How Wyatt Simon Turned a $200K Line of Credit Into a $20M Real Estate Empire

Transcript

Mattias
(00:03) This is The WELLthy Investor Show, where we don’t just talk about your wealth, we also talk about your holistic health. I’m your host, Mattias.

Erica
(00:10) And I’m Erica.

Mattias
(00:11) And this is The WELLthy Investor. Hello, everyone. It’s just Mattias today.
(00:18) I wanted to talk a little bit today about, I’ve been rereading books and trying to help my own book writing process.
(00:30) And there are certain books that are just fundamental to most people’s journeys when they get into real estate investing or just in the world of business in general. One of them that comes up over and over again is Robert Kiyosaki’s Rich Dad, Poor Dad.
(00:45) If you haven’t read that book, definitely check it out. It’s just a key fundamental shift in the way of thinking about your income, about how you sustain yourself financially.
(01:01) So that’s a really, really good book. I had not read The Cashflow Quadrant before, also by Robert Kiyosaki.
(01:08) And I’m finishing that one now. That one really gets to certain core aspects of what my book is going to be about.
(01:19) And that is moving the way you earn money. So there’s the cashflow quadrant, which is you’re either an employee, self-employed, a business owner, or an investor.
(01:33) On the left side of the quadrant is the employee and self-employed, and on the right side are the business owner and investor.
(01:42) His argument is that if you want freedom in life and to enjoy your time more, the key is moving more into the business and investor sides of the quadrant.
(01:59) And that’s really the fundamental thing that drives me — the freedom of time.
(02:07) Moving into the business and investor quadrants is where you can start seeing changes. You’re not working for somebody else.
(02:08) You’re using systems or people who work for you, or your money works for you in the investing side.
(02:23) So with my book, well, we don’t have a title yet, but I’m teaching agents who are self-employed to start looking at getting elements of their own business into the business category.
(02:34) That could be hiring people, implementing systems others run, or investing in real estate.
(02:43) I think many people don’t fully understand the power of investing in real estate as a realtor.
(02:58) You may come across opportunities others don’t. You also have extra tax benefits as a real estate professional.
(03:16) People outside the industry drool over those opportunities, and I think it’s a shame that most don’t understand that.
(03:32) We got into this with our guest, Wyatt Simon.
(03:37) He’s awesome and has hustled his way up to a large portfolio. Now, he’s helping others do the same.
(03:47) We discussed building systems for delegating tasks. He developed his own property management company.
(03:52) Instead of using a property manager, he built systems and delegated. There’s no right or wrong way here, but the focus is building systems you can delegate.
(04:06) For realtors, there are tasks you don’t have to do yourself. Delegate and focus on income-producing activities.
(04:12) If you do everything, burnout is inevitable. You could hire someone to handle things like lockbox installation or posting on social media.
(04:38) You want to ensure people are well-trained, but some tasks, like scheduling, can be easily delegated.
(04:52) Another option is using a transaction coordinator to manage contract logistics and inspections, freeing you to focus on other tasks.
(05:12) With the details handled, you can provide better service to your clients and grow your business.
(05:33) Think bigger — grow so you can step back and avoid burnout, which is common when doing everything yourself.
(06:00) In real estate sales, you’re constantly on, even when sick or on vacation. No one’s there to help, and you can’t even take a sick day.
(06:15) That’s why systemizing your business is critical. You want to set things up so that business runs smoothly, even in your absence.
(06:42) You don’t have to start with a full-time employee; hire someone hourly to help with the smaller tasks.
(07:02) Start with hourly hires. Don’t be afraid. You’ll find yourself with more free time to focus on bigger goals.
(07:20) A strong income stream from investments can give you the confidence to grow your business.
(07:34) Once basic needs like mortgage payments are covered through rental income, you’ll find it easier to scale.
(07:50) You may never touch the cash flow, but the value growth of your properties will put you in a strong financial position.
(08:01) Having reliable income from investments allows you to hire, trust others, and give yourself more time.
(08:27) Especially now, with so much uncertainty, focus on serving your clients and giving them the best value.
(08:33) Delegating some tasks will free you up to focus on what really matters.
(08:48) Now is a hard time, but also a time to double down. When others drop out, that’s when the real opportunities emerge.
(09:09) Right now, the market’s tough, but sticking with it is where the money is made. This is when you grow your business, and build your career.

Mattias
(09:26) I mean, yeah, it still takes skill, dedication, all that stuff. But it was relatively easy.
(09:33) If you don’t have a huge book of business or database, you may struggle now.
(09:41) With all these changes, it becomes difficult to stick with it.
(09:45) My mission is to help people understand that this is a long-term game.
(09:54) It’s not in the good times that businesses grow, but in the hard times when you invest and focus.
(10:07) There’s going to be a lot of people getting out of the business. Those are the times to double down.
(10:10) And the clients of those who exit will still need agents.
(10:15) This is where, if you’ve invested time, you’ll reap the benefits of that work.
(10:19) Same with real estate — in downturns, people fear investing. But that’s where the deals are made.
(10:28) It’s during these fearful times that money is made and great deals are found.
(10:37) So this is the time to invest in your business. It will pay off in the long run.
(10:49) This is how you separate yourself from others. Double down on your business now.
(11:00) Now, let’s introduce our amazing guest, Wyatt Simon.
(11:16) Wyatt is a published author and coach. He turned a $200,000 line of credit into a $20 million portfolio.
(11:33) He’s here today to share how you can do the same. Thanks for joining us, Wyatt! Tell us a little bit about yourself and what you’re doing now.

Wyatt Simon
(11:48) Man! Well, I’m probably best known as the guy who took a $200k line of credit and turned it into a $20 million portfolio.
(11:54) I do have business partners, so I own about 40% of that portfolio.
(11:58) I did that in my 20s, and now I own and manage about 180 units.
(12:06) We’re vertically integrated with five full-time employees managing the portfolio.
(12:12) Right now, we also have an off-market acquisition company. We bought 21 deals in 2024 so far, all off-market.
(12:21) And I coach other investors to invest better. So that’s where I’m at now.

Mattias
(12:30) Yeah, that’s awesome. Good for you for giving back.
(12:33) There are so many people who get stuck in analysis paralysis.
(12:37) And you’re right, sometimes people just need that extra push to take action.
(12:51) Lots to unpack there. Where should we start?
(12:56) Tell me more about that $200,000 credit line — how you got it and how you used it.

Wyatt Simon
(13:02) Yeah, well, it all started when I read Rich Dad Poor Dad, right?
(13:06) I hope many people listening have read that. It gave me the concept of assets working for you while you sleep.
(13:18) Once I got that foundational concept, I thought, “How do I buy these assets to work for me?”
(13:24) Because I was a broke 20-year-old.
(13:25) So the first thing I did was look at how I could eliminate my expenses.
(13:33) I got a duplex and house-hacked it, living in one

side and renting the other.
(13:36) I even added another bedroom in my unit and ended up living not only for free but making $200 a month.
(13:47) So I went from a $1,000 rental payment to making money while living there. That helped me save more to buy assets.
(13:58) Then I learned about the BRRRR strategy: Buy, Renovate, Rent, Refinance, Repeat.
(14:28) There’s a great book on it by David Greene. It’s an amazing strategy because it allows you to buy an asset, improve it, and get all your capital back while keeping the property.
(14:48) I didn’t have capital, but through the BRRRR strategy, I could borrow capital, improve the property, and return the money to the lender.
(15:01) That was the game-changer for me. I realized I could do this over and over.
(15:06) I’ve done the BRRRR strategy 56 times now on single-family homes, multifamily, and office properties. It’s a powerful strategy.

Mattias
(15:14) That’s so cool! I remember thinking it was a magic trick the first time I did it too.
(15:20) It really does unlock so much.
(15:28) It sounds like you jump-started faster than I did.
(15:32) I was using lines of credit to fund everything and could’ve gotten going faster using hard money.
(15:42) So were you using hard money loans from the start, and then refinancing out after six months of seasoning?

Wyatt Simon
(15:50) Great question!
(15:53) I was fortunate because, while I didn’t have a bunch of money, my parents had their house paid off.
(16:06) So I asked them to let me use a home equity line of credit on their house for the BRRRR strategy.
(16:14) At first, they said absolutely not.
(16:18) But after nine months of buying my duplex and educating myself, they finally agreed.
(16:33) We set up a $200,000 line of credit, bought a house in cash, and I renovated it myself with a buddy after work.
(16:45) We got it done in six months, and then I refinanced, paid back the loan, and it all worked out great.
(17:00) From there, it was about scaling up.
(17:14) The next house was a disaster — nine months over budget, red-tagged by the city, and forced to hire contractors.
(17:35) But that experience pushed me to hire people and not do the work myself.
(17:49) I learned how to move up the leverage scale, doing multiple projects at once.
(18:04) Eventually, I found banks that didn’t require seasoning periods, and we were doing BRRRRs in two weeks. That’s when we really ramped up.

Mattias
(18:28) Wow, that’s crazy! Were these light projects for a two-week turnaround?

Wyatt Simon
(18:37) Yeah, some were light. We bought deeply discounted deals, so sometimes minimal rehab was needed, or we’d just do paint and flooring.
(18:49) But with those deeply discounted deals, sometimes we didn’t need to do any rehab at all.

Mattias
(18:55) That’s amazing!
(18:57) I think a lot of people would have quit when things got tough with that second project.
(19:09) But you pushed through and turned those challenges into learning experiences.
(19:17) Good for you! You learned how to leverage other people’s time and scale up.
(19:25) Was your next move to use hard money loans to finance things?

Wyatt Simon
(19:45) Yeah, well, I appreciate that.
(19:46) And the whole reason I started all of this was because I hated my job.
(19:52) I remember sitting in a desk, feeling like my body was decaying.
(20:00) I was a college athlete, and it just felt like I was wasting away sitting there.
(20:16) I was working at a publishing company, selling ads to farmers, wearing a full suit and tie every day.
(20:19) My manager was constantly watching everything we did like a hawk.
(20:28) It was awful. One day, my manager tapped me on the shoulder and said, “Where’s your belt?”
(20:53) I had forgotten to wear my belt that day, and she said I needed to fix it.
(21:00) After that, I was over corporate life. I knew I didn’t want to do that for the rest of my life.

Mattias
(21:33) Yeah, I think a lot of people can relate to that feeling of not wanting to be told what to do.
(21:39) Did you always have that mindset, even in high school, or did it start once you entered the corporate world?

Wyatt Simon
(21:52) Yeah, I think I always had a bit of a rebellious streak.
(21:59) My dad wasn’t a fan of authority, and that probably rubbed off on me.
(22:07) In school, I would try to get all my homework done during class so I could play video games when I got home.
(22:22) I’d do my homework in the car while my mom drove me home, just so I could relax and do what I wanted later.
(22:37) That’s been my mentality for as long as I can remember.

Mattias
(22:42) I totally get that. I was the same way in school, and the corporate world really drove me crazy with all the pointless busywork.
(22:55) So, moving past that, when did you start hiring people to help with your business?

Wyatt Simon
(23:17) In 2021, I did the hardest thing I’ve ever done — I quit my cushy W-2 job in sales and started a property management company.
(23:22) I was making good money in sales and building my rental portfolio on the side, but the property manager we hired wasn’t doing a great job.
(23:50) We fired the first one, hired a second one, and they still weren’t performing.
(24:03) So I took responsibility and decided to start my own management company.
(24:18) It was the hardest thing I’ve ever done because I didn’t have the skill sets of a business owner.
(24:23) I was a good salesman and technician, but managing people and running a business was a whole different story.
(24:32) If you’ve ever read The E-Myth by Michael Gerber, he talks about the roles of a technician, a manager, and an entrepreneur.
(24:46) I was an entrepreneur and a technician, but not a manager.
(25:04) That’s when I started hiring. My first employee was a virtual assistant from the Philippines, and together we managed 76 units.
(25:19) As we grew, we had to hire more people, but it was a lot of trial and error.
(25:24) I failed a lot and it was incredibly stressful. Starting a property management company is not profitable, so only do it if you’re vertically integrating to manage a large portfolio.
(25:41) Operations are 80% of real estate.

Mattias
(25:44) Were you just managing your own properties, or did you manage other people’s as well?

Wyatt Simon
(25:48) Just my own properties or ones where I had an ownership interest.
(25:53) So that $20 million portfolio was all ours.

Mattias
(25:59) That’s great. Managing your own properties can be tough, though.
(26:03) The calls you get about problems can be annoying.
(26:15) I imagine the learning curve was steep. Did you build up systems for your employees to run, so you could focus on other things?

Wyatt Simon
(26:32) Exactly right. It starts with getting the right people.
(26:39) My first maintenance tech stole our company car, and I had to call the cops on him.
(26:49) He subcontracted work and didn’t pay the guy, who then showed up at my door on a Harley!
(27:06) I passed out four times from stress during that time, which is ironic for a podcast called The WELLthy Investor.
(27:15) But after hiring the right people, I could set up systems and processes.
(27:20) Now, I’m mainly involved in hiring and weekly meetings, and our team runs the day-to-day business.
(27:28) We just onboarded a new person today, and I cast the vision while our director handled the training.

Mattias
(27:40) Did you struggle with letting go and trusting others to handle things, or was that easy for you?

Wyatt Simon
(27:58) No, I didn’t have trouble with it.
(28:01) If anything, I

was too trusting and let the reins go too quickly.
(28:09) Without the right accountability in place, that led to problems.
(28:15) I had to answer for those issues because it was my money and investors’ money.
(28:24) Setting up accountability systems was crucial, but it was stressful because I didn’t have those systems in place initially.

Mattias
(28:34) Did you read any books or take courses to help you with setting up those systems? You’ve mentioned The E-Myth and others.

Wyatt Simon
(28:49) Yeah, The E-Myth is great.
(28:51) We run our business using Traction by Gino Wickman, which adds a lot of accountability.
(28:59) I also recommend Logan Rankin, who has 5,000 units and 100% ownership. He has great resources on property management.
(29:12) He’s an incredible operator and has free content on YouTube for anyone interested in learning more.

Mattias
(29:28) I love it. These are powerful lessons, especially for those starting a real estate business.
(29:46) Whether it’s running your sales or investment business, systems are key to scaling and finding freedom.
(30:01) Building up a business and learning how to delegate can give you the time to step back.
(30:09) I imagine it wasn’t always easy for you, but at this stage, do you feel thankful for having those systems and people in place?

Wyatt Simon
(30:18) Absolutely.
(30:21) I’d love to have even more, like 1,000 units and more people in place.
(30:28) But it’s definitely better than it was, and I feel more free than I did before.
(30:39) At every level, you’re growing, improving systems, and it’s a constant evolution in business.
(30:46) And the crazy part is that once you set up a system, as you grow, that system eventually breaks, and you have to redo it to fit the new size of your business.
(30:50) So business and entrepreneurship are just constant evolutions.
(30:53) But it’s not for everyone either, you know. It’s really hard work, and it takes constant adaptation.

Mattias
(30:56) Yeah, that’s true.
(31:08) In the process of writing my book, I’ve revisited some foundational concepts like Rich Dad Poor Dad and The Cashflow Quadrant.
(31:18) That shift from being an employee or self-employed to becoming a business owner or investor is what we’re talking about here.
(31:24) It’s not for everyone, but the advantages of setting up systems and taking time to build them can really free you up.
(31:32) A lot of people experience burnout because they try to do everything themselves.
(31:43) Learning how to delegate and automate gives you the ability to take a vacation without worrying about work.
(31:54) So kudos to you for setting that up and helping others learn how to do it too.
(31:57) Speaking of which, you’ve published a book, right?

Wyatt Simon
(32:04) Yes, I’m pumped about it.
(32:07) I’ve taken everything I’ve learned from years of listening to podcasts, reading books, and investing, and put it all into this book.
(32:19) It’s called Your First 100 Units: The Real Estate Investor’s Playbook for Scaling a Rental Portfolio, and it’s coming out on October 17, 2024 — my birthday.(32:50) I broke it down into three sections. The first one is all about getting started if you don’t know anything about real estate.
(33:00) The second part focuses on building systems to manage your portfolio efficiently.
(33:18) The third part is all about scaling — using other people’s money, syndications, and growing beyond the small stuff.
(33:24) It’s the roadmap I wish I had when I started out.

Mattias
(33:33) That’s super exciting.
(33:36) Where can people get the book when it comes out? Will it be on Amazon or through your website?

Wyatt Simon
(33:43) It’ll be on Amazon for $19.97.
(33:47) I joke that it’s almost cheaper than a cup of coffee these days.
(33:52) If you want to spend a few weeks with me through the book and download everything I’ve learned, it’s a great deal.

Mattias
(34:04) That’s awesome. I’m looking forward to it.
(34:06) Let’s talk about the third part of the book — scaling using other people’s money.
(34:13) Can you explain to our listeners what syndications are and how they work?

Wyatt Simon
(34:22) Absolutely.
(34:28) Syndications are a way to partner with other investors by pooling their money to buy larger assets, like multifamily properties, that you wouldn’t be able to buy on your own.
(34:42) This allows you to take advantage of good deals without having all the capital yourself.
(35:01) And it’s usually structured in a way where passive investors provide the capital, and the active investor — in this case, me — runs the deal.

Mattias
(35:05) It sounds similar to the BRRRR strategy or a flip, where you’re adding value to the property, improving operations, and increasing its worth.
(35:14) Then, you either refinance or sell to return the money to the investors, right?

Wyatt Simon
(35:22) Exactly!
(35:28) The value-add strategy is powerful because it’s hard to find a good deal that’s just buy-and-hold nowadays.
(35:33) We focus on properties with operational issues, and we come in and streamline the operations to add value.
(36:24) Once we’ve improved the property, we either refinance or sell, allowing our investors to stay in the deal for the long haul.
(36:35) That’s what a lot of our investors appreciate — they get their capital back while still owning equity in the property.

Mattias
(36:47) That’s amazing. So, an investor could put in $100,000, get it back after refinancing, and still own part of the property?
(37:06) It’s like infinite returns at that point. That’s powerful.

Wyatt Simon
(37:14) Absolutely.
(37:24) That’s the beauty of the BRRRR strategy and syndications. Once your cash is out, your return is infinite.
(37:35) That’s how we’ve been able to build our portfolio so quickly.

Mattias
(37:48) This is the power of information.
(37:50) Most people think real estate investing is about saving up 20-25% for a down payment, but there’s so much more out there.
(38:09) If you learn these strategies, you can unlock incredible opportunities.
(38:18) Of course, there are risks, but educating yourself and taking action can lead to massive success.
(38:28) If people want to learn more, I highly recommend reading your book, listening to podcasts, and soaking up as much information as possible.

Wyatt Simon
(38:48) Yeah, I appreciate that.
(38:49) It’s all information that’s been there forever, honestly.
(39:01) I didn’t invent anything new — I just learned from others and followed in their footsteps.
(39:05) All this knowledge is out there. You just have to seek it out and put it into practice.

Mattias
(39:36) Yeah, these strategies have been around for a long time, even before they were labeled.
(39:47) The other great thing about real estate investing is that there’s so much abundance — sharing this knowledge doesn’t hurt anyone.
(40:00) There are plenty of deals and opportunities for everyone.

Wyatt Simon
(40:09) Amen to that.
(40:11) It’s a win-win world when it comes to real estate investing.
(40:18) There’s more than enough for everyone to succeed if they take the time to learn and act.

Mattias
(40:25) What do you do to keep your mind right and handle stress when things get tough?
(40:34) What strategies have you found to keep you running optimally?

Wyatt Simon
(40:42) For me, getting in the gym is a must.
(40:48) I also read The Miracle Morning by Hal Elrod, and that book changed my life.
(40:56) I try to stick to the Miracle Morning routine as much as possible — exercising, visualizing, and setting my intentions for the day.

Mattias
(41:02) Yeah, the gym is key for me too. It helps me think better and de-stress.
(41:10) The Miracle Morning is great,

though I’ve struggled to keep up with it consistently.
(41:25) But when I do, my wife notices the difference — it really primes your brain for success.

Wyatt Simon
(41:36) Totally agree.
(41:38) I’m not perfect with it either, but even getting parts of it done makes a big difference for me.
(41:45) I also take time to set my goals and review what I want to accomplish every day.

Mattias
(42:01) That’s awesome. Setting intentions is so powerful.
(42:05) Do you focus on just a few top priorities each day?

Wyatt Simon
(42:08) Yeah, I write down the six most important things I need to accomplish, and I assign a time limit to each one.
(42:16) If it’s going to take me 13 hours, I know I’ve overcommitted. But if it’s around six hours, I know it’s realistic.
(42:26) That helps me stay organized and focused on what really matters.

Mattias
(42:35) That’s such good advice, especially calculating your hourly rate.
(42:44) Once you know your rate, you can focus on delegating tasks that are below that and maximizing your time.

Wyatt Simon
(42:58) Exactly.
(43:03) If you don’t know your hourly rate, that’s where you should start.
(43:05) Then eliminate the tasks that don’t meet that rate, and focus on your highest leverage activities.

Mattias
(43:14) That’s really powerful.
(43:23) This ties into the book The One Thing as well, right? Focusing on the one thing that will make the biggest impact.

Wyatt Simon
(43:33) 100%.
(43:40) Every morning, I review my goals — yearly, quarterly, monthly, and weekly.
(43:48) That daily review keeps me on track with my big picture vision and helps me stay focused on my priorities.

Mattias
(44:13) That’s such a great system. Living intentionally is key to reaching your goals.
(44:41) I feel like we could talk for hours, but I want to respect your time.
(44:45) Where can people find you online and follow your journey?

Wyatt Simon
(44:52) You can find me at WyattSimon.com, where I offer a lot of free resources for real estate investors.
(45:01) I’m also on Instagram @wyattbuysbuildings and most active on Facebook. You can find me there as well.
(45:09) If you want to talk further or work with me, I also offer coaching to help others scale their real estate portfolios.

Mattias
(45:22) Awesome. This has been a great conversation.
(45:24) Thank you so much for your time, Wyatt, and for sharing all your knowledge with us.

Wyatt Simon
(45:34) Thanks for having me. I really enjoyed it!

Mattias
(45:40) And thanks to everyone for listening to The WELLthy Investor podcast, where we talk about wealth and holistic health.
(45:50) Subscribe wherever you get your podcasts, and don’t forget to follow us on social media at The WELLthy Investor. See you next time!