The Smart Real Estate Coach Podcast|Real Estate Investing Episode 537: The Playbook Behind Scaling to 9,000+ Units Using Distressed Debt, Vertical Integration & Smart Risks with Alex Arguelles
In this episode of the Smart Real Estate Coach Podcast, I sit down with Alex Arguelles—CEO, co-founder, and operator who scaled from a two-man startup in a garage to 9,000+ units across multiple states by his early 30s. We unpack how he started buying distressed debt right out of college in 2007–2008, raised 100% investor capital, vertically integrated management, and navigated all the headaches that come with growing from 3 employees to 175 and working through 15,000 apartments over 13 years. 
We talk about raising credibility when you're young and broke, hiring (and firing) your first key people, managing teams in multiple states, and why Alex believes your unfair advantage is your willingness to "just learn" by getting your hands dirty. Then we fast-forward to today and dive into his new national sale-leaseback platform, Sell2Rent, how it helps investors buy cash-flowing homes with prepaid rent, and why he thinks the people willing to take smart risks in this cycle will be the ones ahead in 2–3 years.
If you're trying to go from one or two deals to building something scalable, whether that's a lean portfolio or a full-blown company. This one's a real-world masterclass in cycles, capital, people, and mindset.
Key Talking Points of the Episode
00:00 Introduction
01:01 Meet Alex Arguelles: From 21-year-old founder to 9,000 units
02:16 Scaling from 3 people to 175 employees before exiting in 2020
03:24 Running toward the fire: distressed debt & vertical integration
05:03 No burn, no money, and desensitized to risk
06:48 The problems with building credibility as a young investor
08:02 Dealing with doubters and how pain tolerance plays into his success
09:06 Learning through Mortgage for Dummies and no YouTube
10:05 Lessons from scaling across states on culture, DNA & hiring remotely
11:20 The importance of hiring better people to avoid big, expensive mistakes
15:04 Where investors can find opportunities in real estate today
16:36 The Florida real estate market: valuations and rents holding (for now)
17:22 The differences between 2008 and 2025
18:30 How data access can help you collaborate with other investors in your area
20:08 The first step to getting involved in multifamily real estate
21:06 How you should navigate the single-family real estate market
22:37 Sell2Rent: A nationwide platform that connects investors with off-market properties
23:49 What makes Sell2Rent different from other similar platforms
25:02 How taking smarter risks today will put you ahead in 2-3 years
27:14 How to get in touch with Alex and his team
Quotables
"We started running towards the fire. We started buying distressed debt. We had no money, so we had to raise 100% investor funds."
"You make all your money in real estate when you hit the returns or when you use other people's money."
"For the people who are willing to take a risk right now, I think they're going to be ahead in two years to three years."
Links
Sell2Rent
QLS 4.0 - Use coupon code for 50% off
https://smartrealestatecoach.com/qls
Coupon code: pod
Apprentice Program
https://3paydaysapprentice.com
Coupon code: Podcast
Masterclass
https://smartrealestatecoach.com/masterspodcast
3 Paydays Books
Strategy Session
https://smartrealestatecoach.com/actionpodcast
Partners
https://smartrealestatecoach.com/podcastresources