Aug 19, 2024
Aug 19, 2024
Aug 19, 2024
How Two 23-Year-Olds Built a $25 Million Real Estate Empire
Discover how Cody and Christian navigated the challenging world of real estate with zero money down
Discover how Cody and Christian navigated the challenging world of real estate with zero money down
Discover how Cody and Christian navigated the challenging world of real estate with zero money down
In the world of real estate, age and background are becoming increasingly irrelevant. Just ask Cody Davis and Christian—a pair of 23-year-olds who have assembled a real estate portfolio worth $25 million without using any of their own money. Their story isn't just inspiring, it's a testament to the power of creativity, persistence, and relationship-building in real estate.
So how did they do it? And more importantly, how can you replicate their success? Let’s dive into their unique approach.
Cody and Christian's Path to Real Estate Success
Cody got his start in real estate at the age of 19 after dropping out of college. By age 21, he had already accumulated 30 rental apartments. His partner, Christian, took a different route—climbing the corporate ladder before realizing that the only way to become a real estate investor was to start buying real estate. Together, they found a way to break into the market by purchasing properties with zero money down through creative financing and relationship-building.
The Power of Seller Financing and Creative Deals
One of the key elements of Cody and Christian's strategy was using seller financing. Seller financing is essentially when the seller acts as the bank, allowing you to purchase their property by making payments directly to them. Cody explained that, "You can buy real estate with two types of money: debt and equity. Equity is cash, and debt is borrowed cash."
Without a lot of cash on hand, the duo leaned heavily into borrowing. Their big break came when a seller agreed to finance over a million dollars to help Cody purchase his first multi-family property—a deal that laid the groundwork for their future success.
Key Takeaways from Their Seller Financing Strategy:
Relationship Building: Cody and Christian found that trust was the most critical factor in getting sellers to finance their deals. They focused on learning from experienced property owners and building rapport before negotiating terms.
Negotiation Skills: Negotiation is an art form in real estate, and Cody and Christian mastered it early on. They kept their contracts simple and focused on the basics: a promise to pay (promissory note) backed by a deed of trust.
Be Bold in Asking: One of their early mistakes was under-asking in negotiations, fearing rejection. But when they asked for what they truly needed, they often got it, including financing terms they hadn’t thought possible.
Scaling Fast: From a Duplex to a Resort
After meeting each other, Cody and Christian took things to the next level by purchasing larger properties. Their first joint venture was a 38-unit apartment building, and the success from that deal spurred them to expand even further.
But their crown jewel acquisition was the Robin Hood Village Resort, a sprawling 12-acre waterfront property in Washington State. They purchased the property for $4.5 million, with $1 million down—a far cry from their original expectation of a zero-down deal. Despite the higher-than-anticipated down payment, the seller agreed to carry a note for the remaining $3.5 million over eight years, with an annual debt cost of $154,000.
During the summer months, the resort pulls in over $100,000 per month, with winter months bringing in about a third of that. Events, such as weddings and corporate retreats, have also helped increase the resort’s revenue.
Challenges and Setbacks: Learning the Ropes
Despite their success, Cody and Christian encountered several challenges, especially as their portfolio began to grow rapidly. One of their biggest challenges was managing the accounting for over 55 units, something they hadn’t been fully prepared for. Cody recalls walking into his CPA’s office and having no idea how to answer basic questions about their finances.
Another setback came with their 38-plex, which had a serious drug problem among its tenants. This led to dangerous conditions that required time and money to resolve. From offering cash-for-keys to evictions, the duo learned the importance of patience, resourcefulness, and having a contingency plan for unexpected challenges.
What They Learned from These Setbacks:
The Importance of Proper Accounting: Managing multiple properties means staying on top of bookkeeping. Cody advises hiring a professional accountant early on if you can afford it.
Handling Difficult Tenants: The pair learned that sometimes you have to spend money to solve problems, whether through legal evictions or offering incentives like cash-for-keys.
The Benefits of Long-Term Ownership
Cody and Christian are strong advocates of long-term ownership, rather than flipping properties for a quick profit. As Christian explains, "The real money in real estate comes from holding real estate and not over-leveraging it." They argue that while refinancing can generate cash in the short term, it’s more important to hold on to assets, gradually paying off debt, and building sustainable cash flow.
This philosophy extends to their views on wealth creation. When they first started out, they thought a few million dollars would be enough. But as they’ve grown their portfolio, they’ve realized that sustained growth requires consistent reinvestment and scaling. They also stress the importance of avoiding over-leveraging—a mistake they see many investors make when trying to grow too quickly.
Cody and Christian's Top Real Estate Tips for Beginners
If you’re inspired by Cody and Christian’s story and want to get started in real estate, here are some of their top tips:
Focus on the Deal First: The deal is always more important than the money. "Deal, then debt, then equity," is their mantra. Finding the right deal will make it easier to secure financing.
Build Relationships: Real estate is a people business. You need to build relationships with property owners, lenders, and other investors to succeed. Cody and Christian recommend taking time to learn from experienced players in the market.
Think Long-Term: While flipping properties can bring in quick cash, Cody and Christian believe the real money is made by holding properties long-term and paying off debt. Focus on building a sustainable portfolio rather than making fast money.
Get Creative with Financing: Whether it’s through seller financing or finding a hard money lender, Cody and Christian’s success shows that you don’t always need to have cash on hand to buy real estate.
Final Thoughts: Real Estate Success Takes Grit
Cody and Christian’s story proves that you don’t need millions of dollars in the bank to build a real estate empire. What you do need is creativity, persistence, and a willingness to build relationships. By focusing on the deal first, leveraging seller financing, and reinvesting profits, they’ve built a $25 million portfolio—and they’re just getting started.
If you’re looking to break into real estate, take a page from their playbook. Start small, focus on relationships, and don’t be afraid to think outside the box when it comes to financing. With the right mindset, the sky’s the limit.
In the world of real estate, age and background are becoming increasingly irrelevant. Just ask Cody Davis and Christian—a pair of 23-year-olds who have assembled a real estate portfolio worth $25 million without using any of their own money. Their story isn't just inspiring, it's a testament to the power of creativity, persistence, and relationship-building in real estate.
So how did they do it? And more importantly, how can you replicate their success? Let’s dive into their unique approach.
Cody and Christian's Path to Real Estate Success
Cody got his start in real estate at the age of 19 after dropping out of college. By age 21, he had already accumulated 30 rental apartments. His partner, Christian, took a different route—climbing the corporate ladder before realizing that the only way to become a real estate investor was to start buying real estate. Together, they found a way to break into the market by purchasing properties with zero money down through creative financing and relationship-building.
The Power of Seller Financing and Creative Deals
One of the key elements of Cody and Christian's strategy was using seller financing. Seller financing is essentially when the seller acts as the bank, allowing you to purchase their property by making payments directly to them. Cody explained that, "You can buy real estate with two types of money: debt and equity. Equity is cash, and debt is borrowed cash."
Without a lot of cash on hand, the duo leaned heavily into borrowing. Their big break came when a seller agreed to finance over a million dollars to help Cody purchase his first multi-family property—a deal that laid the groundwork for their future success.
Key Takeaways from Their Seller Financing Strategy:
Relationship Building: Cody and Christian found that trust was the most critical factor in getting sellers to finance their deals. They focused on learning from experienced property owners and building rapport before negotiating terms.
Negotiation Skills: Negotiation is an art form in real estate, and Cody and Christian mastered it early on. They kept their contracts simple and focused on the basics: a promise to pay (promissory note) backed by a deed of trust.
Be Bold in Asking: One of their early mistakes was under-asking in negotiations, fearing rejection. But when they asked for what they truly needed, they often got it, including financing terms they hadn’t thought possible.
Scaling Fast: From a Duplex to a Resort
After meeting each other, Cody and Christian took things to the next level by purchasing larger properties. Their first joint venture was a 38-unit apartment building, and the success from that deal spurred them to expand even further.
But their crown jewel acquisition was the Robin Hood Village Resort, a sprawling 12-acre waterfront property in Washington State. They purchased the property for $4.5 million, with $1 million down—a far cry from their original expectation of a zero-down deal. Despite the higher-than-anticipated down payment, the seller agreed to carry a note for the remaining $3.5 million over eight years, with an annual debt cost of $154,000.
During the summer months, the resort pulls in over $100,000 per month, with winter months bringing in about a third of that. Events, such as weddings and corporate retreats, have also helped increase the resort’s revenue.
Challenges and Setbacks: Learning the Ropes
Despite their success, Cody and Christian encountered several challenges, especially as their portfolio began to grow rapidly. One of their biggest challenges was managing the accounting for over 55 units, something they hadn’t been fully prepared for. Cody recalls walking into his CPA’s office and having no idea how to answer basic questions about their finances.
Another setback came with their 38-plex, which had a serious drug problem among its tenants. This led to dangerous conditions that required time and money to resolve. From offering cash-for-keys to evictions, the duo learned the importance of patience, resourcefulness, and having a contingency plan for unexpected challenges.
What They Learned from These Setbacks:
The Importance of Proper Accounting: Managing multiple properties means staying on top of bookkeeping. Cody advises hiring a professional accountant early on if you can afford it.
Handling Difficult Tenants: The pair learned that sometimes you have to spend money to solve problems, whether through legal evictions or offering incentives like cash-for-keys.
The Benefits of Long-Term Ownership
Cody and Christian are strong advocates of long-term ownership, rather than flipping properties for a quick profit. As Christian explains, "The real money in real estate comes from holding real estate and not over-leveraging it." They argue that while refinancing can generate cash in the short term, it’s more important to hold on to assets, gradually paying off debt, and building sustainable cash flow.
This philosophy extends to their views on wealth creation. When they first started out, they thought a few million dollars would be enough. But as they’ve grown their portfolio, they’ve realized that sustained growth requires consistent reinvestment and scaling. They also stress the importance of avoiding over-leveraging—a mistake they see many investors make when trying to grow too quickly.
Cody and Christian's Top Real Estate Tips for Beginners
If you’re inspired by Cody and Christian’s story and want to get started in real estate, here are some of their top tips:
Focus on the Deal First: The deal is always more important than the money. "Deal, then debt, then equity," is their mantra. Finding the right deal will make it easier to secure financing.
Build Relationships: Real estate is a people business. You need to build relationships with property owners, lenders, and other investors to succeed. Cody and Christian recommend taking time to learn from experienced players in the market.
Think Long-Term: While flipping properties can bring in quick cash, Cody and Christian believe the real money is made by holding properties long-term and paying off debt. Focus on building a sustainable portfolio rather than making fast money.
Get Creative with Financing: Whether it’s through seller financing or finding a hard money lender, Cody and Christian’s success shows that you don’t always need to have cash on hand to buy real estate.
Final Thoughts: Real Estate Success Takes Grit
Cody and Christian’s story proves that you don’t need millions of dollars in the bank to build a real estate empire. What you do need is creativity, persistence, and a willingness to build relationships. By focusing on the deal first, leveraging seller financing, and reinvesting profits, they’ve built a $25 million portfolio—and they’re just getting started.
If you’re looking to break into real estate, take a page from their playbook. Start small, focus on relationships, and don’t be afraid to think outside the box when it comes to financing. With the right mindset, the sky’s the limit.
In the world of real estate, age and background are becoming increasingly irrelevant. Just ask Cody Davis and Christian—a pair of 23-year-olds who have assembled a real estate portfolio worth $25 million without using any of their own money. Their story isn't just inspiring, it's a testament to the power of creativity, persistence, and relationship-building in real estate.
So how did they do it? And more importantly, how can you replicate their success? Let’s dive into their unique approach.
Cody and Christian's Path to Real Estate Success
Cody got his start in real estate at the age of 19 after dropping out of college. By age 21, he had already accumulated 30 rental apartments. His partner, Christian, took a different route—climbing the corporate ladder before realizing that the only way to become a real estate investor was to start buying real estate. Together, they found a way to break into the market by purchasing properties with zero money down through creative financing and relationship-building.
The Power of Seller Financing and Creative Deals
One of the key elements of Cody and Christian's strategy was using seller financing. Seller financing is essentially when the seller acts as the bank, allowing you to purchase their property by making payments directly to them. Cody explained that, "You can buy real estate with two types of money: debt and equity. Equity is cash, and debt is borrowed cash."
Without a lot of cash on hand, the duo leaned heavily into borrowing. Their big break came when a seller agreed to finance over a million dollars to help Cody purchase his first multi-family property—a deal that laid the groundwork for their future success.
Key Takeaways from Their Seller Financing Strategy:
Relationship Building: Cody and Christian found that trust was the most critical factor in getting sellers to finance their deals. They focused on learning from experienced property owners and building rapport before negotiating terms.
Negotiation Skills: Negotiation is an art form in real estate, and Cody and Christian mastered it early on. They kept their contracts simple and focused on the basics: a promise to pay (promissory note) backed by a deed of trust.
Be Bold in Asking: One of their early mistakes was under-asking in negotiations, fearing rejection. But when they asked for what they truly needed, they often got it, including financing terms they hadn’t thought possible.
Scaling Fast: From a Duplex to a Resort
After meeting each other, Cody and Christian took things to the next level by purchasing larger properties. Their first joint venture was a 38-unit apartment building, and the success from that deal spurred them to expand even further.
But their crown jewel acquisition was the Robin Hood Village Resort, a sprawling 12-acre waterfront property in Washington State. They purchased the property for $4.5 million, with $1 million down—a far cry from their original expectation of a zero-down deal. Despite the higher-than-anticipated down payment, the seller agreed to carry a note for the remaining $3.5 million over eight years, with an annual debt cost of $154,000.
During the summer months, the resort pulls in over $100,000 per month, with winter months bringing in about a third of that. Events, such as weddings and corporate retreats, have also helped increase the resort’s revenue.
Challenges and Setbacks: Learning the Ropes
Despite their success, Cody and Christian encountered several challenges, especially as their portfolio began to grow rapidly. One of their biggest challenges was managing the accounting for over 55 units, something they hadn’t been fully prepared for. Cody recalls walking into his CPA’s office and having no idea how to answer basic questions about their finances.
Another setback came with their 38-plex, which had a serious drug problem among its tenants. This led to dangerous conditions that required time and money to resolve. From offering cash-for-keys to evictions, the duo learned the importance of patience, resourcefulness, and having a contingency plan for unexpected challenges.
What They Learned from These Setbacks:
The Importance of Proper Accounting: Managing multiple properties means staying on top of bookkeeping. Cody advises hiring a professional accountant early on if you can afford it.
Handling Difficult Tenants: The pair learned that sometimes you have to spend money to solve problems, whether through legal evictions or offering incentives like cash-for-keys.
The Benefits of Long-Term Ownership
Cody and Christian are strong advocates of long-term ownership, rather than flipping properties for a quick profit. As Christian explains, "The real money in real estate comes from holding real estate and not over-leveraging it." They argue that while refinancing can generate cash in the short term, it’s more important to hold on to assets, gradually paying off debt, and building sustainable cash flow.
This philosophy extends to their views on wealth creation. When they first started out, they thought a few million dollars would be enough. But as they’ve grown their portfolio, they’ve realized that sustained growth requires consistent reinvestment and scaling. They also stress the importance of avoiding over-leveraging—a mistake they see many investors make when trying to grow too quickly.
Cody and Christian's Top Real Estate Tips for Beginners
If you’re inspired by Cody and Christian’s story and want to get started in real estate, here are some of their top tips:
Focus on the Deal First: The deal is always more important than the money. "Deal, then debt, then equity," is their mantra. Finding the right deal will make it easier to secure financing.
Build Relationships: Real estate is a people business. You need to build relationships with property owners, lenders, and other investors to succeed. Cody and Christian recommend taking time to learn from experienced players in the market.
Think Long-Term: While flipping properties can bring in quick cash, Cody and Christian believe the real money is made by holding properties long-term and paying off debt. Focus on building a sustainable portfolio rather than making fast money.
Get Creative with Financing: Whether it’s through seller financing or finding a hard money lender, Cody and Christian’s success shows that you don’t always need to have cash on hand to buy real estate.
Final Thoughts: Real Estate Success Takes Grit
Cody and Christian’s story proves that you don’t need millions of dollars in the bank to build a real estate empire. What you do need is creativity, persistence, and a willingness to build relationships. By focusing on the deal first, leveraging seller financing, and reinvesting profits, they’ve built a $25 million portfolio—and they’re just getting started.
If you’re looking to break into real estate, take a page from their playbook. Start small, focus on relationships, and don’t be afraid to think outside the box when it comes to financing. With the right mindset, the sky’s the limit.
In the world of real estate, age and background are becoming increasingly irrelevant. Just ask Cody Davis and Christian—a pair of 23-year-olds who have assembled a real estate portfolio worth $25 million without using any of their own money. Their story isn't just inspiring, it's a testament to the power of creativity, persistence, and relationship-building in real estate.
So how did they do it? And more importantly, how can you replicate their success? Let’s dive into their unique approach.
Cody and Christian's Path to Real Estate Success
Cody got his start in real estate at the age of 19 after dropping out of college. By age 21, he had already accumulated 30 rental apartments. His partner, Christian, took a different route—climbing the corporate ladder before realizing that the only way to become a real estate investor was to start buying real estate. Together, they found a way to break into the market by purchasing properties with zero money down through creative financing and relationship-building.
The Power of Seller Financing and Creative Deals
One of the key elements of Cody and Christian's strategy was using seller financing. Seller financing is essentially when the seller acts as the bank, allowing you to purchase their property by making payments directly to them. Cody explained that, "You can buy real estate with two types of money: debt and equity. Equity is cash, and debt is borrowed cash."
Without a lot of cash on hand, the duo leaned heavily into borrowing. Their big break came when a seller agreed to finance over a million dollars to help Cody purchase his first multi-family property—a deal that laid the groundwork for their future success.
Key Takeaways from Their Seller Financing Strategy:
Relationship Building: Cody and Christian found that trust was the most critical factor in getting sellers to finance their deals. They focused on learning from experienced property owners and building rapport before negotiating terms.
Negotiation Skills: Negotiation is an art form in real estate, and Cody and Christian mastered it early on. They kept their contracts simple and focused on the basics: a promise to pay (promissory note) backed by a deed of trust.
Be Bold in Asking: One of their early mistakes was under-asking in negotiations, fearing rejection. But when they asked for what they truly needed, they often got it, including financing terms they hadn’t thought possible.
Scaling Fast: From a Duplex to a Resort
After meeting each other, Cody and Christian took things to the next level by purchasing larger properties. Their first joint venture was a 38-unit apartment building, and the success from that deal spurred them to expand even further.
But their crown jewel acquisition was the Robin Hood Village Resort, a sprawling 12-acre waterfront property in Washington State. They purchased the property for $4.5 million, with $1 million down—a far cry from their original expectation of a zero-down deal. Despite the higher-than-anticipated down payment, the seller agreed to carry a note for the remaining $3.5 million over eight years, with an annual debt cost of $154,000.
During the summer months, the resort pulls in over $100,000 per month, with winter months bringing in about a third of that. Events, such as weddings and corporate retreats, have also helped increase the resort’s revenue.
Challenges and Setbacks: Learning the Ropes
Despite their success, Cody and Christian encountered several challenges, especially as their portfolio began to grow rapidly. One of their biggest challenges was managing the accounting for over 55 units, something they hadn’t been fully prepared for. Cody recalls walking into his CPA’s office and having no idea how to answer basic questions about their finances.
Another setback came with their 38-plex, which had a serious drug problem among its tenants. This led to dangerous conditions that required time and money to resolve. From offering cash-for-keys to evictions, the duo learned the importance of patience, resourcefulness, and having a contingency plan for unexpected challenges.
What They Learned from These Setbacks:
The Importance of Proper Accounting: Managing multiple properties means staying on top of bookkeeping. Cody advises hiring a professional accountant early on if you can afford it.
Handling Difficult Tenants: The pair learned that sometimes you have to spend money to solve problems, whether through legal evictions or offering incentives like cash-for-keys.
The Benefits of Long-Term Ownership
Cody and Christian are strong advocates of long-term ownership, rather than flipping properties for a quick profit. As Christian explains, "The real money in real estate comes from holding real estate and not over-leveraging it." They argue that while refinancing can generate cash in the short term, it’s more important to hold on to assets, gradually paying off debt, and building sustainable cash flow.
This philosophy extends to their views on wealth creation. When they first started out, they thought a few million dollars would be enough. But as they’ve grown their portfolio, they’ve realized that sustained growth requires consistent reinvestment and scaling. They also stress the importance of avoiding over-leveraging—a mistake they see many investors make when trying to grow too quickly.
Cody and Christian's Top Real Estate Tips for Beginners
If you’re inspired by Cody and Christian’s story and want to get started in real estate, here are some of their top tips:
Focus on the Deal First: The deal is always more important than the money. "Deal, then debt, then equity," is their mantra. Finding the right deal will make it easier to secure financing.
Build Relationships: Real estate is a people business. You need to build relationships with property owners, lenders, and other investors to succeed. Cody and Christian recommend taking time to learn from experienced players in the market.
Think Long-Term: While flipping properties can bring in quick cash, Cody and Christian believe the real money is made by holding properties long-term and paying off debt. Focus on building a sustainable portfolio rather than making fast money.
Get Creative with Financing: Whether it’s through seller financing or finding a hard money lender, Cody and Christian’s success shows that you don’t always need to have cash on hand to buy real estate.
Final Thoughts: Real Estate Success Takes Grit
Cody and Christian’s story proves that you don’t need millions of dollars in the bank to build a real estate empire. What you do need is creativity, persistence, and a willingness to build relationships. By focusing on the deal first, leveraging seller financing, and reinvesting profits, they’ve built a $25 million portfolio—and they’re just getting started.
If you’re looking to break into real estate, take a page from their playbook. Start small, focus on relationships, and don’t be afraid to think outside the box when it comes to financing. With the right mindset, the sky’s the limit.
Read Other Case Studies
Read Other Case Studies
Read Other Case Studies
Read Other Case Studies
Here are some others we think you might like…
Here are some others we think you might like…
Here are some others we think you might like…
Here are some others we think you might like…
Support
Copyright © 2024 Create in Silence
Support
Copyright © 2024 Create in Silence
Support
Copyright © 2024 Create in Silence
Support
Copyright © 2024 Create in Silence