Episode09

Transcription

Jeremy: [00:00:00] All right. Welcome Adriana Garcia to the next episode of the investor chat podcast. Adriana, thank you so much for joining me tonight. How are you doing tonight?

Adriana: Thank you, Jeremy, for inviting me. I'm doing absolutely great. I'm happy, , with all the holidays going on, um, meeting with people, with friends, family.

So I'm doing great.

Jeremy: Wonderful. Wonderful, Andriana. Thank you. I do appreciate you joining me tonight. I do want to, talk a little bit about your investing journey and kind of where you're at. But let's start back before you got into the investing world. What have you done is your W2 career up to this point or various careers that you've had?

Adriana: Got it. I am not a W2 girl. I can say that. I've worked for some, bigger, companies just for a bit and sales. Um, I am not like corporation person. I do not like it. So I [00:01:00] decided, this is something that, it's definitely not for me. I'm very creative and In terms of using like my hands and I do wedding bouquets on the side of fun, uh, silk flowers.

I worked for flower shops as well and like event decoration. That's something that I really enjoy. It's just, the fact that you have to go and pick up everything once you rent out the items and it's like, you know what? I do like this. It's wonderful, but it's so time consuming and it's like, everything is time consuming, but when it comes to deciding, prioritizing your time, it's like, okay, I could probably be doing something else, I also enjoy with a bigger, profit with something that is more fulfilling and , I currently work with my husband. Also, he has a, commercial refrigeration company and that's what I do right now. I help him, with pretty much the bookkeeping side, which I am not either like a transaction [00:02:00] coordinator and all paperwork.

No, I don't. It's not that I like it, but it's something that we're doing, combined. So, you know, we help each other in that aspect. So on my side, I still do the creative once in a while, but I totally stopped it when I started, the real estate world.

Jeremy: So that's great. So let's talk about that then.

What drew you to the investing world and the real estate investing world specifically?

Adriana: Honestly, it was my husband. Thanks to him. we started out investing back in 2014 when we bought our first duplex. Okay. So we thought, okay, we're buying the duplex. We're going to be just living in 1 of the units and rent out the other 1 and pretty much that's it.

Right? Yeah. There were no further goals. And we're like, as long as we can get this house paid. But along the way, you start listening to other people, and, he is in the business world, you know, it's commercial refrigeration that he does. So that has helped a lot that it's an eye opening that [00:03:00] you start meeting with other people, listening to what they're doing and your eyes and your world kind of expands. So I think that. Is very important so to him in 2018, he was like, let's buy more apartments. Let's buy something else. Let's buy something else. So here comes the opportunity to acquire a 4 plex here in Los Angeles as well.

And we had, no clue we were very lucky with a duplex because our tenants that we acquired. We inherited the tenants. There was. Such a lovely couple and they were like, you need to do this. I didn't even know what rent control was. We are in the section of our control. So she was guiding me every certain time you have to, give me a letter of rent increase.

You have to do this. So she guided me. So when it came to the apartments, it was like, oh, my goodness now. Now I have real tenants, , I have to manage this and that was my part I have to manage [00:04:00] the tenant side, like the management. And that's how it all started, my husband pushing me in a good way, though, you have to learn how to talk to people.

You gotta learn how to manage and it's been really good. I can say ups and downs at the beginning because you're new to it. So that's what pretty much got us started and I wasn't happy in terms of just helping my husband, just doing, like the books keeping side or paperwork for his business.

It's what do I want? You know? Yeah. And I've always liked, the flipping part, oh, I've been to him. Let's flip houses. Let's flip houses. And he is a little bit more conservative and he thinks things over a little bit more than I do. I think I'm more emotional. Like with women. I think it's more in the creative side and want to make things pretty all the time.

Okay. Yeah. So I think that's why I'm leaning more [00:05:00] into the flipping. I also have a lot of family members that in my country. I'm from Mexico. They do construction. And I've seen that since I was a little girl, even for our house in Mexico, they helped us build the house and I grew up seeing all this.

So I think that's why I lean more towards the construction and flipping and that started attracting, me to the real estate world. I'm like, I like this. I really like this. I enjoy it. And I started seeing all this young people, in social media. Doing all this flips all this Airbnb and I'm like, wow, I'm here sitting.

I'm like, I'm 40 years old and I haven't done anything. I just have it on the back of my head saying I like it, but I don't take a step forward, and I'm like, it's time. So that's what got me here.

Jeremy: That's really exciting. And I think there's a, couple of pieces there that you spoke to that, I think a lot of times draw investors into any [00:06:00] type of, investment is you had some personal history, from family, friends, building, a house in Mexico and being able to be part of that and see that, development, that building. And, I caught on kind of early as he was talking about doing some of the creative stuff, some of the bouquets that you definitely enjoy that aspect of creating something right.

You, take different things and group them together, bring them together. And like you said, to make them beautiful. And so I think that's super. Unique that, you're going to be able to do that and you have a special eye for those types of things. And on the fix and flip side of it I think that speaks to your nature of who you are being able to focus on that.

And so I think that's really cool that you've recognized that and been able to already start to drive some of your focus into that area. And so let's talk about, when you bought this four plex. In 2018, was there some of the renovations that you guys had to do on that [00:07:00] property? Was it a really nice property when you bought it?

Or did it need some work? And what was some of that work that you did?

Adriana: So, this is the thing that, good question, when we bought the property, the building is a beautiful building. It's, 19. Um, 29, I believe building and from the inside everything, it's old, obviously, right? But it has so unique features and we were like, we should do this.

We should do that. But then we have tenants in place. So it's not like you can go and make all this renovations. Another thing that, we thought, okay, now we know it. Right. But we had regular water heaters and we wanted to start off, making everything better and that property. we had the investor side that wanted, just to put, the money acquired the property and do that cashflow.

And then, on the other side, we're like, let's make this beautiful. Yeah. And we started off with those water heaters that was the [00:08:00] biggest lesson we got. So we replaced those water heaters with tankless water heaters and that was like, to us, it was a really huge mistake because they say, and now we know do not fix something that's not broken. Yep. When you're an investor, you don't go in and try to fix things. the mindset of an investor is just acquire the property and if it's not broken, don't fix it. Yeah, do not put money into it yet. So now, we're focused more in the items that really need, to get fixed.

Yeah, and that's pretty much what we're doing. Another thing is that as an investor mindset now, like if the rents are not really paying off, it is not a good time to invest on a unit and make it look better if you're not going to be getting that return, but of course you're not going to be letting your property, get worse and worse.

Like I said, if you need something to get it fixed. You are we approach that [00:09:00] we do, take an approach into that. We did some plumbing as well. Once we did, the water heaters, but , you open a can of worms. Like, they say, the ones you start something here comes something else. So it's ah, okay.

So let's just wait. We had an issue with the roof and let's fix it. Because, the roof is 1 of the biggest, it's a 4 plex. It's 1 same unit. And it's like, no, we have to address this and that those particular things. Yes. But in terms of paint, the stucco, how it looks outside. We've been leaving it as it is right now.

So that we've learned that's why they say everything is a lesson and you just start taking note and start. Learning and you learn and listen from other people and now, you know why they say things

Jeremy: yeah, I think that's such a valuable lesson, and I've had to learn that one, the hard way myself.

And I'll be completely honest with you, because one of the things that you said was, you learned that it wasn't necessary for you to change those water heaters, right? It was just something that you wanted to do. [00:10:00] You wanted to make it nice, right? And so it's so interesting that you had to learn that the hard way, because again, I've had to do the same thing.

You don't need to over enhance a property. Especially if you're not going to get the rents for it, because just like you said, is that the rents are not going to afford granite countertops. Or a tankless water heater. Why would you put that extra money into the property?

Because as an investor, at the end of the day, our goal is to be able to provide affordable housing to individuals and make sure that those properties are maintained. And provide a good quality of living, right? And so at the end of the day, we're trying to buy these and use these properties as an investment.

And if we're overdeveloping those properties, then we're just throwing money away, right? Because we're never going to get those returns. And so I think that's such a valuable lesson. And a lot of investors that I've talked to have had to learn that the hard way. And so I love that you [00:11:00] tell that story because that's exactly most investors, they need to hear that, especially if they're new, that you don't need to overdevelop those properties.

Adriana: Yes, definitely. Jeremy, that's something, that we've learned and it's great. We did, had to put in some money and time and just. Like breaking your head and you're like, Oh my gosh, because we had to deal with all this kind of permits as well. It wasn't like, shortly after we, converted them, you know, we put the tankless water heaters, we get the housing inspector and it's now it's time, for your inspection.

So I don't know where you live. Do you guys have rent control by any chance?

Jeremy: We don't I'm in central Utah. And so luckily for me, it's basically just driven based on what the market will pay.

Adriana: Yeah. Got it. Okay. For here in, in LA, most of the areas are rent control. So, every now and then, every single year, you have to pay what is called a SCEP fee and for RSO.

So, pretty much what it does, you have an inspector come in, every three [00:12:00] to five years with COVID. It changed a little bit, because we haven't had anything scheduled, but this was right before COVID hit, . And we changed this water heaters and 2 months later, we receive a letter that it was time for us to, get an inspector, right?

, to get it in and we knew because we, in the duplex, it's the same situation. So we're like, okay. No problem and as soon as the inspector walked into the laundry rooms, because that's where we have the tank this water heaters. He's like, this looks new. This looks new. And he's checking on the website, for building and safety.

Now, it's like, you guys have the permits. I'm like, wait a minute. We needed, the permits just to swap it, and he's like, yes, and you had to do this. You had to do this and we're like, oh, no, it started adding up. Now we had to go through building and safety. We had to pay all the permits.

And the worst thing is that they had to break, the walls. And have everything inspected have other stuff installed. So that's why I'm telling you, you know, you pretty much open a can of worms and it's always [00:13:00] better to I know. A lot of people do work without permits. We didn't even know we were told by the inspector.

It's like, you need a permit even to change your toilet. Like, it's wait, what? I'm like, are you serious? So now, like, for a light bulb or specific stuff, and it's crazy how they do require for, minimal stuff. We learned as we went through that process, but now we think things over before, taking the next step.

So, yeah,

Jeremy: I think that's another valuable lesson, right? Because a lot of times, especially. Early entrepreneurs, early investors. A lot of times when they get into real estate specifically, it's because they enjoy doing the work or they can do the work themselves. I grew up in a family that, we did some construction, we did some HVAC.

And so for me, it was very natural for me to be able to just go in and fix stuff myself. And. I have to be very careful when I'm having stuff done. So right now we're going through a flip house ourselves. And so I've [00:14:00] paid a contractor and, I just make sure when I'm having my conversations with him, I was like, Hey, have you pulled these permits?

Have you pulled these permits? we're going to do some electrical, we're going to do some plumbing, you're going to do , these things, you have to make sure you're pulling permits. And it says, and I'm not going to be the one pulling those permits. I need you to pull those permits because some contractors will.

We'll push back and say, no, that's your responsibility as the homeowner to pull the permits. And so I wanted to make sure that as I was working on this property that I was very clear with my contractors, like you are the one that needs to be pulling these permits. And so I think, again, that's such a valuable lesson and it sounds like you had to learn it the hard way, right?

Through these hard knocks, but, I think that's the best way for us to learn sometimes is to be able to experience those things. And now you have a story that you can share with others and a reason why they should be getting permits pulled and, following along the right way.

So I think that's such a cool piece to share [00:15:00] with the audience. So thank you for sharing that. So cool. So as you've grown, you've got a couple or a duplex and a four plex. And so where are you at now? What are the things that you're working on in your investing and your real estate business right now?

Adriana: Right now? Our focus are, we are lucky that they opened, , the, um, the law that where we can build accessory dwellings. Yeah, which are ADU's here and in the city of L. A. So, since we acquired the property, we wanted to build because we have a pretty good size garage in the back and we wanted to make that into another unit.

We were not allowed until a couple years ago and we're like, oh, so I think it is a time to invest and. Converted it into an ADU. So that's where we're at right now. Uh, in both of the units, we will be adding ADUs. At first, we, we wanted to go for only 2 detached ADUs in the duplex. And we are like, going in a different route where we can add a [00:16:00] 3rd unit.

So it's a, instead of just going with a duplex now, and then a 4plex, now we're converting it into. A 5 plex, that's for 1 and the 4 plex that we currently have, it's going to be a 6 plex. Now we're adding 2 more ADU's. Yeah, it's been a long road with that too. I've learned a lot. I'm the 1 dealing with the architect and I'm lucky enough that my husband gives me that push again.

He's always the 1 telling me. You have to learn, get your feet wet it's nothing like being able to talk to people. And I was always so scared of talking to people or what if I say this, and they get mad, like you're paying for a service, like they shouldn't get mad if you talk to people respectfully and just let them know what you want.

And it. It's been working, you know, it's been hard with markets in terms of time. It's been this may will be almost [00:17:00] 2 years for the permit. He made the big mistake of providing her all the projects at the same time. We gave a down payment for all the projects. And again, it's been a very costly mistake, but we are learning so now for the next, let's say, a couple years down the line, if we buy another property and we want to add an ADU, now we know what to do and what not to do.

So it has helped us a lot.

Jeremy: Yeah. So that permit process and that, the ability to be able to add those ADUs, it's taking a long time to be able to get that through the city, through the architect and be able to get all that permitting in place. And so that's probably something that, could be super painful for most people or even, downright discouraging at times. And so how are you dealing with that discouragement, or, that frustration when you're waiting and waiting. [00:18:00] Are there, are you just looking at the big picture? What are you doing for your mindset in that situation?

Adriana: The biggest thing that has helped us and I say us because my husband, we're both in the same boat here. We want, we have, a main goal. So we're pretty much focusing on that main goal. And we're like, we know, the path might not be smooth and straight, but we know we're going to get there.

So, that's what has helped us. This is our goal and this, just looking at the bigger pictures. Once we have this ad use done, what is it going to provide to us? Right? And in Spanish is like, the benefit of, I think that's what it is, the benefit that we're going to have once the ADU's are done, it's way bigger than all the hustle we're going through. So that's how I see it. And I always see it as well. Like, every single thing that happens in life is just a learning lesson. Some cost, costly, like, very expensive [00:19:00] lessons, but it's life again. And. That's it. You we pay one way or the other.

So they're just lessons at the end of the day and learn as we go.

Jeremy: I think that's so amazing. And it sounds like you have an amazing husband to be able to support you and help you through those tough times as well. And so I think that's Extremely key for many investors as we get into the world, whether it's real estate or, any type of investing is to be able to have that support around us, whether it's a spouse or a really good friend or a community.

And so I think that's so powerful that you have that individual in your life to be able to help you through those things. And I love how you said that, . This is your, for your benefit and being able to look that long view out, right? You're looking out five, 10, 15, 20 years and being able to realize keeping the big picture in mind that you're going to be able to [00:20:00] realize those benefits, and it's just as part of life, right? It's just everything you just have to learn it to be able to move on. So I think that's, I think that's so key and in your mindset, as you've gone through this, you've got a great partner, but are there other people that you've been able to reach out to, or is there maybe like a book or anything like that, that you would recommend to investors that are, in the real estate world or in the investing world, that they can use along their path as well.

Adriana: Absolutely. Jeremy, it's been. It's been a journey when I started, nowadays, social media, it's out there and you can find pretty much everything social media, YouTube university. So I've been reaching out to local investors here. I've been attending a lot of meetings and I sent messages.

Whatever I don't know, I asked, I'm always asking him, I know a lot of people are just going to ignore me, but others have [00:21:00] taken their time. And I'm extremely thankful and grateful. That they've been, guiding me in a way, in a sense that they're like, just start going to meetups, start reading books.

Start asking, like you're asking me and that pretty much opened my doors and now I'm not afraid. I've never been afraid of asking, I'm not embarrassed or anything. I'm like, if I don't know something I want to know, it's that hunger for knowledge and, like some local investors that do flips here.

His name is Rene. That's one of them. And then we also have Ed, right? They're from milk house. They're pretty much the ones that kind of got me introduced to all this, I reached out to, Ed and he's like guiding me do this. Keep on going to meetups. After that, that took me to another great investors.

Uh, I met Alex Camacho here in Southern California and at the. The time also Alex Camacho was working with will, will walls and I started attending their meetings. I [00:22:00] started volunteering and that's the way, you volunteer, you go, you approach them. And that's 1 thing takes you to the other and then the networking aspect is great because they, we learn from everyone.

From every single person, and I think that's has been 1 of the biggest things that has helped me and from where I've learned in terms of the investing world. So, in 1 of those meetings to Oh, , Sonia, there's this lady here in Southern California as well. She's a realtor and she's been working with development companies.

So everything starts like, linking up. And that's where I met my partner that pretty much got me introduced to sub two, we met another guy. His name is Brian here in Southern California. It's hey, have you heard of Pace subject to? And I'm like, no, what is that? And then we just started talking and.

Pretty much, pace morby of, I started watching his videos, Ryan, Grant Cardone. And [00:23:00] after it's you start watching so many people that do all this and it can get overwhelming at first. And then you're like, you know what? I don't want to do anything else. Like, you see them, over here, pretty much FOMO, what they say, fear of missing out.

Yeah. You're like, you see yourself down here and you see them up here. And you're like, when will I be able to kind of align. And that's 1 of the biggest things that has cost me a lot in terms of emotionally, because. You want to be up here too, right? And then you see other, members in the community that are also up here.

And once again, my husband's like, do not compare yourself with other people. I've heard it from pace. I've heard it from other investors and I spoke with Priscilla to another great member from the sub to community. She's like, no, focus on you. You do you. And you are making your progress [00:24:00] in 1 way and just, I think that's 1 of the main things that has helped me, you know, talking to them.

They're also going through the process and it's just been great. I am not. I know a lot of people say you have to read books. I'm not a big reader. I'll be honest with you. I'm more like, hands on. I might read something for a little bit and it's like, okay, close that book. I have to take action and do it on myself.

That's the way I learned, I'm very visual. I'm very hands on. Once they tell me, give it a try, try this. I look at it. I'm like I like it. Maybe not. And if I see it, something that I might, like it and learn from it and it's going to make me grow. I'm like, yeah, let me try it.

Why not? Right? If I fail, there's something else and it's not just failing because I'm telling you everything is a lesson. You learn everything. You learn stuff from everything and everywhere and everyone. So that's how I see it.

Jeremy: Yeah, I think that's so amazing because as I listened to you [00:25:00] talk through the individuals that you was able to work with, right?

You started out just going and doing, going to these meetups and talking with people, being able to get yourself out there and introduce yourself and talk to the individuals. And then that individual. Introduces you to somebody else and then they introduce you to somebody else and to another group and then to another individual.

And so it's amazing to me how sometimes as investors that we think we can do it all on our own yet. Your prime example of how we have to work together and be able to, help each other out along the way to make sure that we are moving forward. And I never once heard you say that somebody was your competition and they told you, I'm not going to help you.

Everyone that you talked with was open, willing to help you out. And I think that sometimes we get caught in our own dark place in our [00:26:00] mind. And we think that nobody is going to want to help us. You're on this path by yourself. And that's just not the case. And again, as you mentioned through. All of these individuals that were able to help you along your way, and I love that you mentioned that you don't do a lot of reading.

You much prefer the hands on approach and you go and you talk with the individuals, you learn from them, they show you something there, or they explain something to you. And then. You try to think through it a little bit, understand it, and then move forward. I think that's so cool. And sometimes as investors, we hold ourselves back because we don't take that step.

We don't take that action. So I love your example of being able to be that action moving forward and continuing to grow and continuing to take your investing to that next level. We talked about what you've done. We've talked about what you're working on. And so I would like to just wrap up with where you see [00:27:00] yourself moving forward.

So I know you've got some stuff that's in process with the ADUs, but what is the long term goal look like for Adriana and her husband and your family? What is that? What is your big vision at the end of the day? Where do you want to be? What is overall success look like for you?

Adriana: I think success for me is pretty much having a life where I can be calm and relax in terms of mentally, emotionally and also health wise.

Pretty much to me. That's the number 1 success. Obviously we want the main goal is to be, stable, have some income money and not be worried if. I don't get this amount of money this month be worrying about the bills. So that's the main goal when it comes to the economic side. And our biggest goal right now is to have, a bigger piece of land, in a little bit of a rural rural area, have a small farm.

And, we [00:28:00] also invested in a property in Mexico and, and so it's just going back and forth. That's where I see at the end. I, being able to travel back and forth, have like, a single property here in California and. If, the months come and we're like, you know what, let's go and relax for a little bit in Mexico, just go and live a couple months over there.

Come back when, when we want and just be working if it happens and because it's not just crossing your arms and that's it and sitting down. Right? You're always looking for something else to do. So we're in. in the thinking of doing probably either like a small, like venue, or we acquired like a small ranch, just probably do something to, make some money out of it as well.

And if that's not the case, probably just acquire another business that could be a business that can be run like by someone else. Okay. You start it, but then like we can start [00:29:00] it, let's say one year, two years, be in it. Because you have to structure it right? Yep. And then have someone else run it and be, with that flexibility of not having to worry and be nice and calm.

Like, I think that's everything, like peace of mind.

Yes.

Jeremy: Yeah. So , I love how you expressed that, there's an economic part to it. Right. And money is required for that. And so being able to have the freedom of money is absolutely key. You touched on a couple other pieces there that I've heard from a few other investors.

And I think that's what drives a lot of successful investors is also. The freedom of time. So you can go and do what you want when you want to do it and the freedom of location and you mentioned about being able to have a property in Mexico and a property in Southern California, where you can travel between the two of them without any worry, you can live wherever you want.

Right. And so that freedom of location, I think is so cool. And being able to build that up [00:30:00] and having that. Big vision is going to help you get there. And it's obvious that you have a path that you're working on, right? You're not afraid of the grind. You're not afraid to get your hands dirty and get moving forward and be able to work hard and.

You just mentioned about starting or buying a business that you could use, you know, the, you own the property, it's a venue that you can use for, different things. I think that's such a cool vision. To be able to do these different things and be able to work on the things that you want to work on. As investors I think that's what drives a lot of us. And I love to hear that piece, and to hear your vision because everybody's are a little bit different. But I think that's key is to be able to have that freedom of money, the freedom of location and the freedom of time. So I absolutely love that.

Adriana, I absolutely love your story. And so, as we wrap up, I just want to ask if there's somebody that wants to reach out to you and network [00:31:00] with you. Is there a great way for them to contact you? Is it through social media? Is it through, an email or what's the best way for people to reach out to you and work with you?

Adriana: Absolutely. Jeremy, they can reach me at, Instagram and Nana Zoe, Nana. It's N A N A. Z O E. Okay, so Nana is Zoe Uhhuh . And on Facebook is Adriana Garcia.

Jeremy: Okay, cool. Cool. I will put those down in the show notes down at the bottom so that if people want to reach out to you, Adriana, that they can do so whether Facebook or Instagram.

I absolutely have had a wonderful conversation with you tonight, Adriana. You've given me some inspiration and you've given me some motivation and hopefully That those that are watching have also received that, that same motivation and, we'll be able to move forward and have you as an example that, can drive us all forward.

So thank you so much. With that, I'm just going to close out and say [00:32:00] goodnight to everybody. And thank you, Adriana.

Adriana: Thank you, Jeremy. It's been a pleasure. Have a blessed night.

Jeremy: You too.