My $2 Million Dollar Fixer is getting RUINED by California

In this video, we're going to go through construction and teach you a little bit about building in California, especially right at the California coastline, and how it could actually be a hack to your net worth. I just have one favor to ask you. We are going to do a massive spec build, ground up construction in Utah, specifically in Park City. So, if you happen to know any vendors that you would recommend that might want to work with the channel on branding purposes for automated shades, for windows, for flooring, we're talking about a pretty big project and we have two lots in the development. Uh, and and they're each going to be over 10,000 square ft. We'd love to talk to you and see what kind of partnership we can work out. So, hit us up at staff reinvest.com. Welcome back. Today we're going to tell you about how wonderful permits are in California. [music] And it's exactly why the secret hack in this video is going to show you how you can really build wealth with real estate. But first, let's show you what I'm talking about. So, over here is a house on a channel in Southern California. It's beautiful. I don't know, it's probably 70° outside right now, maybe a little bit more. And we're on a rib kind of like in rust. You know, you take it to go to oil rig. So, what's up with this house? Because the rib looks beautiful. We love this guy. But you know what's not beautiful is the house, which needs a little love, including the dock. Take a look at this dock. This dock right here is Well, that's a dog. This is Zeus. Say hello to Zeus. Uh, this is gone. The dock is poopy dupy. We got the rust. We got the old kind of arm and wire system over here, which is okay. You could still replace a dock with the arm and wire system. Uh you see you've got the arm and wire over here. And they've got the pylons. They take a little longer to permit a replacement. We just had a fish jump right there in case you want to go fishing, you do that here. But you can see here, beautiful cracks in the dock. The dock is deteriorating. The whole place is falling apart. And the duck is falling apart. Not doing not doing that great. It's full of the bird poop. It's full of the problems. The duck is old and musty and rusty and kind of nasty. And they kind of killed or wasted I feel like this space right here because you can see if you squared out this dock, you'd actually have like a whole another bedroom worth of space right there. So, a lot of potential. original sort of late60s early 7 actually more like mid70s windows over here the aluminum but uh gorgeous area house just needs a little bit of love as you can see this is our beautiful kitchen crap [laughter] as you can see this is our beautiful foundation and this is oh a mess >> [laughter] >> That's all right. So, what's going on here? What are we doing? And what's the story? Like, why am I talking about this old mess being a secret hack to building wealth? And a lot of people don't like to hear this because we only like to hear that, you know, things are really hot. They only go up. [laughter] Uh, and there's stocks, there tickers, there betting markets, there things we can do on our phone. None of this we can really do on our phone, right? This is a little at least partially AI resilient. But I'll tell you exactly the part of all of this right here that makes it so valuable. This property we found on the market using our own proprietary Reinvest AI app. It screamed at us and said, "You need to buy this." And we're like, "Okay, we'll buy it." And so we did. But we closed it back in March because we bought it cash and it takes time. You know, we've been sitting around here for 6 months. And you know what we've been doing for 6 months? Nothing really much over here. I tell you what we've been doing for 6 months. And it has to do with the most valuable part of California real estate. Approved permits. Baby. 6 months. I can't tell them, "Let's be in escrow for 6 months." I can't tell them, "Oh, yeah. I'll I'll try to get permits first and then I'll buy your home." No, man. I got to get plan sets. Look at this stuff. We're getting a beautiful, gorgeous new staircase in this property. And it is going right there. In fact, that's where the old staircase was and it was a monstrosity. It was a disaster. I'll show you before right here magically of what it was before. You could even see the crazy wall that it was which has already been prepared. And you could see the kitchen what it was was a giant wall. And so now we have these beautiful blueprints over here. And these blueprints help enable us to actually build value. Oh, this is actually right here. Probably the most important part. What do we got here? Ah, look at that. Okay. To pour H. See what this is? City of Ventura Building and Safety Division inspection record card. We have permits on this place. The inspector was here and we got sign off, baby. This is money, honey. California is so slow at permitting building that the people who take the risk building this deserve to get compensated with extra dollars because unfortunately when you have to go through building this kind of stuff. That's the plat map. Now we got definitions. Here we go. We got existing existing beam. This is bedroom. There's the kitchen. This is what the kitchen was before, right? So, we could see this existing wall, got an existing dropped beam, the existing staircase. That is all of the existing planning. Uh, and then here is our proposal. A much thinner staircase, beautiful modern design. Opening this wall up, getting a nice bar top over here. Getting uh as much as we can an open concept with a beautiful new kitchen. Permits. Now, a lot of people just say, "I just do it without permits." In a fishbowl, you're cooked. I get it. I get the temptation because who wants to spend tens of thousands of dollars on permits and wait around for months doing nothing for 6 months just to get paperwork to get people housing because nobody was in this when we bought it. Somebody has to have the balls to come in here and actually get the permits and do it right. Especially in a fishbowl where everybody's going to call you and go, "You better have gotten permits otherwise I'mma call the city cuz I don't want to hear the saws. saw saw all that's actually how I got a piece of nail in my eyeball. [sighs] So, if you want to compensate me for getting a piece of nail in my eyeball when I was a kid, go to reinvest one.com and you too can utilize our homes AI platform along with the reinvest terminal coming out later this year. All in one subscription. See what we did there? But anyway, this is actually really nice, too. Look at this nice new door. I think uh our uh our favorite contractor got a little excited and decided, you know what? Let's go ahead and start. Let's get started. We got some spare time. So, we're going to get started a little bit on some basic things that don't require the permits. That's okay. That's fine. That's respectable. You know, now we got the permits. It's good. Getting that nice smooth drywall getting started in some areas. Uh the issue with getting upstairs is that because there's no staircase right now, you kind of have to climb a ladder. I don't think that's a good idea with one hand while taking a ladder that's too short. But here's the upstairs. And uh we can see there's our dock and kind of get a nice little glance of the area around here. You know what? We got to do it for the memes. It's probably really stupid, but I think my boss has workers comp for us. So, uh here we go. All right, I survived the easier part. [laughter] The harder part is always getting down. So, uh I hope OSHA doesn't mind this. Ah oh well. All right. So, what do we have? Bedroom. Uh you've got two bedrooms downstairs. So, this is actually a four bedroomedroom. This is your master bath. You can see what it was before. Oh, interesting. I'm going to start walking where the studs are. [laughter] I can see through. Oh, man. It's all right. That's all right. So, uh, gives you a little view. Oh, look at they have flowers. They just don't make them like they used to, huh? Yeah. You know, people always say that, except the reality is they make homes a lot better. So, the reality is what we're doing with this property. And so, we'll go through some of the numbers on this. What we're doing with this property is we are uh permitting not only the remodel of the whole downstairs and uh expanding uh the footprint to include an ADU over the garage. So, we are really in no big rush on this property because we're talking about a $2 million property that we think is going to be worth substantially more once it's a remodeled and b there's an ADU over the garage. Now, the garage is right here. You can't really see it. Okay, there we go. So, this is the garage and you can do an accessory dwelling unit off of here and then rent out essentially an apartment by having a whole apartment over here. Obviously, we're designing such that a room can still have some form of a view. I think Mr. Doggy is a little sad that he can't get upstairs. Zeus, are you sad Opa went to the car? Sus, where's OA? It's okay. He'll be here soon. We're replacing that moldy window, too. Anyway, uh so so we'll have an ADU. We'll have remodeled permitted interior. Uh, and there's also a boat. We actually think this could potentially front house be uh an Airbnb, but there are very few Airbnb permits, so the numbers have to make sense. Uh, and the timing has to make sense. And then, of course, you could long-term rent the ADU, or you just long-term rent both of them. But, uh, here's, uh, here's a little bit of your view. You get your, uh, hillside over here. That is Ventura, California. You get the Ventura Keys. Isn't that nice? Uh, and then of course you get the boat, you get the paddle boards. Really nice to go out even with the paddle boards. Although I prefer to take that and throw it onto the boat. That's kind of cool. Uh, but then when you could long-term rent this place with the boat or Airbnb it with the boat. Obviously, you have to be really careful about liability with that. So, we have special special insurance uh for all of it. Now, what's remarkable and it just reiterates how hard it is to build in California and this is what people really miss the boat on. Uh, people really miss the boat on the harder it is to build in an area, the more valuable that land is. They don't even have a dock right now. See that? Look, they got a they're missing it looks like they're missing a dock. I don't I don't actually really know what's going on over there. Yeah, that house has a dock. That house doesn't have a dock. So, usually what happens is you go apply for a permit for a new dock, which we did. We're replacing this dock. So, they'll come and probably be honestly like a one day job to float in float this dock out and float a new one in. come pull it in with a barge and pull out the old one. But but we're still waiting for the permits for that, too. [laughter] Uh so, you know, in the meantime, you have this for a dock. And so, that's just the nature of California for you. They would rather have this for a lot longer than speed up the permitting process. Now, that's not necessarily the city themselves fault. A lot of that is just based on the law, the way things have been written and people are so worried about lawsuits and latigiousness these days that everybody just perfectly goes by the book and if anything is slightly off they just stop and they're like we got staff attorneys and the staff attorneys will weigh in. It's crazy. But uh you know this is obviously a one of the properties for our startup. Uh it'll if anything it'll be our likely only vacation rental. Uh and this is you know going to be major project. I'm glad we're about we're just starting on it. But you know people people see what we're doing with Reinvest One and what we're building they forget that we're also still a real estate company right but this is exciting because I think when this is all said and done we'll probably be up about 20 to probably 25 to 30% equity on this. like we'll have done really well on this even if it takes a year and that's okay. Like we went into this knowing you're not doing anything fast out here, but that's okay. So, we just we got a good deal and we budgeted it in and we couldn't be more excited about uh the fact that we now have permits in hand and now we can come back and do some more videos. Let's go look at the those beams safely. What do we got right here? This is underpinning. So basically we have to pour concrete here that ties the existing slab to the new poured and underpinned slab where basically we are Simpson tying the entire new framing which uh sits over here under load down straight into the foundation. Now, you can see some areas did not actually require underpinning. Right here, we've got an engineered beam, and we can see the Simpson plate right here onto our post. And this area did not call for underpinning. So, we can see that here. Nice structural hardware. We got the SDS screws in on the joist hangers on each side. These are actually my favorite. I prefer these over nailing. So, big fan of these. They're not the cheapest, but that's okay. So, we got all the joist hangers in attached to a new engineered beam to fully open up this kitchen. And then we come over here to another 4x post. It's got to be 4x cuz that's the width or the depth, I should say, of the bay over here. Uh, and that's our post. Then over here, we have another underpinned area. I'm actually find it a little surprising they made this area get underpinned, but you know, it's really it looks like to hold uh these joists over here. It just seem it just feels like why why right here do we need this? Is it really just for the venting? But why are we underpinning this? I don't know. [laughter] We'll have to look at the plans for that one. This makes a lot more sense. All right. You got another nice beam over here. Beautiful clean lumber. And uh yeah, I mean the engineers engineer it, right? It does say approve. So, let's just go. So, here is the staircase. That puppy is going to be beautiful. We're going to shout out the company uh once the product gets here. I think that'll be really cool. So, these are our architectural pages. Uh, structural pages. Here we go. Okay. So, S10 6 and 8. We have a 4x6 inside first floor, second stud wall, a line under north beam above. That's number six. That's this. See? aligned under the north beam that we added. Okay, got it. That makes sense. And then the one that's funky is eight, right? So why is eight? What is going on with that camera? There we go. Y is eight floating. So it says post inside second floor stud wall align under existing post above. Ah, see ah the engineers thought of this. I am not going back upstairs. But basically this must mean that somehow up here we have a post that comes down to this framing probably somewhere right on that tub by right there. And that weight is well I mean that's obviously in between these guys but it's possible that that weight is essentially sitting on uh these joists that post and then this is really just supporting all of the underneath. Hence why we are underpinning this. Spoiler alert. Even though this house has a vated ceiling, it is not a typical gablest style roof where you have a horizontal cross set of beams or joists that actually hold that triangle from basically squeezing out to the left and right. And so without that horizontal crossbeaming, you need a center post. And that's exactly what we found on the Matterport when we went back to the office and looked. If you remember at the actual place, we're like, "Wow, all this stuff is hanging out in this weird place with framing." And we looked at the plans and we're like, "Oh, there appears to be a post above." Bingo. That's how you support this type of open concept home. So that about 50% of the weight of the roof spreads to the walls on the outside of the structure. And 50% goes down that center post, which is what is being supported with that underpinning that just feels like it's missed the engineered beam below it. But that engineered beam below it is already supported at both ends and secured with Simpson hardware. Very interesting. This is where the bathroom is. So, could be a post somewhere in this area. Huh. Interesting. I'll have to look the next time I'm up there. But boy, it's been a while since I've gone through structural pages over here. Let's go see. This is second floor. There it is. Numero 7. That's the bathroom cuz that's the toilet we were in. These are the vanity cabinets. Right there it is. Number seven. Existing post inside of stud wall aligned under roof beam to remain. So that's holding up the roof. So sometimes things look funky and then it's like, ah, there's a reason for the season. You can't really see it. But my guess is, see how this roof pitches over? My guess is somewhere right along this edge. And then the vanities are kind of going to be like right there, right? That's where you get your post. And then, oh wow, what a surprise. that's where we're underpinning. That's kind of cool. So, I'm excited about that. So, anyway, go check out what we're doing at Reinvest One. You know, we're always going to be a real estate company first. Uh and uh we just do what we say we're going to do. We're going to reinvest profits from software into also more profits or more software, but also real estate. That's what we like. We're a real estate company first. And I love this stuff. Boy, it's been a while since I've been on one of these. So, this is cool. Anyway, you like it? Do you have anything to say? Nope. >> Okay. >> It's nice here. >> It is. >> You ready to go? >> Okay. >> All right. Let's do it. Bye. >> You like that video? Check this one out. I think you're going to love it. >> Why not advertise these things that you told us here? I feel like nobody else knows about this. >> We'll we'll try a little advertising and see how it goes. >> Congratulations, man. You have done so much. People love you. People look up to you. >> Kevin Praath there, financial analyst and YouTuber. Meet Kevin. Always great to get your take.