People often ask me how I manage to juggle buying businesses, investing in real estate, producing films, and everything else I do.
They’ll say, “Walker, you’re the Buy Then Build guy – how does film production or real estate fit into that?”
My answer is simple: I don’t think in terms of strictly business. I think in terms of three asset classes.
These three asset classes guide my decisions on where I spend my time building and where I invest my earnings to grow long-term wealth.
Because – yes, I wrote the single best selling book on buying existing small businesses. If you’re not familiar with it, it’s a resource for entrepreneurs who realize you don’t have to start from scratch to build something successful.
In fact, if you’re new here – buying a business is an incredible way to step into entrepreneurship, generate cash flow from day one, and build a life of financial freedom.
Now, although cash flow from assets or investments is a big part of financial freedom, true wealth is built on your balance sheet. This is why I always say the path to real wealth is through business ownership in one form or another.
However, business isn’t the only asset that builds wealth, and once you can understand the opportunities outside of your preferred asset class, you can unlock a greater degree of financial freedom.
Today, I’m going to break down these three asset classes that guide where I spend my time, how I build value, and where I invest the earnings from the businesses I own.
The Three Asset Classes
The three asset classes are business, real estate, and intellectual property (IP). Together, they form the foundation of my financial strategy.
1. Businesses: The Engine of Wealth Creation
For me, everything starts with business ownership. It’s the foundation of financial freedom and the engine that powers the rest of my investments.
If you look into the research, the wealthiest people in the world are either entrepreneurs or private equity investors, and there’s a reason for that. Businesses offer unmatched opportunities for both building wealth and creating cash flow, and this is exactly why they’re the cornerstone of my portfolio.
That said, there are different ways to engage with this asset class. Whether you invest in one, operate an existing one, or start from scratch, there are a number of ways to make money from business.
Source: Debt-Free Doctor
Buying Businesses
Buying businesses specifically is one of the fastest and most reliable ways to build your wealth and it’s how I’ve personally grown as an entrepreneur.
When you buy an existing business, you’re stepping into a proven model – one that already has customers, cash flow, and operational systems in place. This is a huge advantage because it allows me to focus on optimizing and scaling the business rather than starting from scratch. On multiple occasions, I’ve been able to acquire businesses where the previous owners were ready to step away, leaving behind a well-oiled machine that just needed a fresh perspective to unlock its full potential.
Additionally, I’ve also tapped into the opportunities found in growth-through-acquisition, where I acquired additional companies to complement what I already owned, so I could create synergistic relationships that would create an exponential 1+1=3 effect when it came to business growth.
Starting Businesses
On the other hand, starting a business from scratch is a different challenge but can also be incredibly rewarding.
The key to having long-term success with a startup is to identify opportunities where you can bring something unique to the table.
Whether it’s launching a product that fills a gap in the market or building a strong brand in a niche industry, I tend to focus on areas where I see a clear path to growth. Startups are undeniably more labor-intensive in the early stages, but the payoff can be substantial when everything comes together.
Investing in Businesses
I also invest in other people’s businesses.
Over the years, I’ve taken minority positions in about two dozen companies. I believe in backing talented operators who have the vision and expertise to execute their ideas, but this approach has also allowed me to diversify my portfolio and benefit from opportunities I might not have pursued on my own.
Supporting these entrepreneurs isn’t just about returns; it’s also about contributing to innovation and growth in industries I’m passionate about. Additionally, from a personal standpoint, these are entrepreneurs who are often taking personal risks, putting their names to personal guarantees, and I enjoy being there to support their journey and share in the success.
Whether I’m buying, building, or investing in one, these assets contribute directly to my balance sheet. They simultaneously create cash flow in the short-term and wealth long-term, making businesses a cornerstone of financial freedom.
2. Real Estate: A Wealth Accelerator
Real estate has been known for decades as the primary way to build wealth, ever since Congress established real estate investment trusts (REITs) in the 1960s to give investors access to income-producing real estate.
There’s a good reason why – real estate provides something that businesses and intellectual property often don’t: tangible, physical assets that are inherently valuable. Banks love real estate because it offers collateral, which has made it easier to secure financing for it and ultimately grow a portfolio.
Source: Investopedia
I turn to real estate as a way to amplify and stabilize my wealth, only once my businesses generate consistent cash flow.
For me, real estate isn’t about replacing my focus on businesses but complementing it.
I’ve never been the type to spend weekends flipping houses or swinging a hammer to renovate properties. My focus has always been on buying businesses and putting everything I had into growing them because, in my view, the upside potential of businesses far outweighs that of real estate.
That said, real estate plays a vital role as a wealth accelerator.
Many successful entrepreneurs I know have built their fortunes through business ownership and then strategically invested in real estate to multiply their wealth. On the flip side, those who focus solely on real estate often encounter a ceiling – it’s harder to scale without additional income streams to fund growth. That’s why I see real estate as a complementary strategy, not the core of my approach.
There are many types of real estate to invest in, and I’ve invested in a few over the years.
Short-term Rentals
One of the most accessible and rewarding strategies has been short-term rentals, especially with platforms like Airbnb that make it easier than ever to turn a property into a high-income asset. Short-term rentals tend to outperform traditional long-term rentals, but they do require more hands-on management. The returns can justify the effort, but it needs to be done correctly.
Ground-up Development
Another area I’ve explored is ground-up development. Building properties from scratch involves more risk and complexity, but it can be lucrative if you understand the market and manage costs effectively. Similarly, investing in multifamily units – like apartment complexes – offers steady cash flow and long-term appreciation. Multifamily properties are particularly appealing because they provide economies of scale, making them more resilient to market fluctuations.
Fix-and-flip Projects
I’ve also invested in fix-and-flip projects, where properties are renovated and sold for a profit. While I don’t do the work myself, I work with skilled teams who handle the renovations. This approach allows me to focus on strategy and execution without getting bogged down in the day-to-day work.
Each strategy in real estate has its nuances and potential, and while I don’t dive deeply into each one here, they all serve the same purpose: turning active income into long-term, stable wealth. Real estate is a “whole thing” in its own right, but for me, it’s an integral part of a larger strategy that starts with business ownership.
3. Intellectual Property: Creating Value from Ideas
The third asset class I focus on is intellectual property (IP), and this one often surprises people. When they learn I’ve been producing films for over a decade, they’re quick to ask how that fits into everything else I do, and the answer is simple: IP.
Source: WallStreetMojo
IP is an asset, just like a business or a piece of real estate, but instead of being tangible, it’s entirely based on ideas.
As an executive producer, my role revolves around anchoring to an IP that already exists – much like acquiring an established business or adding value to a real estate property. I look for IP with potential, whether it’s a script, a concept, or a franchise, and then assemble the right team, raise capital, and oversee its marketability. My focus is on guiding the project to success, not on creative control. While the creative side sounds fun, it’s not my strength, so I leave it to the experts – the people whose special formula makes it work.
IP goes beyond films. Right now, for example, I’m a significant investor in the 007 video game franchise. In this case, 007 represents intellectual property with an established brand and audience. Similarly, my book Buy Then Build is intellectual property that I created, and even my YouTube channel or email newsletter is a form of IP I’m building. While I don’t monetize these channels yet, it’s still an asset with long-term potential.
What excites me most about IP is its potential for outsized returns, and this is precisely why it’s one of the three anchors of my financial strategy.
Unlike real estate, which is inherently limited by its physical nature, IP can grow exponentially. A single idea, when executed well, can turn into a powerful asset that generates value for years to come. With business and real estate, these three classes form a balanced portfolio that spans the private capital markets and fuels my financial growth.
Balancing the Tangible and Intangible
One of the things I find fascinating about these asset classes is the spectrum between tangible and intangible assets.
IP: The Intangible Asset
On one end, you have intellectual property – entirely intangible. It’s often just an idea, information, or digital presence, like a website or a film. When you first encounter IP, it can feel unsettling because there’s “nothing there” in the traditional sense. A website, for example, is a digital asset that exists in the virtual world – it’s not something you can hold in your hands. Yet, with the right execution, it can grow into something immensely valuable.
Real Estate: The Very Tangible Asset
On the other end of the spectrum is real estate, an incredibly tangible asset. A building is something you can physically see, touch, and measure. It’s inherently stable, which is why banks love lending against it. Real estate provides clear downside protection because its value is rooted in the physical world. That tangibility offers a sense of security that many investors, especially first-timers, find comforting.
Business: Balance of Tangible and Intangible
Businesses often sit in the middle, blending elements of both the tangible and intangible. A company might own machinery, inventory, or real estate – tangible assets that provide collateral and stability. At the same time, the real magic lies in the intangible aspects: the people, processes, systems, customer relationships, and intellectual property that make the business run. These are assets you can’t touch but are often the key drivers of value.
This mix of tangible and intangible is what makes businesses such a compelling investment for me. Unlike pure IP, businesses often have enough tangible value to secure financing, making them accessible to a broader range of buyers. At the same time, the intangible elements provide opportunities for exponential growth, innovation, and scalability.
For me, understanding this spectrum is essential to building and investing in assets that contribute to my balance sheet and long-term financial freedom. Whether it’s leveraging the stability of real estate, the creativity of IP, or the hybrid nature of businesses, each asset class offers unique ways to create, acquire, and grow value. It’s this diversity of tangible and intangible assets that shapes how I approach building wealth.
The Path to Financial Freedom
Building value is the core of everything I do.
Whether it’s through businesses, real estate, or intellectual property, these three asset classes have helped me grow my balance sheet, create multiple income streams, and ultimately achieve financial freedom.
If you’re looking to do the same, the key is to start where you can create or acquire value.
Whether it’s buying a business, investing in real estate, or developing intellectual property, each of these paths offers unique opportunities to build wealth. With the right strategy and a focus on long-term growth, financial freedom isn’t just a possibility – it’s a reality waiting to be built.
If you’re ready to acquire a business in the next 12 months, the Acquisition Lab is your first stop. Reach out to us today and get on the fast track to becoming an acquisition entrepreneur.
