 Rolex. I could get a Lamborghini. I could get a new house. I could buy fancy designer jacket. I don't know. I could buy anything. Welcome back to the channel, everybody. For those of you who are new around here, my name is Michael, aka Dr. Chlini, and I am a board certified diagnostic and interventional radiologist in New Jersey. So you may realize I am not wearing the normal scrub attire. That is because I mean business during this video. Now I'm just kidding. I actually have a dinner to go to right after this, but I was trying to get this video done for a long time now and I had to wait until, well, I'll just, I'll get into the video and I'll tell you the details. So we are going to be talking about how I spent my very first paycheck as an attending interventional radiologist. That big, fat paycheck you get. Very first paycheck. What did I do with it? Some people buy fancy cars. Some people save it, put it in their savings account and earn 0.001% interest and lose money their whole life. I wanted to tell you what I did with my first paycheck. Maybe it'll entice you to do the same. Going for it. Let's go. Okay, so I did something a little unconventional with my first paycheck. So let's just preface this a little bit. I already own some rental properties that we bought last year and my older brother and my long-term family friend also own properties back in Georgia where we are from. We decided to kind of up the ante this year and start doing other investment properties such as like rehab flips and the Burr strategy. And for those of you who don't know what the Burr method is, we'll put it up here. It is buy, rehab, rent, refinance and repeat. Those of you who don't know what that is, I encourage you to do some research on it. We'll touch on a little bit here and tell you what we kind of did. So my first paycheck, I was approached by both my older brother and my long-term family friend who were now kind of business partners to the other on these real estate ventures. We decided to do our own flip or our own Burr, if you will, minus the last R because we wanted to see how well it did before we did it again. So our real estate agent down in Atlanta approached us with a good flip opportunity. We decided to go for it and that's what I spent my first paycheck on. So I'm going to get into a little bit of the details of buying this house, flipping in how much I made on it. If you are interested in this kind of stuff, awesome. I know a lot of people on this channel are like, why is he talking about real estate? But this is one of my passions and I love investing in things and obviously making money off of them. So if you're interested in that, pay attention to the next segment. We'll get into a little bit of the details. And if you're not interested in that, fast forward to this timestamp right here and I'll tell you what I made off of this investment. That's probably what you care about anyways, right? So let's get into the nitty gritty. All right, so if you're still here for this part, you want to know about the numbers. So let's get into it straight off the bat here. So for this house, it was originally listed for, I think somewhere around $220,000. We ended up going under contract, found some issues with the house and got the seller down to $163,000 for this home. So might not mention this is a four bedroom, two and a half bathroom, 2,000 plus square foot house in Kennesaw, Georgia. And I'll show you a little bit of the property in just a minute, but I just wanted to get into the numbers. So put this up on the screen here. So $163,000 was our final purchase price. Our budget for rehab was $65,000, giving us a grand total of $228,000 spent all said and done for this house before we can put it up for sale or rent or whatever. Our target value for refinancing this property, which is why we were doing this to begin with, we were planning on doing the burn method, but then about halfway through we kind of switched and I'll get into that a little later. Our goal target value for this house was $300,000. As you can see, $228,000 all in cost in a sale or refinance at a value of $300,000 gives us a net profit of $72,000. So it's not a bad investment, especially splitting $72,000, three ways, which is I can't do that off the top of my head. Let me do it real quick. $24,000 each and after a couple of months, that's not a bad profit for very minimal work. So let me get into the actual property itself and luckily my business partner, Jason, who I've known since I was like five years old now, he's also best friends with my older brother who's the other business partner in this deal. He actually went and saw the properties, checked him out, he does this all the time. He's an engineer, he loves this kind of stuff and invests a lot on his own and he's kind of what got us started in this whole process and I'll let him, this little one minute video, it kind of shows you the house and gives you an overview of what we're kind of dealing with and walking into up front. So here is Jason to give you a quick rundown on this house. Hey everyone, my name is Jason Schmaltz and today I'm gonna talk to you about a project I'm doing with Dr. Cilini and Dr. Vedder Medicine Cilini. This is a real estate investor project that we are doing a third, a third, a third on and this is the house in Kennesaw, Georgia and we bought the house for 163,000 with the rehab budget of 65,000. There's quite a bit of work to do that I'm gonna show you and our target is to hit a market value between 290 and 300,000 when it's all said and done. Now don't be fooled by his belt buckle. He's actually knowledgeable on the real estate game. Pretty good about this and luckily he filmed these videos before we started this project and it's an excellent way to kind of compare what we were envisioning and what we finally ended up with as a finished product. It's awesome. Right now I'm gonna take you inside to show you the current condition of part of the house but on the outside you can see there's already problems with the roof so there's gonna be a brand new roof. There's also some problems with holes in the siding so we're gonna completely replace the siding at this point it just doesn't make sense of the branch work so let's take a look inside and see what it looks like. So like I said, our original plan for this house was to buy which is the B in the birth strategy, rehab which is the first R. Our next plan was to rent out the house after we renovated it and then we planned on refinancing the house and taking that sum based off the new value post renovations and essentially paying off our initial investment, paying us the remainder of the profit and using that to essentially go on to another deal. So I'll give you a quick example here and we can put these numbers up as well so you refinance off of the new $300,000 appraisal which is what we thought this house would be at after all of the renovations according to comps around the neighborhood and recent sales, $300,000 appraisal which at a 75% loan to value which is what the banks usually give you on refinances it gives you a total of $225,000 cash which means we were all into the property for $3,000 or $1,000 apiece if you think of it that way. So essentially after all of this we bought a property for $1,000 each and we have something that can rent out in cash flow and perpetuity. And since the market rents in this area we're ranging somewhere between $2,200 and $2,400 a month we would be cash flowing positive approximately $1,200 a month as long as we had a tenant in there because if you get a $225,000 mortgage at about 3.4% it would give you around $1,000 a month so $1,200 and $1,400 a month profit every single month for as long as we want. So you own a house for $3,000 and you get paid $1,200 to $1,400 cash every single month forever as long as you have a tenant. Sounds pretty good doesn't it? And this is kind of the strategy we use with our other rental properties but this was our first official flip and birth strategy. So I'll give you a little more insight of the actual house itself and then I'll show you some final pictures at the end. It's pretty alarming the difference in how much you can do with such a little budget. So as you can see there's a lot of different issues with this house and for instance this is just a living room, it looks terrible and the previous owner did not keep up with it so there's a pretty solid amount of renovation to go into this which is why we budgeted for $65,000. Okay so this is the kitchen dotting area. The good thing is the cabinets are actually in decent shape so we're just going to clean those up and put the hardware on them. Okay so we're here at the master bedroom. We're going to do all new carpet, take down the wallpaper, repaint. You can come over and see the master bathroom. So we'll keep the tub as is, we'll remove this tile. So we thought the basement was the main selling point of this house. We could have left it like this and saved ourselves a whole bunch of money but we ended up putting a little more into the basement. So we ended up putting an additional 12,000 in renovating the basement and putting in some nice recess lighting. So this renovation addition basically bumped us up to 245,000 all in cost. So our original plan was 225,000. We ended up with a total all in cost of 245,000 but we still thought our profit was going to be pretty good because well, we'll get into that in a second. This house should be a great rehab and hold for about a two to three year horizon and then hopefully we'll sell it for around, I think our target price is like 330 to 350. So this is a little bit of foreshadowing. So our original plan, which is I'm so glad he made this video before we started the project. So we were gonna refinance it, rent it out for at least three years and then sell it later on for like 330, maybe 350 if we were lucky. However, things changed dramatically during this renovation. The houses in the area we're selling at a crazy high rate. And as you know, real estate in the US right now is so hot, nobody can find a home in most homes they are in a bidding war for and they're paying well over the asking price just to kind of battle out and win the property. So the three of us put our heads together and we had a conversation and we basically decided to just go ahead and sell it and we'll take the profits and reinvest into another venture and it'll be a quick flip in a couple months which is what it took. It took basically three months time, minimal effort and that was our goal. So if you remember now we were all in for $245,000 and we decided to list it at $329,000 which was a nice sweet spot and we felt like it would get a lot of traction, a lot of excitement would build around this. It's in a nice area and we thought maybe we'd get lucky and have a bidding war. Before we get into that let me show you the final product here. These are just some images I'll throw up on the screen and it is dramatically different, as you can tell. Just look at the outside of the house. It looks unbelievable compared to what it did prior and the prior videos, the kitchen, gorgeous and also the basement fully finished out. We painted the whole house. It looks beautiful. I was actually joking around. I was like, I may buy you guys out because I may wanna live here. That's how nice it is. All right, so let's get into the final numbers breakdown so you can see exactly how much money we made off this project. We were all in $245,000 if you remember. I've said that like a million times now and we listed it for $329,000. Within 48 hours we got a total of 10 offers and we essentially had kind of a bidding war and we had four offers on the table. Two of them were all cash offers at $350,000 and two of them were financing offers at $360,000. So we thought we were gonna get $329,000 and we ended up going with an all cash offer of $350,000. And keep in mind, we thought we were gonna be like in the 300,000 mark and we weren't prepared to see how high it actually sold for. So it basically blew our mind and obviously we were excited because that just means more return on our investment. So what was my total return on my investments? Well, here you go. So we sold the house for $350,000. We had an initial investment post renovations for $245,000. So 350 minus $245,000 is a grand total of $105,000 profit in literally three months maybe. So I think that's a pretty good return on our investment if you ask me. And by the way, we obviously split it three ways because we are partners in this project. So it comes out to $35,000 a piece for really minimal effort. Now, I know what you're thinking. Okay, not everybody can just go out there and buy real estate and all this stuff. And that's partly true. You can do it. You just have to do your own research and really get into it. I'm also very fortunate because two of the people that I am partners with are very good with this kind of stuff. I have a small background in real estate. I own real estate investment properties myself down in Georgia. You know, worked out for the best. So I'm excited to see what the future holds and do this multiple times. So why did I ultimately do this video? It's not to brag about how much money I made so quickly. It's not to say I'm this huge real estate investor. The point of this video is to basically tell you that, A, when you first finally get your paycheck, don't go out and spend it on a Lamborghini or something. Put it to work. The whole point of having a higher income as a physician or in any other field is to use your income to your advantage and put it to work. Don't put it in a savings account. Don't buy a depreciated asset like a Lamborghini. Not that doctors can afford Lamborghinis. There's like two doctors that can afford Lamborghinis. And don't buy dumb depreciated assets. Invest your money wisely and you can make money off of your money. It's beautiful. The other reason I wanted to make this video was to show you that there are other ways to invest your money and real estate is a great option for those who are interested. This is not financial advice. I just wanted to show you what we did and what we plan on doing multiple times over in the future. And think about if you do this multiple times per year, you can increase your income dramatically and you can still work full-time while doing it. So hopefully you all enjoyed this video. If you want to see more like this, let me know in the comments below. If you are yawning, put to sleep, also let me know. I may do more of these. I may not. This is kind of like a feeler video to see if you're interested. Otherwise, smash the like, subscribe, and follow my Instagram and TikTok if you're already and I'll see you all on the next video. Bye.