Digital Social Hour
How I Rebounded After Losing $1.7M: My Real Estate Journey | Fareed Abedini DSH #858
Tue, 05 Nov 2024 13:00:00 -0000
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Ready to dive deep into the rollercoaster world of real estate? 🎢 Join Sean Kelly on the Digital Social Hour as he chats with Fareed Abedini, a young entrepreneur who rebounded after losing $1.7M! 😱 Discover how Fared turned adversity into opportunity, leveraging creativity and business credit to build an impressive real estate portfolio in Texas. From wholesaling to Airbnb, his journey is packed with valuable insights and eye-opening stories. Don't miss out—tune in now and join the conversation! 🗣️ Watch now and subscribe for more insider secrets. 📺 Hit that subscribe button and stay tuned for more exciting stories and tips on the Digital Social Hour with Sean Kelly! 🚀 #financialeducation #airbnbarbitrage #propertymanagement #realestatesyndication #creditrepair CHAPTERS: 00:00 - Intro 00:30 - Fareed Abedini Real Estate Journey 01:18 - Starting Capital for Real Estate 03:56 - Using Business Credit for Property Investment 05:37 - Bankruptcy Risks in Real Estate 06:39 - Grant Cardone's Real Estate Strategies 07:00 - Dave Ramsey vs Farid Abedini 08:13 - Real Estate Market Crash Concerns 10:37 - Daniel's Entry into Real Estate 16:47 - Real Estate Guru Scams Exposed 17:55 - College Value and Parental Guidance 19:38 - Leaving the Parental Home 23:17 - Securing $50,000 in Business Credit 26:35 - Future Plans and Opportunities APPLY TO BE ON THE PODCAST: https://www.digitalsocialhour.com/application BUSINESS INQUIRIES/SPONSORS: [email protected] GUEST: Fareed Abedini https://www.instagram.com/reedabedini/ LISTEN ON: Apple Podcasts: https://podcasts.apple.com/us/podcast/digital-social-hour/id1676846015 Spotify: https://open.spotify.com/show/5Jn7LXarRlI8Hc0GtTn759 Sean Kelly Instagram: https://www.instagram.com/seanmikekelly/ Learn more about your ad choices. Visit podcastchoices.com/adchoices
Chapter 1: What was Fareed Abedini's turning point in real estate?
when I lost all that money, put me into a position and my back was against the wall and I was like, all right, what the hell do I do now? I always knew I wanted to get into real estate. I had no money to do so, so it forced me to be creative. That's why I fricking love real estate. You can be so creative when it comes to doing real estate transactions.
If I throw my money into a real estate property, it's something tangible that I can touch 10, 20, 50 years from now. All right, guys, we're talking real estate today. We got Farid Abedini here today. Thanks for coming out to Vegas, man. Yeah, appreciate you having me, bro. Yeah, we were just talking about it. You just moved to Dallas.
Yeah, I just moved to Dallas from D.C., so it's been a big jump, and I love moving around, bro. I was born and raised in Maryland, moved, switched cities to D.C., and I'm from D.C. now to Dallas, starting from scratch. Nice. I know we're going to dive into Airbnb, but where are a majority of your properties at? In Texas.
Chapter 2: How did Fareed leverage business credit for real estate?
Chapter 3: What are the risks of bankruptcy in real estate?
Yeah, we were just talking about it. You just moved to Dallas. Yeah, I just moved to Dallas from D.C., so it's been a big jump, and I love moving around, bro. I was born and raised in Maryland, moved, switched cities to D.C., and I'm from D.C. now to Dallas, starting from scratch.
Chapter 4: What are the key differences between Dave Ramsey and Fareed's strategies?
Nice. I know we're going to dive into Airbnb, but where are a majority of your properties at? In Texas. Oh, in Dallas?
Yeah, all over Texas. San Antonio, Houston, Dallas, Austin. Yeah, a bunch of my properties are in Texas. That was like the primary choice of me moving out is because I want to stay close to all of my properties. So that's why I moved to Texas because I have a bunch of properties around that area. Got it. And did you have a ton of money to start up with Airbnb?
No, dude, I was just another first-generation kid who came from a family that doesn't even know what entrepreneurship is. My mom was a schoolteacher. My dad was a taxi driver. And I was just forced to just figure it out myself. And then I hit some rough patches. I lost it all, went pretty much bankrupt like two or three times. And then now I got into real estate.
And it's been fucking amazing ever since. Wow. So you went bankrupt twice? Yeah. Holy crap. And you're young. Yeah, I know. I'm 24, dude. I lost it all, bro. I made close to like $1.7 million in the stock market in 2020 when it dipped. Were you shorting options and stuff?
Yeah, I was shorting options, all that GameStop, all that crap, right? Made a shit ton of money. Obviously didn't know what the fuck I was doing, so I lost it all. And then I hit, like, rock bottom depression for a very long time after that. And then I was like, gosh, shit, like, what do I do?
Got into real estate, started wholesaling properties, pretty much just locking up deals that I didn't even own. And I was just reselling them to investors and pocketing the difference. So... I did that for a while, and then I learned about business credit and business funding and how you can leverage the bank's money. Literally, it's the craziest shit ever.
If you're 18 years old, you live in the U.S., open up an LLC, you can get $50,000 of business credit on a business credit card instantly. Take that...
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Chapter 5: How does Fareed manage his real estate portfolio?
Chapter 6: What lessons did Fareed learn from losing $1.7 million?
No, dude, I was just another first-generation kid who came from a family that doesn't even know what entrepreneurship is. My mom was a schoolteacher. My dad was a taxi driver. And I was just forced to just figure it out myself. And then I hit some rough patches. I lost it all, went pretty much bankrupt like two or three times. And then now I got into real estate.
And it's been fucking amazing ever since. Wow. So you went bankrupt twice? Yeah. Holy crap. And you're young. Yeah, I know. I'm 24, dude. I lost it all, bro. I made close to like $1.7 million in the stock market in 2020 when it dipped. Were you shorting options and stuff?
Yeah, I was shorting options, all that GameStop, all that crap, right? Made a shit ton of money. Obviously didn't know what the fuck I was doing, so I lost it all. And then I hit, like, rock bottom depression for a very long time after that. And then I was like, gosh, shit, like, what do I do?
Got into real estate, started wholesaling properties, pretty much just locking up deals that I didn't even own. And I was just reselling them to investors and pocketing the difference. So... I did that for a while, and then I learned about business credit and business funding and how you can leverage the bank's money. Literally, it's the craziest shit ever.
If you're 18 years old, you live in the U.S., open up an LLC, you can get $50,000 of business credit on a business credit card instantly. Take that...
replicate it buy real estate properties or buy airbnb properties with it and now you're using other people's money like the bank's money to cash flow right started learning about that got into you know airbnb and it's been history ever since dude the business credit game is nuts it is you get more than that yeah i got 200 because i had two companies so you could get like 50 to 100 for each llc depending on the revenue and stuff yeah 200k at zero percent interest
Yeah, bro. You can legally take out $150,000 of 0% interest business funding per Social Security. Wow. And so if you have an LLC, it all goes to your LLC. So it doesn't affect your personal credit. It doesn't report to your personal credit. That's why I don't do anything in my personal name, bro. There's just no freaking reason to. Mm-hmm.
So I get the LLCs that protect me against any sort of legal financial calamity if anyone trips, falls, breaks a leg on any of my properties. And then with that LLC, now I can get business credit cards and get lines of credit and use that to invest into real estate. So you got that 50K and you immediately put it into properties?
Yeah, so the first $50,000 business credit card I got, I got like two properties from that in Maryland where I grew up. And then it started to click because I didn't have any money. I was like, how am I going to do this? And I was like, I learned about business credit. I invested. I took that entire $50,000 business credit card. I really didn't have a business plan at that point.
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Chapter 7: How can one prepare for a potential real estate market crash?
Will the, you know, real estate market hit a dip soon? Will we go into another recession? Possibly, yeah. I mean, that's just how the general cycle of, you know, our market, of our economic market works. But you just got to be ready for it. Yeah, it probably happens four or five times in our lifetime. We just got to prepare. Right. It's already happened twice, I think, in our lifetime so far.
Yeah, the last dip was in 2020. Yeah, 2020 and 08. Yeah, if you position yourself correctly, you can make a shit ton of money from those types of dips. I mean, I made $1.7 million trading stocks in 2020 when we went into the greatest recession in a while. I mean, granted, I lost it all, but still, you position yourself correctly, you can make a shit ton of money.
Yeah, and you probably barely put up anything to make that $1.7 million. Yeah, I put up like $25,000. That's it? I have screenshots. I literally have screenshots of me starting with $25,000 in my bank account and scaling my stock portfolio all the way up to $1.7 million. Damn, did you cash out any of it? No. You risked it all?
I was high off money, bro. I was a kid. I was 20 years old, and I didn't know what the fuck I was doing. And I was like, yeah, this is chill. I was on the top of the world. I was high off life. I was about to drop out of college. And I'm glad for it because that adversity that I got hit by when I lost all that money put me into a position, and my back was against the wall.
And I was like, all right, what the hell do I do now? And I always knew I wanted to get into real estate. And now I had no money to do so. So it forced me to be creative. And that's why I freaking love real estate is because you can be so creative when it comes to doing real estate transactions. Like one real estate property could give you five or six exit strategies.
You could fix and flip a property. You could bur a property, which is buying and renovating it. You can buy and hold a property. You can buy a property, Airbnb it out. You could buy a property, completely destroy it, and then build a building on it. There's so many different strategies you can take. That's what got me into this space is because I understood like, okay, well...
It's not just like stocks, you know, let me throw my money into a stock, right? And if it goes up, great. If it goes down, I'm fucked. No, like if I throw my money into a real estate property, it's something tangible that I can touch 10, 20, 50 years from now. The address is never going anywhere. The land's worth, you know, some value.
And I have multiple exit strategies on what to do with that property. Absolutely. So how many properties you got now? I've got 19 real estate properties. The latest acquisition I had was a $560,000 two-bedroom condo that I purchased in Washington, D.C. Nice.
I was going to actually live in D.C., and then before I decided to move to Dallas, I was going to stay there. I bought the condo for myself under my personal name. I got a mortgage I put down like $120,000. And yeah, then I decided to move to Dallas and I was like, fuck it. I don't want to live in D.C. anymore. So I transferred the asset to my LLC and now I've rented it on Airbnb.
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Chapter 8: What strategies can enhance Airbnb profitability?
I'd say most people are not even running numbers when they get an Airbnb, right? Yeah, they're not. They just buy it and then try to list it. Yeah, in 2020, I would literally, and I was one of these people, I would literally just buy a property or sign a lease on an Airbnb and just throw it up on Airbnb and it would get like fully booked out. Wow.
And nowadays, you can't just close your eyes and get into real estate. It's obviously gotten a little bit more difficult to find and source out a good deal. So just got to be aware of the market trends and whatnot. Yeah. Was there any mentors or books that really guided you through this?
Yeah, I used to read a lot of fucking books, bro. And I'll be honest, like now I don't. Now I don't read any books. I don't watch videos. I don't do any of that crap because like I'm a visual person. I have to learn visually. Me, my learning process is being here with my mentor, with someone in the actual mud and going through trial and error and going through experience.
Like I can't just open up a textbook and stay in a classroom and learn how to run a business.
that's why i've never been really you know good at school or anything like that yeah i feel that no i'm the same way to be honest yeah that's why i don't film these over zoom yeah always in person yeah fuck zoom fuck online everything yeah i sucked at school bro and being asian that was not a good mix you know how it is right yeah i did not fit in with those asian nerds man god damn school was so boring yeah now i love learning but it just shit i care about
Yeah. It's like, bro, you're not, you know, it's like when you, you know, you could be in a classroom and learn how to drive a car. Right. And like watch all these videos and take all these tests. But you're not going to learn how to truly operate a vehicle unless you're in the driver's seat with your foot on the gas. Facts. Right. And it's the same thing in business is like.
You could have as much gas in the tank. You could have a mentor sitting beside you in the passenger seat with Google Maps open. But if you're not in the vehicle, in the driver's seat, putting your foot on the gas, brother, you're not going anywhere. You're fucked.
So at the end of the day, you have to be the person to be able to take action and put yourself into the mud and really roll up your sleeves and get down to it. Yeah. There's a lot of real estate Airbnb gurus on social media. Does that make it harder for you?
No, it actually makes it easier. It's really unfortunate, but 60% to 70% of my students get scammed before they actually find people like me who help them. There's some big-name guys out there who've done some shady stuff. which I won't name because I'm not that type of person to talk bad about everyone.
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