How Alex Wilson Turned a $39,000 Deposit Into a $20M Real Estate Portfolio (And the 4 Strategies Behind It)
How I Turned a $39,000 Deposit Into a $20M Real Estate Portfolio
By Alex Wilson, Broker Owner, RE/MAX Wealth Builders
If you’ve ever heard someone say, “Sure, you can make money in real estate…” and felt like they skipped the part where they explain how—this is that missing piece.
In this presentation, I walked through my real estate investing journey starting in 2012, and how I turned an initial $39,000 deposit into a portfolio that’s now worth roughly $20 million (including an office building and my personal residence; the rental portfolio alone is over $17M).
The goal here isn’t to impress you with a number. It’s to break down the repeatable techniques that made it possible—because everything I did is achievable for everyday investors, as long as you understand two things:
Leverage is a tool (when used responsibly).
Time is the multiplier.
And when those two work together, wealth becomes exponential—not linear.
The Big Idea: Why “Buy and Hold” Wins
Most investors obsess over monthly cash flow. I get it—cash flow feels tangible.
But here’s what I want you to consider:
Cash flow is helpful… but it rarely changes your life early on.
Equity growth + mortgage paydown + time is what creates real wealth.
My rental properties are on long amortizations, and I didn’t pay down those mortgages—my tenants did. In 30 years, the mortgages are gone, and the assets remain.
To project long-term outcomes, I use a conservative 3% compounded annual growth rate (CAGR). At that pace, a portfolio around $17M today can grow into something like $40M+ over 30 years.
That’s when real estate becomes financial freedom—and potentially generational wealth.
The 4 Techniques That Built the Portfolio
1) Refinance Equity to Buy More Properties (Without Selling)
This was the foundation.
The first deal (the “$39,000 deposit”)
Back in December 2012, I bought a pre-construction condo for $262,400 with a 15% down payment. That total deposit was roughly $39,380.
I didn’t have all the money on day one. I handled it in staged deposits (common in pre-construction), and I figured out the final chunk before it was due.
When the condo completed and I took possession in 2016, I got a mortgage—then the key thing happened:
The property value had nearly doubled.
The move that changes everything: refinance, don’t sell
Instead of selling and paying taxes, I refinanced.
Market value (approx.): $500,000
New mortgage at ~80% loan-to-value: $400,000
Paid off existing mortgage: ~$209,000
Equity pulled out to reinvest: ~$190,000 (tax-free refinancing proceeds)
Then I used that capital to buy two more properties.
Now instead of one asset rising in value, I had three.
Why this wins vs “just cash flow”
Rental cash flow is taxed as income (often heavily). Equity growth is generally taxed more favorably (capital gains rules apply when you sell), and refinancing isn’t a taxable event because you didn’t sell.
The point:
One property going up in value is good.
Three properties going up in value is life-changing.
2) Joint Ventures + Apartment Buildings (The “Active” Strategy)
The second strategy was joint venture partnerships, specifically buying an apartment building and creating value through renovations and increased rents.
In 2014, I partnered with:
an experienced apartment-building investor, and
a mortgage broker partner.
We bought a Hamilton apartment building for $925,000 and completed about $400,000 in renovations.
Why private money mattered
During heavy renovations, traditional lenders often won’t finance the project the same way because units may not be producing rent yet.
So we used private financing for:
the down payment
renovation capital
Private money is expensive (higher interest), but the tradeoff is speed and flexibility.
The value-creation timeline (simplified)
2014 purchase: $925K
2019 refinance: ~$2.1M valuation
2022 refinance: ~$3.0M valuation
Recent appraisal: ~$4.0M
This approach is often summarized as BRRRR:
Buy → Renovate → Rent → Refinance → Repeat
Important honesty: this strategy was stressful
This is not passive investing.
Renovations come with:
contractor issues
city delays
shutdowns/red tape
cash calls
timelines that shift
It worked—and it was profitable—but it demanded time, energy, and risk tolerance.
If pre-construction is “write checks, wait, close,” this was the opposite.
3) Live in a Multiplex as Your First “House”
This was one of the best decisions I made.
In 2016, my wife and I bought a triplex for $1.65M.
People hear that price and assume it’s worse than buying a regular house—but here’s the difference:
A typical house:
big mortgage
no income
A multiplex:
big mortgage
income that supports the mortgage
In our case, the triplex produced about $4,900/month in rent.
The power move: refinance + tax efficiency
A year later, the property appraised higher (around $2M), and we accessed roughly $280,000 through a credit facility.
When you borrow against real estate to reinvest, and the borrowing is structured properly, the interest may be deductible—but always confirm with your accountant.
The core idea is simple:
Live in a property that helps pay for itself.
Let appreciation grow the equity.
Refinance to buy additional assets.
This strategy builds your portfolio while you still live your life.
4) Buy Through Corporations (If You Own a Business)
This one won’t apply to everyone, but it’s powerful for entrepreneurs.
When you earn personally at a high tax bracket, you lose a lot to taxes. Small business tax rates (on eligible income) can be substantially lower, which can leave more investable capital inside the corporation.
The concept I outlined:
Keep more earnings in the operating company
Move capital into holding companies (properly structured)
Buy long-term real estate assets there
This can increase how much investable money you have working for you each year.
Important note: Corporate structuring is complex—this is a “talk to your accountant” strategy, not a DIY move.
Where’s the Opportunity Now? The Condo Market
At the end of the talk, I made something very clear:
I see opportunity in today’s market—especially in condos.
Right now, many investment condos look unattractive on paper because:
interest rates pushed carrying costs up
a lot of investors are negative cash flowing
inventory (supply) has been elevated in certain pockets
But that’s exactly where opportunity tends to show up—when sentiment is weak.
The thesis (as shared in the presentation)
Rates trending down improves cash flow math
As cash flow improves, fewer landlords feel forced to sell
That reduces resale supply pressure
Meanwhile, a major factor on the horizon is future supply: if pre-construction sales slow dramatically for years, fewer buildings get built—and that supply gap can show up later
In other words:
You may be able to buy assets at a discount today that look very different in 18–36 months.
(These are market opinions based on the presentation—always validate with your own underwriting, timelines, and risk tolerance.)
Final Takeaway: Leverage + Time = Exponential Results
There are many ways to invest in real estate:
condos
multiplexes
apartment buildings
REITs
development funds
But every strategy I used shares the same common thread:
✅ Use leverage responsibly
✅ Hold long enough for time to do the heavy lifting
✅ Reinvest equity to multiply assets
That’s how $39,000 becomes a portfolio.
Not overnight. Not with hype.
With a repeatable system and patience.
Want to talk strategy?
If you’re trying to map out your own investor strategy—especially in today’s condo market—here are two good next moves:
Watch the full video (so you can hear the examples and context).
Book a strategy call to pressure-test your plan, your timeline, and your numbers. Click here to Book a call .
or reach out direct:
Alexander Wilson
#2 Individual RE/MAX Agent for Closed Sales in Canada 2024
#1 Individual RE/MAX Agent for Closed Sales in Canada 2022
Member of RE/MAX Circle of Legends
Broker Owner
RE/MAX Wealth Builders Real Estate
Email: contact@alexjwilson.com
Office: (416) 652-5000
Mobile: (416) 996-5181
Chapters
0:00 How I Turned $39,000 Into a $20M Real Estate Portfolio
0:06Welcome + Why I’m Sharing My Full Investing Playbook
0:44 Alex Wilson’s Background & Real Estate Track Record
1:50 Buy & Hold Strategy: Why Tenants Pay Down Your Mortgages
2:34 Long-Term Wealth Math: 3% CAGR = $42M Portfolio
3:12 The 4 Techniques I Used to Build Wealth
3:22 Strategy #1 – Refinance Equity to Buy More Properties
3:28 First Pre-Construction Condo Deal Breakdown ($39K Deposit)
4:42 Property Doubles in Value After Closing
5:27 Cash Flow vs Equity Growth: Which Builds More Wealth?
5:42 Refinancing to Pull Out $190,000 Tax-Free
6:27 Turning 1 Property Into 3 Properties 7:18 $39K → $727K Gain Explained
8:05 Tax Efficiency: Capital Gains vs Rental Income
10:05 Strategy #2 – Joint Ventures & Apartment Buildings (BRRRR)
10:37 Buying a Hamilton Apartment Building With Partners
11:28 Using Private Money for Down Payments & Renovations
12:40 Refinance Results: $925K → $3M+ Value
13:56 The Reality: Why Active Investing Is Stressful
16:35 Strategy #3 – Live in a Multiplex to Accelerate Wealth
16:54 Buying a Triplex Instead of a House
17:45 Rental Income Covers the Mortgage
18:03 Refinance Creates $280K to Reinvest
18:47 Appreciation vs Cash Flow Investing Explained
19:40 Building Generational Wealth With Real Estate
20:26 Strategy #4 – Buying Through Corporations & Holding Companies
21:06 Small Business Tax Advantage (12% vs 53%)
21:49 Reinvesting Corporate Profits Into Property
22:42 Recap of All 4 Wealth-Building Strategies
23:59 Where I See Opportunity Today
25:25 Why Today’s Condo Market Is a Buying Window
26:08 Interest Rates Falling = Cash Flow Improves
27:13 How Prices Can Rebound Over the Next 18–24 Months
28:43 Supply Crunch Coming (Few New Builds After 2026)
29:48 REITs & Real Estate Signals From the Market
30:07 Q&A