Jorge Contreras’ The Real System Review: Coaching Results & Alternatives to Airbnb Arbitrage

What Are the Pros and Cons of The Real System?

Let’s answer the most important question first before we go any further. The Real System by Jorge Contreras is not a scam. The course does have legitimate training and coaching.

What Do You Get With The Real System?

• VIDEO 1: 3 Tips to starting an Airbnb BusinessTip 1: Make sure the property has at least 3 bedrooms, 2 bathrooms, and is at least 1100 square feet.
  Tip 2: AC and Heat, preferably centralized, is a must.
  Tip 3: House must be renovated and in good condition. Must have designated parking for at least 2 cars.
  Bonus tips: You can find already furnished properties on zillow.com. Always look up city ordinance for short-term leases. Learn the difference between good and bad debt. Find if the area is profitable before launching, you can use mashvisor.com.
• VIDEO 2: Number 1 mistake to avoidNo permission in writing from landlord - short term leasing, permission to change locks
• **VIDEO 3: What is my ROI (return on investment)**How to calculate ROI and the typical ROI in an Airbnb business.
• VIDEO 4: Leveraging CreditHow to leverage good debt. Example: Splitting your capital on down payments and buying 4 properties while having the bank to cover the rest rather than investing all your money on 1 property with no loan.
• VIDEO 5: About Jorge Contreras & The R.E.A.L. SystemMore about Jorge Contreras and the program.

How much does the course cost?

The Real System coaching program costs a one-time payment of $1,659. The price is given during the call but the intro video after booking warns you it is a 4 figure investment. It is a 90-day group coaching program, and an online course to give you a step-by-step process.

You’ll have access to a weekly group coaching call with Jorge, one-on-one coaching and accountability with one coach, and an exclusive 24/7 Facebook support group with 15.4K members.

Here is a list of what comes with that price tag:

What Are the 3 Ways of Earning With The Real System?

1. Buying properties: Buying your own property for short-term leasing. You need a substantial capital to purchase, renovate, and furnish your own property. This is a high-risk method but you get to keep 100% of the profits. In the long run, this is the best method that has the highest ROI.
2. Sub-leasing: You rent a property for a long term-lease and rent it out as Airbnb. Usually, in a sub-lease, you pay the first month’s deposit and purchase some furniture and decor. You need to get permission from the landlord to Airbnb the property.
   City ordinances on short term-lease may be an issue. The property owner may choose to do it himself after your term expires. Your profits are minus your long-term rent.
3. Co-hosting: You take over management of someone else’s Airbnb business. It could be anywhere from acquiring, launching, and managing, or all of the above. A usual deal is you take 22% of total revenue, excluding the cleaning fee. You also get 10% of the cleaning fee while Airbnb gets slightly below 3%.
   You can even earn a $700-$2000 acquisition fee (for finding the property), a $300-$800 launching fee (from core strategy, theme strategy, and setting up), and 10%-30% of the total income managing fee (for handling cleaning, maintenance, and communications).
   This method has zero risk, as you don’t invest any capital at all, in the exchange of lower profit margin and less control over the business.

The Real System course mainly focuses on the sub-leasing and co-hosting methods.

Social Proof Economy

They described online business models as a social proof economy. Your reputation for reviews and ratings is a big factor in determining your success. Jorge explains the review metrics.

6 categories on how renters review your property

1. Accuracy - how accurate is the listing (pictures and descriptions).
2. Cleanliness -efficient and accountable cleaning team.
3. Check-in - how easy and seamless the check-in is (quick and easy access to the proper unit).
4. Communication - check in with the customer before they arrive and after they leave.
5. Location - how good is the area in terms of safety, and distance to nearby entertainment and leisure locations (such as amusement park, beach, etc.)
6. Value - Is the listing worth the price you are charging

4 ways to improve your reviews

1. Cleaning crew optimization - use the same communication channel like WhatsApp or Slack, and take pictures and post them after cleaning.
2. Communication amongst the team - ensure constant communications between different groups to maintain efficiency.
3. Feedback from guests - communicate with guests before they arrive, during the stay, 24 hours before departure, and at the checkout time.
4. Ask for review - be proactive in asking for reviews.

Reviews are very important in an Airbnb business. Jorge recommends you get yourself the Superhost title. You need 4.8 or higher with at least 10 reservations while keeping a 98% communication score. Having this status can bring you to an 80% occupancy level.

Jorge claims that the Airbnb business model can bring you passive income. That may be true in some cases, but that’s not guaranteed. There are a lot of variables to consider, such as location, season, travel restrictions, etc. The COVID-19 pandemic also cut off this income stream for those in the business.

There are other business models out there that are more true to the “passive income” business model. There is Amazon FBA , affiliate marketing , digital marketing , and Local Lead Generation , for example.

Are Students of The Real System Successful?

The Real System sites are filled with success stories of their students. Take them with a grain of salt.

There are no negative reviews about the course, but of the Airbnb business model itself. Still, if you’d rather compare the Real System to something else before committing, read our  full list of top Airbnb courses.

Who Is Jorge Contreras?

Jorge Contreras is a Airbnb expert and successful real estate investor. But before all his successes, Jorge came from humble beginnings. Born to immigrant parents, he had a rough childhood. He was involved in gang and criminal life and at the age of 7 he even helped his dad sell illegal substances. By age 10, he was helping his family smuggle people across the border. He barely graduated highschool and dropped out of college (Freshman year) soon after.

Jorge learned bachata, a partner dance from the Dominican Republic, while in a salsa dance class. He started working as a dance instructor at the age of 20. During his career, he traveled to 25 countries and set up the first bachata Latin dance festival in Los Angeles. He then made the first bachata nightclub. He gained experience in branding, sales marketing, and team system operations from this venture.

In 2012, Jorge began investing in real estate. He read the book Rich Dad, Poor Dad and applied for a mentorship with Rich Dad company in 2015. He gained further success with the mentorship and even started coaching with the company.

His Airbnb businesses flourished and he started earning six figures a month completely on autopilot. Attaining financial freedom by 2017, he finally became a millionaire by net worth in 2018. Soon after, Jorge founded and became CEO of The R.E.A.L. System in 2018. He has since coached 3000+ students.

Jorge has a YouTube channel with 4.22K subscribers and 272 videos. He was featured on Yahoo! Lifestyle in 2021. He has a weekly podcast called The Jorge Contreras Show.

Jorge Contreras Story: From Dance Instructor To Building a Real Estate Empire

Jorge’s Background and Story

Jorge Contreras faced tough challenges early in life. He sold drugs with his alcoholic father, who died when he was 12. His mother left him at 13. Until he was 16, he lived with his mother’s friend Estella, learning to survive on his own. At community college, Jorge joined a salsa team and fell in love with bachata. He started teaching bachata in a friend’s backyard. Later, Jorge and his dance partner Leslie established the first U.S. bachata dance company, and organized the first bachata festival in Los Angeles. Together, they opened the first bachata night club and traveled to 25 countries teaching this dance to different cultures.

How Jorge’s Airbnb Business is Doing Today

Despite his success in dance, Jorge felt he needed a long-term business. He transitioned to real estate and took a personal development training class. Jorge discovered Airbnb arbitrage in 2016, started the business, and slowly transitioned to long-term rentals. A year later, the business was already doing very well and in 2018, he became a millionaire. Jorge automated his Airbnb operations. This allowed him to manage his businesses remotely.

Lessons Jorge Learned on the Biggest Challenges He Faced

Transitioning from Active to Passive Income: Jorge’s major challenge was moving from earning by working (active income) to making money through real estate investments (passive income).

Importance of Personal Development: Personal development and education were key for Jorge. He spent time learning about real estate and financial management. This was a pivotal moment in his life.

Finding Meaning Beyond Money: Even after becoming a millionaire, Jorge felt empty. He found more satisfaction in helping others become financially independent and sharing his knowledge. This led him to teach entrepreneurship and how to build self-sustaining businesses.

What’s not mentioned in the interview: Jorge did not mention the legal and regulatory challenges of Airbnb arbitrage. Some cities have strict regulations on short-term rentals and impose heavy penalties on violators. New York City, for example, prohibits short-term rentals (less than 30 days) in certain buildings if the owner is not present at the property.

Who Is The Real System For?

The course is perfect for beginners. The training materials give a complete step-by-step process on how to start and run the business. Coaching is also available to guide you to success.

1. Newcomers to the real estate industry who wish to learn how to transform their acquired property into a successful Airbnb business.
2. Newcomers without capital who wish to enter the real estate industry. The course teaches Airbnb arbitrage and co-hosting.
3. Experienced real estate investors who want to get into the Airbnb business.

What Are the 5 Biggest Mistakes New Airbnb Hosts Make?

According to Jorge Contreras, there are 5 common mistakes that Airbnb investors make:

1. No written permission from the property owner: All lease agreements come with no sublease. You must make a written agreement that allows you to sublease the property for Airbnb.
2. City that doesn’t allow short-term rentals: Check with the city about its short-term rental ordinances before acquiring. It is better to start short-term rental businesses in a city where regulations already exist.
3. No designated parking for guests: Make sure there are adequate parking spots for guests to avoid hassles and negative reviews.
4. Properties on a main street: Never get properties along roads with high traffic. This creates privacy and security concerns as well as noise pollution.
5. Properties near train stations or tracks: Never get properties near train stations or tracks as it creates too much noise pollution that is undesirable for traveling guests.

Why Are Reviews Important for Airbnb Hosts?

Reviews are important for Airbnb hosts because they directly impact your booking rate, pricing power, and visibility on Airbnb’s platform. Jorge explains that achieving Superhost status requires a 4.8+ average rating, high communication scores, and low cancellation rates. The Real System teaches tactics to improve every review category and maintain high guest satisfaction.

Is Airbnb Still a Profitable Strategy in 2025?

Airbnb can still be profitable in 2025, but it’s no longer the easy win it used to be. Higher property costs, increased regulation, and unpredictable travel trends have made arbitrage riskier. Jorge’s method of using sub-leasing and co-hosting depends on hustle, compliance, and smart market selection.

What Are The Real System Alternatives?

• Short Term Rental Secrets - a 12-month program by Michael Sjogren that shows you how leverage several online tools that integrate with Airbnb so you can automate 4 key areas.
• Vodyssey - A mentorship program by Shawn Moore that specializes in creating a themed vacation rental business.
• Beyond Bnb Secrets - This mentorship program by Dr. Chau Ong teaches corporate housing Airbnb arbitrage.

Final Verdict: Is Airbnb Arbitrage the Best Way to Build Passive Income?

Airbnb arbitrage is not the best way to build passive income because it requires upfront costs, ongoing property management, and compliance with changing local regulations. While co-hosting and subleasing could reduce risk, the business model itself remains labor-intensive and platform-dependent.

Is Local Lead Generation Easier to Manage Than Airbnb Arbitrage?

In my opinion, local lead generation is easier to manage than Airbnb arbitrage because it doesn’t rely on renting properties, coordinating with landlords, or maintaining short-term guests.

Comparing Airbnb arbitrage to local lead generation is like American Airlines baggage fees versus Shenandoah National Park’s trail system. American Airlines initial fare stacks with checked bags, oversized items, priority boarding, airline meals, etc. That reflects Airbnb high costs from rent, cleaning turnovers, furnishings, and platform commissions. Shenandoah’s trail system stays steady once the route is cut. It’s similar to how local lead generation produces leads with minimal effort and low maintenance fees.

Why Is Local Lead Generation the Best Passive Income Model for Beginners?

Local lead generation is the best passive income model for beginners because it allows you to build digital assets that rank on Google and generate consistent leads you can rent out monthly. There are no landlords, guest complaints, or regulatory hurdles to manage. Once your site ranks, it runs on autopilot and delivers predictable cash flow with very little upkeep.

A client of mine is El Monte Superior Roofing, 11632 Valley Boulevard, El Monte, California 91732, 626-587-3330, https://elmontesuperiorroofing.com/. I earned $3,760 from 5% commissions when 3 of my high-ticket leads closed for $75,200.

If you’re ready to build a real passive income business that doesn’t depend on physical property or constant management, I recommend local lead generation.