EP327: How I’d Build A Real Estate Business In 2025 (If I Had to Start Over)

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If we had to start over in 2025 from scratch—like a total reset, back to zero—it would feel a lot like what happened to me in 2017. 

Back then, we went from doing really, really well financially to completely broke almost overnight. 😢😢

Our only source of income disappeared like a Thanos snap. Just like that—vaporized.

We were still in fashion back then, and let me tell you, it felt like the rug was ripped right out from under us. We had no plan B–just a little backup cash, but no real safety net to fall back on.

So if we had to start all over again today, we’re going to tell you exactly what I’d do in 2025 to rebuild from scratch and become rich–richie rich. 🤓🤓

There has never been a time in human history when it’s been easier for ordinary people to create extraordinary wealth.

We’re not talking about theory—we’re talking about what we lived. 

We went from starting from scratch after the collapse of our fashion business, resetting from zero… to building a $400 million real estate portfolio in just a few years.

And no, we didn’t start with millions. 

We started with leverage.

Now we know when we say that—”average people like us”—some of you feel some resistance rise up.

You hear “ordinary person,” and you say, “That can’t be me.”

But we want you to hear me clearly: We’re not special.

We didn’t have wealthy connections.

We didn’t really pay attention in school.

We didn’t have secret talents.

We weren’t born with the gift of raising millions of dollars or starting a fund.

In fact, if you looked at my life from the outside back then, you wouldn’t have seen anything that screamed success.

When I (👋 Palmy) graduated high school with a 2 point something GPA, the only thing I got recognized for was being captain of the varsity basketball team. 

Yes, I’m a hooper! 🏀

Nobody said, “These girls are going to build a $400 million empire.”

So, what would we do? 

Well, let’s start with what we wouldn’t do.

We wouldn’t be in fashion—not because people can’t be successful in it, but because the reality is harsh.

You’re constantly replaceable. There’s always cheaper labor. And you end up fighting over pennies.

There’s a ceiling in that industry. Your income isn’t based on your talent or the value you bring—it’s determined by who’s willing to charge the lowest price.

And that just wasn’t the kind of game we wanted to play.

Next, you see most people think real estate investing is about finding the perfect property, getting the best interest rate, or having a huge down payment. That’s not real estate investing – that’s real estate gambling. They think they can afford to take their time, moving like slow dripping molasses, waiting for the “perfect moment” that never comes.

To illustrate this, let me ask you a simple question: if you earn a million dollars, are you considered rich? What’s the answer? Yes?

Well, the answer is… it depends.

What does it depend on?

If you made that million dollars and it took you 40 years, you’re not rich – you earned $25,000 a year.

If you made a million dollars and it took you one year, then you’re quite wealthy. You earned 40 times more than the person who took 40 years to earn a million. You’re not Elon Musk rich, but you’re doing fine.

If you made a million dollars in a day, then you’re talking about a completely different scale.

And that’s why wealth has a need for speed. There’s no point in earning the same dollar amount in 40 years when you can earn that in a year or less.

So as we illustrate what we would do if I had to start from zero today, keep that in the back of your mind – wealth has a need for speed. 🚀

Level One: Breaking the Programming

Okay, let’s talk about the part that nobody really talks about—why most people never make it past their first rental property… if they even make it that far.

We call it the “30-Year Equity Trap Hamster Wheel.” Catchy name, right? But also? Kinda terrifying.

We know, because we’ve been there.

Back when our fashion business was thriving, we were bringing in good income and doing what we thought were all the right things. Investing in real estate felt like the “next responsible step.”

We didn’t know what we didn’t know. Honestly, we were the blind following the blind. Someone else we knew had done it, so we figured… why not us?

What we didn’t realize is that we were already walking into a trap—one that many high-income earners fall into the moment money starts to flow.

There’s something called the “wealth effect.” It’s this sneaky thing where you feel richer, so you start spending like you are richer—even if the numbers don’t actually back it up.

Then there’s another little trick our brains play—mental accounting. We started treating our income from fashion and our real estate “investment” as totally separate money buckets. “It’s fine,” we told ourselves. “We’ll just make more money from the business.”

But here’s the truth we learned the hard way: money is money. It doesn’t matter where it’s coming from—if you’re not intentional, it’ll slip through your fingers faster than you can say “return on investment.”

And here’s the thing—we didn’t even realize we were running a script.

You know the one. The classic storyline: Buy a home. Get a mortgage. Stick it out for 30 years. And someday—if you’re lucky—someone will pay more than you did. Fingers crossed. Prayers up.

They call it building equity, but let’s be real: for the first few decades, the only one building wealth is the bank. We were paying the mortgage, covering the taxes, taking care of the maintenance… and the banks were just cashing the checks.

At the time, we thought we were being smart. “Good debt,” we said. “We can afford the monthly payment.” We had decent credit scores and zero understanding that we were just following the blueprint they wanted us to follow.

And then… everything came crashing down.

Our biggest client disappeared overnight. 95% of our income—gone. Poof.

What used to feel easy started feeling like we were suffocating. That property we thought was an “investment”? It became an anchor. Not the cute nautical kind. The heavy, soul-sinking kind.

We were putting more money into it than our tenant was. Every single month, we were paying out of pocket just to keep it afloat.

And when you lose your only source of income?

It feels like the air gets sucked right out of the room.

We were sitting there, staring at each other, wondering,

“What now? How are we supposed to survive this?”

It was in that moment—when money was tight, emotions were high, and the pressure felt overwhelming—that we realized just how flawed our thinking had been.

And then we did the math. (Pro tip: if you’re already stressed, maybe don’t do math.)

Even if our property appreciated by 3% annually for 30 years (which is being very optimistic), it would go from $400,000 to $572,000. That’s a $172,000 gain… over three decades.

That breaks down to $5,733 per year. Not bad. But not “let’s quit our jobs and move to Tuscany” money, either.

And here’s where it really hit us: If we needed, say, $3 million to comfortably retire, we’d need to repeat that same investment 17 times. With $100,000 cash into each one. That’s $1.7 million tied up for 30 years.

It didn’t take a financial advisor to see that this wasn’t just slow—it was almost impossible.

The math just wasn’t mathing.

And right around the time we were ready to scream into a pillow, we discovered something that shifted everything:

You don’t make money when you sell.
You don’t even make money when you buy.
You make money when you operate the property correctly.

Lightbulb moment. 💡

That single insight flipped everything on its head. We realized we didn’t just need a new plan—we needed a completely new foundation.

So, we went back to square one. We rewrote the rules. We stopped chasing appreciation and started chasing cash flow. We stopped trying to “build equity” and started building a business.

And that… brings us to Level Two. 👇

Level Two: Building the Foundation

Okay, so now that we’ve broken free from the programming, here’s what we realized: we had to start from scratch. Not with another random property, but with our mindset, our strategy, our entire foundation.

And the truth? That foundation isn’t what most people think it is.

When we were knee-deep in frustration with our single-family rental, trying to make the math work and feeling the walls close in, we had a moment that cracked everything wide open:

✔️ You don’t make money when you sell.

✔️ You don’t even make money when you buy.

✔️ You make money when you operate the property correctly.

That single insight was a full-on mic drop. We weren’t just in the wrong vehicle. We were on the wrong track entirely.

So we tossed out the old rulebook and built a new one. Welcome to Level Two.

This Is Where Real Wealth Gets Built

Most people want to jump ahead to the fun part—buying properties, cashing checks. But this stage? This is where the real magic happens.

It’s not just about owning stuff. It’s about building systems that run without you. That’s how real wealth is built.

Foundation Element 1️⃣: Education (But Not the Kind You Think)

No, you don’t need your real estate license. You’re not becoming a realtor, you’re becoming an owner.

The best way to learn is to start by investing passively in large-scale multifamily deals. We started with 200-300 unit apartment communities because they offer scale, stability, and quality.

We weren’t looking to make $100 in cash flow from a duplex. That’s not going to build wealth. That’s like trying to launch a rocket with a birthday candle.

When people ask how we went from zero to over $300 million in real estate in six years, the answer isn’t that we studied duplexes. We learned strategically, at scale, and from the inside.

We invested passively first, and that allowed us to observe. We got to see how experienced operators thought, how they picked markets, how they made decisions. We asked questions, we paid attention, and we learned.

And guess what? Most good operators welcome smart questions. It sharpens their own process, and they want to work with savvy investors.

Today, there are so many resources online (yes, including our YouTube channel!), but the secret is not what you learn. It’s when you learn it. We call this “just-in-time learning.”

Pro tip: You don’t need to learn how to evict someone. That’s not your job. Hire for that. Stay focused on what matters.

If you ask us today how to file an eviction? We have no clue. But ask us about a property’s performance or exit strategy? That, we know cold.

Foundation Element 2️⃣: Pick Your Lane and Master It

Next up: choose your lane. Whether it’s multifamily (our jam), mobile home parks, or commercial real estate, pick a focus and become excellent at it.

Within multifamily alone, there are 5 major lanes:

1. Sourcing deals
2. Managing broker and vendor relationships
3. Underwriting and operations
4. Capital raising
5. Balance sheet/backing the loan

You only need to master one to start. Don’t try to juggle all five. You’ll burn out fast.

For us, capital raising was our lane. We loved talking to people, educating investors, and building trust. That was our entry point. And guess what? Within 90 days of owning that lane, we raised $4 million for our first deal.

Now we’ve mastered all four active roles (the fifth is about your personal financial position), but it all started with one.

Play to your strengths. If Excel makes your eyes cross, underwriting is not your lane. If you’re not into broker lunches, skip the sourcing role. Focus where you shine.

When we tried to play the sourcing game in Dallas while living in LA, it was a hot mess. We spent $10,000 trying to make deals work. Crickets. No traction. Until we pivoted to what we were naturally good at—capital raising. That changed everything.

Foundation Element 3️⃣: Build for Cash Flow

Here’s a rule we live by: cash flow from day one. Or, a clear path to get there quickly.

We buy A-class multifamily in strong neighborhoods (think $100k+ median incomes). These are properties built in the mid-2000s or newer—stable, clean, and with tenants who pay on time.

We avoid anything that screams “project” unless there’s a proven team and a very clear plan.

Example? A 300-unit apartment at 50% occupancy is a red flag. That’s 150 empty units. At $2,000 per month, that’s $300,000 a month of lost rent. Factor in $3-5 million in renovations and 12-18 months of negative cash flow. That’s a $10 million hole before you earn a dime.

Instead, we buy stabilized assets that pay us while we improve them.

Let’s Talk Level Two Math

Remember Level One? $172,000 profit over 30 years = $5,733/year. Oof.

Here’s what Level Two looks like:

You invest $100,000 passively into two multifamily deals. These deals pay 8% cash flow annually. That’s $8,000 per year. In five years, that’s $40,000 in cash.

Then, the property sells. You get your $100,000 back plus $60,000 in profits.

Total return = $100,000 over 5 years = 20% average annual return.

Now, if you also join as a General Partner (active role), you earn fees and a piece of the upside.

On a $25M deal, a 1% acquisition fee = $250,000. Split five ways? That’s $50,000.

Let’s say you own 4% of the GP shares. That’s $80,000/year in cash flow plus $400,000 when it sells (based on $10M total profit).

Let’s add it up:

• $50,000 in acquisition fees
• $100,000 from passive investments
• $400,000 from GP cash flow (over 5 years)
• $400,000 from GP sale profits

Total: $950,000 in 5 years.

Versus Level One’s $172,000 in 30 years.

Annual average:

• Level One = $5,733/year
• Level Two = $190,000/year

That’s 33x more income. 🙌

And here’s the kicker: this isn’t just income. It’s the foundation for Level Three.

Because now? You have capital. You have credibility. You have experience.

That’s when real wealth multiplication starts.

Ready to go there?

Let’s talk Level Three. 👇

Level Three:  Scaling to Millions

Let’s cozy up for this one, because what we’re about to unpack is where everything changes. This is where you go from being a real estate investor to a real estate entrepreneur. And when you cross this line? It’s the difference between earning thousands and building millions.

Here’s the secret:

➡️ You don’t just buy real estate.
➡️ You create it.
➡️ You control it.
➡️ And you do it with other people’s money.

This is the turning point.

While most people chase distressed properties and fixer-uppers that look sexy on the outside but bleed money on the inside, we started doing the opposite.

We used investor capital to buy already great assets—A-class, stabilized properties in thriving markets—and then we optimized them. Think of it like turning a B+ student into valedictorian, not trying to rescue a failing dropout.

And here’s what most people miss: when you buy in the right market, you don’t need to gut kitchens or add granite countertops to force value. The market does the heavy lifting. The rent growth happens naturally because the demand is so strong.

A real-life example?

We bought a property in Northwest Arkansas—a gorgeous A+ multifamily built in 2021.

It was already 90%+ occupied, with a 12% organic rent growth.

No lipstick needed. 💄

No sledgehammer required.

The property and the market were already working in our favor.

Even as competition started to grow and new developments came online, we kept outperforming. Why? Because of smart timing, a killer location, and our decision to partner with a top-tier management team.

We weren’t trying to be the cheapest—we aimed to be the best.

And here’s the kicker: those new buildings?

Many of them are still struggling to lease up. Why? Because their costs were higher, their amenities couldn’t compete, and their locations were just… not it.

Enter: The Infinite Return Strategy

Let’s throw it back for a second.

Remember that Newton’s cradle?

The little desktop toy with the silver balls? You pull one, it clicks into the next, and it goes on and on.

That’s what the infinite return strategy feels like—but with money.

We buy a $25 million property. Put down $5 million from investors. Finance the rest. Then we optimize operations, boost income, and increase the property’s value to $35 million. We refinance, pull out $28 million, pay off the loan, and return all investor capital—with profits.

But guess what? We still own the building. And it’s cash flowing. That’s an infinite return.

And it gets better: the refinance money?

It’s tax-free.

Yep, Uncle Sam doesn’t tax debt. 😎😎

It’s like a legal financial loophole with a big ol’ bow on top.

This strategy lets us keep scaling because our investors get their money back to reinvest in the next deal. The snowball keeps rolling.

Level Three Math: What This Looks Like in Numbers

Let’s zoom in on a typical deal:

• $25M property
• You’re now one of two general partners
• You own 10% of the deal

Cycle 1 (Years 1-5):

• Annual cash flow: $200,000
• Refinance proceeds: $800,000
• Total: $1,000,000 + $800,000 = $1.8M

Cycle 2 (Years 6-10):

• Annual cash flow: $250,000
• Refinance proceeds: $1.4M
• Total: $1.25M + $1.4M = $2.65M

Cycle 3 (Years 11-15):

• Annual cash flow: $312,500
• Refinance proceeds: $1.9M
• Total: $1.56M + $1.9M = $3.46M

Cycle 4 (Years 16-20):

• Annual cash flow: $390,000
• Refinance proceeds: $2.7M
• Total: $1.95M + $2.7M = $4.65M

Cycle 5 (Years 21-25):

• Annual cash flow: $487,500
• Refinance proceeds: $3.8M
• Total: $2.43M + $3.8M = $6.23M

Cycle 6 (Years 26-30):

• Annual cash flow: $609,000
• Final sale proceeds: $5.2M
• Total: $3.05M + $5.2M = $8.25M

Grand Total from ONE deal over 30 years:

• Acquisition fees: $125,000
• Total cash flow: $11.24M
• Refinance proceeds: $10.6M
• Final sale: $5.2M
• Total: $27.17 million

Compare that to Level One, where the total return was $172,000 over 30 years. This? This is 158x more wealth.

And the best part? That was just one deal. Do three of those over your career and we’re talking $81 million+ in personal returns.

We know—it sounds wild. But this isn’t fantasy math. This is what happens when you understand the system and execute well. It’s why we say Level Three is about generational wealth.

It’s not just about making money. It’s about making your money make money.

So Let’s Wrap This Up

Where are you operating?

Level One? Still playing the equity trap game, praying for appreciation while paying more than you earn?

Level Two? Building a foundation, getting educated, and starting to see some wins?

Or Level Three? Using systems, strategy, and other people’s money to scale millions?

The question isn’t if you can do this. It’s when you’ll decide to start.

The next 30 years will pass either way. But what you choose to build during that time?
That’s up to you.

Remember: You weren’t born with any limiting beliefs about money or real estate. Someone taught you those beliefs. Today, you can choose to learn new ones and move to the next level.

If we had to start over from scratch, we wouldn’t panic—we’d execute a plan.

And if you’re starting from zero in real estate?

This is exactly what we’d do.

Apply them.

Work them.

Watch how fast things can shift in your favor—just like they did for us.

And listen… If you’re already ready to go big— If you’re ready to buy your first $10 million apartment without using your own money, then I will see you in the next video.