In this workshop-style discussion, Chris Prefontaine and participants (Rick, Zach, and others) explore practical tactics for building a lasting real‑estate legacy. Chris explains his "payday" approach—setting aside a portion of early cash‑flow deals to fund future investments—while highlighting how his own portfolio grew to 76 owner‑financed deals generating $28‑30K per month. The conversation shifts to owner‑financing structures, contrasting 30‑year terms with early payoff options and how these choices affect the ability to pass properties to children. They discuss sourcing deals through targeted mailings (e.g., 276 pieces seeking 4‑10 free‑and‑clear units) and the importance of diversifying asset classes beyond single‑family homes. Chris emphasizes "stacking" deals toward personal goals such as building a 401(k), supporting parents, or funding a child's future, illustrating how portfolio allocation can be purpose‑driven. The session concludes with logistics for the Smart Real Estate Coach program, outlining the Apprentice group sessions, the Associate one‑on‑one option, and homework (a strategy call example with Jeff) to prepare participants for the next day’s planning.
Chapters
Put half of your payday 1s away till you're comfortable. When we were at peak, going into COVID coincidentally, we had like 76 of these running. Our payday 2 spreads was approaching $30,000 a month, $28,000. So it takes a couple months of that and you go, boom, those are, those are over here in that account now. So you can, that's why I say everybody's different. We didn't start like that. I did, you know, my first 12 deals and then built, built, built, built, built.
No, no, I guess what I was talking about, what we— what I mentioned earlier as far as like, um, the ones that would be owner financed, right? Oh, that's right, right. That, that balance of having ones that were owner financed.
Yeah.
Versus which would end at a 30-year point and then the ones that you have.
I think most of those are going to be predicated upon your seller. You're solving for them, so that'll dictate what you get for a term, right? I wish we could handpick that. Is that easy? But it doesn't mean you have to do a deal either if it doesn't fall within the bucket you're looking for.
Well, right, right. But I'm, but I'm saying like for your portfolio, right? So say for the ones, right, so the ones that are 30-year term right there, typically they would be paid out maybe before that 30-year term or, or at that 30-year term if you're doing a traditional owner financing, right?
Right.
But the ones that you keep as a company, you can, you know, pass down to your, your children, right? So, so that, that's what I'm saying for your portfolio. Like you just mentioned, you have 15— you all, you had 15 that you were renting to college students.
Uh, one house on 15 acres.
Yeah, one house.
Oh, okay. If I were you, for your kids, we could talk about this with your plan.
Okay.
I'd also look for other asset classes.
Okay.
So we did a mailing one year when Kayla was running the office, my daughter, and we said, we only mailed 276 pieces. What were we looking for? 4 to 10 units free and clear so we could do owner financing with them. You can go do that and go, I want to put 3 of these in a portfolio for my kids. Right? You can do that. So you don't have to stick to houses. You can do, we can talk about a nice mix for you, for the family. Are these other 2 deals that we didn't talk about? He took them both on pointedly with tenants in place and he's going to cash flow them. It's really good cash flow. I think it's 2 or 3 more years, then he's going to convert it to repays or he might sell it. Who knows? So you don't think it's stuck in a box. Everybody's a little different.
Okay.
When Rick first started and left a nice healthy job salary, his mindset was probably a little different. You can comment if I'm wrong with, okay, I'll let these cash out now because I want to get some cash going. But then as it grows, he's probably like, I want to keep this one out, let it ride.
Right?
Right.
Usually, usually when you get to the point where you have You have buyers that are like just getting close to getting their own loan. You're going to see that payday and that like, oh, okay, if they close it and get their own loan, I can be out of it and get this big payday. Chances are you're probably going to offer that bigger payday. Or, but there's always that option to do it more long-term and keep it and order financing from them. It just I don't know, the real estate that we've been involved with is usually— it helps just to let them go forward and get their own.
Depends how aggressive you're going at your whole business in life, right?
It just depends.
And listen, are you stacking towards a goal? We haven't talked about this. Okay, so when I first started, I'd move in from an oceanfront estate here in Newport to a 1-bedroom, 900-square-foot apartment and sell my cars and walk to the office. I was in a different spot. Than I am now, right? Kayla and Zach say, we're getting married. I'm like, oh shit, that means I got to pay for it. I was stacking deals specifically then with one thing in mind. I got to get my 401 built up. So what I said, stack towards a goal. You can stack towards helping your parents, stack towards helping your kids get whatever you want. You can allocate pieces of your portfolio to do that. And that's what we help you with.
The drawback of letting them cash out early Is I had a few of my deals that went from 6 figures to like $90,000.
Nobody's crying. Yeah.
Give him sympathy.
Correct it.
Shoot up his averages.
Right.
I had to change the slide. Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that.
Good question. Like, I know you talk about all of our plans, uh, uh, are we gonna sit down— you're gonna sit down with us either one-on-one either later today or tomorrow?
Not one-on-one because I wouldn't have enough time to hit you all, but we're gonna do some planning tomorrow. Okay, that should send you guys off because we're only going tomorrow till like 11:30, 12. Yeah, this should send you guys off enough to then go do that. If you're staying at Apprentice, go do that with the coaches on the group. Um, if you decide to move to Associate, get some one-on-one time with the coaches. Um, there's— in your homework tonight, there's a strategy session that you're gonna like that Zach did with Jeff, who you just saw. Jeff gave us permission to use it. You're gonna watch that tonight to prep for tomorrow, and you're gonna see how Jeff went through all his numbers. Now, that was before he knew he was getting laid off, but it'll give you a sense for how he did his strategy call with Zach.
