The Million Dollar Sprint: How to Go From Zero to Seven Figures
What would happen if an experienced real estate investor suddenly lost everything?
No money.
No network.
No credit.
No reputation in the market.
Now imagine that investor is dropped into a completely new city with one challenge:
Build $1 million in wealth within 24 months.
This hypothetical scenario sparked a powerful discussion among real estate professionals about the exact strategies they would use to rebuild from nothing. The conversation revealed a clear blueprint for investors who want to grow wealth starting from zero.
The Core Strategy: Focus on Building Equity
One of the biggest takeaways from the panel was that the goal is not immediate cash flow.
Instead, the focus should be on building equity and long-term wealth.
While cash flow is important, chasing small profits too early can slow down long-term growth. Experienced investors often prioritize deals that create equity, because equity becomes leverage for future opportunities.
Read the Transcription Here
Below is a portion of the discussion highlighting the mindset behind rebuilding wealth through real estate:
0:00 Hey, what’s up my friends?
0:02 So in this video, you’re gonna see some clips
0:04 from a recent real estate panel
0:07 that I was invited to speak on.
0:09 And the topic was pretty cool.
0:10 It’s kind of like Grant Cardone, Undercover Millionaire.
0:15 I never watched the show.
0:16 I heard about it.
0:17 Maybe I watched the episode or two,
0:18 but it’s the same premise.
0:20 Like, how would you react and how would you respond
0:25 if you were taken from wherever you’re at,
0:27 uprooted from your business, from everything,
0:29 dropped into a remote area market and you had nothing,
0:35 no money, no contacts, no network, nothing.
0:38 Like, you gotta start over from ground zero
0:40 and essentially how long would it take you
0:43 to acquire either $2 million cash,
0:47 equity, what have you, combined, whatever.
0:50 What would you do?
0:51 What are those strategies?
0:53 What are some of the thought processes?
0:55 What would you focus on?
0:56 What would you not focus on
0:57 in order to hit that milestone as quickly as possible?
1:03 So that was the context of the panel.
1:06 It was pretty, pretty cool.
1:07 Like, I enjoyed it.
1:08 So we’ve cut out some of my thoughts and my takes
1:13 and my perspectives on this challenge, if you will.
1:20 And for any of you guys watching this,
1:23 any of my content in, you know, you’re watching YouTube,
1:28 you’re watching blogs, things like that,
1:29 videos, social media videos, I would encourage you this.
1:33 Like, this was a, like, in my opinion,
1:36 like a really valuable panel and exercise.
1:40 Like, I spent a lot of time on, not a lot of time,
1:43 but I spent a fair amount of time, like, thinking about it
1:45 and had some really big insights.
1:46 Like, man, if I were starting today,
1:49 like, I could drastically speed up the process
1:53 and the results that I’ve created in almost 20 years.
1:56 So my encouragement to you, if you’re watching
1:59 any of my videos, other people’s videos
2:02 that are sharing, like, real, genuine, like,
2:06 information that you can use and share
2:09 from their past experiences, like, don’t devalue,
2:12 don’t devalue that information just because it’s free.
2:16 Okay, a lot of times there’s a saying about
2:18 when there’s little investment,
2:20 there’s little appreciation.
2:22 So just because you haven’t, you know,
2:24 financially invested in information that you’re receiving
2:29 from myself and from others, like,
2:31 make sure that you’re not devaluing it
2:33 because it can be just as valuable as if you paid
2:36 10,000 or $100,000 for a coach or mentor,
2:38 which I’ve done in the past.
2:40 It’s a lot of my insights and training
2:41 is coming from previous investments.
2:44 So that being said, I hope you enjoy the video,
2:48 short video, just cut out some of my excerpts
2:51 and there’s some little audio issues,
2:54 so I apologize about that.
2:55 But I hope you enjoy it.
2:56 If you like it, thumbs up, subscribe, comments,
3:00 all that kind of stuff, we love that.
3:01 And if you don’t, let us know.
3:03 Either way, it’s fine.
3:04 I hope you guys enjoy it.
3:05 We’ll talk soon.
3:07 All right, so everybody’s heard my version of y’all’s story.
3:11 But what I would like for y’all to do
3:13 is take two minutes or less,
3:17 and let’s start with Peggy and go down the row.
3:20 Go two minutes or less and give us the short version
3:23 of your real estate journey, how you got started,
3:26 and how it’s evolved to today.
3:31 So, Brant Phillips, so I started about 18 years ago.
3:34 How I got into real estate, I kind of hated my life
3:36 and I hated my job and I was broke.
3:38 So, pain’s a really great motivator
3:40 if you allow it to motivate you.
3:42 And because I had no money, I was forced to get creative.
3:47 And so, I love when people say,
3:48 I don’t have any money, so I can’t invest.
3:50 I’m like, that’s why I got started,
3:52 because I saw some books at Barnes & Noble
3:54 that said I could invest without money.
3:56 So, I learned how to put deals together.
3:59 I bought 10 deals, 10 rentals my first year,
4:02 creative stuff, using hard money loans,
4:04 using credit cards, whatever.
4:06 And then my second year, put together partnerships,
4:10 bought 10 more rentals and that was great,
4:12 but I was sharing equity.
4:14 So, my third year, I learned about private money
4:16 and since then, we’ve been raising private money
4:18 and doing deals, done over 500 transactions.
4:22 Majority are single family homes, rentals, flips,
4:25 but we do a lot of owner finance notes
4:27 and I moved into buying mobile home parks.
4:30 I love mobile home parks, I love affordable housing,
4:32 RV parks, we’ve done several land syndication deals.
4:37 And I would say what I’m most proud of
4:39 is from starting with zero,
4:41 we’ve paid out over 10,000 mortgages plus
4:44 to our private lenders over the years,
4:46 never missed a single payment or a dime
4:47 with any of my commitments to my lenders.
4:50 So, if you do things right and build your business
4:54 sustainably, capital’s the easiest part of this.
4:57 So, I’m excited about the conversation today
4:59 because it’s really doable for some of you
5:01 who are just getting started out,
5:02 if you have the right fundamentals
5:04 and do your business the right way.
5:07 So, now let’s get into the fun part.
5:11 Y’all have built up quite a net worth,
5:17 portfolio and quite a lifestyle.
5:19 Well, we’re gonna do something a little different today
5:22 and we’re gonna pretend, we’re gonna imagine
5:26 that you wake up in a brand new city
5:28 that you’ve never been to before
5:29 and you’ve lost everything.
5:32 You don’t have any money, you don’t have any credit,
5:34 you don’t have any friends,
5:35 you don’t have any connections, your network,
5:38 everything is gone.
5:40 Including, which part of it’s good news,
5:43 including the burden of your current expenses,
5:46 employees, obligations, things like that.
5:48 You literally have nothing.
5:50 You’re gonna live in a studio apartment
5:52 and you have barely enough money to survive on
5:56 for the next six months, but your goal,
5:59 because the one thing that you do have
6:02 is your experience and your knowledge.
6:03 We can’t take that away from you.
6:05 So your goal is to use your experience and knowledge
6:10 and make a million dollars over the next 24 months.
6:14 Sound like a game plan?
6:16 All right, so that being said,
6:18 what would your very first moves be?
6:21 What resources would you gather?
6:23 What types of people would you hang out,
6:24 strive to connect with and where would you hang out?
6:27 What about my kids?
6:28 I have five kids, are they a part of this thing or?
6:33 Okay, I was kind of getting excited there
6:37 because I was gonna have all this free time and money.
6:40 So it’s gonna be hard with five kids,
6:42 but we’ll make it work.
6:44 So what I would say is if the goal
6:48 is a million in 24 months,
6:51 so you break it down, it’s like 40,000 a month,
6:55 so that’s 10,000 a week, it’s 1,200, 1,300 a day.
6:59 So the first thing that you have to do
7:01 is get real, real clear on your goal.
7:04 You gotta look at the landscape,
7:05 what are your strengths, what are your weaknesses?
7:08 Eliminate anything that’s a weakness and focus,
7:11 you’re gonna have to,
7:12 this is probably one of the biggest hurdles
7:14 of most real estate investors I’ve seen
7:17 is just the ability to get super clear
7:19 on what the objective is
7:22 because they come in and they’re doing a little of this,
7:23 little of that, little of this, little of that
7:25 and they get no traction.
7:27 When I first came in, I’m like,
7:28 I’m buying 10 rentals this year.
7:29 So I told my wife, we’re broke, live in an apartment.
7:32 She said, how are we gonna do that?
7:33 And I was like, I have no clue,
7:35 but it’s what I’m gonna figure out.
7:36 So I would get real clear on your goal.
7:38 I would also say that for this task,
7:44 I would focus on the equity side more so than cash.
7:50 I would only focus on very little on generating cash
7:54 during this point in time.
7:56 I would focus on creating equity.
7:59 And the way that I would go about it
8:01 is very similar to what I did
8:04 was in the beginning, look for deals
8:07 that you can take down and keep.
8:09 In today’s market, it would probably be subject to,
8:13 I’m not a big subject to guy,
8:15 but in this example,
8:17 I would be looking for subject to deals
8:19 on the residential side of things.
8:21 I would be looking for seller financing
8:23 on the commercial side of things.
8:25 And I would spend a majority of my time
8:28 on raising capital or lending relationships.
8:33 Case in point with me was
8:34 when I was very wet behind the ears,
8:37 I was able to put together some small partnerships
8:40 and began buying rental properties.
8:41 And I knew very, very little at the time.
8:44 I knew very little at the time,
8:46 but was able to do 10 deals my first year,
8:50 10 deals my second year.
8:51 And I was working a full-time job with a wife and kids,
8:54 finding deals, managing the rehabs,
8:57 renting the properties out, all that kind of stuff.
8:59 So with this amount of time, that would be fairly easy.
9:03 And then, so I would start there,
9:05 probably get some deals under your belt
9:07 on the single family side of things,
9:10 while at the same time talking to investors and partners,
9:13 and then begin to kind of level up that game.
9:16 So I took that skillset from single family
9:20 and moved it over to commercial
9:22 where I began buying RV parks, mobile home parks,
9:26 same strategy with seller financing and or private money.
9:31 And we’ve even done several land syndication deals.
9:34 We’ve done three land syndication deals,
9:37 roughly 100 to 200 acre land syndication deals
9:43 that we bought from anywhere from one to $2 million.
9:48 Those are all valued now at 2.5, 3.5,
9:52 and both of those are in a contract,
9:53 and another one at 5.9 without putting any money
9:57 into those deals with a substantial equity piece.
10:02 So I would just start there,
10:03 get really clear on what you want,
10:05 focus on the equity side,
10:08 and yeah, there’s gonna be some opportunity.
10:09 You gotta make some money as per the challenge here.
10:14 Wholesale the deals that come to you
10:16 that don’t meet or exceed what you’re looking for
10:19 just to get some cash in,
10:21 but focus on taking and controlling real estate,
10:25 utilizing wise leverage,
10:26 because that’s how you create wealth
10:27 And that’s how, I mean, honestly,
10:29 like if you’re really focused on this,
10:32 whether you have full-time, part-time,
10:34 all this kind of stuff, it’s not that hard of a challenge.
10:39 And the last thing I will say is this,
10:41 that James said, you’re going to this with no money.
10:44 One of the things that I do with my coaching students
10:47 is one of the first things we talk about
10:51 is I don’t care how much money they have,
10:54 but I was like, I need you to be in a mind state
10:56 that you don’t have any money.
10:59 Because one of the things that I’ve seen
11:00 that has crippled people coming into real estate with money
11:04 is they wire their minds to say,
11:07 I personally need to have money to do a deal.
11:11 So I’ve worked with multiple people over there
11:13 is they’ll have 20,000, 50, 100,000,
11:15 they’ll buy a rental, they’ll buy two, and then they stop.
11:19 And I’ve seen this pattern happen over and over again.
11:22 I’m like, where have you been?
11:24 What are you doing?
11:25 Well, I don’t have any more money.
11:27 And I’m like, real estate is the single greatest investment
11:32 that I know of that you don’t have to have any money.
11:36 You have to have creativity,
11:38 you got to be willing to work hard,
11:40 ingenuity and provide value and help others.
11:42 And if you do that, and you have that mindset,
11:46 you absolutely can crush it
11:47 because if you’re putting money into deals,
11:50 every time a deal comes up, you’re like,
11:51 well, I don’t have enough money.
11:53 Because I started with no money,
11:56 it wired my mind to say,
11:58 I can do any deal theoretically that makes sense.
12:02 And so that’s always been my mindset,
12:05 that’s been my MO.
12:06 When these land deals and other commercial deals came up,
12:09 I’m like, no, if this makes sense, the money’s going to come.
12:13 So you got to just really, really put yourself in position
12:16 to where you’re talking to sellers,
12:18 talking to people with the deals,
12:20 and then seeing how that makes sense
12:22 to bring investors in that deal as long,
12:24 and you remain controlling the assets
12:27 and using leverage that way.
12:33 All right, I think you guys almost did your homework
12:36 because y’all answered a bunch of questions
12:38 that I already had lined up.
12:40 So what I want to shift gears to
12:46 is, especially in markets like today,
12:50 and especially when you’re first starting out,
12:53 you may not have a bunch of money.
12:57 You can really get into a rut
12:59 where you’re deploying your marketing,
13:02 you’re talking to wholesalers,
13:04 you’re out there working.
13:06 The quality of leads is not where you need to be,
13:10 where you want them to be.
13:13 Getting the leads that you want,
13:15 or if you are talking to,
13:17 you’re not getting the deals closed.
13:19 It’s really easy to get discouraged.
13:22 So how do you really know
13:24 that you’re actually making progress
13:26 and you’re on the right track
13:28 even before your first deal closes?
13:33 So it is easy to get discouraged
13:35 when things aren’t going the way
13:36 that you think they should be.
13:37 And sometimes it’s maybe just kind of
13:41 the way that you’re structuring
13:43 not just your business, but your thoughts.
13:45 So the way that I would try to avoid the discouragement
13:49 is like boiling it down to that,
13:50 essentially having KPIs,
13:53 where as long as you are putting out offers consistently,
13:57 let that kind of be your win.
13:59 Say, hey, I know based on data,
14:01 if I’m putting out five offers a day
14:03 or 10 offers a day or what have you,
14:05 that I may not get those offers accepted today,
14:09 but you’re building your pipeline
14:12 and all of your deals,
14:14 and they’re going to start popping
14:15 at a certain time at a certain percentage.
14:19 So I would focus on what is your output offer.
14:23 And that is a key thing is like offer.
14:26 So many people, they’re just not making offers,
14:28 whether it’s for deals or private lenders.
14:31 Every time I talk to somebody
14:33 and they’re having a problem raising capital,
14:35 how many lenders have you spoken to
14:37 in the last week or last month?
14:39 And it’s usually zero or one or two.
14:41 It’s a numbers game.
14:43 Just putting out offers and things like that.
14:45 And then to take a step back also,
14:47 to build off what they said,
14:49 focus on your niche and focus on your area.
14:54 And then you just, you attack it, right?
14:58 You attack it.
14:59 So you live, eat, breathe, sleep in your niche,
15:03 in that market with offer after offer after offer,
15:06 and let that be your goal each day.
15:08 Not, hey, I’m going to get these contracts
15:10 because that’s a little bit out of your control.
15:12 And we need to focus on what we can control.
15:14 And what you can control is making offers,
15:17 having those conversations.
15:19 And if you do that and relying on data
15:23 that has been proven to work over time,
15:26 it’s going to turn into closings and deals
15:31 and things like that.
15:32 So I would focus on what your output is.
15:35 And I got kind of two questions here.
15:38 Okay, so first thing, you talk about making offers, okay?
15:41 80 offers a day, 100 offers a day,
15:43 how many offers you got to make, okay?
15:45 But remember, you guys barely have enough money
15:48 to survive on the next six months, okay?
15:51 So how do you wrap your mind around,
15:53 well, if I make you an offer and you say yes,
15:57 or you make me an offer and I say yes,
15:59 how are you going to pay for it?
16:00 Where’s money going to come from?
16:01 So how do you get around that?
16:02 How do you approach that?
16:03 That’s part one.
16:04 And then how do you get from doing deals that pay you cash?
16:08 How do you approach the actual building wealth part?
16:11 All right, so going back to a couple of things
16:13 I’ve been mentioning.
16:14 So every single day,
16:16 and this is something I live, teach and preach.
16:19 There’s two things, if you’re a true real estate investor,
16:23 there’s two things that you should be doing
16:25 each and every day, every day period.
16:28 Whether you’re doing it personally, you’re automating it,
16:30 you’re delegating, you have team members.
16:32 You gotta be making offers on deals
16:34 and making offers on dollars, okay?
16:36 So every single day we are marketing
16:38 and making offers on deals, but also to private lenders.
16:42 So what I would encourage you to consider is like,
16:46 begin thinking about the money side
16:47 before you’ve got the deal, right?
16:50 So my whole method of operation for raising money
16:53 is I just educate.
16:55 Educate, teach, private mortgage lending,
16:59 the benefits, how to analyze deals, how to analyze borrows.
17:03 And I just teach and teach and teach.
17:05 And the more that I’ve done that over the years
17:07 is people that kind of the know, like, and trust rule,
17:11 they’re gonna wanna invest with you.
17:12 So you need to start doing that day one
17:14 while at the same time you’re putting out offers.
17:17 As you’re putting out offers, our standard contract,
17:20 like for single family, for example,
17:22 we have a 30 day option period built in.
17:24 That nine times out of 10 that sellers agree with.
17:27 So if you get a deal today, and y’all could do this today,
17:30 like you could go out and start door knocking today
17:33 and get a contract today.
17:34 It doesn’t mean you have to close it today.
17:34 It doesn’t mean you have to close it today.
17:36 You give yourself 30 days, typically.
17:40 That’s more than enough time to raise the money.
17:43 Okay, so when you’re doing that,
17:44 I would also be looking for when you’re making your offers
17:48 is really identifying the creative financing opportunities.
17:52 Those are where you’re gonna want to put your full focus on
17:56 because there’s a big difference in if someone’s,
18:00 you know, we’re doing a sub two right now
18:02 and the seller wants $30,000 at closing, 2.75% interest.
18:07 And there’s about 50 to $60,000 of equity on top of that.
18:12 That’s a no brainer.
18:13 And it’s a lot easier to raise $30,000
18:17 rather than $250,000, right?
18:20 So I would focus on those opportunities
18:23 that you can easily get financing for,
18:25 get in the deal, build up the equity and cashflow.
18:28 The ones that don’t meet your buy box,
18:30 going back to like getting really focused,
18:33 those are the ones that I would wholesale
18:35 for the purpose of this exercise.
18:39 And then also, like, you know, you were mentioning,
18:42 you gotta look at, I think a big piece of this as well,
18:47 not just for this topic that we’re talking about,
18:50 but for investors in general.
18:54 Boring, to build on Havon’s point,
18:58 like talking about doing the boring things,
19:00 boring is sexy.
19:02 The really big, sexy deals, right?
19:06 A lot of these development deals,
19:08 the big fix and flip deals,
19:10 a lot of times those are nothing more than
19:14 they’re gonna take you off track of what you need to do.
19:18 And a lot of those deals that we’ve gotten
19:20 into big development deals,
19:22 ground up construction,
19:25 there’s a time and a place for them.
19:27 But what I’ve just found is like boring,
19:31 consistently over time is how this game is won.
19:34 So I would be focusing on those deals
19:37 that you can easily take down consistently, repeatedly,
19:40 looking for the creative financing opportunities
19:44 and then start there because like I said,
19:46 it’s really easy to raise 20, 30, 40, $50,000
19:50 rather than 500 or a million.
19:51 It’s not that hard to do that either,
19:53 but if you’re starting out, I would start from that place.
19:57 And then this is something else that I learned
19:59 from one of my lenders actually taught me this
20:03 when I began raising private money
20:05 right in the very beginning.
20:07 And I was borrowing money on a deal.
20:09 I don’t know, I was borrowing like 80, $90,000
20:11 at that time for this property.
20:14 And the lender came to me and she was looking at the deal.
20:17 She knew real estate very well.
20:19 And she said, hey, I was wondering,
20:22 could you use like five or $10,000 more on this deal?
20:26 And I was like shocked.
20:27 It was just a little single family rental we were buying.
20:30 And I was like, well, probably, why are you asking me this?
20:35 You’re already loaning me 100%.
20:37 And back then, and still to this day,
20:40 a majority of my lenders are investing
20:42 self-directed IRA capital, right?
20:45 And she said, well, I’m gonna loan you this money,
20:47 but I’m gonna have,
20:48 it was like seven or $8,000 left over.
20:50 She’s like, I’m gonna have seven or 8,000
20:52 left in my IRA account.
20:54 It’s not gonna earn me any money.
20:55 I can’t invest that on a real estate deal.
20:58 And she was only investing in real estate.
20:59 So she’s like, I looked at your deal.
21:01 Your numbers are really good.
21:02 There’s plenty of equity there.
21:03 If you could use the money, I’d like to loan it to you.
21:07 I’m like, gee, let me think.
21:09 So when we raise private money,
21:14 obviously, like I say this very cautiously
21:16 because I’ve kept a perfect track record,
21:18 and there’s a lot of people
21:18 who don’t take care of their lenders.
21:22 But a majority of the time,
21:24 when we’re raising money for real estate,
21:26 we’re borrowing 105, 110%.
21:30 So if you can focus on getting really, really good
21:33 at negotiating, finding deals,
21:36 and getting those deals, like really good deals,
21:40 you don’t even have to wholesale them
21:42 because now, yeah, maybe you made a million dollars,
21:44 but what are you paying in taxes?
21:46 Rather than you’re buying a rental,
21:48 you’re buying a sub-two,
21:50 and you’re borrowing 105, $110,000,
21:53 taking down the deal, getting the equity, and what?
21:57 You’re essentially taking your profit early,
21:59 putting that money into your account to live on,
22:02 put back into marketing, what have you,
22:03 and you’re not paying taxes, at least not now.
22:05 Maybe never if you do a 1031 exchange.
22:09 So I would focus on, as you’re writing your contracts,
22:13 give yourself some time, 30 days, you can negotiate that,
22:17 and then go there on these big, hairy fix-and-flip deals,
22:22 development deals, stay away from them.
22:25 Stay away from them.
22:26 A lot of times, experience has taught me
22:29 there’s time and place for those,
22:31 but for this, if you’re hard-charging for a million dollars,
22:35 you’re just getting started out, focus on the boring.
22:38 Focus on those little things over and over and over
22:41 and being consistent with them,
22:43 and the people that I have found
22:45 that have been most successful in this business,
22:47 that’s what they’ve done.
22:48 It’s like the tortoise versus the hare.
22:51 It’s just that consistency over and over and over,
22:53 and sometimes it’s boring,
22:55 but if you’re able to do those boring things
22:58 over and over and over again,
23:00 Alex Ramosi talks about this a lot.
23:02 He’s like, just your ability to do those things
23:05 when other people won’t,
23:06 that’s how you’re gonna create success,
23:08 and a lot of times, the boring things,
23:10 when you really step back
23:11 and look at what you’ve accomplished,
23:13 it’s like boring is really, really sexy.
23:16 Some of the things that I thought were sexy
23:18 and they were really cool
23:19 and I could do a really cool social media thing,
23:21 nah, it’s not that fun.
23:23 It’s not what you thought it was gonna be.
23:30 Yeah, the 70% rule works,
23:33 and so how we analyze deals for the most part
23:36 is with that formula plus a few other things.
23:39 So our business model,
23:41 and it would be this way too for this experiment,
23:44 would be we focus on medium price housing
23:47 and below with that criteria
23:49 because part of creating wealth
23:52 and being able to be sustainable in business
23:56 and real estate is giving yourself options.
23:59 So medium price housing and below
24:01 is what we focus on with that 70% rule
24:03 because now you have options.
24:05 Now, you could flip it, you could rent it,
24:07 you could own or finance,
24:08 and you could wholesale.
24:09 You have all these options that you can do.
24:12 Another thing that we do though,
24:15 each strategy, whether it be a flip or a rental,
24:17 then we’ve got some data that we’re looking at for that
24:21 when we’re analyzing a deal.
24:22 For example, on a flip.
24:24 For me, a good flip deal is like,
24:26 I wanna know even if this home doesn’t sell
24:28 with conservative numbers on my after repair value,
24:32 if I hold this thing for 12 months and it doesn’t sit,
24:35 I’m still gonna at least be in the black.
24:37 I’m gonna make at least a sliver of a profit.
24:40 If you’re having to do everything right
24:42 and you’re gonna make 10, 15, $25,000 in six months,
24:45 that’s not a deal, okay?
24:47 That’s not a deal.
24:48 Other things I look at like when it’s a flip.
24:52 Previously in previous markets, we’ve taken this down.
24:55 I wanted my projected profit to be in alignment
24:59 with how much rehab I was doing, right?
25:02 So I’ve seen investors bring a deal
25:03 and they’re doing like $100,000 rehab to make $30,000.
25:09 No, risk versus reward.
25:11 So we’re looking for low risk opportunities
25:14 with the potential for high reward.
25:16 Not a high risk and a high reward.
25:19 That means no deal.
25:21 So we’re looking at it through that lens, right?
25:23 So if you’re gonna do whatever, 80, $90,000 of rehab,
25:28 that equates to one risk.
25:30 Number two equates to time, okay?
25:33 The time you’re spending it.
25:34 The time, that opportunity is also maybe taking away
25:39 other opportunities from you.
25:42 So that’s what we’re looking at.
25:44 We’re like, hey, if we’re gonna do 80, $100,000 of rehab,
25:47 that’s okay, but we want a chance here with our numbers
25:51 to make an $80,000 profit, right?
25:54 That has to make sense.
25:55 And then we look at certain things,
25:57 if it’s a rental, if it’s an owner finance.
26:00 And then one thing that I was thinking about saying as well,
26:05 in context of this, like starting from ground zero, nothing,
26:10 you’ve gotta pay your bills and things like that,
26:13 which you wouldn’t have a lot of bills.
26:15 But one thing I would do immediate,
26:17 like day one, I would door knock,
26:21 or I would go find, I would go pull a list.
26:24 I would go find out some burned out Airbnb investor.
26:29 And I would take that thing over
26:30 and I would pad split it.
26:32 And I would live in a room
26:33 and I’d rent out four or five other rooms
26:35 and boom, I’m done.
26:36 I’ve got my housing taken care of
26:38 and I’ve got some cashflow.
26:39 As I was really thinking about that a second ago,
26:41 what would I really do?
26:42 All right, I would pad split a burned out Airbnb.
26:46 And that might be a good strategy too, right?
26:48 Cause there’s these people get into Airbnb
26:50 and like they suck management wise.
26:54 And so you could do that.
26:56 But that’s some of the criteria we look for.
26:59 The 70% thing is, right?
27:02 That’s like the 10 commandments.
27:04 And it gives you flexibility.
27:06 There are some exceptions that you can utilize, right?
27:13 Geographically, if it’s newer construction,
27:15 great area, sub two, low interest rate, things like that.
27:20 So yeah, it’s about it.
27:22 Challenge you guys up here to think about
27:25 everything that you talked about today.
27:26 Think about the education,
27:28 whether you purposely invested in that education
27:31 or the school of hard knocks taught you
27:33 whether you wanted to learn it or not.
27:36 Think about some books that you’ve read over the years.
27:39 What is one final piece of advice?
27:42 What is one thing that we haven’t talked about today?
27:44 What is one thing that you wanna leave the audience with?
27:47 And then after this, we’ll open it up for questions.
27:51 Well, I guess what I would say is,
27:54 coming back where I came from
27:56 and when I really decided to go all in,
28:01 that’s when everything changed for me.
28:03 And I saw the life that my parents lived and raised me in.
28:10 And it was, my father had a job.
28:12 He lost a job multiple times.
28:15 My family lost everything.
28:16 There was always struggle and challenges.
28:19 And it was stressful.
28:21 And then I saw myself here,
28:23 I’m in my early thirties at that time.
28:26 And I’m like, I’m doing exactly what I saw my parents do.
28:31 I was very, very unhappy.
28:34 And so I was like, I started thinking about
28:38 how does this story play out
28:41 if I go on the path that I was on, which was I had a job
28:47 and I could stay in that job probably
28:49 and work there for 20 or 30 years
28:51 and I could live very middle-class.
28:54 Nothing’s wrong with that
28:55 unless something’s wrong with that for you.
29:00 So I just got to a point where like, this is not acceptable.
29:05 I would rather go all in with this, even if I fail,
29:11 that’s okay, I can always go back and get a job.
29:14 I remember when I quit my job,
29:15 my dad’s like, you’re an idiot.
29:16 What are you doing?
29:18 And I had to like, I took that and I’m like,
29:21 doesn’t matter.
29:22 So I’m going all in, I’m going to give,
29:23 and it wasn’t that I was just going to give it a try.
29:26 Like I’m going to go a hundred percent, a thousand percent.
29:30 I’m going to give it my all.
29:31 I’m not going to leave anything to chance.
29:34 And if I fail, then I fail and I’ll be okay with it.
29:37 So I just, I made a decision to go all in
29:41 and people I’ve seen over the years,
29:44 when you look around at people who are successful,
29:47 they did the same thing.
29:48 They went all in.
29:49 It doesn’t mean that it was always pretty.
29:51 Doesn’t mean that it’s always going to be easy.
29:53 It’s not.
29:54 A lot of times it’s going to suck.
29:55 And that’s a part of it.
29:58 But going to the question also.
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