How 10 Deals Can Make You a Millionaire

What if becoming a millionaire in real estate was simpler than you think?

In this solo episode of The Wisconsin Investor, Corey Reyment breaks down a step-by-step plan to building over $1 million in equity, without needing hundreds of deals or massive amounts of capital.

The strategy?

Consistency.

By walking through a real-world example, Corey shows how completing just a couple of deals per year can compound into serious wealth over time. From equity creation to appreciation and debt paydown, this episode lays out exactly how small, repeatable actions turn into big results. 

Inside this episode:
 • How 2 deals per year can lead to $1M+ in equity
 • The power of compounding appreciation and debt paydown
 • Why deal flow is the foundation of building wealth
 • How refinancing can unlock large amounts of capital
 • A realistic 5-year roadmap to scaling your portfolio

Corey also breaks down how investors can recycle the same capital again and again, turning one opportunity into many and accelerating their path to financial freedom. 

If you’ve been overcomplicating real estate or waiting for the “perfect” time to start, this episode shows what’s actually possible with a simple, focused plan.

🎧 Tune in now and start building toward your first $1 million in real estate.

Transcript

Welcome And Hiring Referral Bonus

SPEAKER_00 0:39

What's going on, everybody? Cordy Raymond here, your host of the Wisconsin Investor Podcast. Today I'm going to talk to you guys on another solo episode. I'm live here in our office in Green Bay, and I'm going to break down how I can get you guys to become a millionaire by just doing 10 deals. All right. So hang with me here. I'm excited to break this down with you today. But before I get into that, guys, I do want to share with you, we are still looking for some qualified people to be on our acquisitions team in Madison. We're paying a$10,000 referral bonus. If you can get us somebody who's a qualified acquisitions rep for us that we end up hiring, and they stick with us, you will get 10 G's just for referring us a good qualified person. They do not have to have any real estate experience. In fact, sometimes that can be to their detriment, but great uh problem solvers, good um communicators, great interpersonal relationships, probably history in sales in some capacity is preferred. And uh we'd love to talk to them. So even if you're not sure, just uh reach out to us, Wisconsin Discount Properties.com, hit the contact button and um send them over our way. So, with that, guys, I do want to get into today's episode because I'm really excited about this. And I was thinking a lot about this. Um, we just closed on a deal yesterday. And if you guys follow me on social media, you'll see kind of a thing I've been doing is closing at quick trips, which is so Wisconsin uh to be doing. But uh the I love me some quick trip and I love me some real estate. And so combined two of those things, it's it's one of my favorite things to do. The reason I do it, honestly, is because I live in Fish Creek and all of my you know title companies and lenders and everything are in the Green Bay area, and so it's kind of a halfway point for us to meet in Sturgeon Bay when there's two quick trips there nowadays, guys. It's becoming a big deal in Sturgeon Bay. If you're ending up in Door County this year, don't worry, there's two quick trips there. So you can hit those up right along with two Starbucks, too. It's kind of a big deal. But anyway, end up meeting at the quick trips. But we just closed on a four-unit. We have another deal a couple weeks ago. We closed on a duplex, and all of them are burr deals. And one of the things, uh, those of you guys that follow me or been following me for a while, I love the Burr strategy. Um, it is still to me one of the most valuable strategies on the planet. And so I'm gonna explain the Burr again for those of you guys that aren't familiar with the Burr, and I'm gonna show you guys how you can use the Burr strategy with really no money out of pocket to become a millionaire in the next five years. Would that be valuable? I hope so. And hopefully this is helpful for you guys. And if you've already you already mastered the Burr and you're like, oh man, the Burr strategy, I'm gonna tune this thing out. Just hang with me because hopefully you're still gonna get some nuggets out of today's episode. That's the goal, anyway. Every episode we do, we want to bring value to everybody, no matter where you're at in this process. If you're brand new to real estate investing, you've never heard of the Burr strategy. All right, I'm gonna share some stories with you guys today, some real life examples, and we're gonna break down some ways to help you really only have to do 10 deals and in some hypothetical scenarios and get you to become a millionaire. And it's so doable. And um, so I'm gonna break this down for you guys today. Let's get into it. The Burr Strategy, for those of you guys that don't know, it's an acronym and it stands for buy, rehab, rent, refinance, repeat. All right. And why that is so powerful, guys, is typically um when you're talking just regular real estate agents, they're not familiar with the Burr strategy, or you're just thinking, I'm like, man, I want to buy some deals. Typically, you need 20 to 30 percent down to purchase a property. Now, if this is a value add property, what I mean by that is it's gonna need some work. It's outdated, it needs a roof, it needs a new base, basement's got issues, whatever the case is, it needs some improvements to it. You typically have to put not only the 25 to 30 percent down, but then you also have to have the funds to be able to cover that rehab amount, right? So when I got started in this business in 2016, uh I was talking to people who had already had a good size portfolio. And I'm sitting there going, how did you get all of these properties? Right, like you had to, you had to have just tons of money when I started doing it. One of my friends, Tony Breyer, owns Goodfaith Funding, uh, who's a friend of the show here. They uh he was one of my early mentors, and I remember he had 50 doors with his brothers. And I remember sitting down asking him one day, like, I mean, I he was a mortgage broker at the time, and I'm like, I know he does well, but like 50, 50 single family houses or duplexes, even back then in 2016, 10 years ago, that was still, you would still have to have briefcases full of cash to be able to put all that kind of money down. And so he started explaining this and he didn't know it was called the Burr at that time. This was a bigger pockets thing, they coined the Burr strategy. But we started talking about it, and um, and and and then when it clicked, I'm like, wait a minute, what? So essentially what you're doing is you're recycling capital. Okay, and this is why it's so powerful. So if you're sitting here listening, you're like, man,$100,000, right? Let's just say to buy a house,$100,000, which is gonna be really tough to do, but for easy math, 20, 25% of that, that's$25,000. Let's just say that you got to come up with plus the rehab money out of that. Now, the average home price in like the Green Bay area, for example, where my home base was, you know, you're looking around$270,000. So call it$300,000. So now you're talking$75,000, you got to come up with out of pocket just to purchase a property. Okay. Now, some people will still do this, okay? And this is this is some people's strategy. They have a great cash machine. They have some other business or something else that's kicking them off a bunch of cash every single month, and they don't want to have to do rehabs on properties. They want to buy turnkey, we call it, meaning you you buy it and then you've already got tenants going. A lot of side-by-side duplexes people will do this. And there's a different strategy why people do those. It's really, really hard to scale and build for most people. It's not very attainable to be able to do that. So, my story, we got started in 2016, and we went from zero to a hundred units in three years, and we utilized the same exact strategy I'm talking about. And I started with about$8,000 in my bank account. I had about$25,000 in an old um IRA or something like that that I pulled out. And then I went around and I utilized the birth strategy. So I used other people's money to fund my first deal. All right, and then we increased value on the property by doing rehab to it. And shortly thereafter, we refinanced, told the capital back out, paid back our private lenders, paid ourselves back that$25,000 that we had put into it from the IRA, our$8,000. I don't think we used the$8,000, I think we just used the$25, paid ourselves back, paid back our private lender, and went and did it, did it again, right? And then did it again and did it again. Found more private lenders, find banks, start finding commercial communities commercial banks, community banks that we could start utilizing the strategy with. And you the point here is you can become a millionaire relatively quickly without needing to have a bunch of cash to start. Okay. In fact, you don't need any cash to start. You need to have, if you don't have cash, you better have grit and you better have the uh desire to solve problems and go after this, all right, because that's all it takes. You just got to have the will and the desire to do it. So I want to break down a few um examples for you guys of how you can do this as well. I'll share with you guys the example I just did the quick trip closing on, though. So uh Justin, who works for me now, just strictly on trying to find commercial properties, found us a four unit off-market deal. All right. We negotiated$235,000 of the purchase price. Now this property needs maybe$50,000 of work, but I think I think that we are probably gonna come in somewhere around like$30 grand of work on it, uh, maybe$40 tops, if I had to guess, unless there's something we didn't see. Um, but we're gonna do that. And part of it is that there's some old electrical panels in there. All right, they're the old fuses. We're gonna upgrade all the electrical panels in there. We're gonna get them all up to you know circuit breakers and today's standards. Hopefully that'll help some insurance quotes as well for the future. We're gonna uh I don't even know. That thing was already kind of nice. So there's not a lot else we have to do. There's some odds and ends, exterior stuff, whatever. We'll fix up some of those other things. But we put in a pretty healthy budget just to cover our butts on it. And the the risky part with the Burr, okay, is it's all based off of the appraisal you get. All right. Now we have a lender, a local lender, that will lend us. It's a commercial bank. So if you're out there and you have a good, strong W-2, you're probably already a candidate for this type of loan. If you have some good cash reserves, you're already probably a good candidate to work with this lender. Otherwise, there's hard money lenders, and I'm not gonna go into like all of the different lenders out there for you guys, but just for this example, we used our community bank. They'll lend up to 80% of the after repair value. Now, I will tell you that loan is very rare. Okay, so you gotta have you gotta have good relationships with these guys, you gotta be scrappy, you gotta find them. But there are lenders out there that will do this. A lot of other lenders, though, if they won't do this program, they will do 85% of the cost. So they will cover 85% of your purchase price and 85% of your rehab. So that's still a really good program. You can pair home equity lines of credit for that other 15%, you can bring in some private lenders for that other 15%. And really, you're only using those funds for the rehab piece. And the goal is that you increase the value, and at the end of however long that takes you-two months, three months, whatever it is, you go and you talk to your bank about cashing you out now based off of what the property is worth now that it's improved. All right, so that's the goal. Okay. Now, this example, they just do 80% of the after-repair value. So, what that means is they're gonna bring an appraiser in before we purchase it. We give them our scope of work. So, here's the things that we want to do to improve the property. That appraiser goes in and puts the value on what it's gonna be worth once the work has been done to the property. Okay, so in this case, that appraiser came back and said, Hey guys, uh, I think this thing's gonna be worth$390,000 when you're done. Now, that was way higher than what my ARV comps were, all right, which is great. Okay, I was being conservative on the front end, which is why you know we got the price we did because we weren't overpaying for this property. We were very conservative with all of our numbers. But that's the risk. What if that appraiser would have come in at 290? All right, this wouldn't be a deal. I'd probably be, you know, sitting here posting a quick trip closing on. All right. I'd be like, dang. But here's what I would do in that case. I would do the repairs, I would fix it up. Once it's done and rented out, I would go try to get another appraisal and refinance that property to get my cash back. All right. So you're not not all is lost, it might just be a different strategy you have to take if you do get a low appraisal. One strategy before we dive into this plan, I want to give you guys of how to become a millionaire here with 10 properties. Uh, the um, and no money out of pocket, by the way. The thing you can do if you get into a pickle is sometimes what you're doing is you're using cash, hard money, HELOC, whatever, some other means to fund the purchase in the rehab. And you go to a commercial bank or a credit union or someplace else to get cheaper debt, which is the goal, right? You want to have the cheapest debt possible so you can still try to cash flow these things. And that appraisal comes in low. Okay. You do not have to go forward with that loan at that point. Okay. You can you have time now because you don't need to purchase the property anymore. You own it. All right. So unless you're lender, unless you're up against a lender deadline, like with a hard money loan, you can probably just hang on to that thing and and then go get uh go get a different bank involved and try a different appraiser. Now you're gonna have to pay for the appraisal. That's fine. I would rather pay$500 for an appraisal that I didn't like and go get a different one. You can also rebuttal the appraisal. Now, ChatGPT, one of my favorite things in the world, as you guys hear now. I know I'm like the old guy, right? Like everybody's on Claude now or something else. I still use my chat, okay? But Chat GPT is a great one. I've used it to help me rebuttal appraisals before. I did a little bit of a podcast on this, I think, a while back, and it worked. It was amazing. They put together the email, they looked at the comps I gave, they pointed out all the differences between what the appraiser gave for their comps and what my comps were shown and why my comps were probably more relevant than what the appraisal did, and they did it in a nice way so I wasn't offending the appraiser, and we got the we got the value we needed on it, so we could do the burr. All right. Um, same thing you can do with your guys' property. So you can a couple options there. All right, you can hold off and not do the refinance with that bank, go find a different one, or you can try a rebuttal and see if you can get the uh appraisal, appraisal adjusted. Okay. So here's here's the thing, guys. When I was starting this, I thought I needed a hundred doors to become wealthy. And wealth is relative, right? But for most people, millionaire is uh uh like a benchmark to hit. Like, hey, uh, you know, there's the song I want to be a millionaire, you know, that one. Uh you can do that with like two properties a year. Okay. And I'm gonna show you guys how to do that. So here's some some examples, all right. Um, oh, by the way, our deal, I'll go back to that 390 appraisal. We got a$50,000 rehab budget. There's about$5,000 of loan fees, closing costs, etc., etc. So we're all into it for like projected$290,000. So we created$100,000 of equity by doing one deal. Day one with no money out of pocket. Okay, it's gonna be rehabbed, it's gonna be fixed up. We sh theoretically shouldn't have to stick a ton of money into it going forward uh for CapEx and some of the other things because we're gonna take care of all of that stuff with that rehab budget. Now, tenants still beat things up, and there's still things that come up from being lived in and that kind of thing. So there's still maintenance costs that we budget for and the cash flow numbers that we're gonna have to stick back into it over time. But the goal is that most of the big ticket stuff, the stuff that eats up a lot of your cash flow in a year, is gonna be taken care of on the front end with that big rehab budget. All right. So that that is the example that got me thinking about this, guys. I'm like, man, how many deals does somebody really need to do in order to become a millionaire? And so I said, what's a realistic time frame? Give yourself five years. Okay, if you're sitting in right now and you're like, man, I'm gonna be a millionaire in the next five years, uh, you can do it quicker. Okay, and we'll talk about how you can do it quicker than that. But I'm just gonna give you guys some examples, all right? So the example one, I'm gonna give you guys, we're gonna use right around the median home price here in northeast Wisconsin in the Green Bay area. We'll call it$300,000. Okay, so this is very attainable. We're not talking about you got to go buy a monster apartment every year or do anything like that. You just gotta go buy like an average house or duplex or whatever the case is, four unit, whatever you're whatever comes across your plate. The asset type, I want to say this as well, depending on your goals, okay. The asset type doesn't matter. All right, some people are very particular, like I'm only buying eight units and above and whatever. And that's great. Um, you know, there's people way smarter than me that are way wealthier than I am, that they have a minimum standard of their buy box, and they will only buy, say, a hundred units or more, or whatever the case is. Awesome. It works for them. I'm more on the sense, and for this example, for you guys to become a millionaire, I don't care if it's a single family, I don't care if it's a duplex, a quad, it doesn't matter as long as it hits the numbers that I'm looking for, which is I want to be all into a property for 80% of that after repair value. That's the goal. Now, those aren't always as common anymore, but I'm showing you guys in real life, this is still happening. Okay, you can still do deals like that. Worst case, guys, out there, if you're listening to this, and you have some liquidity or you have access to some cash, or you have somebody who you could potentially partner with for a while on some of these deals, if that appraisal comes in low or your rehab goes higher than you thought, or whatever, something goes wrong with the deal, worst case is you're probably still gonna be all into that property for less than if you put 20 or 25% down plus your rehab, right? So, for example, my first one, I was freaking out. And I remember calling Tony Breyer and I was like, dude, what if that appraisal comes in low? Oh, what am I gonna do? He's like, Well, what's the worst case score? You're gonna have like$5,000 stuck into this thing? So what? Right. And now if it's cash flowing anything, now you have you can calculate your rate of return on your money. They call that a cash on cash return. So let's say I I've made 200 bucks a month on that thing over 12 months. That's$2,400. That's still, if I have$5,000 into it, that's still like a 50% cash on cash return. Pretty tough to do anywhere else. All right. So, worst case, you're still gonna be just fine if you have to leave some cash into a deal, most likely. Okay. But here's here's a I'm just gonna give you guys some examples. So 300 grand is gonna be our after-repair value. So this is the value that we're gonna use as an example for what this thing's gonna be worth once you're done. You're gonna buy and rehab, you're gonna be all in for$240,000 on this thing. Okay, so this might be a$200,000 purchase price,$40,000 rehab. It might be a$180,000 purchase price,$60,000 rehab. You get the idea. Okay. But here's the really cool part, guys. You just created$60,000 out of thin air. Okay. What do you need to do to be able to do these types of deals? All right. Number one, you got to be able to look at deals. Okay. So you got to get into some deal flow. Wisconsin discount property, shameless plug, but for real, we're putting out deals every single week to our buyers' list, guys. If you're not looking at those deals and analyzing them, if you're a Burr buyer, you're missing out on deals, guys. You're missing out on potentially 60 grand, let's just say, of equity every week. Could be more, right? Depends on the deal flow that we have. We just had some great duplexes this past week out to the buyer's list that's people scooped up. We had a lot of activity on them. It was great, but it's because you can literally just with our process sit on your phone and analyze deals and you can create 60 grand of equity, let's just say in an example like this, out of thin air, just by just because you're using your brain and you're analyzing the deals. It didn't take you didn't have to go out and swing hammers to do this. Okay. What I'm talking about too, I do not swing hammers. You guys have heard me say this before. That is a very low ROI type of activity. Using your brain is your highest ROI activity. And what I mean by that is exactly this. You can be analyzing deals, using your your your vocal skills to build relationships with lenders, right? And create building your network, getting to um real estate investing events, talking to different people, talking to your private network, posting on social media that you're getting into real estate investing. There's a lot of things you can do that do not require you to swing the hammer, okay? And you can create equity like this 60 grand out of thin air without you having to swing a hammer. You know what I do with this? I take I actually emailed my property management company last night. I said, Hey, keys are at the title company for you. Whenever you want to go pick them up, they are gonna go to the title company, pick up the keys, they're gonna go to the property, they're gonna analyze. I sent them an inspection report. I gave them kind of my high level of what I want them to do. They're gonna get quotes on some of the big ticket stuff, they're gonna send me an email. They're gonna say, hey, here's what we found out. What do you want to do? I'm gonna say, do this, this, this, don't do that. Let's spend the money over here, let's not spend the money here. I'm gonna have to submit an escrow request once we have some of the rehab going on to get reimbursed for some of the funds. So I'm gonna put I'm gonna front the funds and for the rehab and then I'm gonna get reimbursed. That's it. And they're gonna do all the work and they're gonna get it rented out. And I'm gonna create a hundred thousand dollars of equity with the deal I explained to you guys before by doing that. Okay, so these deals are coming across your plate everywhere. There's other wholesalers out there, guys, that you can get on their buyers' list. Real estate agents work with your real estate agents to help you find deals, guys. There's deals out on the MLS that get passed up all the time because people aren't analyzing. The other thing is just because something's listed on MLS for a price does not mean that's what somebody's willing to accept. Okay, that is their best case scenario, what they list on the MLS. If you're running your numbers and you have a certain target, make offers. Okay. The worst thing somebody can do is tell you no or go pound sand. So what? Move on to the next one. All right. So there's a lot of opportunities, but you got to create deal flow to be able to look at at deals like this, all right? To create things like$60,000 of equity. Now, what else is happening is, and this is not a guarantee, okay, but we are going to use this in our example just to show you the power of historically speaking, what has happened in the past. That does not mean future results will follow, but we can look back at past indicators to see what the future may look like. So what we're looking at here is 4% annual appreciation in Northeast Wisconsin is pretty common. Okay, it depends a little bit on the asset class, neighborhoods, those types of things. But historically speaking, you can almost bank that averaging out, you're going to create 4% appreciation. Now, what's really cool about this, guess, is that 4% appreciation is on that$300,000 ARV example we're giving you. Okay. Remember, you're only into this for$240,000. So you're getting an extra 4% annual appreciation on$60,000 that you just created out of thin air, plus the$240,000 if you're all in cost, right? I think that's really cool. That's something that gets overlooked in the burst strategy all too often. What that does on$300,000, that creates$12,000 a year of appreciation. Okay. And now next year that property is worth$312,000. Now you're getting 4% more on the$12,000. Okay. And the next year it's worth, I didn't do the math on this, it's gonna be worth even that much more, and so on and so forth. Okay. Now, in this example, I used a 30-year mortgage, which which again, with the lender that I'm using, they do 30 year amortizations. One thing that if you're using community banks or credit unions, a lot of them will do 20 or 25 year amortizations. So that is a question to ask when you're talking to your lenders. The benefit of having a longer pay to payoff is that you're gonna you're gonna be able to make more deals work from a cash flow perspective because your monthly payment. Payment's going to be lower. Okay. The 20 or 25 year benefit is you're going to get more debt pay down every year, but your cash flow is going to be tougher to make it work. Okay. So those are some considerations. But in this case, we're going to use six and a half percent as the interest rate, which you can definitely get in today's market at the time I'm recording this with community banks or credit unions, and um a 30-year amortization. What that equates to is about$3,000 a year of loan pay down. Okay. So total with the appreciation in year one on this example deal and the uh loan pay down, you created$15,000 of equity, right? We'll call it income equity, whatever you want to call it. But you created another$15,000 just by buying and holding the property and getting some tenants in there to pay down your debt. Okay. So here's the thing. We're just gonna look at like two deals a year, okay? And so one break down one deal every six months if you want. Now, obviously, if you do more deals, this will happen faster. Okay. But I put a little sample table together that I'm not gonna share here in the episode because I, you know, we have a lot of listeners versus the YouTube. But what we're looking at here, guys, is in year one, you got two deals, each of them created sixty thousand dollars. So you are at a hundred and twenty thousand dollars of equity. All right. I'm gonna give you guys another example of how this could work for you and why maybe this is a great strategy for a lot of you guys out there that are looking to replace your income and and not have to do whatever you're doing right now. Okay. Year two, you got four deals that you own. Okay, you added another$120,000. You added another$30,000 because you have that fifteen thousand dollar per property equity gain. Okay, now again, this is rough math. Somebody's gonna say, well, if I bought it six months later, it's really only eight thousand dollars or whatever the case is. Just hype, this is a hypothetical scenario. We're just throwing numbers out here, okay? But you created$270,000 now of total equity between year one and year two. In year three, six deals,$120,000 of new equity because you got$60,000 for those two deals you bought. Again, we're just buying the same ARVs. ARVs stayed the same for some reason for all these years. I don't know why. But you got$90,000 now between your other four deals of growth on your existing deals because you had the$15K per deal, debt pay down plus your appreciation. And again, I didn't factor in that compounding appreciation that you get uh year over year. So now we're at$480,000 of total equity within three years. So you got almost a half a million dollars of equity just by owning six different deals in three years, two a year. Pretty attainable, guys. Year four, we got eight deals, 120k on the new ones,$180,000 now of growth on the existing deals. Because now again, we're compounding that growth. We're getting 15k of debt pay down and appreciation on every single deal that we have. We're now up to three-quarters of a million dollars,$780,000 of total equity in this example. In year five, we hit the 10-deal mark. We're now double-digit deals. Add another 120K of equity. Now we are compounded, we have$300,000 of equity created with the appreciation and the debt pay down. And now we're at$1.2 million in equity, guys. Pretty powerful stuff by doing two deals a year. It's pretty achievable, okay, for anybody out here listening to this episode. The other exciting part about this, guys, is now let's say in five years you've got$1.2 million of equity. Okay. I'm gonna pull my calculator out here quick. 80% of that equity, just do the math on this real quick while I got you guys here. 80% of 1.2 million oops, I did that wrong. 1, 2, 2 times 28 is$960,000. Okay. Why did I do that number? If you wanted to refinance the properties at this point, you would potentially be able to pull out$960,000 of equity in this. Now that might be a little bit different because you might not have quite enough with the new properties. So maybe just saving half of that. Let's just say you you could only refinance$500,000 of the equity. So after five years, let's just say you said, you know what, Corey, I don't want to bring my my debt level up too high. I'm just gonna refinance$500,000 by equity. Maybe those first two properties that I had. Now maybe I've got$500,000 of equity between the two of those. Maybe it's the first four deals I've got$500,000, but whatever the case is, you're gonna refinance maybe four of them. Okay. You're gonna be able to pull up$400,000. Now that equity is tax-free, okay, unless you sell, okay. And in the future, uh IRS will always get their money unless you die. Then you could just step up and you can avoid it. All right. But you can pull up$400,000 after five years. A lot of people out there,$400,000 a year, tax-free, that's a lot of money. You can you could probably a lot of us could retire with that type of capital every single year, right? So be thinking about that as another thing. You know, when I talk to some of you guys out there, I love having conversations with you and spitballing how do we get you to your goals, right? And one of my favorite conversations with was with a gentleman who came out really, really strong in his first year, added like 40 doors in his first year. I mean, crazy amount of doors for one year for somebody, and got in a bit of a pickle with some of them, overspent, had some appraisals come in low, kind of got out a little too fast, probably, and had to had to pause real estate for a while and kind of got hurt a little bit by real estate and really pulled back and then really was you know not seeing the same numbers that they were seeing before, and you know, they weren't able to cash flow now because the interest rates were up. And so when we talked about the goals, it came down to they wanted to retire within five years, or not retire, but have the option to replace their income, which is a six-figure income. And when we ran a scenario similar to this, we looked at it, and that's that's really what we came up with. I said, Well, dude, you could just refinance if you do this every single year, if you buy two or three deals a year, you can just refinance the ones you bought five years earlier. And again, we don't know what the interest rates are gonna be, we don't the market's gonna be in five years, but theoretically speaking, you should be able to refinance your first year's properties five years later. And by the time you pull the capital out of that, you're gonna be able to replace your income tax-free. So what you're pulling in, say you make 120 a year, you're really probably putting 80, 70, 80 grand in your pocket. When you refinance, it's tax-free. You're putting 120 grand in your pocket tax-free. Pretty powerful stuff, guys. So that's from doing a few deals a year. It doesn't have to be a ton. All right. Um, so I wanted to bring this up, guys. I wanted to share this because it it's a very, very powerful, powerful strategy to become a millionaire with 10 deals. Okay, theoretically. Okay. Now, some other deals I'll give you guys. I've had another deal we've closed on, it's a duplex and Shawnee. And that deal in particular is about a$50,000 equity,$40,000 equity. So in that case, okay, it's on the smaller side of what we're talking about with this example. The ARV isn't as strong. It's$190,000 ARV. So this compounding we're talking about on the ARV, 4% on$190, a lot smaller than 4% on$300,000. The point is, though, just keep doing deals, guys. Not every deal is going to be perfect, okay? Some of these deals we got money into, very few of them, though, thankfully, we have money into. Um, but on the Burr deals, a lot of times, even if I have money into them, because they're still gonna be cash flow positive to some degree, not amazing. The cat it's not a cash flow play. Okay. There it's an equity wealth building play for me, but they still cash flow some. We get our money back here in no time. And even if we don't, within five years, I can refinance that property and pull all my cash back out of it. All right, I'm gonna share another example with you guys of where this was maybe went wrong. Uh, I got an a deal in 2018, um, found a deal from going direct to seller. I was sending out mailers at the time, and I had a gentleman call me, older gentleman, was ready to retire. He had 16 units in Green Bay. And I didn't know what I was doing with apartments at the time. I had only had duplexes basically. But I wanted to get into apartments, I wanted to do it. And um when we looked at at the units, I brought another investor in to potentially partner with. And when we when he ran his numbers, I mean, we were like half of what I ended up actually paying for the property. So there's a couple lessons here, guys. I knew my number was 80% of after repair value. And if it cash flowed to me a dollar, I was happy with it because I had the equity, right? I was I was making cash flipping and wholesaling, and I needed something to help me for the future, so I didn't have to do active income forever. Um in so the first two years of this property, I didn't cash flow a dime. In fact, I probably stuck a good amount of money into it. And what would happen is on apartments, what I didn't really calculate is how cash intensive they can be for a little while. And it doesn't come up right away unless you're going in and you're just you got a big budget and you can go in and redo every single unit. It's a little different than a duplex where you can kind of just like, okay, two units, boom, get them out of there, remodel them, re-rent it, right? A little easier. You know, 16 units, it's a lot more to think about and a lot more to coordinate. I didn't really plan it out. I just was massive, imperfect action at the time. I got in there, put it about every time a tenant would move out, we were looking at like 10 grand to remodel a unit, most likely, right? So after, and some of them were already done. After two years, I refinanced the property and I pulled out$240,000 from this property. Now, when I bought it, I didn't put any money into it on the purchase side of things. The bank had used collateral, meaning some equity that I had in other properties. They just tied up the other properties with a loan, um, which I didn't have to pay anything on, right? Which was kind of cool. It was just collateral. They just tied it up. They said, okay, we're gonna put a mortgage on this property, but I didn't have to like make extra payments for those properties. They just use that equity instead of me bringing 20% down. So basically got into the deal with no money. The money that I did get into though came from like I would, you know, this thing would kick off, say, 20 grand a month in rent or 16 grand a month in rent or whatever it was, and I'd have to stick 10 grand back into it. And then the bank loan and everything else. So it'd be like break even or less every single month. And then two years into it, though, refinanced and pulled 240 grand out of it, which was basically the cash flow I was expecting from it. I was expecting about 10 grand a month. And for two years, 24,000, 240,000 tax-free, it worked out that way. So again, not every deal is perfect. It didn't come out like, okay, boom, we went in, did it all right away. We were cash flowing, a bunch of money. It was amazing. Some of these take a while, some of these take consistency. Some of these are gonna be great, some of them are gonna stink, and you're gonna learn some lessons in them. But the point is, guys, it doesn't take a ton of deals if you're utilizing this burst strategy to become a millionaire. You guys can all do this two deals a year in this hypothetical example. Very realistic example, by the way. This is not some high in the sky type of an example. I mean, this is just average deals out there. They're not slam dunks, you know, that if you're doing these, they're not like amazing on paper all the time. And they're getting looked over, guys. I will tell you this. Uh upper lower duplexes in our area still getting looked over every single day, right? Those ARVs on those things have gone up like crazy over the years. Affordable housing is an issue. We're still seeing a lot of people passing on these upper lower duplexes. For some reason, they have a stigma with them. Everybody wants side-by-side duplexes. I can tell you what, the side-by-side duplexes, financially speaking, typically don't model out the same way that an upper lower duplex models out in my experience. They don't cash flow as well. Um, there are some downsides. Typically, you're gonna have a little bit tougher tenant base. So you may have a little bit more ongoing maintenance that you have to do. But I'm telling you what, to get into them and to get in the game, those are great deals. We're seeing some single families even coming back to be able to burr, right? Now, again, those are typically not going to cash flow very much, but I don't care. If I have no money into the deal and that thing spits off a dollar of income for me, I am now infinite cash on cash return. Meaning, if I went and tried to do this in the stock market, it's impossible. You can't do it. You have to physically buy a stock unless you borrowed money from somebody else, I guess, and then somehow you convince them to go buy stock with you with you having no money into it, and then you got to keep the dividends and give them a piece of it. I don't know. It would be very complicated. I don't even know how that would work. Maybe somebody really smart out there is doing that, and somebody's gonna hit me up after this and be like, hey, idiot, go check this out. That's great. Show me how they do that. But in real estate, you can literally buy real estate, get equity, get tax benefits, get debt pay down, get appreciation. And if you cash flow something, now you have an infinite return on money that you never even had to put into it. It's incredible. It really is, guys. And so I think a lot of times out there what I see investors were getting really picky out there about what we're buying, and that's okay. Again, everybody's strategy is different. But if you're going, man, my goal is I want to be a millionaire in the next five years. Follow the plan. Two deals a year, guys. That's it. All right, hit two deals a year. You can do it more. You do one a quarter, and you're gonna get there a lot quick a lot faster. You'll be there in basically three years. You're gonna be able to get there or quicker, all right, by doing this strategy. So I wanted to just share this with you guys today. Here's some real life examples. A deal that we did, here's a really realistic plan that you can follow to become a millionaire. And it doesn't take decades and decades of doing this. You can do this with five years or less. Very realistically, for all of you out there who are working W-2s or working full-time, parents, whatever it is that are listening to this, that have busy lives. You got sports going on, you got all these other things. How are you gonna fit this in the pockets of your life? Here's the here's the action steps to take today, okay, as we wrap this up. Find deals. Get deal flow going. All right. It doesn't have to be you actively going out there or trying to find deals. I will tell you that's probably not the way to do it. All right. That is uh, unless you're gonna be able to do this full time, that is a very time-intensive way to do it. Now we do that. We have staff that does it. We have about 15 employees that are out searching for deals all the time or coordinating deals or doing, you know, whatever the case is. It's a lot of effort, okay? Um there's but there's people like us who provide the deals. There's real estate agents who you can network with. You don't have to just work with one either if you're a buyer. Talk to a bunch of them, tell them what you're looking for, and then be ready to buy. Okay, so if they do bring you a deal, make sure you've got a plan of how you're gonna fund that deal and you're ready to rock and roll. Okay, so that's maybe a mix of people, private money. Now, private money, what I mean by that, friends, family. Who do you know that would want to earn 10% on their money? A lot of people. Okay. Go talk to them, see if just put it out there. Hey, Bob and Sue, uh, I know I've known you for a long time. Hey, look, I'm getting into real estate investing. Who do you know out there that would have some cash laying around and would potentially want to earn like around 10% annually on their money? Bob and Sue are probably, if they have cash, they're gonna say, I will, I would love to do that. But they may not, maybe they don't have cash. But they say, Oh, dude, you should go talk to my friend Joe. Joe's got a lot of money. He's always looking at ways to invest his money. I think 10% is a pretty good rate for him. Bam! Now you get him involved. Now you use him for the rehab and everything else. You go use a community bank or a lender, refinance him back out of it, and go do it again and just recycle Joe's money over and over and over again. All right. So that's the plan. You don't need you don't need hundreds of private lenders, you don't need hundreds of lenders. All you need is deal flow and you need to find some cash somewhere, right? Whether that's lending, private lending, HELOCs, cash, a mix of all of those things. And you can go recycle that same amount of money over and over and over again and create a million dollars of equity here in the next five years, guys. So I hope you'll take action on this plan. If you got some value out of today, guys, please share this episode. This is one of my favorite things to talk about and um hopefully help you guys out with. And I would love to get your feedback on this too. So if you got some value out of this, please share. Or if you want to battle me on some of the things I'm talking about, I'm happy to have a nice little back and forth debate about uh this because I'll I'll die on this hill that this is this is a great way for every single one of us to achieve millionaire status in our country. So, with that, guys, I will let you guys get back to your days. We'll see you on the next episode. If you're not on the buyer's list and you want some deal flow, go to Wisconsin Discount Properties.com. Plug your information in there. You'll get added to our buyer's list, and then either Reese or Connor from my team will probably be the one that reaches out to you. They'll have a little conversation to find out where you're at, where you're trying to go, and what resources you need. And they'll definitely plug you in and try to help you get connected with a lot of the resources to set you up for success, including talking about how to analyze our deals and get you calculators, lenders, private, uh, private or hard money lenders, property managers, whatever you need to try to achieve this plan. We also have a free Burr for beginners course. So if you have not, this is all new for you, you've never heard of the Burr strategy before. We have a free course on this. This is ready for this is for people who are ready to take action. Okay. So if you're kind of in a learning phase right now, it might be a little too early for you to do the course. The course is really going to force you to take action. And so if you're ready to start the plan, you're ready to start going after it, get the free Burr Burr Beginners course. Again, when Reese or Connor have that conversation with you, they can get you the link in the discount code to get you set up and start taking action today. Thanks for tuning in, guys. We'll see you on the next episode.