Is it possible to get started investing in real estate with only $100?
This week Dan has been under the weather, so we are breaking out an episode from the vaults! If you’re feeling nostalgic, check out the YouTube channel to see the old podcast studio setup… we’ve come a long way!
You’ve only got $100 in your bank account. What can you do with it? Can you turn that $100 into $100 million through real estate?
In today’s episode, Dan and Anthony are going to see if it’s possible to invest only $100 into real estate.
Spoiler Alert: It’s possible, but it won’t be easy!
All of this and more on this week’s episode of Multifamily Investing Made Simple, In Under 1o Minutes.
Tweetable Quotes:
“If all you have to invest is a hundred dollars, you don’t have enough money to go and meaningfully invest. That money should really be put back into your own self-education.” – Anthony Vicino
“It’s very much a relationship business, whether you’re buying properties and you’re looking to get to know sellers, or you’re looking to find those partners, like you mentioned, you’ve gotta have that network and getting that network is free.” – Dan Krueger
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*Transcript*
Can You Invest In Real Estate With $100?!
[00:00:00] Anthony: Hello and welcome to multi-family investing made simple. This is the podcast where we take the complexity out of real estate investing so that you can get started today. My name is Anthony Pacino and I am of Invictus capital. And I’m joined next to me by this guy, Dan. Needlessly complex Kruger. I like to
[00:00:33] Dan: complicate things you do for no reason you do.
[00:00:35] Anthony: And I’ve been meaning to talk to you about this. Yeah, it’s needless.
[00:00:39] Dan: I was trying to think of a way to make that complicated. I couldn’t do it. I really wanted to though.
[00:00:43] Anthony: Now I’m just kidding. Dan is an expert at being simple. He is as simple as they get a true simpleton. If you will. Man, this episode’s off to a weird start.
all right. Let’s let’s while we’re we’re
[00:00:54] Dan: in the middle there. Yeah, he he’s pretty good
[00:00:56] Anthony: guy. He’s the good guy. I like this guy. He’s all right. Okay. Let’s talk about the thing [00:01:00] that we’re here to talk about. This is an under 10 minute episode. So this is a quick hitting dose of value right in your face. Um, so far we wasted a minute per usual.
Yeah. If it comes, if this value comes in too hot and heavy, I’m sorry. Um, it’s not, it probably won’t but coming slow. Okay. I think the topic today is we’re gonna do a little brainstorm session session. How you could get involved or started investing in real estate with only a hundred dollars. This was a question that, um, Reed came up with and I was like, that’s just crazy enough to, to work.
Let’s try it. Let’s see. Could you invest in real estate for a hundred dollars? Mm-hmm what would you do? And, and I guess I think about this more like, okay, if I had to start all over and I really, and money really, wasn’t the thing that I had. How would I get started? What would I do? Mm-hmm
[00:01:44] Dan: yeah, so a hundred dollars.
So like how to own a building with just a hundred dollars, but how do you get started towards yeah.
[00:01:51] Anthony: Yep. So that’s, that’s how I’m approaching it. Good. So that’s how I approach it
[00:01:54] Dan: too. So what do you got, um, certain from the top? I think the biggest thing [00:02:00] is education. That’s the thing you gotta prioritize first.
I’m assuming that if you’re not in real estate yet, and you’re trying to be the only thing preventing you from actually being actively involved is. You don’t know enough yet, so you need to get as educated as possible. So one thing you could do, and I’ve got a couple here to hit on too, to be exact is take that money and use it to, uh, wine and dine some of the people that are where you want to be and do it cost effectively.
So just go get coffee with them, but take that a hundred bucks and try to get. handful of people who are, where you wanna be out to coffee, pick their brain and ask ’em this very question. How do I get started? What do I need to do? Who do I need to know? And start that educational journey there. Obviously you wanna read, you wanna do a lot of stuff, but I think the first thing to do is try to meet people.
And early on the, the easiest way to do that, I think is to take people out to lunch, take ’em out to coffee, just try to see if you can extract any kind of valuable knowledge, which you most certainly will be able to. So go buy coffee.
[00:02:55] Anthony: I like. I like it. There’s so much education out there that you can give for free on [00:03:00] YouTube.
I mean, heck you could go to our website. If you wanna get the sophisticated investor notes. That’s like almost 10 books right there. Just distilled and under 15, like under a page each. So you could consume that in less than 15 minutes. Mm-hmm so, yeah, I, I think if you have no money, you need to lean into education.
Um, always, always a good one. Yeah. Good answer. Good answer. Okay. So I I’m coming at this from a different family feud. Is that what the, yeah, it’s acceptable. It’s that’s an acceptable answer. That’s
[00:03:25] Dan: family F number five. Yeah. Let’s keep going. Like
[00:03:27] Anthony: that’s show me acceptable answer. Is that
[00:03:31] Dan: well, there’s one game show where they always say good answer.
After everything I wanna say is family food. Good answer. Good. Even though, even though it’s not half the time, it’s a horrible answer. Good answer. And everyone’s all supportive and I’m like trying to make me feel better. That’s you going?
[00:03:41] Anthony: All right. So if I had to start over and I’m assuming in you’re a scenario, you’re assuming that you didn’t.
Have any knowledge, I’m assuming I’m starting over right now with the knowledge that I do have. So I’m gonna play this one a little bit differently. I, if I have no money, but I have the, the knowledge and experience that I have right now, what I would do is, is I would [00:04:00] go and I would start an Airbnb arbitrage property management company.
And what that would look like is I would go and I would, I would go to. Cool areas of town and look at the buildings that are for rent there. And I would try and approach the owner and propose, uh, a little partnership where I will fill their units with Airbnb. I’ll handle all the work and now I will furnish it and I will handle all the reservations and all the cleaning and all that stuff.
And. as a result, we will split the, the share of, of profits each month. I don’t know exactly what that would look like, but you can make, depending on the property and those location, those are huge, huge variables. You can make very good money as a property, um, owner in that equation, but you don’t necessarily wanna do any of the work.
So I would go in there and I would say, I’m gonna do all the work for you. Now, if I only had a hundred dollars, I probably wouldn’t be able to furnish that unit to make it really awesome was just a hundred dollars. So knowing what I. About how to raise capital and how to create [00:05:00] partnerships is I would probably go and find a partner and say, Hey, if you put up $5,000, I’m gonna give you a certain percentage of my company.
You we’re gonna furnish this thing. We’re gonna go in there. We’re gonna do this work. And it should pay back within the next however many months, right? Like put together a business plan and then I would go and execute that. And then from there, I would just try and continue growing a property management company, specifically designed for Airbnb.
Cause I don’t think there’s very many of those out there in the, in the space. Right. So it’d be solving for a problem. It’d be very low capital intensive, but very hard work. And at a certain point you could scale so that you have good systems and people in place, and hopefully have enough cash coming in that you can start going and buying your own buildings.
But I think that’s what I would do.
[00:05:40] Dan: that’s interest. Interesting take, because in that model, you wouldn’t necessarily be the owner, so you wouldn’t be investing in real estate. But what you’d be doing is learning the business of real estate, not through, uh, the traditional educational methods of reading or watching or, or talking to people, but actually doing the work.
Uh, so even if you’re business that you’d wanna be in isn’t necessarily [00:06:00] the Airbnb business, that would be a really great crash course in how. Be a property manager cause in Airbnb, you’re effectively turning a unit every couple of days. Yep. So within a year you’d get probably a wealth of wealth of knowledge.
And then like Anthony said, then you take some, some of that capital that you make and actually go and buy a building. But until that point, you’re not
[00:06:17] Anthony: really investing in real estate and thinking about this in a slightly different way, like to answer Reed’s question, I don’t think you can really invest in real estate with a hundred dollars.
It’s not enough. And, and if you, if all you have to invest is a hundred dollars, you don’t have enough money to go and meaningfully invest that money should really be put back into your own self education. because you need to increase your amount of savings and therefore. It, that probably starts with increasing your income mm-hmm
And so I’m a big proponent of creating cash generating machines that then you use to buy real estate. And so the first step is use that a hundred dollars to build, start building that cash generating machine. If you don’t have the knowledge, you need to go and acquire that first, assuming I do have that knowledge, what I would do is then go build straight away the business.
And now that I think about it, I, I probably wouldn’t even need to do it as an [00:07:00] arbitrage company. I would probably just go start an Airbnb cleaning. Because there are no good Airbnb cleaning companies out there, and there’s plenty of people that have Airbnbs and this is a problem that they need to solve.
And it would be such an easy in it’d be really low, uh, startup costs cuz how much to cleaning supply is like my first business was window washing. So this is like just an extension of that. Now they’re, they’re letting me in their house rather than on their house.
[00:07:24] Dan: Yeah. I’m gonna assume that if all you have is a hundred dollars in the scenario that you probably have.
Uh, so if you’re not the one that’s gonna be bringing the capital to the equation, you’re gonna wanna bring some kind of skill set. So like Anthony said, there is an issue. There’s a problem that needs to be solved for in the market. And if you could figure out how to do that, even if you don’t really have experience or money, but you can insert yourself as the problem solver.
In the industry, that’s a really great way to get in the door, but something else with, with your, um, uh, strategy that kind of struck you was, yes, you have the knowledge, but your, your strategy also assumes that you have the network and that’s the other most important thing that you need ahead of time. In addition to education [00:08:00] is you need to know as many people as possible.
Cause it’s very much a relationship business, whether you’re buying properties and you’re looking to get to know sellers, or you’re looking to find those partners, like you mentioned, you’ve gotta have that network and getting that network is free. So you. Like I said, go get coffee with people, go to events, try to meet all the people so that when you see all these pieces kind of coming together, you know who to reach out to and, and, uh, partner with, because that’s really the best way to, to scale up into
[00:08:24] Anthony: this thing on the cleaning.
And I’m, I’m putting this idea out there, cuz I’m hoping somebody is listening to this and they’re gonna go Airbnb cleaner for the Airbnb, clean Airbnb cleaner, go onto Airbnb, look up Airbnbs in your area, find, find their location, call the person cuz now, you know, they rent it, like figure out how to get in front of them and be like, Hey, do you guys need a cleaner?
Have a cleaning. like, it’s, it’s a lot of work, but I think as Alex, I think hormo said something about, you can either be broke or you can be busy, but you can’t be both. And he, he explains that concept really, really well. And I’m not gonna do it justice, so I’m gonna leave it there. But yeah, if you’re broke, you got time.
[00:09:00] So use it.
[00:09:01] Dan: Yeah. A hundred percent. And one other thing you can do shameless plug, uh, it just so happens. Our masterclass is $10, less than a hundred dollars. I think
[00:09:10] Anthony: it’s 99, actually, whatever. So it’s
[00:09:12] Dan: $1. Yeah. You can still get it for a hundred bucks and that is, that’s a good deal. It’s a masterclass. So yes, there’s free education out there, but if you want something that’s really kind of packaged well and, and delivered in a nice, organized fashion.
It’s kind of like the book on
[00:09:26] Anthony: steroids. If you want the cheat code to getting the masterclass for even cheaper, I else is poke. Yeah. Yeah. I got the cheat code for you. Cause if you listen to this, I want, I want you, I wanna do right by you. You can go to the passive investing book dot. And on there, you can buy the book, the physical book for, I think it’s 9 99, which is cheaper than you can get anywhere.
So $9. And then once you go through checkout, you’re gonna get hit with a one seriously, a one time offer to buy the masterclass for, I believe 50 bucks. So all told you, get it for $59. If you go to, I think it’s Invictus, [00:10:00] multifamily.com/masterclass. That’ll take you so you can buy the masterclass for $99.
[00:10:04] Dan: is this a bug? I feel like
[00:10:05] Anthony: this is a bug, this I’m, I’m giving you the cheat code as the creator. You got four hours as the creator of this, uh, ecosystem. I know all the cheat codes, this is, this is the cheapest way you can get the masterclass and the book. And also you get a choice of, uh, getting the audio book for like super cheaps too.
So like it’s the trifecta. Um, so keep that to yourself. People don’t go sharing that with everybody. All right. I think we’re a little bit over time, but, um, you know, hopefully you guys will forgive us hope we didn’t tune out right at 10 minutes cuz. You literally only had to, someone
[00:10:34] Dan: just got fired.
Somebody got late to work. I’m really sorry about
[00:10:37] Anthony: that. I’m sorry guys. Yeah. So Nathan now, uh, get back to work and everybody else, we appreciate you taking some time outta your day to join us.
