The Single Decision That Added $3.8 Million INCREASE In Value

How Construction Expertise Drives Value-Add Multifamily Investing

In this episode of Multifamily Rock Stars, Derek Hogarty shares how his decades in construction created a powerful edge in value-add multifamily investing. He explains that understanding renovations, materials, and operational improvements allows investors to underwrite more accurately, execute faster, and protect margins. Rather than relying on market appreciation alone, Derek focuses on controlling outcomes through smart renovations and hands-on execution.

He discusses how his background helped him identify a rare fractured condo deal that most investors overlooked. By controlling the HOA and implementing immediate operational improvements, his team rapidly increased rents and forced significant appreciation in a short timeframe. This deal alone generated millions in added value, demonstrating the power of combining construction knowledge with multifamily investing strategy.

Finding Deals Others Miss

Derek emphasizes the importance of long-term broker relationships and consistent follow-up. He planted seeds with brokers for years before landing his breakthrough opportunities. His story reinforces that deal flow often comes from persistence, trust, and being known as someone who can execute, especially on complex or unconventional assets.

He also highlights the importance of underwriting conservatively while remaining flexible during unexpected challenges such as financing delays or lender withdrawals. By surrounding himself with experienced partners and staying solution-oriented, Derek consistently turned setbacks into momentum.

Discipline, Mindset, and Scaling Safely

Beyond deals, Derek shares his daily discipline habits that fuel consistent growth. His structured morning routine, daily action lists, and focus on accountability create momentum and clarity. He believes success is built through small, consistent actions rather than sporadic bursts of effort.

Derek also stresses the importance of scaling responsibly. Rather than chasing rapid growth at all costs, he prioritizes operational stability, conservative projections, and strong partnerships. This approach allows him to grow confidently while protecting investor capital and long-term performance.

About Derek Hogarty

Derek Hogarty is a seasoned construction entrepreneur with over 25 years of experience, including founding multiple award-winning construction firms. He pivoted into multifamily investing by leveraging his construction expertise to drive value-add strategies, rapidly scaling his portfolio through disciplined underwriting, strong broker relationships, and hands-on execution. Today, he continues to acquire and operate multifamily assets while mentoring others through real-world experience and proven systems.

If you want to hear the full conversation and detailed insights, watch the podcast video or read the complete transcript below.

Value-add Multifamily Investing Through Construction Expertise FAQ 

What is value-add multifamily investing through construction expertise?
Value-add multifamily investing through construction expertise is a strategy where investors use renovation knowledge and project management skills to improve apartment properties and increase net operating income. Instead of relying solely on market appreciation, investors actively create value through physical and operational improvements.

Why is construction expertise important in value-add multifamily investing?
Construction expertise allows investors to accurately scope renovations, control costs, and avoid surprises during execution. This reduces risk, improves underwriting accuracy, and protects profit margins throughout the project lifecycle.

How does construction expertise improve underwriting for value-add multifamily deals?
Investors with construction experience can estimate renovation costs more precisely, identify hidden issues, and create realistic timelines. This leads to more conservative projections and stronger downside protection in underwriting models.

What types of renovations are most effective in value-add multifamily investing?
Common renovations include unit upgrades, exterior improvements, amenity enhancements, and operational system upgrades. These improvements increase rents, reduce expenses, and enhance tenant satisfaction, directly impacting property value.

How does construction expertise help investors find overlooked deals?
Investors with construction knowledge can evaluate complex or distressed properties that others avoid. This allows them to uncover mispriced opportunities, reposition assets, and unlock value that less experienced investors may miss.

What risks exist in value-add multifamily investing through construction?
Risks include renovation overruns, timeline delays, contractor performance issues, and permitting challenges. These risks are mitigated through conservative budgeting, strong project management, and thorough due diligence.

How long does value-add multifamily investing through construction typically take?
Most projects take three to seven years from acquisition to exit. Renovations and operational improvements usually occur in the early years, followed by stabilization and value optimization before sale or refinance.

Is value-add multifamily investing through construction suitable for passive investors?
Yes, passive investors can participate through syndications led by experienced operators with construction expertise. This allows investors to benefit from value creation strategies without managing projects directly.

How does construction-driven value-add investing compare to traditional buy-and-hold strategies?
Construction-driven value-add investing focuses on forced appreciation through active improvements, while buy-and-hold strategies rely primarily on market growth. Value-add strategies offer greater control over returns and faster equity creation.

What skills are most important for success in construction-based value-add multifamily investing?
Key skills include project management, budgeting, contractor oversight, underwriting, and operational execution. Strong communication and disciplined decision-making also play a critical role in long-term success.

Disclaimer: This summary was written with the help of AI and reviewed by Rod’s Team.

00:00:28:23 – 00:00:47:09
Rod Khleif
Welcome back to multifamily Rock stars. So this as you guys know, this is where we interview people that are just flat out crushing it in this business. And we show you the inside scoop, how multifamily investors are creating, you know, incredible, massive success in their early in their businesses and in their lives. And I’ve got my co-host Mark Nagy on the call.

00:00:47:09 – 00:01:06:05
Rod Khleif
Mark what’s up brother. Happy to be here for another one rod. Yes, sir. Let’s make it happen. So we’ve got, an awesome guy on the show today. His name is Derek Hogarty. He and Derek’s got a very interesting background, and I don’t want to steal his thunder, but, you know, he’s done a lot of construction stuff, and I actually want him to tell you because some of it’s kind of cool.

00:01:06:07 – 00:01:09:05
Rod Khleif
So welcome to the show, Derek. I’m glad you’re here, bud.

00:01:09:07 – 00:01:30:10
Mark Nagy
It’s a pleasure to be here. I’m honored to be here. The humbled. All of the above. What you’ve created for everybody to learn from is is really mind boggling. I’ve been in lifelong learning belief system for God, and I’ve been 25 years in business now as a general contractor. And I’ve tried to stay ahead of that curve.

00:01:30:10 – 00:01:36:13
Mark Nagy
But yet what you’ve done in the multifamily market. Beats that. So I appreciate you having me.

00:01:36:15 – 00:01:53:19
Rod Khleif
Thank you, my friend. I appreciate you saying that. So it’s kind of you to say that, so why don’t you take a couple of minutes and talk about, you know, your journey, you know, some of the things, you know, that you’ve done, just, just maybe the highlights of your bio here, which is very interesting and particularly one of the things you worked on, which is kind of cool.

00:01:53:19 – 00:02:01:04
Rod Khleif
So if you could kind of tell us a little about who you are and then how how come you got into real estate and, and let’s start there.

00:02:01:06 – 00:02:28:06
Mark Nagy
No. Great. Two quick, two minutes, not even, went from framing homes, masonry, within the engineering school, one into engineering school. Got out the, as an assistant superintendent in the Big Dig. Everybody’s heard about that craziness in Boston. In 2000. No. Excuse me. God. And Sean, my age in 1996, I went to my.

00:02:28:08 – 00:02:46:07
Mark Nagy
And I still mentor, and he said, Derek, you said you don’t have any children, you’re not married. And in addition to my house and you can get your job back tomorrow. So I went into business at 26 years of age. I was very lucky to win several awards early in life when my ego worried about that stuff.

00:02:46:09 – 00:03:15:03
Mark Nagy
Like eastern Massachusetts, contractor of the year, blah blah blah. Fast forward 2005. I, sold the business and moved to Charleston, South Carolina. And my only three year stint in life in corporate America and, as, as a, you know, vice president of construction for a larger national firm that just wasn’t my cup of tea and had the pleasure, displeasure, honor, craziness to open up my business in 2008 here in Charleston.

00:03:15:05 – 00:03:32:21
Mark Nagy
So, I’ve been very lucky to act on referral ever since that day, so it has been a little funny. I joke about, you know, that my Yankee accent in the South, but yet acting on referrals. So, then it has been good. You know, it’s really not hard. Concept is do what you say in back up your words.

00:03:32:23 – 00:03:45:19
Rod Khleif
And I’ll tell you in the, in in the contracting space, that’s that’s not the norm. I’m just going to tell you so you know, it is that really you know, you’re being very humble. You’re very humble guy. But you’re you’re you’re so why real estate brother. Why.

00:03:45:21 – 00:04:14:11
Mark Nagy
Yeah. That’s I in 2019 I very quickly that I was trying to I was working in the job not on the business. And I really thought that I did go to another person’s, weekend away, in Cleveland area. And I didn’t take any massive action. I then started following you on Instagram and all the social media, and I aligned with you due to the fact that your story aligned with some of my values we’ve seen in the construction industry.

00:04:14:11 – 00:04:37:17
Mark Nagy
And and I give you big props all the time of you catapulting out of the valley and capturing everything you deserve again. So I truly became a warrior because of that story. True story. The bonus plan is meeting Eric and all the other great people in the warrior group. I mean, there’s so many like minded, cool, selfless, you know, to help the group as a whole.

00:04:37:17 – 00:04:57:03
Mark Nagy
People involved in that and even to digress as the one second in the process is I didn’t know how much it was to invest and be a warrior for like five because of how often they how like minded they wanted you to be and made sure you aligned with everybody else. As a warrior, I was like sold and like, how much?

00:04:57:03 – 00:04:57:15
Mark Nagy
Tell me.

00:04:57:15 – 00:05:11:17
Rod Khleif
I got it. Yeah we do. We do have a little bit of an application process because we take it very seriously, you know, and I know that you were at our last warrior event. Correct me if I’m wrong. You were at the previous one in Sarasota.

00:05:11:18 – 00:05:13:05
Mark Nagy
Previous. Yeah. Yeah, yeah.

00:05:13:05 – 00:05:29:03
Rod Khleif
You you weren’t you weren’t at the one we just had this weekend. I know, but, you know, you got to see just how incredible the ecosystem is. And now you’ve been at you’ve been in it for a while, and, and, you see it, it, we’ve been really blessed. The caliber of the people is just extraordinary.

00:05:29:03 – 00:05:30:19
Rod Khleif
I’m sure you agree. Yes.

00:05:30:21 – 00:05:53:00
Mark Nagy
Very much so. And I don’t want to leave anybody out, but, I mean, there’s, at least a dozen people, so 20 people that I could refer to right now, that I could call, and they take my call and, and and even I even live in the same town as Jonathan and Sam Wells. And we had lunch sometimes and Ian Schmidt and, I’ve got another fellow warrior coming down from Jersey, to look at an asset.

00:05:53:00 – 00:06:07:06
Mark Nagy
So he wants to believe in what he’s going to capital raise for. So it’s really been a great, you know, wrapping your wrapping yourself with the, the like minded and, and it doesn’t matter what profession or and we just want for the good of the team.

00:06:07:08 – 00:06:36:08
Rod Khleif
Oh that’s that’s that’s it. Yeah. That’s it. And now you joined really in June of last year. So, not even quite a year yet. And so you’re, you’re already in, what is it, a, 132 door or. No, 132 under contract, and you’re in. How many? Under five. Yeah, 105, 105 already. And I know, you know, we had expressed, potential interest in that 88 unit you bought, which I know is a screaming deal.

00:06:36:08 – 00:06:54:20
Rod Khleif
You’re killing it. And I’m actually kicking myself a little bit, for not being more influential on my team. But my team is a democracy, so I kind of go with what they all agree on, and, but, I will, and I did make sure I make sure to rub it in their nose the next time we have a meeting about how well you’re doing with that asset.

00:06:54:22 – 00:07:02:11
Derek Hogarty
I love to hear about this deal because you’ve mentioned it a couple of times. Like, how do you find it? Why is it such a good deal? Tell us about this first deal. Yeah.

00:07:02:13 – 00:07:03:12
Rod Khleif
Agreed. Let’s do.

00:07:03:12 – 00:07:23:23
Mark Nagy
It. Okay. Early in September, I did land 16 that I closed on, which got my feet wet. And then they quickly learned that you put the same effort into closing 88 as it takes to do the 16. I had, I’ve been planting seeds since 2020 with brokers, and a broker brought us this fractured. You’re not going to like this run.

00:07:24:00 – 00:07:27:02
Mark Nagy
Fractured HOA condo deal. No.

00:07:27:02 – 00:07:29:10
Rod Khleif
I remember it, buddy. I mean, I remember it well.

00:07:29:10 – 00:07:55:16
Mark Nagy
And what what made it a unicorn? Is that the owner of all 88 unit? Well, actually 87. And we bought one more to become 51% of this. Actually, put every one in a month to month agreement. So he didn’t gain any big, balance due to Covid rules. That allowed us to introduce our the one third of our business model unilaterally on the first month of purchasing this product.

00:07:55:18 – 00:08:20:23
Mark Nagy
This person did not have any debt service, so he was well below market. And we bought an average to a price of about $715 a door for a two bedroom, one bath product. And the rent, the rent, the rent, the 715 a door. Yeah, right. We are now getting 1150 and there was multiple backups per door at each turn, with a $435 plus or minus on average, spread.

00:08:21:04 – 00:08:26:20
Mark Nagy
And then times 88 times 12 is a nice appreciation in one calendar year.

00:08:26:22 – 00:08:29:13
Rod Khleif
Fantastic. What is that? What is that?

00:08:29:13 – 00:08:32:16
Mark Nagy
In millions 3.8, sir.

00:08:32:18 – 00:08:36:08
Rod Khleif
3.8 million increase in value. And we put for you.

00:08:36:11 – 00:08:40:00
Mark Nagy
Right. Six. We paid 4.635.

00:08:40:02 – 00:08:40:22
Rod Khleif
Good for you, man.

00:08:40:22 – 00:08:42:18
Mark Nagy
When we had for you. Yeah, yeah.

00:08:42:20 – 00:09:00:20
Rod Khleif
I think it was the fractured condo that scared my team. But you know and then I saw recently you closed on that final unit because guys, you know, when you own 51% of a condo complex, you own the whole HOA. So you dictate what happens, what gets spent, what doesn’t get spent, how things are handled, which is what’s critical.

00:09:00:22 – 00:09:17:20
Rod Khleif
And with with a condo like that, you’re handling all the exterior maintenance. And so, you know, it’s not like a situation like you might buy a duplex in the middle of a bunch of duplexes. That can be a bad situation, because if the other owners aren’t taking care of their units, it’s going to reflect badly on yours.

00:09:17:20 – 00:09:41:11
Rod Khleif
But in your situation, because you control the HOA, you control the exterior appearance of that asset and be the wiser. So it’s really a great situation. So kudos to you, brother. Congratulations. You frickin deserve it. I know you worked your ass off for that deal. I saw. I saw you post pictures of you with your truck filled with parts of materials for it, you know, in the warrior group, which is awesome.

00:09:41:11 – 00:09:46:23
Rod Khleif
That is true. And it’s so good for it. Good for you. So so I’m the, you know, mover.

00:09:47:03 – 00:09:48:10
Mark Nagy
Is what I call myself.

00:09:48:12 – 00:10:06:16
Rod Khleif
Oh, I like that. Oh, I like that a lot. So, you know, I know that you, you partnered with your coach, Eric, on that deal, and he’s he’s a partner in that, you KP and that. And you used, the guy we love for financing. Tyler. Yes. For the financing, but, you know, so.

00:10:06:16 – 00:10:10:11
Rod Khleif
So you know what’s next, buddy? What are you looking at?

00:10:10:13 – 00:10:44:02
Mark Nagy
We have you be slapping my wrists right now, but how much cash we have, released, due to some delays and closings. But we have a nother 64 unit, within ten minutes of Columbia that. This is almost a very lucky, that not only has the rent gone up almost 50% since we’ve had this under contract, but, you know, we they are implementing the, proforma with $17 more for a door than we had in at pro forma, had a significant setback, a 75 day delay in regard to banking.

00:10:44:04 – 00:10:59:22
Mark Nagy
And then all of a sudden, if you can believe it, it was a California bank. So they literally withdrew last week. We then, with the excuse of not it wasn’t in their, their region. I’m like, who put the address on the term sheet. Yeah.

00:11:00:03 – 00:11:01:22
Rod Khleif
Right, right, right.

00:11:02:01 – 00:11:33:03
Mark Nagy
Enter. And maybe, lo and behold, that same fellow professional, took us under his wing and will be closing that for us. And, and rectifying and turning the negative into a positive. And then we have another 48 units that has always been under his care. And Florence, and then I just submitted a letter of intent for ten units, five duplexes in, North Charleston, not too far next to the first 20 that, had, under agreement, but close on in September.

00:11:33:05 – 00:11:38:01
Rod Khleif
Sam. Man, you’re not letting any dust settle, brother. Very impressive.

00:11:38:03 – 00:11:40:02
Derek Hogarty
Yeah, you’re charging ahead.

00:11:40:04 – 00:11:59:13
Mark Nagy
Well, I, the new truth be told, I am a new, woody empty nester, so I have time on my hands, unlike a lot of other people in the world. So to give credit where credit’s due, you know, I’m very lucky to have my children, you know, be thriving in other professions. And if they didn’t want to go down this contracting route, which I don’t blame them.

00:11:59:15 – 00:12:13:04
Mark Nagy
But yet, being an empty nester and thoroughly enjoying what I do, I’m actually in the midst of trying to find a, general manager for the construction league so I can dive 100% into multifamily.

00:12:13:06 – 00:12:25:15
Rod Khleif
Yeah, that’s really smart. That’s really smart. I’d encourage you to give them a little piece of the action so they have ownership, you know, and they’re incentivized to treat it like a I’m sure you’re already going to do that. Treat it like it’s theirs. But, good for you.

00:12:25:17 – 00:12:26:13
Mark Nagy
Yeah. Thank you sir.

00:12:26:15 – 00:12:43:08
Derek Hogarty
So how are you feeling about, obviously so many people are hesitant, fearful about the market, the way things are going. Obviously, one of the, you know, big banks in California just closed down and that’s going to hurt inflation. The Fed’s trying to help inflation, all kinds of crazy stuff in the world and the market. The real estate market right now.

00:12:43:10 – 00:12:52:02
Derek Hogarty
Are you excited about where the multifamily market’s going a little nervous both. What what’s what’s your feeling on things in the next year or two.

00:12:52:04 – 00:13:22:10
Mark Nagy
Well, just like anybody in business and maybe being above the 50 year mark, you know what you know, and then you admit what you don’t know. And so when you come to the conclusion of admitting what you don’t know, you try to surround yourself with the person that there are people that do. So with that said, you know, very, very lucky to align with Eric, very any warrior, I mean, there’s that there’s even even Canadian friends, in the warrior group are assisting me that some input like that rally and stuff like that.

00:13:22:14 – 00:13:43:03
Mark Nagy
Rasool I mean, there’s so many references that I can call and, and and just, you know, even Damian is, up in Jersey, there’s, I mean, you can go on and on. And the California friends, so they’re in and they’re in the trenches of it. So I’ve been very lucky to, do my underwriting. I am a numbers person.

00:13:43:03 – 00:14:01:03
Mark Nagy
I do enjoy that aspect. So, I will bring it all the way through. Letter of intent all the way just to form a GP split. And, Eric, I’ll never forget it. In the heat of the closing of the eight, he made me watch the 90 minute video to do my own GP split versus he teaches me how to fish.

00:14:01:03 – 00:14:04:21
Mark Nagy
He doesn’t give me the fish. Yeah. So he.

00:14:04:21 – 00:14:22:15
Rod Khleif
Yeah, he’s he’s an excellent he’s an excellent coach and a great guy. He was he was able to make this last warrior event as well. And we’ve, we’ve got a lot of excellent coaches. And that’s the thing. We don’t have professional coaches. We have operators that that decide they want to help other people. And they take, you know, a handful of clients apiece and coach them.

00:14:22:15 – 00:14:33:23
Rod Khleif
And that’s my coach. You bet. That’s my word. That’s my warrior program. Exactly. They give back and and so they’re not you know, they typically have at least a thousand units themselves. And and you got a good one, no question.

00:14:34:02 – 00:14:54:15
Mark Nagy
You know, my goal is 500 this year to be, transparent and I doesn’t my daily mantras, but I don’t grow too big too quick. You know, that’s one day, I promise Nate team that if it if it has to be 300. Okay, you know, for 400. Okay. But, I just will. I will always run the preface of Under-Promise.

00:14:54:15 – 00:14:56:20
Mark Nagy
Overdeliver versus the opposite.

00:14:56:22 – 00:15:14:13
Rod Khleif
Yeah. No, that’s smart, that’s smart. So let me ask you this. You know, you know that we get a lot of aspiring real estate investors on this show like you were before we met. And, and some of them know they need to make a move. They haven’t making a move yet. They need to learn something. If maybe if it’s not even this business, it’s something.

00:15:14:13 – 00:15:31:22
Rod Khleif
Because I really think incredible opportunity is coming in our space and really economically all over and all spaces, buying businesses, buying other asset classes, even single family, although I don’t push that. But, you know, for, for some of that hasn’t taken action yet, you know, speak to them for a moment.

00:15:31:24 – 00:16:01:12
Mark Nagy
And I didn’t either for almost two years, at least from 2019 to 2021. I made excuses, oh, I’m a single dad. Oh, I’m going to busier general contracting firm, I’m doing fine, etc., etc.. It’s it’s excuses. I, I would tell somebody to pick a date, an important date. I was at an event where someone chose their anniversary as they’re going to quit their W2 job so they could celebrate their quitting their W2 job and their anniversary simultaneously that night.

00:16:01:18 – 00:16:11:18
Mark Nagy
And then you get to read it. I have daily lunches that I put on a piece of paper, and they need to visit that on a I have a morning regiment, but I in my morning regiment I would.

00:16:11:20 – 00:16:17:07
Rod Khleif
Define I’m not going to I’m not going to I’m going to I’m not going to let that go. But give us your morning regiment, brother.

00:16:17:09 – 00:16:39:16
Mark Nagy
Oh boy. So it started off based on the 5 a.m. club move, plan, grow, get up and exercise. Then you plan your day. I do a power lessons. I did 75 hard 3 to 4 times now. And so I created the top eight priorities that, of items that you need that I need to achieve that day selfishly from the for the good of the firm or the good of Derek.

00:16:39:18 – 00:17:02:21
Mark Nagy
And it gives you a good visual to refer to once the world tries to knock you off, you know, balance again, it also gives you a little dopamine hits when you’re checking off the little list, like, oh, little wins on each day. And then the Grove is either meditation, reading. You know, I read a bunch about energy and frequency and, you know, stuff like that, and, you know, the power of intention isn’t that.

00:17:02:23 – 00:17:05:10
Mark Nagy
I’m reading it a second time now by doctor I.

00:17:05:11 – 00:17:29:01
Rod Khleif
I literally just talked about that this morning. It’s so crazy. I just recorded an on your power clip on connection and I talked about vibrating at different frequencies. Literally absolute. It’s really it’s crazy that that that you said that because, you know, I really believe we vibrated different energies. And as you self-actualize and you look in the mirror and you become a better person, your energy levels increase and people fall away and new people come into your life.

00:17:29:01 – 00:17:44:23
Rod Khleif
Because I think people that vibrate at the same energies, attract. And I know some of you are like, oh good God, if some of you are like, get up, get out of the fufu land, get back to real estate. Well, you know, there’s a reason that people that are successful talk about this stuff. So don’t don’t discount it.

00:17:44:23 – 00:17:45:14
Rod Khleif
Trust me.

00:17:45:19 – 00:17:47:22
Mark Nagy
Absolutely, absolutely.

00:17:47:24 – 00:18:04:17
Derek Hogarty
I was just going to say the power list is something I’ve done, which is, you know, for people listening, the powerless. It’s by Andy, for Sella, it’s a list of actual action items that you can do that you want to do for that day. It’s not a list of goals per se. It’s things you can physically go and do, which is why it’s so powerful.

00:18:04:19 – 00:18:07:15
Derek Hogarty
That’s where he goes. He’s showing I’m on video right now.

00:18:07:17 – 00:18:10:01
Rod Khleif
That’s those are those are your daily powerless.

00:18:10:01 – 00:18:13:03
Mark Nagy
Those are completed powerless. Oh that’s.

00:18:13:05 – 00:18:14:18
Derek Hogarty
The checkmarks I love it.

00:18:14:18 – 00:18:20:18
Mark Nagy
Right I do what I did, I win the day. Yes or no. And what made me win the day would help me win the day.

00:18:20:20 – 00:18:40:08
Rod Khleif
Oh, I love that. So that’s for. Yeah. You know, I used to do a little no, no card was six things on it that I would check off. But I like that better. Just the visual aspect of checking them off. And, and the fact that you’ve got this stack that’s almost ten inches thick of these daily hours, so you can look and, and you can celebrate on an ongoing basis what you’re getting done.

00:18:40:08 – 00:18:43:02
Rod Khleif
That’s that’s brilliant. I have to give Andy kudos for that. Yeah.

00:18:43:02 – 00:18:58:03
Derek Hogarty
So you mentioned, you know, you were educating from 2019 to 2021. You know, my my curiosity. What changed? What made you decide to actually jump in and take the action? What was the spark for you?

00:18:58:05 – 00:19:20:04
Mark Nagy
So absolutely, positively broad story, being at this top, losing it and coming back. I’ve hit several valleys in life. I’ve had some people tell me, you go out of business, my consultant tell me to get out of business. I’m like, you’re going. He’s business is no such word is can’t to quit, you know? So I even coach my baseball teams.

00:19:20:04 – 00:19:42:24
Mark Nagy
I’m sure my some of those guys. If you heard that again right now a taught the youth. That so long story short, is, there are other people in this market, but they have not lived in and succeeded, lost it and got it back, like. Right. Has, I totally aligned with your story? I knew that I wanted to align with the Warriors due to that story.

00:19:42:24 – 00:20:11:18
Mark Nagy
And then the last piece of the puzzle was really, getting the coach and Eric and then him with wired, like, I may not have been military. I tried that because I had asthma. They didn’t let me in. When I was young. Whatever. But, but because we were wired so the like, he did push and even the the gentleman that coming down from new Jersey to look at this asset to help capital raise his Warriors coach said, Sarge, you get off the pod, go love it.

00:20:11:18 – 00:20:34:14
Rod Khleif
And that’s that’s that’s, that’s that’s the bottom line, guys. And that’s that’s what our coaches push. Massive action, by the way. You know if you have an interest in the warrior program, text the word crush to 723 4 or 5 and we’ll help you crush it in this business like we’ve you know, we’ve helped Derek and lots of lots and lots of other people, but, you know, and there’s that’s how you apply and there’s an application process.

00:20:34:18 – 00:20:50:08
Rod Khleif
I think I mentioned that previously, but but that’s okay. You know, if you want something, if we know that, if we can tell you want it, you’re very likely going to be able to join us. So again, text crush to 72345. And and you can look us over, we’ll look you over and we’ll go from there.

00:20:50:10 – 00:21:07:18
Rod Khleif
So let me ask you this, in this journey so far, it hasn’t been that long, but but just in and, and maybe you could talk to something previous to joining us as well, but talk about a setback. Talk about, you know, you know, I call them seminars but but but talk about a setback. We have lots of them.

00:21:07:18 – 00:21:16:04
Rod Khleif
But maybe pick one and and if you think feel like it’ll serve the audience and add some value if something comes to mind.

00:21:16:06 – 00:21:39:05
Mark Nagy
Don’t always take no. Is the final answer there. And, and, that was proud. It was weird when Eric posted that, you know, perseverance. He called Derek. Jody perseverance. Now I’m just that’s a mixture of hardheaded. No such words can’t quit. But there’s been many setbacks. I have been told to close the business. I have been told.

00:21:39:05 – 00:22:03:20
Mark Nagy
And you just keep on fighting. And you negotiated. And I negotiated with my subcontractors. At one point, I lost $4 million with the sign contracts in Massachusetts, and, that signed. So I and I had 28 people, six trucks, office, office manager at 33 years of age, 30, 33. And I had two year old and a two year old and a one year old at home to your on the newborn, and about seven figures a month.

00:22:03:22 – 00:22:26:08
Mark Nagy
They are rolling at that time, so I was I visualized that I got it, I loved it, I was wrong. Thank you all. And then something comes out that you can’t control. A lot of my clients were living on their margin. And then, you probably remember that, sir, back in 2003 or 4, when the margin calls get called, I lost all those signed contracts.

00:22:26:10 – 00:22:46:06
Mark Nagy
I could have went bankrupt. I, I sat down with all my subs and said, listen, I owe you. I’m going to convert the structure to cost. Plus they’ll pay you direct and I’ll pay you 10% more. And it took me ten months to pay that. All they para again get into the black. It was not easy, wasn’t fun.

00:22:46:06 – 00:22:54:11
Mark Nagy
It was probably the catalyst of the divorce, I’m sorry to say. And then not to go too deep. But yet, in hindsight and learning, I was learning.

00:22:54:16 – 00:22:58:21
Rod Khleif
That that pain and upset can cause pain and upset in your personal life, too. I get it.

00:22:58:21 – 00:23:19:00
Mark Nagy
And. Yeah, and not to. Derek and Kim were doing well. Derek and my ex-wife, we did well and we were fiscally savvy. We didn’t spend. And to have your client tell cause your fiscal demise, I had to take the majority of our worth and put it into the business now. Always trying to take the spin and turn a positive and or negative.

00:23:19:02 – 00:23:33:13
Mark Nagy
I had to. I was very lucky to have six figures available to me. We put it in the business and fuze it and then as my ex-brother-in-law was tell me, I put lipstick on a pig and sold it in 2005 to move to Charleston, South Carolina.

00:23:33:15 – 00:23:53:05
Rod Khleif
You were able to sell it. Wow. Good for you. Good for you. Well, that’s you know, you just didn’t give up. The moral of the story there’s you didn’t give up. I mean, I remember when Covid hit, Covid hit eight, 800 people scheduled to be in Orlando. I’m like, what the hell are we going to do? And you could still see me on my, on my video recording the video saying, we’re going to have it in the studio right here, which I created overnight.

00:23:53:05 – 00:24:09:14
Rod Khleif
And you know, some sometimes you have to pivot, you have to innovate. And it was coming economically. You know, you may be listening in, you may have it happen in your life. It could be a layoff, could be a job, you know, some sort of a business issue. And you just, you know, that’s when you roll up your sleeves and just frickin make it happen no matter what.

00:24:09:20 – 00:24:26:08
Rod Khleif
And I’ll tell you for Zella in my later. Great at that conversation. Right there. I know that’s, that’s that’s how they roll, but, well, listen, I really appreciate you coming on the show, buddy. Unfortunately, I’m a little out of time here, but, thank you. And, and I’m glad we were in a position, you know, and you absolutely had a tremendous value.

00:24:26:08 – 00:24:28:21
Rod Khleif
And it’s, of course, great to see you as well. So.

00:24:29:02 – 00:24:31:01
Mark Nagy
Yeah, that’s a come on. Thank you, sir.

00:24:31:03 – 00:24:36:11
Rod Khleif
Thanks. Talk soon. We’ll talk soon, my friend. Take care.

00:24:36:13 – 00:24:43:05

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