Completed the 90 day Burn - what happened?

And like that, we're live twice in one day. It's almost midnight where I'm at, by the way, so I'm aware that most of the country is not going to log in live to this right now. However, I was just doing the math to see how far we were through the 90-day burn and discovered we're all the way through the 90-day burn. We did it, we made it through. So, um, for those who are unaware of what the 90-day burn is, this is a business practice, by the way. This goes beyond just real estate, though holy crap, we bought a lot of real estate since this happened. The 90-day burn is something that I invented actually back when I was at the CoStar Group. This is a method of absolute intense work where you work on physical, mental, business goals. You basically just jump forward, in my experience, years into the future by an intense focus on your business and your goals for a very specific period of time. In this case, 90 days. Now, it came up back when I was working at the CoStar Group. I had a boss that said, hey, for the next 90 days, I want you to make learning our product your baby. Live, eat, breathe CoStar, CoStar products, LoopNet, Apartments.com, learn it. And I did. And I became one of their best reps very, very, very quickly. I scaled up the company. I loved my time there, and that helped launch me into my career. I took that 90-day principle and I expanded it. This is now my third time going through a 90-day burn. The first time I started my first company. The second time I got our real estate portfolio off the ground. Time number 3 was the most effective. I've practiced this. I'm going to share what worked, what didn't work, some problems with it, and how we're going to adjust. This is the only time I'm doing it this year though. You don't do this crazy intense work, uh, for 90 days all the time. That would just be called having no life and being absolutely insane. I'll be limiting the amount of comments that I answer here because it is late at night. I'm just sharing this because I wanted to end the The 90 Day Burn on the final day and share it all with you guys. All Nighter Hider is here. You're right, pulling an all-nighter. By the way, I usually work 9 AM to about midnight. That's my usual schedule. I eat like 2 times a day. 90 Day Burn didn't help any of this. But I'm gonna go share these principles here because it's gonna help you in your business and your real estate and really with everything you do. But makes me very happy that All Nighter is here on the video that is launching quite late at night. So 90-day burn, here's the rules. 90 days, every day, no days off. We're gonna work an average of at least 12 hours a day. Now, I usually work at least 12 hours a day, so that part's not that hard. Throughout this last burn, I averaged closer to 17 hours, which is excessive. That means I actually lost more sleep than I really should have to perform optimally. I had a few days where I was working 20-hour days. I sleep 4 hours, I get up, I'm at it again. That is just what my business happened to need during this time. It's beyond the call of duty here for this 90-day burn, but you're really shooting for about 12 to 16 hours of focused work every day for 90 days. Now in this, you're going to make sure that you stay sane and fit. So you're going to eat well. For me, I always eliminate alcohol completely, though I haven't drinking really anything in over a year. And work out at least 30 minutes a day. I give them super intense so that I can get all the way through them and actually get health benefit. But I do intense focus workouts, 30 minutes. I'm usually on calls during my workouts, so I do work and workout. But you get the health up, you try to get good sleep. I failed on this one, but you try to focus on specific goals. My goal is to expand my portfolio above 200 units I wanted to stabilize my property management company, which was starting to lose money as I focused on one county. I actually decided to walk away from a lot of business, had to restabilize my company. I wanted to go ahead and get my house fully funded and ready to go in Texas. I did a business acquisition I've been working on for a long time, and we did a few other projects. There's also a painful LLC where we had a bad partnership that I was dedicated to figuring out how to sell that LLC. So here's what happened in the last 90 days. Number 1, we did sell that 7-plex. We actually sold it. It wasn't seller financed by us, but we actually took the seller finance note we had. They agreed to increase their interest rate by 1 point but pass it, same financing terms with 1 point more of interest. So brought it to a 4% interest loan, maybe I think it was 4.5% actually, and pass that to the new buyer. We closed on that. They got a fantastic debt product. We got out of a partnership we did not want. And on an LLC that I think by pretty much all metrics failed its objectives because none of the partners could agree, we couldn't finish renovations, we ended up with a very profitable exit. Now it could have been a lot better., but ultimately we bought this $50,000 down and a little over 2 years later we exited with $200,000 of profit as an LLC. Overall, not a bad use of money. We just about 4x the money in the deal in 2 years. Problem is it was a fairly little deal with a whole lot of pain. We got through it and it was the most paperwork I have ever done in my life. It was so much negotiating, ton of work. We sat down, we figured it out, we got it done. We picked up a couple of projects that I think are really interesting. So we were working on our first hotel conversion. We picked up another one we've talked about a few times on our channels. It was a $1.6 million purchase financed with hard money. We're going to get through phase 1, which is stabilize it, and then we're going to bring it into mezzanine debt. So it's going to be— interest rates are probably going to be closer to 9% instead of 13.5%, which we have right now, which Okay, it is expensive money, but we're going to stabilize it there, pull some additional capital out, finish the building. Cody and I bought it without partners. That project finished and stabilized is going to be worth about $3 to $3.1 million. So we have a lot of room to work on it. We started with $200,000 in the account. When we refinance, we're pulling another $200,000. So we have a $400,000 rental budget. We only start the project with 50% of the budget. So a big piece of this, which is actually kind of fun, was planning what things do we do with the money we have to make sure that we're stable enough to refinance and get the rest of the money. It's a two-part game on this one. Really exciting. We also bought our first mobile home park, which I'm very excited about. In addition, we are participating with a friend, Yon, who runs a company called WARI, which is the Washington State Real Estate Investors group. It is a huge investment group in Washington State, and we are partnering with him to launch his course on mobile home parks. So we're going to be covering the creative finance side of it. It only felt appropriate that if we're going to do some content on mobile home parks and the unique creative plays that we'll film, launch, put together a whole course specific around his strategy and how ours blend together, we had to buy a mobile home park. We buy a 25-unit on the water right next to the Robin Hood Village Resort, about a 20-minute drive out from there. That was exciting. Also bought a couple of companies. I'll say more on those later, but 7-figure companies that you're going to see start rolling into more things that I personally do and I think are really going to help move Cody and I forward. We recapitalized a lot of our accounts. We've got a ton of renovation done. I made multiple trips to Moses Lake. And my Texas house is underway. Pretty much all the studs are up, and apparently sometime next week we're gonna see a roof on that thing. So it is, um, we hit a lot of the goals. Now, where did we fail? I did not sleep enough. You actually want to work on maintaining your health here so you can stay focused. I actually gave myself a good deal of stress this time. The last few times felt easier physically. I had a lot of nights where I was just so focused on what do I want to get done and how do we take on this many projects. How much money do we have to move from here to here, I actually slept very poorly, which made my workouts really hard to do. And there were definitely times on this one where I just needed to take a break. Breaks are kind of inefficient when you're trying to stay really intense for 90 days. And for me, by the way, a break is an hour of, hey, I'm gonna disconnect. I'm gonna maybe turn on a TV show. I'm just gonna recharge for a second. Also might be, last 2 times I did this, I was in my 20s or just just, just turned 30. I'm now 32. There may just be a fact that I'm older and these are harder to do. I think if anyone implements this strategy in their business, they're gonna go a lot farther. I did the amount of work and I, I've kind of mapped this out during a 90-day burn. I can usually do, I work twice the hours of any of my employees and I've always outworked everyone in my orgs, but I know I'm putting in about 2x the time that they're doing in a day. And I actually have some great employees. Outside of the sleep deprivation, which is not part of the game plan. I stayed very focused. I blocked my time really well. I think my efficiency of how much work I was getting done per hour worked throughout the entire thing was also about twice of what anyone else on my team would typically do. Doesn't mean I was perfect, but I think I was able to do the work of about 4 people for 90 days, which means in 90 days I got a year's worth of work done for the average very good employee in my org. That feels really good. I got to start 2024 basically a year into the future because I spent the time doing this particular strategy. Again, I developed this as a sales rep just because my boss said, hey, hyperfocus for 90 days, make this your baby. I did. Skyrocketed my career. It has always been fantastic, like absolutely fantastic for us. In those last 90 days, I also realized as part of my mission what I really want to do at the next level. So I'm at 200 units, I'm paying down some debt, I am expanding. What do I really want to do? I think that goal setting is really important coming out of this. I love the community that we're building on multifamilystrategy.com. It is really fun watching deals consistently start to come together. It's fun traveling around and getting to see people in our programs and actually walk their properties. I'm going to be in Atlanta looking at a couple deals from our mentees while I'm in town. That's going to be on the 27th, by the way. People should make that, make it out to that. That's next week. We are going to put a ton of resources and effort on the media side of the business. I want to share everything with everyone. So I am partnering with a buddy on his business channel that has not been taken off yet. It's called The Business Brotherhood. My good friend Caleb, the two of us are going to be talking a lot more on that. Cody's also talking about business on his channel, so absolutely go check him out. Cody has a channel that I'm going to be contributing a ton to as well. So a lot more focus on business. You're going to see a lot more questions answered. You're going to see more lives, more podcasts, and I am making a commitment to try to make it to pretty much every major city this year for some sort of real estate speaking event. So if you guys have an event that you want me to participate in, you think there'd be an interest in creative finance and building a business and running a real estate portfolio. I noticed pretty much everyone only books me for creative finance, so I know that one's the heavy hitter. I would love to be there. So far we're doing Florida, Atlanta, uh, Dallas, San Antonio, San Diego, Seattle, Portland, Boise, and I'll be in New Jersey start of— what is that? I think it's April 2nd. I'm going to be speaking in New Jersey. So we're going to be all over the place. Really excited to do that. I'm going to answer a couple questions in the chat because I do like to do that when I go live, and then we'll go ahead and call this a Short but quick, uh, adventure here at, uh, basically midnight here. So how much do they quote, uh, for the new septic and leach field? Are they fixing that? So they're looking for the, the new drain field. We're going to know— we have to move one. They're doing one more perk test. We need to move one of the damaged trailers. We actually have it all figured out. They know where they're moving. Uh, instead of going through a full eviction to get rid of them, we're just going to go ahead and pay to help them move to where they're trying to go to. We're going to clean up the trash on that site. Conveniently, it's the ugliest trailer in the entire park. This is really beat up RV with a lot of trash. We're going to get it out of there. There'll never be another thing on it. That's where we're going to put part of the new drain field. We're going to do some perk tests, but we're going to get a final quote. But right now that account is overfunded. It's a 25-unit mobile home park. The septic field, it has problems. It's not completely shot, but when we redo the drain field, uh, we have 6 figures in the account ready to go. I think we're going to come in safely under budget. All we have to do is fix a couple of collection problems and we're pretty much done with the project. Fix the septic, clean up the trash, maybe one eviction, and we're off to the races. Shout out from Reno, Nevada. There we go, there's someone staying up at midnight to watch my channel. Why you are— why you're watching me at midnight, I don't know, but I appreciate seeing you here. Thank you, Johnny 775. What's the square footage on the new house? Square footage on the new house is going to be 3,800-ish, about 4,000 square feet. Now for context, I'm living in the biggest house I've ever owned personally. It's 1,300 square feet. I have a sizable yard, and sizable for me is I'm on a quarter acre. So in my little neighborhood in suburbia, just outside of Seattle, it's not terrible. But I have lived way under my means for a long time, and this will be the first time I'm really expanding. Funny enough, when I sell this house, the new house is only $100,000 more than I'm probably going to sell this house for. So in context of the difference between Dallas and Seattle, 1,300 square feet pretty much trades up to about 3,500 in, uh, in the Dallas area. Buy that for $850,000, by the way. So if anyone wants to know the price per square foot, you can, you can do the math there. $850,000 and, uh, 38,000 square— uh, 38,000. Let me try again. 3,800 square feet. 38,000 would be a, uh, that'd be a heck of a mansion. 38 $1,300. So I'm basically a little more than 3x-ing my, uh, house size. Is Chucky going to be on the Brotherhood channel too? He might be. I don't know what he's doing business-wise. Caleb kind of took off on a lot of the businesses. We should get an update from him. That is, uh, the channel that Caleb, I think, recently renamed, but we're really excited to have, uh, uh, be doing that. But yeah, they'll be— I'm imagining we'll probably see him there. We'll see Cody over there. Caleb's putting together the roster for who we're going to see on there, but look for a lot more content on that right now. Beta testing the name Business Brotherhood, but we really want to talk about multifamily strategy. We're going to talk about real estate here. What Caleb's really done a lot of, and I'm really excited about, is Caleb's sales company has done very well, and he's learned a lot of things at a young age. And we've met a lot of other entrepreneurs who are doing various projects. I want to talk some business. Real estate is awesome. This is always going to be the main channel, Multifamily Strategy, for those watching us here. But give that a follow, uh, Business Brotherhood, name being tested. We're going to talk business, we're going to talk best practices, we're going to talk hiring, firing, things that wouldn't usually come up on the multifamily channel because you don't do a whole lot of hiring in multifamily, at least I don't. We're gonna talk about it all over there, so stay tuned. I am dedicated to be a contributor on there, and you'll see a lot of me over there. Thoughts on car washes and laundromats? They're cash flow heavy businesses. I mean, it's a pretty basic service. I like them, uh, like fundamentally I like them based on they serve a need. And it's pretty easy to do the math for cash flow. Simple and stable services is where I'd always start. Now, the big money is usually made on bigger tech ideas or on something that really solves a very innovative problem. A lot of those problems take a lot of time and a lot of money to solve. So when you're getting started, that's why I love multifamily so much. Stability, predictability. People will always need housing. You collect the rents. If you have more income than expenses, you get to reinvest back in the property. You make your communities better. You have happy tenants, you have income on the property, and your net worth goes up as a result. Multifamily is awesome. Car wash, laundromats, they all work fairly similarly. Easy to do the math. You just have to come in and do the business better than the last person, which in almost every business, pretty easy to do. Just wanted to answer some of those questions. The 90-day burn is a business practice that has worked well for me. Hopefully, it works well for the rest of you. I'll be sharing more about this one. I'm not going to do one for a second. This last one was intense, but today's the last day, 90-day burn. We made it all the way through. Average, we're right around 17 hours a day of work. And, it only felt fitting that here we are at midnight of the last day, putting in the last couple minutes. Till next time, we'll see you guys on Multifamily Strategy, probably a good deal on the, uh, the Business Brotherhood, and in all the other channels that I broadcast to, including, by the way, one more place to follow me. I finally am on Twitter, so if you guys want to follow me, I guess it's X now. If you want to find me on X, I'm Christian Osgood. I think the tag is MF Strategy. We're going to be posting some quotes over there, some inspiration for all of you entrepreneurs and real estate investors daily. So if you want a little different flavor of Christian, I'm putting a lot of my motivational stuff over there. So if you need some mindset tweaks throughout your day, stay tuned. That is on X, formerly known as Twitter. Till next time, talk soon.