How I Made $89K From 7 Apartments Without Buying Them with Vince Villani

gabe-387

Join our community of RE investors on Skool here: https://tr.ee/JoinTheClub  TIMESTAMPS: 0:00 - Episode Introduction & Guest Welcome 3:15 - Vincent's Journey From Corporate to Real Estate Nightmare 8:45 - Discovering Airbnb Arbitrage After Traditional Investing Failed 12:30 - The Burger King Strategy for Finding Profitable Markets 18:20 - Negotiating with Landlords & Legal Protection Strategies 25:15 - Complete Property Setup & Automation System Breakdown 32:25 - Quick Question Round & Education Recommendations 36:45 - Best Markets for Airbnb Arbitrage in 2025 39:00 - Lessons Learned From Deal Gone Wrong 42:15 - $89K Success Story & Team Building Advice  🔥 DISCOVER THE AIRBNB ARBITRAGE SECRET THAT GENERATED $89K FROM 7 APARTMENTS 🔥 In this game-changing episode of The Real Estate Investing Club podcast, host Gabe Petersen interviews Vincent Villani from Airpreneur, who reveals exactly how he went from a corporate nightmare to building a $1.4 million revenue short-term rental empire without buying a single property! 💰 Vincent shares his proven Airbnb arbitrage strategies that allow anyone to start generating $5,000-$10,000 monthly cash flow with minimal upfront capital.  FROM CORPORATE SLAVE TO REAL ESTATE MILLIONAIRE 📈 Vincent takes us through his incredible transformation from a frustrated W2 employee to building a portfolio of 38 short-term rental units generating over $1.4 million in annual revenue. After his first traditional rental property turned into a complete disaster with rodent infestations, roach problems, and mold outbreaks that ate up all his profits, Vincent discovered the power of Airbnb arbitrage and never looked back. His story proves that you don't need to own real estate to build massive wealth in the real estate industry.  THE COMPLETE AIRBNB ARBITRAGE BLUEPRINT REVEALED 🏠 Learn Vincent's proven "Burger King Strategy" for identifying profitable markets and properties that consistently generate $1,000-$3,000 monthly cash flow per unit. He breaks down his exact process for finding landlords who are eager to work with arbitrage operators, including how to structure contracts, handle liability protection through Airbnb's $1-2 million coverage, and automate 80-90% of daily operations using virtual assistants, cleaning automation through Turno, and dynamic pricing software like PriceLabs. STARTUP COSTS AND SCALING STRATEGIES 💡  Discover why Airbnb arbitrage requires significantly less capital than traditional real estate investing, with most deals requiring only $5,000-$10,000 to get started. Vincent explains how to leverage 0% interest business credit cards to finance furniture and setup costs, achieve 100% cash-on-cash returns, and scale to multiple properties quickly. He also reveals his advanced apartment complex arbitrage strategy that generated $89,000 profit from just 7 units in their first year.  Join our community of RE investors on Skool here: https://tr.ee/JoinTheClub

Transcript

00:00all right we are back with another episode of the real estate investing club i hope you guys are

00:11having a great day whatever day it is for you and wherever you are as always it's friday on the

00:16podcast so we're bringing that friday energy to you uh this is going to be a cool episode we're

00:21going into the short-term rental space so all you guys out there who are interested in short-term

00:25rentals airbnbs vrbo's everything in that space this is for you uh we got vincent villani with us

00:32on the show from airpreneur he uh obviously a expert on the short-term space and so that's

00:39what we're diving into vincent thanks for having on the show yeah 100 gabe thanks uh thanks so much

00:45for having me on i love listening to the show um honestly what you're doing you're building here

00:49something it's pretty special and i know the kind of work that goes into like trying to find all these

00:54guests find good stories so i'm excited to be part of it today anyone who's tuning in just do me a

00:59quick favor leave a five-star review for gabe so he can keep bringing conversations like this to more

01:04people i already left mine so come join me cool awesome man well i appreciate that um let's get

01:10it started we always like starting with stories uh and i'm sure you got a good one so why don't you

01:14go back to the beginning of your story before you knew real estate and just tell us how you got started

01:19and then how you got here yeah yeah yeah yeah so uh i gabe you know how like a lot of nine to five

01:26professionals like people that get into the w2 world they you know get the itch to like want to

01:32create like a scalable passive income stream so they can like quit their job you know control their

01:36time reinvest in real estate but then they like hit walls trying to figure out how to do that without

01:42like spending your life savings or creating like actually enough cash flow to where it actually impacts

01:47their lifestyle you know what i'm talking about yeah so um usually they try to buy like their first

01:52investment property and might even make it to their second or third but then they just can't seem to

01:55get enough cash flow to like 200 cash flow on a door and it's just like how do i scale this

02:00yeah exactly it's like it's not enough to impact their lifestyle right without saving another 50 to 100

02:06k so um what i do is i help people launch profitable airbnbs fast without having to buy real estate using

02:11arbitrage and co-hosting so they can finally make five to ten k a month on autopilot and buy back their time

02:16right but that's not where it all started for me as a matter of fact uh going back a few years gabe um

02:22i was working in corporate and um i think like many of the other guests that you've had on here it was

02:28like i saw i i made a decent amount of money in corporate i was relatively successful among my peers

02:34in corporate and i was just like is this it right and um then i got the itch to get into real estate

02:39because i thought it was the answer and i listened to bigger pockets i was a huge fan of that um

02:45you know before i knew you existed of course right and uh i you know i thought i had this epiphany

02:50that like hey if i buy an investment property all my problems will be solved and i'll be well on my way

02:55to being financially free so i scrounged together in my mid-20s every dollar in my savings it was like

03:0160k to my name right and um i buy this duplex and i buy the duplex and i think you already know

03:08where this is going uh what ends up happening is property turned out to be a nightmare um i had

03:14every problem uh you can think of under the sun i had like that was like my first deal

03:18yeah dude it it's um it was it genuinely was was just uh it was a property from hell i like to say

03:25but everything under the sun that you think of could have happened to happen like i had a

03:29rodent infestation in the house with my tenants i had a roach infestation in the house with my

03:32tenants i had tenants that didn't keep the property clean clearly had a mold outbreak massive

03:37kitchen renovation to try to remediate that all this stuff and then at the end of the day

03:41yes it's cash flowing four or five hundred dollars a month on paper but guess where all that money went

03:47like it just it just went back into fixing all of the things that i just mentioned and then some

03:51so five six seven years later down the line i'm still net zero on the property and uh ironically uh

03:58it's now being sold you know in a couple of days which is a relief point is i was like what else can i

04:06do because clearly this isn't generating the cash flow that i need to actually make an impact on my

04:10life so a friend of mine introduced me to the idea of short-term rental arbitrage so um if anyone i

04:18guess listening is not familiar with the concept very very simple concept where i rent a property

04:22furnish it list it on airbnb or similar short-term rental platforms and then collect the difference in

04:29profit each month okay and uh at first i was very you know skeptical of that idea gabe because it just

04:36like you know me get coming from the world of real estate investing like i want equity i want ownership

04:41i want this i want that um and you know a lease is only a multi-year relationship right so um but i

04:48decided to give it a shot because i was like at this point i really don't have capital left i sunk it

04:52so um we went ahead and dove into this world headfirst and you know by the end of year one

04:59we went from zero to about 1920 properties in this arbitrage model and by year two um you know we then

05:06pivoted into larger arbitrage projects involving you know big apartment complexes and things like that

05:11you know now about 36 38 units um you know producing well over 1.4 million in rev uh which is super cool

05:19so uh it worked and it worked quickly um you know so that was kind of the uh the cliff notes version of

05:27what happened the last two three years man nice no that that's awesome uh zero to 19 in one year that

05:33is that is a that's an that's an accomplishment that that would be difficult to do so let's let's

05:39dive into the nitty-gritty of this specific model arbitrage um you know take us like when you were just

05:46learning about this strategy how did you get the first few deals how do you negotiate how do you

05:51find the properties that you're renting what are you looking for how do you negotiate with the people

05:55that actually own the property you know take us to the nitty-gritty of it yeah i'm i'll i'll give you

06:00i'll give you the rundown so you know these are the the biggest question marks for anybody in the world

06:06of arbitrage and rightfully so because we approach it from like an investor in a business mindset so

06:10have you ever heard of this term called the burger king strategy no okay so i love this um what one of

06:18the guys i learned how to analyze airbnbs from years ago gave me this idea and i just i just apply it to

06:23everything so the burger king strategy is this mcdonald's does all of this ridiculous research

06:28with before they launched mcdonald's right the demographic the population the future plans of the

06:33city all this stuff they know exactly why they're going to launch it on this corner yeah so what does

06:38burger king do they say hey mcdonald's did all the work i'm just going to open up across the street

06:42so i didn't know that actually sounds like i have a walmart strategy of investing if walmart is in an

06:49area i i have a lot uh more confidence in investing you know a 20 mile radius of that walmart because

06:55they've done the research they have a whole team of people deciding that the population here will grow

07:00and will support this this department so uh sounds similar i like that from now on we'll call it the

07:06walmart strategy then so um but so basically we take that same application to like finding profitable

07:12like potential properties because that's like step one before you do anything it's like does the market

07:17work and do the properties work right so we basically take an approach of like let's look at a market let's

07:23see what people are already doing well on airbnb and just make sure that the rentals available in that

07:30market the properties available for rent match that criteria so like renovation style are the winning

07:36properties do they have pools uh you know like are they relatively close to like you know big look um

07:42like big locations and things like that so um we use a software called air dna for that um now i will

07:48just take a quick detour here and a disclaimer um air dna has a pretty mixed reputation i don't know if

07:56you've ever have you ever heard of this software yeah yeah i mean i've multiple people have mentioned

07:59it um i've used i have a i got like a lifetime subscription to matchable which is like uh

08:05similar to air dna but it's not not nearly as in-depth um yeah air dna you have quite the

08:11it really goes into the the you know the the numbers behind uh short-term rentals i'm sure you

08:18could still get great results with with um i think you said matchable right and um at the end of the day

08:23i think a lot of these softwares work but the the biggest problem gabe is that there is a feature

08:29on air dna where you just type in an address and it spits out a number and it's like oh like that's

08:34how much the property is going to make and that is obviously the incorrect way to use anything there's

08:39no magic bullet for any sort of investment strategy right so the actual method that we take

08:45on that software which i'm sure you could apply with your software is let's look at the revenue data

08:50of properties nearby and then when i go to find a rental property i compare the the attributes of

08:56that property to the other comps nearby just like you would have the real estate investing project

09:01right yeah so then we make a much more accurate assessment on how much revenue the property would

09:05make based on that and that was in that for uh not only location you're looking for amenities like

09:12that maybe this property has a view does this one also have a view this property has a tennis court

09:17does this one also have a tennis court that kind of thing exactly it's like hey here's a property

09:21that's making 100k on airbnb right now why okay they've got a pool it's a three-bedroom house they've

09:27got nice renovation now i already know if i can find those three criterias i'm going to be teed up to

09:32be in that 100k range like to an extent right yeah so that's really the how do you um sorry i'm

09:38pausing you there how do you how do you first decide where you're looking so if you're you know

09:44you already have chosen you found comps for this area you know probably a single zip code that you're

09:49looking in how do you find that zip code to start with yeah great question so there's really i'll

09:55take a step back here too before we dive into any market especially when it comes to the world of

10:00arbitrage right because we're going to rent the property get permission from the landlord and then

10:04list it as a short-term rental right you're a non-owner okay so there are a few markets in the united

10:10states that will make your life very difficult if you try to do it there and my simple advice

10:15is just do not try to operate in those markets right like nobody here is in the business of

10:20trying to fly under the radar of the law and at the end of the day if it's very very complex and it

10:25needs to be owner occupied it needs to be listed by the owner and all this other stuff then just

10:29don't launch there right like we're not going to target that market now oftentimes right on the

10:34radius of that market you can find something that makes sense right so that's step one is just

10:39like let's just make sure the market is digestible and legally you're not going to run into problems

10:44yes and there is another strategy you can take even if there are some legal um legal challenges

10:50called co-hosting which i can break down a little bit but mainly for the world of arbitrage we're

10:55looking for like gabe like the the world of arbitrage gets this reputation like i need to be able to find

11:01properties that cash flow five six seven k a month right that's like the the that's the the expectation

11:07that's put out there by like you know airbnb gurus and like all this stuff right and in actuality

11:11that is not the average deal as a matter of fact like what we just want to find are a handful of

11:17properties that'll make at least one to three k per month in cash flow and that's way more attainable

11:21than trying to find this secret gold mine yeah so i digress but kind of going back to what you asked

11:28i wanted to set that foundation first so now that we know that we're looking in a market that doesn't

11:33have a ton of regulations that and we're just kind of setting the expectation i just need to find

11:38something that'll make one to two k a month in cash flow then the strategy just becomes okay let's

11:44just find what's working nearby and then make sure that we can mimic that right and that's where those

11:48softwares come into play where we can identify properties that meet that criteria make sense yeah

11:52yeah it does um the next questions that kind of pop up into my mind uh you know this isn't your

11:58property which in obviously that that brings up a host of liabilities um on your part how

12:05how do you structure the contract how do you make sure that you are also protected if the people that

12:11you're bringing into this person's property are you know they they trash it um what does that look like

12:15for you yeah so a couple of yeah a couple of things to dissect there too right and that's a great

12:20question from a legal perspective now this is not legal advice of course but the way that we

12:25structure this would be very simple we sign typically the lease that the landlord would

12:29provide us which is a regular state lease then we provide an additional addendum yeah yeah where we

12:35are granted legal permission to sublet it right um and then on top of that from a liability

12:41perspective there's a couple avenues you can go the the one-liner would be a we as the host were

12:47protected by the platforms so airbnb offers up to one to one to two million dollars in liability

12:53damages every single reservation right wow i didn't know that's crazy yeah um through air cover

12:58standard for airbnb is like if if a host that comes from airbnb trashes your house airbnb will

13:05pay for it you don't have to go through your own insurance yeah correct correct now now that's me as

13:11the host now we have the property owner who again it's like then it becomes this dicey thing where it's

13:16like okay who submits the claim who actually is liable all this other stuff and there's other

13:20there's other factors there that make this a little bit more complex but the the simple way to make

13:24sure that everybody is protected is me as the arbitrager i'm going to lean on the platform the

13:30property owner we typically will advise them if you'd like an additional layer of protection for

13:35yourself simply just alter your home insurance from like a regular rental policy to a short-term

13:40policy right which is like now everybody is just completely covered there's no like ifs ands or

13:46thoughts about it makes sense okay yeah that makes sense um so you've you've identified the the area

13:52you found a property that fits your criteria now it's time to reach out to the actual owner how does

13:57that conversation go because me as an owner if i if i've listed it out there for a long term that's

14:02what i want i want somebody to be there for a long a long time the thought of having a lot of

14:07people come through there you know more wear and tear on the on the property um it's probably

14:12you know i'm where is my incentive there how do you make it more attractive to the people that

14:17you're actually approaching i thought the same thing when my friend first gave me this idea i

14:22said why on earth would a landlord want to do this right and fortunately i went through that

14:27horrible experience with my property for this to click right away so let me kind of spin this back

14:32to you gabe right your rental property owner what keeps you up at night evictions bad tenants

14:37payments late payments the property's a mess you get calls in the middle of the night about the

14:42leaky toilet or you have to pay an extra 10 20 for a property manager right so now me as an

14:49arbitrager i'm going to come in the property and work this thing like a business which means what

14:53does that mean for you on time rent every single month i'm not taking a dollar more than your regular

14:58asking rent right the property's cleaned routinely like multiple times a week it's going to be in the

15:03same condition that it is at the end of year two as it is on day one and guess what i'm earning money

15:09out of the property so i'm literally never going to leave so it's like you as a landlord you just

15:14get to sit on your butt and collect maximum rent so the funny thing is is uh there's i i do not

15:22struggle with landlords saying yes to this ever it's more so just like hey does this property make sense

15:28for me so i am actually in in the position of authority of like i can say no to the deal not really

15:33the landlord they usually want to work with you to present it that way does that make sense yeah

15:36yeah that does make sense um and specifically when you said you know you are running this as a business

15:41so you are going to be wanting to stay in this property forever um and that i feel like that is

15:46the a big selling point for people who own long-term rentals is because the thing that i care about is i

15:51just don't want to have to flip this property every year you know when the lease runs out i don't want

15:55to have to you know clean it get a new tenant all that stuff that's you know it takes at least a month

16:00so that's a whole month's rent that you're losing there and so um someone's going to be staying

16:04there for you know 10 years that makes makes sense uh from from the landlord's perspective

16:09um all right so you found the landlord you've negotiated it you got a contract everybody's

16:15protected now the property is in your possession you can start renting it what is what do you do

16:20from there what are the first couple of steps that you run yeah so the thing i love about this

16:25business model uh gabe is is you can truthfully make this very passive very very passive and and

16:33that sounds insane considering it's a short term rental business it's like you're running a small

16:37hospital yeah like octa people you know when i can take airbnbs you're texting the owner you're like

16:43there's a lot so let me explain this uh the very first couple of weekends we went live keep in mind

16:49two years ago i knew nothing about this business and the very first weekend we went live i remember

16:55staying up till three in the morning answering guest messages on a friday night and i was like

16:58i never want to do this again so the cool thing is is because there are cleaners there so regularly

17:06that means that you kind of have an additional set of eyes and ears on the property at all times

17:10right okay so here's what you can do this is actually pretty incredible is if you could just

17:15automate these three things if you could just plug in tools and people for these three things you can

17:19actually almost entirely separate yourself from the business now not like 100 entirely but you can

17:24make your life 10 times easier so the first is cleaning right you need people there regularly

17:29to clean the property of course and turn it over and make sure it's top notch what you can do is

17:34there's a lot of softwares these days to help you do that biggest one no secret there's one called

17:39turno uh where you can actually not only use the platform to recruit cleaners they have the reputation

17:44on the platform but you can hire them communicate with them have them fill out checklists on that

17:49platform and even just plug that directly into your airbnbs so they automatically get notified of

17:54bookings extended stays all that stuff right oh okay that that was actually going to be one of my

17:58questions is it's not only the people that are coming to stay at your property but it's also the

18:04cleaning staff i feel like there's a lot of communication there but if they're automatically

18:07being notified you know these are not standard length um stays so if somebody leaves they stay for

18:14one day and then they leave the next and they're automatically being notified that they have to go

18:18there uh that takes a lot of the headache out of the entire process so yeah that makes a lot of

18:22sense and this is turn turno like t-u-r-n-o correct it used to be called turnover b&b um now they're

18:28called turno now that's one platform there's a couple like that and then there's a couple of other

18:32platforms you could actually just hire your own cleaners outside of that and then link them to like

18:36a property management software but moral of the story is that's the easiest one-stop shop so then

18:41you've got cleaning automated to some capacity now we've got to deal with okay how do we

18:45deal with guest communication or even communication with my cleaners how do i kind of like

18:50slowly peel myself away from that right so what we did is we actually found virtual assistants right

18:58so like real people overseas of course that are um essentially pennies on the dollar in the united

19:02states and what they do is they work around the clock uh for very affordable rates to just

19:09communicate with your guests the crazy thing is is you can actually find uh some of these virtual

19:14assistants that were ex-airbnb employees like they already know the airbnb customer service world

19:19oh nice yeah they already know the claim process it's pretty crazy so my point is you can hire a few

19:25of these folks for a couple hundred bucks a month to literally just around the clock deal with

19:29guest messages and then even train them to the point where they coordinate with your cleaners for

19:33you coordinate with your handymen for you and do all these things so um of course that doesn't

19:39happen overnight you got to just like train them implement them hire them all that stuff but

19:43and do they do they also handle your guest communications so when people text at night

19:47uh they'll they'll respond 100 i i haven't dealt with like a guest message in i can't even tell i

19:54can't even tell the last time i have nice personal that's cool so um that's two you said three pillars

20:00you got your cleaners automated through turn out you got your communications automated through your

20:04vas what's the third one third would be pricing right because like once you're live what you

20:10ultimately want to do is adjust for seasonality right because these are a short-term rental i don't

20:15care what anyone says it's gonna fluctuate like year round now we're investors gabe so like what

20:21we do is we look at what is the average uh profit margin and revenue based on a 12 year 12 month

20:27time frame because if you just look at it month by month you're gonna be like oh my god i'm on top

20:30of the world and then i'm like losing money and then i'm like you know you're gonna be all over the

20:33place you want to look at it from a 12 year or 12 month perspective okay so um there are other

20:38software tools that you can integrate with your short-term rentals that will automatically adjust

20:42the pricing year round based on seasonality and demand which means you stay booked and you also

20:47maximize revenue based on things in the area so one of them is called price labs this is not the only

20:54one but this is one of them and uh i'll tell you a really quick story um are you a taylor swift fan

21:00uh my fiance is for sure but you know taylor has some good songs believe me this wasn't a trick

21:07question so uh i wasn't trying to get you in trouble by the field but the reason i asked you

21:11the question is i am not i know nothing about taylor swift outside of you know the music things like

21:16that so i have a bunch of short-term rentals in pittsburgh right and i had no clue she had a

21:22concert because i don't listen to taylor swift right but the software knew the software knew taylor

21:27swift was coming to town it saw that all of the rates in the area in the hotels and all the other

21:32short-term rentals were skyrocketing so lo and behold i have no idea why i check in that one

21:38weekend each property's charging 1200 a night and getting booked so my point is if you have a tool

21:43like that in place it's not just about staying booked it's about maximizing that opportunity

21:46so um if you have those three things in check though you can quite literally peel yourself away

21:52from like 80 to 90 percent of the day-to-day operations of the business it's actually pretty insane

21:57and then you can truthfully create as much of a passive experience as you'd like so you know for

22:03the average person that's looking to make 5 10k a month you know just do the math you find five of

22:08these properties netting you anywhere from one to three k and then you implement these softwares

22:11you get your time and you get the cash flow that you want sounds good to me i like it but obviously you

22:18know nothing is free uh everything it does take money to to get started and so what are the startup

22:25costs here you you found the property you've negotiated i'm sure you got to put your your

22:29your down or your down payment for the property like maybe one month's rent so that's let's say

22:34three thousand dollars uh and then you've mentioned earlier that you are uh furnishing these places

22:40these these houses so what is your cost to furnish it um what other startup costs you have

22:46startup costs are minimal this is a low cash business now you can't start it for free of course now

22:52biggest costs right out of the gate are just going to be security deposits right you rent a property

22:57for two to three k you got to pay that two to three k um oftentimes if you present it to the

23:02landlord the right way you might even get one to two months rent for free up front um which has

23:07happened to me quite a bit um and my clients but ultimately uh you got the security deposit and then

23:13maybe first month's rent maybe so with that being said you get your llc created stuff like that you

23:19might have a couple hundred dollars in cost there i'd recommend about if you have like five to ten

23:24k in liquid you really have set yourself up for everything okay i've heard another guest of yours

23:29actually even try to creatively come up with the cost associated with the um the security deposit by

23:35like sending himself an invoice on quickbooks and all this other stuff so like you might be able to

23:39finagle that but i would just say if you have five to ten k in cash you're more than set up now

23:43we got to furnish that first property let's just say it costs 10k right okay uh that's when i would

23:49leverage zero percent interest business credit this is like this is like when i figured this out this

23:53was like striking gold in the uf one of my partners he he's you know he makes tons of money but he still

23:59just loves getting those credit cards with zero percent interest and using it but i'm just like man what

24:04are you doing david well it's great because like here's the thing is you know we're investors so like

24:10our inherent nature is i am not going to spend capital in my pocket if i don't have to because

24:14i can use that on another investment opportunity right yeah so it's like in the u.s and again i

24:19might be like totally botching the actual complexity of this but it's like if i have a 600 plus credit

24:24score i create an llc i go to the bank i say i just created a business could you help me out the bank

24:30says here's 2030k is your percent interest business credit card because i want to earn you as a client

24:34and listen i mean that's pretty amazing if you could just inject 2030k into your business venture

24:41that has no interest charge to it why not utilize it right so um i would advise that and just put all

24:47the furniture on that and then you pay it down with the profits from your property and then that would

24:50allow you to scale more quickly with only having to use that five to ten k in your pocket so and from

24:56when you're saying furniture i mean we're talking this is a completely vacant property and so you're

25:02you're bringing in obviously couches chairs beds that kind of thing but also you're bringing in

25:07linens you're bringing in decorations um what other kind of things that you generally wouldn't think of

25:13that you need to spend to to make these properties nice are you changing out locks

25:17mm-hmm um so it's it's really a combination of furniture linens kitchenware and smart locks like

25:25that's that's the the essentials um obviously every project's a little bit different but

25:30the cool thing is is like you know gabe at the end of the day we're a business which means you

25:35know if you're going to operate like a smart investor and try to maximize your roi like you

25:40and i both realize we don't book an airbnb because i noticed that the couch in the photo is a ten

25:47thousand dollar restoration hardware couch right i have no clue what that is it's based on how good

25:52the photos look so my point is you really don't need to furnish it for 30k in order to make a return

25:58you could probably furnish for like eight to ten so um no sense in doing that because it doesn't

26:03really impact your roi um do you do you hire somebody to come like somebody that has an eye

26:09for design if i if i furnished a house it would just not look that great no offense yeah to myself

26:15but uh i'm i'm assuming you probably hire somebody that knows design they they have an eye for colors and

26:22they put it together well for sure do you do it yourself yeah okay yeah it's funny if i were to

26:28show you a photos of my first couple of airbnbs it would be obvious that i tried to do it myself

26:33um i did not know what the hell i was doing um so what we we actually use um and our clients use her

26:38now she's a she's a virtual interior designer specifically for short-term metals she's overseas

26:43and it's super cool gabe what i do is i just send her photos from my iphone of the place

26:48i say here are the dimensions help me out and in two days she'll send me a mood board

26:54and a purchase list of every single item and the best part is is i'm like hey i want to stay under

26:598k in this project done so it's just like it just makes my life so much easier because i am not an

27:04interior designer by nature i'm sure most of us are not um so that makes my life a lot easier so

27:10nice that's a fun job just going around you know if you if you like design just selecting

27:14couches and colors for a certain area that's uh i'm sure she enjoys that for sure and uh one last

27:21thing i'll say on this topic is like you know what is the cash on cash return because like we as like

27:27real estate investors that's like the first thing we look at when we buy a property um so here's the

27:31crazy thing now you don't get the equity benefits of buying real estate but if we just break down the

27:36back of napkin math for a second it's like i'm putting in 10k in furniture and maybe another 3k

27:42in security deposits 2k in security deposits so now we're talking 12k all in right now if that

27:47property cash flows me 1 000 a month that's 12k over the course of the year that is literally in

27:54100 cash on cash return literally 100 which is outrageous now you don't get the equity you don't

28:01get the same 30 year relationship that you do with with a property but it's like why don't i just

28:06it's more of a business than it is an investment you're not yeah i wouldn't really think of it as an

28:11investment i would think of it like i'm starting a business i'm running a business and this is how

28:15i'm building active cash that if i would like i can put it into an investment you know long-term

28:20rental self-storage facility whatever um but it's a way to to create that active income with little

28:26down in real estate which really there aren't a lot of strategies in real estate that you can make

28:32money with a little money everybody says you can make money with no money in real estate that's

28:35bullshit you need money to make money in real estate but this is a this is a legitimate way to make

28:40you know you don't need a lot of money to get started so i i've i've heard of the strategy a

28:45few times and i've really liked it i've i've actually looked into it myself i but i keep

28:49telling myself shiny object syndrome yeah don't do it focus on what you're good at but uh but i do

28:55really like the strategy i think it's a it's pretty unique um i do have to push us out we've already

28:59we've blasted through the 20 minute mark but before we move on i always like to hear the pnl from every

29:05type of of uh you know model that we're running so what does the pnl look like for your model um

29:11what is the top line generally what are you guys doing per property what are the expenses that you

29:16have and then uh you said obviously your net is usually two to three thousand um that you're making

29:21per month yeah so um i i do want to add to that like some of our portfolio are co-hosting deals

29:27really really quick touch on this i know we're short on time this is where instead of us actually

29:32leasing the property we just take a percentage of managing the property for the owner so you might

29:38find an airbnb that's like clearly failing because they don't know what they're doing and then you

29:42just say hey let me run it for you i'll take care of all the back end you could still automate it

29:46between you and i gabe and then you take 10 20 30 right so this is a great great strategy for those

29:52that don't even have that 5 to 10k in capital or good credit in order to get an arbitrage right so

29:57but anyway just giving you kind of like the brass tacks um our portfolio like i said is probably

30:02around like the range of like 1.4 to like 1.6 a year in revenue that's top line revenue um the

30:08reason why i'm like all over the place with that is because some of those units we launched very

30:12recently so it's like we haven't even realized that revenue yet right um average cash flow on an

30:16arbitrage deal is anywhere from like 800 to like 2 000 a month so moral of the story is per deal

30:23like the average single family home that i recommend people would start with will usually be in the

30:29revenue range of 50 to 70k a year and that'll be a cash flow range of like 800 to 2 000 a month in

30:36pure profit right that's usually what we're looking at you know obviously our portfolio at this point

30:41nets us anywhere from like 30 to 60 depending on the month but you know like the average cash flow

30:46range is going to be around like the 30 to 40 range if that makes sense yeah no i mean and that's

30:51still that's still pretty good specifically because you're not having to bring a down payment you're just

30:54bringing the the initial setup and and then you get you know you get rolling so um 800 to 2 000 a

31:01month that's that's nothing to wag your finger at that's pretty good cool all right man that wraps

31:06it up i'm gonna push us into the quick question round are you ready sure hit me all right it starts

31:11with education it could be any form could be a conference you've gone to a mentorship program

31:16you've been a part of movie you've seen anything i just need two recommendations one for general life

31:21wisdom and then one for real estate okay without trying to think about this too hard general life

31:26wisdom a book that really uh really hit me hard recently was conversations with god by neil donald

31:32walsh if anybody's heard of it it's actually not a religious book per se but um very powerful for

31:38just kind of questioning your life path and a way to approach your level of fulfillment so really

31:43really cool book that impacted me as an entrepreneur um as for i think you said one personal one investing

31:49right yep investing uh another good book that i read no wisdom or general real estate or business

31:55doesn't have real estate business um one that i read that i always come back to from a real estate

32:00perspective is the book on long distance real estate investing by david green back when he was with

32:06bigger pockets not that i think the book is really valuable just because it's it's written in a way to

32:12help you with long distance investing but it actually has all the principles necessary for real estate

32:17investing anywhere or business anywhere because it's about setting up a proper team of people it's

32:23about finding good property managers finding good this and that yada yada people to help you facilitate

32:27deals if you get the fundamentals down there you can apply that to anything in real estate investing

32:31so i really really like that book that's just one that i reference a lot perfect i love it all right

32:36let's go to the next question this is for your younger self uh let's go back to the version of you

32:41who had no idea about real estate no idea about airbnb arbitrage go back to him look him in the eye give

32:47him one piece of advice moving forward you hit you touched on this a little bit earlier which was i

32:53don't want to get shiny object syndrome and i and i just want to stay focused um burn the boats burn the

32:59boats that is an expression from you know whatever conquistador back in whatever time frame i don't even

33:04remember but burn the boats meaning whatever it is that you decide to do just pick it and burn the

33:12bridges and just go all in on that one thing because that is a superpower to accelerating your

33:16success with it just hyper focus on even if it's just one year worst case scenario you don't make as

33:21much money as you wanted to you still made it work but you can't do this thing where you're like half

33:25in and i'm going to try this and i'm going to try this because then nothing's going to succeed

33:28just burn the boats go all in yeah that that's really good advice and i don't think anybody has said

33:34that but it is the thing that that made me successful really is i was one foot in one foot

33:40out i was working corporate um for so long it was like eight years almost almost a decade

33:46and i was like flipping houses on the side doing wholesales but i never really got traction in real

33:51estate until i lost my job and then i was like i'm all in this is this is what i'm doing i'm not gonna

33:57fail and at that point you know once once you have burned the bridges once you you know have

34:04decided or actually really have no choice but to move forward that is what makes you

34:08spine success it will just come because you have no other option and so i like that i like that

34:15advice um and it's not something that a lot of people hear about that's awesome um last thing i'll

34:20say on that when i was in corporate i was a i was a sales rep and i was terrible at sales it was

34:25terrible and it took me a while to get good at it and uh i just if i could reflect one of the most

34:30fulfilling portions of my life was when i was just obsessed with my sales territory and nothing

34:36nothing else in the world mattered i didn't see friends i didn't do this i didn't do that and it

34:40was just like how do i how do i grow this business how to grow this business but you just channel all

34:43this ridiculous energy that you don't even know that you have so you just got obsessed over it

34:48nice i love it all right next question is about the u.s it is a big place there is a lot of opportunity

34:53out there give me the single metro you're most excited about starting a new airbnb arbitrage business in

34:59today man good question good good question we pivoted our strategy to taking on big apartment

35:08complexes um this is not a beginner strategy but this is like when instead of me going to one

35:13landlord and saying let me rent your house you go to an apartment complex you say hey give me five

35:18and you do that exact strategy we did this with 36 apartments in uh philly we partnered in with some

35:23people there's a video on it on youtube and stuff um where i'm going with this is i like to

35:29diversify i want to try to find a different city that like is a different seasonality than the

35:33northeast i think i'm going to start pivoting to potentially like west coast like arizona texas just

35:40because it's a totally different seasonal market than the northeast so not really directly answering

35:45your question but we will see okay and that's uh that's interesting you mentioned you know multi-family

35:51um approaching multi-family owners and saying hey let me take a number of them and do this this

35:58specific strategy because uh um i mean if you find the right multi-family complex the we're gonna have

36:05to do a second episode on that one there's too many questions that pop into my mind there we're gonna

36:09move on but that's a interesting idea all right next question um is about finding deals it all starts

36:15with getting in contact with the owner in your case and pen in that agreement so what is your favorite

36:20way to generate leads and find new deals for this model specifically for rent by owner listings two

36:28great platforms for that one is called hotpads.com it's owned by zillow there is a filter on hotpads

36:34that will allow you to sort your rentals by for rent by owner that will save you a tremendous amount

36:39of time same thing in apartments.com this is a recent feature they added for rent by owner skip the

36:44middleman i just want to go directly to gabe nice i like it yep all right um next question is about

36:50lessons learned not every deal that we get into goes the way we expect it in fact many times things

36:56go wrong and that's when we get to learn a lesson so what was the deal that went a little sideways for

36:59you and what was the lesson you pulled from it i had a really really big arbitrage opportunity where

37:07we pulled in multiple people to take a bunch of units that went south mainly because the building that

37:13we were partnering with did not follow through on what they promised us and it created a dicey

37:21situation um i guess the biggest lesson learned outside of outside of the the the obvious one

37:28which is like really make sure the partners that you're getting into with are who they say they are

37:33what you know and and they're going to follow through with what they say and you vet out all

37:36potential risks and all that stuff i guess the biggest lesson learned though is that like no matter

37:40what big investment or entrepreneurship opportunity you're going to get in no matter how much due

37:45diligence you do no matter how much preparation you do no matter how many books you read no matter

37:49how many courses you take no matter how many whatever if you think it's the perfect time

37:52shit's going to happen it's just it's going to happen and you can't like be afraid

37:58to just endure shit at some point in life and let fear be the decision decision maker for you so it's

38:05like it's not a it's not a and if it's a when and sometimes those are the the most important

38:10important moments where you look back in life you're like i'm 10 times more resilient now because

38:14of that so it's going to happen just know it's going to happen and then don't lose your cool in

38:18the process yeah yeah things always go wrong and there's uh most of the time it's not that you

38:25screwed up your due diligence or anything it's just that it's something that you could not have

38:29predicted maybe there was an earthquake maybe there was a hurricane something that is out of your

38:33control um but you can you can just expect it expect things to go wrong and then when it does

38:38go wrong you're not as affected you're not as emotionally affected and you can just focus in

38:43solve the problem and move on um yeah and on uh on the converse of that sometimes these stars align

38:50and everything goes right so this is the next question what was your highlight reel what was the

38:54deal that everything went perfect for you uh and you walked off into the sunset

38:59um i want to say that it was just the it was when we first started pivoting into these large

39:08apartment opportunities um our very first apartment opportunity was a roll of the dice

39:12we took seven apartments and we were like i don't know if this is going to work i've heard of other

39:17people doing apartments and like it's kind of like iffy and this and that so we just we followed

39:21through we had a good relationship with this apartment complex and gabe i didn't even realize it until

39:26the year ended and i looked at the the income statement and those seven apartments cash flowed

39:32profit net 89 grand and i was like dude this is the way like we got do this more often so um i that was

39:41an eye-opener for me that was the deal that i think created the momentum for us to get in a bigger

39:45apartment complex opportunities and uh open that that door to us yeah having that success especially

39:52when you're trying a new strategy having that early success is so important um you know you mentioned

39:56like your first property everything went wrong that was the same for me my first flip it was a triplex

40:02everything went wrong but at the end we made 90 000 and that was the most i had ever seen in my life in

40:09one check wow the the light bulb went off and i realized like yes this works even when things go wrong

40:15it works and so yeah having that early success is is super important that's awesome all right and then

40:21uh moving us on to the next question this is about team building uh none of us are islands it takes a

40:27team to build a business so what is your advice to people out there building a team

40:31you're only as strong as your weakest link and building building a team requires you to lead by

40:43example um leadership is like a full-time gig it's a full-time job this is not something that like

40:49you could just hire people put in place and then never have to deal with again so advice would be

40:54top talent is very important sometimes it's worth paying extra for and again you're only as strong

41:01as your weakest link meaning your your weakest team member so assess who you've got in your team

41:07and make sure that the the the the the person who's not the shining star is still worth their

41:14weight and that's ultimately going to still help you get what you achieve cool i like it all right

41:19that leads us to the last question this is about or this is for the listeners you've given us a lot

41:24to think about i'm sure people want to reach out get in contact with you as a two-parter where can

41:28they find you and then what can they expect when they reach out sure okay well gabe one of the things

41:33all about you is you're always showing up constantly for the audience and you provide a lot of massive

41:37value so i want to do the same um so what i'm going to do is instead of just being like hey here's my

41:42website um i'm going to do this i'm going to give anyone who's listening specifically to this

41:46this episode something that i don't usually offer that i reserve for actual clients right so i'm going

41:52to give you what i like to call a cash flow quick start kit very um conveniently named right so

41:58here's who it's for it's for a nine to five professional or first-time entrepreneur investor

42:03who's looking to you know start their five to ten k a month cash flow portfolio through airbnb

42:08without having to buy properties right so here's what you can do um first thing i'm going to give

42:14you is the airbnb market launch blueprint this is just a five-step guide to finding markets that will

42:20be profitable for airbnb and properties within that market that will be profitable for airbnb even if you

42:25think my city won't work right the second thing is i'll give you a quick airbnb game plan session

42:31this is the first thing i do with like actual clients that come into my world it's just a deep

42:35dive session where we look at where you're at right now and we build an action plan to uh that you guys

42:40can take and implement immediately to get your first listing so if you want all this stuff all i'm

42:44asking you to do follow me on instagram it's vinny v-i-n-n-y b-n-b like airbnb and just send me the word

42:52uh rei club for this episode so rei club uh so once again if you want the blueprint and you want

42:59the airbnb session just dm me the word rei club at vinny v-i-n-n-y b-n-b on instagram and i'll

43:06personally send them over cool perfect sounds good i will put that link in the show notes so if you

43:11guys want to reach out just click the little more in the description it'll pull down that full

43:15description in there you can find uh vincent's link cool all right man that wraps it up thank you

43:21very much for offering on the show rock on thanks a lot gabe absolutely for everybody who's with us

43:27today thank you guys for showing up you are the reason we do this so if you guys have any questions

43:31reach out to me gabe with real estate investing club.com if you guys want to support the show

43:35just leave us a review other than that i hope you guys have a great week keep rocking real estate and

43:40i look forward to seeing you on the next episode

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