How I Bought a $4 Million Resort With None of My Own Money

Friends, I'm on a bench at my creek next to my wedding venue at my resort that I'm about to walk through with you explaining how we bought this and hundreds of other rental properties around the country using zero of our own dollars. Now, this is not an ad for you to get into hospitality. However, I will share a lot about this project and the other projects that we do. If you think you need to save your way here or that you even could, most people can't. In fact, I have about a $100 million portfolio. I started my 20s without any of the qualifications to get here. Not the credit score, not the income, certainly not the connections. I'll show you how the game's played as We tour the Robin Hood. So, uh, welcome. First of all, let me walk you through these. Just set these up, figuring out where I want to actually put them, but got a bunch of little frisbee golf things to go around the 13-acre resort. We got trails over there that people can walk through, so gonna set them up strategically. Behind me here, we just got a new wedding tent. See if you guys can see that. Uh, that is the stage. We have concerts. We're about to do a 4-day music festival. We're talking farmers market, musicians playing all day long, uh, at that venue there. And you'll walk through a bunch of the cabins as I'm walking around the back of the Robin Hood here. We purchased this when I was 29 years old. Seller was ready to retire, could not find the right buyer, so they financed us for 4.5% interest on an 8-year note. Now today, the operations of the Robin Hood, we're up about 47%, 48% from where we were at even last year. This makes a lot more money than it did. The opportunity to buy this Came from just simply an owner who was ready to retire. They wanted to move to Costa Rica. We solved their problem by taking the job that they had off of their hands. And for a lot of people, when you're ready to retire, if someone will pay you $4 million to take your job, you'll probably do it. Now, as you may have guessed from the channel name, it's Multifamily Strategy. I'm a multifamily guy. I have 650 multifamily rentals. A lot of them, 70%, were purchased with creative finance, the rest of them with creative equity. So you can stack the money however you want. You can get creative on the financing. You can get creative on who else owns it with you. You can even use the real estate to buy them out. There's a ton of models for this. What I want to highlight in this video though is there are opportunities like this— which, this is a one-of-one actual property— there's opportunities like this all over the country. There's multifamily all over the country. I've done this red states, blue states, big cities, small cities. You can do this too. Let me walk you through the pub. There's a bunch of people setting up for an event there, so be a little bit quiet. But check this out, look at that, setting up For hood stock. Isn't this just the coolest? These are the type of spaces that you get to own when you make the decision of, hey, I'm going to buy beyond what I've actually saved for. Was this a difficult project? Yes, this is a job. This is a resort. This is a business. However, to be 34, to have this resort by itself making enough money to pay for my house, my family, our insurance, our entire cost of living is covered Solely by this operation right here. Then you stack on top of it 650 other rentals. I'm not going to say we're rich, but I'm going to say this is, this is pretty sweet. 5 years ago, I was working at the CoStar Group, getting up at 5 a.m. to take the bus into downtown Seattle, working for loopnetapartments.com. My best year, I made almost $200,000, and that's a pretty good salary. The year before that, I made about $100,000. So for context, I'm not a hyper high income earner. I was successful in my 9 to 5, I had aspirations of getting out of the 9 to 5. Oh, by the way, check this out. This is our backyard. Best hydrangeas I've ever seen. There's a gorgeous purple. Creek's right there. Getting to just stay here myself at my own resort, it's the coolest property I own. It's cooler than my house in Texas. We just have this beautiful, beautiful space here. When I was imagining what life could look like, it could not look like this at the CoStar Group. There is no iteration of me being able to find this opportunity To save up for it, to buy a four million dollar property conventionally. How would I have ever even qualified? However, doing projects like this, you get to do some pretty unique stuff. Why don't I walk you guys all through the part that no one ever gets to see? There's my tool shed. I know it's like an honest to God commercial operation. There's something amazing when you get into business, like get to walk your own properties and just realize, wow, we actually own this. We did the thing. And the amazing thing for me is that the dream was always there. It was always real. We always could have done this. Opportunities like this sit in any market around the country. Did not have the credit score, did not need the credit score, did not have the experience. Uh, experience would have been helpful, but didn't have it. Closet used to be the old liquor store, is now Cabin 15. Huge cabin. Got these individual cabins over here. But we built an entire business out here. At the same time, I built my PM company in Texas. Now, I'm not a huge fan of starting 5 or 6 businesses at the same time. We had a legitimate property management issue that we had to solve, so we solved the problem, actually built a company along the way, and now manages about 1,000 doors in Texas. It's called Brazos Asset Management. Sweet company. We've stacked all these businesses. All of them are individually profitable, and we don't have any debt on anything except for the real estate itself. Now, the rule, the golden rule to do all of this, you need to have cash flow from day 1. If you get paid from day 1 to own all the cool stuff that you want, what usually happens over time, appreciation happens. We print more money. So debt is devalued. You have all of these awesome things that happen that make you very, very wealthy over time. In the meantime, you just have to make sure that you're getting paid along the way. Cash flow solves that problem. So we structured this deal. with an interest rate where it cash flowed. I was able to buy the resort, stabilize it. We did the exact same strategy with the entire multifamily portfolio and with the property management company. Gotta cheat a little bit 'cause I'm still my biggest client. However, we started that one with profit. So we have a debt-free company, manages 1,000 doors and has about a dozen employees at it going around not just the state I live in, Texas, going around the country. I'm back in my home state of Washington. I was in a coffee shop Yesterday, getting to check it out. Commercial building that we renovated. It was a completely failed building downtown. It shared a parking lot with a building I already owned. I figured, what the heck, let's do it. It is so cool to drive into a small town, go into a coffee shop, and go, hey, I, I own this. Not only do I own this, we renovated and made this space possible. We've contributed to the communities around us as a business owner. Making money is cool, don't, don't get me wrong, and, and we do quite a bit of that, but profitably fixing problems for the city and offering things that people actually need and want— a lot of people don't know this, but the Robin Hood used to be a Huge music venue. People from the community used to use this space a ton. That died over the course of the last ownership. A lot of the events shut down. There used to be a restaurant, the pub used to be active. They were all shut down. The reviews started tanking, but this was no longer a space the community got to use. In a little town like Union, Washington, these are one of the spaces where the community can really get together. Speaking of the Afreda Project, Matt Wang owns that coffee shop with me. We better run before he gets to us. But I was just kidding. But this is the type of stuff you get to do. You can do it regardless of the income that you currently have. Negotiate the deal first, find that product that allows you to cash flow. In this case, for us, it was 4% or 4.5% seller finance note over the course of 8 years. We're already 4 years in, in a position where we could refinance if I wanted to, but I kind of love our interest rate right now, so we're going to keep it up for the time being. Today, project that we're getting to do is I'm picking where we're going to put 25,000 bulbs So we can extend our peak season a little bit by having this unbelievable, gorgeous flower bloom over the whole resort a little bit before our peak season. So extend that by about 3 to 4 weeks. Should be actually probably the best dollar-to-dollar investment we've ever made in the space. But having the privilege to get to do this is something that you can do too. Want to share this as a little behind the scenes with me and an encouragement. Now, if you, if you want to learn how to do this, there is a link below to check out our community, Multifamily Strategy. I coach more than any other human being online. It's me live 152 times a week, plus email, tech support, the whole, whole nine yards. There is no mentor who is as active as I am in buying real estate and in spending the hours coaching the real estate. If you want to actually work with me, not just the coach I assign you to, you can check out that link below, talk to my team, see if it's a good fit for you. But this, regardless of where you're at today, this is possible. See you guys soon.