What is the fastest way to make money in real estate?
It’s important to first ask… can you actually make fast money in real estate. This is a more complicated question than you would think.
Yes, you can make fast money in real estate. But here’s where it gets tricky…
If you want to make fast money… you probably don’t want to own any real estate.
How does that work?
Find out on this episode of Multifamily Investing Made Simple, In Under 10 Minutes!
Tweetable Quotes:
“I do not think that it is super possible to own a property, to go and buy a property, and profit 10 K in a month. Especially in the first month.” – Anthony Vicino
“I wanna make sure that’s very clear for all you listeners, I don’t care who you’re listening to, what they’re saying on their channel, it’s not a quick business to make money in.” – Dan Krueger
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*Transcript*
The Fastest Way To Make Money In Real Estate
[00:00:00] Anthony: Hello and welcome to Multifamily Is Podcast, where we take the complexity out of real estate investing so that you can get started today. I am your host, Anthony Vino of Invictus Capital, joined as always by Dan k. We gotta hurry up and get through this because we are speed running this episode. This auction?
Yes. How did I do
[00:00:29] Dan: 25 bucks?
[00:00:30] Anthony: Uh, I’ll sold. Okay, good. You don’t know what you bought, but you got it. Okay. So for our listeners who are not familiar with the concept of speed running, Can you, Which is most of you. Most of you, yeah. Unless you’re under a certain age probably. You don’t know what speed running is.
And that’s okay. Uh, Dan, just give us a quick breakdown of what speed running is so that we can lay some context here. Sure. I
[00:00:54] Dan: just learned what it was about five minutes ago. Um, so I guess you’re probably better to explain this cuz [00:01:00] you’re, Well you could, the gist of it now, right? I get the gist of it. So if you guys aren’t aware, which maybe you are, maybe you’re.
Um, there’s a culture out there who’s really into video games and, uh, some people who are really good at certain games will try to do them as quickly as possible. Which, uh, could be very entertaining to watch. I think there’s a big culture of people that like to watch these things online. It’s called speed running.
You complete an entire game, whether it be like, uh, Zelda, Arine of Time in Four Hours. That’s the one I saw. Cause I played that a lot. Cause that usually
[00:01:26] Anthony: takes like a hundred hours, right? Like
[00:01:27] Dan: hundreds. It’s not a short, I never finished it. It’s not short. It’s a long one. It’s a long game. That was N 64.
Yeah. Um,
[00:01:33] Anthony: Anyways. Or a classic one is Mario. Yeah. Like I’ve seen people, I think it’s like three minutes. It might even be under three minutes. I mean if you do everything, we fact check
[00:01:41] Dan: this, but it’s perfect. You can actually complete these games pretty quickly, which is impressive. But that’s
[00:01:45] Anthony: speed running.
Yeah. So that’s speed running. So that lays to context. Then what we’re gonna do in this episode today in under 10 minutes is if we only had one month to make money in real estate, what would we do? What’s the best way [00:02:00] to make some money in real estate under a month? So like the situation I think of is like, maybe you’re just start.
Maybe like, you don’t have to have our skills and our network and everything. Let’s just say you’re starting out pretty new, but like we could snap a finger and we could download some skill set into your brain and then you could, you could use that skill so that in one month time you can make, say, let’s, let’s set it low at like $10,000.
Let’s say in one month, make $10,000 in real estate. Okay. Could you do it? Do you think you could? I got three idea.
[00:02:37] Dan: Make 10,000, Does that mean profit? . Yes. Cash in your hand? Yes. Not revenue. Okay. Profit. And you’re brand new. You have no experience. No
[00:02:47] Anthony: experience. But let’s like assume in a hypothetical world I could just like download the skills into you. Like I could, we could spend a day, okay. And I could teach you everything that you needed to know, and you had access to me as your mentor or you as your, as the mentor, and.
From that [00:03:00] moment forward, you have another 30. We’ll say it’s a long month. There’s 31 days in this month, so you got 30 days from that moment forward to execute the knowledge that you have been given. Okay?
[00:03:09] Dan: Um, I don’t recommend this, but if you’re brand new, um, You know, and you were able to download like matrix style, all of our then skills I know.
Come fu Yeah, you could learn anyways. Um, I would say, I mean the best way to make it in a month is probably to syndicate a deal and get an acquisition fee. Um, cuz most of the time if you’re doing the types of deals we do, it’s, it’s, it’s a slow ramp up, right? We do value add deals. They’re producing cash flow, but you know, we’ve gotta take a few months to, to really improve the operations, improve the units, get those rents up.
But one time acquisition fee on the front end. Um, again, I, I don’t actually think a brand new person should go out and syndicate a deal with no experience. But in this hypothetical, that would get you some cash in a month? Yeah.
[00:03:55] Anthony: Okay. So I don’t think. , it would be possible [00:04:00] if you were trying to be the the lead GP to go source the deal, get under contract, get the lawyer, get everything mobilized in a month to get that a fee.
But if you got onto a deal with another team that already had a deal like going, and then you had like some capital and you could go raise capital from like your network, which. Not saying you should get compensated for Mayor Capital, but I could see you getting a slice of it then, or maybe if you had a balance sheet and you could be at kp, but I’m, I’m assuming if you’re desperately in need of 10 K, like you’re probably not signing on anybody’s loans.
Yeah. But I
[00:04:30] Dan: feel like that doesn’t even really answer the question because this is kind of framed in a way that says, I’ve got no experience. I’m gonna go get my first deal. And like, realistically, how do I actually make money quickly? My, my gut reaction is like, real estate isn’t a quick get rich. Like we said a bunch on the show, like you could definitely do really well over a long timeline, but you’re not gonna do really well really quick.
And this just isn’t a space for, it’s not a quick hit business, right? It’s a long game. So that’s my [00:05:00] gut reaction. That’s what I wanna say. I feel like that’s a cop out. And that’s totally quick, baby.
[00:05:05] Anthony: This is a limiting belief. You got a limiting belief. I’m gonna break it right now. I got three ideas for you.
Break it right? I going snap them. Okay. Number one, you could rent out a bedroom that you’re in current. I don’t know if you’d make 10,000 in a month, cuz I just made up that rule. Um, after I’d already written this down, but if you needed to make money in real estate, then you had a spare bedroom or something like that, you could start renting out your bedroom if you had another one.
Okay?
[00:05:27] Dan: So you’ll make $200. So
[00:05:29] Anthony: $200. We need another 9,800. Okay? So you’re gonna rent, you’re gonna rent out a bedroom. And then, and
[00:05:35] Dan: two, 200 bucks is I think, really good for bedroom.
[00:05:37] Anthony: Yeah, I wouldn’t pay that. I mean, originally when I wrote this down, the goal was to make any amount of money and then that’s a different price.
At the beginning of the episode, I like threw out 10,000, so like that doesn’t help my cost, but okay. So the two ways that I think are actually pretty realistic, I’m gonna save my best one for last, but the second one is wholesaling. , if you could, you could download the information pretty quickly on like how to wholesale and then it’s just a [00:06:00] numbers game.
Remember like how many doors do you knock on, How many phone calls do you make? And if you’re really highly motivated, I bet you could go and find somebody with a property willing to sell it. In a couple of weeks and then you go find a seller or a buyer to take over the contract. You don’t have to be around for them to, to finish the transaction necessarily.
Maybe you just get bought out. So I could see that one. If you had 30 days and you did, you just lived, breathed, and slept, like wholesaling and cold calling and like, you could probably churn up a deal and, and get a paycheck. This the best way. . If I had to make money in real estate, and this isn’t really real estate, but it’s, it’s tied closely enough to it that I’m gonna count it.
You could start like an Airbnb arbitrage company, and that one would be pretty quickly. Would be pretty quick. So the theory, what you would do is you go out and you find somebody with a single family home, or you ha they have a home already. Maybe they’re already renting it out on Airbnb. You’re gonna go in there and you’re gonna.
Take over all the listing activity, [00:07:00] all the cleaning activity. You’re gonna get people, you’re gonna get guests in there. And Airbnbs per a video that I did yesterday with Reid, uh, they can, they can cash north of 10 K. So, you know, you don’t even own the building necessarily. You’re, you’re giving like the majority share to the, the owner, but you are getting a pretty sizable cut just for really running the business of the Airbnb.
So like if I had one month and I was desperately back against the wall, had to make money in real. That’s probably what I’d do. I’d probably start calling people that are on Airbnb already, or people who I think have like whatever. I’d just start calling people who’s got something, right? You probably only need to get like two houses or two contracts, and that could probably get you to 10 K in a month.
[00:07:43] Dan: Okay, so your brain went a different direction because in both of your examples, you don’t actually own any. No. So you’re in real estate in the sense that you’re, I’m using real estate to make money. You’re like almost like a property manager. Like you could go a property manager and make money managing other people’s properties that could make
[00:07:59] Anthony: you [00:08:00] money.
I do not believe that’s the same thing. I do not think that it is super possible to own a property. Like to go and buy a property and profit 10 K in a month, especially in the first month. Like that would take Outrageous. Don’t think it’s either like, ay would be closes mean it’s a huge deal. Like yeah, something with a fee.
But that’s not even making money off the real estate still, right? Like the real estate isn’t what made you the money there. Yeah, it was the fee for all the activities around it. So like, if you’re waiting to try and get like, appreciation or actual cash flow coming from a bus, a building, I don’t think you’re gonna get it in month one.
No, you’re
[00:08:32] Dan: not. So I don wanna make sure that’s very clear for all you listeners, like, I don’t care who you’re listening to, what they’re saying on the, on their, on their channel. Like you cannot. , It’s, it’s not a quick business to make money in. Uh, like the stuff you just described, that’s, those are little businesses.
They’re not like owning property. Right. That’s not where the money’s coming from. So it’s, I wouldn’t wanna do either of those things, to be perfectly honest with you. Airbnb? Yeah. Or the wholesale. I don’t
[00:08:58] Anthony: wanna be a wholesaler. [00:09:00] I have no interest in that. I think an Airbnb arbitrage company is actually kind of interesting.
It kind of plays into some skill sets and systems that I’ve built in the past. So I don’t think it’d be a super hard one to get going. I just don’t think I want. I think in the grand scheme of things, it’d be a high cash cash flow business, but I think it’d be very fragile. And vulnerable to legislation, to fluctuations of owners.
And I don’t want to build something that, I don’t wanna build any business where the upside is in the cash flow. I wanna own things. Well, I wanna own things that compound and get way more valuable over time. Yeah. And Airbnb arbitrage company isn’t gonna do that. Nope. So, All right, so that was it. We speed run.
Speed. Ran it. That was my, I dunno, Sonic Hedgehog. Do, do? What’s the sound with the coins when he gets to coins? Ding, ding,
[00:09:46] Dan: ding, ding. I don’t know. Um,
[00:09:49] Anthony: Reed’s laughing at it. He knows, Reid
[00:09:51] Dan: knows.
[00:09:52] Anthony: He’s like, He gotta get you a mic. He’s like, he’s like, I don’t know what the sound is, but it’s not that Whatever you guys are doing with your mouths right now is not the sound.
So that’s gonna do it for [00:10:00] us. Uh, ladies and gentlemen, we appreciate you as always for being here. You are seriously the best listeners I have ever heard. Seriously. I, I didn’t hear repeat powder of you. Not even so cool. Did you hear anybody? Just, it’s like they’re, it’s like they’re not even. Almost wait, are you there?
Hello. Okay. If you’re still there, if you haven’t tuned us out yet, then go leave a review real quickly, uh, on iTunes so that we know you exist or go over to YouTube, check out the channel and drop a comment down below. That’s the only way we know that you’re there. I’m starting to, I’m starting to wonder if maybe this entire time, over the last 301 episodes, we’ve just been talking to dead Air.
Maybe so are we crazy? As crazy possible. Are you out there? If so, we’ll leave a review and we’ll catch you guys.
