MFREE 114 Full Episode with VINCENT VILLANI : Can You Build Real Wealth Without Owning Real Estate?

In this episode of the Multifamily Real Estate Experiment podcast, host Shalon Hutchinson, known as Hutch the Marine Investor, delves into an innovative real estate strategy with guest Vince Villiani. Vince has mastered the art of building a six-figure Airbnb business without owning property by leveraging rental arbitrage and short-term rental management. He shares his journey from traditional real estate investing to discovering high-cash-flow strategies that don't require substantial capital. Vince explains his five-step system for finding profitable properties, securing zero-interest funding for furnishing, and automating the business to create financial freedom. The episode also covers the importance of decisiveness, mitigating risks, and creating a sustainable business model. Vince offers an exclusive guide and consultation for podcast listeners interested in starting their own Airbnb venture.

00:00 Introduction and Episode Overview

00:27 Guest Introduction: Vince Villiani's Airbnb Success

03:24 Vince's Real Estate Journey and Challenges

04:52 The Concept of Airbnb Arbitrage

07:55 Scaling and Automating the Airbnb Business

10:01 Finding Ideal Properties for Airbnb Arbitrage

15:30 Steps to Launching and Managing Airbnbs

23:38 A Yacht Dinner Revelation

24:02 Mindset Shifts in Financing

24:37 Airbnb Financing Strategies

26:09 Assisting Busy Professionals

27:39 The Importance of Time Investment

31:27 Mitigating Risks in Airbnb Investments

33:37 Rapid Fire Round: Fun and Opportunities

35:20 Key Communication Skills for Entrepreneurs

37:55 The Power of Decisiveness

39:02 Defining Success and Final Thoughts

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Thank you to all of our listeners!!! We would love to hear from you!!!

Email me at:
hutch@hsquaredcapital.com

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www.hsquaredcapital.com

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Transcript

Hutch The Marine Investor: 0:00

Wah Gwan all you multifamily enthusiast. Welcome to another episode of the Multifamily Real Estate Experiment podcast. I'm your host, Shalon Hutchinson, anything in real estate. You know me as Hutch, the Marine Investor. Today we have a unique episode. We are going to explore the principle system and, experiment of, real estate ownership and maybe sometime, maybe not really ownership, but borrowing. It's gonna create some income to where you can own your time, your financial freedom, and a bunch of different things, right? So today's guest has cracked the code that most people in real estate overlook from time to time. See, Vince Villiani has built six figure Airbnb business, not by owning properties, but by controlling and automating them. Easy helping everyday people built$10,000 a month Airbnb business without actually buying a property. And this, that is something unique. So we are open to really dissect that today. And if, imagine if you're able to scale from one to 10 units, on the 12 months and even secure zero interest funding in getting started. Vince is the founder of Airpronoure and is Five Step automation system has been helping professionals replace their corporate income while still working their nine to five. Vince, I want to welcome you to this podcast, brother. I know it's gonna be transformational.

Vincent Villiani: 1:20

Hutch amazing to be on here. Really appreciate it. As a matter of fact, that whole intro pretty much just did all the work for me. So we can chat about anything else now.

Hutch The Marine Investor: 1:28

Yeah, let's lay the groundwork brother. so before get, go, get into the mechanics of, how you do what you do and how you help people and listen to this. If you're a service member, it's still on active duty, or you just retired, trying to figure out how to bridge the gap between your retirement, your active duty pay, and your retirement salary. Look, this might be a play for you, so really pay attention. However, before we get into it, Vince, do you have a favorite real estate quote or mantra that drives you?

Vincent Villiani: 1:53

Hutch, that's a great question and I wanted to prepare one leading up to this conversation, and then as we're talking, a different one came to mind. So there are a lot of mindset and mantras that I think about all the time, but the But specific to real estate. Specific to real estate. One quote that I remember hearing when I was very young, when I was in high school, I heard it in either in a book or a podcast or something of the sort. And ever since I heard this quote. It always pops in my mind and it was a quote from Warren Buffet and the Warren Buffet quote is, if you do not figure out a way to generate income while you sleep will work until you die. And for whatever reason I heard that as a young kid and it just continued to infect my mind throughout the rest of my life. And it was, it was always a reminder that we can always figure out a way to make money, but unless you figure out a way that to generate income. To the point where it's on autopilot, you will always be trading your time for that income. So that was a mantra that always, paralleled anything I did in the world of real estate and really just business in general.

Hutch The Marine Investor: 2:58

Oh man. Which segue us right. Directly into what we want to talk about today. And I want to, capture your journey and the goal some of these podcast episode. I like to talk to people to let them know that. They and us are not that different. And a lot of times we are just not exposed yet to information that will transform the things that we know we are capable of doing. I want to hear a little bit about your journey, Vince, and how you got to the place of where you got to right now. You talk about the court that transformed you. I want to hear how do you implement that into what you've done and how did that transform your thinking and the actions that you have taken, to, to where now you are, you have build your own port portfolio. But now you're also helping people. Let's talk about a journey.

Vincent Villiani: 3:45

yeah. So it's a perfect segue into this business model and this method of real estate. Really quick, I do wanna just say Hutch. Yeah. I love with what you've done, and I love what you've built here. I know this takes a lot of work. So guys, if you're listening, please do Hutch a favor on whatever podcast platform you're listening on, go leave a positive review, five star review. I already left one on Apple for you. And I encourage everyone else to come join us. Okay. and appreciate your military service as well. So going back to what I've done in Airbnb, with a business partner as well. I've done this with partners. I have not done this alone, but you know how, like Hutch, you know how, especially military veterans, but even the average nine to five person, they're looking to break into real estate. They're looking to start a real estate portfolio. And what ends up happening most of the time is they shell out. Their life savings to buy a property, an investment property, which is a tremendous investment, but it doesn't make much cashflow at all to actually make any sort of impact on their lifestyle. And then they can't scale. They can't grow from there because they've just utilized all the capital. You know what I mean? Yes sir. so going back to the original mantra I talked about generate income while you sleep. What ended up happening for me is I, found this method of, of investing in building a business in real estate and leveraging properties through Airbnb that allows you to generate very high cash flows without needing to spend all that capital. And then that's when we pivoted to teach people how to do this.'cause we recognized this is a really powerful vehicle. But it wasn't always like that. So to go back to your question, which is like, how did I get here? I started. In traditional real estate investing. I, I listened to BiggerPockets in college and in my beginning, corporate career and whatnot, and I was like, all right, real estate's the answer, right? Real estate's the answer to freedom. So I pulled together all my savings. I bought a multifamily property in my mid-twenties, and I was like, all right, this is it, baby. I'm gonna just, it's gonna compound from here. And before you know it. I'm gonna have all the wealth and the freedom in the world. And what ended up happening, of course, was reality smacked me in the face and the property. Even though it cash flowed on paper, it was a disaster. I had bad tenants. I had a mold issue, rodent issue, roach issue. I just had constant repair after constant repair. And what ended up happening was the light bulb went off for me, which was like, okay. All this cash flow that I'm making, it's just getting dumped right back into the property. I'm not actually making any money, and even though this is a really great long-term investment for me, if I want the freedom now to get back my time and then make. More real estate purchases. I need to get more income coming in. Now I, what I don't need is a big piggy bank, which is like a real estate investment property. What I need is figure out how to create a scalable method of getting 5, 10,$20,000 per month coming in, in profit, and if I can solve that problem. Then I can solve the buying real estate problem. You get what I mean? Yes, sir. So that's when we learned my business partner, his name's Adam, he came to me around this time and he's Hey, I heard about this concept called arbitrage. Where instead of us buying properties, we rent them, we find available properties to lease and we lease those properties. Of course, with the landlord's permission. And we then run them as Airbnbs, as short-term rentals. And that would allow us to profit the difference every single month over rent and expenses. So I said, you know what, Adam? Let's give this a try. I think this sounds cool. At the worst case scenario, this will be a really cool side hustle for us, and we just committed to it. We hit the ground running. We contacted landlord after landlord, and before you know it. By the end of the year, we had 20 properties live, about 21 properties live using this method, and it was Airbnb's a very high revenue business model. We were literally producing, 500 to 700 grand, in yearly revenue just from this first year of launching Airbnbs. And we're like, okay, this is cool because. we're not capped in how quickly we can scale. We just need to sign another lease and we need to get the property up and running. And really from there, you can grow a business in a portfolio. But going back to the Warren Buffet thing. The beauty of this model Hutch is not just so much the high revenue nature of it. It's also that Airbnb is a, it's a business. It's like your own mini hospitality business. And the cool thing about that is you can plug in software tools, you can plug in people to do those things, which actually takes you out of. The day-to-day. A lot more and you can focus more just on the, I wanna get more properties side. So that's really how we ended up in this boat. And from here we've been able to grow that portfolio as well as grow a company that teaches, nine to fives and even military folks how to launch their first several Airbnbs without having to utilize capital and generate their first five to$10,000 per month.

Hutch The Marine Investor: 8:41

Man, that is, that's super exciting stuff, man. especially generating over 700 k in, in an annual revenue, the first year. That is some, that, those are some impressive numbers, to go to your points, a lot of us, I, you've listened to BiggerPockets, I've listened to BiggerPockets when it was coming up as well, and. A lot of folks who are getting into that, they're looking for, a hundred or$200, per month in, in cash flow per unit. But to your point, if the AC goes out right, that's probably a good anywhere between 7 to 12 grand depends on the size of the house, right? And that could be all of your revenue for that entire year. So you, you're left with, a cashflow of, zero sometime in ne in negatives, but you're talking about a whole different level. You're talking about maximizing the income for the property, through Airbnb arbitrage. Now let's talk about this. You had this great idea and then. There's, I wouldn't say, I would say there's not a lot of shortage of rental. You can find rental properties in every single, city that you move into. Let's talk about that. How do you identify a property that is ideal? Do you start at the city level talk, talking about the policies or you just talking about the property that is best suited? Like how do you find, where do you start as an investor looking to do Airbnb arbitrage.

Vincent Villiani: 10:01

This is a great question, and it's a very important question because the, there's a lot of, there's a lot of hysteria around Airbnb that it's getting saturated. and it is right. Just like with anything else that works and is popularized, like wholesaling, for example, right? Wholesaling works. Wholesaling's great. Now it's super saturated because everybody knows that. Same with Airbnb. But I like to say that the saturation is an advantage because all saturation means hutch. Is that the standard has been raised, right? That means that you can't just dabble in it anymore. If you're going to do it, you've gotta do it well, and one of the biggest components of that is finding A, doing proper analysis and finding a good property that will solve 99% of your problems is you find a good property, right? So with regards to like how to identify good properties for this, I wanna take a really quick step back and just reiterate there's actually two methods to launching Airbnbs by leveraging properties that we utilized and that anyone can do, especially folks who are on the military side. as a matter of fact, one of my favorite stories inside our community are two active duty military folks. Tiara and Shaheem, married Couple. They have kids. They're in the Texas area, and they leverage these models to land a couple of rentals in a very short timeframe. Now they're generating anywhere from 4 to 6k per month in profit, which is awesome. It's really cool. Nice.

Speaker 3: 11:21

Yeah.

Vincent Villiani: 11:22

So two methods, right? The first is arbitrage, which is. I find this property, I rent it, I furnish it, and I list it on Airbnb, right? And then I profit the difference between rent and expenses every month. And the upside, the pro of this is the cashflow potentials really high because anything above rent and cleaning and utilities is yours,

Speaker 3: 11:44

right?

Vincent Villiani: 11:45

The downside is you have to furnish it, right? There's an expense there. Now, I don't furnish any of that with my own money. We can talk more about that. No one else in our community does that. We really just finance the furniture. But then the other method though, which is an even lower barrier to entry, is what's known as co-hosting, right? Which is essentially where you find a property for rent. It's furnished or you convince the property owner to furnish it for you, and you basically list it as a short-term rental for them, and then you collect a percentage. It's almost like a property management deal. And the, again, the pro of that is you have zero expenses, no lease, no risk, nothing, and you profit on day one. The downside is you just make less profit than you would with arbitrage. Gotcha. So now why am I mentioning both of these? Is because the concept of finding a good property for both of these is essentially the same, right? Which is when I look at a market, right? Let's say, you live in Hawaii, right? Husch. So if I'm in Hawaii, I might consider, the very first thing I'm gonna look at are regulations. Okay? Oh, yeah. Now there everybody gets really overwhelmed by regulations and I'm just gonna make it as simple as I can. This is not legal advice of course, but, regulations, most markets it's either a, you can Airbnb or you can't. And the you can'ts are just a hard no, we're not gonna target that market. Now the you cans usually are a you can, but you might need a permit or you might need to do it. With the owner listed as the main host or something of the sort, and that will dictate which of those two models you will proceed with from there. But the good news is you can usually do either or in 99 mark, 99% of markets make sense. So regulations first, and then after regulations without getting too far down the rabbit hole of like numbers and analysis and do using data to do all this other stuff. It's a really simple concept touch, which is like. In every market, there are people that are winning In every market, there are people that are successful. We simply use data. We use tools to look at the revenue, and we figure out who's winning. We understand why. Then we just do the same damn thing, So that's pretty much it in a nutshell. It's like we look at the guys who are making a hundred thousand dollars a year with their Airbnbs, we understand what the renovation style is, where they're located, why they're successful, and then we try to mimic that on the rental market. And it's no more complicated than that. At the end of the day.

Hutch The Marine Investor: 14:16

I like that, that you talk about, I identifying some of the policies, right? Yes. Yes, you can, but, because I think regulation is super important to navigate. And some of them could be very cumbersome too. For example, here in Hawaii. Because we have such a huge, tourism population, hotel is a good revenue for the community. Or for the Hawaiian Islands. Airbnb is restricted in most areas. Additionally, when you start talking about the housing shortages in Hawaii, because we only have so much land, and most of it, especially in Oahu, is already been developed. You know what I mean? So the price of housing continuously go up. So it becomes, even though I'm business minded. When you start thinking about the local populace and the government's ability to ensure that things remain somewhat affordable to the local populace so they don't have to move off island. Ensuring that they can somewhat control the amount of investors who are buying single family residential homes. I think it's, I think it's a good thing for the populace. Not a good thing for business owners. You know what I mean? So it's good to understand. Yes, you can, that's a huge things. You cover some important topic, important points of, how to actually do this arbitrage, where you talk about, the arbitrage and the co-hosting, right? Which one of those models, let's talk about the, your five steps, right? as long as you're not proprietary, there's five steps and how that applies to either of those, tactics.

Vincent Villiani: 15:40

Yeah, so the five steps are more so like a, The five steps are specific to actually identifying properties and markets, right? but I'll actually even simplify it even more for you, which is really what we want to do, are acquire, I'll boil it down to three steps actually, which is acquire good rentals, right? List them professionally, and then automate the business, right? these are really the three main things that you need to do. In order to really create like a very scalable portfolio with this, that kind of runs itself on autopilot. And I kid you not, and I'm not saying this like in a boastful way, Hutch, but like at this point our portfolio is now 38 units and. Generating just shy of about$2 million a year in revenue. And it's like I tap into it a couple hours a week. Like genuinely. Like really? Yeah. And this is really the process, right? So it's like identifying the properties and like landing the deals is step one. And that's what we talked about, which is like use data to determine what properties would be the most successful and then reach out to those property owners and pitch their, pitch your services, which is Hey. I'm Vince. I run a short-term rental management company. I'd like to lease your property and by me leasing this property and listing it as a short-term rental hutch, what this means for you as a landlord is you sit on your butt, you collect rent. There's no property management fee. I'm gonna pay on time every single month, and I'm the last tenant you're ever gonna have. And then most landlords are like, that's pretty great. Yeah. So we do that, and then you acquire the deal. Boom. That's step one. So now step two is like, how do we get this thing live and how do I do it without using any of my own money, right? So we'll lease the property. And then we need to furnish it. So let's say it's$10,000 worth of furniture hutch. Again, I don't wanna have to spend that outta pocket if I don't have to, right? So what we do and what we've done and what we teach is beautiful hack. I guess you can call it a hack in the United States, is if you create an LLC and you have decent business credit, or I'm sorry, you have decent personal credit, you can go to the bank and apply for a business credit card for your business, right? This is not a loan. Okay. This is not like something that you have to put together a business proposal for. You simply go to the bank with your new business. You say, my business is projected to produce this much revenue, X, Y, Z, boom. You apply for a credit card, literally the same type of credit card that you apply for with your personal name, just under your business. And boom, the banks will typically incentivize you because they want to earn your business. They know that you're a business, so they give you. Business. They give you a credit card with 0% interest on it for a year, typically. Now, let's say you do that and you get approved for 20 k. That's two Airbnbs. You could furnish with that right out of the gate that are now generating you anywhere from one to$3,000 a month in cashflow. It's like it's a great tool and you didn't have to pay out of pocket for it, so you get them live. You take good photos, you list them nicely. You make sure that your listing looks good and professional, and you do it the right way. And then that takes us to step three, which is okay, you're live. How do we take ourselves out of the day to day? And the beautiful thing is, in today's world, Airbnb is so popular that there are so many small businesses and companies that have created tools for hosts to not have to deal with things. So I'll give you a few examples. For cleaners, for example, that's one of your biggest day-to-day operations. There are tools out there. One, a popular one. It's called Turno, T-U-R-N-O, right? And you can source cleaners on there. You can connect it and pair it. To your Airbnb listing, and it will automatically take care of notifying them of bookings. They have to fill out checklists every time they do a clean, and it's basically like you, it takes you out of 90% of that. And then if you wanna have something to something put in place to, to manage guests and like day-to-day interactions with guests, you can hire a virtual assistant, a real person overseas for pennies on the dollar. To take care of that day-to-day interaction for you. So it's There's just a few minor things you need to plug in and you really take yourself out of a majority of the day-to-day operations. And to be honest, Hutch, like if you have only, if you have five Airbnbs or less, more often than not, like it's not even that crazy to manage even without all those tools, right? It's just like a very like routine thing. It's like guest clean, occasional handyman issue, clean. It's it's not that, that it's not rocket science. So once you have those three things in place. You could just rinse and repeat, and then grow this to where you wanna be. So the cool thing is like from a military, like a military vet perspective, right? You have access to the, the VA loan. Which is a beautiful way to not have, you don't need a lot of capital. And you could buy your first investment property, right? And then you get that first investment property. So you can either turn that into a short term rental or. You can now figure out a way. I don't want to have to spend any more capital. I've already done used the VA loan. I got to keep the money in my pocket. I still don't want to touch this money in my pocket. What else can I do? So then you can now leverage your additional time, build this portfolio that's scalable, you get extra cash flow, and then you can funnel that into your next rental project. So it's a cool way to like. Get the best of both worlds, which is you've got the VA loan, you can actually get the equity now, get the cash flow, build the cash flow, and then work on your next equity play. Make sense?

Hutch The Marine Investor: 20:53

totally makes sense, man. Totally makes sense. Now I like that I. A lot of folks, we talk about good debts and bad debts, right? So you getting a, you getting a business credit card. Now, lemme ask you this. When you get to Airbnb, do you put each property under its own LLC? Because I think a lot of folks are concerned about some of the liabilities that comes with, owning. owning properties, right? And we want to segregate as much as possible, right? So each can stand on their own. That's what we do in the multifamily space, right? Where each multifamily properties that we purchase, has its own LLC, right? The bank accounts or the building management, all the good stuff, right? So how is that factored into the Airbnb model, whether you do an arbitrage or cohost?

Vincent Villiani: 21:34

Good question. I, personally, don't think you need to create a new LLC for every unit that you arbitrage. Okay. We have one like overarching LLC just for the short term rental company itself. and then from there you lease the properties individually Gotcha. Under the LLC. And then, like in, on top of that, like you do have a. A quite a decent amount of coverage on the platform itself. Like air cover covers you for, I think now it's$2 million of liability and damages every reservation. Gotcha. Reservation. So that, that, we lean on that a lot if needed, but honestly, it's There isn't a tremendous amount there at play, at least from my experience and my perspective. Gotcha. So we don't create individual LC for everything. Purchasing a property, in my opinion is a little bit different. And I do recommend what you said, which is if I'm gonna get into these big syndications or like these large, multimillion dollar properties, like I would create an entity for each one.

Hutch The Marine Investor: 22:24

Yeah, that, that makes sense. You already have the layers of protection built in, with the strategy going through Airbnb. Okay. Got you.

Vincent Villiani: 22:29

Yeah, and one quick thought, I this popped in my head recently about the debt thing, right? Because everybody does get very intimidated by debt, right? And I was that way as well. I was always like, no, I never wanna finance anything. I always wanna buy stuff, cash, this and that, yada. And there were two mindset shifts I had, right? Two mindset shifts I had on this. There was the first is the fact that. You should always be striving to keep all of the capital that you have in your pocket, right? So you can deploy it into investments. And it is funny, I'll never forget this. There was a mastermind that I attended with this guy. This guy who is a, he's worth, over a hundred whatever,$20 million, right? And Mastermind I attended and we're sitting on his 94 foot yacht. And, I'm chatting with all these people like over dinner and things like that. And I heard him talk about when he. he sold one of his businesses for 110 million and he said, when I bought my house in Miami, it was like a$30 million house, right? He said, I financed it, this, and that. The monthly payments are this. And I like stupidly asked this question. I like, I was like, Hey man, why didn't you just buy a cash like you had You sold your business for 110 million. Like, why didn't you just buy a cash? And he goes, I'm sitting on his yacht across his table at dinner that he's providing us. And he goes, dude, I could tell you don't know effing shit about money. And I'm like, and I'm like, everybody's looking at me. And I'm like, like sitting there with my tail between my legs. And I'm like, okay. and what he meant by that was. You would, I would never take the opportunity to waste all, to risk all of my savings to buy something in cash. So that was the first mindset shift. But the other mindset shift was this, I, some people get into the world at Airbnb, they ask us for help and they get really nervous about finances, and I'm like, do you own a house? They're like, yes. Okay. I'm like, so you bought a house, that you live in? Yes. Okay. How much was your house? 600 grand. So let me get this straight. You went to the bank, you asked for a loan for$600,000 for an interest rate of five to six to 7% for something that generates you nothing. And they sit there and I'm like, why are you okay with that? But you're afraid to finance 10 to$15,000 in furniture at 0% interest for something that's gonna generate you one to$3,000 a month in profit.

Hutch The Marine Investor: 24:45

They're not exposed. Not exposed. And it's

Vincent Villiani: 24:48

and I get it. I understand because like we're all raised Yeah. To like slap on the wrist, don't finance anything. But there's a big difference between financing a Rolex and financing a property that's gonna net you one to two grand a month in cash flow. You get what I mean? Gotcha. So percent. I actually think you should be open to it,

Hutch The Marine Investor: 25:03

Yeah. to, to your point, man, one of the things that I've learned over the years too, is borrow money at low interest rate. Long term and by income producing assets. Or in, in this case, you are putting it towards a revenue generating, business. Whether, so I've al I've also explored the, what's it called? Buy to rent. Rent to you. Those place that, that rent you furniture. What's the place called?

Vincent Villiani: 25:27

Oh, they have a lot on the mainland. I forget what they're called, but I know what you're talking about. The

Hutch The Marine Investor: 25:31

renter centers. yes. Rent to center. Yep. is that an option that a lot of your, that any of your students are using?

Vincent Villiani: 25:38

No, I'm not a fan of that. and the reason is because, the Airbnb arbitrage is a, it's a monthly cash flow game, and there's really no equity in it at all, other than I guess you could say the furniture is equity, but it's realistically it's not.

Speaker 3: 25:52

Gotcha.

Vincent Villiani: 25:53

So my point is. You wanna do anything you can to minimize your expenses and maximize your monthly cash flow, right? And the last thing I would recommend is adding on a few hundred dollars a month that depletes from that margin. You know what I mean?

Hutch The Marine Investor: 26:06

Got you. That makes sense. That makes sense, man. so let's talk about this topic, man. Replacing, folks, corporate salary while they're still working full time, let's get real for a minute. a lot of our listeners, professionals, engineers, military, veterans, small business owners, They're a discipline, in, in what they do, but they don't have a lot of time. how can someone, I think we already talk about this, we talk about actually finding a property, starting it. If they don't have. A lot of time to do this. Is this something that you assist them with, getting off the ground where they have this idea they may have the money to furnish a property or you assisting them in the process of maybe finding a property and helping get started and maybe profit share with them? How does that work?

Vincent Villiani: 26:48

Yeah. Good. Great question. first off, I don't believe in like a done for you type stuff, where it's like you pay me, and I find you a property. And the reason I don't like that is because A, would you rather learn how to fish or just have somebody give you a fish? It's Teach me how to fish'cause so I can do it again and I don't have to rely on you again. That's good. But the other thing is especially in the Airbnb space, Hutch, these properties, they fluctuate in revenue so much. They're very seasonal. Now keep in mind, before we ever decide on a property, we look at yearly data. We understand that ahead of time. Gotcha. But my point is like for me to. Pick and choose properties to give to people, and then it's like a done for you thing. It's very hard for me to give you like a specific guarantee on exactly how much that would make, and I just don't, I just don't believe in that. I don't think it's Okay. Gotcha. it's a, it's an ethical model, right? Yeah. I got, yeah. But, going back to what you said about time investment. You and I both know that any single one of these vehicles, Airbnb, multifamily investing wholesaling. Dude, you gotta make the time. You gotta make the time. yeah. If you want it, you gotta make the time. Now, I will say this, I do think, I genuinely believe Airbnb is probably one of the least time intensive models out there, and it's simply because the Airbnb model takes care of. All of the marketing for you. It's once you get the property live, you like, you get the property live and then you let the platform do its thing and then you do the things to best improve the odds of the property being good on the platform. So it really helps. And then now the landing the deals portion of it, that's gonna be the most in time intensive thing. And when you're starting out, and I would argue. If you could spend 30 minutes to an hour a day every day, right? Not just once a week, like every day for a few weeks, you can land a deal. No problem. The, I like to tell everyone the story of Adam and I when we first started out, all we did was we committed to the idea and we put a time in the calendar. We said, we're meeting at the library every day at four o'clock, and we met at four o'clock. We stayed there for an hour and we just circled around a table calling landlords. That was it. Every day now. Of course, like we went, pretty balls to the wall. Like we did that, we landed a property, we did it again. We kept, and it was just like we just didn't take the foot off the gas and not everybody's gonna do that. But my point is, you could, you can absolutely land your first three to five deals in a year if you just stay consistent with it and you make it a constant thing and you make the time. The biggest time intensive portion of this hutch is the actual setup of the property, right? Yes. It's I don't like when you actually land the deal. And you have to furnish it. Like you're gonna have to sacrifice a weekend to do it. But here's the thing, like it's one weekend and I would argue if that one weekend that you sacrificed nets you$2,000 a month in profit, that's a good weekend. I'd say that's worth it. so it's like you gotta make the time, but if you make the time, it's not, it's really not that crazy.

Hutch The Marine Investor: 29:43

Nah, I'm with you man. I'm with you. We have a property, one of our properties in Augusta, Georgia. yeah, we had a built out where it's a multiple dif multiple buildings. However, we have one building that was off to the back separate, not really back, but it was off to the side, has its own parking, and it was perfect for Airbnb. So what we did, we had a Superhost came in and took over that entire building with four units and it's. Those units was already renovated, but however, those units were the best kept unit in the entire complex. They were always clean, always maintained, and we didn't have to worry about them. They so one. They were taken care of in a daily, every couple of days they were being cleaned. And in the Superhost one, they have a reputation to protect, To ensure that they can continue to generate income and also protect their reputation. So they cleaned the place, frequently, and we as the owners, was actually making a lot more profits. It was the highest gross in, units in the, and the 101 units, complex, I really do appreciate that, man. So I can see where. It would not be a huge challenge to, to convince a owner that this is a good thing for their property. Because a lot of things that, the biggest thing that people worry about, they buy this property, they could have bought it as an investment property or they bought it as their primary home. Either way, if they bought it, they're putting a lot of, their finances into it. So there's an emotional attachment and they don't want people to ruin it, so I can see where a owner could be very. Excited that their property will be kept clean, will be properly maintained, because you have a reputation to uphold. You know what I mean? So I can definitely see a win-win situation and therefore both the investors and the property owner, let not, let's talk about this, Vince, for the next couple minutes. Sure. What's your playbook for mitigating risk? If the market change, or the property start performing?

Vincent Villiani: 31:33

Great question. Great question. Now I will say the biggest mitigator for that is proper analysis and good data. like we don't get into a deal, none of our students get into an Airbnb deal unless we know exactly how much that property's projected to make. It's, we dial it down to a t now after that point, right? There's really only two things that could go wrong. One, regulations change, right? And two is if you run. The property poorly and then it doesn't profit anymore. Yeah. And in both scenarios, I would argue still not that risky, right? First off, regulations, the government. It does not move fast. So we would see these regulations well ahead of time, but we also have the building or the property owner sign an addendum with us in addition to the lease that says, A, I'm doing short-term rentals and you're okay with it, and B, if regulations ever change this lease. We could rip it up. Gotcha. So that protects you right now on the second scenario, which is like the property stops performing. Let's just say you did a poor job with running it and it got bad review after bad review, et cetera, and now the property's not profitable. Fortunately, Hutch a lot less risky than buying a property. You have a two year lease, like a one to two year lease. Worst case scenario, you ask to exit the lease early if worst case scenario. And it's If you made a bad financial investment or decision with this, like we're talking like on the worst case scenario, you might be out 5 to 10 grand and it's granted that never happens. But even if that did, I'd rather that than be in a rental property where I'm at in the whole 500 K. it's like it's very low risk to begin with. Yes. Just'cause there's not a lot of money involved. So that's like the worst case scenario. But more often than not, I'd say it's hard for this to not work. As long as you do the proper analysis ahead of time, you trust the numbers, not your emotions.

Hutch The Marine Investor: 33:27

Yeah, no emotions. No, I like that man. I like that.

Vincent Villiani: 33:30

Yeah.

Hutch The Marine Investor: 33:30

Yeah. I appreciate that, man. Look, I gotta go do the Marine Corps thing. I wanna get into the focus round, which is we can make it as fast as possible, kinda a fire round, right? Let's do it. Vince, what do you do for fun?,

Vincent Villiani: 33:41

Oh, man. I work out, I. Make metal music, which is hilarious to a lot of people. okay. and I love reading, and traveling. That's it,

Hutch The Marine Investor: 33:52

man. Have you spoken to Spencer Hilligoss? You remind me of him.

Vincent Villiani: 33:55

No, I don't, but I'm gonna look him up now.

Hutch The Marine Investor: 33:57

Yeah, he's a good, he's a good people. He's a good man. Spencer Hilligoss, he's on. He's on LinkedIn. but he's a musician as well too. And good. Cool. Good man. Good family guy. Good business guy as well too. cool. So what was one opportunity that completely changed your career?

Vincent Villiani: 34:12

I think my very first corporate job okay. Was one of the best things that ever happened to me. I broke out. I was a, in college, I was a mess. I didn't know what I was doing. I wasn't a polished student. and I was lost, and I, by the, but just the luck of God. And being in the right place at the right time and impressing the right people. My first job outta college was a medical device sales job.

Hutch The Marine Investor: 34:33

Okay.

Vincent Villiani: 34:34

And when I was offered that job, my manager at the time said, Vince, I'm gonna change your life. And he did. And it was because. I took on so much responsibility. I felt I had a lot to prove. I had to get good at it, and I did. And I was surrounded by really great people and that was like that, that snowballed a lot of other successes later in life was by me being. A top sales rep and having to develop myself to be a top sales rep. So that was like one of the best opportunities I've ever been given. And then from there it spawned a lot of these other opportunities down the line. Yeah. So that was really what I think started my whole life transformation.

Hutch The Marine Investor: 35:09

Oh man. you are always. We supposed to be. It's crazy. That's good. E. Exactly. Iman, we talk about on this, show about, calling, property managers and calling, owners, property owners, all that good stuff, right? Yeah. what is one communication skill that every entrepreneur needs?

Vincent Villiani: 35:26

Sales. And when I say sales, I don't necessarily just mean you need to get good at closing sales. You do, right? no matter what entrepreneurial journey you need, you start sales is. Arguably the most important skill you can have. But I guess what I'm referring to specifically,

Speaker 3: 35:42

okay. In real

Vincent Villiani: 35:43

estate specifically. Especially is communicating from a perspective of what's in it for you, right? Like you should always lead the, anytime you're looking to build a partnership, you're looking to get investors, you're looking to pitch a property owner for Airbnb or whatever, find deals off market or whatever it is, the conversation should always be led with what is in it for you. Not me. And it's that's how we pitched property owners. We never said, Hey, I'm Vince, I want to Airbnb your property. It was, Hey Mr. Landlord, I'm interested in doing this and here's what this means for you. It means A, B, C, D, E, F, G. And that was like if you just like always do that, like it's hard to not get deals, honestly. I'm with you.

Hutch The Marine Investor: 36:27

Yeah. So in the Marine Corps we call it a with him.

Vincent Villiani: 36:30

What's in it for me? Radio, what's in it for me

Hutch The Marine Investor: 36:31

me? yeah. Called the with him. and that is a part of, our, of our period of instruction, the way we teach. you go through the ELOs and TLOs and a part of it is the wiffin, what's in it for me? Why should the student, or why should the marine pay attention, to this period of instruction, our hip pocket class, yeah. Yeah.

Vincent Villiani: 36:46

And you, and sorry to cut you off, but I was gonna say the easiest way to learn how to do that is you don't even have to be masterful at it. You could just start, if you just start the conversation with what do you want and let them talk, and then you know what to say, you know exactly what to say. So it's it's the easiest thing that to, to learn and develop. But you just have to be consciously aware of it.

Hutch The Marine Investor: 37:07

Yeah. we're buying a property right now. I'm a real estate agent out here and, we had a. My, my buyer wants a on off market property reach out to the current owner. They said they wanted X amount of money. I said, okay. And I talked to my buyer, let's start here. We start here and they met us significantly closer to our offer than where they want, they want to be. So knowing what works for them and make them a reasonable offer you'd be surprised. the conversation can go. so always awesome. We always leave room for negotiation, even though we was willing to pay the exact price they were offering. Oh, awesome. Awesome. Anyway, so it's a win-win because they're making a profit. We're making a profit. We buying, we're getting a good deal. So what is something you wish you understood earlier about, business and money? I got about two minutes

Vincent Villiani: 37:55

decisiveness. Okay. decisiveness is one of the most important skill. I've talked about this ad nauseum because I realized I've been a very indecisive person in my life. Indecisiveness is. The one skill, I think the one skill and thing you should be consciously aware of, no matter what you do in life, because it is the source of either the most success or the most pain. And it's, and it's so important. and I've recognized that any dark spot I've ever had in my life, dark moment was always due to me not being fully decisive on something. And the more that you're aware of that, the more you can actually put your life in the direction that you want to go. If you are aware that you're indecisive, start to seek ways to be more decisive immediately, whether it's starting small, like you go to a restaurant order in five seconds and stick to it. That's it. Yeah. Done. And it's like you start with those little things and you start to compound. But indecisiveness is something I wish I knew and was aware of as a younger person because I would've avoided some of the biggest catastrophes of my life and I would've moved a lot more quickly.

Hutch The Marine Investor: 38:57

Yeah. Make decision fast and change them slowly if you need to. Yep. Or exactly.'em slowly. Yeah, exactly. What is your definition of success?

Vincent Villiani: 39:06

Man, this changes, but I guess, yeah. Right now I think biggest definition of success for me would be you go to bed at night. Prideful of what you've done with a sound conscious conscience and. Everybody's taken care of, whether it's you're living by yourself or whether you have a family, if you're not stressing about finances, I think that's a blessing. I don't think you necessarily have to go, one Hutch I won't go down a super long rabbit hole with this'cause I know we're crunched on time. One thing I've noticed in the world of entrepreneurship is there are a lot of people that make a lot of money because they're obsessed with money. And like at the end of the day, that doesn't matter at the end of the day, like people that are only focused on money, they'll get money. It's just money. I think what's a better blessing? And Charlie, the late Charlie Kirk said this was, it's okay being rich, but it's even better to just not be poor. So I think if you're not stressing about finances, you're blessed. And I think if you're also happy and satisfied and fulfilled with who you are and what you've achieved, that's success.

Hutch The Marine Investor: 40:13

Oh man, I love that man. So money's a tool to get, for me, to get us at five. For us as an investor. Get us at five. Freedom, right? financial freedom, time freedom, location freedom. freedom of relationship and freedom of purpose. You know what I mean? So if we can, amazing, we can knock those out. Then you can go to bed every night and you feel good.

Vincent Villiani: 40:31

Amazing.

Hutch The Marine Investor: 40:32

Beautiful.

Vincent Villiani: 40:32

Ah,

Hutch The Marine Investor: 40:33

yes. As Vince, if our listeners wanna get in touch with you, man, how do you go about doing that?

Vincent Villiani: 40:37

Yeah. yeah. what I'd like to do for your listeners, Hutch, specifically for this podcast, you show up for everybody. I wanna do the same for you. So yes, sir. specifically for those folks who are listening to this episode on this podcast, what I want to give you guys is just something specific for you, just for listening and tuning in if you're interested in the world of Airbnb and you want to start. What I'm gonna do is I'm gonna give you our five step market blueprint. So you mentioned the five steps earlier. we've created a com, a comprehensive guide that literally walks you through A to Z, how to identify profitable properties and markets near you. Regardless where you live. For Airbnb, we really do not give this out often. It's really specific to our clients. So what I'll do is I'll give you that and I'll also give you a session with me or somebody, a coach on my team at no cost to chat with you and just get an understanding of what your goals are. If you're looking to start with the world of Airbnb. They can at least nudge you in the right direction as to where to begin. So if you're looking for these two things, here's all I ask you to do is follow me on Instagram. It's Vinny, V-I-N-N-Y-B-N-B, like Airbnb, right? And you just message me the word, I guess we'll do M-F-R-E-E for this podcast, right? M-F-R-E-E. I'll send that stuff over to you right away and if there's any way I can help you on the Airbnb side would be happy to, but otherwise it's Vinny V-I-N-N-Y-B-N-B, on Instagram, shoot me M-F-R-E-E and we'll get that over to you. Cool.

Hutch The Marine Investor: 41:59

Yeah, that is awesome, man. I appreciate you doing that for listeners Vinny, awesome. Thank you so much, man. And listeners, wherever you are in the real estate journey, remember the goal is to own more of America. And that goes in many different forms, right? owning, you are owning your time, you're owning your financial freedom, and you don't have to own real estate, right? To make some cash flow. And the cash flow, as it's a tool to get us those five freedoms that we all aspiring, most of us are aspiring to achieve. So thank you for taking the time to listen to another episode of the Multifamily Real Estate Experiment podcast. Vince, thank you so much again for joining us today.

Vincent Villiani: 42:35

Likewise, man. You're awesome.

Hutch The Marine Investor: 42:36

Alright, until next time, I'm Hutch Marine Investor

Vincent Villiani: 42:39

out.