The Code To Winning – Episode 053
Title: Strategies to Get Your First Property in Real Estate
Guest: Eric Chen
Host: Kagiso Dikane
Release Date: September 4, 2025
Episode Overview
This episode dives deep into actionable strategies for acquiring your first real estate property, leveraging 0% business credit cards, and growing a successful real estate and Airbnb portfolio. Eric Chen, a real estate investor, house flipper, and Airbnb operator based in California, shares his journey from restaurant server to building a seven-figure portfolio. He explains practical techniques for using credit, house flipping, and distinguishing between arbitrage and property ownership, all while sharing candid anecdotes and tactical advice.
Key Discussion Points & Insights
1. Eric Chen’s Real Estate Journey
[02:39] – [04:39]
- Started as a server at Din Tai Fung after graduating from UCI.
- Transitioned into real estate by leveraging relationships he built with restaurant clients.
- Early success came from the influx of overseas buyers pre-COVID.
Quote:
"I was actually working at a restaurant called Ding Tai Fung...then one of my agent friends told me...you should actually get into real estate. This is actually the best way to make money." – Eric Chen [02:41]
2. Credit Score & Leveraging Debt
[04:08] – [06:57]
- Importance of good credit, especially in Asian communities where debt aversion is strong.
- High credit scores (780+) allow for major real estate funding opportunities.
- Discusses using 0% APR business credit cards for property investment.
Quote:
"By having a good credit score, you could tap into so much opportunity and so much more money in this industry." – Eric Chen [04:19]
Notable Moment:
Eric shares details of flipping a property using stacked 0% APR business credit cards, earning $100K profit in four months.
[06:11]
3. Stacking 0% Business Credit Cards
[04:53] – [11:40]
- Explains the U.S. system for 0% APR credit cards, typically available for 12 months.
- Technique involves applying to multiple banks to "stack" available credit before inquiries appear on reports.
- Up to $150-$250K in working capital possible; use is intended for investments, not consumption.
- Transfer balances to new 0% cards to extend the runway.
Quotes:
"I could get up to 150k, up to like maybe like 250k of 0% working capital for you." – Eric Chen [05:38]
"When you apply for a credit card, the other bank doesn't know you have to apply for a credit card...so we could stack it correctly." – Eric Chen [05:28]
- Business credit cards don't report utilization like personal ones, so leverage doesn’t hurt your score (unless you default).
4. Building, Repairing, and Optimizing Credit
[12:13] – [13:55]
- Eric’s company offers credit repair, helping clients transition from poor credit histories.
- Importance of maintaining old credit lines (credit age).
- Suggests starting with secured credit cards if rebuilding.
Quote:
"Please don't close on any credit card that you have...because that's how you borrow your credit." – Eric Chen [13:11]
5. Airbnb Arbitrage and Direct Ownership
[15:42] – [19:27]
- Entered Airbnb arbitrage post-COVID, riding high travel demand.
- Early arbitrage was easy; modern markets require strong amenities and differentiation.
- Sold many arbitrage deals, shifting focus to direct ownership for control and long-term value.
- Emphasizes buying distressed properties, renovating, and either flipping or turning into cash-flowing short-term rentals.
Quote:
"If I do arbitrage, I need to rent out a house and whatever that property feature has, I'm stuck with that. I can’t really do anything to it...that's the difference between an arbitrage and also buying. This one, I have more control and I own the property." – Eric Chen [17:15]
6. Finding and Funding Deals
[20:21] – [24:31]
- Down payments funded via credit card liquidation, own money, or outside investors.
- Direct relationships with wholesalers and agents are crucial for off-market, distressed deals.
- Eric prefers to “wait for the right deal” and has built a trustworthy reputation as a buyer who always closes.
Quote:
"If you build trust, if there's anything just through phone calls...if they have a really, really good deal, I want them to think of me right away." – Eric Chen [25:09]
7. Scaling with Investors and Personal Brand
[21:49] – [23:16]
- As social proof grows, investor capital becomes easier to access for flips and development.
- Eric shares profits with investors (typical split: 40/60) on select projects.
Quote:
"Now I have a bunch of investors waiting in line with me...I'll put in all the money for the down payment and the renovation costs, and then we could do a 40, 60 split." – Eric Chen [21:55]
8. Entry-Level Real Estate Strategies
[28:09] – [29:27]
- For new investors with decent income, Eric recommends house-hacking with FHA loans (3.5% down).
- Suggests buying near schools, subdividing, and renting rooms to offset mortgage.
Quote:
"The best way to do is actually having good income is to buy a property...and then subdivide this room into more rooms." – Eric Chen [28:20]
9. California Real Estate Myths
[29:55] – [31:22]
- High California property prices are sustained by constant demand, especially international.
- Prices continue to rise due to ongoing transaction comps and international purchasing power.
Quote:
"Every time you have a transaction, you know, you sold a price for 1 million, somebody's going to try to comp that...that’s how the pricing of California market keep going up." – Eric Chen [31:01]
10. Knowledge Investment and Mentorship
[32:13] – [33:32]
- Strongly encourages investing in self-education before real estate – "buy knowledge" first to avoid costly mistakes.
- Advises against entering complex deals alone; mentorship streamlines learning and success.
Quote:
"If you have 20k right now, I'll put 10k into somebody that I trust that's going to teach me the step by step of how they make money...not going through mistakes." – Eric Chen [32:21]
11. Airbnb Market Shifts & Serving Luxury Clients
[34:21] – [37:55]
- The market has shifted; differentiation is now critical, especially targeting the luxury or mid-tier segment.
- Luxury Airbnbs, while fewer, compete with fewer properties and can charge premium rates.
Quote:
"If you can stand out and be the top 10%, you’re only competing with 10 competitors and you could charge $800 to $1,000 a day on your property." – Eric Chen [36:04]
12. Luxury Real Estate and Rapport Building
[38:41] – [43:36]
- Breaking into luxury sales relies on mirroring client interests & culture; frequenting luxury venues to build connections.
- Rapport and trust are paramount—personal branding, thoughtful gifts, and reinvesting commissions back into the client experience set top producers apart.
Quote:
"If you have all these knowledge...even if you're not there, if you could somehow stay at the same level as them, talking about the same stuff—they will trust you more." – Eric Chen [39:03]
13. Strategic Collaboration & Team-Building
[46:25] – [46:56]
- Focus on core competencies and collaborate with professionals (e.g., wholesalers); don’t try to do everything solo.
Quote:
"You don't want to over leverage yourself...let the professional do their job. They make money, I make money." – Eric Chen [46:39]
14. Deal Evaluation: Flip vs. Hold
[48:35] – [50:16]
- Deciding between flipping or holding for rental/Airbnb depends on life stage and capital needs.
- Long-term asset holding is emphasized for wealth; $5 million of assets at a 10% return can enable retirement.
Quote:
"From, you know, the long term span, you really only need $5 million of asset...you could live pretty much for free." – Eric Chen [49:32]
15. Future Plans and Entrepreneurial Challenges
[50:33] – [53:47]
- Plans to develop cabins and motels, especially in Arkansas; interested in creative motel flipping.
- Hardest part of entrepreneurship: the drive to keep growing and "never enough" mentality.
- Definition of winning: retiring his family and wife, traveling, and providing for future children.
Quotes:
"You always want more. That's the best answer yet." – Eric Chen [52:11]
"My winning is actually basically just retiring my family and...my wife and just travel and having a bunch of passive income coming in." – Eric Chen [53:17]
Notable Quotes
-
"If you have money, real estate is not the right thing for you right away. The first thing is invest into yourself with knowledge that can make you generate money for you."
– Eric Chen [32:20] -
"People don't really understand it...they think 0% APR is good, and then they didn't know that they will put every single credit card on the personal side."
– Eric Chen [10:22] -
"You just had to build trust...real estate is a very big purchase. Why would they trust somebody that's driving a Toyota or somebody that doesn't understand or dress well?"
– Eric Chen [39:03]
Timestamps for Important Segments
- [02:39] Eric’s journey from restaurant server to real estate agent
- [04:19] The power of a good credit score in real estate
- [05:38] Stacking 0% APR credit cards for real estate deals
- [06:11] Flipping a property using business credit—$100K profit story
- [13:11] Why you should never close old credit cards (credit age)
- [17:15] Arbitrage vs. buying—strategy shift
- [21:55] Attracting investor funding by building brand/reputation
- [28:20] House-hacking & FHA loans for first-time investors
- [31:01] California price dynamics & myths
- [32:20] Best first investment: knowledge and mentorship
- [36:04] Why to target luxury Airbnb segment
- [39:03] Rapport, trust, and getting into luxury sales
- [43:30] The value of personalized gifts for client retention
- [49:32] Asset goals for long-term wealth and freedom
- [52:11] The ‘curse’ of never being satisfied as an entrepreneur
- [53:17] Eric’s personal definition of ‘winning’
Final Thoughts & Contact
Eric emphasizes that with the right credit, knowledge, and strategic partnerships, it’s possible to break into real estate—even starting from scratch. His personal brand, collaborative approach, and value on trust and education underpin his rapid growth and continued success.
Contact Eric Chen
Instagram: @ECCHN
Episode Motto:
Insights you need today to seize the world tomorrow.