bad credit, okay, no credit, okay, like you have you have a pulse and $1 will, we're gonna let you in the house and of course, that comes back to bite you to the point where not only are we not making the cash flow that was projected, but we're losing money at the end of the year, now I have to come in and pay for my taxes and my insurance and so now I'm working even harder at my nine to five than I did and I'm working hard to manage these properties.   But all of a sudden, this this like, dream that you have is becoming a nightmare and so, you know, caution, number of cautionary tale number one for your listeners is buy absorb, right, and then buy some more like don't just keep buying if you can't manage the assets, or number two is go find a professional management company that will take your properties. My problem was I had my problems was so low, I couldn't get a professional management company to take my properties. The manager companies know how hard they are and I'm like, Well, I'm gonna give you 25 They're like, Yeah, great. Keep it like, we want to charge you more. So I ended up creating the management company with Steve so we can manage our own properties and so there's been two there's two things, the two big instances that happen in my investing life that has propelled me to pay off properties, right. So let's get to your question. The first thing was I bought all those properties, and I wasn't making cashflow, right, but I had to pay the note every month, right and at the end of the year, now I'm getting in tax and insurance. And so there was no cashflow there and there's no appreciation I just told you it took him 25 years to get that double or triple of appreciation. So I own these properties for 10-12 years for 35,000 and they were worth like 45,000 right 50,000 I told you I got equity, but that nothing ever increased. So when that when the banks are coming and asking for their money, and I gotta go work a double because I need more money, or I gotta go sell off stock because I got to. So that that was something that kind of made me realize maybe I want to be the bank myself, or maybe I don't want to owe the bank so much money. So that was the first thing. The second thing was, I ended up buying that 100 unit apartment complex that I told you about and that 100 unit apartment complex. I am still today friends with the lead investor, he's a good guy, we just had a bad plan. We lost the apartment complex. Now I was a passive investor and now here's cautionary tale number two for your investor listeners. If you're going to be a passive investor, make sure that you either A have an attorney you trust or be read the documents yourself. So I was a passive investor, but I was legally on the hook for with my credit. So I personally signed the note. Yeah, I see you I see you if you for those of you not look, for those of you listening and not watching the video, Michael's jaw just dropped, right and so and then what happened was because the plan was bad, we couldn't we couldn't make a payment and so the bank led us to believe that we can restructure our debt. Well, they ended up having somebody that would buy the debt would buy the property from under us. So they foreclosed on us and sold the property for more than what we owed, which in normal cases, you think that's fine. I owed 1.1 million they sold for 1.5 million. I should be off the hook. Well, there was a little checkbox that said no, if they foreclose on me regardless how much they sell, they can sue me for that amount. So I got personally sued for one point $2 million.   Oh my god all because now I will tell you this, I paid a mentor and I paid an attorney. Before I got into that deal thinking I covered myself, I got a guy who's done a bunch of apartment complexes, I have an attorney, they just missed that. They just missed it, the mentor wanted to deal to get done because he was the broker on a deal. So it really was it wasn't aligned. You know, are you know, of course, at the time, I was like, get the deal done. But he needed to protect me from myself at that time and so when you owe, so long story short, I ended up selling. I had a six unit apartment complex that I sold, made 30 grand, and I actually was able to, to pay $30,000 to make the lawsuit go away. So the bank knew that what they were coming after me, they knew that they didn't really have a good case because they made their money. So they just wanted their attorney fees paid for but that put the fear of God in me to be quite honest and so I vowed that I don't want to ever be over leveraged, right and so of course, Kiyosaki talks about other people's money and every you know, rich, Guru, Rich Dad, Poor Dad, guy, every guru out there will tell you, if you can borrow 110% borrow 110%. Well, back in the early 2000s, you were able to borrow 110% I don't know if you remember and so I did that, right now. I was fortunate that I was able to overcome when the properties weren't making any money because I had a job. But if you are again, a cautionary tale number three, if you are a full time real estate investor, you cannot survive when you when your cashflow negative, it's very, very difficult, and you have to sell off assets. But if the assets are worth less than what you owe, that's a challenge. So when I got into property management, I realized pretty quickly that people will manage Class B homeless people will buy and rent Class B homes, I always had this mindset that people will only manage or rent Class C or D homes. I'm like, no one's gonna pay $800 in rent or $1,200 in rent, and go buy a property, a nice property and have $1,200 on my mortgage, right? Like it was a mindset thing and so another tale is if you're an investor, don't you don't try to buy anything that you would live in you. Other people will live in stuff that you like, why would they rent stuff when I when you can buy something? So when I found that aha moment, I pivoted and I hired a property manager. Finally I was trying to property manage and I was terrible at it. Like, I'm like, I had to hire a property manager. First day she comes in, she goes, okay, we're gonna fire half your clients, this tree store, we had 67 doors, 30 of them were mine. She's like, we're gonna fire half your clients, because those houses are in are in a low income area. They're not worth managing. We're gonna pivot, we're gonna get these Class B homes. Oh, and by the way, you need to sell off your homes. We're not managing your homes either. So you know what I said, You know what, I've been trying to make this work for so many years and are every year I'm coming at the end of the year, I gotta pay money. Now I quit my job to start my property management firm, which by the way, I was making $105,000 a year now making $12,000 a year am I okay? These properties, they can't be an albatross around my neck. So I sold a bunch of homes. So I had, I think 31 of them and 25 are in kind of the lower income area and I couldn't get rid of some of them. So I owner financed them and that was when I had an aha moment. So I was able to wrap the note, I had a very good, I had a local bank and I had a very good relationship with a local bank, and they allow me to wrap the note, right. So basically what that means is I've sold the property to you Michael, right. But I still own the property, you pay me 10% 20% down, you're gonna pay me a mortgage, and then I'm gonna pay the bank, the mortgage, and I get the spread. Yeah, the first time ever that those properties made me money.   Michael: Wow, okay. Were you able to sell them for much more than you paid for him? I know, you said there wasn't much appreciation.   Pete: No appreciation. But remember, I did have equity. So I sold them for like 50,050 to 55,000. I bought it for 35,000. So I was able to make money that way but if you think about it, I lost so much by owning and by doing the rehabs that I kind of broke even. Okay, it's great. Like, I'm able to be on podcast now. Tell that story, I guess. You know, it's the school of hard knocks, right? That's it. So college is way more expensive than that, by the way that just took me a lot of time. I ended up breaking even and making a little bit of money on it. But what happened was so when I when I started my property management firm, I don't know if you've ever started a business from scratch, Michael, but it is not easy, right? I didn't I didn't build it. I didn't buy somebody else's business, right. I built it from scratch and, you know, it's at 90 hour weeks. It's every day, you know, and so I got away from the investing thing. So I sold off my assets at a 52 unit that I sold office well took a bath in there, investors lost money.   So I don't like multifamily. I can just tell you that much. I know you do. I've listened to some of your stuff. But we could debate that on another pod. A lot of fun things off. So when I, when my property management firm seven years later started becoming like I was working now five hours a week, 10 hours a week, I started getting back into buying investment properties. So I was able to find and a bought a couple of properties for about $120,000. It's called Baytown. So it's a little bit it's like a Class B, B minus area, blue collar, I like it gray area of town in Houston to buy in, because there's a lot of renter's there, but I started buying them and I started buying cash. So of course, you have to have the cash, right. So I had some cash I was able to buy in cash and so all my other properties that I did keep, I kept paying those down, and I have those in cash. So today, instead of 31 non producing properties, I have eight properties, one of them is paid for, and I own the note. So I sold it, I did an owner financing sell and I make more money on that property now than I ever did when I rented it out. I have three others that are paid for three or four, four others that are paid for and then I have four others that have a note on them. With the four that I bought the last four, I bought a boat with a note, it was one of those commercial loans. Package note, I had to put 30% down I did, I bought them in January of 2020. So right before the pandemic, there I bought it for 535 from a California investor he was done. We I gotta because I own the management company. So before I went on the market, I made him an offer and so I got him for 535 they appraised at 640 and I put 30% down and they kept they cashflow beautifully and I have I have a small note and now if I want them to sell one of the houses, I can take it out of notes, sell it pay the note down. So now I own eight or nine properties total and they're worth you know, close to, I want to say like one like one, let's call it 1.2 million, I only want 300,000 or 350 on the whole thing, right and my cashflow is about 12,000 a month, uh, me a little bit less, a little bit less, a little bit less, maybe like 10, five around there and so, so I'm a big fan of owning the property outright. So I have both houses that aren't paid for right, so. So it's just hear me out on this, I am now in my 50s. So in my 30s I was a big fan of taking out mortgages, as much as you can bind as much as you can, because you got this thing called time on your side, you can make mistakes, right? At 50 you have less time, right? I've 20 years less, so I can't really make the same mistakes. So I believe even though I make less cash on cash, right? Less overall, I have this thing where I can sleep better at night, right? The house is paid for like, for example, I own  a house, I just had to put in a brand new AC and heater, right cost me like I think like six grand. That's cash flow for a year in most in most instances, right and you can't afford it because you don't have the money. Well, when the house is rented for 2500 a month. That's only two to three months. It's not terrible. It doesn't it doesn't knock you out of the game. You're not always stressed for cash. In my in my in my bank account for my business, my housing business. I got like 30 to 35 to $45,000 sitting there all the time, right. So if anything ever happens, I'm okay and so that in now because they're paid for I have more cash flow. I don't have to pay all the notes all the time. So, so again, as you get older, you're like, okay, well, how can I have like, How can I afford to live day to day? Well, if I have $12,000  a month coming in, and I only have $22,000 going out for principal and interest. Well, now I'm at 10 grand and now you figure another 3000 a month in taxes and insurance. So now I'm at seven grand. Well, that's, you know, that's almost 80,000 a year in Texas. It's not terrible and of course if maintenance happens, which always does you never get that full 70% right you never get that full deal. So because of my past issues with banks, by the way the bank on the 100 unit apartment complex really, they really screwed us they let us believe one thing and kind of did the end around and so because of that, I'm really you know, just I was scared is not the right word, but very unjust and very hesitant, hesitant to do it now. That doesn't mean that I won't take on a note, especially if I can't afford to buy something in cash, but I'm gonna He's going to put 2030 40% down, whatever, whatever the bank wants, and then a little bit more and then I'm like, I'm at the back into my life, right? So I am looking to, to pay these things off. So I have 20, year amortizations. If I could, if I could pay them off in 15 years. Okay, I'm 60-65 and now I have no notes, and I have all these houses paid for and at the end of the day, you want to live on cash flow, right? You don't want to live on like hoping that your properties increase in value, and then you can take the money out. If they're if they're paid for in 10 years, I can go take you know, 80-70, 80% of the value of the house, which are increasing now. tax free. So I have so I do have ability to, to go take the money out. Should I should I choose to do that?   Michael: Yeah, man, this is wild, man. This is this is such a cool story and of course, I'm so sorry to hear that you had to deal with all that nonsense, Bs. But it sounds like it helped lead you to the decision and kind of path where you are today. So would you say that you're thankful for those experiences as crummy as they were?   Pete: Yeah, look, whatever doesn't kill you makes you stronger and I am truly I think I'm a better business partner today than I then I was back then I'm a better investor today for sure and so overall, I feel like I'm, I'm better, I'm a better as a person, because you won't like, like I said, if it doesn't kill you, the one thing that you as an investor, as a real estate investor, you have to make sure that you don't make the mistake that could put you out of business, right. So in my when I had the 100 unit apartment complex, I use my 401k. No my IRA money, so I went and did a self-directed IRA and that's how I invested my money, lost it all, by the way, okay. Again, at 31, I lost 120 grand, which is a lot of money for me back then. A lot of money for anybody right now. Okay but it didn't put me out of business.   Once I once I was able to clear my name with the bank, my credit was cleared, everything was clear. Like it was never it's not on my it's not on my credit history at all, because they know that they messed up and I was part of our deal. So that allowed me to get back in the game and by I had another pair of business partners, that they ended up taking bad advice, they ended up using credit cards, taking money out of their credit cards, cash advances, to put money down to buy this apartment complex, because some guru told them that he did it, just because he did it and it's possible doesn't mean it's the right thing to do. Well, they had declared bankruptcy. So they were they were out of the game. They you have a bankruptcy, you're not going to be buying investment properties. Why don't you know, you're not going to buy your personal home, let alone investment properties. So as a real estate investor, for the for if you're listening to this, you know, it's great to take on some risk. I mean, obviously, we all take on some risk, right? We know there's no guarantee price is gonna go up. There's no guarantee that people are going to pay their rent. There's no guarantee but don't take on a risk that will put you out of business.   Michael: Yeah, I love that and I think that makes a ton of sense. Pete, you said something kind of at the beginning of your story that I want to come back to and that's you were buying these low income properties, and you bought them and you scrimped and you saved and you and you put these deals together, and they really hadn't appreciated very much and you sold them because your property manager, right, yeah, that after that, they appreciate it. So like, talk to us about how people should be thinking about if they're in a similar situation, they bought a property. They did all this work to get the deal done. they scrimped and they save and they just haven't seen very much appreciation. Maybe they're in a similar situation where it's not cash flowing, or it's just covering its expenses. It's just not what they thought it was going to be. When should someone cut their losses and run and maybe go try something else or how do they know maybe they should keep hanging on because we're right around the corner from that appreciation jump?   Pete: Yeah, that that is if I had a crystal ball, I could I could answer that. I can just, I can just tell you from my perspective, I did everything I could to make those properties work. I mean, I would put it you know, like when we did a rehab, we made the house even nicer than it was right? We got rents up, but for whatever reason, and we just can never get them to cash when we were losing money. After about five years, I think you got to if you do not have the cash flow, where you can lose money every year on your properties, and it hurts you. You know, I think you got to cut the cord after a couple of years of trying everything. You have to try everything though. I'll tell you my grandfather before he passed away, he was in his 80s and he when he passed away, he was worth I think 30 million. So this is a guy who knows a thing or two. But he told me one of the last conversation I had with him he said, Pete, never sell your property. When grandpa died here. We had a lot of property it was he was a mess. The guy didn't put any money into it. Son of a gun when we had to deal with it, but it was luckily all those properties appraise or appraised value over time, time heals all wounds if you can afford it and knowing like, hey, like, I can tell you this when I bought the properties in my early 30s, I needed the cash flow as a means to I try to exit out of the of my, you know, my w two life, right?   Luckily, my w two allow me to handle those properties, right, allow me to handle the losses. When I got into starting my own business, I knew the upside of starting my own business was great but starting my own business meant I had to take a huge step back in how much money that I can afford, that I was going to be able to extract out at a business. I wasn't venture backed, none of that stuff, right. I mean, I literally just hung a shingle and I started working. Well, I couldn't afford to lose the money on those properties anymore. So that was, that was a big reason on why I decided to sell. Now I will tell you, I sold all those properties in 2015. I bought them in like 2008 2005 I bought most of them and I saw them 10 years later. So it wasn't for lack of trying Michael like I tried right? Even after 2015 they didn't jump up until recently, like this pandemic has me all jacked up, I have no idea what's up what's down, like, I thought the price would come down. So I sold my last property in that area of town for 120. I bought that piece of property for 50 in 20 in 2005, so here we are. So it kind of matches up right 2005. Here we are 15 years later and that thing actually, you know, more than doubled. Now that property I owner financed, I sold it at 120. It was probably worth 100. Alright, so probably doubled in value over those 15 years. I always pay, I always sell it for a little bit higher because I'm holding a note. I want to build in that appreciation. You want to go through the numbers on it real quick?   Michael: Yeah, let's do it again. All right.   Pete: So when I when I own the home, and I rented it out, I was renting for 1000 bucks a month.   Michael: Okay, you bought it for 50 renting for 1000. So crushing the 2% rule. Everyone on paper is like, oh, you're killing it.   Pete: Right? Exactly. On paper, right. So 1000 bucks a month. So now you like Pete, you're making $1,000 a month. But am I Michael? I'm not making $1,000 a month, right? What do we have? We have taxes 300 bucks a month now making 700 a month? What do we have? We have insurance 120 a month. Okay, so now I'm down to 580. My management fee was 80 bucks, I'm down to 500 bucks a month and that's before you get into maintenance and turn, right. So on my best month I make 500 bucks a month.   Michael: Oh no.   Pete: You wanna go through the numbers?   Michael: Yeah, let's do it, man.   Pete: Or go through the numbers. Okay, so I'm renting that property for $1,000 a month, right? I bought it for 50 rent it for $1,000 a month, right? So am I making $1,000? a month? No way? No, right because the taxes were 300 a month. So now I'm making 700. Right, my insurance is 120 a month. So now making 580 and my manager fees are 80 bucks a month. So I'm making 500 bucks a month and asked me for any kind of maintenance happens or turn. So the best I can do is 500 a month, right? So now I sold the property I sold for 120 got 10% down. So the notes 113. I sold on a 20 year amortization 7%, I found a company that will actually serve as the note for 30 bucks a month that I pushed on to the buyer. So right now it's cost me nothing. The principal and interest on that house is 7-78 and it's like I think it's like $67 is principal and $7 is interest and that's what I make on that house every month, right? If taxes go up, does it affect does it affect me and my cash flow? No insurance goes up doesn't affect my cash flow. Refrigerator breaks doesn't affect my cash flow   Michael: Vacancy could be vacant doesn't affect your cash flow.   Pete: Doesn't affect my cash flow. Now I ended up selling this one to an owner occupied. So I didn't sell to an investor on this one. So the owner occupied and he pays and all I gotta worry about is if he doesn't make his payment, I can foreclose on him. I don't know what the laws are in California in Texas, it's about 21 days. Before we before we can start the process and start the process.   Michael: Okay, okay. Okay.   Pete: So 21 back in the day used to be 21 days, you get them out now it's like…   Michael: That's what I was going to ask. Yeah. Okay. So just real quick on owner financing, because I think this is something that a lot of our listeners who own property should hopefully their ears are perking up. How do you underwrite a buyer, someone who's going to be, you know, seller financing from you as the lender as the owner.   Pete: So, I don't really care about credit at that point because if they had good credit, they're not coming they're not buying.   Michael: They go then to a bank…   Pete: Right, exactly. So what I'm looking for and what I'm always looking for is why is it credit bad, right? So are they not paying their rent or are they not paying the you know, the electric bill or whatever, whatever, you know, car or bill or whatever it is, right? So I want to know what kind of why they're why they have such bad debt. I don't care why they have such bad credit, I don't care that bad credit and then I'm looking at cash, how much money they make. So what happens is a lot of these guys, so guy that that bought my property, he's in like the construction business, right? So he has his own little deal, he can't show he shows no income, but he showed me his bank statements and he showed me his deposits for the last couple of years and so I just look at how much cash do you have, can you afford it right and then, as a property manager, I always go to two and a half to three times. So if I can get two and a half to three times of cash for what it's going to cost them all in, then I feel I feel at that point, it's not that big a deal. Also, he's paid me 10% down. So I have some cash there. So if he did move out, or couldn't afford any more, I got a little bit of cash, I could make the place a little bit nicer. Okay but the mentality of somebody who buys your property, even if it's owner finance verse, somebody who rents your property, let me just tell you what happens, right? When somebody used to rent that property, what they used to do there give me a long list of stuff that didn't work in the house, that they wanted me to fix it, right, even though the lease says, as is all that good stuff, right? When somebody buys a house, they're getting a long list, and they're improving the house. When somebody rents your house, they're paying the car to pay the electric, they're paying their damn Hulu bill before they pay you because they know that they can they know the eviction process all the way through and how long it take them right? When they own the house were they paying first and for paying…   Michael: The mortgage first. Every time they pay the mortgage, first…   Pete: Hulu gets put on the back burner, the car payment gets put on the back burner. So the mentality is completely different. I've only I've only you know, I think he's been over there a little over a year, never had one issue with payment. Knock on wood.   Michael: That's great and is the term is the note do you get it full term to 20 years or is it a couple of shorter year term with a 20 year AM?   Pete: I will have to double check but I'm pretty sure it's just a 20 year amortization and he just pays me to 20 years and then that's it. So what a lot of people say to me is well, Pete, you're missing out on the appreciation, right? Like, if you sold the house or 100, or the house is worth 120,000 or 200, right? So if you think about this, Michael, most people don't pay extra. Most people don't pay the house off early or if they do right grade, they pay the house off early. They make my money. But he's paying $60 In principal and $680 in interest, right? If you if you pay that house off in 20 years, he's gonna pay that he's gonna pay about 240,000 hours on that house. I think I got my appreciation.   Michael: Just fine. Yeah. Oh, man. I love it, I love it. That is so cool Pete. That is such a great story.   Pete: I built into cushion of 20,000 so that he can't refinance right away. Right, because the house is only worth 100. So by no one's gonna give him $110,000 or whatever it takes to refinance the house. So by increasing it a little bit, you save yourself at least those first you know, five years or so.   Michael: Super, super smart. Super smart.   Pete: Yeah, that's a good one.   Michael: That's a that's a really that's really good, man. Pete, we could chat for hours, man. What's the best way if people want to learn more about you reach out to you for, nobody gets to cover your VPM solutions today, but learn more about your words, where is the best place to do so?   Pete: Yeah, you know, best thing is they can actually I'm on all the socials I guess. But it's Pete Neubig NEU big and you can email me at: pete@vpmsolutions.com or you can just go to our website to https://www.vpmsolutions.com/ and check us out.   Michael: Right on man. Well, thanks again for coming on and sharing some wisdom, really appreciate you.   Pete: Thanks, Michael. Very good talking to you.   Michael: All right, when that was our episode, a big thank you to Pete for coming on super interesting way of thinking and doing things just a little bit differently than maybe we hear about what we need to be doing as investors. So as always, if you've liked the episode, we'd love to hear from you ratings and feedback are always appreciated, and we look forward to seeing you the next one. Happy investing…

We are back in the writers' room and we have a guest in our hot seat this week! In this special edition Laura and Pete chat about publishing his book - Gathering Rosebuds in Kerala.Laura asks Pete:You've finished. You've hit publish. How do you feel?What is a rosebud?What was the hardest part of writing your book?Did you find any part of the process surprising?Three things you've learnt.What did you enjoy about this process?Sell your book in a sentence.What's next?Gathering Rosebuds in Kerala.Part colourful travelogue, part heart-warming memoir, Gathering Rosebuds in Kerala, is a journey through bustling cities, backwater canals, and the stunning beaches of South-West India, with insightful reflections on facing ageing, discovering meaning in life, and storing life's special moments forever. Travel with Peter as he celebrates his upcoming sixtieth birthday, revealing India's rich history, religions and philosophy through his careful observations. Witness the splendour and majesty of India, side by side with its brutal poverty and prejudice. Along the way, Peter encounters evangelical nuns, experiences remnants of the British Raj, and finds new friends and the kindness of strangers alike. Within this kaleidoscope of Indian culture, colour, and chaos, you'll also explore how to recognise and store those unique memorable moments — the ‘rosebuds' of your life.Do you fear the years of your life passing? This book, if you let it, will transform how you feel about growing older. Instead of viewing time speeding forwards faster, running out, Peter shows how an altered perspective on ageing can help see your future and past are expanding. You might just discover your own fresh perspectives on living, ageing, and even dying.----We want to hear from you if you have read Pete's book and have questions about the ideas, or writing the book.Please write to us at - info@derbyshirewritingschool.comSend us a voice message.Thanks for listening!

About PetePete does many startup things at Allma. Links: Last Tweet in AWS: https://lasttweetinaws.com Twitter: https://twitter.com/petecheslock LinkedIn: https://www.linkedin.com/in/petecheslock/ TranscriptAnnouncer: Hello, and welcome to Screaming in the Cloud with your host, Chief Cloud Economist at The Duckbill Group, Corey Quinn. This weekly show features conversations with people doing interesting work in the world of cloud, thoughtful commentary on the state of the technical world, and ridiculous titles for which Corey refuses to apologize. This is Screaming in the Cloud.Corey: This episode is sponsored in part byLaunchDarkly. Take a look at what it takes to get your code into production. I'm going to just guess that it's awful because it's always awful. No one loves their deployment process. What if launching new features didn't require you to do a full-on code and possibly infrastructure deploy? What if you could test on a small subset of users and then roll it back immediately if results aren't what you expect? LaunchDarkly does exactly this. To learn more, visitlaunchdarkly.com and tell them Corey sent you, and watch for the wince.Corey: This episode is sponsored in part by our friends at Redis, the company behind the incredibly popular open source database that is not the bind DNS server. If you're tired of managing open source Redis on your own, or you're using one of the vanilla cloud caching services, these folks have you covered with the go to manage Redis service for global caching and primary database capabilities; Redis Enterprise. To learn more and deploy not only a cache but a single operational data platform for one Redis experience, visit redis.com/hero. Thats r-e-d-i-s.com/hero. And my thanks to my friends at Redis for sponsoring my ridiculous non-sense.  Corey: Welcome to Screaming in the Cloud. I'm Corey Quinn. I am joined—as is tradition, for a post re:Invent wrap up, a month or so later, once everything is time to settle—by my friend and yours, Pete Cheslock. Pete, how are you?Pete: Hi, I'm doing fantastic. New year; new me. That's what I'm going with.Corey: That's the problem. I keep hoping for that, but every time I turn around, it's still me. And you know, honestly, I wouldn't wish that on anyone.Pete: Exactly. [laugh]. I wouldn't wish you on me either. But somehow I keep coming back for this.Corey: So, in two-thousand twenty—or twenty-twenty, as the children say—re:Invent was fully virtual. And that felt weird. Then re:Invent 2021 was a hybrid event which, let's be serious here, is not really those things. They had a crappy online thing and then a differently crappy thing in person. But it didn't feel real to me because you weren't there.That is part of the re:Invent tradition. There's a midnight madness thing, there's a keynote where they announce a bunch of nonsense, and then Pete and I go and have brunch on the last day of re:Invent and decompress, and more or less talk smack about everything that crosses our minds. And you weren't there this year. I had to backfill you with Tim Banks. You know, the person that I backfield you with here at The Duckbill Group as a principal cloud economist.Pete: You know, you got a great upgrade in hot takes, I feel like, with Tim.Corey: And other ways, too, but it's rude of me to say that to you directly. So yeah, his hot takes are spectacular. He was going to be doing this with me, except you cannot mess with tradition. You really can't.Pete: Yeah. I'm trying to think how many—is this third year? It's at least three.Corey: Third or fourth.Pete: Yeah, it's at least three. Yeah, it was, I don't want to say I was sad to not be there because, with everything going on, it's still weird out there. But I am always—I'm just that weird person who actually likes re:Invent, but not for I feel like the reasons people think. Again, I'm such an extroverted-type person, that it's so great to have this, like, serendipity to re:Invent. The people that you run into and the conversations that you have, and prior—like in 2019, I think was a great example because that was the last one I had gone to—you know, having so many conversations so quickly because everyone is there, right? It's like this magnet that attracts technologists, and venture capital, and product builders, and all this other stuff. And it's all compressed into, like, you know, that five-day span, I think is the biggest part that makes so great.Corey: The fear in people's eyes when they see me. And it was fun; I had a pair of masks with me. One of them was a standard mask, and no one recognizes anyone because, masks, and the other was a printout of my ridiculous face, which was horrifyingly uncanny, but also made it very easy for people to identify me. And depending upon how social I was feeling, I would wear one or the other, and it worked flawlessly. That was worth doing. They really managed to thread the needle, as well, before Omicron hit, but after the horrors of last year. So, [unintelligible 00:03:00]—Pete: It really—Corey: —if it were going on right now, it would not be going on right now.Pete: Yeah. I talk about really—yeah—really just hitting it timing-wise. Like, not that they could have planned for any of this, but like, as things were kind of not too crazy and before they got all crazy again, it feels like wow, like, you know, they really couldn't have done the event at any other time. And it's like, purely due to luck. I mean, absolute one hundred percent.Corey: That's the amazing power of frugality. Because the reason is then is it's the week after Thanksgiving every year when everything is dirt cheap. And, you know, if there's one thing that I one-point-seve—sorry, their stock's in the toilet—a $1.6 trillion company is very concerned about, it is saving money at every opportunity.Pete: Well, the one thing that was most curious about—so I was at the first re:Invent in-what—2012 I think it was, and there was—it was quaint, right?—there was 4000 people there, I want to say. It was in the thousands of people. Now granted, still a big conference, but it was in the Sands Convention Center. It was in that giant room, the same number of people, were you know, people's booths were like tables, like, eight-by-ten tables, right? [laugh].It had almost a DevOpsDays feel to it. And I was kind of curious if this one had any of those feelings. Like, did it evoke it being more quaint and personable, or was it just as soulless as it probably has been in recent years?Corey: This was fairly soulless because they reduced the footprint of the event. They dropped from two expo halls down to one, they cut the number of venues, but they still had what felt like 20,000 people or something there. It was still crowded, it was still packed. And I've done some diligent follow-ups afterwards, and there have been very few cases of Covid that came out of it. I quarantined for a week in a hotel, so I don't come back and kill my young kids for the wrong reasons.And that went—that was sort of like the worst part of it on some level, where it's like great. Now I could sit alone at a hotel and do some catch-up and all the rest, but all right I'd kind of like to go home. I'm not used to being on the road that much.Pete: Yeah, I think we're all a little bit out of practice. You know, I haven't been on a plane in years. I mean, the travel I've done more recently has been in my car from point A to point B. Like, direct, you know, thing. Actually, a good friend of mine who's not in technology at all had to travel for business, and, you know, he also has young kids who are under five, so he when he got back, he actually hid in a room in their house and quarantine himself in the room. But they—I thought, this is kind of funny—they never told the kids he was home. Because they knew that like—Corey: So, they just thought the house was haunted?Pete: [laugh].Corey: Like, “Don't go in the west wing,” sort of level of nonsense. That is kind of amazing.Pete: Honestly, like, we were hanging out with the family because they're our neighbors. And it was like, “Oh, yeah, like, he's in the guest room right now.” Kids have no idea. [laugh]. I'm like, “Oh, my God.” I'm like, I can't even imagine. Yeah.Corey: So, let's talk a little bit about the releases of re:Invent. And I'm going to lead up with something that may seem uncharitable, but I don't think it necessarily is. There weren't the usual torrent of new releases for ridiculous nonsense in the same way that there have been previously. There was no, this service talks to satellites in space. I mean, sure, there was some IoT stuff to manage fleets of cars, and giant piles of robots, and cool, I don't have those particular problems; I'm trying to run a website over here.So okay, great. There were enhancements to a number of different services that were in many cases appreciated, in other cases, irrelevant. Werner said in his keynote, that it was about focusing on primitives this year. And, “Why do we have so many services? It's because you asked for it… as customers.”Pete: [laugh]. Yeah, you asked for it.Corey: What have you been asking for, Pete? Because I know what I've been asking for and it wasn't that. [laugh].Pete: It's amazing to see a company continually say yes to everything, and somehow, despite their best efforts, be successful at doing it. No other company could do that. Imagine any other software technology business out there that just builds everything the customers ask for. Like from a product management business standpoint, that is, like, rule 101 is, “Listen to your customers, but don't say yes to everything.” Like, you can't do everything.Corey: Most companies can't navigate the transition between offering the same software in the Cloud and on a customer facility. So, it's like, “Ooh, an on-prem version, I don't know, that almost broke the company the last time we tried it.” Whereas you have Amazon whose product strategy is, “Yes,” being able to put together a whole bunch of things. I also will challenge the assertion that it's the primitives that customers want. They don't want to build a data center out of popsicle sticks themselves. They want to get something that solves a problem.And this has been a long-term realization for me. I used to work at Media Temple as a senior systems engineer running WordPress at extremely large scale. My websites now run on WordPress, and I have the good sense to pay WP Engine to handle it for me, instead of doing it myself because it's not the most productive use of my time. I want things higher up the stack. I assure you I pay more to WP Engine than it would cost me to run these things myself from an infrastructure point of view, but not in terms of my time.What I see sometimes as the worst of all worlds is that AWS is trying to charge for that value-added pricing without adding the value that goes along with it because you still got to build a lot of this stuff yourself. It's still a very janky experience, you're reduced to googling random blog posts to figure out how this thing is supposed to work, and the best documentation comes from externally. Whereas with a company that's built around offering solutions like this, great. In the fullness of time, I really suspect that if this doesn't change, their customers are going to just be those people who build solutions out of these things. And let those companies capture the up-the-stack margin. Which I have no problem with. But they do because Amazon is a company that lies awake at night actively worrying that someone, somewhere, who isn't them might possibly be making money somehow.Pete: I think MongoDB is a perfect example of—like, look at their stock price over the last whatever, years. Like, they, I feel like everyone called for the death of MongoDB every time Amazon came out with their new things, yet, they're still a multi-billion dollar company because I can just—give me an API endpoint and you scale the database. There's is—Corey: Look at all the high-profile hires that Mongo was making out of AWS, and I can't shake the feeling they're sitting there going, “Yeah, who's losing important things out of production now?” It's, everyone is exodus-ing there. I did one of those ridiculous graphics of the naming all the people that went over there, and in—with the hurricane evacuation traffic picture, and there's one car going the other way that I just labeled with, “Re:Invent sponsorship check,” because yeah, they have a top tier sponsorship and it was great. I've got to say I've been pretty down on MongoDB for a while, for a variety of excellent reasons based upon, more or less, how they treated customers who were in pain. And I'd mostly written it off.I don't do that anymore. Not because I inherently believe the technology has changed, though I'm told it has, but by the number of people who I deeply respect who are going over there and telling me, no, no, this is good. Congratulations. I have often said you cannot buy authenticity, and I don't think that they are, but the people who are working there, I do not believe that these people are, “Yeah, well, you bought my opinion. You can buy their attention, not their opinion.” If someone changes their opinion, based upon where they work, I kind of question everything they're telling me is, like, “Oh, you're just here to sell something you don't believe in? Welcome aboard.”Pete: Right. Yeah, there's an interview question I like to ask, which is, “What's something that you used to believe in very strongly that you've more recently changed your mind on?” And out of politeness because usually throws people back a little bit, and they're like, “Oh, wow. Like, let me think about that.” And I'm like, “Okay, while you think about that I want to give you mine.”Which is in the past, my strongly held belief was we had to run everything ourselves. “You own your availability,” was the line. “No, I'm not buying Datadog. I can build my own metric stack just fine, thank you very much.” Like, “No, I'm not going to use these outsourced load balancers or databases because I need to own my availability.”And what I realized is that all of those decisions lead to actually delivering and focusing on things that were not the core product. And so now, like, I've really flipped 180, that, if any—anything that you're building that does not directly relate to the core product, i.e. How your business makes money, should one hundred percent be outsourced to an expert that is better than you. Mongo knows how to run Mongo better than you.Corey: “What does your company do?” “Oh, we handle expense reports.” “Oh, what are you working on this month?” “I'm building a load balancer.” It's like that doesn't add the value. Don't do that.Pete: Right. Exactly. And so it's so interesting, I think, to hear Werner say that, you know, we're just building primitives, and you asked for this. And I think that concept maybe would work years ago, when you had a lot of builders who needed tools, but I don't think we have any, like, we don't have as many builders as before. Like, I think we have people who need more complete solutions. And that's probably why all these businesses are being super successful against Amazon.Corey: I'm wondering if it comes down to a cloud economic story, specifically that my cloud bill is always going to be variable and it's difficult to predict, whereas if I just use EC2 instances, and I build load balancers or whatnot, myself, well, yeah, it's a lot more work, but I can predict accurately what my staff compensation costs are more effectively, that I can predict what a CapEx charge would be or what the AWS bill is going to be. I'm wondering if that might in some way shape it?Pete: Well, I feel like the how people get better in managing their costs, right, you'll eventually move to a world where, like, “Yep, okay, first, we turned off waste,” right? Like, step one is waste. Step two is, like, understanding your spend better to optimize but, like, step three, like, the galaxy brain meme of Amazon cost stuff is all, like, unit economics stuff, where trying to better understand the actual cost deliver an actual feature. And yeah, I think that actually gets really hard when you give—kind of spread your product across, like, a slew of services that have varying levels of costs, varying levels of tagging, so you can attribute it. Like, it's really hard. Honestly, it's pretty easy if I have 1000 EC2 servers with very specific tags, I can very easily figure out what it costs to deliver product. But if I have—Corey: Yeah, if I have Corey build it, I know what Corey is going to cost, and I know how many servers he's going to use. Great, if I have Pete it, Pete's good at things, it'll cut that server bill in half because he actually knows how to wind up being efficient with things. Okay, great. You can start calculating things out that way. I don't think that's an intentional choice that companies are making, but I feel like that might be a natural outgrowth of it.Pete: Yeah. And there's still I think a lot of the, like, old school mentality of, like, the, “Not invented here,” the, “We have to own our availability.” You can still own your availability by using these other vendors. And honestly, it's really heartening to see so many companies realize that and realize that I don't need to get everything from Amazon. And honestly, like, in some things, like I look at a cloud Amazon bill, and I think to myself, it would be easier if you just did everything from Amazon versus having these ten other vendors, but those ten other vendors are going to be a lot better at running the product that they build, right, that as a service, then you probably will be running it yourself. Or even Amazon's, like, you know, interpretation of that product.Corey: A few other things that came out that I thought were interesting, at least the direction they're going in. The changes to S3 intelligent tiering are great, with instant retrieval on Glacier. I feel like that honestly was—they talk a good story, but I feel like that was competitive response to Google offering the same thing. That smacks of a large company with its use case saying, “You got two choices here.” And they're like, “Well, okay. Crap. We're going to build it then.”Or alternately, they're looking at the changes that they're making to intelligent tiering, they're now shifting that to being the default that as far as recommendations go. There are a couple of drawbacks to it, but not many, and it's getting easier now to not have the mental overhead of trying to figure out exactly what your lifecycle policies are. Yeah, there are some corner cases where, okay, if I adjust this just so, then I could save 10% on that monitoring fee or whatnot. Yeah, but look how much work that's going to take you to curate and make sure that you're not doing something silly. That feels like it is such an in the margins issue. It's like, “How much data you're storing?” “Four exabytes.” Okay, yeah. You probably want some people doing exactly that, but that's not most of us.Pete: Right. Well, there's absolutely savings to be had. Like, if I had an exabyte of data on S3—which there are a lot of people who have that level of data—then it would make sense for me to have an engineering team whose sole purpose is purely an optimizing our data lifecycle for that data. Until a point, right? Until you've optimized the 80%, basically. You optimize the first 80, that's probably, air-quote, “Easy.” The last 20 is going to be incredibly hard, maybe you never even do that.But at lower levels of scale, I don't think the economics actually work out to have a team managing your data lifecycle of S3. But the fact that now AWS can largely do it for you in the background—now, there's so many things you have to think about and, like, you know, understand even what your data is there because, like, not all data is the same. And since S3 is basically like a big giant database you can query, you got to really think about some of that stuff. But honestly, what I—I don't know if—I have no idea if this is even be worked on, but what I would love to see—you know, hashtag #AWSwishlist—is, now we have countless tiers of EBS volumes, EBS volumes that can be dynamically modified without touching, you know, the physical host. Meaning with an API call, you can change from the gp2 to gp3, or io whatever, right?Corey: Or back again if it doesn't pan out.Pete: Or back again, right? And so for companies with large amounts of spend, you know, economics makes sense that you should have a team that is analyzing your volumes usage and modifying that daily, right? Like, you could modify that daily, and I don't know if there's anyone out there that's actually doing it at that level. And they probably should. Like, if you got millions of dollars in EBS, like, there's legit savings that you're probably leaving on the table without doing that. But that's what I'm waiting for Amazon to do for me, right? I want intelligent tiering for EBS because if you're telling me I can API call and you'll move my data and make that better, make that [crosstalk 00:17:46] better [crosstalk 00:17:47]—Corey: Yeah it could be like their auto-scaling for DynamoDB, for example. Gives you the capacity you need 20 minutes after you needed it. But fine, whatever because if I can schedule stuff like that, great, I know what time of day, the runs are going to kick off that beat up the disks. I know when end-of-month reporting fires off. I know what my usage pattern is going to be, by and large.Yeah, part of the problem too, is that I look at this stuff, and I get excited about it with the intelligent tiering… at The Duckbill Group we've got a few hundred S3 buckets lurking around. I'm thinking, “All right, I've got to go through and do some changes on this and implement all of that.” Our S3 bill's something like 50 bucks a month or something ridiculous like that. It's a no, that really isn't a thing. Like, I have a screenshot bucket that I have an app installed—I think called Dropshare—that hooks up to anytime I drag—I hit a shortcut, I drag with the mouse to select whatever I want and boom, it's up there and the URL is not copied to my clipboard, I can paste that wherever I want.And I'm thinking like, yeah, there's no cleanup on that. There's no lifecycle policy that's turning into anything. I should really go back and age some of it out and do the rest and start doing some lifecycle management. It—I've been using this thing for years and I think it's now a whopping, what, 20 cents a month for that bucket. It's—I just don't—Pete: [laugh].Corey: —I just don't care, other than voice in the back of my mind, “That's an unbounded growth problem.” Cool. When it hits 20 bucks a month, then I'll consider it. But until then I just don't. It does not matter.Pete: Yeah, I think yeah, scale changes everything. Start adding some zeros and percentages turned into meaningful numbers. And honestly, back on the EBS thing, the one thing that really changed my perspective of EBS, in general, is—especially coming from the early days, right? One terabyte volume, it was a hard drive in a thing. It was a virtual LUN on a SAN somewhere, probably.Nowadays, and even, like, many years after those original EBS volumes, like all the limits you get in EBS, those are actually artificial limits, right? If you're like, “My EBS volume is too slow,” it's not because, like, the hard drive it's on is too slow. That's an artificial limit that is likely put in place due to your volume choice. And so, like, once you realize that in your head, then your concept of how you store data on EBS should change dramatically.Corey: Oh, AWS had a blog post recently talking about, like, with io2 and the limits and everything, and there was architecture thinking, okay. “So, let's say this is insufficient and the quarter-million IOPS a second that you're able to get is not there.” And I'm sitting there thinking, “That is just ludicrous data volume and data interactivity model.” And it's one of those, like, I'm sitting here trying to think about, like, I haven't had to deal with a problem like that decade, just because it's, “Huh. Turns out getting these one thing that's super fast is kind of expensive.” If you paralyze it out, that's usually the right answer, and that's how the internet is mostly evolved. But there are use cases for which that doesn't work, and I'm excited to see it. I don't want to pay for it in my view, but it's nice to see it.Pete: Yeah, it's kind of fun to go into the Amazon calculator and price out one of the, like, io2 volumes and, like, maxed out. It's like, I don't know, like $50,000 a month or a hun—like, it's some just absolutely absurd number. But the beauty of it is that if you needed that value for an hour to run some intensive data processing task, you can have it for an hour and then just kill it when you're done, right? Like, that is what is most impressive.Corey: I copied 130 gigs of data to an EFS volume, which was—[unintelligible 00:21:05] EFS has gone from “This is a piece of junk,” to one of my favorite services. It really is, just because of its utility and different ways of doing things. I didn't have the foresight, just use a second EFS volume for this. So, I was unzipping a whole bunch of small files onto it. Great.It took a long time for me to go through it. All right, now that I'm done with that I want to clean all this up. My answer was to ultimately spin up a compute node and wind up running a whole bunch of—like, 400, simultaneous rm-rf on that long thing. And it was just, like, this feels foolish and dumb, but here we are. And I'm looking at the stats on it because the instance was—all right, at that point, the load average [on the instance 00:21:41] was like 200, or something like that, and the EFS volume was like, “Ohh, wow, you're really churning on this. I'm now at, like, 5% of the limit.” Like, okay, great. It turns out I'm really bad at computers.Pete: Yeah, well, that's really the trick is, like, yeah, sure, you can have a quarter-million IOPS per second, but, like, what's going to break before you even hit that limit? Probably many other things.Corey: Oh, yeah. Like, feels like on some level if something gets to that point, it a misconfiguration somewhere. But honestly, that's the thing I find weirdest about the world in which we live is that at a small-scale—if I have a bill in my $5 a month shitposting account, great. If I screw something up and cost myself a couple hundred bucks in misconfiguration it's going to stand out. At large scale, it doesn't matter if—you're spending $50 million a year or $500 million a year on AWS and someone leaks your creds, and someone spins up a whole bunch of Bitcoin miners somewhere else, you're going to see that on your bill until they're mining basically all the Bitcoin. It just gets lost in the background.Pete: I'm waiting for those—I'm actually waiting for the next level of them to get smarter because maybe you have, like, an aggressive tagging system and you're monitoring for untagged instances, but the move here would be, first get the creds and query for, like, the most used tags and start applying those tags to your Bitcoin mining instances. My God, it'll take—Corey: Just clone a bunch of tags. Congratulations, you now have a second BI Elasticsearch cluster that you're running yourself. Good work.Pete: Yeah. Yeah, that people won't find that until someone comes along after the fact that. Like, “Why do we have two have these things?” And you're like—[laugh].Corey: “Must be a DR thing.”Pete: It's maxed-out CPU. Yeah, exactly.Corey: [laugh].Pete: Oh, the terrible ideas—please, please, hackers don't take are terrible ideas.Corey: I had a, kind of, whole thing I did on Twitter years ago, talking about how I would wind up using the AWS Marketplace for an embezzlement scheme. Namely, I would just wind up spinning up something that had, like, a five-cent an hour charge or whatnot on just, like, basically rebadge the CentOS Community AMI or whatnot. Great. And then write a blog post, not attached to me, that explains how to do a thing that I'm going to be doing in production in a week or two anyway. Like, “How to build an auto-scaling group,” and reference that AMI.Then if it ever comes out, like, “Wow, why are we having all these marketplace charges on this?” “I just followed the blog post like it said here.” And it's like, “Oh, okay. You're a dumbass. The end.”That's the way to do it. A month goes by and suddenly it came out that someone had done something similarly. They wound up rebadging these community things on the marketplace and charging big money for it, and I'm sitting there going like that was a joke. It wasn't a how-to. But yeah, every time I make these jokes, I worry someone's going to do it.Pete: “Welcome to large-scale fraud with Corey Quinn.”Corey: Oh, yeah, it's fraud at scale is really the important thing here.Corey: This episode is sponsored by our friends at Oracle HeatWave is a new high-performance accelerator for the Oracle MySQL Database Service. Although I insist on calling it “my squirrel.” While MySQL has long been the worlds most popular open source database, shifting from transacting to analytics required way too much overhead and, ya know, work. With HeatWave you can run your OLTP and OLAP, don't ask me to ever say those acronyms again, workloads directly from your MySQL database and eliminate the time consuming data movement and integration work, while also performing 1100X faster than Amazon Aurora, and 2.5X faster than Amazon Redshift, at a third of the cost. My thanks again to Oracle Cloud for sponsoring this ridiculous nonsense.Corey: I still remember a year ago now at re:Invent 2021 was it, or was it 2020? Whatever they came out with, I want to say it wasn't gp3, or maybe it was, regardless, there was a new EBS volume type that came out that you were playing with to see how it worked and you experimented with it—Pete: Oh, yes.Corey: —and the next morning, you looked at the—I checked Slack and you're like well, my experiments yesterday cost us $5,000. And at first, like, the—my response is instructive on this because, first, it was, “Oh, my God. What's going to happen now?” And it's like, first, hang on a second.First off, that seems suspect but assume it's real. I assumed it was real at the outset. It's “Oh, right. This is not my personal $5-a-month toybox account. We are a company; we can absolutely pay that.” Because it's like, I could absolutely reach out, call it a favor. “I made a mistake, and I need a favor on the bill, please,” to AWS.And I would never live it down, let's be clear. For a $7,000 mistake, I would almost certainly eat it. As opposed to having to prostrate myself like that in front of Amazon. I'm like, no, no, no. I want one of those like—if it's like, “Okay, you're going to, like, set back the company roadmap by six months if you have to pay this. Do you want to do it?” Like, [groans] “Fine, I'll eat some crow.”But okay. And then followed immediately by, wow, if Pete of all people can mess this up, customers are going to be doomed here. We should figure out what happened. And I'm doing the math. Like, Pete, “What did you actually do?” And you're sitting there and you're saying, “Well, I had like a 20 gig volume that I did this.” And I'm doing the numbers, and it's like—Pete: Something's wrong.Corey: “How sure are you when you say ‘gigabyte,' that you were—that actually means what you think it did? Like, were you off by a lot? Like, did you mean exabytes?” Like, what's the deal here?Pete: Like, multiple factors.Corey: Yeah. How much—“How many IOPS did you give that thing, buddy?” And it turned out what happened was that when they launched this, they had mispriced it in the system by a factor of a million. So, it was fun. I think by the end of it, all of your experimentation was somewhere between five to seven cents. Which—Pete: Yeah. It was a—Corey: Which is why you don't work here anymore because no one cost me seven cents of money to give to Amazon—Pete: How dare you?Corey: —on my watch. Get out.Pete: How dare you, sir?Corey: Exactly.Pete: Yeah, that [laugh] was amazing to see, as someone who has done—definitely maid screw-ups that have cost real money—you know, S3 list requests are always a fun one at scale—but that one was supremely fun to see the—Corey: That was a scary one because another one they'd done previously was they had messed up Lightsail pricing, where people would log in, and, like, “Okay, so what is my Lightsail instance going to cost?” And I swear to you, this is true, it was saying—this was back in 2017 or so—the answer was, like, “$4.3 billion.” Because when you see that you just start laughing because you know it's a mistake. You know, that they're not going to actually demand that you spend $4.3 billion for a single instance—unless it's running SAP—and great.It's just, it's a laugh. It's clearly a mispriced, and it's clearly a bug that's going to get—it's going to get fixed. I just spun up this new EBS volume that no one fully understands yet and it cost me thousands of dollars. That's the sort of thing that no, no, I could actually see that happening. There are instances now that cost something like 100 bucks an hour or whatnot to run. I can see spinning up the wrong thing by mistake and getting bitten by it. There's a bunch of fun configuration mistakes you can make that will, “Hee, hee, hee. Why can I see that bill spike from orbit?” And that's the scary thing.Pete: Well, it's the original CI and CD problem of the per-hour billing, right? That was super common of, like, yeah, like, an i3, you know, 16XL server is pretty cheap per hour, but if you're charged per hour and you spin up a bunch for five minutes. Like, it—you will be shocked [laugh] by what you see there. So—Corey: Yeah. Mistakes will show. And I get it. It's also people as individuals are very different psychologically than companies are. With companies it's one of those, “Great we're optimizing to bring in more revenue and we don't really care about saving money at all costs.”Whereas people generally have something that looks a lot like a fixed income in the form of a salary or whatnot, so it's it is easier for us to cut spend than it is for us to go out and make more money. Like, I don't want to get a second job, or pitch my boss on stuff, and yeah. So, all and all, routing out the rest of what happened at re:Invent, they—this is the problem is that they have a bunch of minor things like SageMaker Inference Recommender. Yeah, I don't care. Anything—Pete: [laugh].Corey: —[crosstalk 00:28:47] SageMaker I mostly tend to ignore, for safety. I did like the way they described Amplify Studio because they made it sound like a WYSIWYG drag and drop, build a React app. It's not it. It basically—you can do that in Figma and then it can hook it up to some things in some cases. It's not what I want it to be, which is Honeycode, except good. But we'll get there some year. Maybe.Pete: There's a lot of stuff that was—you know, it's the classic, like, preview, which sure, like, from a product standpoint, it's great. You know, they have a level of scale where they can say, “Here's this thing we're building,” which could be just a twinkle in a product managers, call it preview, and get thousands of people who would be happy to test it out and give you feedback, and it's a, it's great that you have that capability. But I often look at so much stuff and, like, that's really cool, but, like, can I, can I have it now? Right? Like—or you can't even get into the preview plan, even though, like, you have that specific problem. And it's largely just because either, like, your scale isn't big enough, or you don't have a good enough relationship with your account manager, or I don't know, countless other reasons.Corey: The thing that really throws me, too, is the pre-announcements that come a year or so in advance, like, the Outpost smaller ones are finally available, but it feels like when they do too many pre-announcements or no big marquee service announcements, as much as they talk about, “We're getting back to fundamentals,” no, you have a bunch of teams that blew the deadline. That's really what it is; let's not call it anything else. Another one that I think is causing trouble for folks—I'm fortunate in that I don't do much work with Oracle databases, or Microsoft SQL databases—but they extended RDS Custom to Microsoft SQL at the [unintelligible 00:30:27] SQL server at re:Invent this year, which means this comes down to things I actually use, we're going to have a problem because historically, the lesson has always been if I want to run my own databases and tweak everything, I do it on top of an EC2 instance. If I want to managed database, relational database service, great, I use RDS. RDS Custom basically gives you root into the RDS instance. Which means among other things, yes, you can now use RDS to run containers.But it lets you do a lot of things that are right in between. So, how do you position this? When should I use RDS Custom? Can you give me an easy answer to that question? And they used a lot of words to say, no, they cannot. It's basically completely blowing apart the messaging and positioning of both of those services in some unfortunate ways. We'll learn as we go.Pete: Yeah. Honestly, it's like why, like, why would I use this? Or how would I use this? And this is I think, fundamentally, what's hard when you just say yes to everything. It's like, they in many cases, I don't think, like, I don't want to say they don't understand why they're doing this, but if it's not like there's a visionary who's like, this fits into this multi-year roadmap.That roadmap is largely—if that roadmap is largely generated by the customers asking for it, then it's not like, oh, we're building towards this Northstar of RDS being whatever. You might say that, but your roadmap's probably getting moved all over the place because, you know, this company that pays you a billion dollars a year is saying, “I would give you $2 billion a year for all of my Oracle databases, but I need this specific thing.” I can't imagine a scenario that they would say, “Oh, well, we're building towards this Northstar, and that's not on the way there.” Right? They'd be like, “New Northstar. Another billion dollars, please.”Corey: Yep. Probably the worst release of re:Invent, from my perspective, is RUM, Real User Monitoring, for CloudWatch. And I, to be clear, I wrote a shitposting Twitter threading client called Last Tweet in AWS. Go to lasttweetinaws.com. You can all use it. It's free; I just built this for my own purposes. And I've instrumented it with RUM. Now, Real User Monitoring is something that a lot of monitoring vendors use, and also CloudWatch now. And what that is, is it embeds a listener into the JavaScript that runs on client load, and it winds up looking at what's going on loading times, et cetera, so you can see when users are unhappy. I have no problem with this. Other than that, you know, liking users? What's up with that?Pete: Crazy.Corey: But then, okay, now, what this does is unlike every other RUM tool out there, which charges per session, meaning I am going to be… doing a web page load, it charges per data item, which includes HTTP errors, or JavaScript errors, et cetera. Which means that if you have a high transaction volume site and suddenly your CDN takes a nap like Fastly did for an hour last year, suddenly your bill is stratospheric for this because errors abound and cascade, and you can have thousands of errors on a single page load for these things, and it is going to be visible from orbit, at least with a per session basis thing, when you start to go viral, you understand that, “Okay, this is probably going to cost me some more on these things, and oops, I guess I should write less compelling content.” Fine. This is one of those one misconfiguration away and you are wailing and gnashing teeth. Now, this is a new service. I believe that they will waive these surprise bills in the event that things like that happen. But it's going to take a while and you're going to be worrying the whole time if you've rolled this out naively. So it's—Pete: Well and—Corey: —I just don't like the pricing.Pete: —how many people will actively avoid that service, right? And honestly, choose a competitor because the competitor could be—the competitor could be five times more expensive, right, on face value, but it's the certainty of it. It's the uncertainty of what Amazon will charge you. Like, no one wants a surprise bill. “Well, a vendor is saying that they'll give us this contract for $10,000. I'm going to pay $10,000, even though RUM might be a fraction of that price.”It's honestly, a lot of these, like, product analytics tools and monitoring tools, you'll often see they price be a, like, you know, MAU, Monthly Active User, you know, or some sort of user-based pricing, like, the number of people coming to your site. You know, and I feel like at least then, if you are trying to optimize for lots of users on your site, and more users means more revenue, then you know, if your spend is going up, but your revenue is also going up, that's a win-win. But if it's like someone—you know, your third-party vendor dies and you're spewing out errors, or someone, you know, upgraded something and it spews out errors. That no one would normally see; that's the thing. Like, unless you're popping open that JavaScript console, you're not seeing any of those errors, yet somehow it's like directly impacting your bottom line? Like that doesn't feel [crosstalk 00:35:06].Corey: Well, there is something vaguely Machiavellian about that. Like, “How do I get my developers to care about errors on consoles?” Like, how about we make it extortionately expensive for them not to. It's, “Oh, all right, then. Here we go.”Pete: And then talk about now you're in a scenario where you're working on things that don't directly impact the product. You're basically just sweeping up the floor and then trying to remove errors that maybe don't actually affect it and they're not actually an error.Corey: Yeah. I really do wonder what the right answer is going to be. We'll find out. Again, we live, we learn. But it's also, how long does it take a service that has bad pricing at launch, or an unfortunate story around it to outrun that reputation?People are still scared of Glacier because of its original restore pricing, which was non-deterministic for any sensible human being, and in some cases lead to I'm used to spending 20 to 30 bucks a month on this. Why was I just charged two grand?Pete: Right.Corey: Scare people like that, they don't come back.Pete: I'm trying to actually remember which service it is that basically gave you an estimate, right? Like, turn it on for a month, and it would give you an estimate of how much this was going to cost you when billing started.Corey: It was either Detective or GuardDuty.Pete: Yeah, it was—yeah, that's exactly right. It was one of those two. And honestly, that was unbelievably refreshing to see. You know, like, listen, you have the data, Amazon. You know what this is going to cost me, so when I, like, don't make me spend all this time to go and figure out the cost. If you have all this data already, just tell me, right?And if I look at it and go, “Yeah, wow. Like, turning this on in my environment is going to cost me X dollars. Like, yeah, that's a trade-off I want to make, I'll spend that.” But you know, with some of the—and that—a little bit of a worry on some of the intelligent tiering on S3 is that the recommendation is likely going to be everything goes to intelligent tiering first, right? It's the gp3 story. Put everything on gp3, then move it to the proper volume, move it to an sc or an st or an io. Like, gp3 is where you start. And I wonder if that's going to be [crosstalk 00:37:08].Corey: Except I went through a wizard yesterday to launch an EC2 instance and its default on the free tier gp2.Pete: Yeah. Interesting.Corey: Which does not thrill me. I also still don't understand for the life of me why in some regions, the free tier is a t2 instance, when t3 is available.Pete: They're uh… my guess is that they've got some free t—they got a bunch of t2s lying around. [laugh].Corey: Well, one of the most notable announcements at re:Invent that most people didn't pay attention to is their ability now to run legacy instance types on top of Nitro, which really speaks to what's going on behind the scenes of we can get rid of all that old hardware and emulate the old m1 on modern equipment. So, because—you can still have that legacy, ancient instance, but now you're going—now we're able to wind up greening our data centers, which is part of their big sustainability push, with their ‘Sustainability Pillar' for the well-architected framework. They're talking more about what the green choices in cloud are. Which is super handy, not just because of the economic impact because we could use this pretty directly to reverse engineer their various margins on a per-service or per-offering basis. Which I'm not sure they're aware of yet, but oh, they're going to be.And that really winds up being a win for the planet, obviously, but also something that is—that I guess puts a little bit of choice on customers. The challenge I've got is, with my serverless stuff that I build out, if I spend—the Google search I make to figure out what the most economic, most sustainable way to do that is, is going to have a bigger carbon impact on the app itself. That seems to be something that is important at scale, but if you're not at scale, it's one of those, don't worry about it. Because let's face it, the cloud providers—all of them—are going to have a better sustainability story than you are running this in your own data centers, or on a Raspberry Pi that's always plugged into the wall.Pete: Yeah, I mean, you got to remember, Amazon builds their own power plants to power their data centers. Like, that's the level they play, right? There, their economies of scale are so entirely—they're so entirely different than anything that you could possibly even imagine. So, it's something that, like, I'm sure people will want to choose for. But, you know, if I would honestly say, like, if we really cared about our computing costs and the carbon footprint of it, I would love to actually know the carbon footprint of all of the JavaScript trackers that when I go to various news sites, and it loads, you know, the whatever thousands of trackers and tracking the all over, like, what is the carbon impact of some of those choices that I actually could control, like, as a either a consumer or business person?Corey: I really hope that it turns into something that makes a meaningful difference, and it's not just greenwashing. But we'll see. In the fullness of time, we're going to figure that out. Oh, they're also launching some mainframe stuff. They—like that's great.Pete: Yeah, those are still a thing.Corey: I don't deal with a lot of customers that are doing things with that in any meaningful sense. There is no AWS/400, so all right.Pete: [laugh]. Yeah, I think honestly, like, I did talk to a friend of mine who's in a big old enterprise and has a mainframe, and they're actually replacing their mainframe with Lambda. Like they're peeling off—which is, like, a great move—taking the monolith, right, and peeling off the individual components of what it can do into these discrete Lambda functions. Which I thought was really fascinating. Again, it's a five-year-long journey to do something like that. And not everyone wants to wait five years, especially if their support's about to run out for that giant box in the, you know, giant warehouse.Corey: The thing that I also noticed—and this is probably the—I guess, one of the—talk about swing and a miss on pricing—they have a—what is it?—there's a VPC IP Address Manager, which tracks the the IP addresses assigned to your VPCs that are allocated versus not, and it's 20 cents a month per IP address. It's like, “Okay. So, you're competing against a Google Sheet or an Excel spreadsheet”—which is what people are using for these things now—“Only you're making it extortionately expensive?”Pete: What kind of value does that provide for 20—I mean, like, again—Corey: I think Infoblox or someone like that offers it where they become more cost-effective as soon as you hit 500 IP addresses. And it's just—like, this is what I'm talking about. I know it does not cost AWS that kind of money to store an IP address. You can store that in a Route 53 TXT record for less money, for God's sake. And that's one of those, like, “Ah, we could extract some value pricing here.”Like, I don't know if it's a good product or not. Given its pricing, I don't give a shit because it's going to be too expensive for anything beyond trivial usage. So, it's a swing and a miss from that perspective. It's just, looking at that, I laugh, and I don't look at it again.Pete: See I feel—Corey: I'm not usually price sensitive. I want to be clear on that. It's just, that is just Looney Tunes, clown shoes pricing.Pete: Yeah. It's honestly, like, in many cases, I think the thing that I have seen, you know, in the past few years is, in many cases, it can honestly feel like Amazon is nickel-and-diming their customers in so many ways. You know, the explosion of making it easy to create multiple Amazon accounts has a direct impact to waste in the cloud because there's a lot of stuff you have to have her account. And the more accounts you have, those costs grow exponentially as you have these different places. Like, you kind of lose out on the economies of scale when you have a smaller number of accounts.And yeah, it's hard to optimize for that. Like, if you're trying to reduce your spend, it's challenging to say, “Well, by making a change here, we'll save, you know, $10,000 in this account.” “That doesn't seem like a lot when we're spending millions.” “Well, hold on a second. You'll save $10,000 per account, and you have 500 accounts,” or, “You have 1000 accounts,” or something like that.Or almost cost avoidance of this cost is growing unbounded in all of your accounts. It's tiny right now. So, like, now would be the time you want to do something with it. But like, again, for a lot of companies that have adopted the practice of endless Amazon accounts, they've almost gone, like, it's the classic, like, you know, I've got 8000 GitHub repositories for my source code. Like, that feels just as bad as having one GitHub repository for your repo. I don't know what the balance is there, but anytime these different types of services come out, it feels like, “Oh, wow. Like, I'm going to get nickeled and dimed for it.”Corey: This ties into the re:Post launch, which is a rebranding of their forums, where, okay, great, it was a little crufty and it need modernize, but it still ties your identity to an IAM account, or the root email address for an Amazon account, which is great. This is completely worthless because as soon as I change jobs, I lose my identity, my history, the rest, on this forum. I'm not using it. It shows that there's a lack of awareness that everyone is going to have multiple accounts with which they interact, and that people are going to deal with the platform longer than any individual account will. It's just a continual swing and a miss on things like that.And it gets back to the billing question of, “Okay. When I spin up an account, do I want them to just continue billing me—because don't turn this off; this is important—or do I want there to be a hard boundary where if you're about to charge me, turn it off. Turn off the thing that's about to cost me money.” And people hem and haw like this is an insurmountable problem, but I think the way to solve it is, let me specify that intent when I provision the account. Where it's, “This is a production account for a bank. I really don't want you turning it off.” Versus, “I'm a student learner who thinks that a Managed NAT Gateway might be a good thing. Yeah, I want you to turn off my demo Hello World app that will teach me what's going on, rather than surprising me with a five-figure bill at the end of the month.”Pete: Yeah. It shouldn't be that hard. I mean, but again, I guess everything's hard at scale.Corey: Oh, yeah. Oh yeah.Pete: But still, I feel like every time I log into Cost Explorer and I look at—and this is years it's still not fixed. Not that it's even possible to fix—but on the first day of the month, you look at Cost Explorer, and look at what Amazon is estimating your monthly bill is going to be. It's like because of your, you know—Corey: Your support fees, and your RI purchases, and savings plans purchases.Pete: [laugh]. All those things happened, right? First of the month, and it's like, yeah, “Your bill's going to be $800,000 this year.” And it's like, “Shouldn't be, like, $1,000?” Like, you know, it's the little things like that, that always—Corey: The one-off charges, like, “Oh, your Route 53 zone,” and all the stuff that gets charged on a monthly cadence, which fine, whatever. I mean, I'm okay with it, but it's also the, like, be careful when that happen—I feel like there's a way to make that user experience less jarring.Pete: Yeah because that problem—I mean, in my scenario, companies that I've worked at, there's been multiple times that a non-technical person will look at that data and go into immediate freakout mode, right? And that's never something that you want to have happen because now that's just adding a lot of stress and anxiety into a company that is—with inaccurate data. Like, the data—like, the answer you're giving someone is just wrong. Perhaps you shouldn't even give it to them if it's that wrong. [laugh].Corey: Yeah, I'm looking forward to seeing what happens this coming year. We're already seeing promising stuff. They—give people a timeline on how long in advance these things record—late last night, AWS released a new console experience. When you log into the AWS console now, there's a new beta thing. And I gave it some grief on Twitter because I'm still me, but like the direction it's going. It lets you customize your view with widgets and whatnot.And until they start selling widgets on marketplace or having sponsored widgets, you can't remove I like it, which is no guarantee at some point. But it shows things like, I can move the cost stuff, I can move the outage stuff up around, I can have the things that are going on in my account—but who I am means I can shift this around. If I'm a finance manager, cool. I can remove all the stuff that's like, “Hey, you want to get started spinning up an EC2 instance?” “Absolutely not. Do I want to get told, like, how to get certified? Probably not. Do I want to know what the current bill is and whether—and my list of favorites that I've pinned, whatever services there? Yeah, absolutely do.” This is starting to get there.Pete: Yeah, I wonder if it really is a way to start almost hedging on organizations having a wider group of people accessing AWS. I mean, in previous companies, I absolutely gave access to the console for tools like QuickSight, for tools like Athena, for the DataBrew stuff, the Glue DataBrew. Giving, you know, non-technical people access to be able to do these, like, you know, UI ETL tasks, you know, a wider group of a company is getting access into Amazon. So, I think anything that Amazon does to improve that experience for, you know, the non-SREs, like the people who would traditionally log in, like, that is an investment definitely worth making.Corey: “Well, what could non-engineering types possibly be doing in the AWS console?” “I don't know, jackhole, maybe paying the bill? Just a thought here.” It's the, there are people who look at these things from a variety of different places, and you have such sprawl in the AWS world that there are different personas by a landslide. If I'm building Twitter for Pets, you probably don't want to be pitching your mainframe migration services to me the same way that you would if I were a 200-year-old insurance company.Pete: Yeah, exactly. And the number of those products are going to grow, the number of personas are going to grow, and, yeah, they'll have to do something that they want to actually, you know, maintain that experience so that every person can have, kind of, the experience that they want, and not be distracted, you know? “Oh, what's this? Let me go test this out.” And it's like, you know, one-time charge for $10,000 because, like, that's how it's charged. You know, that's not an experience that people like.Corey: No. They really don't. Pete, I want to thank you for spending the time to chat with me again, as is our tradition. I'm hoping we can do it in person this year, when we go at the end of 2022, to re:Invent again. Or that no one goes in person. But this hybrid nonsense is for the birds.Pete: Yeah. I very much would love to get back to another one, and yeah, like, I think there could be an interesting kind of merging here of our annual re:Invent recap slash live brunch, you know, stream you know, hot takes after a long week. [laugh].Corey: Oh, yeah. The real way that you know that it's a good joke is when one of us says something, the other one sprays scrambled eggs out of their nose. Yeah, that's the way to do it.Pete: Exactly. Exactly.Corey: Pete, thank you so much. If people want to learn more about what you're up to—hopefully, you know, come back. We miss you, but you're unaffiliated, you're a startup advisor. Where can people find you to learn more, if they for some unforgivable reason don't know who or what a Pete Cheslock is?Pete: Yeah. I think the easiest place to find me is always on Twitter. I'm just at @petecheslock. My DMs are always open and I'm always down to expand my network and chat with folks.And yeah, right, now, I'm just, as I jokingly say, professionally unaffiliated. I do some startup advisory work and have been largely just kind of—honestly checking out the state of the economy. Like, there's a lot of really interesting companies out there, and some interesting problems to solve. And, you know, trying to spend some of my time learning more about what companies are up to nowadays. So yeah, if you got some interesting problems, you know, you can follow my Twitter or go to LinkedIn if you want some great, you know, business hot takes about, you know, shitposting basically.Corey: Same thing. Pete, thanks so much for joining me, I appreciate it.Pete: Thanks for having me.Corey: Pete Cheslock, startup advisor, professionally unaffiliated, and recurring re:Invent analyst pal of mine. I'm Cloud Economist Corey Quinn and this is Screaming in the Cloud. If you've enjoyed this podcast, please leave a five-star review on your podcast platform of choice, whereas if you've hated this podcast, please leave a five-star review on your podcast platform of choice along with an angry comment calling me a jackass because do I know how long it took you personally to price CloudWatch RUM?Corey: If your AWS bill keeps rising and your blood pressure is doing the same, then you need The Duckbill Group. We help companies fix their AWS bill by making it smaller and less horrifying. The Duckbill Group works for you, not AWS. We tailor recommendations to your business and we get to the point. Visit duckbillgroup.com to get started.Announcer: This has been a HumblePod production. Stay humble.

We want to answer your questions about money. Email us and you may hear yours on the air: askpete@petetheplanner.com This week on the Pete the Planner Show, Pete abandoned the show opening tune and got scolded by Damian! Whew! No time to listen?  Here's a preview of what happened and when: Show Notes: MAILBAG QUESTION #1: [5:05] “Dear Pete, I heard colleagues talking about discretionary spending this week. It got me thinking about how much money I allow myself to spend in any given month. I typically give myself some cushion for dinning out and a random purchase here or there. Beyond that, I tend to keep a pretty low balance in my checking account because I tend to spend more responsibly if I limit the amount of money I have access to. How do you think about discretionary spending? DAMIAN: Discretionary spending is actually planned, you just don't know what you're spending it on yet. DAMIAN: It's quite variable, so don't compare yourself to other families in this category PETE: You're giving yourself an allowance; what you spend it on is what's discretionary. It took an ugly turn when online banking came out. The debit card makes spending all too easy. PETE: You have to find a way that works for you. You don't need to keep boatloads of money in your checking account.   The Dunns cover so much more in the full show! Don't let this little teaser stop you from enjoying the whole thing.   Play the rest of the show for more!  —  click PLAY below.   SIDE NOTE: — Before you go, give your personal finances a facelift. Peep our personal guidance platform: Hey Money. —   The post Ep. 435: Discretionary Spending + Financial News Rundown appeared first on Pete the Planner®.

Brain 'Splain Pete Style Noggins And Neurons Facebook Group EPISODE TITLE: Brain ‘Splain Pete Style DEB: What? PETE: So, I've got a funny story for you...So, my college had a career development day. And they wanted people to do an hour, hour and a half on whatever they wanted to do and people were doing it on how to run a good zoom meeting and how to grab a great power point and a lot of other interesting things and of course I pitched my crazy, ‘how does the brain really learn? and ‘how can we engage students if we look at it from a neuroscience perspective?' And they said ok, we'll give you an hour and a half to do that, so I show up at the college today and I go to the room that I'm supposed....it's in this big convention center....and I go to the room I supposed to be in and, ah, the door's locked. So I called the lady that runs the whole thing and she says, “well, um” I said ‘when will the door be unlocked?' And she said, “well, um, at 9:00 they'll be coming in,” this is by the way at 1:00 in the afternoon or 12:00 in the afternoon. “At 9:00 they'll be coming in and they'll set up everything so you have it ready” And I'm getting this weird vibe from her and I realize I'm there a day early. DEB: Awesome! PETE: And then I said to her, ‘I got a funny story, I'm out in front of the door waiting for somebody to unlock it like an idiot. So, ah, that was fun. But here's the favor I have to ask you...So what I would like to do is, I know we had an agenda tonight but I would like to do my entire talk for tomorrow for an audience of one and that way I get to practice it. DEB: That's a great idea! PETE: You like that idea? DEB: I do... EPISODE SUMMARY: In this episode of NOGGINS & NEURONS: Brain Injury Recovery Simplified, Pete presents valuable information on “The Brain and How it Learns Simplified: Driving Cortical Plasticity.” We talked about: Deb's upcoming road trip and her fast car. The number of CEU talks Pete has done from 2010 to 2020 (700 of them) and this teacher presentation being the first live presentation since March of 2020. Review of Pete's work in research-do you love hearing this stuff as much as I do? Learning defined, the circulatory system defined, the difference between the two and Motor learning, college and motor cognition. It's the original template for all learning. Brain Derived Neurotrophic Factor, exercise, sleep and protein synthesis are essential for learning. The homunculus man, the motor cortex and why hands-on learning is key for learning. Using eating, mating and patterns to keep an audience engaged. The Davinci man, arm span and murmurations of starlings to understand how the brain works Repetition, challenge and meaning are necessary for learning. Celebrate small wins to stay motivated and feel life satisfaction. Hemispherectomy and the ability to be independent-no excuses, action observation, tossing balls in class, repetitive practice and measuring change. Pete practices his presentation and Deb enjoyed being the audience. We hope you find the information valuable too. As always, we want to hear your top takeaways! LINKS TO ARTICLES, BOOKS AND OTHER IMPORTANT INFORMATION: Spark: The Revolutionary New Science of Exercise and the Brain by John Ratey, MD with Eric Hagerman 'I only have half a brain' The homunculus in 3D Questions and Comments about the podcast? NogginsAndNeurons@gmail.com NogginsAndNeurons: The Website Noggins And Neurons Facebook Group Donate to The Noggins And Neurons Podcast with your PayPal app Pete's blog, book, Stronger After Stroke, and talks. Blog Book: Stronger After Stroke, 3rd edition Pete's talk for the American College of Rehabilitation Medicine.   Deb's OT Resources: Deb's OT resources The OT's Guide to Mirror Therapy Tri-Fold Mirror (US address only) Occupational Therapy Intervention: Scavenger Hunt Visual Scanning for Adults REQUEST TO BE A GUEST ON NOGGINS & NEURONS. If you're passionate about stroke recovery and have information or a story you believe will help others, we'd love help you share it on the show. Complete the guest request form below and let's see if we're a good fit!   Guest Request Form Music by scottholmesmusic.com  

As the CEO, you love LEVERAGE!There is no more highly leveraged step in your patient process than THE WORKSHOP!One a patient goes to workshop, every visit gets easier...If a patient does not go to workshop – every subsequent visit gets harder. The purpose of the workshop is to:1. Challenge and shape the attendee's belief system2. Equip them to get BETTER RESULTS FASTER3. Recruit them to the Mission You must create the space and time to make this happen...If you do – you will create long term, happy patients who want chiropractic care.Otherwise, you'll be dragging people along until they quit.Losing patients is off-purpose and bad for business.Listen-in and discover the keys to powerful workshops. What We Covered: 00:37 – Dr. Pete and Dr. Stephen introduce today's topic, Turning Believers Into Understanders at the Better Results Faster Workshop03:15 – Dr. Pete and Dr. Stephen analyze three scenarios they have observed regarding the workshop05:01 – Dr. Pete and Dr. Stephen detail the process of converting believers into understanders by leveraging the workshop06:53 – Dr. Pete and Dr. Stephen take a moment to promote Innate Radiology08:59 – Dr. Pete and Dr. Stephen discuss the paradigm shift that is necessary within the workshop17:15 – Dr. Pete and Dr. Stephen stress the importance of Table Talk22:01 – Dr. Pete and Dr. Stephen talk about the inherent value of the workshop and why it must be important to you and your team26:53 – Dr. Pete and Dr. Stephen take a moment to promote Atlas Digital & The Remarkable Retention Immersion30:43 – Dr. Pete and Dr. Stephen talk about the importance of showing up and sharing your heart and head EPISODE QUOTES “We talk about how the patients have a life of possibility and a life of probability ahead of them. The same is true of practices.” (02:55) (Dr. Pete)“You've heard us say that conversion's emotional and retention's intellectual. People start care based on how they feel. Do they feel heard? Do they feel like they're in the right place? Do they feel you're gonna help them get what they want? That's why people start care. But people stay under care based on what they know.” (04:27) (Dr. Stephen)“Understanders are like helium balloons. You can gather them up and you can carry an infinite number of them. So, we want to take the believer and turn them into an understander. And the workshop is really the pivot point.” (06:24) (Dr. Pete)“We have to understand that we are living in an outside-in world. The paradigm is outside-in. It's an allopathic way of thinking. It just is the way that it is. It's where people are at now. And so, we first have to identify that there is a paradigm.” (10:58) (Dr. Pete)“Workshop drives Table Talk. And if you don't do workshop, Table Talk is hard.” (17:35) (Dr. Stephen)“You have to be so deliberate and so intention. And remember, remarkable does not imply perfect. My workshop was never perfect. So, don't shoulder that burden. This is not about being perfect. This is about you showing up and sharing your heart and your head. It's about showing up and being the person that moves a room.” (30:43) (Dr. Stephen) LINKS MENTIONED Dr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteJoin us for the US Retention Immersion. Register Now!

00:37 – Dr. Pete and Dr. Stephen introduce today's topic, Leading vs. Lagging Metrics02:49 – Dr. Pete and Dr. Stephen provide The Driving Analogy05:38 – Dr. Pete and Dr. Stephen talk about the two numbers that are critical to the success of your practice11:09 – Dr. Pete and Dr. Stephen explain the difference between downstream and upstream metrics14:08 – Dr. Pete and Dr. Stephen discuss what leads to better compliance17:21 – Dr. Pete and Dr. Stephen take a moment to promote Chiro Match Makers and Digital Care 10020:54 – Dr. Pete and Dr. Stephen talk about the importance of looking ahead22:35 – Dr. Pete and Dr. Stephen share vital behaviors that need to be in place to drive compliance24:45 – Dr. Pete and Dr. Stephen discuss leading metrics to be mindful ofEPISODE QUOTES“What matters gets measured. What gets measured is what gets talked about. And what you talk about, you bring about.” (06:51) (Dr. Stephen)“If we can get to eighty-seven, ninety percent Kept Visit Average, if we can do that there are specific things we can do. I think we've identified four or five very specific things that will drive those things happening.” (14:55) (Dr. Pete)“We need to be able to have that ability to look ahead, knowing the things that are driving us looking ahead.” (20:54) (Dr. Pete)“You don't get what you want, you get what you tolerate. Do not tolerate anything less than people abiding by the standards which you operate. We make recommendations for care, we don't make suggestions.” (22:47) (Dr. Pete)“Start with where you are right now.” (29:23) (Dr. Stephen)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteDownload your copy of the First 4 Months PDF here:

What Works II DEB: I wanted to talk about Marijuana PETE: Well. Who doesn't? DEB: Exactly! PETE: You live in New York man, you can do anything you want! Ohio they'll string you up but yeah...so what about pot? DEB: Well first of all I learned that it doesn't cause stroke the way cigarettes do....cigarette smoking...it's really good for treating other effects beyond the spasticity and things like that. It's more like anxiety, anger, sadness, frustration, hopelessness, fear, depression types of feelings which I think is really important because if people are feeling those negative types of emotions then it's harder to participate in your rehabilitation. PETE: I've done some talks in Colorado recently and you know there's often therapists from every different kind of facility and I'm like, hey does anybody here um work in skilled nursing....and yeah, yeah they do... so um, are they allowed to smoke pot, I mean like you know, these are people they're adults... can they smoke pot? They go, yeah, yeah, they can smoke pot. I go, how does that affect rehab? Well they don't want to go. They just say no... DEB: They're too chill? PETE: They say no I'm not going anywhere. That's the downside. EPISODE SUMMARY: In this episode of NOGGINS & NEURONS: Stroke and TBI Recovery Simplified, Pete and Deb talk about interventions that do work. In part II we covered: Subconscious mind and stroke recovery Dysarthria Resistance to new ideas, working through it and moving into acceptance The role of research to help us leave our comfort zones Combining interventions to drive neuroplasticity, create home programs and the importance of the therapist/client relationship Letting go of the old you as a means of evolving and progressing through recovery E-stim, functional e-stim and functional improvements along with how to uncomplicate it so therapists use it more Small group of interventions that work and often work better when combined together Acupuncture, acupressure and dry needling along with muscle vibration in stroke recovery Task specific training, the LEAPS Trial, Modified Constraint Induced Therapy, gait and ambulation Mind-Body interventions and Hippo Therapy can improve balance Brain-Computer Interface to improve UE function following stroke Sensory brain areas are neuroplastic and re-training improves joint position sense, light touch, 2-point discrimination, and better Berg Balance scores Physical activity as a cognitive intervention for stroke recovery Marijuana to reduce neurotoxicity and pain as well as decrease depressive and anxiety symptoms You'll hear more clinical reasoning in action in this second episode of what works as Pete and Deb talk about some commonly used interventions and a few that are less common and what the research says. We talked more about interventions that work well together, creating home programs and novelty in the rehab process. As always, we want to hear your top takeaways! LINKS TO ARTICLES, BOOKS AND OTHER IMPORTANT INFORMATION: Bolognini, N., Russo, C., & Edwards, D. (2017). The Sensory Side of Post-Stroke Rehabilitation   Restorative Neurology and Neuroscience (34) 4. 571-586 doi: 10.3233/RNN-150606 Hsieh, Y., Lin, Y., Zhu, J., Wu, C., Lin, Y., & Chen, C. (2020). Treatment Effects of Upper Limb Action Observation Therapy and Mirror Therapy on Rehabilitation Outcomes After Subacute Stroke: A Pilot Study Behavioural Neurology, vol. 2020, Article ID  6250524, 9 pages, 2020. https://doi.org/10.1155/2020/6250524 Ji, H., & Yu, L. (2020). Effect of Yoga Exercise on Cognitive Ability and Motor Function Recovery in Stroke Patients Behavioral Neurology https://doi.org/10.1155/2020/6250524 Lyu, D., Lyu, X., Zhang, Y., Ren, Y., Yang, F. Zhou, L., Zou, Y. et al (2018). Tai Chi for Stroke Rehabilitation: A Systematic Review and Meta-Analysis of Randomized Controlled Trials Frontiers in Physiology 9; 983 doi: 10.3389/fphys.2018.00983 Zou, L., Yeung, A., Li, C., Chiou, S., Zeng, N., Tzeng, H., Wang, L, et al. (2018) Effects of Mind-Body Movements on Balance Function in Stroke Survivors: A Meta-Analysis of Randomized Controlled Trials International Journal of Environmental Research and Public Health. (15)6. 1292 doi: 10.3390/ijerph15061292 Vibration machine (Italian Site, has image of machine.) The Effects of Virtual Reality Training on Function in Chronic Stroke Patients: A Systematic Review and Meta-Analysis Dysarthria and stroke. The effectiveness of speech rehabilitation. A systematic review and meta-analysis of the studies. Immediate and long-term effects of BCI based rehabilitation of the upper extremity after stroke: a systematic review and meta analysis. Sensory retraining of the leg after stroke: systematic review and meta-analysis Endocannabinoids: A Promising Impact for Traumatic Brain Injury Cannabis & Stroke Risk  Chemicals in Marijuana May Help Stroke Victims Questions and Comments about the podcast: NogginsAndNeurons@gmail.com DONATE TO NOGGINS & NEURONS: Donate to Noggins And Neurons and get an Allstar Pete Trading Card Using your PayPal app:   RESOURCES: Information about Pete's blog and book, “Stronger After Stroke: Your Roadmap to Recovery” 3rd edition:Blog: blogspot.com Book: Stronger After Stroke, 3rd edition Deb's OT Resources: Deb's OT resources The OT's Guide to Mirror Therapy Tri-Fold Mirror (US address only) Occupational Therapy Intervention: Scavenger Hunt Visual Scanning for Adults REQUEST TO BE A GUEST ON NOGGINS & NEURONS. If you're passionate about stroke recovery and have information or a story you believe will help others, we'd love help you share it on the show. Complete the guest request form below and let's see if we're a good fit!   Guest Request Form MUSIC: “Soft Inspiration” by Scott Holmes/Scott Holmes Music/scottholmesmusic.com ✨Google Podcasts  ✨iTunes    ✨Spotify

What Doesn't Work II PETE: Here's one for you...acupuncture may not be helpful for improving  functional ambulation, spasticity and activities of daily living for the lower extremity. Again we're still talking about the lower extremity. Here's one that may not surprise you...Neuro Aid may not be beneficial for improving stroke severity DEB: Huh! That's interesting. It made it in here, into the EBRSR PETE: Yeah. How about this one? Stimulants may not be beneficial for improving motor function. Do you remember when stimulants were all the rage for people with brain injury because it was thought that they would somehow get better if they had...what's the big one again? DEB: Ritalin... PETE: Adderall DEB: oh Adderall yeah... Ritalin's the one that I seem to remember somebody talking about a lot at the hospital PETE: For brain injury recovery? DEB: I think so because it was a stroke center PETE: How about this one...have you ever heard of wholebody vibration? DEB: Yeah! PETE: Yeah? Wholebody vibration may not be beneficial for improving balance, functional ambulation, and muscle strength. How ‘bout them apples? DEB: How ‘bout them apples? PETE: Yeah... DEB: Is that going to come up again in what does work? PETE: That's a good question because I know for acupuncture there are some things where it does work DEB: Yeah...I do too. PETE: You can have that. You can have stuff that doesn't work for one thing but where it works for another. Yeah, absolutely DEB: Maybe we should've done a comparison what does this intervention work for, what doesn't it work for? PETE: That is the third one...so we have what doesn't work, what does work and what's the comparison for things that do work and don't work and when do they work and not work? This is a lot of work! EPISODE SUMMARY: In this episode of NOGGINS & NEURONS: Stroke and TBI Recovery Simplified, Pete and Deb talk about more of What Doesn't Work. We discovered: There's mixed evidence around bilateral training How clinical reasoning works and why it's important in the rehab process The literature is mixed about music therapy, telerehabilitation, arm/shoulder robotics for arm recovery Neuro Aid engages in shady practices and it may not improve spasticity Research supports that recovery does NOT occur from proximal to distal – it is indeed a myth! Yet again the importance of bringing meaning into recovery Acupuncture, Botox, exoskeleton systems, whole body vibration and stimulants may not be effective for lower extremity recovery It's important to look closely at evidence available for treating spatial neglect That hyperbaric oxygen therapy isn't effective for stroke recovery Pete and Deb infuse clinical reasoning and stories into this interesting conversation about stroke and brain injury interventions that don't work. People who have experienced stroke or brain injury are smart. They are also in a vulnerable space and may be susceptible to being taken advantage of. This why all of us, survivors, caregivers and healthcare providers must do our research to ensure they receive high quality interventions that work. As always, we want to hear your top takeaways!  LINKS TO ARTICLES, BOOKS AND OTHER IMPORTANT INFORMATION: Bennet, M., Weibel, S., Wasiak, J., Schnabel, A., French, C., & Kranke, P. (2014). Hyperbaric oxygen therapy for acute ischemic stroke. Cochrane Review Bordoloi, K., & Deka, R. Scientific Reconciliation of the Concepts and Principles of Rood Approach. International Journal of Health Sciences and Research EBRSR Chapter 10: Upper Extremity Motor Interventions Stroke Engine: AOTA & Choosing Wisely Neuroaid: Partial Truth and Petty Theft Stroke and Hyperbaric Oxygen Therapy Stem Cell Treatment Available in China I Stem Cell Treatment Available in China II Questions and Comments about the podcast: NogginsAndNeurons@gmail.com DONATE TO NOGGINS & NEURONS: Donate to Noggins And Neurons and get an Allstar Pete Trading Card Using your PayPal app:   RESOURCES: Pete's blog, book, Stronger After Stroke, and talks. Blog Book: Stronger After Stroke, 3rd edition Pete's talk for the American College of Rehabilitation Medicine. Deb's OT Resources: Deb's OT resources The OT's Guide to Mirror Therapy Tri-Fold Mirror (US address only) Occupational Therapy Intervention: Scavenger Hunt Visual Scanning for Adults REQUEST TO BE A GUEST ON NOGGINS & NEURONS. If you're passionate about stroke recovery and have information or a story you believe will help others, we'd love help you share it on the show. Complete the guest request form below and let's see if we're a good fit!   Guest Request Form MUSIC: “Soft Inspiration” by Scott Holmes/Scott Holmes Music/scottholmesmusic.com ✨Google Podcasts  ✨iTunes    ✨Spotify

00:37 – Dr. Pete and Dr. Stephen introduce a new series and dive into today's topic, Board Meeting Overview09:49 – Dr. Pete and Dr. Stephen take a moment to promote Innate Radiology11:58 – Dr. Pete and Dr. Stephen speak to the importance of having a long-term view of your business as CEO15:20 – Dr. Pete and Dr. Stephen break down the four different types of Board Meetings18:31 – Dr. Pete and Dr. Stephen stress the importance of planning out Board Meetings for the remainder of the year and ensuring everyone on your team is in attendance22:32 – Dr. Pete and Dr. Stephen take a moment to promote Atlas and Perfect Patients 24:18 – Dr. Pete and Dr. Stephen discuss the importance of creating clarity on your vision28:56 – Dr. Pete and Dr. Stephen recommend when to host these Board Meetings33:14 – Dr. Pete and Dr. Stephen talk about the value of preparation and setting aside time to work on your businessEPISODE QUOTES“We want to help you take your business to another level. We know that, for us to grow to the next level, we've got to do things differently.” (01:39) (Dr. Pete)“Board Meetings are about teams. Whether you're a team of two or a team of twenty-two, a Board Meeting is about coming together as a team. It's about meeting together as a team. It's about getting on the same page as a team. It's about slowing down at a very specific moment in the year to assess, to plan, to prepare for what's next.” (07:53) (Dr. Pete)“None of us wants to be busier. We all want to be more productive. This mechanism of the Board Meeting will help you make that happen.” (14:37) (Dr. Stephen)“This is what the vision casting moment is about. It's about you having that moment where you share your heart, you cast that vision. It's so important to make sure everyone is connected.” (18:31) (Dr. Pete)“You should be setting a vision that is the manifestation of the core values of that business. You should be setting that in such a compelling and clear way that it's gonna attract the people that share your core values and buy into that vision story. And you're gonna recruit them to help you manifest it.” (26:20) (Dr. Stephen)“We recommend that, number one, these meetings happen quarterly. And, number two, that the entire team is there. Now, when exactly does this meeting happen? We recommend that you do this right towards the end of the quarter.” (28:56) (Dr. Pete)“These Board Meetings will set the frame for your year. And remember, whoever sets the frame wins the game.” (32:34) (Dr. Stephen)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteLearn more about the Remarkable Vault hereJoin us for the US Conversion Immersion. Register Now!

00:38 – Dr. Pete and Dr. Stephen introduce today's topic, The Money Gap05:04 – Dr. Pete and Dr. Stephen talk about why timing is everything09:27 – Dr. Pete and Dr. Stephen stress the importance of directing your energy and focus effectively11:32 – Dr. Pete and Dr. Stephen provide some ‘no cost' marketing activities13:01 – Dr. Pete and Dr. Stephen delve deep into The Money Gap20:54 – Dr. Pete and Dr. Stephen talk about incrementally building up your marketing budget26:38 – Dr. Pete and Dr. Stephen take a moment to promote Chiro Match Makers and CLA30:08 – Dr. Pete and Dr. Stephen speak to the importance of getting out of the office to grow your practice33:17 – Dr. Pete and Dr. Stephen provide additional no and low cost marketing activities, including digital tactics44:34 – Dr. Pete and Dr. Stephen introduce The Remarkable VaultEPISODE QUOTES“We saw a big resurgence here in 2021 in Q1. And here we are in 2021 Q2 and we know that that now is the time and we're calling this the Roaring 2020s.” (03:44) (Dr. Pete)“I want to talk about two things: where is your energy and where is your focus? We want to talk about that through the lens of your marketing and where you're going to invest the resources of your energy, your focus and your money.” (09:28) (Dr. Pete)“Patient education is one of the most powerful ways to get your marketing going.” (12:06) (Dr. Pete)“You want to be investing approximately ten percent of the revenues that you want to reach by the end of the Quarter every Quarter.” (16:11) (Dr. Stephen)“What I want to say is that over the rest of this year, start to plan your budget incrementally to increase. So, don't go from three to ten. Go from three to four, from four to six, from six to seven, from seven to eight.” (20:54) (Dr. Pete)“The reality is that you are the messenger because marketing is a message.” (31:47) (Dr. Stephen)“This is your lane, this is your time. We talked about networking. It's time to get back out and start shaking hands with other business owners and other leaders in your community.” (40:25) (Dr. Pete)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteLearn more about the Remarkable Vault hereJoin us for the US Conversion Immersion. Register Now!

TranscriptCorey: This episode is sponsored in part byLaunchDarkly. Take a look at what it takes to get your code into production. I’m going to just guess that it’s awful because it’s always awful. No one loves their deployment process. What if launching new features didn’t require you to do a full-on code and possibly infrastructure deploy? What if you could test on a small subset of users and then roll it back immediately if results aren’t what you expect? LaunchDarkly does exactly this. To learn more, visitlaunchdarkly.com and tell them Corey sent you, and watch for the wince.Jesse: Today, on a very special episode of AWS Morning Brief: Fridays From the Field, we say our goodbyes to Pete Cheslock.Amy: Oh, no. Did the ops bus finally get him?Jesse: No. Wait, what? What? No. No, he’s not—Amy: You know, the ops bus, the one that takes out all of the ops people, which is why you need data recovery plans.Jesse: [laugh]. I mean, I have plans for other reasons, but no. No, Pete, Pete’s not dead. He’s just—I mean, he’s dead to me, but he’s just not going to be here anymore.Amy: Only on the inside.Jesse: Welcome to AWS Morning Brief: Fridays From the Field. I’m Jesse DeRose.Amy: I’m Amy Arumbulo Negrette.Pete: I am Pete Cheslock. I’m here for one last, beautiful, glorious time.Jesse: I feel like this is going to be like Breakfast Club but in the data center server room.Pete: Yeah. A little bit. I think so. We will all sit cross-legged on the floor in a circle, share our thoughts and feelings. And maybe some sushi. There were sushi in that movie. And that was, like, really advanced back then in the ’80s.Jesse: Yeah, I like that. So Pete, you want to give us a little bit of background about why you will be moving on from this podcast?Pete: Moving on to a whole new world. Yes. Sadly, I am not dead. The ops bus did not get me, and I was not eaten by my smoker, my meat smoker.Jesse: [laugh]. Although at this point, it’s probably overdue.Pete: You know, the odds of all three of those are pretty high out, to be really perfectly honest, given this pandemic and everything else going on in this world.Amy: Isn’t that how it works? You eventually become the smoked meat.Pete: Yeah, yeah.Jesse: [laugh].Pete: All the time. You know, you are what you eat. And if you eat junk and whatnot—so I eat smoked meats, eventually, I’m just going to become, you know, smoked meats, I guess. But no, I am moving on from The Duckbill Group. Just bittersweet is the best word I can come up with. Very sad, but also very excited.I’m moving on to a new role at a new company that was just kind of an opportunity that I couldn’t pass up. And I’m really excited for something new, but really sad because I don’t get to work with two of my three favorite cloud economists, Jesse, and Amy. Yeah, Corey is one, too, and yes, it’s fun to work with him. But it’s also fun to rag on him a little bit as well.Jesse: I’m pretty sure you still have the opportunity to rag on him no matter where you go.Pete: Yeah, that’s true. I mean, we’re Twitter connected. So, I can just slide into his DMs as needed. Yeah.Amy: And really, what else is Twitter for—Pete: Exactly.Jesse: [laugh].Amy: —than roasting former coworkers and bosses?Pete: Yeah, I expect a constant stream of Twitter DMs every time you find something, some little fun nugget that I’ve left behind.Jesse: I feel like that’s appropriate. So today, Pete, I have two questions for you now that you will be moving on from Duckbill Group, moving on from this podcast, I want to know, looking back at your time here working with Duckbill Group, what did you learn? What are the things that surprised you, that you didn’t expect? And what would you say to somebody who wanted to start working in this space, maybe start a career in cloud economics on their own?Pete: Yeah, so this kind of feels like an exit interview a little bit.Jesse: [laugh]. And a very public exit interview at that. So, make sure that we bleep all the swear words.Pete: I think it’s in Duckbill fashion to do a public—a very public-facing exit interview, right? That is Duckbill in a nutshell.Jesse: I think the only thing more public is if Corey asks you to hold the exit interview on Twitter.Amy: Exactly.Pete: [laugh]. I mean, we might have to do that, now. I like that idea. Yeah, so I think those are great questions, and I love the opportunity to talk about it. Because Duckbill is a fantastic company, and coming into Duckbill last year was totally by luck.Not really—no, not—luck is maybe not the right word. But I had been doing some consulting on my own, and the pandemic and some other forces caused a bunch of my consulting work to dry up really quickly. And I was sitting at home and I’m like, “Wow, I should get a real job.” And I saw a tweet from Mike on Twitter that was like, “Oh, we’re growing The Duckbill Group.” And Mike and Corey and I have known each other for such a long time.We’ve always said it’d be great to work together at some point in the future, but it’s so hard [laugh] to do. You know, to kind of work with your friends, and timing, and circumstance, and schedule, and everything else. And so when I saw that, I was like, wow, like that might be a lot of fun working with that crew. And I’ve got a lot of experience in AWS and I’ve—my title at one of my previous companies was Captain COGS—for Cost Of Goods Sold—because I was so diligent with the Amazon bill. So, it’s kind of one of those things where I felt like I could be useful and helpful to the organization, and talking with Mike and Corey, it just made a ton of sense.And so, it was a lot of fun to come on board. So, but then once you’re kind of in, and you start doing this type of work—and you know, Amy and Jesse, you’ve both experienced this—I think no matter how much knowledge you have of Amazon, very, very quickly, you realize that you actually don’t know as much as you really think you did, right?Jesse: Yeah.Pete: Because it’s so—there’s just so much.Amy: And it changes once every five minutes.Pete: [laugh].Jesse: Oh, yeah.Amy: Literally if you—well, just keep an eye on that changelog, you can watch your day get ruined as time goes on.Jesse: [laugh].Pete: [laugh]. It’s—yeah, it’s a real-time day ruining. And that’s the new. It’s like Amazon Kinesis: It’s all real-time.Jesse: [laugh].Pete: Yeah, it’s so true. And I think the reason behind it is, you know, one of the first things I kind of realized is that when you are working inside of a business and you’re trying to understand, like, an Amazon service, you don’t necessarily go that deep because you’ve got a real job and other stuff to do. And when you’re finally, like—let’s say you’re in Cost Explorer; this is actually my favorite one because learning this took us a while. The documents aren’t very good. But in Cost Explorer, there’s a dropdown box that can show you your charges in different ways: unblended view, blended view, amortized view—if I’m saying that word really incorrectly—net-amortized view, net-unblended view. Like, what do all these mean?Most people just are like, unblended, move on with their lives. But at some point, you kind of need to know and answer that question, and then understand the impact, and all those things, and spending more hours than I care to count trying to correlate the bill and Cost Explorer to look the same. Something that simple, why is that so hard? You know, it’s things like that.Amy: Why is that so hard? I do not understand it. It is exhausting. [laugh].Jesse: It drives me absolutely crazy, and it’s something that in previous roles, you could just say, “Well, this isn’t my responsibility, so I’m not going to worry about it.” But now we’ve got clients who are asking us these questions because it is our responsibility and we do need to worry about it.Pete: Yeah, exactly. So, I think that’s just, kind of, one example. Now, there was a ton that I learned. I mean, just in how discounts might be applied when you look at charges in an account whether if you have an enterprise discount program, or private pricing in some way. I think one of my favorite ones—and this is actually something that catches a lot of people up—is especially in Cost Explorer, there’s kind of two ways that you can view a charge.So, let’s say you’re looking at S3, and you are trying to find your usage by the usage type. Like, I want to compare standard storage to maybe data transfer or something like that. And you go and group by usage type, and they’ll show you, “Hey, for your S3 for this month or day or whatever, you’ll have some spend associated storage and data transfer,” and you’re like, “That’s neat.” And then you say to yourself, “Now, I want to look at it by API.” And maybe you’ll see, wow, there’s a ton of spend associated with GETs or PUTs.And you’ll think that that is actually a request charge. And it’s totally not. It’s like, when you group by API, it’s the API that started the charge, not the charge itself. So, you could have a PUT that started the charge, but the charge itself is actually storage. It’s the little things like that, where you might glance at it in your account and go, “Oh, okay.” But then when you actually need to get down to the per penny on spend and share it with a client, you go even further down the rabbit hole.Jesse: Because why would all of the billing information across different sources be accurate?Amy: And also, why would things be named the same between the bill, and Cost Explorer, and the curve? Having those names be the same, that would just make it too easy, and just streamline the process too much, and be too logical. No, let’s work for it. We have to work for it. It’s a pillar of excellence; we have to work for it.Pete: [laugh]. Exactly. So yeah, I think it’s those types of things that you just start seeing the edge cases. But because of, kind of, the work we do, we keep going. We’re not just, “Oh, wow. Haha, silly Amazon.”But then we keep diving in deeper and deeper to figure out the why. And the reason for that really just comes down to the fact that we’ll need to communicate that in some effective way to the client to get them to understand it. And actually, that kind of leads me to the other thing that I think is probably the most important skill of being a cloud economist, of being in finops, is your ability to write long-form writing, being able to write clear, concise information explaining why the spend is what it is, explaining all of these edge cases, all these interesting parts of cloud cost management, and being able to write that down in such a way that anyone could read it; like a CFO could understand how the charges are happening, just like a head of engineering, who has maybe more impact to the spend.Jesse: Being able to communicate, the differences between different AWS services, between different billing modes, to different audiences is so critical to the work that we do because we’re ultimately going to be working with different people with different backgrounds at every single client that we work with. So, we need to be able to speak the language of different audiences.Amy: And it’s really different, how different C Suites, different departments, their goals are going to be different, too, because they have requirements that they have to fulfill. Finance is very concerned about the literal cost of things, while engineering is—they understand that their architecture comes at a price, and so long as they have the budget for it, they’re cool with it. And you just have to align what those goals are, and have that translate as like, into the document as, “They built it this way for this reason, which was fine at that stage. But as you grow, you need to make sure that it also fulfills these other external expectations.”Corey: Let’s be honest—the past year has been a nightmare for cloud financial management. The pandemic forced us to move workloads to the cloud sooner than anticipated, and we all know what that means—surprises on the cloud bill and headaches for anyone trying to figure out what caused them. The CloudLIVE 2021 virtual conference is your chance to connect with FinOps and cloud financial management practitioners and get a behind-the-scenes look into proven strategies that have helped organizations like yours adapt to the realities of the past year. Hosted by CloudHealth by VMware on May 20th, the CloudLIVE 2021 conference will be 100% virtual and 100% free to attend, so you have no excuses for missing out on this opportunity to connect with the cloud management community. Visit cloudlive.com/corey to learn more and save your virtual seat today. That’s cloud-l-i-v-e.com/corey to register.Pete: Yeah, that’s exactly right. I mean, it’s just—and can you imagine, you have some knowledge you want to share around something as complex as the Amazon bill. I mean we ask for a PDF of your bill when you start working with Duckbill Group. That could be hundreds of pages long, and you’re trying to distill that down into something that, really, anyone can understand. It’s a true superpower to be able to write long-form content like that really well.And I never used to like writing. I was never—never really enjoyed it that much and over the last year, that muscle that you’re working out, now, the ability to write many, many pages around this type of content, just it comes so much more easily. So, I think that’s another big aspect, right? The more you work on it, obviously the easier it gets.Jesse: I don’t know about you, but now that I have focused more on flexing that writing and communication muscle, I’ve noticed it more in both everyone that I work with day-to-day with Duckbill Group and also in my daily life, just watching how people communicate with each other, and how effectively people communicate with each other; it’s both amazing and nerve-wracking all at the same time.Pete: [laugh]. I know. And even—not to say that whenever we sit down to write our reports that we give to our clients, we don’t go through the wave of emotions between the back and forth of, like, “I don’t know what to write,” and then, “Oh, I know of a lot of stuff to write. Let me just get something down.” And then you can’t stop writing. It’s just—it’s this emotional roller coaster that I feel like no matter how many times we need to write a lot of detailed information down, everyone always goes through.Amy: And we really do have a highly collaborative process here, too, where we’re all in the same document, writing, and the person who owns any given report will always have the same stage at the end when all of the sections are filled out, where they go to one of the other people on the team and go, “Every word I put down is absolute garbage. Please help me trim it down, take it out. I don’t even care anymore. Just look at it and tell me that I wrote down words that are in some kind of human language.” [laugh].Jesse: [laugh].Pete: [laugh]. Oh, the plight of the writer. It’s, like, the imposter syndrome that affects the writer. It’s like, “Okay. I wrote a bunch of stuff. I think it’s terrible.” And then you sleep on it, you come back the next day, and you’re like, “Actually, this is pretty good.” [laugh].Amy: I explained concepts. It was fine. I didn’t use a single comma for three pages, but it’s probably fine. [laugh].Jesse: [laugh].Pete: You can take one of mine. Usually, all of my draft documents are commas and M-dashes, just all over the place. Yeah, so I think that’s honestly a big superpower. And I think the last two things that—this is actually something that I’ve looked for in people that I’ve wanted to work with, and people I was hiring, and I see it here as well as these, kind of, two concepts of intellectual curiosity and aptitude to learn, where if you have a base knowledge around Amazon and you have those other attributes—that curiosity and truly enjoying learning—you can accelerate your ability to understand this so incredibly quickly because there’s such a wealth of information out there, and there’s so many documents, there’s so much stuff. It just requires someone who really cares enough to dive in and really want to understand.That’s something that I think we’ve seen here is that the folks who are most successful are just—they want to know why, and they’re not satisfied until they can explain it in a simple way to someone else. That’s the key, right? The attribute of a true expert is someone who can explain something very difficult in a simple way. And I think that’s something that would be critical if you were joining Duckbill, if you were building your own finops or cloud finance team, it is so complex. It’s the intersection of technical architecture and cost, and it touches almost the entire business. So, I think those are some other attributes that I think are just incredibly helpful.Jesse: We’re also usually not entirely satisfied until we’ve either opened a support case with AWS, responded to one of their feedback icons in the AWS documentation—the public AWS documentation—or trolled somebody on Twitter saying, “Shame on you, AWS, for writing documentation that doesn’t make sense.”Amy: It’ll be fine. Someone in your mentions will go, “Did you check the region?” And you would have, and then it’ll still be wrong.Jesse: [laugh].Amy: And it’ll be fine. [laugh]. Eventually, we’ll fix it.Pete: That one—Jesse: Too soon.Pete: —that one still hurts, when we—oh, I’m just like, “Why do the numbers not line up?” And then someone was like—Amy: It's a thing I check for, even if it’s like, “It’s a global resource.” I don’t care. Just tell me. Just tell me it’s fine. [laugh].Pete: “Are you in the right region?” Like—“Dammit, no, I’m not. Oh.” [laugh]. Yeah, that happens to the best of us.Amy: I did, unfortunately, burn so many hours, I think it was last week trying to find out where someone had put their resources. It’s like, “Oh, not us-west-2. It’s us-west-1. Of course.” [laugh].Jesse: So, annoying. Well, I would just like to say, Pete, it has been a joy and a pleasure working with you, it has been a joy and a pleasure complaining about AWS with you, on this podcast, so thank you for your time. That sounded really… really, really standoffish. I didn’t mean it quite as bad as it came off there. [laugh].Pete: Well, you know, I think we need to thank Corey for having a child and thus needing to offload some of his podcast duties over to us, and then the fact that we just never gave him the podcast back, and we just took it over.Jesse: Well, if you’ve got questions that you’d like us to answer, you can go to lastweekinaws.com/QA. And if you’ve enjoyed this podcast, please go to lastweekinaws.com/review and give it a five-star review on your podcast platform of choice, whereas if you hated this podcast, please go to lastweekinaws.com/review, give it a five-star rating on your podcast platform of choice and tell us what qualities you’re looking for when building out your cloud finance team.Pete: Thanks for coming in.Announcer: This has been a HumblePod production. Stay humble.

00:38 – Dr. Pete and Dr. Stephen introduce today's topic, How the Top Chiropractors Build World Class Teams07:08 – Dr. Pete and Dr. Stephen stress the importance of building a remarkable practice through a world class team11:48 – Dr. Pete and Dr. Stephen begin the break down the 25 criteria for team-building success13:20 – Dr. Pete and Dr. Stephen stress the importance of having Accountability and Organizational Charts18:45 – Dr. Pete and Dr. Stephen break down the Baseball Analogy20:21 – Dr. Pete and Dr. Stephen discuss the value of having well-defined roles and descriptions and hiring people that share your core values25:38 – Dr. Pete and Dr. Stephen take a moment to promote Chiro Match Makers and CLA32:13 – Dr. Pete and Dr. Stephen talk about identifying the right role39:24 – Dr. Pete and Dr. Stephen discuss the importance of training49:27 – Dr. Pete and Dr. Stephen finish up by sharing why a practice with a world class team can no longer be about one person (you) EPISODE QUOTES“The market for chiropractic, the marketplace, the need for chiropractic has grown more than ever before. It is absolutely vital that we are building remarkable businesses, that we are firing on all cylinders with these domains.” (07:16) (Dr. Pete)“You cannot have a clear and current Accountability Chart if you don't have a clear and current Org Chart.” (15:24) (Dr. Pete)“It comes down to the ‘Four Rights.' It's getting the right people into the right seats, doing the right work, the right way.” (17:17) (Dr. Stephen)“The first ‘Right' of the ‘Four Rights' to get right is that number one we won't settle for less than A-players. And one of the first criteria to determine if this is an A-player is they share our core values.” (23:26) (Dr. Pete)“Vision stories have seasons and so do teams. I like to think that people are with us for a reason or a season.” (29:12) (Dr. Stephen)“We have a culture, just the same as you, where there's always a more excellent way. And we train to discover that.” (42:19) (Dr. Pete)“We want visibility into our business. We want accountability, because we know that accountability drives productivity.” (47:09) (Dr. Stephen)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessDownload your copy of the Clinicoscopy Team Building Success Score PDF hereChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. Pete

Links:Unconventional Guide to AWS Cost Management:https://www.duckbillgroup.com/resources/unconventional-guide-to-aws-cost-management/ TranscriptCorey: This episode is sponsored in part by LaunchDarkly. Take a look at what it takes to get your code into production. I’m going to just guess that it’s awful because it’s always awful. No one loves their deployment process. What if launching new features didn’t require you to do a full-on code and possibly infrastructure deploy? What if you could test on a small subset of users and then roll it back immediately if results aren’t what you expect? LaunchDarkly does exactly this. To learn more, visit launchdarkly.com and tell them Corey sent you, and watch for the wince.Pete: Hello, and welcome to the AWS Morning Brief: Fridays From the Field. I am Pete Cheslock.Jesse: I’m Jesse DeRose.Pete: We’re back again. And we’re here. We made it, Jesse.Jesse: I was worried. This was a journey. Thank you, everybody, for coming on this journey with us.Pete: It was quite an experience going through the Unconventional Guide to AWS Cost Savings. We’ve made it. I just can’t believe we’re here.Jesse: Yeah.Pete: So, what are we talking about today for the culmination of our magnum opus of cost savings optimizations?Jesse: This is a fun one. And I know I keep saying that this is my favorite about everyone, but I have to admit that this one, this topic today probably is my absolute favorite. This one I get really nerdy over. Today, we’re talking about how to predict your future and make your CFO happy. No—spoiler alert—there are not any crystal balls involved in this one. There’s no stock market conversations.This is talking about how you can use all of the different things that we’ve talked about throughout the course of this Unconventional Guide to really bring it all together into a couple ideas that will help you better understand your cloud costs, and really better understand your business, I think.Pete: Yeah. All of the things we talked about really lead up to this one, which is the clients of ours that are the most mature, who are incredibly optimized in their Amazon usage, are the ones who have adopted a majority of these specific items. They all lead to this last one, that ability to predict your future usage based on something that’s happening internally, or if a salesperson comes to you and says, “Hey, we’re about to close this deal, but I need to discount our service.” People are going to start wanting to know well, what is the cheapest that you could sell your service for and still have a positive gross margin?Jesse: Yeah. So, if you’ve done a lot of the things that we’ve talked about in the last couple episodes—I apologize, I know homework’s not the best for a podcast—but if you’ve had the opportunity to work on some of those things, you should have a ton of valuable insights into your spend. We’re talking about tagging, and showback models in particular, maybe even a chargeback model. But you can ultimately use all of this data to better understand what is your forecasted spend is going to look like with a new potential customer coming onto the platform? Or if you get into the topic that we’re going to talk about today, which is mostly unit economics, you can really understand how much can I discount my service and still make a profit, like Pete mentioned?Pete: Yeah, I mean, imagine there’s a global pandemic that happens, and it causes your usage to spike by 500% within the course of a month. How did your spend change? Do you know where it changed? And did it change in ways that you were expecting it to? Like, my databases grew by a lot, and this other thing didn’t grow by very much.Like, that would be expected. But also another thing that—a question that we actually like to ask a lot of our clients, if your sales just doubled overnight, okay would your spend change? Where are the places that are most expensive to operate your service? And again, this is kind of generic. I’ve worked in a lot of SaaS services, so I always think of sales, but just think of whether you’re using the cloud for a SaaS service that you provide and sell, like, B2C, things like that, or B2B, you still have users.They might be internal users. Well, what if your users doubled overnight? What if half the company was using your internal service and now the whole company is? How does that change your usage?Jesse: And it’s also important to think about not just your AWS usage, but all of the other services that you use that support your overall business model: things like monitoring and observability tools, logging vendors, maybe third-party sim tools. All of these are affecting your overall total infrastructure cost and are all part of this conversation. So, it’s really important to start thinking about those architecture diagrams. Remember, when we said, way, way back at the beginning of this conversation, to overlay costs on top of your architecture diagram, understanding that, understanding what parts of your product or what parts of your architecture are the most expensive will really help you understand what’s going to change?Pete: Yeah, let’s say you’ve got a six-figure bill to Datadog or one of the big log management vendors out there, but inside of that bill, is that all just evenly spread across the whole business? What if your log vendor was—the entire spend was all by one service that some developer left the debug logging enabled for? You know, you’d want a way of understanding that maybe that spend was concentrated in maybe a non-production aspect of your account. Because then again, that wouldn’t grow, right? That wouldn’t affect your growth in your sales the same way as if maybe all of your services were equally sending logs of a certain volume over.So, all of those extra services, they all add up, and we see it more and more, as more of our clients start adopting more than just Amazon services: they might be adopting a Snowflake, they might be adopting third-party services running databases running in other services, or EMR type workloads that are not on EMR, and they’re running on Qubole or things like that. There’s just a lot of these services that more and more people are consuming from that fall outside of just the AWS invoice.Jesse: And this also gets back to not just architecture diagrams, but also tagging and showback models, cost visibility, really understanding where your spend is going. And this is fantastic to understand where your spend is going, but finance is probably going to want something a little bit more than this. It’s not just about how much are we spending, or where are we spending it, and maybe it’s not even a finance question. Maybe this is a sales conversation, assuming that you’re a SaaS company. Maybe this is, as Pete mentioned before, “Hey, we want to understand where can we provide discounts? What services can we ultimately discount to negotiate getting new customers on the platform?”Pete: So, Jesse, we hear a lot of these terms a lot, and I’d love a ‘explain like I am a five-year-old’ version of it, but we hear a chargeback. And we hear showback, and honestly, I’ve never worked at those massive companies where you might implement these things, but can you give us just a real quick—for all the listeners out there, when we say showback, what does that mean? And when we say chargeback, what does that mean?Jesse: So, a showback model essentially takes all of your cloud costs, all of your total infrastructure spend, your AWS spend, all the third-party spend, and it shows every team, every product, every microservice, maybe, depending—or maybe even business unit, depending on how your organization is split up—it shows each one of those units, how much they are actually spending, how much they’re actually using these different cloud vendors. So, this is where tagging comes in super handy because if you’ve tagged all of your taggable resources, and properly attributed all of your cloud costs with tagging and linked accounts, you have a very clear idea of who’s spending what. You know very clearly, maybe 70 to 80% of your total infrastructure spend is related to one particular product because all the cost is attributed to one particular product. And maybe that’s something you didn’t know before. Maybe now you know okay, maybe that product needs to be a little bit more expensive so that we can make sure that we are making money off of it, or profiting off of it, whereas other services can be discounted because they’re not as expensive.Whereas in a chargeback model, you are ultimately not just showing each of these teams, hey, here’s how much you spent on AWS and Datadog usage and all these other vendors every month, you’re actually charging them for that usage. You’re actually pulling their cloud costs from their budget.Pete: Yeah. They might actually have a budget of money. It’s all—if you want to really explain like I’m five, it’d be like, I give my child their—they get $1 for all of the tasks that they do throughout the week, I don’t actually give them the money because I usually have to subtract out their, like, Roblox spend of the week [laugh] and things like that. It’s all virtual, but at the end of the day, you know, we’re kind of virtually giving this business unit some money, and then, kind of, virtually charging them for their services within.Jesse: Yeah. And this is mature. We don’t see a lot of companies doing this. This is hard because you have to take other steps first to get here. And so this is why we harp so much on cost attribution through tagging and through linked accounts.This is why we harp so much on cost visibility and overlaying those cloud costs on your architecture diagrams to understand all of this data to lead to this point, which is understanding, where, how much is my primary product actually costing us? How much is my secondary product actually costing us? Or maybe how much is this business unit costing us in terms of total infrastructure spend?Pete: Yeah, I mean, I can kind of share my history with this at previous companies is that, again, eventually someone in the financial department is going to say, “What was our cost for Amazon?” They specifically will want to know the production cost because that figures into a term called gross margin, which you often hear at SaaS businesses. Gross margin is basically you take all the revenue that came in and you subtract away what it took to support that revenue. And mostly, that is just the Amazon bill and these other vendors, perhaps, and you end up with a percentage. And hopefully, it’s a positive percentage.It means you’re theoretically making money at a gross, I mean, obviously, before you pay salaries and all those other items, but that being kind of beside the point for now, that number, you’re probably going to get asked for. So, you wouldn’t want to give like your straight Amazon bill, like, “Oh, well, we spent $100,000 last month,” because some of that spend was probably in research and development; it was probably in a development account or a QA account. You really just want your product spent. So, at a previous company, the first step we took was break out our spend via production and development, just two criteria. Now, for us because we started with just a handful of accounts—this was before a lot of accounts were more prevalent, before organizations—before it was easy to handle a lot of accounts—we had a Prod and a Dev. Super easy. Look at Prod, look at Dev. There’s the two bills.But then as time went on, we needed to get more granular. We were running some development workloads, testing out new databases at scale in kind of a hidden dark deployed mode, in production. Well, we want to subtract that spend from there. And that requires tagging. I mean, that’s why we really harped on tagging for a couple of episodes because tagging is the only way you’re going to be able to do that.Now, we see more often a lot of our clients do maybe an account per product, or account per business unit. Those are, again, really effective ways to corral your spend to make it really easy to break it out and add it up. It’s really just trying to break it down to the most reasonable spend unit possible that you can then play around with and adjust. Mostly to go back to your CFO when they asked you, “Hey, I need to know this specific answer.” You’ve got it hopefully somewhat available.Jesse: Okay, so this is where we’re going to start talking about unit economics. And hopefully, your eyes will not glaze over. I want to make sure that—this is important, this is really actually beneficial. It’s not just a specific economic thing that you learned back in Econ 101. This is actually going to be useful and beneficial for your organization.So, unit economics describes your product in terms of revenues and costs in relation to a unit KPI—that’s where the ‘unit’ term comes from in ‘unit economics’—that tracks closely with customer demand. So, that’s a really gross definition, I know, and I apologize.Pete: You know, and we can even extend that a little bit further and give some good examples. Like, maybe if you are a website that provides eLearning services, your unit might be the number of daily active users or thousands of daily active users, right, could be a thing. That could be a unit that you’re selling. I actually worked at a SaaS company where we sold a piece of software that would run per server, and we broke our unit down to the servers—the things that we sold—down to that level.Jesse: Yeah, if you are in the airline industry, for example, your unit would probably be every passenger. How many passengers are you able to sell tickets to on every plane? What do those costs look like?Corey: If your mean time to WTF for a security alert is more than a minute, it's time to look at Lacework. Lacework will help you get your security act together for everything from compliance service configurations to container app relationships, all without the need for PhDs in AWS to write the rules. If you're building a secure business on AWS with compliance requirements, you don't really have time to choose between antivirus or firewall companies to help you secure your stack. That's why Lacework is built from the ground up for the Cloud: low effort, high visibility and detection. To learn more, visit lacework.com.Pete: And you don’t need just, like, one unit. Maybe you have one unit for your whole platform like the whole gross production spend breaks down into one specific unit, you could do that. But you could also have units at a per-service level because maybe it’s like you’re processing a lot of documents. I worked for an email archiving company, forever ago, and our unit was the amount of emails that were indexed and archived so we could figure out, we might have one customer who just didn’t generate a lot of emails, but they had tons of users. Well, one of our units was the volume of emails that we were indexing and archiving for that customer, whereas on the flip side, if maybe our spend was driven more by user count, and not document count, maybe that’s what we want our unit to be, is per user.Jesse: Yeah. It’s really important to call out that you might have a single easy-to-define unit; you might have a more complex relationship that’s weighted with a couple different factors of different components of the architecture. But ultimately, your unit KPI and how you break out your costs to support your customers will be unique to your overall business.Pete: Exactly. And this is where you’re only going to find this answer out with a lot of conversations, internally. It could come to you pretty easily, you know, just based on how your business is. But I think for a lot of folks using Amazon, especially if you’re just in a specific business unit inside of a broader business, it could be a little bit more challenging to figure out. But what you’re really trying to do is just figure out, when X changes, our spend changes, and we spend more or we spend less. Try to solve for X. That’s really what you’re trying to do.Jesse: Okay. So, now we’ve covered the unit KPI part of this conversation. Awesome. So, we’re done, Pete, right? We just take our AWS bill and then—Pete: Yeah.Jesse: —divide it by the unit and we’re done.Pete: So, easy. I’ve got my unit. I’ve got my bill. I got an iPhone that can do a calculator. Good to go.Jesse: [laugh]. Good. We’re done. Well, wait. What about if I have multiple AWS accounts? Wait, what if I have multiple different products?Pete: Yeah, that’s… I mean, I kind of calculator. I mean, I might be here all day, but…Jesse: [laugh]. I’ve got a whiteboard. We’ve got some time.Pete: Yeah, we got time. That’s a great point, though. Again, what if you do have things that are just spread all over the place? What if you’ve got two different products, two different services inside the same account? Because of course, you would. That’s a super normal thing. I’m not even saying that sarcastically. That’s a super normal thing.Jesse: Absolutely.Pete: Well, how do you handle this? How do you handle shared services?Jesse: Yeah. I mean I—Pete: We could go on for too long on that one, but these are questions you really want to start asking.Jesse: Yeah. And remember that you’re potentially going to have different unit KPIs for different products, for different business units. That’s fine. That’s expected. But make sure that you are measuring appropriately for each of those.The incoming costs, the incoming revenues, and costs for each of these isn’t going to change. That’s coming from your tagged usage and your linked accounts, but maybe the unit that you’re dividing that spend by is going to change, and that’s fine. This is where a spreadsheet comes in super, super handy. I love my Excel spreadsheets for this. Very, very easy to just bring in all of the bill data across different accounts, and really clearly attribute this spend is for the service, or the spend is for this product, or the spend is for this business unit, and then divide that by the unit that we have in question to get your actual unit KPI, to get your unit economic metric.Pete: Yeah, and this is where the superpower comes in. Once you have this number, now you can better understand and make product-level decisions. Again, whether you’re a SaaS product with a product you’re selling to external customers or building an internal tool, your product is the thing that the internal users consume. Your product decisions can now be driven by this. I mean, I have recollections of conversations with product teams, where they would talk about certain services internally, how they wanted to expand and do all the stuff with it.And I said, “Well, right now that one service represents one-third of our total spend, right? Our gross margin, that is one-third. But we looked at the users, and it’s only being used by one percent.” When you have these big numbers and saying, “Wow, the company spends a third of their money on something one percent of people use,” then maybe that’s not the place we want to be investing product decisions into. Maybe it is, but you don’t know enough to have that conversation unless you have this data.Jesse: Absolutely. I think there’s one other small caveat that we haven’t touched on that I do want to call out, and this comes back to your conversation about tagging. We have noticed that a lot of teams want to tag to a certain extent, and then start building their showback models immediately, which is great that you’ve got investment, you’ve got energy, you really want to get to that showback model, get to that chargeback model, that unit economic model space. But if your usage or cloud usage is not thoroughly tagged and accurately tagged, your resulting data is not going to be accurate either. So, we think about this in terms of a cost margin or a cost error.So, for example, if your production spend or your production usage is only 60% tagged, that means you’ve got 40% error in that data that’s coming in; your cloud spend for production has 40% error margin, which is huge.Pete: Yeah, exactly. Track your untagged spend, as well as your tagged spend. I mean, make sure you have a story for the things that are not tagged. That includes things like data transfer and things that maybe are not as taggable within AWS. That’s an important aspect of this that you’ll want to make sure you’re at least not forgetting about.Even if you can’t tag it, you don’t have a solution for it, make sure it’s in the back of your head that this is maybe not as accurate of a forecast because we’re just taking data transfer and dividing it by product versus actually looking at which product uses the most to transfer.Jesse: Yeah, and this is a tough concept, so don’t feel bad if you listen to this episode, again, don’t feel bad if you go download the Unconventional Guide from the Duckbill Group website—we’ll have the link in the [show notes 00:20:12]—this one is a tough concept because it brings in a lot of other moving parts to ultimately get at this one unifying really, really important idea. This is one that we see a lot of clients and potential clients struggle with. So, if you’re taking some time to understand this concept, you’re not alone.Pete: Exactly. This is the goal of all of the previous work, and this is something that you would measure in just a multi-year commitment in most businesses. And the larger the business is, the longer that work is going to take because it’s hard, there are a lot of moving pieces, and so many things need to be done in advance of all of this. And again, realize you’re not doing this work in a vacuum. There’s things that are moving and shifting as it’s all happening. So, don’t beat yourself up if you’re looking at this and thinking to yourself, “This is just a huge task. I’m never going to get this done.” It’s just not something that’s going to happen overnight.All right, well, hey, if you’ve enjoyed this podcast, if you’ve enjoyed this series, please go to lastweekinaws.com/reviewand give it a five-star rating on your podcast platform of choice, whereas if you hated this podcast, please go to lastweekinaws.com/review give it a five-star rating, but then tell us what’s the next series you want to have if you didn’t like this one.Also, don’t forget, you can give us your feedback and any questions that we’ll be continuing to answer in future episodes lastweekinaws.com/QA. You don’t need to put your name, can be totally anonymous. Give us your question. We’d love to dive into some of those topics.And finally, you can download our Unconventional Guide, the whole PDF of everything we’ve talked about at the Duckbill Group website. We’ll include that link in our [show notes 00:21:51] and you can head over there. Thanks again.Announcer: This has been a HumblePod production. Stay humble.

00:38 – Dr. Pete and Dr. Stephen introduce today's topic, Developing and Keeping the Right Associate – Part 504:21 – Dr. Pete and Dr. Stephen take a moment to promote CLA and LVRG Media06:24 – Dr. Pete and Dr. Stephen express why it is so critical to identify and hire the right associate doctor12:47 – Dr. Pete and Dr. Stephen talk about characteristics of ‘A-players' and the importance of scalability and durability16:31 – Dr. Pete and Dr. Stephen take a moment to promote Chiro Match Makers and Genesis18:34 – Dr. Pete and Dr. Stephen continue to discuss how to identify an ‘A-player'23:14 – Understanding the cost of not hiring the right associate doctor or letting the right associate doctor get awayEPISODE QUOTES“You want to set the relationship up for a graceful and profitable exit – whatever that looks like – for everybody. So we've gotta keep clarity and inspiration in front of the doctor.” (02:11) (Dr. Pete)“You start painting a vision story for them [the associate doctor]. You start painting a picture and you lay that out there in front of them so they can see their own pathway, their own runway to success.” (12:05) (Dr. Stephen)“If we tolerate not having A-players on certain positions of our team, one very sure way to sabotage and undermine the relationship with any doctor is if we allowed for and tolerated people who are not ‘A-players' in other positions in the business.” (13:15) (Dr. Pete)“An A-player, they love clarity. They want to know what a win looks like. They love to be trained and equipped in the behaviors that they're responsible for. And then they love to know what their goals are.” (19:44) (Dr. Stephen)“One of the statements I always say is, ‘Count the cost.' And that's usually a statement that I'll make to somebody before they make a decision.” (23:14) (Dr. Pete)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteGet more information on the REM Associate Program here

00:38 – Dr. Pete and Dr. Stephen introduce today's topic, Finding the Right Associate – Part 205:45 – The football analogy07:55 – The Business Builder vs. the Caregiver13:09 – Dr. Pete and Dr. Stephen break down the other different avatars of chiropractors15:03 – Dr. Pete and Dr. Stephen take a moment to promote Chiro Match Makers19:54 – Dr. Pete and Dr. Stephen share the three-legged stool that must be addressed during the vetting processEPISODE QUOTES“Superstars come in all different shapes and sizes and they play different roles. When you're a superstar you don't necessarily have to be a carbon copy of you, doc. You're not just hiring a mini-me. What we're looking for is a person that's a superstar in their role.” (04:11) (Dr. Stephen)“When you're considering the avatar for who it is that you're looking for, it goes back to your practice model. It goes back to what you're trying to accomplish. It goes back to the type of practice you have now. It goes back to the end in mind.” (06:59) (Dr. Pete)“I want to take good care of people, educate them, change the way they think about their health potential, deliver great healthcare. That's really the caregiver chiropractor.” (12:09) (Dr. Stephen)“If you're a pickup truck, you need things hooked up to your back. You need things loaded into you. If you're not doing that, you're to going to be fulfilling your purpose and you will not be fulfilled.” (17:50) (Dr. Pete)“Three parts to the stool to making sure you do this interview process right – the vetting process – are number one: objective, number two: subjective and number three: historical.” (20:16) (Dr. Pete)“You put the wrong avatar in the wrong model, it's gonna be pain, suffering, failure and expense. It's the lose-lose-lose.” (21:46) (Dr. Stephen)“I'm a chiropractor. I'm a lover and I'm a fixer. I love everyone and I think I can fix anyone, so I'm a terrible interviewer.” (23:28) (Dr. Stephen)LINKS MENTIONEDDr. Stephen's LinkedInDr. Peter's LinkedInThe Remarkable CEO WebsiteDr. Stephen's Book – The Remarkable Practice: The Definitive Guide to Build a Thriving Chiropractic BusinessChiro Match Makers WebsiteSchedule a Brainstorming call with Dr. PeteGet more information on the REM Associate Program here

It’s that time of year as college students start or return to school. They may think they know it all, but really know nothing. How many students does it take to change a lightbulb or turn the heat on? It’s time to grow up in the real world! Today’s guest is Peter Tverdov of Tverdov Housing. Although student rentals are management intensive, Peter actually enjoys dealing with students. It’s prepared him to take on other types of tenants to diversify and grow his business.  You’ll Learn... [02:18] Rutgers University: Becoming a landlord in New Brunswick and loving it. [02:53] Student Housing Side Hustle: Accumulate more and manage them for others. [03:24] Hindsight is 20/20 in 2020: Bad timing to start business and quit day job to grow. [04:41] Decision to deal with students and student housing led to diverse tenant groups. [06:15] Peter’s Portfolio: 65-70% student rentals, 15-20% low-income families, 5-10% middle-class/workforce housing. [08:10] Onboarding Students: Educate and set expectations to limit excuses later on. [11:00] Happy Tenant, Happy Owner: Second largest lead generator is tenant referrals. [12:57] Broken Windows Theory: Dumpy/dilapidated areas attract crime and trouble. [13:45] Tverdov Renovation Consultants: Improve properties to attract better tenants. [14:47] Avoid or Acquired Taste? Riches are in the niches as a student rentals landlord. [16:33] Other Options? Rules/laws for room rentals, individual leases, boarding houses. [20:55] Responsibility: How to be landlords and hold each other accountable. [23:35] What’s next for Tverdov Housing? Track KPIs, achieve goals, and grow doors. Tweetables Landlord Business: Slowly and discreetly acquire more properties, get your hands dirty, and deal with people. “In business, it’s good to diversify.” “Managing student rentals, it really gets you battle-tested for managing other tenants.” “We’re not for everybody. We’re fair, but firm.” Resources Tverdov Housing Tverdov Housing on Instagram DoorGrow on YouTube DoorGrowClub DoorGrowLive Transcript Jason: Welcome, DoorGrow Hackers, to the DoorGrow Show. If you are a property management entrepreneur that wants to add doors, make a difference, increase revenue, help others, impact lives, and you are interested in growing your business and life, and you are open to doing things a bit differently, then you are a DoorGrow Hacker. DoorGrow Hackers love the opportunities, daily variety, unique challenges, and freedom that property management brings. Many in real estate think you’re crazy for doing it, you think they’re crazy for not because you realize that property management is the ultimate high-trust gateway to real estate deals, relationships, and residual income. At DoorGrow, we are on a mission to transform property management businesses and their owners. We want to transform the industry, eliminate the BS, build awareness, change the perception, expand the market, and help the best property management entrepreneurs win. I’m your host, property management growth expert, Jason Hull, the founder and CEO of DoorGrow. Now, let’s get into the show. All right, today's guests, I'm hanging out with Pete. I’m going to see if I can say your last name right, Tverdov. And I'm going to unmute you so you can actually respond to that. Did I say it right? Pete: That was awesome. Pete Tverdov of Tverdov Housing. Pete, before we get into the topic, I want to introduce you, have you introduce yourself a little bit, but we’re going to be talking about student rental properties and the title is The Cash flow and Chaos of managing student rental properties. That sounds kind of fun. Let's get into the cash flow and chaos after we hear a little bit about your background, how did you get into this, and tell everybody who's listening about Pete. Pete: Sure. Happy to be on the show, thanks for having me. I got into it, my wife and I moved back to the Central Jersey area about six years ago and in the process of moving back we were looking to buy a multi-family, live in one unit, and it brought us to New Brunswick, where Rutgers University is. We both went to school there, we both played sports there, became a landlord, and really enjoyed the process of becoming a landlord. As I wanted to try to accumulate more rentals, I had the idea to begin managing for the people as it's something I really enjoyed doing. I enjoyed just getting your hands dirty and dealing with people. I started to do that on the side a little bit in that neighborhood, very slowly, very discreetly, and then little by little, I was just nibbling and getting more people under management because I was doing a pretty good job. About a year ago, it grew into a large enough business where I was at a crossroads with my regular job. I said you know what? I feel pretty good about this. I'm just going to dive in and really try to grow my business. That has been a bit rocky because I did that officially in January. I say rocky because of Coronavirus. The business has been good. It's been fun. I enjoy being an entrepreneur. I enjoy trying to grow the business each day and I'm happy to be here. Jason: Yes. Looking back, hindsight being 20/20, pun intended, so here in 2020, would you have chosen, if knowing that this would all happen to start your business, would you still have done it? Pete: It's such a hard question to answer because I had grown a business enough to that point where there was really no turning back. I just had a breaking point because I was working 24 hours a day. I was working in New York City. So it's just really challenging to try and juggle both really and I couldn't at that point. So was the timing the best? Definitely not. Jason: Okay, so you started getting into doing this yourself. Then you started doing it for others. At what point did you start deciding it would be a good idea to deal with students? I mean, this is your college hometown, right? It's a college town, your wife's college town, there is a college there, and it seems probably pretty obvious that you should be dealing with student housing. Were you already dealing with students with your own rentals? Pete: Yeah, that's exactly right. Every rental we owned was student housing and something I had a lot of familiarity with. For a while, I didn't want to do anything else but student rentals. About a year ago, I started to diversify that and try to pick up other tenant groups to manage, which we have, thank God, because in business it's good to diversify. But for me, anything with investing or my advice to anybody with investing is to go with what you know or the areas you know and then you branch out from there, which is what we did with the business. Again, student rentals are something we're super familiar with, super comfortable with and now we're at the point where we're happy with how much we have in the business and we're actively looking. We don't really even market too heavily to student rental landlords just because we have a sizable amount and because we know what chaos comes with managing them and how management-intensive they could be. As I said, we're trying to diversify the business. In addition to being well-known for student rentals, we want to [...] things as well. Jason: Give listeners a little bit of idea of what your portfolio looks like right now. Pete: Of our business, 65%–70% is student rentals. Another 15%–20% is lower-income families, and then the remainder is middle-class housing, workforce housing, yuppies. What's funny is managing student rentals really gets you battle-tested for managing other tenants because the other tenant groups really are a breeze. Student rentals are very management-intensive because they're 18- to 21-year-olds, so young adults. Most of them know nothing and what's worse is they think they know something which compounds the problem sometimes. I was the same way and maybe you were as well. You don't really know much when you're that age. They don't understand that they're responsible for changing light bulbs or if the heat's not working in the house, maybe it's because no one checked to see if the thermostat was even on. Stuff like that is really low hanging fruit. Jason: Yeah. Like you're saying, before anybody has kids or business or any of that, we're all experts on parenting, business, and how the world should work. I love it when my teenagers tell me how to be a better parent. I love that. That's always a really fun conversation. Everyone's an expert until they do it and then they realize they're like everybody else winging it and trying to figure out what's next. You started with the most difficult type of housing. It sounds like it was more difficult renters and tenants than anything else. It felt like it was just downhill. From there it was easier. Pete: That's right. As I said, it's just a very management-intensive group. What do I mean by that? They never signed a lease before. Some of them have never paid rent before. They've never written a check before or they don't know how to pay rent online. They don't really know what a security deposit is. They don't really know the process of getting it back. I think our business grew because we really tried to help the tenants understand the process and how it works. With students, for example—I would recommend this to anyone managing students—we usually sit down with them for 20–30 minutes and go over the lease with them, go over all the points in the lease, and set expectations upfront. We try to really limit the excuses for a tenant, like I didn't know that. What do you mean? We sat with you in person and went over that. That's one of the things. Some of the management items that I was talking about beat the properties up a little bit more so the repairs are higher and things always just mysteriously break. It was never their fault like something happens and nobody wants to admit it. I got a taste for managing other tenant groups. I realize how intense the students are and it's not a bad business to be in because, for people who own the rentals, the cash flows are higher, but with higher cash flows comes a set of their own problems. Jason: Aren't these things just common in property management in general? Like the advantage of you having a business like this is that you're almost educating these people through the process. That would work well for any new client because even if they've rented multiple places before, you have your way of doing things, they still may not want to follow things, have misinterpreted things, or they may claim they read the lease and understand it. All of these things sound like a really good baseline for how to onboard all of your renters. Pete: What I realized early on with the way I conduct business is we're not for everybody and that's because we believe in holding people accountable. One of the gentlemen who help me out hits me on the head. We're fair but firm. We're very fair. We don't try to nickel and dime people, but we're firm. The lease is the lease or the code is the code and this is what we have to do in order to ensure that the property is running smoothly, to ensure you're happy as a tenant, and to ensure the owner’s happy as a client. As a property manager, you're getting hit from both sides a lot of the time, but that's what I try to do to tenants. Honestly, we try to give as good of an effort as we can to make sure that they have a good experience because what's pretty cool about our business is the second-largest lead generator for us is tenant referrals which is awesome. That's free. That costs nothing. For that to be number two, it tells me we're doing something right, even though it feels like we're not sometimes and I want to continue that. Jason: So tenant referrals, meaning the tenants are referring the owners to your company? Pete: They're referring other tenants to our company. It makes the amount of advertising we have to spend on finding tenants less. Jason: Right. Do you feel like that's a challenge and student housing is finding people to rent the place? Pete: I must say it depends on the demographic. What's unique about Rutgers is it's split between two towns in New Jersey, New Brunswick, which has a population of 55,000 and Piscataway, which (I couldn't tell you) maybe it's 30,000 or 50,000. It's not a small town either, but it’s very old homes, especially in New Brunswick. What a lot of landlords in that area are realizing is people don't want to live in a dump anymore. They're willing to pay a little bit more. The house needs to be nicer. That's what we've done with stuff that we own. Most of the clients we have take a little bit of convincing, but after a while, they trust us to spend some money on their property because it makes it easier to rent. I went out to Rutgers, I majored in Criminal Justice. There's this thing called Broken Windows Theory and for people who don't know that it is, it's what it sounds like. When you have a dilapidated area with a bunch of broken windows, it attracts crime and attracts people looking to get into trouble. When you have that same place and it's all cleaned up, all the windows are fixed, the outsides painted, and the sidewalks are redone, the crime statistically usually has gone away. We took that same theory with housing. So if you have a dump, you're likely going to attract tenants who don't care about the place. They're just going to beat it up even more. If you have a nice place, you usually attract nice tenants, and even with the students being as management-intensive as they are, we've found that to be true. What's interesting is within the property management business—I did this right in the middle of the pandemic—I said screw it. I’m going to start another business. So we created what's called Tverdov Renovation Consultants. We basically do project management for our clients. We tell them, listen, we could help you rehab, bathrooms, kitchens, additions, roof siding, blah-blah-blah. We have a whole portfolio of the work we've done on Instagram. That's been good for the owners because it makes their property easier to rent. They get more rent and make our property worth more. We're happy because we've found a better tenant. The town's happy because we've improved the property and it's really a win and win across the board. It's just a matter of convincing other owners who are stuck in having lipstick on a pig or they don't want to spend a lot of money on properties and now we're at the point where I don't really want clients like that. I want clients who want to have a well-run property. Jason: Got it. Do you feel like tenants are an acquired taste in property management? My perception as other property managers avoid dealing with student housing, with those types of tenants. They feel like they're more difficult to manage unless they feel like in their market they need to. Do you feel like you would maybe in general convince these property managers in some way that there is a benefit or an upside to focusing on a tenant or better student housing? Pete: I think if you know it and you know the area, you could do very well and we have done very well. If you don't know it, it's pretty obvious to people who don't know it. You get beat up because you don't know what you're doing. The challenging part is every school is different across the country. When tenants begin to look when the lease is run and there are a plethora of questions to answer. If I was going to invest in another state, it's a whole different set of rules if you're going to try to be a student rental landlord in that state. For me, the riches are in the niches. Again, that's what I knew and I grew it. Now we're looking at expanding into more residential options. Still single family, two to four families, small apartment buildings. That's our bread and butter. That's all we want to do. We don't do commercial. We don't do HOAs or anything like that. That's what we focus on and that's what we're trying to grow. Jason: Now, the financial upside that I've heard from some people that get into this is some have convinced owners to take a property and to rent it out the room instead of renting out the entire property to a family. They're renting it out by the room in these sorts of situations and they're able to get a lot more rent at the property by doing such. That seems to be that there would be a potential financial upside, especially if your fee structure is based on percentages or each renter rather than being just connected to a flat fee per unit, for example. Pete: Maybe it's a little off-topic. We charge a percentage base and we'll always do that. I really don't know how property managers make money doing a flat fee. I think it's tough so we'll always be a percentage-based company. Renting by the room is, you're correct, that is the way to make more money. Again, I keep saying this phrase, but management-intensive, renting by the room is even tougher for students where we put groups together. We put a bunch together last year. We had a kid from Singapore, a kid from India, a kid from New Jersey, a kid from Pennsylvania and they don't know each other. When you're renting by the room, it's even worse because now you almost have four tenants, not one tenant, or six tenants, or however many people you're putting in a house. That creates its own set of problems. Again, this is based on jurisdiction. You cannot do individual leases because that would be considered a boarding house unless it's a licensed boarding house, you really shouldn't be doing that. We don't do that, so we had to rent by the room. We put them all on one lease. We say, listen, you're all legally responsible for damage in the common areas, and so on and so forth. It's challenging. What's funny, though, is I actually want to try to add a boarding house to manage because we get a lot of people just looking for a room. Just looking for a place to live, not just an apartment or a studio. We get a lot of inquiries like, hey, do you have a room? Jason: Is this boarding house law something that is common in just your state? I haven't heard from this, but it makes sense. Is this in other states as well? Pete: I'm just speaking about New Jersey. Jason: Interesting. It's something to those listening if they haven't dabbled in student housing or they're thinking of renting by the room or something like that, they probably should check with their local laws to make sure whether or not there's any sort of rules against doing such. In New Jersey, what does it take to become a boarding house then or to set one of those up? Is it on an individual property basis or is it a licensing sort of deal as a property manager? Pete: You need to have (they call it) a rooming house or a boarding house, but you need to have a license displayed in the property. I've been in enough of them. It's pretty obvious if it's a boarding house or rooming house because there'll be a kitchen with a bunch of labels on each cabinet. Like, this is John's cabinet, this is Max's cabinet, this is Pete's cabinet, and there's a common bathroom or two. Then all the other doors are just shut with locks on it. If you can imagine, that's what they look like and then they'll have a big license in the hallway or stairwell that'll say this is a New Jersey-licensed rooming house or boarding house. That's how they work. But again, those are challenging. Jason: Do you find in those situations you end up sort of having to play parent between roommates? Pete: Yes and no. We had to do it last year with a group of girls we put together. It was a little aggravating and a lot of girl drama. I stepped in and I spoke with them and tried to give them some words of wisdom. Most of the time, what we do with student rentals, I don't care how many kids are living in the house. It's one tenant and I explain to them you're all jointly responsible for rent and all the lease obligations. So it doesn't matter how many people are in the house. At the end of the day, you guys are all responsible. The other thing is we manage nearly 400 students. Some of these are very nice people, but we can't talk to 400 people. It's just not possible. What we do is we make a house manager or captain, or house mom, dad, whatever you want to call it and that's the person we speak with now regarding any tenant issues. We usually recommend somebody else in the house be responsible for submitting rent. So rent is submitted in one payment. Someone else is responsible for utilities. What it teaches these guys is responsibility, how to be accountable, and hold their roommates accountable. In theory, what's cool is we are actually teaching them how to be landlords because they have to make sure rent is collected. Something's broken, they have to find out who did this. Now, I have to tell Pete or for repairs to be made, coordinate with them to schedule it. That's why I said earlier, we're not for everybody because somebody who needs their hands held or mommy and daddy to wipe their mouth, we're not for you and that's okay. Our system usually winds up attracting tenants who are a bit more mature, a bit more independent and if they're not, they get there by the time that they're done with us. Jason: Right, I like it. You’re part of their educational process of the real world. That might be a good selling point for getting tenants. We'll make your kid actually grow up. I hope you're excited about that. I'm serious. I'd be like, I'm going to send my kids into one of those properties, right? Pete: I might try that. Jason: It's worth a shot. Pete, I think this is really interesting. I'd be interested in those that are doing student housing when you see this posted or see this inside the DoorGrow Club Facebook group at doorgrowclub.com. I'd be interested to see other people's comments on what you're doing, what's working, and what's not working in student housing. This started as a side hustle. It's evolved into a business doing it for other people. It's now growing. What do you feel like is next for you and your business moving forward? Pete: What I start to do from watching podcasts like this is to track our KPIs, which is really cool. I love that side of the business. It's like a quarterly visit if people think of it. It helps me to understand where we should be spending money, what's working, what's not, and tweaking things. Because we're in the growth stage right now, 100 doors is cool, but there are people who are 500, 800. Those are huge, huge companies. We won't get there overnight, I understand that. The goal of my business is we want to cover three counties in New Jersey. So we're based in Central New Jersey. If anybody from New Jersey is listening to this, Central New Jersey really doesn't exist. That's the inside joke. But the three counties we cover probably have about 2.6–3 million people in them. Those are within a 30-minute radius of our office, so we're very comfortable being within a 30-minute radius of home base. The goal is just to continue to add doors under management. Single-family, 2–4 families, small apartment buildings in those areas. There are certain towns that are rental towns and certain towns that are not. What we've been doing on the marketing side, we've been working on SEO, we have our own website, we blog, we're very active on Instagram, then we do mailers, which maybe not a lot of people do. We do some cold calling, too, and just constantly trying to tweak and figure out what's working, what's not, and how we could generate more leads. On top of the property management, because in New Jersey you have to have your real estate license. So right now, me and a few people, my team are realtors. Eventually, I would like to have my own brokerage. Really rural housing is three companies, so it's realty services—we can help you buy and sell investment properties; that's all we do—we could help you manage the property, or we could help you rehab the property. We have some clients where we help them buy the property, we help them rehab the property, and then we manage the property. Then, one day when they want to sell it, we'll sell the property. That's about creating multiple income streams for our business within the same business, which I think is pretty cool. Jason: Makes sense. Cool. Pete, it's been great having you on the show. I wish you success at Tverdov Housing and for those that are listening, if you have questions about student housing or getting this, or if people listening are interested in getting a place from you or whatever your goal is, how can they get a hold of you? Pete: My website is tvdhousing.com and also my Instagram, Tverdov Housing. You could look at the last name on the DoorGrow Show. It's Tverdov Housing. We're constantly posting what we're doing on Instagram, so it's usually properties we're rehabbing, or some crazy management story, about just some crazy stuff that's happened and probably will happen in the future, stuff that we're selling, so we're very active on there. Jason: Cool. All right. Pete, thanks for coming on the show. Pete: Pleasure being on. Jason: All right. Those of you that are interested in getting into student housing or that have been dealing with student housing, I'd be really curious, like I mentioned, to see your feedback inside the DoorGrow Club Facebook group so inside the DoorGrow Club. Let us know what you find is working or not working. It sounds like a challenging thing. I think any of us that have gone to college and remember some of the crazy stuff that either we did or that we saw other people doing, recognize that could be a really challenging thing, but it's necessary. Like their student housing is a need. It'll be interesting to see how things go moving forward with COVID-19 and Coronavirus, and things shifting to online. It will be interesting. Check out the Facebook group, doorgrowclub.com. If you are interested in growing your business and your property management company, making some changes there, if you are feeling stuck, struggling, whatever, reach out to DoorGrow. Check us out at doorgrow.com We'd love to help you out. Until next time. To our mutual growth, Bye everyone. You just listened to the DoorGrow Show. We are building a community of the savviest property management entrepreneurs on the planet, in the DoorGrow Club. Join your fellow DoorGrow Hackers at doorgrowclub.com. Listen, everyone is doing the same stuff. SEO, PPC, pay-per-lead, content, social, direct mail, and they still struggle to grow. At DoorGrow, we solve your biggest challenge getting deals and growing your business. Find out more at doorgrow.com. Find any show notes or links from today’s episode on our blog at doorgrow.com. To get notified of future events and news, subscribe to our newsletter at doorgrow.com/subscribe. Until next time, take what you’ve learned and start DoorGrow hacking your business and your life.

Jeff:Welcome to the VIP Home podcast where we talk about all things homeowners need to know. Today we're speaking with Pete and Megan from Powerhouse, which is a TV show produced with Alliant Energy. Welcome to you both.Caroline:Tell us a little bit about Powerhouse and how it started back in 1996. How did you guys get started?Pete:Well, thank you, Caroline and Jeff. It's great for Megan and myself to be with you guys today to talk about this. We're going to be coming up on 25 years for Powerhouse and Alliant Energy started this back in 1996, because it wanted really to educate its utility customers about the importance of energy conservation and safety, but also to help us save energy dollars. They started the Powerhouse program looking at energy efficiency. It's a 30 minute program that airs in six markets across the Alliant Energy service territory in the upper Midwest on Saturdays and Sundays. Megan and I are very fortunate to be hosting it for the past 24 years.Megan:I have a theater background. Pete is in broadcasting, so we kind of have different background experiences. The cool thing is, is that Pete and I have known each other almost all our lives. We grew up across the street from each other.Caroline:Wow. That is so awesome. No wonder why you guys work so well together.Pete:The number one question we get asked, because again, we know each other so well and play off of each other. They do think we're married. We're married, but not to each other. We're learning and that's the great thing about Powerhouse is that we're sharing the insight that we see in terms of helping customers be comfortable in their homes, be knowledgeable and save dollars and save energy and be more efficient when it comes to energy in the home.Megan:The interesting angle that Alliant has chosen to take it is that Pete and I are kind of speaking for the consumer. We're speaking for the customer. We ask the questions that our audience would want to hear. We don't present as though we know everything. We've learned a lot over the years through this process.Caroline:At VIP HomeLink, our goal is to make the homeowner's lives easier. Although we're homeowners, we don't know everything. That's why [inaudible 00:02:05] wonderful guests like yourselves is so wonderful for us and our bran and to just share knowledge of home ownership with everyone. We like to look into homeowner horror stories, sort of those stories that no one really wants to talk about, but maybe a few years down the road, you get a good laugh out of it or you're frightened to even think of that it might happen again. Do you guys have a story like that, that you could share with us?Pete:One of our first years here at the house that I live in, one of our segments was blowing in insulation up in the attic. Oftentimes, Megan and I, we have the do it yourself projects, and I was helping with our expert to blow in insulation up in my attic. I'm maybe not the most agile or gifted in terms of home projects and I stepped off one of the joists in the attic and put my foot through the ceiling in my house as I was blowing in insulation. I did get the insulation and my attic is much better insulated, but I had to repair the ceiling in one of the bedrooms because I was a goof and slipped off the joists and put my foot through the ceiling.Jeff:You pulled the Chevy Chase from Christmas vacation where he's up there [crosstalk 00:03:10] himself and he just....Pete:Absolutely. Yeah. I did that. That's a bit of my own horror story that I did on one of our shoots.Megan:The crew and I have gotten a lot of mileage out of that through the years. There's a, sometimes they put together a blooper reel and that's kind of fun. Maybe this is just a horror story to me, but they were trying to kind of figure out what the show was going to be and looking back, Pete and I did some things that I can't believe we did. Pete was in the shower for one episode. I was in a hot tub in a bathing suit for one episode.Jeff:Got to get those ratings. I mean, it's [crosstalk 00:03:50].Megan:Oh my gosh. To me, that's a horror story. Then there was another shoot that I remember where they shipped us off to Wisconsin for a catalog shoot. We had all these products that were for sale in helping you be more energy efficient. One section was all about grilling. Well, they do these things so far in advance. I think it was February in Wisconsin and Pete and I are wearing shorts and T-shirts and trying not to breathe so you couldn't see our breath. We were freezing. That was a horror story too.Caroline:I used to intern at a magazine. We did the reverse as well so we were doing Christmas in July and everyone was in [inaudible 00:04:30]. I remember all the models being like, "This is horrible." That is a horror story in my opinion because I [inaudible 00:04:37] serve chilli. No. No. Too much.Jeff:I actually do have a horror story. We bought a condo in Hoboken, fourth floor walkup. I decided, hey, I'm just going to replace the switch. How hard can that be? I watched YouTube videos. I thought I can do this. How hard can electrical work be really watch the video. I did it. I brought my wife in for the big reveal and I turned it on and then you just see like go up the wall and just like burn all the way up. I was like, "Oh my God." Yeah. From that point on, I was not allowed to do any DIY, especially electrical work. We had to do another chandelier in the dining room. I got my very smart, downstairs neighbor who had an engineering degree. He came in and he wired it all. I was just like, "Oh God." Horror stories abound when it comes to electrical work, I can only imagine.Caroline:I feel like that was such a good segue to start talking about how somebody could start their home energy efficiency journey.Pete:We talk about insulation and over the many years of Powerhouse, doing a home energy assessment, we've had professionals that come in and do it. You can also go around your own house and do an assessment. The whole thing about is, is keeping in the wintertime, keeping the warm air in your house and in the summertime, keeping the cool air in your house. Again, not allowing vice versa. Insulation is certainly a great place to start. Attic insulation is a great way to check and make sure you do have enough insulation above you because the warm air rises. If you don't have enough insulation in your attic, that's the first place. We always say, when you do that assessment, start there. Then your walls, making sure that you have enough insulation in the walls, which may be a little bit more difficult.Pete:Again, on Powerhouse, we have a the do it yourself projects, but we also, we'll bring in the experts and the true professionals. We are not the experts. We're sharing the insight and the knowledge. That's the fun part for us. I've learned so much about taking care of our home, being comfortable, energy efficiency. It's the insulation in the walls, making sure that you have enough there even around gaskets, your plugins, making sure that those, it really starts with the insulation in your attic, your walls and in the floors.Jeff:Installation, that sounds like a professional job. What about DIY? Are there simpler things that I can do that are just easy? I run to the hardware store and do myself.Pete:Yeah. You can spend maybe 50 to 75 to a hundred dollars caulking, weatherstripping, going around and checking windows because windows obviously are the biggest source where if you've got gaps in the framing, get a caulking tube and a caulking gun and seal around the windows, weather stripping on the floors. During the wintertime, keep the warm air in from getting outside. Those are very easy things that you can do yourself. We talk about that on Powerhouse. It seems like that's one of those shows every year that we get into, as we get into the winter season.Megan:Led light bulbs. That's newer technology, and those can make such a difference. We always encourage homeowners. It's a little bit more of an investment, but it really pays itself off. What you want to do is you want to take those few lights that you use most frequently, or that are hard to reach, those pain in the neck lights and replace those because they do last much, much longer.Jeff:The technology has gotten a lot better over the past decade I'd say. The one thing about led lights in the beginning was just the look of them. They had this like hospital quality to them, very I'm in an office and it starts flicking of that florescent. Nowadays, I mean, I replaced a lot of our lights, not all of them, but a lot of them with the Phillips hue so it's all smart connected. You can adjust the very, my wife has a very specific setting that she likes the kitchen on and it's called Mrs. White or whatever. It's very customizable and the quality of the light I feel has just completely changed over the years.Pete:The LEDs, the upfront costs are much more than the old incandescent bulbs, but LEDs and the thing that we, Megan and I, have stress on Powerhouse is again, how much longer they last in terms of years for a bulb. We often talk about putting LED bulbs, just start replacing the ones that you have to replace more often that are easy access. As you said, the design has gotten much more friendlier. The lighting's much better. LED bulbs, 95% of the energy goes into the lighting with LED bulbs, which is certainly much different than the old incandescent. Only 5% of a LED is going to energy usage. That's the big thing. It's longer lasting and much, much more energy efficient with LED bulbs.Jeff:We moved into the house and we had all ... all the ceilings were kind of the cheaper ... I don't know if they were LEDs, but they were a certain type of white that, like I said, it was like a hospital flicking on all the lights. I don't know if I'm light sensitive, but it was just like, they had to go. We put them all in a box and gave it back to the builder who redid the house and then made the investment in the smart LED bulbs. Because not only is it customizable, but you can put them on timers, you can reduce your energy consumption that way and make sure at the end of the day, they turn off all the lights and all the lights are off. You don't leave the one in the basement on by accident. I thought that was a really a plus, but downside, they are expensive.Caroline:Do lights on dimmers count, like if you dim your light, does that count as energy efficient? I mean, my fiance definitely has some bulbs that are the LED, but not all, but we have every one on a dimmer.Megan:My guess would be that it would be using less energy.Pete:I would think. The one thing that you do have to make sure that when you buy LEDs, that they do allow for dimming. I mean, you go to your hardware store, you do have to make sure that they are built for dimmers.Caroline:Can we touch a little bit on appliances and energy efficient appliances and how that affects your overall efficiency?Megan:When it comes to your appliances, there are a handful that you really need to maintain well and use appropriately because they use the bulk of your energy. That would be your refrigerator, your dishwasher, and your washer and dryer. Of course, maintenance is important on all three of those things. With your refrigerator, you want to keep the temperature at 40 degrees and the freezer at zero, that's going to be an energy efficient path and still get the job done. Also, I'm going to sound like your mother for a second, but you don't want to leave the doors open. Know what you want out of the refrigerator before you go in there. It takes a lot more energy then to re cool the unit if you stand there with the doors open. Don't forget about the vent and the coils down below the refrigerator. Every year, check that out and clean that out with your vacuum cleaner.Megan:Or if you have a pet, you'll want to do it more than once a year. Check that because that keeps the flow running efficiently. You also don't want to overcrowd your refrigerator. They're designed to basically be full, not jam packed because then the circulation doesn't work. When it comes to the dishwasher, there are a couple of things you can do. You can use the eco settings that are built right into the dishwashers that we buy today and only run it when it's full. Some people are in the habit of doing it every night, whether there are four cups in there or it's loaded and do wait until it's full because you're going to use not only less energy, but you're going to use less water. Another tip is to put it on the air-dry setting. That's going to save you energy too and rinse your dishes off.Megan:Even though the new dishwashers can sense how dirty your dishes are, but do yourself a favor and rinse them off because you're going to get a cleaner wash and it's going to require less energy to do that. To the point that I made about the dishwasher, you also want to take into account when it comes to your washer and dryer. Do full loads. Doing a couple shirts at a time is not going to save you any energy at all. Wait until you have an appropriate load and also use cold water. It'll get your clothes just as clean. Make sure that you clean out not only your lint catch, but also your dryer vent too. That can cause big problems. If you have anyone who is ill in your house, of course, you want to make sure that you put it on this sterilize setting.Pete:In normal times, we talk about washing with cold water, but if you do know that you've got some sick people in your home, in that instance, we do recommend washing with hot water during that time. Megan mentioned cleaning that lint filter in your dryer, but also the duct coming out of it. One of our viewers reached out to us after one of the shows we did and said that he got out his vac and cleaned up the vent coming out of his dryer. It was like a new dryer he said, because it actually dried the clothes much more efficiently. One of the common things that we talk about with your furnaces is changing that filter vent once a month. Most people don't. It's about making sure your furnace is running efficiently and if you've got a dirty filter, it's not going to run efficiently and you're going to use more energy and you're going to use more dollars to run that furnace.Pete:That's one of those things that I always stress. Keep track on your phone, hey it's time the first of the month to change my furnace filter. The other thing that we also recommend is having a service plan. Have your heating and cooling system checked once a year. That's a well worth it 50 to a hundred dollars service call, but to make sure that your furnace, that your air conditioner is running efficiently, again, we'll save over the years, save energy dollars for you and your home.Jeff:It's interesting you say that. VIP HomeLink is an app, and it's basically for people who they have a home, they want to stay on top of these things, but we all know it's easier said than done. You say, "Oh, I'm going to do this." Then life gets in the way. The app is there to actually send you reminders. You put the information in on exactly what your HVAC system is. You can log in your what filter you need, and it'll send you notifications every time you need to change the filter, every time you need it serviced. It'll actually keep you on point there, because like I said, it's one thing to say, "I'm going to do this." It's another thing to actually do it.Megan:A lot of times we tell our viewers, mark a day or think of a day on your calendar and do that monthly. Now, your app sounds luxurious, and I'll certainly look into that, but in a simple way, if you just think the first of the month, I'm going to check my filter.Pete:Probably the one thing that we've done over the years on Powerhouse is if people haven't, it's a programmable thermostat. I know on some of your other podcasts, you've had a smart home, the programmable thermostat. Maybe it's a Nest that you can control off your phone, which is so nice that you can set back at night, turn down that thermostat and save, turn it down 10 degrees. Over a year time and 10 hours, I think you can save something like 10% on your heating bill. There's really savings and again, that's what, here on Powerhouse, we're about. Saving energy, but also helping our customers and our consumers save energy dollars. Megan and I have put in more programmable thermostats over the years. That's another small investment. They can be as simple as maybe a 25 to a $50 investment. Again, you can go up and get Nest and have everything programmed off your iPhone, which is wonderful. That's significant savings in energy and energy dollars.Caroline:I know Ruth is a very smart home tech kind of guy.Jeff:I like the gadgets. When we moved in, that was the first thing I did was let's get the Nest thermostats. Let's get all the security stuff. Let's get all hooked up and you put eco mode on. It kind of just keeps it at a comfortable ... It's not blowing air on you, but Nest will remind me even when to change my HVAC filter, which I didn't know when I bought it. I mean, it's an amazing device.Pete:It really is. Again, I think that's one of the other things here on Powerhouse that Megan and I are very fortunate is to learn about the new technology all around our house. We've done shows on things in terms of reminders with a smart home, to change the filter, to setback your water heater. Some people might be away for a while and they can set back that. It is amazing the technology, the changes that we've seen over the past 24 years of Powerhouse. It all comes back again to helping that homeowner be more comfortable saving energy and saving energy dollars.Megan:Right now it's, we're approaching summer and here in the Midwest, it's really, really hot. That's another thing. If you can program that with your phone, program your air conditioning. You don't have to have it run all day with a programmable thermostat. You can set that to kick in before you get home from work, before you get back from vacation. One of the things that you can do to maintain your air conditioner is to clean it off. We had an episode where I got to do that, and I had no idea that I could do that myself. Of course, I had a professional walk me through it. You just go outside and you have your air conditioner, make sure that it's turned off at the electrical panel.Megan:Then you take your garden hose and you spray it all the debris off the outside and inside the compressor, spray the fins on the inside carefully, starting at the top down so you don't force any debris in there. That's something that you can do that's really, really simple. Another thing is to make sure that you've got airflow around your air conditioning compressor. A lot of people have landscaping and things like that because they want to hide it. Well make sure you keep it trimmed away so you have about a foot, at least a foot around there for circulation.Jeff:I thought I read that it's not a good idea to put a cover on an air conditioner because it can create mold problems or mildew or something like that. Dumb air conditioners, you can go and you can cover it with like an air conditioner cover, which they sell. I assume there's a need and a reason for that, but then I also read you don't want to cover it.Pete:You just got to make sure again, debris and everything's clear. To me that would be the benefit of having it covered, but then you also have to check to see if there's anything that may have crawled up or may have gotten on the fans. Just be aware of that.Jeff:Some resident chipmunks in there.Pete:Sure.Jeff:I did have a dryer vent [inaudible 00:18:54]. I think somebody moved the dryer and it popped out of the wall, but it's so big that we couldn't see behind it. You don't want to scratch the floors and all that. We only knew something was wrong because we'd run the dryer and then it would get really humid and the hallway started fogging up and it turned out that somebody must've moved it and it popped out off the wall. All the wet steam was basically not going where it should. It's just going into the room and we have a small room. That was an issue. We called the professional.Jeff:They came over and charged me four or five hundred bucks to really ... I mean, I was like, "Oh my God, is that really necessary? Can I not do this myself?" He had a whole thing, it goes all the way up to the roof, I guess. He had to put this thing together and clean the whole thing because I guess dryer vents are a big source of fires. There's something like 15,000 fires a year, the NFPA says are caused by dryer vents. It's a real problem. You got to stay up on top of it or else you can put your family at risk.Pete:I think that's a good point. Megan was mentioning cleaning the coils on your refrigerator. I mean, you don't need to do that, but once a year, but again, making sure that that vent is connected properly. That it is again, blowing that hot air and getting it out of your home. Making sure that the vent is clear there and then go on outside where that vent actually vents to the outside, making sure that's clean out there. I just last weekend went and checked mine. I wanted to make sure that I didn't have any issue, but you're right. A dryer vent fires, I hate to say, can be more common than you think, but a little bit of maintenance can help save from a fire. Also, just the overall, again, the efficiency of your dryer operating.Megan:Speaking of vents, I'm going to reverse the season, but if you have a gas fireplace, they vent outside. I know it's important to make sure that they are covered and that when you're not using it, the six months that you're not utilizing it, things can get in there. Animals can get in there. Debris, all of that kind of stuff so in reverse, that's something that you want to make sure that you check out and have a professional look at. Always. We always recommend a seasonal tune up on those appliances, on your air conditioner, as well as your fireplaces and your furnace. That's another vent issue, right?Jeff:I have a gas fireplace. That is definitely now on the top of my list because you know what? I was outside and I was trying to find the dryer vent exhaust, and the guy said it was on the roof. Then there's another vent. I was like, "What is this?" It's the gas fireplace vent. Now I know.Caroline:My parents had a horror story. They were using, I guess their fireplace once. I don't know. [inaudible 00:21:45] not really sure. Then one day there was this squirrel in the bedroom because I guess the fireplace vent wasn't closed all the way. It was just start of fall into winter. There was just a squirrel in the house. If that doesn't count as a horror story, I don't know what does.Jeff:A squirrel in the house counts as a horror story. I've had that in that apartment that I told you about in Hoboken. I had a squirrel. I was home and I walked into one room and my dogs are there and they just start going bananas. I go in the other room and the squirrel had come in the bathroom and walked into the bedroom and the dogs discovered that. It was just going around in a circle, just like on the ceiling. I literally just closed the door and then freaked out. Then I was like, "Okay, I got to do this. I'm not going to trap an animal right now at this point in time." I just opened the window and left. Then I came back like four hours later, just hoping it was gone. Thank God, it was gone, but not after peeing all over my head.Megan:I think I'd rather have a squirrel than bats.Pete:On Powerhouse, again, we've had episodes again, where chimney sweeps, the importance of making sure your chimney is clean and again, having a professional come out and clean your chimney. We've had episodes where they talked about the chimney sweep, talked about different animals that have been found and maybe have been dead there. That also takes me over to cleaning your ducts, your duct work in your house, occasionally is a good thing to do. If you have a lot of pets, it is worthwhile, but again, make sure your duct work is cleaned. It's about efficiency and making sure again, your appliances are operating efficiently. Just like we know with your car, you have an oil change and a checkup with your car. You need to have a checkup of your house system to making sure that it's operating properly and efficiently. Cleaning your ducts, D-U-C-T-S, and making sure that again, that it's functioning efficiently.Caroline:These are amazing tips. We were talking about outside home efficiency so can we just touch a little bit more kind of beyond the AC unit or whatever the real term is for that, and just kind of touch base on some other outdoor efficiencies that would help along your journey?Megan:Well, I think with landscaping, this goes back to the air conditioner, energy.gov says that you can save up to 50% of your energy if you shelter your air conditioner. Shade it with a bush, a tree, of course, distanced. If you think about it, we run more efficiently when we've got a little bit of shade when the heat is pouring down on us. Your air conditioner is no different. Call a professional, make sure that everything is operating smoothly and I will just reiterate what Pete said. The system of your house is designed to be efficient and all your appliances are designed to work well, but we have to do our part and take care of them as well.Pete:Plant that tree to shade your house, your overall house can make a difference. Just a little bit of shade on your house can cool the house so that the sun isn't beating down on it. That's another opportunity. Again, we've done that numerous times on Powerhouse. Come out and plant a tree and again, obviously again, think safety when you're going to plant a tree. Call to make sure you're not digging into a power line. Look up and make sure you're now also not going up into power lines above that might be up there. We always stress safety on any, do it yourself projects on Powerhouse.Caroline:People like Jeff Ruth here might take things into their own hands when they should be calling a pro.Jeff:Felled enough trees in my day that I know to call a pro.Megan:One thing that can make a real difference in your energy usage is how you plug in all of the things around your house. You think about all of the cell phone chargers that we have on the small end, but then we also have our home office. We have all kinds of little appliances, toasters, things like that, that we don't use all the time, but they are always drawing power. We call that phantom power. That phantom energy can really add up, up to 10% of your utility bill. That's huge. I have a prop for you. This is a smart strip. What this has is different plugs here that will remain on if necessary, like say your wifi router. You don't want that to go off. There's a designated place for those items, but for the things, video game systems, things like that, that you don't use all of the time, your DVD player, things like that you can put in here. Then it actually will sense when you're not using it and shut those things off.Caroline:That is an amazing product.Jeff:Yeah. We're going to definitely recommend because I need one. I'm going to find one, we're going to recommend it to the listeners and give some links out there so you can find the right one for you.Pete:With your ceiling fans during the summer, they are pushing the cool air down. You want to make sure it's spinning the right way to push down. In the winter months you want to pull the warmer air up. Remember when you're out of a room, I remind my family to turn off ceiling fans if you're not in the room.Jeff:Is that because money doesn't grow on trees?Caroline:You mentioned the right way. There's clearly a wrong way. Is the right way for cool air counterclockwise or clockwise or [crosstalk 00:27:25]?Pete:Well, again, making sure you can feel it when you turn it on. Is it pushing down? I mean, you can feel it pushing down. Make sure it's spinning that way. I'll let the listeners check themselves, okay?Caroline:Perfect. Perfect. Your website, discusses home energy assessments. What would that entail and how does a homeowner know that they're ready for such an assessment?Megan:On the Alliant Energy website, we offer an energy assessment and you enter all of your specific information in there, and it's really basically a checkup for your home. It offers recommendations of ways that you can improve and it's something that once you make those improvements, you can then watch your utility bill and see how things change after you do that. I would say every five years, you can revisit it too. If you've done any other home improvements, you can plug those in. It just kind of keeps things up to date. It's not unlike your app actually. You can keep all of that in one place as well.Jeff:We have a lot of things in common. I'm definitely excited to check out more about the Alliant Energy assessment. Can you tell us a little more about where to find that and how to, is it for just people in the service area or can anybody go and get tips there?Pete:Most utilities, again, I think around the country are offering that. I would always say to your listeners to check with your utilities for what kind of services they provide in terms of a home energy assessment. I think most energy companies today are trying to be good citizens of our Earth and are looking at ways to make sure your home is energy efficient and offering that. I would say check that. One of the things that we stress on Powerhouse is energy star rated appliances. When you're going out to look for new appliances, make sure they have that energy star on the product.Pete:Maybe you've got that second old sort of a beverage refrigerator or beer refrigerator that maybe is 20 years old, but it sure keeps those beverages cold. That's not always the best use of that old refrigerator because they really burn through energy. A fridge that's about 15, 18 years old, it might be time to look at a new refrigerator because they are so much more energy efficient here today than just 15, 20 years ago. You can save again, a lot of energy dollars that you're paying to keep those beverages cold.Megan:Another service that Alliant energy offers is a refrigerator recycling program. To Pete's point, you want to check with your utility company and see what services they offer, because you might be surprised.Caroline:Thank you for all these tips. I mean, I'm so enlightened. Knowledge is power they say.Megan:People are sheltering in place and their home a lot more. Their utility bills are creeping up because of that. With the use of the home office, kids playing video games, all kinds of things, homeschooling, using your computer more than you might have before. People are cooking a lot more. There are ways that you can use your kitchen a little bit more efficiently, and that is to scale down your appliances, especially as we're approaching summer. Grill outside. It's a common sense thing. Use your crock pot, a slow cooker, toaster oven, they use so much less energy than torquing up your oven.Megan:Also, you can scale down how you use your stove top as well. You want to make sure that you use your cookware appropriately by using the right pan size so you're not wasting energy by extra heat coming up. Also, put lids on things. That's going to speed up your cooking and it's going to use less energy too.Caroline:I know my fiance doesn't quite get the toaster oven versus the oven. I'm really trying to help him out there. It also got so warm that the toaster oven is, it seems a bit quicker, but it also doesn't make the whole place like it is outside.Jeff:I think one of the best wedding gifts that I ever got was the Breville toaster oven. It's like-Caroline:I just said that, for our wedding.Jeff:It's great. I mean, I use it every day.Megan:It's fast, quick, easy. You can watch it happen and it doesn't heat up the kitchen.Pete:Brilliant. Again, appreciate being able to, Caroline and Jeff, to talk with you guys and share tips with your listeners. As we like to say, always as we finish an episode of Powerhouse, with these tips and ideas and saving energy, we can make your house a power house.Megan:A powerhouse. Visit our website, Powerhousetv.com. There are loads of tips on there.Caroline:Thank you so much, Megan and Pete. It was so lovely to have you both. We hope that we can partner again soon. Our missions really align in that we really have a lot in common. We'd love to have you guys back on the show one day.Pete:Thank you.Megan:We would love it. Thank you.Jeff:Thanks guys. Have a good one.Caroline:Have a great day.Megan:Thanks. You too.Jeff:Bye.

Man oooh man did we have a great time with our friends from Out Here Having a Pint. We decided to get together for a few pints at Deviate Brewing.Deviate has some of the most robust beers you'll ever experience. Each glass of their beer takes your taste buds on a unique flavor experience that you simply must try. OR, if you're Pete - You take all 14 taps of that experience and ask that it be poured in to one glass. Deviate from the Norm, right?We also discuss how vaping makes you a badass with friend of the show, Doug.Mike and Greg knew to steer clear of this episode, but thanks just the same for letting us crash your place for a few hours.Cheers!

This week Pete (@mr_van_w) manages to keep his cool over a website published by #hisABC that seems to serve no purpose other than to shame/enrage parents in both the public and private sector of education.  John (@jfcatto) highlights the lack of correlation between college achievement and fame and fortune.    Pete: You decide: Should you send your kids to a public or private school? - Cristen Tilley, Ben Spraggon, Nathan Hoad  http://www.abc.net.au/news/2018-01-31/public-vs-private-school-you-decide/8380980    John: Why valedictorians rarely become rich and famous - and the average millionaire's college GPA was 2.9 - Shana Lebowitz https://amp.businessinsider.com/why-high-school-valedictorians-dont-become-really-successful-2017-5    Visit www.teacherstalkingteaching.com to see more of the podcast.

This week Pete (@mr_van_w) manages to keep his cool over a website published by #hisABC that seems to serve no purpose other than to shame/enrage parents in both the public and private sector of education.  John (@jfcatto) highlights the lack of correlation between college achievement and fame and fortune.    Pete: You decide: Should you send your kids to a public or private school? - Cristen Tilley, Ben Spraggon, Nathan Hoad  http://www.abc.net.au/news/2018-01-31/public-vs-private-school-you-decide/8380980    John: Why valedictorians rarely become rich and famous - and the average millionaire's college GPA was 2.9 - Shana Lebowitz https://amp.businessinsider.com/why-high-school-valedictorians-dont-become-really-successful-2017-5    Visit www.teacherstalkingteaching.com to see more of the podcast.

 If the harsh Minnesota winters get a little too much for you after a while there is always an alternative. Betsy and Pete Wuebker were ordinary 50 somethings living a suburban lifestyle and working the corporate job – in Pete’s case in a stressful marketing position. Deciding they needed to supplement their income with retirement on the horizon they took to online marketing as a means of building a business and soon realized after a period of time that they were doing well enough to throw in their day jobs. With freedom now an option they moved to Hawaii, a place still dear to their heart, but after a trip to the Winter Olympics in Sochi, Russia in 2014 they decided that a life of travel was what they needed most. They’ve been on the road since last year using housesitting as one of their primary means of reducing costs while their online income from various sources keeps them in the manner to which they are accustomed. You can check out their blog at http://passingthru.com What I learned from Betsy and Pete: You’re never too late to start an online business. These guys were into their 50’s before they started to learn how to make money online. From a standing start they’ve built a thriving little business that enables them to live their travel lifestyle on their terms. Have a plan and a vision for your online income. They treat it as a serious business and regularly hold meetings to plan and strategize. Like many others they don’t rely on one income but they do like to bring traffic back through their blog – a central spot where they can build a good following before sending people out to their various income methods. Their secret to picking up housesitting gigs is to build a good rapport with the home owner. They let their seniority work in their favor – showing themselves as the ideal prospects to look after anyone’s home. They have followed Nat and Jodie’s recipe at the Housesitting Academy which has helped them get more housesits than they might have otherwise.

Panel Jaim Zuber (twitter Sharp Five Software) Pete Hodgson (twitter github blog) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Ben Scheirman (twitter github blog NSSreencast) Discussion 01:32 - Model View Controller (MVC) and Model View Presenter (MVP) Ruby on Rails Model View ViewModel (MVVM) MFC Knockout.js 14:20 - Implementing MVC in iOS Apps 16:46 - Designing Models Alistair Cockburn: Hexagonal Architecture Domain-Driven Design: Tackling Complexity in the Heart of Software by Eric Evans Ruby Rogues Episode #78: Hexagonal Rails with Matt Wynne and Kevin Rutherford Ruby Rogues Episode #61: Domain Driven Design (DDD) with David Laribee 28:32 - Models and the Controller Notifications 31:00 - Key-Value Observing (KVO) 35:48 - Delegates and Blocks Picks Mattt Thompson: Key-Value Observing (Pete) Alistair Cockburn: Hexagonal Architecture (Pete) Saul Mora - Design Patterns for Mobile Apps (Pete) New Spring: The Novel (Wheel of Time) by Robert Jordan (Chuck) Freelancing Q&A (Chuck) Next Week OS X Transcript PETE: I can’t believe I beat Ben Scheirman today. CHUCK: With a stick? PETE: No, he’s in the wrong state for that. CHUCK: Hey everybody and welcome to episode 37 of the iPhreaks Show. This week on our panel we have Jaim Zuber. JAIM: Hello from Minneapolis, where it’s a balmy 4°. CHUCK: Pete Hodgson. PETE: You just totally stole my thunder. I was going to complain about being cold in San Francisco, but it’s a lot warmer than that. Hello from not-so-frigid San Francisco. CHUCK: How cold is it in San Francisco? PETE: [Chuckles] Like, 32°. I don’t know, it feels like it’s freezing, but it’s probably not even 32°. Probably warmer than that, just cold for San Francisco. CHUCK: Charles Max Wood from DevChat.tv and it’s also 4° here. PETE: Okay, I’ll stop complaining. JAIM: Really? Or is it just dry cold? CHUCK: Yeah, it’s just dry cold here, too. We did get some snow. JAIM: There we go. PETE: It all makes sense now. JAIM: A little bit nicer. CHUCK: Yeah. Gives you something to do – go shovel snow, go skiing – we’re making people jealous now, I'm sure. PETE: I think I've been here once in San Francisco when it snowed, and it was like two or three flakes on the top of Twin Peaks, which is like the only really tall bit of San Francisco, and people drove their cars up there in the middle of the night to see these snowflakes fall [chuckles]. But it wasn’t like snowball fights; it was like four snowflakes. It was really exciting; it made my year. No skiing that year for us at San Francisco. CHUCK: Oh, come on. Alright. Anyway, so today on our [inaudible] we have MVC. JAIM: Alright, we’re talking MVC – an MVC extravaganza of sorts, I think. CHUCK: Yup. [Chuckles] PETE: Maybe we should start off with a definition. CHUCK: [Chuckles] A definition. Thanks, Josh. JAIM: That might take the entire episode, I think. PETE: With MVC, I always get really confused. So I know what MVC stands for: Model-View-Controller. And I kind of understand the principles quite well. But what I don’t get is the difference between MVC and MVP, and then it gets really confusing when you start talking about some of the other things out there. This is a long shot. Do either of you two know the difference between MVC and MVP? Because I definitely could not answer that if I have to save my life. CHUCK: I have a very vague idea of what it means, so I'm not even going to venture to try because I’ll probably get it wrong. One thing that I can say, though is that I've come to iOS programming from a very strong Rails background, and MVC in Rails and MVC in iOS are not the same. JAIM: Yup. CHUCK: I tend to think of iOS as more of an MVVM, because –. JAIM: I forgot about that one. CHUCK: The controller acts more like a view model or a view controller than it does, you know, a full-on controller.

Panel Jaim Zuber (twitter Sharp Five Software) Pete Hodgson (twitter github blog) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Ben Scheirman (twitter github blog NSSreencast) Discussion 01:32 - Model View Controller (MVC) and Model View Presenter (MVP) Ruby on Rails Model View ViewModel (MVVM) MFC Knockout.js 14:20 - Implementing MVC in iOS Apps 16:46 - Designing Models Alistair Cockburn: Hexagonal Architecture Domain-Driven Design: Tackling Complexity in the Heart of Software by Eric Evans Ruby Rogues Episode #78: Hexagonal Rails with Matt Wynne and Kevin Rutherford Ruby Rogues Episode #61: Domain Driven Design (DDD) with David Laribee 28:32 - Models and the Controller Notifications 31:00 - Key-Value Observing (KVO) 35:48 - Delegates and Blocks Picks Mattt Thompson: Key-Value Observing (Pete) Alistair Cockburn: Hexagonal Architecture (Pete) Saul Mora - Design Patterns for Mobile Apps (Pete) New Spring: The Novel (Wheel of Time) by Robert Jordan (Chuck) Freelancing Q&A (Chuck) Next Week OS X Transcript PETE: I can't believe I beat Ben Scheirman today. CHUCK: With a stick? PETE: No, he's in the wrong state for that. CHUCK: Hey everybody and welcome to episode 37 of the iPhreaks Show. This week on our panel we have Jaim Zuber. JAIM: Hello from Minneapolis, where it's a balmy 4°. CHUCK: Pete Hodgson. PETE: You just totally stole my thunder. I was going to complain about being cold in San Francisco, but it's a lot warmer than that. Hello from not-so-frigid San Francisco. CHUCK: How cold is it in San Francisco? PETE: [Chuckles] Like, 32°. I don't know, it feels like it's freezing, but it's probably not even 32°. Probably warmer than that, just cold for San Francisco. CHUCK: Charles Max Wood from DevChat.tv and it's also 4° here. PETE: Okay, I'll stop complaining. JAIM: Really? Or is it just dry cold? CHUCK: Yeah, it's just dry cold here, too. We did get some snow. JAIM: There we go. PETE: It all makes sense now. JAIM: A little bit nicer. CHUCK: Yeah. Gives you something to do – go shovel snow, go skiing – we're making people jealous now, I'm sure. PETE: I think I've been here once in San Francisco when it snowed, and it was like two or three flakes on the top of Twin Peaks, which is like the only really tall bit of San Francisco, and people drove their cars up there in the middle of the night to see these snowflakes fall [chuckles]. But it wasn't like snowball fights; it was like four snowflakes. It was really exciting; it made my year. No skiing that year for us at San Francisco. CHUCK: Oh, come on. Alright. Anyway, so today on our [inaudible] we have MVC. JAIM: Alright, we're talking MVC – an MVC extravaganza of sorts, I think. CHUCK: Yup. [Chuckles] PETE: Maybe we should start off with a definition. CHUCK: [Chuckles] A definition. Thanks, Josh. JAIM: That might take the entire episode, I think. PETE: With MVC, I always get really confused. So I know what MVC stands for: Model-View-Controller. And I kind of understand the principles quite well. But what I don't get is the difference between MVC and MVP, and then it gets really confusing when you start talking about some of the other things out there. This is a long shot. Do either of you two know the difference between MVC and MVP? Because I definitely could not answer that if I have to save my life. CHUCK: I have a very vague idea of what it means, so I'm not even going to venture to try because I'll probably get it wrong. One thing that I can say, though is that I've come to iOS programming from a very strong Rails background, and MVC in Rails and MVC in iOS are not the same. JAIM: Yup. CHUCK: I tend to think of iOS as more of an MVVM, because –. JAIM: I forgot about that one. CHUCK: The controller acts more like a view model or a view controller than it does, you know, a full-on controller.

Panel Kevin Harwood (twitter github blog) Jaim Zuber (twitter Sharp Five Software) Ben Scheirman (twitter github blog NSSreencast) Andrew Madsen (twitter github blog) Pete Hodgson (twitter github blog) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Discussion 02:44 - Does iOS7’s NSURLSession obviate the need for AFNetworking? 03:20 - SSL Pinning Charles Multiple Certificates 08:09 - Reachability 10:24 - Is AFNetworking 2.0 based of NSURLConnection? AFHTTPRequestOperationManager AFHTTPSessionManager 11:52 - Serialization 12:18 - Session Manager NSURLSessionTask NSURLSessionDataTask 15:59 - Using AFNetworking Upgrading 18:11 - AFNetworking and iOS7 20:46 - Prefetching 22:00 - Contributors 22:37 - The three20 Library Category Methods BlocksKit 30:53 - Managing a Large iOS Open-Source Library Mattt Thompson @mattt Mutual Mobile 34:00 - Submitting a Feature to Mattt Picks Macintosh Software Business (Yahoo Group) (Andrew) Low -- Christmas (Jaim) Awful Recruiters (Ben) backup (Ben) Three Africans Coffee (Ben) The Mute Button in Gmail (Pete) P2 Magazine (Pete) Chasin’ Freshies: a fresh hop IPA from Deschutes (Pete) The Hobbit: The Desolation of Smaug (Chuck) AFHARchiver (Kevin) Bamboo (Kevin) Next Week Streaming with Chris Adamson Transcript PETE: I actually don’t [unintelligible] that much. BEN: But you are British. You have to. PETE: Yeah. I'm a traitor to my nation. I also  don’t watch football that much.  And that’s why I use ‘football’, not ‘soccer’. CHUCK: Hey everybody and welcome to episode 33 of the iPhreaks Show. This week on our panel, we have Jaim Zuber. JAIM: Hello from Minneapolis. CHUCK: Ben Scheirman. Andrew Madsen. ANDREW: Hi from Salt Lake City. CHUCK: Pete Hodgson. PETE: Hello from my pajamas. CHUCK: I'm Charles Max Wood from devchat.tv, with a real quick announcement: if you are interested in learning Ruby on Rails, my Rails Ramp Up course; if you buy it at the beginning of the year… actually, I´ll give you a few days. If you buy it by January 4th, you can get 30% off. You can get that on railsrampup.com We also have a special guess, and that’s Kevin Harwood. KEVIN: Hey guys, from Austin, Texas. CHUCK: Is it snowing in Austin? KEVIN: It’s actually 79 degrees right now. I think the high, it gets up 75 today. So it’s a nice day here in Austin. ANDREW: That sounds nice. JAIM: Not bad. So you are an Auburn guy? KEVIN: I am. It was a pretty good weekend. Me and Tim Cook had a lot to cheer for on Saturday. JAIM: I can sense the glow all the way through the internet. KEVIN: I haven’t stopped grinning since Saturday evening. CHUCK: [Laughs] JAIM: Yeah, that Auburn virus really infected my timeline. Really, the only person on my timeline that was tweeting anything other than football was John Siracusa and he was talking about TVs or something. PETE: I totally tune out whenever time it is that people tweet about this. I think it’s like Sundays or Mondays or something. I get quite annoyed with Twitter and I just stopped using because I don’t know, they are talking about touchdowns and basket hoops or something. I don’t know. It’s all very confusing to me. KEVIN: I'm actually hoping Twitter releases some statistic like they do, like a super bowl halftime show or something and see if we can see an impact from that game and see the usage spike on Twitter. PETE: Someone should do some sentiment analysis on Twitter, where they like to find out… that would be really cool actually to map like… JAIM: Didn’t Apple buy a company that does that? PETE: Really? JAIM: Yeah, for like 200 million. What was it called, Topsy? Isn’t that what they did? KEVIN: Yeah, I think so. PETE: You are telling me I just came up a 200 million dollar idea? [Laughter] I'm not going to tell you guys my other ideas.

Panel Kevin Harwood (twitter github blog) Jaim Zuber (twitter Sharp Five Software) Ben Scheirman (twitter github blog NSSreencast) Andrew Madsen (twitter github blog) Pete Hodgson (twitter github blog) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Discussion 02:44 - Does iOS7's NSURLSession obviate the need for AFNetworking? 03:20 - SSL Pinning Charles Multiple Certificates 08:09 - Reachability 10:24 - Is AFNetworking 2.0 based of NSURLConnection? AFHTTPRequestOperationManager AFHTTPSessionManager 11:52 - Serialization 12:18 - Session Manager NSURLSessionTask NSURLSessionDataTask 15:59 - Using AFNetworking Upgrading 18:11 - AFNetworking and iOS7 20:46 - Prefetching 22:00 - Contributors 22:37 - The three20 Library Category Methods BlocksKit 30:53 - Managing a Large iOS Open-Source Library Mattt Thompson @mattt Mutual Mobile 34:00 - Submitting a Feature to Mattt Picks Macintosh Software Business (Yahoo Group) (Andrew) Low -- Christmas (Jaim) Awful Recruiters (Ben) backup (Ben) Three Africans Coffee (Ben) The Mute Button in Gmail (Pete) P2 Magazine (Pete) Chasin' Freshies: a fresh hop IPA from Deschutes (Pete) The Hobbit: The Desolation of Smaug (Chuck) AFHARchiver (Kevin) Bamboo (Kevin) Next Week Streaming with Chris Adamson Transcript PETE: I actually don't [unintelligible] that much. BEN: But you are British. You have to. PETE: Yeah. I'm a traitor to my nation. I also  don't watch football that much.  And that's why I use ‘football', not ‘soccer'. CHUCK: Hey everybody and welcome to episode 33 of the iPhreaks Show. This week on our panel, we have Jaim Zuber. JAIM: Hello from Minneapolis. CHUCK: Ben Scheirman. Andrew Madsen. ANDREW: Hi from Salt Lake City. CHUCK: Pete Hodgson. PETE: Hello from my pajamas. CHUCK: I'm Charles Max Wood from devchat.tv, with a real quick announcement: if you are interested in learning Ruby on Rails, my Rails Ramp Up course; if you buy it at the beginning of the year… actually, I´ll give you a few days. If you buy it by January 4th, you can get 30% off. You can get that on railsrampup.com We also have a special guess, and that's Kevin Harwood. KEVIN: Hey guys, from Austin, Texas. CHUCK: Is it snowing in Austin? KEVIN: It's actually 79 degrees right now. I think the high, it gets up 75 today. So it's a nice day here in Austin. ANDREW: That sounds nice. JAIM: Not bad. So you are an Auburn guy? KEVIN: I am. It was a pretty good weekend. Me and Tim Cook had a lot to cheer for on Saturday. JAIM: I can sense the glow all the way through the internet. KEVIN: I haven't stopped grinning since Saturday evening. CHUCK: [Laughs] JAIM: Yeah, that Auburn virus really infected my timeline. Really, the only person on my timeline that was tweeting anything other than football was John Siracusa and he was talking about TVs or something. PETE: I totally tune out whenever time it is that people tweet about this. I think it's like Sundays or Mondays or something. I get quite annoyed with Twitter and I just stopped using because I don't know, they are talking about touchdowns and basket hoops or something. I don't know. It's all very confusing to me. KEVIN: I'm actually hoping Twitter releases some statistic like they do, like a super bowl halftime show or something and see if we can see an impact from that game and see the usage spike on Twitter. PETE: Someone should do some sentiment analysis on Twitter, where they like to find out… that would be really cool actually to map like… JAIM: Didn't Apple buy a company that does that? PETE: Really? JAIM: Yeah, for like 200 million. What was it called, Topsy? Isn't that what they did? KEVIN: Yeah, I think so. PETE: You are telling me I just came up a 200 million dollar idea? [Laughter] I'm not going to tell you guys my other ideas.

Panel Cesare Rocchi (twitter Studio Magnolia) Pete Hodgson (twitter github blog) Ben Scheirman (twitter github blog NSSreencast) Andrew Madsen (twitter github blog) Jaim Zuber (twitter Sharp Five Software) Rod Schmidt (twitter github infiniteNIL) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Discussion 01:31 - Cesare Rocchi Introduction CocoaConf Boston iCloud for Developers: Automatically Sync Your iOS Data, Everywhere, All the Time by Cesare Rocchi 03:53 - Auto Layout Cocoa Auto Layout Guide 04:45 - Resolutions Spring and Struts Localization Right-Left Languages 09:15 - Using vs Not Using Auto Layout Constraints Using Interface Builder 22:40 - Auto Layout & Animation Esoteric Animations 26:53 - ASCII Art 29:46 - Intrinsic Size 33:07 - Apple saying you should have used Auto Layout last year 36:22 - Open Source Tools that give Auto Layout-type Capabilities Wrappers  Picks Online 3D Model Converter (Ben) Saint Arnold Icon Gold (Bière De Saison) - Saint Arnold Brewing Company (Ben) NoFlo (Rod) Cocoa Slopes (Rod) Dev Juice: Using your tech support incidents (Andrew) objc.io (Andrew) The Choosatron (Jaim) The Replacements (Jaim) Reveal (Pete) Bitter American (Pete) Teensy 3.0 (Pete) The Best Map Ever Made of America's Racial Segregation (Chuck) Kindle (Chuck) Kindle for Mac (Chuck) Clean Office (Chuck) FrameAccessor (Cesare) App.net (Cesare) Appsterdam (Cesare) Wasatch Brewery: Polygamy Porter (Rod) Next Week iOS Development with Vim with Jason Felice Transcript CESARE: By the way, I have a whole set of pictures of Starbucks bartenders trying to spell correctly my name and write it on the cup. [Laughter] CHUCK: Hey everybody and welcome to Episode 19 of The iPhreaks Show! This week on our panel, we have Pete Hodgson. PETE: Insert amusing British culture reference here! CHUCK: Ben Scheirman. BEN: Hello from H-Town! CHUCK: Andrew Madsen. ANDREW: Hi from Salt Lake City. CHUCK: Jaim Zuber. JAIM: Hello from Houston! I'm not actually in Houston, but it feels like I'm in Houston. [Laughter] JAIM: It's like 95 degrees out here in Minnesota. I could like call a van that's full of ice cream or something, I don't know. CHUCK: [Laughs] BEN: Yeah! It's only 87 right now, so you're actually hotter than us. JAIM: I think we switched. CHUCK: And humid? JAIM: Humid? Not super humid, but yeah, pretty bad. CHUCK: We also have Rod Schmidt. ROD: Hello from Salt Lake City! CHUCK: I'm Charles Max Wood from DevChat.tv. We have a special guest this way, and that's Cesare Rocchi or Rocci. CESARE: Rocci. Rocci. Right. CHUCK: Rocci. Yeah, I knew that! PETE: You almost did it! CHUCK: I almost did it, yeah. I'm famous I guess for botching people's last names, but I speak Italian and I read Italian, and Italian's read like it's written. Anyway, Cesare, since you're new to the show, do you want to introduce yourself really quickly? CESARE: Yes! I'm Cesare. Hello from my office, which is in Italy on East Coast in Rimini, to be exact. I'm a iOS developer, I got started in 2007, and yes, that's before the SDK, the official SDK was released. I did a bunch of client work. Now, I'm focusing on my applications. I speak at conferences; I'll be at CocoaConf in Boston at the end of October. I write books; my latest book is “iCloud for Developers” published by The PragProg. That's all. There's more, but that's all at the moment. CHUCK: [Laughs] BEN: Is your book like a coping mechanism for iCloud? [Laughter] CESARE: Yeah, kind of. And yes, there is a chapter about Core Data and iCloud. And it's not anti-pages. CHUCK: [Laughs] BEN: It's not like, this page intentionally left link? CESARE: No! BEN: [Laughs] CESARE: Though I thought of that [laughs]. CHUCK: It looks and feels like a big band aid for your pain that you have.

Panel Cesare Rocchi (twitter Studio Magnolia) Pete Hodgson (twitter github blog) Ben Scheirman (twitter github blog NSSreencast) Andrew Madsen (twitter github blog) Jaim Zuber (twitter Sharp Five Software) Rod Schmidt (twitter github infiniteNIL) Charles Max Wood (twitter github Teach Me To Code Rails Ramp Up) Discussion 01:31 - Cesare Rocchi Introduction CocoaConf Boston iCloud for Developers: Automatically Sync Your iOS Data, Everywhere, All the Time by Cesare Rocchi 03:53 - Auto Layout Cocoa Auto Layout Guide 04:45 - Resolutions Spring and Struts Localization Right-Left Languages 09:15 - Using vs Not Using Auto Layout Constraints Using Interface Builder 22:40 - Auto Layout & Animation Esoteric Animations 26:53 - ASCII Art 29:46 - Intrinsic Size 33:07 - Apple saying you should have used Auto Layout last year 36:22 - Open Source Tools that give Auto Layout-type Capabilities Wrappers  Picks Online 3D Model Converter (Ben) Saint Arnold Icon Gold (Bière De Saison) - Saint Arnold Brewing Company (Ben) NoFlo (Rod) Cocoa Slopes (Rod) Dev Juice: Using your tech support incidents (Andrew) objc.io (Andrew) The Choosatron (Jaim) The Replacements (Jaim) Reveal (Pete) Bitter American (Pete) Teensy 3.0 (Pete) The Best Map Ever Made of America’s Racial Segregation (Chuck) Kindle (Chuck) Kindle for Mac (Chuck) Clean Office (Chuck) FrameAccessor (Cesare) App.net (Cesare) Appsterdam (Cesare) Wasatch Brewery: Polygamy Porter (Rod) Next Week iOS Development with Vim with Jason Felice Transcript CESARE: By the way, I have a whole set of pictures of Starbucks bartenders trying to spell correctly my name and write it on the cup. [Laughter] CHUCK: Hey everybody and welcome to Episode 19 of The iPhreaks Show! This week on our panel, we have Pete Hodgson. PETE: Insert amusing British culture reference here! CHUCK: Ben Scheirman. BEN: Hello from H-Town! CHUCK: Andrew Madsen. ANDREW: Hi from Salt Lake City. CHUCK: Jaim Zuber. JAIM: Hello from Houston! I’m not actually in Houston, but it feels like I’m in Houston. [Laughter] JAIM: It’s like 95 degrees out here in Minnesota. I could like call a van that’s full of ice cream or something, I don’t know. CHUCK: [Laughs] BEN: Yeah! It’s only 87 right now, so you’re actually hotter than us. JAIM: I think we switched. CHUCK: And humid? JAIM: Humid? Not super humid, but yeah, pretty bad. CHUCK: We also have Rod Schmidt. ROD: Hello from Salt Lake City! CHUCK: I’m Charles Max Wood from DevChat.tv. We have a special guest this way, and that’s Cesare Rocchi or Rocci. CESARE: Rocci. Rocci. Right. CHUCK: Rocci. Yeah, I knew that! PETE: You almost did it! CHUCK: I almost did it, yeah. I’m famous I guess for botching people’s last names, but I speak Italian and I read Italian, and Italian’s read like it’s written. Anyway, Cesare, since you’re new to the show, do you want to introduce yourself really quickly? CESARE: Yes! I’m Cesare. Hello from my office, which is in Italy on East Coast in Rimini, to be exact. I’m a iOS developer, I got started in 2007, and yes, that’s before the SDK, the official SDK was released. I did a bunch of client work. Now, I’m focusing on my applications. I speak at conferences; I’ll be at CocoaConf in Boston at the end of October. I write books; my latest book is “iCloud for Developers” published by The PragProg. That’s all. There’s more, but that’s all at the moment. CHUCK: [Laughs] BEN: Is your book like a coping mechanism for iCloud? [Laughter] CESARE: Yeah, kind of. And yes, there is a chapter about Core Data and iCloud. And it’s not anti-pages. CHUCK: [Laughs] BEN: It’s not like, this page intentionally left link? CESARE: No! BEN: [Laughs] CESARE: Though I thought of that [laughs]. CHUCK: It looks and feels like a big band aid for your pain that you have.