How Fareed Abedini Lost $1.7M at 20 — Then Rebuilt Through Airbnb
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this powerful episode of The Level Up Podcast, Paul Alex interviews Fareed "Reed" Abedini, who shares his remarkable story of making $1.7 million through day trading at age 20, losing it all, and rebuilding through real estate and Airbnb. Reed's journey takes us from his early trading success to the devastating crash, followed by his strategic pivot into wholesaling and eventually building a successful Airbnb empire through property management and arbitrage strategies. (00:54)
- Core Discussion: The episode explores resilience in entrepreneurship, the psychology of financial recovery, and practical strategies for building wealth through real estate without initial capital.
Speakers
Fareed "Reed" Abedini
Fareed is a real estate entrepreneur who started his business journey through day trading, growing $25,000 to $1.7 million before losing it all during the market crash. After rebuilding through real estate wholesaling and Airbnb arbitrage, he now manages around 35 properties and coaches others in real estate investing. He currently runs acquisition operations and is expanding into real estate development with his first $2 million construction project in Texas.
Paul Alex
Paul Alex is the host of The Level Up Podcast, a successful entrepreneur who interviews high-achieving individuals to extract actionable insights for ambitious professionals. His podcast has reached top three in business rankings due to millions of listeners seeking entrepreneurial wisdom and strategies for personal and professional growth.
Key Takeaways
Start Real Estate Without Capital Through Property Management
Reed demonstrates how to enter real estate with minimal upfront investment by offering property management services to homeowners listing furnished properties on Zillow. (34:15) He would approach homeowners with properties listed for long-term rent and offer to manage them as short-term rentals, taking 20-25% commission while doubling their income. This strategy requires no initial capital investment, builds credibility, and provides immediate cash flow while learning the business.
Leverage the Three C's of Trust Building
Reed's mentor taught him that successful real estate transactions depend on establishing care, confidence, and credibility with potential clients. (28:44) You must demonstrate genuine care for the client's needs, display confidence in your ability to deliver results, and establish credibility through past performance or partnerships. This framework applies to all sales situations and helps overcome the natural skepticism people have when dealing with strangers in significant financial transactions.
Scale Through Arbitrage Before Ownership
Rather than immediately buying properties, Reed scaled his business by signing long-term leases and subleasing as short-term rentals. (38:00) This arbitrage model allowed him to control multiple properties with minimal capital while generating substantial cash flow. The key is finding furnished properties, negotiating favorable lease terms, and ensuring the rental income significantly exceeds the lease payments plus expenses.
Invest in Mentorship for Accelerated Learning
Reed's breakthrough came through strategic mentorship, including sleeping on his mentor's couch for six months to learn wholesaling. (20:51) He emphasizes that you can either learn through expensive trial and error or invest in mentors who have already achieved your goals. This approach collapses time frames and provides access to proven strategies, network connections, and accountability that would take years to develop independently.
Turn Financial Setbacks into Entrepreneurial Fuel
After losing $1.7 million, Reed used the pain as motivation to pursue a different entrepreneurial path rather than returning to traditional employment. (16:02) He demonstrates that setbacks can become powerful catalysts for growth when you refuse to let them define your future. The key is maintaining an entrepreneurial mindset even during difficult periods and viewing failures as education rather than permanent defeats.
Statistics & Facts
- Reed grew his trading portfolio from $25,000 to $1.7 million in less than six months during 2020, primarily trading pharmaceutical companies and oil contracts during COVID market volatility. (04:01)
- His first Virginia Airbnb property generated $6,500 in revenue with a $3,000 mortgage payment, achieving nearly 70% occupancy with only 20 days booked out of 30. (36:26)
- Reed currently manages around 35 arbitrage properties and has scaled down from 50-60 properties to focus more on purchasing and developing real estate, with his first development project being a $2 million house in Texas. (44:43)
