$1 Million in 4 Years with the 3 PayDay System with Rick Abbiati

Okay, guys, welcome to this week's Deal Structure Sunday. We are going to dive into a certified coach and High Six member, Rick Abbiati's portfolio, and you're going to see his journey through the process here with us at Smart Real Estate Coach and an important milestone of $1 million. Check it out. Good morning. Welcome, Wicked Smart listeners. It's Chris Prefontaine again, your host, as always, most weeks anyway. When Zach doesn't hijack the podcast. Today I'm joined by a veteran in the in our podcast and a returning guest and a high six and chairman member in the community, as well as a certified coach, Mr. Rick Aviati. I'm not going to have Rick go through his whole background, guys, because whether you're watching this on YouTube or whether you're driving, I invite you to go back to episode 371. And that is all around kickstarting your career in creative real estate. And what a cool time to do that since you're hearing this episode around mid-January, you're almost 1/12 of the way through your 2025. I know that sounds scary. And what a cool thing to do than to listen to Rick's episode 371 to go ahead and kickstart your '25, right? And then his next episode was episode number 461, not too long ago, about half a year ago, where we went over his First payday, one of his career with us, and that was $90,000 check. Both of those really cool for you to hear before the new year. Uh, Rick, with that as a little bit of an intro, as you're getting ready, welcome back, buddy.

Thanks, Chris. And thanks for having me.

Yeah, you bet. Um, so just for some of the Wicked Smart listeners that, you know, they didn't go back to the show yet and they're jumping on for the first time, just like a couple minutes, you know, you, what you did before, And, uh, how long you've been with us and anything else you want to share with that?

Sure. Um, so I, for nearly 40 years, worked in the defense industry, uh, former Navy, and, um, I was a systems engineer and then went up through, uh, management up to the, uh, director of engineering level. So I managed about 180 people at one point. Joined Wicked Smart in May of 2021, 90-day Jumpstart, and the eyes got opened within about 45 days. So I upgraded to Starter, and then 6 months later, Immersion, and just about 6 months later, i6. So, and then left my job just a couple days short of 2 years after being in the community. And then became a full-time coach. And I've been doing that since May of last year.

May of '23. Yeah. Right.

Yeah. Yep.

Awesome. So you mentioned 90 Day Jumpstart. I just want to say something so these guys are clear. And thanks for the summary. They can go back. You guys can go back to the other 2 episodes I gave you and get a lot more detail on Rick. And you could also have the opportunity to coach with him should you decide to look at the Wicked Smart community. We no longer have the 90 Day Jumpstart that Rick referenced. We do have a less expensive, much more robust actually program called The Apprentice. I would encourage everyone before Rick and I jump into, we're going to show you his portfolio actually. And if you're driving or listening audio only, you'll get the gist, but you're going to want to go over to YouTube, go over to Smart Real Estate Coach YouTube channel and check out what we're doing here because we're going to do what I call wealth stacking. We're going to talk about his portfolio a little bit and you're going to see what he's accomplished in the timeframe he just gave you. Rick's one of the few— there's a few that have done every level in the company and just kind of hop, skip through them to get to the, to the top level. Some jump right to the top and Rick just had to go through the process and learn more and more and get more confident as he went. The Apprentice Program, to check it out, is smartrealestatecoach.com/apprentice-pod for podcasts. Okay, so smartrealestatecoach.com/apprentice-pod. All right, Rick, I'll ask you for some comments for the Wicked Smart Listener later, right? Just kind of your gut feel, because you've been hanging out with us and doing the boot camps and everything. Before we do that, let's pull up your portfolio. All right, so as Rick pulls up this portfolio, guys, what you're going to see here, we'll try to talk through some of it for you guys on audio, but I'd much rather you go to YouTube and check this out because it's quite impressive. Rick, let's, walk through what we're looking at here. I guess let's go 10,000-foot view first to set the scene for those that are only on audio. So in the course of your, your journey here with the Wicked Smart community, it looks like there's 11 deals on this board, correct?

10 deals.

10 deals. Okay. Well, because one not sold, correct? Right.

Yeah.

So your numbers are shuffled up. I got you. So there's 10 deals showing here. All right. And is your brand new deal that we're working on as we speak on here yet or no?

No, it's— I have it on a different spreadsheet, but that's— that has that on there.

Okay, so let's go back to the first sheet. On this sheet, deals done, we have created how much in the free paydays?

Total? The 3 paydays, uh, $817,189.

Okay, so for those of you on YouTube, uh, and if you're not, please get your butt over there eventually. You can see column P is his payday 1s, payday 2s is column R, and payday 3s is column S. So total them all out at column T. So pretty cool for you guys to see this. journey. And then it actually, in the columns K, L, and M, Rick, you've got deals happening between July of '22 and now, right? That's basically the run.

Yes. Okay.

Let's, let's see, average payday ones just for the audio-only people listening.

It was $30,387.

Okay, so for those of you that might be new, we have our federally trademarked 3-payday system. Payday 1s are the upfront down payment because we deal with buyers only, true buyers that need time. So average a little over $30,000 for payday 1s. That was dragged down by a small AO. So that's a true average. Payday 2 is monthly spread between paying a seller or paying the mortgage. And what we get from the tenant buyer for you is— where are we? I see it. 329?

329. Yep.

Okay. Awesome. So full term on all these deals, it looks like just on a $15,000 in payday 2s.

That's correct. Yep. Because most, in fact, every one of them that have cashed out, which are in the lighter blue, hit the payday 3s. They cashed out shorter than the projected time.

Which dragged your average down a little bit, but good for the buyer and good for you to keep the cash rolling. Total payday 1 looks like a little over $300,000. Talk about payday 3s a little bit. How are we looking there? Total and average?

Payday 3s totals $369,356 and the average is $36,936.

Okay, so approaching $370,000 on payday 3s alone and approaching $37,000 on the average. All right. And the total we said earlier, just for the listener, is $817,189, totaling $81,719 average.

Yeah.

Okay. I know this will invite questions, so let me, let me do this for the Wicked Smart listener. If you have questions on Ric's portfolio, Just go ahead and send an email to me personally, chris@smartrealestatecoach.com. Happy to help you understand what we do here. When I use the word wealth stacking, also something we've trademarked, what that means is we're not going to do it here live. But what that means is when Rick or anyone has, say, 5 deals or more, could even be done at 3, we start looking at the terms on the deal, the seller, for example, Is anything owed 3 years from now, 2 years from now? And then is that a sandwich lease instead of a sub-2? Do we want to convert that to sub-2 and extend this deal type of logic? So wealth stacking just means massaging the portfolio, creating longer-term deals if that suits you as a Wicked Smart community member. Also creating sometimes a payday, what we call a payday 4 too, and even a payday 5. And how we do that, well, we take a lease purchase or a sandwich lease, turn it into a sub-to, then we could even turn the— so we just extended our term, essentially increasing our profits. Then we could also turn around and owner finance the buyer instead of doing a rent-to-own. Now you become the bank. Now you create another payday, another set of paydays. So all kinds of things we can do here. And I say that as a disclosure for those that think in the creative financing realm and in our niche in particular with the Wicked Smart community, that we have to cash out of these properties all the time. Now, Rick was new. Rick, you can comment on this, but you were new and you, you were leaving a job. So your goal was to cash these out and they cashed out, right? Any comments on that?

Yeah, exactly. Long term, over time, I will become the bank and owner finance when the situation is right. But I was looking for the— to build up enough capital. So that's why I decided to do that. And I did leave my W-2.

So yeah, let's, before we toggle to your projected screen, because I know that, that is counting some new deals we're working on. Um, well, you, you had 100-something employees, you said, under you, 180 or something. So the big, the big thing that comes up, as you know, as a coach, always is, well, I, my time, my job, always, always, always. So what would you say to them? Uh, they're listening, they're hearing this in January of '25, they're looking to perhaps leave their job in '25 or '26. What would you say to them as far as a time standpoint? Any nuggets?

The time, although it's a challenge to get through, once you kind of nail it down, what you did with me, Chris, is have me write down every 15 minutes during the day what I did for a week. And we went through that and found out that we could come up with some time. Be more effective. The other thing I did is typically my lunchtimes were 12:30 to 1:30. So I would schedule a time there to make calls and then I would go from like 4:30 till 6:00 PM making calls. Now, a lot of times my lunchtimes would get eaten up by, you know, when you're managing a lot of people, a lot of times that time just goes, it's a working lunch.

Yeah.

So I set aside, some extra time, fallback time, which is usually on Fridays and Saturdays to make up those hours.

Yeah. So it's not because I hear this and you and I heard it recently from one of our students. It's not, oh my God, I got another job. It's I have a plan to burn the candle on both ends for, in your case, 2 years to be done. That— did I summarize that properly for you?

You sure did. And it's, it's just an absolute wonderful feeling.

Yeah, especially when your first check was $90 grand. That didn't hurt the whole process. All right, Rick, let's toggle to projected and tell me what we're looking at there. I'm assuming it's this sheet plus deals you're working on.

Plus another deal that I'm working on.

There's one.

The two—

walk us through that one deal, Rick.

So this one deal, it's actually It's actually, um, a little bear with me here. Um, so this one deal, I just lost my window. I have to edit this out. Yep.

He'll edit.

Um, okay. So the one deal I'm working on, my VA contacted him about a week ago and I got on the phone with him. And he was very open to a sub-to-owner finance situation. He's living in the house part-time and he hasn't been able to sell it. And he made it clear he did not want to go through a realtor and give away that commission. So this fit perfectly. So I, rather than usually what I'll do is if he's that interested, I'll just schedule an appointment. In this case, I sent him the sell doc. Um, which is just introduction to what we do and the link to my website. And, um, did that on Monday, told him I'd follow up with him on Wednesday, yesterday. And he emailed me the day later and said, everything looks good. When do you want to meet?

Awesome.

So I called back yesterday and I got an appointment with him tomorrow.

Tomorrow, as of the time of this filming. So when you guys hear and see this, it's sometime in January. If you're on the podcast, if you're on the Deal Structure Sunday, I don't know when you'll see it. But Rick should have it well underway and no pressure, Rick, but hopefully you'll have it sold and then we'll do another Deal Structure Sunday and we'll walk through it. But for the sake of just summary, can you slide over to your right and walk us through verbally in case audio only? What are the paydays on this deal projected?

The payday projected paydays on this deal are a total of 196.

Uh, is that a deal under grant?

Yeah.

Um, yes, it will. Um, and the total 3 paydays with that deal combined is just puts me over the million.

Just over a million. Pretty sweet. So you're going to be going into, let's just hypothetically say '25. This deal gets signed and we get sold in the first quarter. We're walking into '25. Uh, going over a million and you're just shy of whatever it is, 3 years, 2 and a half years.

Um, just shy of 3 years.

Just shy of 3 years.

And, uh, just shy of 4 years.

Just shy of 4 total from 90 Day Jumpstart on.

Right.

Got it. Okay. Um, awesome. Uh, Rick, I'm gonna go ahead and stop sharing. Are there any last-minute thoughts that we should impart on the Wicked Smart listeners or call to action for 25 or anything like that? Like just whatever comes to mind.

I think the biggest thing in my mind is the return on investment in joining this community And taking advantage of the opportunity, just, you can't match it. If you look at the High 6, when I paid, you know, invested $100,000 in that, but to get a return on anywhere from $800,000 to $1 million in that short of time is unbelievable.

It really is. You're at 10x almost once we get this deal done.

Right, right.

Sweet, sweet. Rick, I appreciate it, buddy. We left some things hanging that we have to come back and do, and that is going to be one is to finish that Sturbridge deal when you get it done and sold. And hopefully you can do that in the next 60 days. No, no pressure. All right. Thanks for being on again, buddy.

All right. Thanks a lot, Chris. Take care.

All right. Wicked Smart listeners, that wraps up our time together with the master, Rick Abbiati. He's simply awesome. And it would behoove you to Come hang out with us at our In the Trenches boot camps here in the office. They're very small. They're very private. They're in our office with myself, with Rick. That's why I'm bringing it up with my son-in-law and partner Zach and my son and partner Nick. And there's 4 of us in a small conference room. The conference table holds like 10 and we put some extra chairs in there and we hang out with you for 2 and a quarter days, 2 and a half really. Can't get more hands-on than that, guys. And I promise you, once you learn how and why, what we do, when we do it, etc., You're going to leave with deals potentially. And if you can leave a bootcamp that's free, by the way, for all apprentices and associates, you just got to find a way to get here. If you can leave a bootcamp that's free and leave with a 3-payday deal that's somewhere between $45,000 and $350,000, Rick's average around $80,000 or $90,000. Wouldn't that not be an amazing experience for 2025? I think it would be. Let me give you the link so you can understand what the bootcamp is. You can go read it. And listen to some videos. However, it's free with apprentice and associate, like I just said. So for more on the apprentice— sorry, more on the In the Trenches program, go to smartrealestatecoach.com/ittb. It stands for In the Trenches Bootcamp. ittb-pod. So smartrealestatecoach.com/ittb-pod. You guys would be extremely well served. By getting in and doing one of those with us. If you're hearing this in January, there's one next week and then there's one in March. I would again urge you to get on that list because they fill quickly. If they're already filled, then just ask support@smartrealestatecoach.com when the next one would be, because again, we do fill them quickly at that size. All right, everyone go off and make it an outstanding 2025. Don't waste at all the rest of January. So you can at least jam in 2 weeks or so, depending on when you're seeing this of the year here, so you don't waste 1/12 already coming February 1st. Let's make it count. Make it a great week. Hey guys, are you simply sick of juggling a dozen different software tools for your real estate business? I know I was, and I know I'm not a tech person, so it was frustrating. A subscription for this, you got a subscription for that, and they don't even work together out of the box. That's very frustrating, especially in the real estate world where your best time spent is going to be out in the field or on the phone with sellers. And now you're stuck hiring a tech guru just to make all that sync up. So let's ditch the chaos and let REI BlackBook handle everything. Automate your lead follow-up, track every deal, analyze things quickly for you, make offers all in one platform. In fact, with the Wicked Smart platform, we now have access, if you're in the Wicked Smart community, to all the other associates' properties. Can you imagine that? So you're brand new in the business perhaps, and your seller looks on your website and sees 20, 30, 40 properties, instant credibility. So you're going to get everything on REI Black Book from our custom workflows for lead generation all the way to closing. It has it covered. Try it today for just a buck. $1, guys. Visit smartrealestatecoach.com/reibb-dd. smartrealestatecoach.com/reibb-dd. D as in dog. D as in dog.

Thanks for listening to the Smart Real Estate Coach Podcast. If you're ready to invest in yourself and take your investing to the next level, check out our 90-Day Jumpstart Program by going to smartrealestatecoach.com/jump. That's smartrealestatecoach.com/jump because now is the time to act boldly in this unprecedented market shift.