Morning - This email will save you millions of dollars.

After interviewing hundreds of millionaires investors on my podcast, knowing thousands of millionaire through my connections, and becoming a millionaire through investing myself - I hear one piece of advice across all of them more than any other....

​

"i wish i switched to commercial real estate sooner."

​

Today's topic is why you should strongly consider making the pivot from single family real estate to commercial real estate investing. This is coming from a guy that got started (like you) in single family investing, and have since sold them all to pursue this path (and small business). This switch can result in milllllllllions of dollars and momentum for you.

I will preface this email with: "do you".

If you want to buy 10 houses, pay off the mortgages, and chill - that's a wonderful strategy.

Today's email and our content is geared towards the high income, high performer that wants financial freedom within the next 24 months, which is impossible through single family today. Lets begin.

​

​

It sounds safe.
It sounds logical.
And to be fair, it works—slowly.

But here’s the truth:
The traditional path of buying single-family rentals (or even short-term rentals) isn’t the best way to scale wealth.

In fact, it’s often the path that keeps you stuck—grinding, not growing.

Most of you guys reading this email are in this boat:

• Good job / income
• own primary
• have an STR or rental property on side

​

And the biggest reason?

THE CONSTRAINT: CAPITAL

Your ability to scale is directly tied to your ability to earn, save, and raise capital.

And when you're playing the single-family game, your capital constraint shows up fast:

• You buy one house → 25% down (+ reno)
• You tie up your own money
• Then… you’re tapped out
• Next deal? You need to go wait until you save up your money again

I did this for over three years. Three lost years.

I just talked to a lot of AIRBNB investors that were absolutely jammed on their 2nd or 3rd properties.

They realized it was time to finally go bigger but the idea of "raising capital" seemed so far out of reach for them.

There's two reasons for this:

1) Its hard to pitch sophisticated investors to lend to you for a single family deal (they want bigger deals)

2) Youre doing this alone (it's probably you, your wife / husband, and maybe a family friend GC)

​

Below - we are going to solve both constraints, along with sharing an actual example of how this works in the real world.

​

It takes just as much energy to raise $100K for an Airbnb as it does to raise $1,000,000 for a boutique hotel.
But the returns? Not even close.

And the risk? Which is riskier - you and your spouse operating alone, or you guys operating alongside a sophisticated team and sophisticated lenders and partners with experience going full cycle?

⚖️ HOW CAPITAL RAISING WORKS (STR VS HOTEL)

Let’s compare two real-world capital raise scenarios:

We will call her "Sarah". Sarah is obsessed with experiential hospitality. Scarily obsessed - she wont shut up about it.

Sarah has two investing paths to choose from with two constraints that will remain constant:

1) she has $100k to invest

2) both deals will have an 18 month cycle

​

She has to decide if she wants to buy another STR, or finally make the leap into the HOTEL space...

​

🏠 Single-Family / Short-Term Rental (PATH A)

Sarah wants to buy her second Airbnb:

• $400K home
• Needs $100K down + $75K for reno
• She has $100K, so she raises $75K as private debt (10% interest-only loan)

Her pitch to an investor sounds like this:

That’s a hard sell.​
There’s no equity for the investor.
No real business plan.
And the exit is based on an appraisal, not income.

This could be wiped out by market conditions or local governments.

PATH A MATH:

• Buys a $400K house
• Puts in her full $100K as down payment
• Raises $75K in private debt for renovations (10% interest)
• After 18 months, the property appraises at $500K
• She refinances, pays off the loan, and now owns the house with $125K in equity
• Cash flow: ~$500/month = $9,000 total over 18 months
• Total take-home: ~$134K (equity + cash)

​

In this example - we even say that it works.

This is still a kickass deal.
But she worked harder than she should’ve, and now has a 1-door empire after 18 months and no scalability.

​

🏨 Boutique Hotel (Commercial) (PATH B)

Same investor, Sarah, puts $100K into a $3M boutique hotel acquisition.
She also helps raise $250K more and earns a 10% GP equity share.

Her pitch now sounds like this:

That’s a business pitch.​
It’s clean. Scalable. Repeatable.
And larger investors love it because the value is based on income, not comps.

​

PATH B MATH:

• Sarah invests $100K into a $3M hotel acquisition
• Helps raise an additional $250K and earns 10% GP equity
• The hotel’s NOI is increased by $100K through smart operations
• New valuation: $3.75M
• Equity created: $750K
• Sarah’s total return = $160K (LP) + $75K (GP) = $235K
• Cash flow: ~$12K
• Total take-home: ~$250K+ in 18 months

Same $100K invested.
Double the return.
And now Sarah has equity in a business, a team, and a track record that makes her bankable for future, bigger deals.

​

​

Now lets take it two steps further....

Sarah goes from 2 doors to 3 doors in Path A.

Sarah goes from 2 doors to 16 doors in Path B.

And now she has her team, her brokers, her capital partners, geared up and ready for the next acquisition that will most likely be the same size or even bigger (most likely).

​

So lets fast forward an additional 18 months....

Lets say Sarah does both deal cycles AGAIN (she's a good investor)

Now after 3 years she owns 4 doors vs 30 doors.

Same amount of effort, same amount of time, different focus.

​

I have a full 30 minute podcast episode coming out tomorrow that covers this in depth - fo free.

​

If you want to make this pivot and have capital partners, operating partners, and GP mentors with track record and experience to partner with across most of the major commercial asset classes - you should book a call with our action academy team.

​

This is what we do. Its all about relationships.

Talk Thursday!

​