October 26, 2024 • 44 mins
Brian Davila shares his inspiring transition from barbershop owner to real estate success. Learn how he started as a realtor, moved into flipping and wholesaling, and overcame challenges like tight budgets and the impact of COVID-19. Discover his strategies for choosing between flips and wholesales, adapting to rising interest rates, building top-performing sales teams, and managing projects efficiently. Brian also dives into leadership insights, future business goals, and how he leverages tools like ChatGPT to optimize processes. This episode is packed with actionable tips for anyone looking to succeed in real estate!
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Episode Transcript
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Mike (00:00):
All right, everyone, welcome to the real estate game
changer show.
I'm your host, Mike McKay basedin Jacksonville, Florida, and
each and every week we do thisshow with people who are
changing the game of real estateall over the country.
And this is a live show guys.
So if you have any questions,please put them in the comments
for our guests to answer.
If anyone is in the Jacksonvillearea and has been thinking about
(00:22):
getting into real estate, uh, Weare hiring sales reps for our
team.
Sales experience is great, butif you don't have it and you're
hungry, we're still interestedin talking to you.
So if that sounds like you, sendme a DM on Instagram and let's
talk.
And this week on the show, wehave Brian Davila.
Brian, welcome to the show.
Brian Davila (00:41):
Thank you for having me on, brother.
I appreciate you, uh, letting mebe on your show.
Mike (00:46):
For sure, man.
So for the people who don't knowyou, could you tell us how you
got into the real estatebusiness and how that's led you
to where you are today?
Brian Davila (00:57):
Yeah.
So, um, I actually started inreal estate, uh, when I was
about 25 years old, so I feltlike I started a little bit
late.
I had a nine to five job.
Um, I met someone at a businessthat I owned.
I owned a barber shop back inthe day.
Right.
(01:17):
Um, crazy, right?
Barber shop, no hair.
Interesting.
Uh, I did.
Very short hair, but I had hairbut um, I owned a barbershop and
the barbershop was actuallyfailing So the business was
literally just going down and Iwas sitting there I was sitting
in there one day and some guywalked in told me about him
(01:40):
Being a realtor.
He said, you know realtors makelike 50 to 60 K a year So I was
like dude, that's more than I'mmaking that's really good job.
So that's what initially got meInterested in real estate.
So became a realtor, you know,did very well as a realtor is
making up to like 500, 000 ayear as a real estate agent.
(02:01):
Um, and then transition toflipping and wholesaling houses.
Cause I saw there was like moreupside to that.
Um, so then since then beenflipping wholesaling, uh, bought
rentals, own some Airbnb, boughtsome like small four plexes, um,
yeah.
And since then I've done aboutlike 400 real estate
transactions myself.
Off.
Um, and yeah, I host a podcastto teaching people about how to
(02:24):
flip and wholesale real estate.
Mike (02:27):
Cool.
And then when you made thattransition from being an agent
to kind of flipping andwholesaling, which one did you
start with?
Brian Davila (02:36):
Um, so I started off flipping, so I wanted to
flip houses.
Um, I thought, you know, theflippers make more money.
So I was just like, I just wentall in on flipping houses.
Mike (02:48):
Yeah.
And were you like, where wereyou getting your inventory at
the time?
Yeah.
Brian Davila (02:53):
Uh, so I used to get all of my inventory as a
realtor from cold calling.
So what I used to do is justlike, instead of pitching them
on, uh, letting me list theirhouse, I was just pitching them
on letting me buy their house.
Mike (03:06):
Gotcha, okay.
And um, you know, I'm sure therehave been some challenges along
the way from zero to 400 deals.
What were some big inflectionpoints and challenges you faced
early on, maybe in the first twoyears you were doing it?
Brian Davila (03:22):
Um, so I guess it took me like a year of like
thinking about flipping my firsthouse to actually doing it.
So that was like a biginflection point getting from
zero to one took me like a wholeyear.
And then after I startedflipping, there was like another
(03:43):
inflection point where I Wouldlike run out of money.
So I was only able to flip asmany houses as I could
personally afford.
Um, so once I started likeraising capital and partnering
with people, that's when mybusiness like really blew up.
Um, COVID was another inflectionpoint because, you know, prices
(04:05):
went up.
So we were just crushing it,flipping houses in Southern
California.
When everything was going likethis, when interest rates rose
and, you know, uh, Pricesdropped.
That was like a, like aninflection point down.
So yeah, there's been a few,there's been a few ups and downs
(04:26):
through the last few years.
Mike (04:29):
How long did it take you when you were using your own
money to flip to decide, okay,like it's time to bring in some
outside capital?
Brian Davila (04:36):
Um, I actually flipped with my own capital for
probably, um, maybe like thefirst two years.
Um, because Yeah, I didn't evenI'm very risk adverse.
I'm very like not a riskyperson.
So I didn't feel comfortableusing other people's money to
like flip houses or even topartner with someone like
(04:59):
putting my name on anything withsomeone else.
I was like very like riskadverse.
So I didn't want to do that.
So it took me like two yearsbefore I started like partnering
and raising some money.
Mike (05:12):
you to kind of overcome that obstacle?
In your mind.
Brian Davila (05:16):
So literally I just ran out of money.
There was like no other option.
So I was like, all right, likeif you're flipping houses and
you have, let's say a hundred Kand if the hundred Ks in the,
you know, in a house, then Icouldn't just like not do
anything.
So I kind of like got to thepoint where I was like, Oh, like
I have to like, I got to dosomething.
(05:38):
And I didn't really want towholesale.
I was never like a bigwholesaler until recently.
Um, so I was just like, okay,I'm going to have to like, Buy
some deals, uh, with otherpeople's money.
Mike (05:50):
Yeah.
And did you go out and get hardmoney or did you get money from
people that you knew?
Brian Davila (05:57):
Oh, no, I, I've always used hard money, so I've
always used hard money.
And then I started raising moneyfor, uh, the down payment and
rehab with other people's money.
What do you do?
Do you flip houses or what'syour deal?
Mike (06:10):
we flip and we wholesale too.
Or sometimes we just buy stuffand put it on the MLS.
That's one of my favorite.
Brian Davila (06:15):
oh, okay.
Got it.
And only in Jacksonville.
Mike (06:18):
Greater Jacksonville.
Um, and our big thing isactually that we, we flip a lot
of mobile homes on land.
That's our big target.
Brian Davila (06:26):
Oh, okay.
Sweet.
That's pretty cool.
Mike (06:30):
um, so you said something before you said, I was never a
big wholesaler until recently.
Brian Davila (06:36):
Yeah.
Mike (06:37):
What made you make that change?
Brian Davila (06:40):
Well, dude, I don't know about you, but over
here, uh, on the West Coast, theBest Coast, it is slow as crap.
You know, the market isextremely stagnant, like
extreme, like it's actually badright now.
So.
Earlier this year, I was like,dude, like some of our wholesale
(07:01):
deals are making just as much asour flips when I started looking
at the numbers.
And then
Mike (07:07):
I think you, tap something on your mic because it's, it's
echoing.
Brian Davila (07:12):
now, yeah, yours is echoing too.
Now.
I don't know why.
Mike (07:15):
now, you're good.
All right.
You're good.
Brian Davila (07:17):
But, um, what I was saying was like earlier this
year, I could feel the marketwas a little bit slower and I
was looking at the books and ourwholesales were making just as
much as our flips.
So I was like, you know what,like, even though I've never
liked wholesaling, I think rightnow might be a good time to just
(07:39):
focus more on wholesaling thanflipping.
So this is like the first yearthat we've.
Wholesale done.
Uh, we focus more onwholesaling.
Mike (07:47):
Gotcha.
What changes did you have tomake to obviously switch to like
a more wholesaling model versusflipping?
Brian Davila (07:55):
Um, well first is like mindset because I'm
literally used to always buyingthe house.
So sometimes like when you'rewholesaling, you're like, I can
make 20 K wholesaling, but I'mgiving up 40 K.
So like getting over that forsure.
Um, and then that's pretty muchit.
I mean, I already knew how towholesale.
Like I, I have wholesaled thelast few years, but not like
(08:17):
making it like the primary thingversus flipping.
It's always been like flipfirst, then wholesale now kind
of like almost flipping it whereit's like more wholesaling and
equal to flipping type of thing.
Mike (08:32):
Yeah.
How are you making a decisionwhen you get a property, if
you're going to flip it orwholesale it?
Brian Davila (08:38):
So for me, uh, I don't want to do any heavy
rehab.
So if it's a heavy rehab, I'mfor sure going to wholesale it.
Um, if it's like on a busystreet, if it's like, if it's
like, she's like a weirdproperty that I'm not sure if
it's going to sell as much asthe other comps.
Um, also depends on the area.
So if we're flipping an LA, Iwant to make at least 60, 000
(08:59):
for sure.
If it's like San BernardinoCounty, at least 40, 000.
Um, I like.
quick flips, not trying to dealwith tenants, um, not trying to
build a to use or add squarefootage.
So it just has to be like cookiecutter, easy, quick flip, or I'm
going to wholesale it.
Mike (09:18):
Gotcha.
What do you consider a heavyrehab?
Brian Davila (09:24):
Um, anything where I'm spending more than like 50
grand is like a heavy rehab.
Mike (09:28):
Okay.
Yeah.
So nothing, that's not even thatcrazy.
Yeah.
Brian Davila (09:32):
Yeah, yeah, so yeah, nothing, nothing where
we're like doing the roof anddoing the AC and doing the new
electrical like none of that hasto be like cosmetic or like by
enlisted type of thing.
Mike (09:47):
Okay.
And is your primary acquisitionschannel direct to seller still,
or?
Brian Davila (09:52):
Ah, so direct to seller, we're doing some direct
to agent, and then we're doingsome Facebook ads.
So it's like a blend.
And then I get people that hitme up on social media.
So it's like relationships.
So it's like a blend of allthree.
Mike (10:09):
Gotcha.
And then, You know, over theyears, I mean, I know you said
there were some differentinflection points, obviously
before this was kind of interestrates rising.
And that obviously having aneffect, I'm not sure.
I'm sure it affected you guys,but I
Brian Davila (10:24):
For sure.
Mike (10:25):
us.
Um, what happened in your marketduring that and how did you
handle it?
Brian Davila (10:32):
Uh, when the interest rates went up.
Yeah.
So, I mean, houses sit, uh, theydon't sell for as much.
Um, you get beaten up on price.
You get beaten up on repairs.
You get beaten up on closingcosts.
You just, you just, you just getsmacked around, um, for the last
(10:53):
two years.
Even right now, I don't, is themarket slow where you're at
right now or no?
Yeah.
So the market is hella slow.
Like it is slow, slow here inVegas and Southern California.
So right now, like you're,you're not getting a full price
offer on nothing.
(11:14):
Like for sure.
Like you're going to get a fullprice and they want like 20, 000
in closing costs.
And the realtors like asking for4%, it's just buck wild over
here.
So, um, so yeah, just gettingused to.
That type of market versus likea more stable market versus like
a seller's market is definitelylike a learning curve.
Mike (11:38):
What changes have you made based on that?
Brian Davila (11:42):
Well now like really, I'm like even more
skeptical on like flips.
So like, it has to be like, likewe just flipped the house right
now.
I think we made like 52 K thisweek.
Um, that was literally like, webought it.
I listed it.
And resold it way lower thanwhat the ARV was, but I knew if
(12:05):
I listed it at that price, Iwould get an offer literally
same day and then resell it.
So just doing stuff like that,like way faster turnarounds
versus like, let me like fix itcompletely up and get it staged
and try to get the, you know,record in this neighborhood.
Like that's just not even theplay right now.
Mike (12:26):
Yeah.
So are you're preferring to be,I'm assuming it was in decent
shape, this deal that you'retalking
Brian Davila (12:32):
Yeah.
Yeah.
It has to be in decent shape.
Like livable, like literally buyit and relist it.
Mike (12:36):
Yeah.
So are you noticing that in yourmarket that like, it's better
just to be the cheapest, even ifyou're not necessarily the
nicest
Brian Davila (12:47):
Yeah.
So everything that I try tolist, I'm trying to be the
cheapest for sure.
Mike (12:51):
cheapest.
Interesting.
Okay.
Gotcha.
What other changes have you hadto make, like within your
company as the kind of markethas shifted over the last two
years?
Gotcha.
Brian Davila (13:04):
Besides that, I mean, um, I think before like
just average people can get,could get results.
So now like everyone on thesales team has to be like a
great salesperson or it's justnot going to work.
Um, deals have to make sense.
My negotiation, I, I used to bevery like.
(13:26):
Whatever on negotiating like ifthey're like, oh, you know extra
5k i'd be like, oh sure whateverlike, you know, it might work
Now it's like, Hey, like if thenumbers don't work, I'm not
buying it and I don't care andsucks.
Oh, well.
And, and if people try to walkaway and then come back, it's
like, I'm for sure getting aneven bigger discount.
(13:49):
So it's just, I guess being morehard on negotiations, making
sure sales people are better,uh, making sure that I'm not
looking at the highest comp,whatever I list, I'm going to
list it below everything else.
So yeah, I was like, those arebig ones.
Mike (14:07):
What have you done to make sure that you're getting better
salespeople?
Brian Davila (14:11):
Fire people that don't perform
Mike (14:14):
That's a good one.
Brian Davila (14:15):
Yeah, so before it was like, all right, you know,
it's been a month, you know Buthe's nice and he's trying to
figure it out.
Now.
It's like the first day I'mlike, is this person gonna work
or not?
Like I'm not trying to wastetime I'm not trying to like
babysit anyone like I wantsomeone that's like hungry.
They have sales skills They'rewilling to grind.
(14:37):
I don't want people that arejust like You know, they think
just because they're good atsales, they're going to be
successful.
They have to like put in thework.
Mike (14:45):
Hmm.
Have you changed anything aboutyour hiring process to make sure
you attract those type ofpeople?
Hmm.
Brian Davila (14:53):
Um, just being very like upfront with people of
like, Hey, look, like if thingsdon't work in the first two
weeks, we're going to let yougo.
Um, like, Hey, look, like our,our good salespeople, they get a
contract a week.
Like, do you understand thatit's a contract a week?
Got it.
Okay, cool.
So like in a week, we're goingto, we're on Friday and we'd be
(15:14):
like, dude, you didn't get anycontracts.
And then if too many of thoseweeks happen back to back, then
we're not going to be able towork together.
Cause you're not going to makemoney and then we're not going
to make money.
So.
It's a waste of both of ourtime.
Mike (15:26):
Yeah.
How many salespeople do you haveon your team right now?
Brian Davila (15:30):
Three.
Mike (15:32):
Okay.
And they're all hitting the onecontract a week metric, most
weeks at least.
Brian Davila (15:38):
Uh, two of them are, one of them is new, so
he's, we'll see.
Mike (15:45):
What are you noticing?
I mean, are you noticing anycommonalities between the people
who come and they're successfuland the people who maybe two
weeks in, you're like, Hey,this, this isn't going to work.
Brian Davila (15:55):
No, but I, I think I have seen a commu, commu,
commuality, I can't even say theword, but like the, the
producers produce.
There's like, they come in andthey produce.
I've yet to have someone thatsucked and turn them into a rock
star, but I've had rock starscome in and they're just rock
stars.
Like literally they get acontract in the first day or
(16:15):
two.
And I'm like, Oh, like the lastguy we had, he was here for
like, dude, like six weeks.
And he got one deal, but he waslike, nice.
And he was smart.
And he was like, good at sales,like communicating with us.
But then I was like, you knowwhat, let's get someone else in.
We got someone else in, he gotlike six contracts in two weeks.
(16:38):
And I'm like, I knew it was justlike, It's just like the A
players, they make it, the Cplayers, they're just, they are
who they are.
I don't think you could make a Cplayer an A player, in my
opinion, the way we run it.
So
Mike (16:55):
yeah.
What is the way you run it interms of like training and
coaching?
Brian Davila (17:00):
Yeah.
So we hire, right.
And then typically during thejob interview process.
There has to be like clear salesexperience, like very clear that
I work at a car dealership.
They were, they had some sort ofreal sales experience where they
(17:21):
went through sales training.
They understand commissionlifestyle.
So that starts there first,right?
And then once we understand theyhave sales training, are they
good culture fit, right?
Like I don't want people who arejust.
You know, cursing up a storm orwhatever the case may be.
I, I also explain our culturelike, Hey, this is like a
(17:41):
Christian office.
If you're uncomfortable withpeople praying and all this
stuff at the office, like, it'sgoing to be awkward.
So I just want to let you knowthat up front.
Um, they don't have to beChristian at all.
Um, but I just let them know,Hey, like there's Bible studies
here.
There's this, there's that.
So that's there.
Um, and then I explained tothem, like, you know, you're
(18:04):
going to be on the phonescalling.
Um, you know, we're, we're hereusually nine to five Monday
through Friday.
Um, if they're okay with allthat, and I think they're a good
culture fit, then we, we askthem like, Hey, like, can you
come in for a couple of hoursand like watch us do the work
(18:25):
and do some sample calls to makesure that we're doing the That
this is what you want to do.
Cause we've done that beforetoo, where people come in and
then they're like, I actuallydon't like this.
And I'm like, all right, great.
Like, I'm glad we didn't wasteany more time.
So we do that.
Um, and then when they start,then just like clear
(18:46):
expectations, like, Hey, like wewant to, like, at least we try
to aim for 50, uh, conversationsa day.
And like the main KPI is onecontract a week.
Like, I don't care if you do.
10 conversations a day, butyou're getting a contract like
just do whatever it takes to getthose contracts.
If it takes you 200 aisles or 50dials, I don't care.
(19:07):
Like just focus on the contract,not the output.
Um, but then yeah, just, uh, wetrain, we give them scripts.
Uh, we listen to their callsbecause the whole sales team is
in the same room with like thesales leader.
So he's like the one really likemanaging them day to day.
Mike (19:27):
So you do have like a sales manager on top of the
three reps.
Brian Davila (19:31):
Yeah, one of the three is a sales leader.
Mike (19:35):
Gotcha.
And what, what does that looklike?
Brian Davila (19:38):
Uh, so he meets with them.
He looks at their KPIs.
He makes sure they're, he's inthe room with them.
So he hears their calls.
He'll like jump in and helpclose their calls.
Um, and like his responsibilitytoo is for them to produce.
So it's kind of like a teameffort.
Mike (19:57):
And he's also selling too on his own or,
Brian Davila (20:00):
Yeah.
Yeah.
I don't believe in like salesmanagers that don't sell.
I feel like that's like thestupidest thing.
It's like we've, we've had thatbefore.
I'm like of the educationcompany where like the sales
manager, they're just managing.
Like we don't believe in likesales managers that just manage.
That's like ridiculous.
We need like sales managers haveto close.
Mike (20:24):
Gotcha.
And then what, um, I lost myquestion there for a second.
This popped right outta my head.
Brian Davila (20:32):
There you go.
How big is your sales team?
Mike (20:35):
Um, I've only got one guy right now.
We're looking for three more.
Brian Davila (20:39):
Okay.
Mike (20:40):
Yeah, that's why I'm asking you all these questions
so I
Brian Davila (20:42):
Oh yeah.
There you go.
Mike (20:43):
amazing salespeople.
Brian Davila (20:45):
We, we also give them like the predictive index.
So that's like a personalitything.
So we make sure that they havelike a sales profile also
Mike (20:55):
What's your favorite profile for salespeople on
Predictive Index?
Brian Davila (20:59):
probably like a captain, like a Maverick captain
persuader.
Those are like, I don't know ifthere's any other sales ones,
but those are like the threemain ones.
Mike (21:09):
And then, um, I was like, how are you going about finding
those people who are A players,like, to even get them into your
hiring pipeline?
Brian Davila (21:17):
Um, we get a lot of people from like my social
media.
So like we got a lot of peoplefrom social media.
I get people like I hired someguy.
Today's his first day.
That's like the third guy.
Um, he, he literally just walkedin and was like, Hey, I want to
work for you.
Blah, blah, blah, blah.
Um, brought him on cause he hadlike some hustle.
(21:40):
So I would say social media islike number one for sure.
And then like referrals.
So like, like I'll post andsome, somebody will show their
husband or send it to somebodyelse.
And then they referred to me.
Mike (21:56):
Gotcha.
I know your guys, are theyrunning all phone appointments
or are they going
Brian Davila (22:00):
Yeah.
Everything's over the phone.
Yeah.
Everything's over the phone.
Yeah.
Mike (22:04):
Gotcha.
Brian Davila (22:05):
Yeah.
So we do California.
We live in Vegas, so
Mike (22:08):
Okay.
Gotcha.
And you're, you're flipping inCalifornia, even though you guys
are all in Vegas.
Interesting.
Okay.
Brian Davila (22:15):
Yeah.
Everything I do is inCalifornia.
Mike (22:17):
Uh, how do you, how does your construction operation
work?
Like, do you have a on theground person
Brian Davila (22:23):
Project manager.
Yeah.
Yeah.
Yeah.
I used to live in California, soI just moved to Vegas like a
year ago.
So.
Yeah, my business was alreadylike running and everything in
California before I left.
Mike (22:36):
Gotcha.
What made you decide to leave?
Brian Davila (22:39):
Uh, taxes and then when I became partners with
Ryan, uh, Panetta, that was likeone of our agreements that what
I would move to Vegas.
Mike (22:48):
Gotcha.
Were you doing the wholebusiness like, um, or not the
whole business, but the sales onthe phone when you were in
California or was that, did youmake that change because you
moved to Vegas?
Brian Davila (22:58):
Uh, no, I've always tried to do the, uh,
everything over the phone.
Because then I would, like,waste a lot of time, like,
driving to houses or, like,whatever.
So, like, if we, if I was toever go on an appointment, it
would have to be, like, a, like,super legit appointment where,
like, we have to go there and itmakes sense.
(23:20):
I'm not just like going on salesappointments all over Southern
California.
And it's too big of an area todo that effectively.
I feel like,
Mike (23:29):
Yeah.
Gotcha.
Um, I'm curious cause weactually just hired a project
manager about 10 days ago.
Um, like at what point in yourbusiness did you decide that it
was the right move to hire aproject manager?
Brian Davila (23:44):
I've always had a project manager since like I
started.
So I've never, I've never likeput together all these people.
I've always had a projectmanager.
Mike (23:53):
gotcha, and are they putting together all the subs on
a project or are you just havingthem manage a bunch of general?
Okay,
Brian Davila (24:01):
Yeah.
Mike (24:04):
Cool.
And like, how do you, how do youhave everything structured with
your project manager with youbeing obviously in a totally
different
Brian Davila (24:11):
Um, so I do some flips here in Vegas and then,
but 90 percent of everything isin Cali for both of them, um,
they get paid.
One of them gets paid like seven50, 750 per project.
(24:31):
So he gets the subs, he does allthe stuff, make sure it's all
gets done, and then he gets paidand then everyone else gets
paid.
Um, another one, he just billsme.
in the lump sum of whatever the,the estimate comes out to.
So if it's like 60K, he'll billme like 62K or something like
(24:51):
that.
Um, and then he just manages thewhole project.
Mike (24:57):
Gotcha.
It sounds like you've beenpretty kind of hands off in that
side of the business almostsince you started.
Yeah.
Brian Davila (25:02):
Exactly.
Yeah, I've never, I've neverlike went out and like found
people to do flooring and thenfound people to do painting or
all that crap.
I've always found whoever hasall those people and just worked
with them.
Mike (25:17):
Yeah, what KPIs do you have for your project manager?
Brian Davila (25:22):
Um, I mean, do they get the project done in 30
days?
That's it.
Like, yeah, it's more likespeed.
There's no other, like, give mean example of like a KPI, I
guess.
Yeah.
Mike (25:39):
I guess, you know, if, if there was like an estimated reno
budget, there could bepotentially a KPI, which is, did
they stay within it?
Or did they
Brian Davila (25:48):
Yeah, no, no, they'd never blow it.
I never if if they blow it,because there's like, there's
also like, some real someinvestors have it wrong where
they're like, Oh, man, this,this project manager blew the
thing.
But it's like, Okay, look at theoriginal bid.
Was there an AC on there?
(26:08):
No.
Did the AC go out?
Yeah.
So he didn't blow it.
Uh, it changed, but if they everbid me 50 K or whatever, it will
never go over a significantamount unless something changed.
But just for the work that waspromised, the price cannot
(26:29):
change.
I would not allow, I wouldn'teven pay him.
I'd be like, Oh, I'm sorry.
Like you gave me a bid for 50 K.
Why would I pay you 55 K orwhatever?
Unless something changed.
Mike (26:42):
so you're mainly just holding up to that time
expectation because you're doingthe light rehabs of 30, 30 days
or less.
Brian Davila (26:48):
Yeah, so main thing is like, I just want it
done in 30 days
Mike (26:52):
And are you, are you guys like pretty much always hitting
that or?
Brian Davila (26:56):
Yeah, there was, there was a time where I think
we had like too many projects.
Um, and then it got a littleshaky and then I wasn't like
paying close attention to it andit started to break.
But now I was like, okay, wecan't go over anymore.
It has to be 30 days or less oryou know, I'm not gonna work
(27:17):
with them.
Mike (27:18):
Yeah.
Is there anything you do to justlike, keep an eye on those
projects or to hold themaccountable?
If you've got a lot of stuffgoing on.
Brian Davila (27:27):
Um, not really now, like if, if I think they're
falling behind, I'll go thereand, um, make sure they know
like, Hey, like what's going onhere.
Like I'm at the house.
That doesn't look like we'regoing to finish by X, Y, Z.
But um, I used to go to theprojects every week and all that
crap, but like, it's such forme, it's a waste of time.
(27:49):
So I kind of like rely on themto do their job.
And if they can't do their job,I'll just find someone else.
Mike (27:56):
Yeah.
Are they, um, Like, you know,obviously, you're putting the
houses under contract virtually.
Are they the person who goes outthere initially to do the
walkthrough?
Or do you send someone else?
Brian Davila (28:07):
Uh, no, I literally like typically I could
tell what a house is going tocost.
Um, but just like pictures orlike a video or like an
estimate, like, all right, thishouse is 1100 square feet.
It's three one.
I do like 40 to 45 a squarefoot.
It's probably going to end uparound there.
(28:28):
And then like, does it need aroof?
Does it need AC?
And then I'll just add that.
Mike (28:33):
Gotcha.
Simple.
I like it.
Brian Davila (28:35):
Yeah.
It's very simple.
Mike (28:37):
Yeah.
Um, what's your current role inyour business?
Brian Davila (28:42):
Uh, I would guess like CEO or owner.
Mike (28:47):
So what's your day to day?
I mean, so what's your day today look like?
I mean, you've got the projectmanagement handled, right?
Seems like the sales team kindof runs its own
Brian Davila (28:55):
somewhat.
Yeah.
Yeah.
Um, so my job is like when theydo have a deal that they're
close on or they're about toget, I will like final
underwrite it to make sure it'sactually a deal.
Um, because I don't want, we trynot to get contracts that we
have to back out of.
Um, so like right before we'reabout to sign it, I'll like
(29:19):
review it.
Um, sometimes they'll sign it.
Um, and then I'll review it.
And then before putting in adeposit, I'll say, Hey, like
this is aiming a deal or not.
Um, so I'll do that.
Uh, I wire money obviously,cause, uh, I have the bank
account, so I have to wire moneyto the project managers, the
(29:40):
escrows, the hard money lenders,whatever.
Um, hire, so I'm in charge oflike hiring and recruiting.
Um, hire, recruiting, um, andjust thinking like, what do we
need to do?
Like, are we getting enoughleads?
Are we not getting enough leads?
Do we need to like, are wespending money on this marketing
(30:02):
and it's not working?
So more like thinking of likeideas and stuff like that.
I honestly don't work a lot.
Like my, I probably really worklike.
Really, really worth like acouple hours a day.
Mike (30:18):
Yeah.
What do you think is the mosteffective thing that you spend
your time on?
Brian Davila (30:24):
Most effective thing.
What do you mean by that?
What does that mean?
Mike (30:30):
The highest return for the least amount of time invested.
Brian Davila (30:35):
Uh, my hires return is like when I'm
underwriting those deals to makesure.
They're a deal and then like, ifit's too low, then I'll be like,
let me talk to the agent or theseller and then getting them
down or renegotiating or tellingthem to renegotiate, I would say
that would be like the most andthen like paying attention to
(30:57):
like what the sales team isdoing.
Because obviously, like, ifthey're producing, then
everything's working.
If they're not, then, yeah.
Mike (31:07):
Yeah, gotcha.
What, uh, what other recentroles have you hired for in your
business?
Brian Davila (31:15):
Um, recent roles.
So, I have, I can tell you allthe roles.
So, we have a listing agent.
Uh, we have a Uh, she's, she'shere.
Yeah.
So yeah, she's like in thebuilding.
She's not, uh, yeah, I don'tknow.
She's here.
(31:35):
Um, so we have a listing agent,we have a PC, we have a project
manager.
Well, we have two projectmanagers.
Um, we have the sales leader andthen we have two sales people.
And that's pretty much it.
Mike (31:51):
Okay, so who does the dispositions on the wholesale
stuff for you
Brian Davila (31:56):
Yeah, I guess I forgot that.
Yeah.
So I do the Dispo.
So that's like the role that Istill do
Mike (32:03):
Gotcha.
Anything, uh, unique you'redoing with a dispo in this, in
this market?
Brian Davila (32:11):
know.
So, um, I have investor lifts.
I post on investor lift, um,post on my Instagram.
Um, if it's like in, because wehave a coaching program.
So if it's in a market like, uh,San Bernardino, I don't know if
you know where San Bernardinois, but like, I know people
there.
So I already just call thebuyers that I know, and then
(32:32):
I'll try to sell it.
If I can't sell it, then I'll goto investor lift and then try to
dispel it there.
Mike (32:38):
Gotcha.
Okay.
And, um, have you, have younoticed any kind of challenges
in the disposition side, justcause obviously I'm assuming a
lot of people are selling toflipping, right?
So they, those
Brian Davila (32:51):
Yeah,
Mike (32:52):
filter down.
Brian Davila (32:54):
for sure.
I mean, yeah, like you can'tright now people aren't buying
stupid deals.
So that's why like I make surethat's why I like, I guess, like
we said, the most effectivething is that final
underwriting, because.
If it's too high, when I go toDispo, it's not going to sell
and it's a waste of time.
And then I'm wasting time wiringmoney.
(33:16):
And then we're wasting time withthe seller or the buyer.
So I guess that would be like,the main thing is like, is this
actually, do I think this isactually going to sell?
That's like the main thing thatI have to like, make sure
Mike (33:30):
Gotcha.
Okay.
And then, um, what other changeshave you made in your business
in the last, like two years orso?
Brian Davila (33:41):
two years a lot.
Um, yeah, two years, a lot.
So, but I, I would say likebiggest change is just having
the mindset of like, I'm not,the business cannot rely on my
efforts before it was like, itwas the Brian Davila show I'm
(34:02):
freaking hustling.
I'm on acquisitions.
I'm on dispositions.
I'm like doing everything wherenow it's like, okay, now I have
a listing agent that does allthe listing crap.
I have a TC.
Um, I usually have like apersonal admin.
Um, that's not just on the realestate side, but on the personal
(34:22):
side.
And then having that salesleader is huge.
That's like the biggest piecefor sure.
Um, and then like the, thecompany cannot rely on my
efforts on sales.
Like for sure.
That's like a non negotiable nowwhere before it was like, I got
to pack up and get my ass towork and do sales or else
(34:43):
there's no revenue coming in.
Mike (34:45):
Yeah.
When did you make that shift ofsaying, okay, I'm not going to
be the main producer here.
Brian Davila (34:51):
Um, I would say January of this year.
I was just like, I'm not doingthis anymore where I'm like the
main guy.
Mike (34:59):
Yeah.
And at that point you startedlike, hi, did you have some
salespeople before then?
Or are
Brian Davila (35:06):
Yeah, I had some sales people, but then I really
put it on like one of them to bethe sales leader.
And then he stepped up and kindof took over managing the team.
Cause that is, that's honestlylike probably like the hardest
part.
Um, so yeah,
Mike (35:23):
Is being the sales manager or sales leader?
Brian Davila (35:26):
I would say yeah, I would say for sure sales
leader of any company isprobably like the most, the
hardest, most important part.
Mike (35:33):
Yeah.
What do you think of the traitsthat he has that helps him be a
good sales leader?
Brian Davila (35:38):
Uh, he's very patient.
He's very kind.
Um, he's very smart.
Like he knows his stuff.
He's not just winging it.
Um, Uh, yeah, I would saypatient kind and he knows his
stuff.
He knows, he knows what's a dealand he knows what's not a deal.
Um, so yeah.
Mike (36:02):
And he, but he was working for you for a while before as a
wrap.
You were saying,
Brian Davila (36:06):
Yeah.
Like only like six months.
Mike (36:09):
Okay.
Brian Davila (36:10):
Yeah.
Mike (36:12):
Gotcha.
Any, uh, why I'm actuallycurious, what's your, what's
your vision for the next threeyears?
Brian Davila (36:20):
Vision for the next three years.
So, um, I don't have like athree year plan, but I know I'm
trying to make, I'm trying to,right now we're trying to get up
to where we make a hundred K amonth.
Every month.
Like that's the standard.
Okay.
So we're working towards that.
Um, that's literally it.
(36:42):
I don't have any other likegoals or visions or anything
else.
So get to a hundred K once weget to a hundred K, how do we
get to 200 K a month?
And then I feel like thatthat'll probably end up being
like the sweet spot, uh, of likerunning a flipping and
wholesaling company.
That's kind of automated whereit's not relying on me.
Um, if I can get it to more,that'd be great, but I, I
(37:03):
haven't seen that.
So I feel like 200 K a month.
It's like pretty good.
Mike (37:08):
Is that when you say 100 or 200 K, is that gross revenue
net
Brian Davila (37:12):
That's revenue.
Yeah.
Mike (37:13):
revenue?
Okay.
Brian Davila (37:15):
that's revenue.
Yeah.
That's not like, Oh, I sold thehouse and we get a check for a
hundred K.
It would be like the profit ofthat flip and then the profit of
the whole sales.
Mike (37:26):
But not the net profit of the entire business after all
expenses.
Brian Davila (37:30):
No.
Mike (37:31):
No, okay.
Brian Davila (37:32):
Yeah.
Yeah.
So we want to get to a hundredgross and then how do we get to
a hundred net?
So it's always like think grossnet.
Um, yeah.
Have you heard that before?
Yeah.
Mike (37:49):
Yeah.
That sounds like that's straightout of the Gary Keller book.
I'm pretty sure he says, what isit?
Gross a million
Brian Davila (37:59):
Yeah, yeah, yeah.
Think a million, No, it's thinka million, gross a million, then
net a million.
That's exactly it.
Mike (38:05):
In about seven years since I read it.
It's a great
Brian Davila (38:07):
Yeah.
Yeah.
I read it probably maybe fiveyears ago or so, something like
that.
Mike (38:14):
Yeah.
Very cool.
Cool, man.
Well, um, we're getting kind ofclose to the end here and
there's always a, two questionsI like to ask at the end of the
show.
Uh, first, first one is.
It's kind of a fun one, which iswhat is the craziest or most
uncomfortable situation haveever experienced in a real
(38:35):
estate deal?
Brian Davila (38:38):
crazy.
So there is, it's kind of a badstory, but I was on a seller
appointment one time and this,uh, this seller literally called
me the N word while we're on theappointment and I was just like,
all right, all right, I get it.
But you know, do you want 200 Kfor your house?
Like, so I actually, yeah, Iended up, I ended up getting
(39:03):
him.
Yeah, for sure.
Yeah.
Cause he was just mad becauseit's so funny.
It was a kind of a weird story.
Like it was like a small house,but it had a big lot.
And then when we walked into thelot, I was like, damn, there's a
lot of stuff.
There's like, there was likeliterally like a portable, like
(39:24):
a portable school.
And like, it was like just fullof trash.
It was just trash everywhere.
And I was like, I was like, whatare you going to do with this?
And then he was like what thehell you think i'm gonna do with
it.
This is like Expensive stuff.
I'm tired of you n words cominghere and disrespecting me and I
was like Okay.
(39:44):
Okay.
I'm, sorry.
Like I was like, you know, wecould pay 200k for this and
we'll You know, you keep it,it's all good.
Oh yeah.
I would say that's like thecraziest thing I could think of.
Mike (39:58):
that's up there for sure.
Good on you for still gettingthe deal, right?
I
Brian Davila (40:04):
Oh yeah, yeah, I'm not, I'm not a freaking weenie.
I'm not like, you know, I'm noteasily offended here.
Not like all these people thatget pissed off just because
someone else is voting forsomeone else and they're like,
Oh my God, I'm unfollowing thisguy because he's voting for
Trump.
I'm not like any of thoseweenies.
Yeah, do you still want this ornot?
(40:26):
I just drove here.
It's like 30 minutes away.
I'm not going to just leavebecause you're an idiot.
Mike (40:30):
Yeah, I like that.
Cool.
Well, second question I alwaysask kind of for the newer people
listening to the show, which isif you could go back in time,
give yourself one piece ofadvice when you were looking for
that first real estate deal,knowing what you know now, what
would you tell yourself?
Brian Davila (40:52):
Um, I would say like find a calculator because I
feel like when I used, when Ifirst started, I was like, I
would look at the houses, notlike a regular calculator, like
a Google calculator, but like aflip calculator, um, put in, For
right now, like 45 a squarefoot, just as a rough estimate.
(41:14):
And every house just run thenumbers on.
Cause I, at first I would lookat houses.
I'm like, I mean, this house is200.
I think the houses around herson for 300.
And I would just kind of guess alot.
Um, until I was like, Oh, likethere's, it's just simple math.
Like if, and the numbers, most90 percent of the numbers don't
change.
(41:34):
It's like the ARV, the rehab.
Everything else kind of staysthe same, you know, you put your
minimum net profit.
So like, if I would have justdone that in the beginning, I
would have saved a year of justlike, I don't understand like
what to offer or dah, dah, dah.
So yeah, like get a, get acalculator and then go out and
make offers like make a hundredoffers.
(41:56):
Even if the calculator saysthey, you need to be at two 25
and they're at three 35, likejust make the offer.
And then slowly you're like, Oh,okay.
Let me offer on ones that arelike close to where I need to be
at.
So I would, if I would have donethat, I would have been
successful way faster.
Mike (42:13):
Yeah, I think that's a great piece of advice.
And I like the fact that you sayit's simple, right?
Cause it really is.
I've seen people with thesecalculators with 50 inputs.
I'm like,
Brian Davila (42:24):
No.
Yeah.
It should be like six.
Yeah.
There should, there shouldn't bea ton of inputs and they're free
too.
So like, you don't need to gopay some guru for a calculator.
Like Google, you know what, youknow what, dude?
I've been thinking about this alot.
So I've been using chat GBT alot and like I legit got my
(42:45):
nutrition plan and my wholehealth plan from chat GBT.
And I was like, dude, like Ididn't even have to go to a
fricking gym trainer.
Like I told it everything that Iwanted.
I told it the way I told it, howmuch I want to lose, what my
body fat percentage is, what Iwanted to do.
And it gave me.
I'm pretty sure you can go intochat GBT and ask anything about
(43:07):
real estate and the more you useit, the better you get at using
it.
So frigging, if people can'tfigure it out now, it's because
they're idiots.
There's no excuse on like whyyou can't figure out how to do
real estate.
It's just a lack of effort.
It's not a lack of likeinformation.
Mike (43:24):
and it's not that much effort to type one question in
the chat GPT.
Brian Davila (43:30):
Well, the effort is going to come when you have
to go out and put in the offers.
That's like where the hustle andthe sales skills are going to
have to come into, but likefinding the information.
Um, I guess it like, I guesssorting the information in the
right sequence is important, butyou know, chat GBT nowadays
could like answer 99 percent ofthe stuff.
Mike (43:53):
For sure.
Cool, man.
Well, if people want to reachout to you after the show, if
they have questions or they wantto, you know, maybe check out
your show,
Brian Davila (44:01):
Yeah.
Mike (44:02):
finding you or contacting you?
Brian Davila (44:04):
Yeah.
If they go on YouTube, go towealthy investor, RE on YouTube,
or the Brian de Villa on realestate.
And, uh, yeah, hit me up.
I'll answer anything that youguys need.
Mike (44:16):
Cool.
Awesome, man.
Thanks for being on the show.
Brian Davila (44:19):
Thank you for having me on brother.
Appreciate it.
All right, everyone, welcome to the real estate game
changer show.
I'm your host, Mike McKay basedin Jacksonville, Florida, and
each and every week we do thisshow with people who are
changing the game of real estateall over the country.
And this is a live show guys.
So if you have any questions,please put them in the comments
for our guests to answer.
If anyone is in the Jacksonvillearea and has been thinking about
(00:22):
getting into real estate, uh, Weare hiring sales reps for our
team.
Sales experience is great, butif you don't have it and you're
hungry, we're still interestedin talking to you.
So if that sounds like you, sendme a DM on Instagram and let's
talk.
And this week on the show, wehave Brian Davila.
Brian, welcome to the show.
Brian Davila (00:41):
Thank you for having me on, brother.
I appreciate you, uh, letting mebe on your show.
Mike (00:46):
For sure, man.
So for the people who don't knowyou, could you tell us how you
got into the real estatebusiness and how that's led you
to where you are today?
Brian Davila (00:57):
Yeah.
So, um, I actually started inreal estate, uh, when I was
about 25 years old, so I feltlike I started a little bit
late.
I had a nine to five job.
Um, I met someone at a businessthat I owned.
I owned a barber shop back inthe day.
Right.
(01:17):
Um, crazy, right?
Barber shop, no hair.
Interesting.
Uh, I did.
Very short hair, but I had hairbut um, I owned a barbershop and
the barbershop was actuallyfailing So the business was
literally just going down and Iwas sitting there I was sitting
in there one day and some guywalked in told me about him
(01:40):
Being a realtor.
He said, you know realtors makelike 50 to 60 K a year So I was
like dude, that's more than I'mmaking that's really good job.
So that's what initially got meInterested in real estate.
So became a realtor, you know,did very well as a realtor is
making up to like 500, 000 ayear as a real estate agent.
(02:01):
Um, and then transition toflipping and wholesaling houses.
Cause I saw there was like moreupside to that.
Um, so then since then beenflipping wholesaling, uh, bought
rentals, own some Airbnb, boughtsome like small four plexes, um,
yeah.
And since then I've done aboutlike 400 real estate
transactions myself.
Off.
Um, and yeah, I host a podcastto teaching people about how to
(02:24):
flip and wholesale real estate.
Mike (02:27):
Cool.
And then when you made thattransition from being an agent
to kind of flipping andwholesaling, which one did you
start with?
Brian Davila (02:36):
Um, so I started off flipping, so I wanted to
flip houses.
Um, I thought, you know, theflippers make more money.
So I was just like, I just wentall in on flipping houses.
Mike (02:48):
Yeah.
And were you like, where wereyou getting your inventory at
the time?
Yeah.
Brian Davila (02:53):
Uh, so I used to get all of my inventory as a
realtor from cold calling.
So what I used to do is justlike, instead of pitching them
on, uh, letting me list theirhouse, I was just pitching them
on letting me buy their house.
Mike (03:06):
Gotcha, okay.
And um, you know, I'm sure therehave been some challenges along
the way from zero to 400 deals.
What were some big inflectionpoints and challenges you faced
early on, maybe in the first twoyears you were doing it?
Brian Davila (03:22):
Um, so I guess it took me like a year of like
thinking about flipping my firsthouse to actually doing it.
So that was like a biginflection point getting from
zero to one took me like a wholeyear.
And then after I startedflipping, there was like another
(03:43):
inflection point where I Wouldlike run out of money.
So I was only able to flip asmany houses as I could
personally afford.
Um, so once I started likeraising capital and partnering
with people, that's when mybusiness like really blew up.
Um, COVID was another inflectionpoint because, you know, prices
(04:05):
went up.
So we were just crushing it,flipping houses in Southern
California.
When everything was going likethis, when interest rates rose
and, you know, uh, Pricesdropped.
That was like a, like aninflection point down.
So yeah, there's been a few,there's been a few ups and downs
(04:26):
through the last few years.
Mike (04:29):
How long did it take you when you were using your own
money to flip to decide, okay,like it's time to bring in some
outside capital?
Brian Davila (04:36):
Um, I actually flipped with my own capital for
probably, um, maybe like thefirst two years.
Um, because Yeah, I didn't evenI'm very risk adverse.
I'm very like not a riskyperson.
So I didn't feel comfortableusing other people's money to
like flip houses or even topartner with someone like
(04:59):
putting my name on anything withsomeone else.
I was like very like riskadverse.
So I didn't want to do that.
So it took me like two yearsbefore I started like partnering
and raising some money.
Mike (05:12):
you to kind of overcome that obstacle?
In your mind.
Brian Davila (05:16):
So literally I just ran out of money.
There was like no other option.
So I was like, all right, likeif you're flipping houses and
you have, let's say a hundred Kand if the hundred Ks in the,
you know, in a house, then Icouldn't just like not do
anything.
So I kind of like got to thepoint where I was like, Oh, like
I have to like, I got to dosomething.
(05:38):
And I didn't really want towholesale.
I was never like a bigwholesaler until recently.
Um, so I was just like, okay,I'm going to have to like, Buy
some deals, uh, with otherpeople's money.
Mike (05:50):
Yeah.
And did you go out and get hardmoney or did you get money from
people that you knew?
Brian Davila (05:57):
Oh, no, I, I've always used hard money, so I've
always used hard money.
And then I started raising moneyfor, uh, the down payment and
rehab with other people's money.
What do you do?
Do you flip houses or what'syour deal?
Mike (06:10):
we flip and we wholesale too.
Or sometimes we just buy stuffand put it on the MLS.
That's one of my favorite.
Brian Davila (06:15):
oh, okay.
Got it.
And only in Jacksonville.
Mike (06:18):
Greater Jacksonville.
Um, and our big thing isactually that we, we flip a lot
of mobile homes on land.
That's our big target.
Brian Davila (06:26):
Oh, okay.
Sweet.
That's pretty cool.
Mike (06:30):
um, so you said something before you said, I was never a
big wholesaler until recently.
Brian Davila (06:36):
Yeah.
Mike (06:37):
What made you make that change?
Brian Davila (06:40):
Well, dude, I don't know about you, but over
here, uh, on the West Coast, theBest Coast, it is slow as crap.
You know, the market isextremely stagnant, like
extreme, like it's actually badright now.
So.
Earlier this year, I was like,dude, like some of our wholesale
(07:01):
deals are making just as much asour flips when I started looking
at the numbers.
And then
Mike (07:07):
I think you, tap something on your mic because it's, it's
echoing.
Brian Davila (07:12):
now, yeah, yours is echoing too.
Now.
I don't know why.
Mike (07:15):
now, you're good.
All right.
You're good.
Brian Davila (07:17):
But, um, what I was saying was like earlier this
year, I could feel the marketwas a little bit slower and I
was looking at the books and ourwholesales were making just as
much as our flips.
So I was like, you know what,like, even though I've never
liked wholesaling, I think rightnow might be a good time to just
(07:39):
focus more on wholesaling thanflipping.
So this is like the first yearthat we've.
Wholesale done.
Uh, we focus more onwholesaling.
Mike (07:47):
Gotcha.
What changes did you have tomake to obviously switch to like
a more wholesaling model versusflipping?
Brian Davila (07:55):
Um, well first is like mindset because I'm
literally used to always buyingthe house.
So sometimes like when you'rewholesaling, you're like, I can
make 20 K wholesaling, but I'mgiving up 40 K.
So like getting over that forsure.
Um, and then that's pretty muchit.
I mean, I already knew how towholesale.
Like I, I have wholesaled thelast few years, but not like
(08:17):
making it like the primary thingversus flipping.
It's always been like flipfirst, then wholesale now kind
of like almost flipping it whereit's like more wholesaling and
equal to flipping type of thing.
Mike (08:32):
Yeah.
How are you making a decisionwhen you get a property, if
you're going to flip it orwholesale it?
Brian Davila (08:38):
So for me, uh, I don't want to do any heavy
rehab.
So if it's a heavy rehab, I'mfor sure going to wholesale it.
Um, if it's like on a busystreet, if it's like, if it's
like, she's like a weirdproperty that I'm not sure if
it's going to sell as much asthe other comps.
Um, also depends on the area.
So if we're flipping an LA, Iwant to make at least 60, 000
(08:59):
for sure.
If it's like San BernardinoCounty, at least 40, 000.
Um, I like.
quick flips, not trying to dealwith tenants, um, not trying to
build a to use or add squarefootage.
So it just has to be like cookiecutter, easy, quick flip, or I'm
going to wholesale it.
Mike (09:18):
Gotcha.
What do you consider a heavyrehab?
Brian Davila (09:24):
Um, anything where I'm spending more than like 50
grand is like a heavy rehab.
Mike (09:28):
Okay.
Yeah.
So nothing, that's not even thatcrazy.
Yeah.
Brian Davila (09:32):
Yeah, yeah, so yeah, nothing, nothing where
we're like doing the roof anddoing the AC and doing the new
electrical like none of that hasto be like cosmetic or like by
enlisted type of thing.
Mike (09:47):
Okay.
And is your primary acquisitionschannel direct to seller still,
or?
Brian Davila (09:52):
Ah, so direct to seller, we're doing some direct
to agent, and then we're doingsome Facebook ads.
So it's like a blend.
And then I get people that hitme up on social media.
So it's like relationships.
So it's like a blend of allthree.
Mike (10:09):
Gotcha.
And then, You know, over theyears, I mean, I know you said
there were some differentinflection points, obviously
before this was kind of interestrates rising.
And that obviously having aneffect, I'm not sure.
I'm sure it affected you guys,but I
Brian Davila (10:24):
For sure.
Mike (10:25):
us.
Um, what happened in your marketduring that and how did you
handle it?
Brian Davila (10:32):
Uh, when the interest rates went up.
Yeah.
So, I mean, houses sit, uh, theydon't sell for as much.
Um, you get beaten up on price.
You get beaten up on repairs.
You get beaten up on closingcosts.
You just, you just, you just getsmacked around, um, for the last
(10:53):
two years.
Even right now, I don't, is themarket slow where you're at
right now or no?
Yeah.
So the market is hella slow.
Like it is slow, slow here inVegas and Southern California.
So right now, like you're,you're not getting a full price
offer on nothing.
(11:14):
Like for sure.
Like you're going to get a fullprice and they want like 20, 000
in closing costs.
And the realtors like asking for4%, it's just buck wild over
here.
So, um, so yeah, just gettingused to.
That type of market versus likea more stable market versus like
a seller's market is definitelylike a learning curve.
Mike (11:38):
What changes have you made based on that?
Brian Davila (11:42):
Well now like really, I'm like even more
skeptical on like flips.
So like, it has to be like, likewe just flipped the house right
now.
I think we made like 52 K thisweek.
Um, that was literally like, webought it.
I listed it.
And resold it way lower thanwhat the ARV was, but I knew if
(12:05):
I listed it at that price, Iwould get an offer literally
same day and then resell it.
So just doing stuff like that,like way faster turnarounds
versus like, let me like fix itcompletely up and get it staged
and try to get the, you know,record in this neighborhood.
Like that's just not even theplay right now.
Mike (12:26):
Yeah.
So are you're preferring to be,I'm assuming it was in decent
shape, this deal that you'retalking
Brian Davila (12:32):
Yeah.
Yeah.
It has to be in decent shape.
Like livable, like literally buyit and relist it.
Mike (12:36):
Yeah.
So are you noticing that in yourmarket that like, it's better
just to be the cheapest, even ifyou're not necessarily the
nicest
Brian Davila (12:47):
Yeah.
So everything that I try tolist, I'm trying to be the
cheapest for sure.
Mike (12:51):
cheapest.
Interesting.
Okay.
Gotcha.
What other changes have you hadto make, like within your
company as the kind of markethas shifted over the last two
years?
Gotcha.
Brian Davila (13:04):
Besides that, I mean, um, I think before like
just average people can get,could get results.
So now like everyone on thesales team has to be like a
great salesperson or it's justnot going to work.
Um, deals have to make sense.
My negotiation, I, I used to bevery like.
(13:26):
Whatever on negotiating like ifthey're like, oh, you know extra
5k i'd be like, oh sure whateverlike, you know, it might work
Now it's like, Hey, like if thenumbers don't work, I'm not
buying it and I don't care andsucks.
Oh, well.
And, and if people try to walkaway and then come back, it's
like, I'm for sure getting aneven bigger discount.
(13:49):
So it's just, I guess being morehard on negotiations, making
sure sales people are better,uh, making sure that I'm not
looking at the highest comp,whatever I list, I'm going to
list it below everything else.
So yeah, I was like, those arebig ones.
Mike (14:07):
What have you done to make sure that you're getting better
salespeople?
Brian Davila (14:11):
Fire people that don't perform
Mike (14:14):
That's a good one.
Brian Davila (14:15):
Yeah, so before it was like, all right, you know,
it's been a month, you know Buthe's nice and he's trying to
figure it out.
Now.
It's like the first day I'mlike, is this person gonna work
or not?
Like I'm not trying to wastetime I'm not trying to like
babysit anyone like I wantsomeone that's like hungry.
They have sales skills They'rewilling to grind.
(14:37):
I don't want people that arejust like You know, they think
just because they're good atsales, they're going to be
successful.
They have to like put in thework.
Mike (14:45):
Hmm.
Have you changed anything aboutyour hiring process to make sure
you attract those type ofpeople?
Hmm.
Brian Davila (14:53):
Um, just being very like upfront with people of
like, Hey, look, like if thingsdon't work in the first two
weeks, we're going to let yougo.
Um, like, Hey, look, like our,our good salespeople, they get a
contract a week.
Like, do you understand thatit's a contract a week?
Got it.
Okay, cool.
So like in a week, we're goingto, we're on Friday and we'd be
(15:14):
like, dude, you didn't get anycontracts.
And then if too many of thoseweeks happen back to back, then
we're not going to be able towork together.
Cause you're not going to makemoney and then we're not going
to make money.
So.
It's a waste of both of ourtime.
Mike (15:26):
Yeah.
How many salespeople do you haveon your team right now?
Brian Davila (15:30):
Three.
Mike (15:32):
Okay.
And they're all hitting the onecontract a week metric, most
weeks at least.
Brian Davila (15:38):
Uh, two of them are, one of them is new, so
he's, we'll see.
Mike (15:45):
What are you noticing?
I mean, are you noticing anycommonalities between the people
who come and they're successfuland the people who maybe two
weeks in, you're like, Hey,this, this isn't going to work.
Brian Davila (15:55):
No, but I, I think I have seen a commu, commu,
commuality, I can't even say theword, but like the, the
producers produce.
There's like, they come in andthey produce.
I've yet to have someone thatsucked and turn them into a rock
star, but I've had rock starscome in and they're just rock
stars.
Like literally they get acontract in the first day or
(16:15):
two.
And I'm like, Oh, like the lastguy we had, he was here for
like, dude, like six weeks.
And he got one deal, but he waslike, nice.
And he was smart.
And he was like, good at sales,like communicating with us.
But then I was like, you knowwhat, let's get someone else in.
We got someone else in, he gotlike six contracts in two weeks.
(16:38):
And I'm like, I knew it was justlike, It's just like the A
players, they make it, the Cplayers, they're just, they are
who they are.
I don't think you could make a Cplayer an A player, in my
opinion, the way we run it.
So
Mike (16:55):
yeah.
What is the way you run it interms of like training and
coaching?
Brian Davila (17:00):
Yeah.
So we hire, right.
And then typically during thejob interview process.
There has to be like clear salesexperience, like very clear that
I work at a car dealership.
They were, they had some sort ofreal sales experience where they
(17:21):
went through sales training.
They understand commissionlifestyle.
So that starts there first,right?
And then once we understand theyhave sales training, are they
good culture fit, right?
Like I don't want people who arejust.
You know, cursing up a storm orwhatever the case may be.
I, I also explain our culturelike, Hey, this is like a
(17:41):
Christian office.
If you're uncomfortable withpeople praying and all this
stuff at the office, like, it'sgoing to be awkward.
So I just want to let you knowthat up front.
Um, they don't have to beChristian at all.
Um, but I just let them know,Hey, like there's Bible studies
here.
There's this, there's that.
So that's there.
Um, and then I explained tothem, like, you know, you're
(18:04):
going to be on the phonescalling.
Um, you know, we're, we're hereusually nine to five Monday
through Friday.
Um, if they're okay with allthat, and I think they're a good
culture fit, then we, we askthem like, Hey, like, can you
come in for a couple of hoursand like watch us do the work
(18:25):
and do some sample calls to makesure that we're doing the That
this is what you want to do.
Cause we've done that beforetoo, where people come in and
then they're like, I actuallydon't like this.
And I'm like, all right, great.
Like, I'm glad we didn't wasteany more time.
So we do that.
Um, and then when they start,then just like clear
(18:46):
expectations, like, Hey, like wewant to, like, at least we try
to aim for 50, uh, conversationsa day.
And like the main KPI is onecontract a week.
Like, I don't care if you do.
10 conversations a day, butyou're getting a contract like
just do whatever it takes to getthose contracts.
If it takes you 200 aisles or 50dials, I don't care.
(19:07):
Like just focus on the contract,not the output.
Um, but then yeah, just, uh, wetrain, we give them scripts.
Uh, we listen to their callsbecause the whole sales team is
in the same room with like thesales leader.
So he's like the one really likemanaging them day to day.
Mike (19:27):
So you do have like a sales manager on top of the
three reps.
Brian Davila (19:31):
Yeah, one of the three is a sales leader.
Mike (19:35):
Gotcha.
And what, what does that looklike?
Brian Davila (19:38):
Uh, so he meets with them.
He looks at their KPIs.
He makes sure they're, he's inthe room with them.
So he hears their calls.
He'll like jump in and helpclose their calls.
Um, and like his responsibilitytoo is for them to produce.
So it's kind of like a teameffort.
Mike (19:57):
And he's also selling too on his own or,
Brian Davila (20:00):
Yeah.
Yeah.
I don't believe in like salesmanagers that don't sell.
I feel like that's like thestupidest thing.
It's like we've, we've had thatbefore.
I'm like of the educationcompany where like the sales
manager, they're just managing.
Like we don't believe in likesales managers that just manage.
That's like ridiculous.
We need like sales managers haveto close.
Mike (20:24):
Gotcha.
And then what, um, I lost myquestion there for a second.
This popped right outta my head.
Brian Davila (20:32):
There you go.
How big is your sales team?
Mike (20:35):
Um, I've only got one guy right now.
We're looking for three more.
Brian Davila (20:39):
Okay.
Mike (20:40):
Yeah, that's why I'm asking you all these questions
so I
Brian Davila (20:42):
Oh yeah.
There you go.
Mike (20:43):
amazing salespeople.
Brian Davila (20:45):
We, we also give them like the predictive index.
So that's like a personalitything.
So we make sure that they havelike a sales profile also
Mike (20:55):
What's your favorite profile for salespeople on
Predictive Index?
Brian Davila (20:59):
probably like a captain, like a Maverick captain
persuader.
Those are like, I don't know ifthere's any other sales ones,
but those are like the threemain ones.
Mike (21:09):
And then, um, I was like, how are you going about finding
those people who are A players,like, to even get them into your
hiring pipeline?
Brian Davila (21:17):
Um, we get a lot of people from like my social
media.
So like we got a lot of peoplefrom social media.
I get people like I hired someguy.
Today's his first day.
That's like the third guy.
Um, he, he literally just walkedin and was like, Hey, I want to
work for you.
Blah, blah, blah, blah.
Um, brought him on cause he hadlike some hustle.
(21:40):
So I would say social media islike number one for sure.
And then like referrals.
So like, like I'll post andsome, somebody will show their
husband or send it to somebodyelse.
And then they referred to me.
Mike (21:56):
Gotcha.
I know your guys, are theyrunning all phone appointments
or are they going
Brian Davila (22:00):
Yeah.
Everything's over the phone.
Yeah.
Everything's over the phone.
Yeah.
Mike (22:04):
Gotcha.
Brian Davila (22:05):
Yeah.
So we do California.
We live in Vegas, so
Mike (22:08):
Okay.
Gotcha.
And you're, you're flipping inCalifornia, even though you guys
are all in Vegas.
Interesting.
Okay.
Brian Davila (22:15):
Yeah.
Everything I do is inCalifornia.
Mike (22:17):
Uh, how do you, how does your construction operation
work?
Like, do you have a on theground person
Brian Davila (22:23):
Project manager.
Yeah.
Yeah.
Yeah.
I used to live in California, soI just moved to Vegas like a
year ago.
So.
Yeah, my business was alreadylike running and everything in
California before I left.
Mike (22:36):
Gotcha.
What made you decide to leave?
Brian Davila (22:39):
Uh, taxes and then when I became partners with
Ryan, uh, Panetta, that was likeone of our agreements that what
I would move to Vegas.
Mike (22:48):
Gotcha.
Were you doing the wholebusiness like, um, or not the
whole business, but the sales onthe phone when you were in
California or was that, did youmake that change because you
moved to Vegas?
Brian Davila (22:58):
Uh, no, I've always tried to do the, uh,
everything over the phone.
Because then I would, like,waste a lot of time, like,
driving to houses or, like,whatever.
So, like, if we, if I was toever go on an appointment, it
would have to be, like, a, like,super legit appointment where,
like, we have to go there and itmakes sense.
(23:20):
I'm not just like going on salesappointments all over Southern
California.
And it's too big of an area todo that effectively.
I feel like,
Mike (23:29):
Yeah.
Gotcha.
Um, I'm curious cause weactually just hired a project
manager about 10 days ago.
Um, like at what point in yourbusiness did you decide that it
was the right move to hire aproject manager?
Brian Davila (23:44):
I've always had a project manager since like I
started.
So I've never, I've never likeput together all these people.
I've always had a projectmanager.
Mike (23:53):
gotcha, and are they putting together all the subs on
a project or are you just havingthem manage a bunch of general?
Okay,
Brian Davila (24:01):
Yeah.
Mike (24:04):
Cool.
And like, how do you, how do youhave everything structured with
your project manager with youbeing obviously in a totally
different
Brian Davila (24:11):
Um, so I do some flips here in Vegas and then,
but 90 percent of everything isin Cali for both of them, um,
they get paid.
One of them gets paid like seven50, 750 per project.
(24:31):
So he gets the subs, he does allthe stuff, make sure it's all
gets done, and then he gets paidand then everyone else gets
paid.
Um, another one, he just billsme.
in the lump sum of whatever the,the estimate comes out to.
So if it's like 60K, he'll billme like 62K or something like
(24:51):
that.
Um, and then he just manages thewhole project.
Mike (24:57):
Gotcha.
It sounds like you've beenpretty kind of hands off in that
side of the business almostsince you started.
Yeah.
Brian Davila (25:02):
Exactly.
Yeah, I've never, I've neverlike went out and like found
people to do flooring and thenfound people to do painting or
all that crap.
I've always found whoever hasall those people and just worked
with them.
Mike (25:17):
Yeah, what KPIs do you have for your project manager?
Brian Davila (25:22):
Um, I mean, do they get the project done in 30
days?
That's it.
Like, yeah, it's more likespeed.
There's no other, like, give mean example of like a KPI, I
guess.
Yeah.
Mike (25:39):
I guess, you know, if, if there was like an estimated reno
budget, there could bepotentially a KPI, which is, did
they stay within it?
Or did they
Brian Davila (25:48):
Yeah, no, no, they'd never blow it.
I never if if they blow it,because there's like, there's
also like, some real someinvestors have it wrong where
they're like, Oh, man, this,this project manager blew the
thing.
But it's like, Okay, look at theoriginal bid.
Was there an AC on there?
(26:08):
No.
Did the AC go out?
Yeah.
So he didn't blow it.
Uh, it changed, but if they everbid me 50 K or whatever, it will
never go over a significantamount unless something changed.
But just for the work that waspromised, the price cannot
(26:29):
change.
I would not allow, I wouldn'teven pay him.
I'd be like, Oh, I'm sorry.
Like you gave me a bid for 50 K.
Why would I pay you 55 K orwhatever?
Unless something changed.
Mike (26:42):
so you're mainly just holding up to that time
expectation because you're doingthe light rehabs of 30, 30 days
or less.
Brian Davila (26:48):
Yeah, so main thing is like, I just want it
done in 30 days
Mike (26:52):
And are you, are you guys like pretty much always hitting
that or?
Brian Davila (26:56):
Yeah, there was, there was a time where I think
we had like too many projects.
Um, and then it got a littleshaky and then I wasn't like
paying close attention to it andit started to break.
But now I was like, okay, wecan't go over anymore.
It has to be 30 days or less oryou know, I'm not gonna work
(27:17):
with them.
Mike (27:18):
Yeah.
Is there anything you do to justlike, keep an eye on those
projects or to hold themaccountable?
If you've got a lot of stuffgoing on.
Brian Davila (27:27):
Um, not really now, like if, if I think they're
falling behind, I'll go thereand, um, make sure they know
like, Hey, like what's going onhere.
Like I'm at the house.
That doesn't look like we'regoing to finish by X, Y, Z.
But um, I used to go to theprojects every week and all that
crap, but like, it's such forme, it's a waste of time.
(27:49):
So I kind of like rely on themto do their job.
And if they can't do their job,I'll just find someone else.
Mike (27:56):
Yeah.
Are they, um, Like, you know,obviously, you're putting the
houses under contract virtually.
Are they the person who goes outthere initially to do the
walkthrough?
Or do you send someone else?
Brian Davila (28:07):
Uh, no, I literally like typically I could
tell what a house is going tocost.
Um, but just like pictures orlike a video or like an
estimate, like, all right, thishouse is 1100 square feet.
It's three one.
I do like 40 to 45 a squarefoot.
It's probably going to end uparound there.
(28:28):
And then like, does it need aroof?
Does it need AC?
And then I'll just add that.
Mike (28:33):
Gotcha.
Simple.
I like it.
Brian Davila (28:35):
Yeah.
It's very simple.
Mike (28:37):
Yeah.
Um, what's your current role inyour business?
Brian Davila (28:42):
Uh, I would guess like CEO or owner.
Mike (28:47):
So what's your day to day?
I mean, so what's your day today look like?
I mean, you've got the projectmanagement handled, right?
Seems like the sales team kindof runs its own
Brian Davila (28:55):
somewhat.
Yeah.
Yeah.
Um, so my job is like when theydo have a deal that they're
close on or they're about toget, I will like final
underwrite it to make sure it'sactually a deal.
Um, because I don't want, we trynot to get contracts that we
have to back out of.
Um, so like right before we'reabout to sign it, I'll like
(29:19):
review it.
Um, sometimes they'll sign it.
Um, and then I'll review it.
And then before putting in adeposit, I'll say, Hey, like
this is aiming a deal or not.
Um, so I'll do that.
Uh, I wire money obviously,cause, uh, I have the bank
account, so I have to wire moneyto the project managers, the
(29:40):
escrows, the hard money lenders,whatever.
Um, hire, so I'm in charge oflike hiring and recruiting.
Um, hire, recruiting, um, andjust thinking like, what do we
need to do?
Like, are we getting enoughleads?
Are we not getting enough leads?
Do we need to like, are wespending money on this marketing
(30:02):
and it's not working?
So more like thinking of likeideas and stuff like that.
I honestly don't work a lot.
Like my, I probably really worklike.
Really, really worth like acouple hours a day.
Mike (30:18):
Yeah.
What do you think is the mosteffective thing that you spend
your time on?
Brian Davila (30:24):
Most effective thing.
What do you mean by that?
What does that mean?
Mike (30:30):
The highest return for the least amount of time invested.
Brian Davila (30:35):
Uh, my hires return is like when I'm
underwriting those deals to makesure.
They're a deal and then like, ifit's too low, then I'll be like,
let me talk to the agent or theseller and then getting them
down or renegotiating or tellingthem to renegotiate, I would say
that would be like the most andthen like paying attention to
(30:57):
like what the sales team isdoing.
Because obviously, like, ifthey're producing, then
everything's working.
If they're not, then, yeah.
Mike (31:07):
Yeah, gotcha.
What, uh, what other recentroles have you hired for in your
business?
Brian Davila (31:15):
Um, recent roles.
So, I have, I can tell you allthe roles.
So, we have a listing agent.
Uh, we have a Uh, she's, she'shere.
Yeah.
So yeah, she's like in thebuilding.
She's not, uh, yeah, I don'tknow.
She's here.
(31:35):
Um, so we have a listing agent,we have a PC, we have a project
manager.
Well, we have two projectmanagers.
Um, we have the sales leader andthen we have two sales people.
And that's pretty much it.
Mike (31:51):
Okay, so who does the dispositions on the wholesale
stuff for you
Brian Davila (31:56):
Yeah, I guess I forgot that.
Yeah.
So I do the Dispo.
So that's like the role that Istill do
Mike (32:03):
Gotcha.
Anything, uh, unique you'redoing with a dispo in this, in
this market?
Brian Davila (32:11):
know.
So, um, I have investor lifts.
I post on investor lift, um,post on my Instagram.
Um, if it's like in, because wehave a coaching program.
So if it's in a market like, uh,San Bernardino, I don't know if
you know where San Bernardinois, but like, I know people
there.
So I already just call thebuyers that I know, and then
(32:32):
I'll try to sell it.
If I can't sell it, then I'll goto investor lift and then try to
dispel it there.
Mike (32:38):
Gotcha.
Okay.
And, um, have you, have younoticed any kind of challenges
in the disposition side, justcause obviously I'm assuming a
lot of people are selling toflipping, right?
So they, those
Brian Davila (32:51):
Yeah,
Mike (32:52):
filter down.
Brian Davila (32:54):
for sure.
I mean, yeah, like you can'tright now people aren't buying
stupid deals.
So that's why like I make surethat's why I like, I guess, like
we said, the most effectivething is that final
underwriting, because.
If it's too high, when I go toDispo, it's not going to sell
and it's a waste of time.
And then I'm wasting time wiringmoney.
(33:16):
And then we're wasting time withthe seller or the buyer.
So I guess that would be like,the main thing is like, is this
actually, do I think this isactually going to sell?
That's like the main thing thatI have to like, make sure
Mike (33:30):
Gotcha.
Okay.
And then, um, what other changeshave you made in your business
in the last, like two years orso?
Brian Davila (33:41):
two years a lot.
Um, yeah, two years, a lot.
So, but I, I would say likebiggest change is just having
the mindset of like, I'm not,the business cannot rely on my
efforts before it was like, itwas the Brian Davila show I'm
(34:02):
freaking hustling.
I'm on acquisitions.
I'm on dispositions.
I'm like doing everything wherenow it's like, okay, now I have
a listing agent that does allthe listing crap.
I have a TC.
Um, I usually have like apersonal admin.
Um, that's not just on the realestate side, but on the personal
(34:22):
side.
And then having that salesleader is huge.
That's like the biggest piecefor sure.
Um, and then like the, thecompany cannot rely on my
efforts on sales.
Like for sure.
That's like a non negotiable nowwhere before it was like, I got
to pack up and get my ass towork and do sales or else
(34:43):
there's no revenue coming in.
Mike (34:45):
Yeah.
When did you make that shift ofsaying, okay, I'm not going to
be the main producer here.
Brian Davila (34:51):
Um, I would say January of this year.
I was just like, I'm not doingthis anymore where I'm like the
main guy.
Mike (34:59):
Yeah.
And at that point you startedlike, hi, did you have some
salespeople before then?
Or are
Brian Davila (35:06):
Yeah, I had some sales people, but then I really
put it on like one of them to bethe sales leader.
And then he stepped up and kindof took over managing the team.
Cause that is, that's honestlylike probably like the hardest
part.
Um, so yeah,
Mike (35:23):
Is being the sales manager or sales leader?
Brian Davila (35:26):
I would say yeah, I would say for sure sales
leader of any company isprobably like the most, the
hardest, most important part.
Mike (35:33):
Yeah.
What do you think of the traitsthat he has that helps him be a
good sales leader?
Brian Davila (35:38):
Uh, he's very patient.
He's very kind.
Um, he's very smart.
Like he knows his stuff.
He's not just winging it.
Um, Uh, yeah, I would saypatient kind and he knows his
stuff.
He knows, he knows what's a dealand he knows what's not a deal.
Um, so yeah.
Mike (36:02):
And he, but he was working for you for a while before as a
wrap.
You were saying,
Brian Davila (36:06):
Yeah.
Like only like six months.
Mike (36:09):
Okay.
Brian Davila (36:10):
Yeah.
Mike (36:12):
Gotcha.
Any, uh, why I'm actuallycurious, what's your, what's
your vision for the next threeyears?
Brian Davila (36:20):
Vision for the next three years.
So, um, I don't have like athree year plan, but I know I'm
trying to make, I'm trying to,right now we're trying to get up
to where we make a hundred K amonth.
Every month.
Like that's the standard.
Okay.
So we're working towards that.
Um, that's literally it.
(36:42):
I don't have any other likegoals or visions or anything
else.
So get to a hundred K once weget to a hundred K, how do we
get to 200 K a month?
And then I feel like thatthat'll probably end up being
like the sweet spot, uh, of likerunning a flipping and
wholesaling company.
That's kind of automated whereit's not relying on me.
Um, if I can get it to more,that'd be great, but I, I
(37:03):
haven't seen that.
So I feel like 200 K a month.
It's like pretty good.
Mike (37:08):
Is that when you say 100 or 200 K, is that gross revenue
net
Brian Davila (37:12):
That's revenue.
Yeah.
Mike (37:13):
revenue?
Okay.
Brian Davila (37:15):
that's revenue.
Yeah.
That's not like, Oh, I sold thehouse and we get a check for a
hundred K.
It would be like the profit ofthat flip and then the profit of
the whole sales.
Mike (37:26):
But not the net profit of the entire business after all
expenses.
Brian Davila (37:30):
No.
Mike (37:31):
No, okay.
Brian Davila (37:32):
Yeah.
Yeah.
So we want to get to a hundredgross and then how do we get to
a hundred net?
So it's always like think grossnet.
Um, yeah.
Have you heard that before?
Yeah.
Mike (37:49):
Yeah.
That sounds like that's straightout of the Gary Keller book.
I'm pretty sure he says, what isit?
Gross a million
Brian Davila (37:59):
Yeah, yeah, yeah.
Think a million, No, it's thinka million, gross a million, then
net a million.
That's exactly it.
Mike (38:05):
In about seven years since I read it.
It's a great
Brian Davila (38:07):
Yeah.
Yeah.
I read it probably maybe fiveyears ago or so, something like
that.
Mike (38:14):
Yeah.
Very cool.
Cool, man.
Well, um, we're getting kind ofclose to the end here and
there's always a, two questionsI like to ask at the end of the
show.
Uh, first, first one is.
It's kind of a fun one, which iswhat is the craziest or most
uncomfortable situation haveever experienced in a real
(38:35):
estate deal?
Brian Davila (38:38):
crazy.
So there is, it's kind of a badstory, but I was on a seller
appointment one time and this,uh, this seller literally called
me the N word while we're on theappointment and I was just like,
all right, all right, I get it.
But you know, do you want 200 Kfor your house?
Like, so I actually, yeah, Iended up, I ended up getting
(39:03):
him.
Yeah, for sure.
Yeah.
Cause he was just mad becauseit's so funny.
It was a kind of a weird story.
Like it was like a small house,but it had a big lot.
And then when we walked into thelot, I was like, damn, there's a
lot of stuff.
There's like, there was likeliterally like a portable, like
(39:24):
a portable school.
And like, it was like just fullof trash.
It was just trash everywhere.
And I was like, I was like, whatare you going to do with this?
And then he was like what thehell you think i'm gonna do with
it.
This is like Expensive stuff.
I'm tired of you n words cominghere and disrespecting me and I
was like Okay.
(39:44):
Okay.
I'm, sorry.
Like I was like, you know, wecould pay 200k for this and
we'll You know, you keep it,it's all good.
Oh yeah.
I would say that's like thecraziest thing I could think of.
Mike (39:58):
that's up there for sure.
Good on you for still gettingthe deal, right?
I
Brian Davila (40:04):
Oh yeah, yeah, I'm not, I'm not a freaking weenie.
I'm not like, you know, I'm noteasily offended here.
Not like all these people thatget pissed off just because
someone else is voting forsomeone else and they're like,
Oh my God, I'm unfollowing thisguy because he's voting for
Trump.
I'm not like any of thoseweenies.
Yeah, do you still want this ornot?
(40:26):
I just drove here.
It's like 30 minutes away.
I'm not going to just leavebecause you're an idiot.
Mike (40:30):
Yeah, I like that.
Cool.
Well, second question I alwaysask kind of for the newer people
listening to the show, which isif you could go back in time,
give yourself one piece ofadvice when you were looking for
that first real estate deal,knowing what you know now, what
would you tell yourself?
Brian Davila (40:52):
Um, I would say like find a calculator because I
feel like when I used, when Ifirst started, I was like, I
would look at the houses, notlike a regular calculator, like
a Google calculator, but like aflip calculator, um, put in, For
right now, like 45 a squarefoot, just as a rough estimate.
(41:14):
And every house just run thenumbers on.
Cause I, at first I would lookat houses.
I'm like, I mean, this house is200.
I think the houses around herson for 300.
And I would just kind of guess alot.
Um, until I was like, Oh, likethere's, it's just simple math.
Like if, and the numbers, most90 percent of the numbers don't
change.
(41:34):
It's like the ARV, the rehab.
Everything else kind of staysthe same, you know, you put your
minimum net profit.
So like, if I would have justdone that in the beginning, I
would have saved a year of justlike, I don't understand like
what to offer or dah, dah, dah.
So yeah, like get a, get acalculator and then go out and
make offers like make a hundredoffers.
(41:56):
Even if the calculator saysthey, you need to be at two 25
and they're at three 35, likejust make the offer.
And then slowly you're like, Oh,okay.
Let me offer on ones that arelike close to where I need to be
at.
So I would, if I would have donethat, I would have been
successful way faster.
Mike (42:13):
Yeah, I think that's a great piece of advice.
And I like the fact that you sayit's simple, right?
Cause it really is.
I've seen people with thesecalculators with 50 inputs.
I'm like,
Brian Davila (42:24):
No.
Yeah.
It should be like six.
Yeah.
There should, there shouldn't bea ton of inputs and they're free
too.
So like, you don't need to gopay some guru for a calculator.
Like Google, you know what, youknow what, dude?
I've been thinking about this alot.
So I've been using chat GBT alot and like I legit got my
(42:45):
nutrition plan and my wholehealth plan from chat GBT.
And I was like, dude, like Ididn't even have to go to a
fricking gym trainer.
Like I told it everything that Iwanted.
I told it the way I told it, howmuch I want to lose, what my
body fat percentage is, what Iwanted to do.
And it gave me.
I'm pretty sure you can go intochat GBT and ask anything about
(43:07):
real estate and the more you useit, the better you get at using
it.
So frigging, if people can'tfigure it out now, it's because
they're idiots.
There's no excuse on like whyyou can't figure out how to do
real estate.
It's just a lack of effort.
It's not a lack of likeinformation.
Mike (43:24):
and it's not that much effort to type one question in
the chat GPT.
Brian Davila (43:30):
Well, the effort is going to come when you have
to go out and put in the offers.
That's like where the hustle andthe sales skills are going to
have to come into, but likefinding the information.
Um, I guess it like, I guesssorting the information in the
right sequence is important, butyou know, chat GBT nowadays
could like answer 99 percent ofthe stuff.
Mike (43:53):
For sure.
Cool, man.
Well, if people want to reachout to you after the show, if
they have questions or they wantto, you know, maybe check out
your show,
Brian Davila (44:01):
Yeah.
Mike (44:02):
finding you or contacting you?
Brian Davila (44:04):
Yeah.
If they go on YouTube, go towealthy investor, RE on YouTube,
or the Brian de Villa on realestate.
And, uh, yeah, hit me up.
I'll answer anything that youguys need.
Mike (44:16):
Cool.
Awesome, man.
Thanks for being on the show.
Brian Davila (44:19):
Thank you for having me on brother.
Appreciate it.
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