Diva Rescia is a multifamily specialist with the Boyett Team at CBRE, helping clients buy, sell, and reposition apartment buildings across Southern California. A former FOX and Univision TV news anchor turned real estate expert, Diva has transformed over 30 properties and spent more than 15 years mastering the art of real estate investing. Her early experience rehabbing homes and her deep market knowledge give her a unique edge in delivering strategic, results-driven solutions for investors of all levels. Known for her tenacity and passion, Diva brings the same grit that’s carried her through seven marathons to every deal she takes on.
Here’s some of the topics we covered:
- From Argentina to the American Dream at Age 11
- How Diva Turned Her First Flip Into a Real Estate Launchpad
- The Game-Changing Shift From Flips to Multifamily Wealth
- The Harsh Truth About Single-Family Turnkey Investing
- Why Investing in California Can Drive You Crazy (But Still Pay Off)
- The Untapped Goldmine of Residential Assisted Living
- California vs. Florida: The Real Estate Showdown You Need to Hear
- The Ugly Truth Behind California’s ADU Investing Frenzy
- How a Scarcity Mindset Became Diva’s Greatest Advantage
To find out more about partnering or investing in a multifamily deal: Text Partner to 72345 or email Partner@RodKhleif.com
Full Transcript Below
01:20:07:29 – 01:20:36:10
Rod
Welcome to another edition of Lifetime Cash Flow to Real Estate Investing. I am thrilled you’re here today, and I’m thrilled with the interview I’m having today. Our name is Diva Rishabh and Divas from LA, and we have a lot of fun talking about the difference between California and Florida, among many other things. And, she’s with CBRE, does multifamily in California and, used to be a news anchor and reporter, and we’re just going to have a lot of fun and a wide ranging conversation.
01:20:36:10 – 01:20:37:16
Rod
So welcome to share.
01:20:37:17 – 01:20:39:10
Diva
Thank you for having me. I appreciate.
01:20:39:10 – 01:20:52:28
Rod
It. Oh, yeah. Let’s let’s have some fun today. So we’re going to, really get into things because I follow you on social media and I see some of the stuff you talk about and it’s it’s always, very entertaining and and interesting. Yeah, yeah. And, all.
01:20:52:29 – 01:20:54:20
Diva
The nonsense that’s going on in California.
01:20:54:20 – 01:21:02:21
Rod
Oh, good God. Yeah. Don’t get me started. Yeah, we’ll have some fun with that. But why don’t you just do a better job of an intro than I just did? Tell us your story a little bit.
01:21:02:21 – 01:21:27:04
Diva
So I grew up in, actually in Argentina. I came here when I. When I, I came to the States when I was about 11 years old. And, I kind of relate to your story because my family came from very poor, humble beginnings. So most of my life I, grew up in a garage. And we had to go to church because we couldn’t put food on the table, so we would have to go to church, like, in bags of food.
01:21:27:06 – 01:21:49:06
Diva
So, fast forward, I got into journalism. That was, my passion. Journalism. And so I did that news anchoring, for quite some time. But Fox tried to always control my script, whatever I was writing. So I got fed up and my parents to make ends meet. They they kind of then got into real estate.
01:21:49:06 – 01:21:54:13
Diva
After my parents split, my dad got into real estate. They kept pushing me to do real estate. My mom was doing on her own.
01:21:54:13 – 01:21:56:12
Rod
My dad, this is in Southern Cal.
01:21:56:15 – 01:22:21:15
Diva
This is in Southern California. We came to the States and, so I would at 17 years old, I was kind of already helping my dad, like, by going and fixing the properties. So fast forward, they kept my dad kept telling me to buy my first investment. So I ended up buying my first investment. I still had a contract with the station, and one day the light switch went off and I was like, you know what?
01:22:21:15 – 01:22:23:07
Diva
After this, I’m just going to the lights.
01:22:23:07 – 01:22:25:01
Rod
Oh, the light switch. What up in your head? Yeah.
01:22:25:01 – 01:22:42:19
Diva
I was like, I have this. I’m just going to leave, you know, my job and I’m just going to go buy my first house. So I had stacked a little bit of capital, and I ended up buying my first house out in the boonies. It was called, Colton is like, really hood there? I would, I would say that’s like a class D, okay, so I didn’t have sufficient capital to rehab that property.
01:22:42:19 – 01:22:52:29
Diva
So I, went on YouTube University and I was rehabbing that property for like six months. Mind you, I had no furniture because I just left. I was in.
01:22:53:00 – 01:22:53:16
Rod
You lived in.
01:22:53:16 – 01:23:13:20
Diva
It? I lived in it. Oh, wow. Holy cow. Yeah, I live there. And I just got a beat up mattress, and I put it on the floor, and that’s where I slept. And, I think that property didn’t even have a toilet at the time. Well, so I had to go to Extreme Measures where I had to just get, like a Home Depot bag and put a plastic bag and just do doo.
01:23:13:23 – 01:23:35:08
Diva
Oh, yuck. Yeah. So, that’s how I got started in real estate, but that’s kind of my background. So, I come from a split up family. They were always fighting about money. They live in a scarcity mindset. And, I knew that being in TV. Yeah, that’s my passion. But it’s not going to give me the financial freedom.
01:23:35:11 – 01:23:55:12
Diva
So I ended up flipping that first property. It was just like a no brainer because I made it wasn’t a lot of money. It was just like 20,000. And that was just, just a mind opener because 20,000. I had to work like half a year to make that 20,000. So that’s just when I just kept flipping and flipping and flipping and it’s like, I do miss journalism.
01:23:55:12 – 01:24:00:07
Diva
But I always said to myself, like, I could go back and do journalism anytime I want. Sure, yeah, sure.
01:24:00:11 – 01:24:03:05
Rod
So that first house was when I.
01:24:03:05 – 01:24:07:19
Diva
Want to say this was when I was about in my early 20s.
01:24:07:26 – 01:24:08:13
Rod
Oh, so.
01:24:08:13 – 01:24:09:20
Diva
Yeah, early 20s.
01:24:09:20 – 01:24:13:09
Rod
Okay. And then, and, and you’ve done real estate ever since.
01:24:13:09 – 01:24:14:09
Diva
Ever since.
01:24:14:09 – 01:24:17:06
Rod
Yeah. So you got your real estate license and decided to start selling.
01:24:17:06 – 01:24:26:22
Diva
So. Yeah. So when I was starting to do my flips, I got my, license so I could save on commission so I could list my own property. Sure. And save on that.
01:24:26:22 – 01:24:28:08
Rod
But do you have access to the MLS?
01:24:28:09 – 01:24:48:12
Diva
You can. Yeah. You got access to the software. That was really important. So that’s how I would. I would kind of find my flips. But at the beginning I didn’t have access. So my brother was already a, broker. So I would sign on with his thing and just try to surf the MLS. But, yeah, I got my license, and that’s how I was able to save money.
01:24:48:12 – 01:25:11:13
Diva
And then I transitioned, you know, it just takes it just. It just takes so long, you know, because my parents always had that mindset of buying everything. Cash. They don’t know how to use leverage. So everything cash. So I said there has to be another way, you know, to to scale this business. And, I started looking into YouTube.
01:25:11:13 – 01:25:24:01
Diva
So when I was looking at YouTube, like how to rehab the floor, put up drywall, I came across, I want to say maybe fast forward, I came across, Grant Cardone, and I just started listening to the material and really submerging myself.
01:25:24:07 – 01:25:28:29
Rod
As I mentioned, I saw you, you did a little presentation for Grant Grant’s latest, real estate.
01:25:29:06 – 01:25:31:07
Diva
Yes. Pitch picture deal.
01:25:31:09 – 01:25:33:12
Rod
So now you’re in multifamily?
01:25:33:14 – 01:25:55:17
Diva
Yeah. So I transitioned from single family. So I did fix and flips for about ten years. 12 years. So I had to go. It’s just all that time that it takes to really rack your capital. You have to go to Home Depot. You got to field your contractors. Sure. No, you don’t have sufficient. You don’t have sufficient. Yeah.
01:25:55:18 – 01:26:02:06
Diva
You don’t have sufficient capital. So I just had to go to Home Depot. So I would like pick up the guys at Home Depot and they would kind of help me.
01:26:02:06 – 01:26:05:07
Rod
Oh, you got a lot of laborers that stand around Home Depot guy. Yeah.
01:26:05:07 – 01:26:08:01
Diva
Okay. Yeah, I when I first started. Yeah, that’s what I had to do.
01:26:08:01 – 01:26:08:27
Rod
That’s what I was doing.
01:26:08:27 – 01:26:10:16
Diva
Now I know, which.
01:26:10:16 – 01:26:16:15
Rod
Is that I don’t agree with by the way, but, you know, get the criminals leave. Leave the leave the other ones alone.
01:26:16:17 – 01:26:17:02
Diva
Right.
01:26:17:03 – 01:26:26:01
Rod
But, so, so, you know, what’s interesting is you got your license, so you really didn’t go out there and sell real estate. That wasn’t your place.
01:26:26:01 – 01:26:29:06
Diva
You know, I started as a principal, right? Yeah. Right.
01:26:29:06 – 01:26:44:09
Rod
Right. And you know what I did just as just as an aside, just to throw it out there and and be careful what this guy says. I actually found a retired broker. Because I was a broker. Right? When I turned 18. I actually got my broker’s license back then. You could do with education. They got smart.
01:26:44:09 – 01:27:01:01
Rod
Now you need some frickin experience before you can actually have your own office, but I could. I had my own office when I was 18, and. And, I went and smart enough to go work for another broker. But when I let that go decades later, I found a retired broker, and I said, hey, you know, I’ll give you 300 bucks a month.
01:27:01:05 – 01:27:24:25
Rod
And if I, if I and you get access to the MLS, I pay for everything. And, if we do it, if I do a deal myself, you know, you can own part of the brokerage, but you’ve got to have a licensed broker to, to qualify it. And, and so I would own part of the brokerage and anything that any activity that I did in one of my houses of the commission came into the brokerage and came out to me.
01:27:24:27 – 01:27:30:26
Rod
And so, yeah, so, like, even on this compound, I think I made about 80 or $90,000.
01:27:30:29 – 01:27:32:04
Diva
When I bought it. Yeah.
01:27:32:10 – 01:27:53:15
Rod
As a commission and, and I had access to the MLS and all that and, and, you know, so now now you just be careful with that one, guys. But but it is a strategy, that I did and and of course, smart strategy. I’m fairly sophisticated. So, you know, there’s, there’s some nuances to it, I suppose if you DM me, if you’ve got some questions around it, I can elaborate on it.
01:27:53:15 – 01:28:03:15
Rod
But, so when, when, why and when the transition. Well, I know the why, but go ahead and articulate the why the transition in multifamily.
01:28:03:15 – 01:28:23:11
Diva
I mean so I just, I when, when I just started going on YouTube, I just started listening more and more multifamily. And I said, there has to be a different ball game. So and I started listening to the brokerages that people were talking about, like CBRE, Eminem. So something clicked in my head back then and I said, you know what?
01:28:23:11 – 01:28:30:09
Diva
One day I want to work for some of the largest brokerages. And I started off in Marcus and Millichap.
01:28:30:15 – 01:28:35:04
Rod
Where most people do. Yeah. And so you were cold calling like a, like an MF for.
01:28:35:04 – 01:28:46:17
Diva
Yes, yes, yes. So I was doing a lot of call because I was probably the top call caller. Yeah, they would always put me in the front because I was good at getting, clients to do BVS on. So I’m good on the phones.
01:28:46:19 – 01:28:56:22
Rod
But so, so, so just, what you just said Bobby’s broker’s opinion of value. So, you know, you call and say, hey, do you want to know what your property’s worth? And and they do a Bobby. Yeah. Anyway.
01:28:56:25 – 01:29:16:09
Diva
And then I started getting access to software. And in this software I can look at people’s portfolios and I would look at like Blackstone. And I said, and I couldn’t read the numbers because there’s so many zeroes in there. And I said, I need to find out what these guys are doing. Like, how are they, you know, with this multifamily.
01:29:16:12 – 01:29:36:06
Diva
So once I started learning how to do the valuations for the clients and looking at portfolios, I already knew I was all in. There’s no turning back. I’m not going back to single family. I’m just going to focus on doing multifamily. And, after I left M&M, I decided to go to CBRE because I knew that was it.
01:29:36:10 – 01:29:38:16
Rod
My name is Marcus and Millichap, just so you guys know.
01:29:38:22 – 01:30:03:15
Diva
And then I decided to go over to CBRE, where I’m at now, because I also feel besides doing the principal side, there’s an underserved community, which is like the mom and pop operators, and they’re yes, they might have they might have bought their property like in the 1980s or 19, but they don’t really understand depreciation. So I mostly work with capital markets and they own the property so much.
01:30:03:15 – 01:30:09:19
Diva
But sometimes I like sitting with them because you can show them the strategy of how to scale that business.
01:30:09:25 – 01:30:25:16
Rod
Well and, and how to, how to, seller finance deals that they get rid of so they don’t pay the taxes the first year either. I mean, I teach that in my bootcamps is, you know, if you’ve got or if you’ve got a retiree that’s a seller, the several things that play one, they’re fully depreciated. So they’ve no more right off.
01:30:25:16 – 01:30:42:10
Rod
So if they sell, they’re going to maybe get $0.70 on the dollar. Right. They they’re not a high risk any longer. They’re not going to take that money from that, that that big asset that they own and put it in another high risk investments likely going to go in the bank. And what’s you know, and they’re going to get cash flow based on whatever that interest rate is.
01:30:42:10 – 01:30:59:22
Rod
And you know, if you go to them and say, hey, you know, finance me, I’ll give you deposit. So, you know, I’m, I’m serious and I’ll pay you more interest than the bank is paying. And you’re going to basically end up with, you know, double what you’d get from the bank, right? And you’re only paying taxes because you’re only paying taxes on what you get each year.
01:30:59:22 – 01:31:12:07
Rod
And, it’s just a, it’s a, it’s a win for them. Not just not just for the buyer. So, you know, any time you encounter a retiree that’s a seller and you don’t have that self that that seller finance conversation, you’re doing them a disservice in my opinion.
01:31:12:09 – 01:31:26:28
Diva
Well, yeah, 100%. And a lot of them don’t even know it’s seller finance. Right? I’ve sat with a lot of clients. I don’t even know the strategy. Like how does it work. Sure. So I think, on that side is just, form of giving back in the sense that you can actually help these mom and pop operators.
01:31:26:28 – 01:31:33:07
Diva
They don’t really understand all the it the benefits of real estate and maybe how they can scale that business.
01:31:33:10 – 01:31:40:01
Rod
And so, so just elaborate on that a little bit. So how talk about how you would help them scale that business.
01:31:40:04 – 01:31:53:07
Diva
By more so it’s or. Well, if, if we go to California, they own these old buildings and the insurance costs are going up. Real estate taxes are going up, their insurance is getting dropped. So sometimes.
01:31:53:07 – 01:31:55:01
Rod
Payroll, all expense.
01:31:55:01 – 01:31:55:21
Diva
Management.
01:31:55:21 – 01:31:59:29
Rod
You know, expense ratios used to be 50%. That’s out the window at this point.
01:32:00:00 – 01:32:24:19
Diva
Right? No, it’s way overboard. But it’s kind of just sitting down with them and looking at, you know, what’s in their portfolio and how we can scale that in the sense maybe transitioning into a newer asset. Or number two, kind of looking at estate investments. Oh, good. Or other investment vehicles, whether that be like a triple net or seller carry back triple net.
01:32:24:19 – 01:32:41:14
Rod
By the way, guys, this is like, an example of a triple net would be like a Walgreens where someone else owns the land, and, triple net means they pay all the expenses. So Walgreens pays the taxes, the insurance, the the upkeep, everything. And, and there’s a lot of examples that Dollar General is a lot of triple net those.
01:32:41:14 – 01:32:49:14
Rod
So, you know, they’re typically very often they’re single single tenant. Well they’re actually they’re multi-tenant as well. But triple net basically means the tenants pay everything.
01:32:49:19 – 01:32:53:29
Diva
Or even or even storage facilities. You’re not you’re not dealing with tenants, right.
01:32:54:00 – 01:33:07:16
Rod
Yeah. Storage is a my my warriors on thousands and thousands of storage units. Yeah. That’s it’s you can’t ramp the value usually as easily as you can in multifamily, but they’re they’re very stable. You know, people like to keep their stuff.
01:33:07:16 – 01:33:15:02
Diva
And sometimes they don’t. They don’t I don’t really unders. I understand the business as a, as a principal or operator, but like, why would you I have a storage.
01:33:15:05 – 01:33:20:20
Rod
Well, let me tell you I’m the perfect example. I have six buildings here and they’re all full of stuff. Oh, yeah.
01:33:20:26 – 01:33:22:13
Diva
Crap, crap. You ever use.
01:33:22:13 – 01:33:37:17
Rod
It? No, no, 99% of it. And and don’t don’t ask the why I but you know, if, if I didn’t have any money, I’d be one of those hoarders in an apartment complex in an apartment with pathways through all the crap in their apartment, which I’ve had. But, that would be me.
01:33:37:25 – 01:33:41:00
Diva
But I’ve been through some fixing flips like that. Oh, yeah?
01:33:41:03 – 01:33:58:27
Rod
Oh, yeah, we. I bet we could share some, some stories about some of the crap we’ve seen there. Oh, man. But, yeah, I, I have some funny ones. So landlord tenant stories, but, so, so now you’re and doing multifamily? Are you, a principal in, in some stuff where you beginning, are you leaning into that or.
01:33:58:27 – 01:34:00:07
Rod
You’ve already been a principal?
01:34:00:11 – 01:34:20:05
Diva
Yeah, I’m already a principal into multifamily. So, about two years ago, I bought a, a, nine unit building. Nice side. Nice. And it was actually a good deal, so that you’ll probably make quite a bit of, nice turn on that. But it’s a headache because it’s very hands on. Very. And a.
01:34:20:05 – 01:34:23:07
Rod
Nine unit. Yeah. You really it’s tough to find a good management.
01:34:23:07 – 01:34:34:28
Diva
Company, but it was a very badly mismanaged. So I just give you an example on one of the units I had a tenant. Mind you, this is a one bedroom, one bath and one of the units. And there were 17 dogs in Jesus. 17.
01:34:34:28 – 01:34:58:09
Rod
Imagine the smell. I remember my first property. I had a cat woman. Okay. And it was an old eight building, 1800 flat roof, piece of shit house brick, but smelled. Oh, it smelled so bad. I was in the crawlspace spreading a lie. That’s how bad it was. I kills, I use kills, which is a sealant. You spray before you paint if you’ve got smell or burn.
01:34:58:12 – 01:35:03:08
Rod
Oh, yeah, I kills everything. The floors, the walls, the ceiling. You could still smell it. It’s just.
01:35:03:14 – 01:35:06:02
Diva
It’s a some of those. You have to go in with a hazmat. Yeah.
01:35:06:09 – 01:35:21:16
Rod
Oh it it was so bad. But, you know, this this this is what you do. This is. Yeah. And I want to scare you. I don’t scare you off because I still made. I probably made, you know, 20, 30 grand on that. I don’t remember, I’ve owned 2000 houses at this point, but, Yeah. But anyway,
01:35:21:18 – 01:35:40:23
Diva
That’s funny. So, yeah, the stabilization is like, people don’t say, yeah, you, you, you own real estate, but they don’t see, like, the hard work behind it. And now once you start learning the other side of the game, which is like the syndications and raising capital, but, you could get some good deals even with like, stellar carry back on those smaller buildings.
01:35:40:25 – 01:35:44:29
Diva
But yeah, I even had to go to court like to do an eviction. Oh.
01:35:45:00 – 01:36:03:03
Rod
Oh, that’s a treat. You know, if you ever want to, if you’re a like a, I don’t know if it’s sadist or masochist. The one that enjoys seeing other people suffer through eviction court and, and watch the glee on the judge’s face when somebody did their paperwork wrong and they get the pleasure of them to get to start all over again.
01:36:03:03 – 01:36:07:15
Rod
Yeah. And of course, California’s a frickin shit show as it relates to eviction. I mean, tell.
01:36:07:15 – 01:36:08:00
Diva
Me about it.
01:36:08:00 – 01:36:08:20
Rod
I mean.
01:36:08:22 – 01:36:21:09
Diva
I actually just finished up an eviction. The lady. So the over there, you get, they issued the allocated money to the attorneys so they can represent the tenants. They have this thing called tenant rights.
01:36:21:12 – 01:36:23:29
Rod
So they so they pay the money, they pay their legal fees.
01:36:24:02 – 01:36:30:28
Diva
Yes, they pay all their fees. And the landlord has to come out of pocket like that. Eviction cost me close to about 15, $20,000.
01:36:30:28 – 01:36:33:05
Rod
You’re kidding. I’m not. How long did it take to get them out?
01:36:33:05 – 01:36:42:08
Diva
Well, we’re. I’m in the process of just, How long has it been going on? How long is it? I want to say since April. Okay. April.
01:36:42:10 – 01:36:44:16
Rod
So we’re already six months in? Yeah.
01:36:44:16 – 01:36:45:27
Diva
Still six months. No rent.
01:36:45:27 – 01:37:04:17
Rod
Oh, no. It’s insane. It’s insane. I mean, no, I’m. I mean, that’s insane. I mean, well, let’s talk about that for a minute. Yeah. Because, you know, it’s the stupid shit like that. That’s the reason California’s broke, you know, and they’re overregulated. You’re paying. You’re they have funds to pay for someone’s eviction, for a deadbeats eviction costs.
01:37:04:17 – 01:37:05:22
Rod
I mean, that’s ridiculous.
01:37:05:22 – 01:37:18:25
Diva
I agree, and mind you, they’re doing drugs. And I have video of them doing drugs on the property. But. And then she still filed for bankruptcy to delay the eviction. Oh, sure. To delay. Oh, sure. Process.
01:37:18:25 – 01:37:39:09
Rod
Oh, no, I had that. I had 200 houses in Memphis at one time, and this was, they had they’ve had some bankruptcy reform in 2005. This was before then, I think it was called back. But, but but back then, if someone, was being evicted, they got like 5 or 6 letters in the mail from attorneys.
01:37:39:09 – 01:37:51:11
Rod
That’s, that would say, file a wage earner. We can stop your we can stop your eviction when a wage earner was a chapter 13 bankruptcy, but they called it a wage earner. And, I mean, it took me a year to get people out in Memphis. I one.
01:37:51:11 – 01:37:51:26
Diva
Year and.
01:37:52:02 – 01:38:06:13
Rod
Yes. Oh yeah, this is again, this is in the early 2000s, late 1999. I had 200 houses there that I bought in one year. I bought houses in Memphis, two story, three bedroom, two bath, 1500 square foot house for $1,500.
01:38:06:15 – 01:38:07:16
Diva
1500.
01:38:07:16 – 01:38:12:29
Rod
1500, $5,000, $3,500. And I regret every single one that I bought. Why?
01:38:12:29 – 01:38:14:13
Diva
Was it because it was in a like a rough.
01:38:14:13 – 01:38:17:21
Rod
No. These these yeah. Horrible, horrible areas and.
01:38:17:26 – 01:38:19:22
Diva
Thousand dollars I would have bottom two. Yeah.
01:38:19:22 – 01:38:26:20
Rod
Oh yeah. I mean when I saw that I was on a HUD list, HUD foreclosure list, man, I was on the next plane out there and I bought 200 houses in one year. But you.
01:38:26:20 – 01:38:27:05
Diva
Regret it?
01:38:27:05 – 01:38:32:20
Rod
Oh, every single one. Yeah. I just finally got rid of the last 7 or 8 there, and I basically gave them away.
01:38:32:23 – 01:38:36:02
Diva
Would you say it cost you more money to. I had a long run.
01:38:36:02 – 01:38:52:19
Rod
I had I had my own management company. I had, I had a business, one of the one of the properties I bought was own business. I put in a management company. I had a property manager embezzled $100,000. She signed a confession, and the police still wouldn’t go after her greed. Oh, yeah. No, I don’t even want to fly over Memphis airspace.
01:38:52:19 – 01:38:53:05
Rod
And, you know.
01:38:53:05 – 01:38:54:03
Diva
You’re done with Memphis.
01:38:54:03 – 01:39:06:05
Rod
I. You know, it’s funny, I my boot camps. I complain about this all the time. So my listeners know about this at my boot camps. I’ll say, is anybody here from Memphis? And nobody raises their hand because they know I’m about to trash it, but oh, God, don’t get me started.
01:39:06:05 – 01:39:08:22
Diva
So do you think all of Memphis is a no no?
01:39:08:22 – 01:39:18:26
Rod
No, of course not. Of course not. And I’m having some poetic license with this and having some fun with this, but I, I mean, I tell you, I, I really had a bad experience there.
01:39:18:26 – 01:39:20:26
Diva
So I mean, what are you getting for 1500.
01:39:20:26 – 01:39:25:09
Rod
Dollars? Oh, yeah. Oh, no, it was a three bedroom, two bath, 1500 square foot house.
01:39:25:11 – 01:39:27:14
Diva
Yeah. Yes, cheap I was oh, cheap.
01:39:27:15 – 01:39:34:23
Rod
That’s nothing. And again, 3500, 5000. I mean I bought a bunch of them and, and I bought a bunch for 20 a pop as well.
01:39:34:26 – 01:39:37:21
Diva
So you bought these through a HUD foreclosure.
01:39:37:23 – 01:39:49:24
Rod
There was, there were HUD foreclosures. Wow. Back in the day, and there were just properties that were marketed for sale that I bought, and, and I literally bought 200. It might have been 18 months, but, I mean, in a very short period of time.
01:39:49:24 – 01:39:52:22
Diva
Wow. Yeah. And, are those lists still going around? I’m kind of.
01:39:52:24 – 01:40:11:25
Rod
No, no, that’s long gone. Long gone. And there are people that have made a lot of money to see if I live there. I probably could have made some serious money. Yeah. Because, you know, there are people, some, some, some big players. I don’t know if you know, the clothiers, they, they do. What is it called?
01:40:11:28 – 01:40:28:24
Rod
Oh, God. Where they fix up the house, and then they’ll rent it for you, and, there’s a term for it. I’m just having a brain fart leasing. No, no, no. So. So they’ll sell a house to somebody a thousand miles away, and they’ll manage it for them? It’s not build the rent. It’s,
01:40:28:27 – 01:40:30:15
Rod
Oh, God. I’m hoping to have an a,
01:40:30:17 – 01:40:31:26
Diva
Like a mid term rental.
01:40:31:27 – 01:40:51:09
Rod
No no no no no no, they’ll just manage it for them. And turnkey. It’s turnkey. Yeah. Turnkey. And and, I can tell you everybody I know that has done turnkey has regretted it because you have no leverage with the management company. If your place is empty and you know, they’re going to charge you to fix it up and, you know, houses just don’t cash flow like multifamily.
01:40:51:09 – 01:41:09:21
Rod
And, you know, ask me how I know. I mean, I’ve had 2000 that I’ve rented long term. And so, but but yeah. So back to California for a minute, because I know you are very vocal about what’s going on there, and I’m pretty vocal about it as well. And, and I get hate every single day, you know, because I’m about as red as red can be.
01:41:09:23 – 01:41:14:18
Rod
But, you’ve seen some crazy shit there. I mean, I’ve seen you post about it.
01:41:14:19 – 01:41:34:11
Diva
Yeah. It’s just, it’s every day I get these news articles from L.A. and, and I just read and I just start laughing like, what are you supposed to do? You get, for example, they’re trying to pass a mandate of that. The temperature inside the unit cannot be more than 82 degrees, or else the tenant can come back and you can be in some serious shit.
01:41:34:18 – 01:41:35:13
Rod
Oh, Jesus. Yeah.
01:41:35:14 – 01:41:45:28
Diva
Give me. That’s one they’re trying to force the landlords also like, say you have gas appliances, right? They’re trying to force every single unit of electric to go electric. Yeah.
01:41:45:28 – 01:41:58:28
Rod
Because of the environmental supposed environmental crisis. Yeah. I just spent about 40 grand to get a gas stove in my kitchen because I did it to the floor out. I had to run a propane line for my propane tank all the way in. You know, it’s the most expensive gas stove ever.
01:41:59:03 – 01:42:04:08
Diva
And but not let’s not even talk about insurance. How many of these property owners are insurance contra?
01:42:04:09 – 01:42:04:27
Rod
Oh my God.
01:42:04:29 – 01:42:20:00
Diva
So if you had fire, if you have any of these for certain panels like Cisco, I forget all the names of the electrical panels. You had a good job. No excuse. No kidding. And then they’re calling the mortgage. So, a lot of the clients are, like, just panicking, like I need an insurance, and nobody wants to insure them.
01:42:20:00 – 01:42:26:20
Diva
Wow. So if you if you don’t have a network of insurance agents, you’re, like, kind of scrambling in trying to find insurance.
01:42:26:22 – 01:42:31:02
Rod
But some of the regs are just insane. I mean, you got rent control of course as well, right?
01:42:31:02 – 01:42:51:29
Diva
Yeah. Lay 3% and it’s tapping into Orange County, which Santana is in Orange County is 3%. So if you’re insurance class, like I said before, if your insurance costs keep going up there doubling or tripling, right. Your taxes are insane, right? You can raise rents, your property’s deteriorating. You rather just leave the place like a slumlord. Yeah.
01:42:51:29 – 01:42:57:20
Diva
So you’re not even going to go in there and fix the floor. You’re not going to fix anything. What for? Yeah. If you can’t charge rent. Yeah.
01:42:57:22 – 01:42:59:05
Rod
No, it’s it’s not insane.
01:42:59:07 – 01:43:09:10
Diva
And let’s not talk about that. The eviction process. Like if you have a tenant that’s not paying you right. I know someone, one of my, friends as an investor, he paid someone 100,000 for.
01:43:09:10 – 01:43:10:10
Rod
Them just to get out.
01:43:10:13 – 01:43:32:24
Diva
Just to get out of the property. And right now, you’re seeing property in L.A., like price per unit one, 80 200,000 per unit. Yeah, well, so you could really steal. There’s people that are there’s investors that, you know, they know that market they bought in previous cycles. So they understand the appreciation. But it’s like how much are you going to put up with this.
01:43:32:24 – 01:43:49:29
Rod
Well yeah. And what can you do? I mean if you can’t get the rents up you can’t, you know, it doesn’t matter what you can pay for it. I mean, I by the way, I mean, I’m seeing a lot of distressed assets right now all over the country. And we found out about a portfolio of 700 units in Texas that was 10,000 a door.
01:43:50:06 – 01:44:07:19
Rod
Okay. Oh, wow. Yeah, we’ve got a I’ve got a property in San Antonio that’s 200 units on a lake. And the property next door is 300 units right next door, same vintage. And they that sold for 43,000,003 years ago. They’re down to 28 now.
01:44:07:21 – 01:44:08:25
Diva
Overleveraged.
01:44:08:27 – 01:44:18:28
Rod
Oh. Yeah. It was overleveraged. But, I mean, it’s it if if it goes down to 24, we may buy it, in which I’d love to have, because then I can vertically integrated that market. Right. But,
01:44:19:00 – 01:44:20:21
Diva
You don’t think there’s a lot of supply? They’ll come in.
01:44:20:22 – 01:44:41:12
Rod
There’s a lot of deals being sold for debt plus fees right now, you know, all the equities gone and but but they still don’t pencil. And so you know these lenders are going to have to take haircuts to to sell these things. And you know I think there’s an I know there’s incredible opportunity coming already seeing it just based on those two deals as an example.
01:44:41:12 – 01:45:00:28
Rod
And, the broker, the brokers on these deals are seeing tons of these deals trying to be sold just for the debt. These operators are trying to get out, you know, all the investors are losing their money. You know, these are and some of these are very sophisticated operators. I mean, I know some guys that that that I admire that I look up to that, that are losing deals.
01:45:00:28 – 01:45:03:02
Rod
And so, you know, it’s it’s a.
01:45:03:02 – 01:45:04:08
Diva
Window of opportunity.
01:45:04:08 – 01:45:14:11
Rod
For well I think with crisis comes opportunity. And so, you know but are you just in multi or are you doing any other asset classes.
01:45:14:13 – 01:45:20:17
Diva
I just do multifamily. I kind of want to tap into the, storage space storage, but I haven’t yet.
01:45:20:18 – 01:45:24:06
Rod
Well, I’ll tell you what I want to tap into. I bought my first assisted living facility.
01:45:24:06 – 01:45:25:19
Diva
Oh, I got to tell you a story about that.
01:45:25:19 – 01:45:33:12
Rod
And to, like, the three weeks ago and, yeah, very excited about senior housing. And there’s 10,000 people a day turning 65 in this country and know.
01:45:33:12 – 01:45:39:24
Diva
Oh yeah, baby boomers. Yes. That’s a great business. So how many beds is that? One that you 51. Oh, wow. Congratulations.
01:45:39:26 – 01:45:54:29
Rod
Thank you. Yeah. Now we’ve got like 7 or 8 we’re looking at right now and, and yeah. And I’ve, I’ve aligned with a really competent operator. The key is the operator. And I love the, I love the elderly and I, I wouldn’t be able to live with myself if someone was abused or not taken care of properly.
01:45:54:29 – 01:46:15:26
Rod
And so I take that very seriously. And this operator, I was so impressed because, you know, those those workers aren’t the highest paid out there. And so culture is super important how they take care of the employees, how they validate and praise and and educate the employees. And I was super, super impressed with these guys. And and they’ve they’ve turned around billions of dollars in assets in the, in that space.
01:46:15:26 – 01:46:39:20
Rod
So we’re, we’re aligning with them and they’re nationwide. And so very excited about that partnership. And we’ll, we’ll just do the real estate side. And so we’ve got I went to the Nick conference in Austin in Austin. Yeah. And Austin and and there were about I think 4000, senior senior housing people there and a lot of the brokers and, and, and we got a ton of deals that we’re reviewing right now that.
01:46:39:20 – 01:46:43:07
Diva
Well, let’s be aware. Is this a facility that 51 Pittsburgh or.
01:46:43:07 – 01:46:48:06
Rod
Pittsburgh and I would never buy in Pittsburgh for anything else. But but it’s a great market for this.
01:46:48:06 – 01:47:02:12
Diva
Yeah, I actually just toured one in Miami. Yeah. No I saw that, but I saw I actually I went and I got the email, I actually have it here. Maybe I could share with you. But I wanted to see like the rental. I think she said they were I don’t, I don’t she didn’t tell me the rental rate.
01:47:02:12 – 01:47:08:08
Diva
But I know what they charge. Right. It’s quite up there. But, this was like very luxurious and walked in.
01:47:08:11 – 01:47:23:18
Rod
Well, there’s some very nice ones. Yeah, we’re we’re targeting distressed ones. So a lot of, a lot of the senior facilities, gotten, you know, with Covid actually went out of business. Oh, yeah. A lot of them had, you know. Yeah, a huge unfortunately, a lot of people died. It’s very sad. And,
01:47:23:20 – 01:47:24:26
Diva
They had to close down.
01:47:24:29 – 01:47:34:16
Rod
Don’t get me started on how they could have saved these people because I, I know, but, anyway, so.
01:47:34:18 – 01:47:44:19
Diva
My brother, actually, he owns about ten of the nursing facilities. Oh. No kidding. Yeah, I think California and, like, great locations, but they started with, the smaller, which only, now nursing.
01:47:44:19 – 01:47:46:02
Rod
So he does skilled nursing.
01:47:46:05 – 01:47:46:27
Diva
Skilled nursing.
01:47:46:27 – 01:47:57:06
Rod
Yeah. So that’s a much harder business. Because, you know, you’re you basically have to have RN’s and everything else. That’s, that’s I’m, I’m totally focused on assisted living and memory care.
01:47:57:07 – 01:47:57:22
Diva
Yes.
01:47:57:22 – 01:48:00:03
Rod
But, we’re not going to do the skilled nursing piece.
01:48:00:05 – 01:48:10:10
Diva
But I told him his skill that business way, he’s just so hard headed because it’s, they’re just have them in different little. They have them in prime locations in Orange County. Well, no, actually assisted living, that’s what.
01:48:10:12 – 01:48:11:17
Rod
Oh, it is a system.
01:48:11:20 – 01:48:11:26
Diva
That’s.
01:48:11:26 – 01:48:12:05
Rod
Better.
01:48:12:05 – 01:48:17:20
Diva
Okay. That’s what he has about ten of them and and fantastic. They each have about six patients.
01:48:17:23 – 01:48:35:25
Rod
Oh. So these are houses? Yes. Oh, so this is residential assisted living? Yes. There was a guy that passed from Covid named Gene Guarino that taught that I actually went to his his course. And he charge like 35 grand to show you how to build. I’m tired of take a house and turn it into a residential assisted living facility.
01:48:35:27 – 01:48:43:00
Rod
Yeah. And I actually have a great friend in Sacramento that has six of them as well. Yeah. She’s she’s, she’s a she’s a rockstar.
01:48:43:03 – 01:48:47:01
Diva
But you could actually just buy the business like you the other day so you could buy it.
01:48:47:01 – 01:48:58:13
Rod
Yeah, you could just buy it. But that’s a very hands on thing because, you know. But but they rent the beds for five, 6000, 7000 or even $8,000 a month.
01:48:58:13 – 01:49:01:24
Diva
Yeah. Some places I want to say, like in Santa Monica, about 10,000.
01:49:01:26 – 01:49:02:26
Rod
10,000. No kidding.
01:49:02:26 – 01:49:12:08
Diva
Wow. Yeah, 10,000 per bed. But what I’m getting at is I’ve been trying to tell them, you know, how to scale their business. Go bigger, go bigger. Yeah. Like, why do you have it in all these different little. Yeah.
01:49:12:10 – 01:49:14:13
Rod
Nobody’s making a lot of money.
01:49:14:15 – 01:49:17:17
Diva
He is. But he’s you know, it’s it’s like Californian hardheaded.
01:49:17:17 – 01:49:30:16
Rod
Oh yeah. Yeah. Okay. Okay. So, I mean, you made a comment before we started recording. You’re here in Florida and you’re my studio right now, and you made a comment about Florida versus, California. Would you elaborate on that?
01:49:30:19 – 01:49:50:28
Diva
Yeah. So, when I got here, it’s just I’m seeing everything extremely clean. Like, I’m just shocked to the cleanliness. There’s nothing on this on the freeway. It’s clean. Right? Anywhere you go is just so clean. Yeah. Some of the best restaurants. The weather’s nice. We talk about. We have nice weather, but we. There’s a nice weather here.
01:49:50:28 – 01:49:51:24
Diva
It’s just a little humid.
01:49:51:24 – 01:49:57:13
Rod
Nobody pooping on the sidewalks. No, no, no tent encampments along the side of the road. I mean, there are here, but there.
01:49:57:13 – 01:50:13:07
Diva
But there’s some. There’s homeless, but you don’t see them as much. Like if you go to a place just. It’s everywhere, right? It’s everywhere. It’s a war zone. People on the side of the road, you know, going to the bathroom. But yeah, it’s just sad to see because I think the governor’s actually ran that state. It’s been a shit.
01:50:13:08 – 01:50:13:26
Diva
Oh.
01:50:13:28 – 01:50:21:07
Rod
He’s a joke. Sorry. He’s a joke. I you know, you can hate me for that, but I, come in in the fact that he’s thinking about running for president just as a.
01:50:21:07 – 01:50:39:17
Diva
General blows my mind to, like it sounds like a joke. Yeah. But I actually was at, I was at the Milken conference in Beverly Hills. Karen Bass was there. Oh, wow. And, she’s she was talking about the fires in a panel. Yeah. And she just seems. So, how can I say two faced, like, hypocrite?
01:50:39:20 – 01:50:43:06
Diva
Yeah. And I submitted a question to the interviewer. The guy, by the way.
01:50:43:06 – 01:50:49:04
Rod
She’s the mayor, right, mayor? Really? Yeah. Yeah, she’s a mayor. And so culpable for that shit show with that fire.
01:50:49:05 – 01:51:10:04
Diva
Yeah, yeah. It’s like, how are you not going to have water? No water. Yeah. In the fire hydrant. Right. And then you talk to any firemen, they’ll also tell you the story like they’re really upset of what happened. Right, right. And when going off topic, one of the guys that, that I met with in my office at CBRE, he actually lost his home.
01:51:10:07 – 01:51:22:14
Diva
Yeah. To the fire. Yeah. And it’s like he was only insured of up to 3 million, but the house was worth probably, like, 15 million, so he lost it. Wow. And he said he worked all his life to just give that surprise to his wife. One day.
01:51:22:14 – 01:51:23:11
Rod
And he’s lost it all.
01:51:23:14 – 01:51:24:00
Diva
He’s lost it.
01:51:24:00 – 01:51:41:21
Rod
All. Yeah. No, I was I was at, I was in, Tijuana last week, getting stem cell shots in my knee and, there was a guy there who lost a lot who was in the fire now, but he he all he lost was his garage. He sprayed his roof with. I thank God he had water still coming out of his hose.
01:51:41:21 – 01:51:52:04
Rod
And sprayed his rough. And he was able to save his house. Oh, really? Yeah, he was right in the thick of it. Yeah. Lots of houses lost around him, but, Yeah. What a complete shit show. Good lord, it is.
01:51:52:04 – 01:51:58:14
Diva
It’s a shithole. And it’s. I think, you know, it’s the politicians at the end of the day that are running that state to the ground. It’s,
01:51:58:17 – 01:52:00:00
Rod
Do you think it’s a land grab?
01:52:00:03 – 01:52:15:28
Diva
Oh, yeah. 100%. Yeah, 100% a land grab. Yeah. You know, they lost a commission. You don’t even know who they are, right? Who’s running that? You try to go get permits on a property or take you was 3 or 4 months. Yeah. You go to the city and you know, they give you the runaround. You got to. Yeah.
01:52:15:28 – 01:52:21:05
Rod
It takes forever. It. No, it takes more than that longer not to get a permit. I heard taking take up to a year to get a permit in California.
01:52:21:07 – 01:52:34:01
Diva
Yeah I, I actually a house rebuilt. I actually, yeah. House rebuild. Depends on what cities. But, I actually did some ADUs and the cities are just notorious. You go in there, they don’t know what the heck you’re doing.
01:52:34:03 – 01:52:35:08
Rod
You did some ADUs.
01:52:35:08 – 01:52:35:29
Diva
I did talk.
01:52:35:29 – 01:52:38:12
Rod
About that a little bit.
01:52:38:14 – 01:52:39:11
Diva
It’s just the law was.
01:52:39:12 – 01:52:40:07
Rod
It was a mess.
01:52:40:10 – 01:52:44:29
Diva
It was a mess. Because, you know, you go to the city with your your architectural plans. Sometimes I don’t even know.
01:52:45:02 – 01:52:47:04
Rod
Describe what an Adu is for my listeners.
01:52:47:06 – 01:53:06:23
Diva
So it’s an accessory dwelling unit since there’s a housing shortage, right? A lot of these garage are illegally converted. So obviously the state came in and they said, hey, we gotta make some money off this. So now we’re going to start doing the ADUs. So it’s, you know, it’s just a converted little space. Or you can also add it on to the side.
01:53:06:23 – 01:53:08:08
Diva
If you’ve got sufficient setbacks.
01:53:08:08 – 01:53:10:18
Rod
You can buy it pre-made or you can or you or.
01:53:10:19 – 01:53:26:18
Diva
Yeah, but you can’t install those everywhere. They have to be. They have to have a certificate. So it has to be approved by the state of California. And only certain companies, those are approved right. But, you know, they’re you can do a lot of upside with those ADUs, like, let’s say you find a corner lot house.
01:53:26:20 – 01:53:50:01
Diva
And it has like quite a bit of land in the sufficient setback. So you can build a little like Adu then you can do a junior Adu which is just you provide like you know basic necessities. So you can actually I’d like three units on two will not. Yeah. But going to the city, that’s the headache because it’s, you know, it’s just very difficult to deal with the people at the city because they don’t know.
01:53:50:06 – 01:54:07:07
Rod
Well, it’s they’re overregulated and they don’t care. I mean, my God, it’s so painful when you go in and try to talk to an administrative person in any city or county government, like, they don’t they don’t give a shit. They’re not going to get fired. They can be useless. And. Yeah, yeah, and there’s a lot of corruption as well.
01:54:07:07 – 01:54:27:20
Rod
I give you an example. My ex, has a, rental that she’s she was her house she lived in when we met five, 15, 16 years ago. And I just helped her get it, fixed up so she could sell it because it was really run down, but, she had, last tenant had the had an inspector come in, city inspector, and he just tore it apart.
01:54:27:20 – 01:54:44:16
Rod
I mean, made her fix all this crap. I mean, literally $50,000 worth of stuff. And then what was fascinating was the inspector owned a plumbing company, which, of course, was available to help her fix all the issues that he found. Okay. It’s such.
01:54:44:16 – 01:54:45:10
Diva
A so he did it on.
01:54:45:10 – 01:54:46:27
Rod
Purpose. Oh, it’s a scam. It’s such.
01:54:46:27 – 01:54:49:14
Diva
A scam. Yeah, yeah. Well, she. What was.
01:54:49:14 – 01:54:57:27
Rod
She. It’s it’s done now. I sent my maintenance guy here. We got a full time maintenance guy here at my compound, and he spent. He spent a few weeks up there getting it turned up. Oh, good. Yeah. But what a.
01:54:58:01 – 01:55:13:27
Diva
Yeah. Because if you don’t have people in your network, man, they can. Yeah. You can lose your business. I mean, yeah, it’s just crazy, but, yeah, it’s just, you know, those 80 use, it could be profitable. Yeah, but it’s just a lot of work. And then you got to take into consideration the time value of money. Right.
01:55:13:27 – 01:55:18:13
Diva
How long is it going to take you to build that Adu. And how when are you going to recoup that money?
01:55:18:13 – 01:55:39:19
Rod
Sure, sure. Absolutely. You know, when we when we do value add on a, on an apartment complex, we try to see a 36 month payback. So, you know, if, if we’re going to spend $3,600, we want to see $100 NOI increase. You know, bottom line, increase into the net income. Now, when we go higher than that, sure.
01:55:39:19 – 01:55:40:27
Rod
We go as many as much as you’re.
01:55:40:27 – 01:55:42:01
Diva
Saying in 36 months.
01:55:42:01 – 01:55:56:21
Rod
Payback. Yes. Yeah. So. So, you know, if we if we’re going to, you know, spend, like I say, whatever we spend, we’d like to try to get it back in 30. Obviously, we can get it less than that. That’s ideal. But, you know, we’ll go to five years if we have to.
01:55:56:21 – 01:55:58:16
Diva
But are you seeing that, though? Yeah.
01:55:58:20 – 01:56:13:11
Rod
Oh, yeah, we’ve done that. Yeah. Many times. But there are, there are a lot of things that don’t cost a lot of money that can be immediate payback. So I’ll give you an example. I give this example sometimes I had a 296 unit in San Antonio, a mile away from the one I was just telling you about.
01:56:13:14 – 01:56:40:21
Rod
And we painted numbers on the parking spaces, and we told the tenants, hey, and you can reserve your own parking space. It’s 25 bucks a month. First come, first serve, and you can park right in front of your unit. We 100 people take it well, back then that property was a 4K. Okay. And so that 2500 a month, or 30,000 a year was a $750,000 increase in value.
01:56:40:21 – 01:56:50:28
Rod
And we didn’t even paint the spots. We have a towing company paint them to get the towing contract there. So it didn’t cost us any as that was an infinite return there. But yeah. Yes. But that
01:56:51:00 – 01:57:05:23
Diva
Yeah, there’s some, some ways you can really add value to some of these multifamily. That’s why I love multifamily so much. Right. I was doing some properties, here in Florida. And something that caught my eye is that they had a car wash there. Really? Car wash and car wash inside the complex.
01:57:05:25 – 01:57:07:13
Rod
That’s a nicer complex than. Yeah.
01:57:07:17 – 01:57:11:02
Diva
Okay. What do you say? It was nicer, but they had a car wash. I thought that was a cool amenity.
01:57:11:05 – 01:57:15:29
Rod
Yeah, sure. Absolutely. A smart guy, coin operated thing.
01:57:16:01 – 01:57:20:10
Diva
I’m not sure. I didn’t get down to look at it. Okay? I mean, it probably was if you wanted to wash your car.
01:57:20:11 – 01:57:37:25
Rod
Sure, because that goes right to the bottom line. Anything like that goes right to the bottom line. You know? Yeah, there’s a lot of little things you can do put in storage. You know, you know, any decrease expenses as well. A lot of times, you know, a lot of these assets, you’ll have what’s called vendor creep.
01:57:37:25 – 01:57:47:23
Rod
Wherever you’re the vendor amounts go up and you put it out to bid and you get great reductions if you do that. Right. But, so what’s next for you?
01:57:47:25 – 01:58:11:20
Diva
I’m focusing on larger acquisitions. So maybe like in the 200, 300 unit sales range I mean I’ll still we’ll still look at deals that are, smaller. Yeah. Smaller, you know, value add boots on the ground. Right. But yeah I think getting into larger acquisitions maybe go into assisted living. Yeah. Kind of pitch that to my brother, you know, like, let’s scale the business.
01:58:11:27 – 01:58:15:29
Rod
Well, he. Yeah, if you and he do it together, he’s got the he’s got the framework.
01:58:16:03 – 01:58:18:20
Diva
Yeah, yeah. But, we’ll we’ll see.
01:58:18:23 – 01:58:20:11
Rod
Do it without killing each other, right?
01:58:20:13 – 01:58:23:05
Diva
Yeah. He was saying it’s kind of tough.
01:58:23:08 – 01:58:41:23
Rod
I worked with my brothers for years, you know, buying these houses. But it was real painful when we lost it all in oh eight, nine. I remember I tell you a story about that. So, I, I have, in fact, it’s on a vision board up here, but, I have a gratitude board. I had a picture, and I gave my brother a Rolex.
01:58:41:23 – 01:58:53:28
Rod
I gave him, I got a c job, master Rolexes, and. Yeah. And, I found out that he had this, that he sold his when the market crashed because he was so worried about money, and I felt terrible, so I gave. I gave him mine.
01:58:54:04 – 01:58:55:14
Diva
Did you tell you that he sold it?
01:58:55:16 – 01:59:07:08
Rod
Well, I asked him. Where was it? He said he he sold it. And so I gave it. I gave him mine. So they bought two at that time. And so literally just about 3 or 4 years ago, I buy myself another one. Of course, it was three times as much, but, yeah, that’s
01:59:07:16 – 01:59:10:16
Diva
Yeah, I know, but I bet you you feel bad when he told you that he saw.
01:59:10:16 – 01:59:24:17
Rod
No, no. So you are obviously very driven. Yeah. And and I’ve been impressed by that, by the way. And that’s kind of why I follow you on social media, because I, I’ve been very impressed with that. And so number one, where does that drive come from?
01:59:24:19 – 01:59:38:04
Diva
I think just growing up in a scarcity mindset, parents, you know, very poor. Okay. And, you know, shrinking your belief, I had to shut all those noises out to be able to shift my mindset.
01:59:38:09 – 01:59:46:23
Rod
Did you follow any, any, any gurus in that space? You know, I spent I spent 22 years with Tony in and and so that’s where I kind of got a lot of that information.
01:59:46:23 – 02:00:09:19
Diva
No, I think it was just, you know, I, I younger I was bullied so for being overweight and, so it was really it was a really tough childhood. And I think that just wanted to do a change and okay. And it just happened. Yeah. Good for you because that’s why I’m doing.
02:00:09:21 – 02:00:26:24
Rod
Good for you now. Same very similar story. I got my ass kicked, I got thrown into school, didn’t speak English, found out what bullies were. My mom sent me school. Those wooden shoes back there. And they and the later hoes in the leather shorts. So I got my ass kicked again, you know, because she thought she should. Proud Dutch woman.
02:00:26:24 – 02:00:40:19
Rod
Thought it’d be great to send me to school like that. And, God bullies. That was crack cocaine for the bullies. And then, you know, and then the boys would chase me home as you chase them off with a flyswatter. So next day, ass beaten. You know me, I came up with this belief system. I wasn’t good enough, you know.
02:00:40:19 – 02:00:42:04
Rod
And that’s a driver.
02:00:42:04 – 02:01:11:12
Diva
You know it is. You got a pretty good. It gives you good enough. It gives you fuel. Oh, yeah. Even going into the TV industry because TV industry ad when you’re on camera for 10 pounds. Yeah. So I’ve gotten like 20 doors shut in my face, like I remember vividly one time I was going interning at a station out in, in California, and, the news director, whoever he was, the owner of the building said we want to use her voice over, which was mine, but we want to use this girl’s name image.
02:01:11:12 – 02:01:25:22
Diva
She looked like a Barbie. She was skinny, and, you know that her. Yeah. That hurt. So then I went that day, I went into my car and I just started crying, like, just crying. But I think that gave me feel, you know? Sure, that it gives you a lot of fuel. I also read a lot of books.
02:01:25:22 – 02:01:30:18
Diva
Yeah. What’s your favorite book for, like, drive? Yeah.
02:01:30:18 – 02:01:31:18
Rod
Drive mindset.
02:01:31:25 – 02:01:36:29
Diva
Anyway, this guy is. He’s kind of crazy, but, I really love David Goggins. Oh, yeah. This is.
02:01:37:00 – 02:01:39:11
Rod
His. Yeah, yeah, he’s extreme.
02:01:39:13 – 02:01:51:14
Diva
Yeah. He’s extreme. He’s on another level. But I really like his mindset. Like, yeah, for sure. You could really turn off that switch in one second. Like if you have these negative thoughts in your head you could. It’s called the one second rule. So like let’s say in the morning you don’t want to get up to go.
02:01:51:14 – 02:01:55:03
Diva
Right. You just, you know, I shut the f up and just get up and go, right?
02:01:55:05 – 02:01:57:09
Rod
So you you turn off the voices.
02:01:57:13 – 02:02:07:14
Diva
Yeah. Yeah. I think that’s very powerful. So once you start like he says it in his book, once you start collecting the mind, you just become very and stop and oh interesting.
02:02:07:19 – 02:02:15:27
Rod
It closing I like that. I like that a lot. Yeah I have to do that to get my cold plunge. Honestly, I can’t think about it. I just do it. I can’t think about it. If I think about it, I won’t do it.
02:02:16:00 – 02:02:23:09
Diva
Yeah, because then you’ll have those oh my gosh, it’s cold. Right? You start getting all these pieces in your head. Right. So if you started shut it off and just do it then.
02:02:23:16 – 02:02:24:13
Rod
I love it, I love.
02:02:24:13 – 02:02:31:11
Diva
It. You’ll never get used to coal plants. Yeah. No, but growing up, I think I’ve been cold plunging since I was little because we didn’t have hot water.
02:02:31:11 – 02:02:32:02
Rod
Oh. No kidding.
02:02:32:02 – 02:02:36:07
Diva
Yeah, so I just had to take cold showers. Hey, I like I’ve been cold plunging since I was little. Oh.
02:02:36:07 – 02:02:41:16
Rod
That’s funny. Wow. So, any other books that you like?
02:02:41:19 – 02:02:50:03
Diva
I love, there’s one in Spanish that I like. It’s called. It’s by Daniel Hobbes. It’s like a very spiritual book.
02:02:50:05 – 02:02:51:17
Rod
You see my library downstairs?
02:02:51:22 – 02:02:52:12
Diva
I saw that.
02:02:52:12 – 02:02:56:27
Rod
I’ve got a bunch of bunch of spiritual and self-improvement and business books. And which.
02:02:56:27 – 02:02:58:19
Diva
One’s your. What’s a favorite book?
02:02:58:19 – 02:03:06:18
Rod
Well, I’ve. I’ve given away probably 10,000 copies of thinking Real Rich. Yeah. I’m not exaggerating.
02:03:06:21 – 02:03:07:23
Diva
Yeah, yeah.
02:03:07:26 – 02:03:29:22
Rod
Probably easily 10,000 copies. And, yeah. So that’s probably my my favorite. I talk about it at my boot camp just because it’s, it’s it’s it’s like the precursor to all self-improvement books. I mean, that’s really that was like one of the first ones, if not the first one. But, yeah. No, I, I my love language is gifts.
02:03:29:25 – 02:03:36:08
Rod
And I was blessed to have the author of the five Love languages on the show because he doesn’t interview that much. But, that’s a book that I give away a lot.
02:03:36:08 – 02:03:38:03
Diva
And I actually read the book.
02:03:38:06 – 02:03:52:19
Rod
Yeah, it’s a good one. Yeah. And. Hello. Ron’s miracle morning. I’ve had him on the show a couple times, in the slight edge. But those decisions you make every day, that project your life up or down. So my warriors, my coaching students get a lot of books from me.
02:03:52:21 – 02:03:56:14
Diva
It’s the best gift. I think we all are. Looked at so much. Yeah, yeah, yeah.
02:03:56:17 – 02:04:09:10
Rod
But, Well, listen, I really appreciate you coming on the show. This had a real treat. I’m so glad you were in Florida and were able to do this. It’s not too convenient just to fly over for this, but you spend some time here and and.
02:04:09:13 – 02:04:15:24
Diva
It’s hard to stay. I think, news.com gets to pick up and learn from, the governor over here so he can run the state.
02:04:15:25 – 02:04:26:25
Rod
He’s a kick ass governor. Yeah, new. So new scum all over you. I’m sorry I missed that second. That’s funny. Yeah. No, DeSantis is fantastic. I mean, he’s so. He is so good. You know, you.
02:04:26:25 – 02:04:29:25
Diva
Guys are getting rid of, property taxes. I think I read something.
02:04:29:26 – 02:04:32:27
Rod
Where he’s, you know, who knows what will happen. And I wouldn’t.
02:04:32:29 – 02:04:33:22
Diva
Start buying real estate.
02:04:33:22 – 02:04:38:18
Rod
And wouldn’t that be something? Yeah. And we still have high insurance, though, because we do have hurricanes. So, you know, I.
02:04:38:21 – 02:04:41:25
Diva
Yeah, but I don’t think it can be worse where California think it could be worse in California.
02:04:41:27 – 02:04:45:17
Rod
No I don’t I really don’t no, no definitely not. I mean.
02:04:45:23 – 02:04:49:18
Diva
One question for you were Marcus do you think are great markets.
02:04:49:21 – 02:05:07:25
Rod
Well, I’ll tell you where I have assets. I love Texas, although it’s it’s been, you know, too much absorption there for sure. Too many, too many units. But but it’ll it’ll come back. People love Texas. I love Florida, of course, but you can deal with the insurance, the Carolinas. So I’ve got assets and all those, Ohio, Indian.
02:05:07:25 – 02:05:19:25
Rod
Annapolis, Indiana. Parts of Georgia, not really Atlanta proper, but outside of Atlanta, I like, the eastern half of Tennessee.
02:05:19:27 – 02:05:20:19
Diva
Eastern.
02:05:20:21 – 02:05:36:21
Rod
Yes. I don’t I won’t go to the Memphis side, but the other side, we talked about that. But but Nashville, I’ve got a beautiful asset in Nashville. I like that market a lot. Same issue though. A lot of units come online. So it’s got to it’s got to stabilize a little bit. But it’s going to keep going. It’s going to keep going up.
02:05:36:25 – 02:05:39:22
Rod
So those are those are probably some of my favorites. Yeah.
02:05:39:24 – 02:05:43:08
Diva
Not California. No.
02:05:43:10 – 02:05:58:29
Rod
I dog I dog I dog the blue States I really do on my show I just do. It’s like why why would you go through that brain damage I’m sorry I mean, we just talked about it. It’s just life’s too short for that. There’s enough low hanging fruit. Yeah. And you see how much nicer it would be to have an asset here in Florida or Texas or.
02:05:59:02 – 02:06:10:03
Rod
I mean, you know. Yeah. You know, they’re they’re they’re they’re not landlord averse. They’re not overregulated. They’re not overtaxed. They’re not over burst basically. Yeah. You know, life’s too short for that stuff.
02:06:10:06 – 02:06:14:20
Diva
It is. It is. Yeah. I think that’s why we’re starting to look at acquisitions out of state. Yeah, I hope so.
02:06:14:20 – 02:06:29:08
Rod
I mean that’s the beautiful thing about multifamily is you can buy assets in different states. And I will say this to you though now, and I discovered this because I’m dealing with an ex partner that did some illegal shit and ran some properties that I’m involved in into the ground. And, and it’s been a nightmare with this guy.
02:06:29:08 – 02:06:51:27
Rod
And I teach this stuff and I still get caught up with this idiot, but but, one thing I discovered, because I stepped into asset managers properties for a while, was that the most successful operators I’ve seen in this business are geographically specific. They they pick a market and they own that market. And, it’s not the greatest idea to be spread out all over.
02:06:52:00 – 02:07:09:29
Rod
It’s much better if you can pick a market and stick with that market and then ultimately vertically integrate and have your own management. That’s when you have the best run, right? The best run situations that I’ve seen and just, you know, and and I’ve, I’ve had some really bad experiences with third party property management companies.
02:07:09:29 – 02:07:10:11
Diva
Oh, I can.
02:07:10:11 – 02:07:27:08
Rod
Imagine we might be litigating against one. I’m pretty sure we will be, and, so that’s, that’s, unfortunate. But, you know, I think wherever you can vertically integrate, you’re better off because no one’s going to do it better than you are, right?
02:07:27:09 – 02:07:27:19
Diva
Yeah.
02:07:27:19 – 02:07:29:18
Rod
And, you just, you know.
02:07:29:20 – 02:07:31:15
Diva
That means I have to leave California.
02:07:31:18 – 02:07:33:09
Rod
Well, I don’t think it’d be the end of the world.
02:07:33:12 – 02:07:34:14
Diva
Yeah. That’s true.
02:07:34:17 – 02:07:39:25
Rod
Just saying. But anyway, I. I really appreciate you coming on diva. It’s been a real treat.
02:07:39:25 – 02:07:40:23
Diva
And thank you. Thank you.
02:07:40:28 – 02:07:45:17
Rod
Yeah, yeah. So, looking forward to seeing where you’re at a couple of years from now.
02:07:45:18 – 02:07:47:03
Diva
I appreciate that. Thank you so much.
