Latest / Own More Doors / #55 How ADUs Create Massive Value | Costs, Laws & Lessons Investors Must Know (Joseph Peretz)

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#55 How ADUs Create Massive Value | Costs, Laws & Lessons Investors Must Know (Joseph Peretz) · Own More Doors

0:00
SPEAKER_00: What's up, everyone?
0:01
SPEAKER_00: Juan Weezar here with the Own More Doors podcast.
0:04
SPEAKER_00: This specific episode was first shared on our YouTube channel, Sage Real Estate.
0:08
SPEAKER_00: Check it out.
0:09
SPEAKER_00: And we're excited to bring it to you here.
0:11
SPEAKER_00: Hey everyone, it's Juan Weezar, and I'm super excited because for the second time, I have Joseph Peretz with Neo Builders here.
0:19
SPEAKER_00: Now, if you guys have been watching my channel, Joseph is um he's been doing a phenomenal job building ADU accessory dwelling units.
0:28
SPEAKER_00: Um, his video that we did the first time in our office is one of our highest, most watched videos till this day.
0:35
SPEAKER_00: I mean, it brings in subscribers, it brings in viewers.
0:37
SPEAKER_00: Now, Joseph, all that's great.
0:39
SPEAKER_00: Those are vanity numbers, but it's brought in business, I think, for both of us.
0:42
SPEAKER_00: And so I think we're really happy.
0:44
SPEAKER_00: Uh the community loves you.
0:45
SPEAKER_00: I'm excited.
0:46
SPEAKER_00: We are inside of one of your projects right now.
0:49
SPEAKER_00: It's gorgeous, it's one of a kind, it's custom.
0:52
SPEAKER_00: I love what you're doing.
0:53
SPEAKER_00: And we're gonna hop right into this.
0:55
SPEAKER_00: Uh, Joseph, man, thanks for being here.
0:57
SPEAKER_01: Thanks for coming.
0:58
SPEAKER_01: Uh, this is one of my favorite projects of the year.
1:00
SPEAKER_00: So I'm happy you came.
1:02
SPEAKER_00: Awesome.
1:02
SPEAKER_00: So, one of the things that we talked about with Joseph the first time, we got into single family homes and building ADUs.
1:08
SPEAKER_00: Joseph, right now, we're inside of a four-plex that he was brought on to the project to add more ADUs.
1:15
SPEAKER_00: Joseph, I'm gonna let you start from there, take us from the top, and then we'll just talk about it.
1:19
SPEAKER_01: Yeah.
1:19
SPEAKER_01: So last time we spoke, obviously, a lot of fun in Long Beach.
1:22
SPEAKER_01: We had a great time.
1:23
SPEAKER_01: I think two years ago, we were doing a lot of single family homes and or duplexes.
1:29
SPEAKER_01: And we were building a lot more ADUs for homeowners that want an extra little income, or mom and dad want to move in, or they just want a nice little bonus space.
1:40
SPEAKER_01: And we did really, really well in that niche.
1:42
SPEAKER_01: And we're still doing really well in that niche, and that's probably the bigger niche.
1:46
SPEAKER_01: But as things evolved, uh, I know you do a lot of multi-family.
1:49
SPEAKER_01: Now I am doing a lot of multi-family.
1:52
SPEAKER_01: And uh since then, bought a building, bought two buildings, building ADUs for myself, and building ADUs for clients.
2:00
SPEAKER_01: Uh, this project is really nice.
2:02
SPEAKER_01: We have existing four units, apartment building, two floors, uh, two units on the bottom, two units on the top.
2:08
SPEAKER_01: Really, really in bad shape.
2:10
SPEAKER_01: Client bought this thing like four or five years ago, right in the beginning of COVID.
2:14
SPEAKER_01: Got a steal, never touched it, never did anything.
2:18
SPEAKER_01: Um, got plans for an ADU, and plans are not nice.
2:23
SPEAKER_01: 16 feet, uh, no garage uh on the first floor.
2:28
SPEAKER_01: And he called me, he's like, come build my plans.
2:30
SPEAKER_01: I look at his plans.
2:31
SPEAKER_01: This is 20 late 2023.
2:34
SPEAKER_01: I tell him these plans are not good.
2:36
SPEAKER_01: We can do way better than that.
2:38
SPEAKER_01: I told him to put two ADUs on top of the garage.
2:41
SPEAKER_01: Definitely spend more money because doing that, but you get to keep four parking on the bottom.
2:46
SPEAKER_01: Gave him two storage spaces on the side.
2:48
SPEAKER_01: And if you notice, I have a nice parking spot here and a nice parking spot here.
2:52
SPEAKER_01: So now we have six units, six parking spots.
2:55
SPEAKER_01: The whole building is upgraded, and we have two one bedroom, one bathrooms on top of a garage.
3:01
SPEAKER_00: Joseph, so when people buy apartment buildings, you know, one of the terms that we use is value add.
3:07
SPEAKER_00: And all that means, and you know, it's overly used, but the reason people want to do this is they're gonna buy a fourplex like they did here.
3:14
SPEAKER_00: How can you make it better?
3:15
SPEAKER_00: So there's a couple different ways.
3:16
SPEAKER_00: Um, we could we could remodel, we could try to get the rents up to market.
3:20
SPEAKER_00: So all that helps.
3:22
SPEAKER_00: You could also add ADUs.
3:24
SPEAKER_00: And so what I'm seeing, um, we're in Los Angeles right now, but um, we're seeing this in Long Beach and all over Southern California is investors who have units, who have the space, who have garages, or or there's a possibility they're adding ADUs.
3:38
SPEAKER_00: And I would tell you that in very few instances, would I recommend them not to add an ADU?
3:44
SPEAKER_00: In most cases, I'm like, it's a no-brainer.
3:46
SPEAKER_00: If you could afford it, let's go do it for a bunch of reasons.
3:49
SPEAKER_00: Listen, the reason we're dealing with this is that we have a housing crisis in California.
3:54
SPEAKER_00: So now you are making a small difference and building ADUs.
3:58
SPEAKER_00: You're also creating new housing.
4:00
SPEAKER_00: So it's nice to bring new housing into where we're at.
4:03
SPEAKER_00: So there's a lot of old uh old housing stock.
4:06
SPEAKER_00: And and also, and also with all that, we're investors.
4:11
SPEAKER_00: We want to make money, we want to return.
4:13
SPEAKER_00: And this is a great, this is like the best way to do it.
4:16
SPEAKER_00: It's the best way to do it.
4:17
SPEAKER_00: And so I'm currently in Espero on an eight-unit building.
4:20
SPEAKER_00: There's three-car garages, there's units above, so I can't build above.
4:23
SPEAKER_00: Okay.
4:24
SPEAKER_00: And I'm I'm gonna have Joseph come out and say, hey, let's, let's, can we, can we sneak in a one bedroom, one bath in this three-car garage, and I'll keep you guys posted.
4:32
SPEAKER_00: But not only am I telling you to do it, I'm gonna be doing it.
4:37
SPEAKER_00: Joseph bought some units, Joseph's doing it.
4:39
SPEAKER_00: So this is a great way, value add.
4:41
SPEAKER_00: This is one of the top things that you could do in terms of a priority.
4:45
SPEAKER_00: Joseph, so with this specific project, um, I know you built two.
4:50
SPEAKER_00: Talk about the new law you were telling me about.
4:52
SPEAKER_00: And let's talk about, let's talk about some of the hard stuff that we're gonna be facing.
4:56
SPEAKER_00: Cause I don't want someone to think that construction's easy.
4:59
SPEAKER_00: We know it's hard.
5:00
SPEAKER_00: Tell us kind of the the route or the road to success on this one and some of the struggles you had along the way.
5:05
SPEAKER_01: Yeah, let me touch base on something you said.
5:07
SPEAKER_01: I think ADUs is a really, really good value add.
5:10
SPEAKER_01: Good for a value add, good for cash flow.
5:12
SPEAKER_01: We'll talk about numbers in a second.
5:14
SPEAKER_01: But when you're buying buildings and you're new, yeah, the easiest thing to do, the easiest project is either buy them vacant or figure out how to get them vacant, uh, renovate them, whether it's a nice renovation or a basic renovation, get them up to market rents.
5:28
SPEAKER_01: That's step one of being a multifamily owner.
5:31
SPEAKER_01: It's a very easy value add, usually creates not so much not so much money.
5:35
SPEAKER_01: You can bring in more basic contractors to do the work, and it gets done very quickly.
5:39
SPEAKER_01: The second level, I think, is ADUs.
5:42
SPEAKER_01: So obviously, garage conversions are easier.
5:44
SPEAKER_01: Uh uh new construction on top of a garage is maybe more challenging.
5:48
SPEAKER_01: New construction in the back is more challenging, but this is a middle project.
5:52
SPEAKER_01: This is what we do really well.
5:53
SPEAKER_01: Um, it's middle.
5:55
SPEAKER_01: The second is so much harder, which is basically tear down the existing building and build new construction.
6:02
SPEAKER_01: So we're doing one as well, but it's just much harder.
6:05
SPEAKER_01: Going from two units to either eight units, or even in some instances, two units to 25 units.
6:11
SPEAKER_01: So that's that par between building ADUs and building new construction 25 units is really, really expensive.
6:19
SPEAKER_01: It's really challenging, and not many contractors want to do that for homeowners.
6:23
SPEAKER_01: So I think it's important to figure out what bucket you're in, whether you're in a really easy get it done quickly, in and out, two bathroom and one kitchen uh remodel, or you're building ADUs, or if you really want, you're building new construction eight units plus.
6:39
SPEAKER_01: Um, and there are a lot of challenges in all three of those options.
6:43
SPEAKER_01: If we want to talk about the challenges on this project or in general, ADUs, look, there's a lot of challenges.
6:49
SPEAKER_01: It's hard.
6:50
SPEAKER_01: The plans are hard, the permits are hard, but depending on what city you get in, specifically Los Angeles City, specifically Long Beach City, um, these things become very easy.
7:02
SPEAKER_01: The second you go to Pasadena, Glendale, I don't know about Long Beach County, but a lot of the LA County projects, the Culver cities, they become much harder.
7:11
SPEAKER_01: So make sure that if you're buying a building for ADUs, you have some wiggle room with the time.
7:16
SPEAKER_01: You're not starting next week, as opposed to if you're buying it uh an empty building and you can renovate really quick.
7:21
SPEAKER_00: For people who are wondering in those cities that you just mentioned, why is it more difficult?
7:25
SPEAKER_00: Is it that deep down inside they don't want them?
7:28
SPEAKER_00: Or is it because they just have just tougher building requirements and they're just going to be difficult?
7:34
SPEAKER_00: Like what's what's the main reason why it's difficult?
7:36
SPEAKER_01: Yeah, it's hard to know.
7:37
SPEAKER_01: Every city has their own issues.
7:39
SPEAKER_01: Look, uh uh, there's a state that we live in the state of California.
7:42
SPEAKER_01: So we'll talk about California.
7:44
SPEAKER_01: The state gave us laws and they gave every single city's laws to follow uh ADU protocol.
7:50
SPEAKER_01: A lot of cities are listening to these to the state law, like for example, City of LA.
7:55
SPEAKER_01: They want more housing, they're pushed.
7:57
SPEAKER_01: Let me say the state mandated every single city to give more housing.
8:03
SPEAKER_01: How many housing units?
8:05
SPEAKER_01: Well, it depends on how many unhoused we have, and it depends on how big the city is and depends on how rich the city is.
8:11
SPEAKER_01: There's a list online.
8:13
SPEAKER_01: Um, some cities are very proactive.
8:15
SPEAKER_01: We want to hit these numbers.
8:17
SPEAKER_01: For example, LA, Long Beach, we want to hit these numbers by 2030 or by the Olympics.
8:22
SPEAKER_01: We want to do this.
8:23
SPEAKER_01: This is acting.
8:24
SPEAKER_01: This is the mayor, this is the city, this is everyone.
8:26
SPEAKER_01: Some cities that are smaller, I won't mention a I won't mention them, but Culver City, the Burbank, the Pasadena, the Glendale, the Anaheim, they just don't want to build.
8:37
SPEAKER_01: So they take the state law, they follow the state law, but they push you and they push you and they push you and they grind you on every single thing.
8:45
SPEAKER_01: So it goes from getting a permit in city of LA for three and a half months to get a permit to Anaheim that takes a year plus.
8:54
SPEAKER_00: Okay.
8:55
SPEAKER_00: So it's important to know if you're someone who's in one of these cities that maybe is not as friendly, uh, if you already own there, well, you already own there.
9:02
SPEAKER_00: And just know going into it is gonna take much longer.
9:04
SPEAKER_00: That's fine.
9:04
SPEAKER_00: If you have time, listen, you've probably owned it for many years.
9:07
SPEAKER_00: So if it takes a year, it takes a year.
9:09
SPEAKER_00: Yeah.
9:09
SPEAKER_00: But if you're a new buyer and you're trying to figure out what city am I gonna go into and you already know that, hey, one of the ways that I'm gonna uh add more value and create wealth for myself and my family is to build these ADUs, maybe choose a city that's a lot more friendly.
9:25
SPEAKER_00: And I could speak on Long Beach.
9:26
SPEAKER_00: They are very pro ADU.
9:28
SPEAKER_00: Yeah, very, very pro.
9:29
SPEAKER_00: And so they're gonna do everything they can to try to get that approved.
9:32
SPEAKER_00: We're not saying it's easy, but if it takes three months to get a permit, great, way better than than uh than 12 months.
9:39
SPEAKER_00: And so again, if you're uh a buyer, you're an investor, let's look into cities where it might be a little bit easier to get to the start of the line.
9:47
SPEAKER_01: Yeah, so then now let's talk about the hardships.
9:49
SPEAKER_01: So again, people that are buying, you're buying.
9:51
SPEAKER_01: You want to buy in the right city.
9:52
SPEAKER_01: Thanks for saying that.
9:54
SPEAKER_01: The question is, is what are the hardships?
9:56
SPEAKER_01: Well, you can fix that with buying the right properties.
9:59
SPEAKER_01: For example, on this project, parking.
10:02
SPEAKER_01: We're on a main street here.
10:03
SPEAKER_01: There is no parking.
10:04
SPEAKER_01: You can't park there unless you live here.
10:07
SPEAKER_01: So, number one for the contractors, but number one for the tenants.
10:10
SPEAKER_01: And there's no parking anywhere.
10:12
SPEAKER_01: So buying a building with good parking, andor if you're gonna convert that parking, where else do they buy?
10:18
SPEAKER_01: My last acquisition, we had a garage in the back.
10:21
SPEAKER_01: We're gonna build four units, but still in the front, we have area for six deck dedicated parking spots.
10:28
SPEAKER_01: So if you can see a building that maybe the back we're gonna turn into ADUs, but in the front we have parking, that's a really, really good thing.
10:36
SPEAKER_01: Um, and it's not just parking, it's tenants in general.
10:39
SPEAKER_00: Yeah, and I'm glad that Joseph is pointing this out.
10:41
SPEAKER_00: A lot of times I'll talk to investors and they have no problem in eliminating parking.
10:46
SPEAKER_00: Like there, it they don't even, it's not even a second thought.
10:49
SPEAKER_00: And part of that process is well, the parking space or the garage is only going to rent for$200,$250.
10:56
SPEAKER_00: And if I, you know, if I build a two-bedroom, I'm gonna get$2,500.
10:59
SPEAKER_00: So which one do you want?
11:00
SPEAKER_00: It's a very easy from a business perspective, but I think it's important to what Joseph's saying is if you're an owner, let's not be so quick to eliminate parking if you could somehow preserve it.
11:11
SPEAKER_00: Because it will make a difference.
11:13
SPEAKER_00: A tenant might move in and they might move out, okay?
11:17
SPEAKER_00: And that's gonna create a problem because a lot of the expenses that we incur when we're an owner is when is when there's turnover.
11:24
SPEAKER_00: Yeah.
11:25
SPEAKER_00: And I get it.
11:26
SPEAKER_00: A lot of us might be watching this and saying, well, don't we want turnover?
11:29
SPEAKER_00: Then, but if you're already at a market rent and you're getting turnover, you're crossing your fingers hoping you could get that market rent again.
11:36
SPEAKER_00: Okay.
11:37
SPEAKER_00: So that's a different thing to consider, but don't always rush to eliminate parking.
11:42
SPEAKER_00: If if they're now listen, if you're in a neighborhood where parking's not an issue, but we're here uh on Olympic Avenue.
11:47
SPEAKER_00: And so it's very busy.
11:48
SPEAKER_00: We can see the traffic behind us.
11:50
SPEAKER_00: And so in this case, I'm glad that you suggested to them.
11:53
SPEAKER_00: Don't tear down the garage and build on top, which I want to get into.
11:57
SPEAKER_00: A lot of people are asking, hey, I want to keep my parking, I want to build on top.
12:02
SPEAKER_00: Is my foundation strong enough?
12:03
SPEAKER_00: Like what's the process?
12:04
SPEAKER_00: Do you have to reinforce the foundation?
12:06
SPEAKER_00: Talk to us about that.
12:07
SPEAKER_01: Yeah, so I mean, this is more structural engineering, and depending on the location, and depending on the height, depending on the type of soil and what you existing have, uh, those are all going to be different markers.
12:17
SPEAKER_01: I'll tell you on this project, client probably spent maybe 150,000, maybe$200,000 more to go up.
12:25
SPEAKER_01: Um, but no, the answer is 90% of the time, we're basically tearing down the garage completely.
12:32
SPEAKER_01: The foundation of these 1940s, the even 2000s cannot support a garage conversion or much more than the second floor.
12:42
SPEAKER_01: They can't support it.
12:43
SPEAKER_01: I mean, you don't know what we did here.
12:44
SPEAKER_01: We basically did cassons on that wall.
12:47
SPEAKER_01: Uh, there are projects that we do that we have methane, we have to figure out a methane solution.
12:51
SPEAKER_01: Like these garages were just thrown in.
12:53
SPEAKER_01: Now we're building second floor, we have I beams in the back.
12:56
SPEAKER_01: Those staircases that I'll show you is a structural iron beam.
13:00
SPEAKER_01: Um, no, you cannot keep the foundation.
13:03
SPEAKER_01: You're basically doing new construction.
13:04
SPEAKER_01: And the only reason we're not saying to do new construction or we're saying to do a conversion of a space um is because it's cheaper to do a conversion when it comes to the city and it's faster to do a conversion, and you technically get more things out of the city on a state law.
13:19
SPEAKER_00: Right.
13:20
SPEAKER_00: And so that's an important thing, is if you could preserve the parking, build on top, know that going into it, it's going to be a lot more expensive.
13:30
SPEAKER_00: But you're probably gonna be happier in the long run.
13:32
SPEAKER_00: I think in the short run.
13:33
SPEAKER_00: Um, Joseph, so talk to us about the two ADUs, how many bedrooms, how many bathrooms?
13:38
SPEAKER_00: Um, did were you able to extend out further than the garage footprint?
13:43
SPEAKER_00: Talk to us about that.
13:44
SPEAKER_00: Yeah, great question.
13:45
SPEAKER_01: Um, this project, we had four-car garage.
13:48
SPEAKER_01: It was 20 uh by 20, and then 20 by 20.
13:51
SPEAKER_01: So very simple stuff.
13:53
SPEAKER_01: What we ended up doing is two one bedroom, one bathrooms on top, uh, 550 on this side, 520 on the other side.
14:01
SPEAKER_01: And it's much bigger than the original garage.
14:04
SPEAKER_01: What we ended up doing is pushing out on the front and pushing out into the back.
14:09
SPEAKER_01: I think we have four feet that side, we have eight feet on that side.
14:12
SPEAKER_01: And what we ended up getting is a really nice overhang in the front, and we actually got storage space in the back on the first floor, and we preserve our existing garage, which I think is really nice.
14:22
SPEAKER_00: Okay.
14:22
SPEAKER_00: So, talk about the process here.
14:24
SPEAKER_00: Um, how long did it take to get uh the building permits?
14:28
SPEAKER_00: Um, share with us costs that you're able to share with us, like like what's this gonna cost the owner?
14:32
SPEAKER_01: Yeah, so obviously cost change, and today we're in the beginning of 2025.
14:36
SPEAKER_01: We bid this project in the beginning of 2024 and then waited until we got it.
14:40
SPEAKER_01: So prices change and locations change, stuff changes all the time.
14:44
SPEAKER_01: Three and a half, the city of LA, three and a half months to get a permit.
14:48
SPEAKER_01: Um, and we kind of went really quick.
14:51
SPEAKER_01: It took us six and a half months to get to this stage.
14:56
SPEAKER_01: I think one of the biggest problems is that it took us an extra month to get our utilities released.
15:03
SPEAKER_01: So that's gas, water, and electricity.
15:05
SPEAKER_01: Mostly the electricity is really a problem.
15:08
SPEAKER_01: You'll know obviously the DWP uh has a big issue in the Palisades.
15:12
SPEAKER_01: And uh DWP used to be two to three weeks to get a meter installed.
15:18
SPEAKER_01: Now they're talking about six to eight weeks.
15:20
SPEAKER_01: So these are really big issues.
15:22
SPEAKER_01: How fast that I get to final inspection?
15:24
SPEAKER_01: Six and a half months.
15:25
SPEAKER_01: When is this thing going to have certification of occupancy?
15:28
SPEAKER_01: Maybe eight months, maybe nine months, which means you can't technically rent these things until you have certification of occupancy and you can't refinance or you can't pay back your HELOC loan.
15:38
SPEAKER_00: Joe, so if it this is three months plus nine months or three months uh prep work and then uh nine months on site.
15:45
SPEAKER_00: On site.
15:46
SPEAKER_00: Okay.
15:46
SPEAKER_00: So then the three months they would call soft cost.
15:48
SPEAKER_00: You know, that's that's all the soft costs, and then nine months of building.
15:51
SPEAKER_00: But you you build a tremendous, tremendous property here.
15:55
SPEAKER_00: I mean, they didn't spare anything here.
15:57
SPEAKER_00: This was a lot of times we walk into ADUs and it just depends on where you're at.
16:00
SPEAKER_00: If you're in a market where you're like, hey, I wanted to keep it basic and simple.
16:04
SPEAKER_00: Uh I think I could tell from where we're at in Los Angeles that this is uh a much trendier market and and and and people wanted to build to keep up with that demand.
16:13
SPEAKER_00: And Joseph, you did a great job with this building.
16:16
SPEAKER_00: Thank you.
16:16
SPEAKER_00: Talk to us about because I know you you you mentioned to us, you said, hey, Juan, building with tenants is difficult.
16:24
SPEAKER_00: Share with our viewers on what you mean by that.
16:26
SPEAKER_01: Yeah, so what a lot of investors kind of forget is what goes around the ADUs.
16:31
SPEAKER_01: A lot of times, ADUs, I'm getting calls from investors and say, I want to put up two ADUs, but I think it's a lot more than that.
16:37
SPEAKER_01: You touched on soft cost, you touched on the building.
16:40
SPEAKER_01: But DWP and LA City basically want us to renovate the entire main building, specifically electricity, specifically plumbing.
16:49
SPEAKER_01: So when we talk about tenants, we actually had to go into every single one of these units and upgrade their electrical permit, uh, their electrical panel.
16:57
SPEAKER_01: Not only did we have to install an electrical subpanel, but we also had to upgrade their electricity.
17:04
SPEAKER_01: That means new GFC eyes in the kitchen, the bathroom, new fans, make sure we're checking for asbestos.
17:10
SPEAKER_01: These are all really, really doesn't have to be expensive.
17:14
SPEAKER_01: They're just time-consuming things that we need to do.
17:17
SPEAKER_01: And we have to really get inside these people's units.
17:21
SPEAKER_01: That means as little as uh just scheduling with them, like the admin work, making sure we're giving them 48 hours, making sure that we're finishing these projects relatively quick, like in one day, you know, at nine o'clock in the morning until uh four o'clock.
17:36
SPEAKER_01: And then the electrician needs to leave.
17:38
SPEAKER_01: We have to turn off power onto this property because uh these tenants have rights.
17:43
SPEAKER_01: Of course, we have to let them know before we turn it off.
17:46
SPEAKER_01: We can only turn it off for a specific amount of time.
17:48
SPEAKER_01: We have to turn off gas to upgrade the gas, we have to turn off water to upgrade the water line, we have to upgrade the sewer lines on these things.
17:55
SPEAKER_01: So, you know, you asked me how much an ADU costs.
17:57
SPEAKER_01: Well, the question is, how much is it gonna cost to uh renovate your building?
18:00
SPEAKER_01: Let's talk about low voltage for a second.
18:02
SPEAKER_01: I had low voltage lines, just as simple as Spectrum and ATT uh uh uh wires touching my new ADU building because it's on a second floor.
18:11
SPEAKER_01: I gotta call Spectrum, I gotta make sure I don't turn off their intranet for a long time.
18:16
SPEAKER_01: I gotta be here while Spectrum is working, I gotta explain to Spectrum what to do.
18:20
SPEAKER_01: These are all really, I mean, you laugh, but these are things that number one, when a contractor is building for an investor, he wants to make sure that his tenants are safe.
18:28
SPEAKER_01: But even when you are an owner and you are building and you are managing your contractor, you still don't want to turn off the the the uh the spectrum or the internet for your tenants and then just leave them hanging.
18:40
SPEAKER_01: You are the one, someone it needs to be the one that deals with all these things and of course pays for them.
18:47
SPEAKER_00: So I'm glad you mentioned this because sometimes we were like, oh, hey, it's a no-brainer, go ahead and build the ADU.
18:52
SPEAKER_00: There, in this case, the logistics of dealing with the tenants is gonna be somewhat of a nightmare.
18:58
SPEAKER_00: I would say for the property manager, for the owner, and for the contractor.
19:01
SPEAKER_00: And so just be aware.
19:04
SPEAKER_00: Is it a smart investment decision if you could pull it off?
19:07
SPEAKER_00: The answer is yes.
19:08
SPEAKER_00: Also, know that there's gonna be a lot of calls and probably a lot of complaints from the tenants for all these reasons.
19:15
SPEAKER_00: And it's gonna go on for the nine months that it took to build.
19:18
SPEAKER_00: Definitely.
19:19
SPEAKER_01: I mean, look, on this project, we were very nice.
19:23
SPEAKER_01: The tenant, so three of these uh units are actually at market rent, one is not at market rent.
19:29
SPEAKER_01: But the cool thing is, is when we got on site, um, one of the tenants that wasn't paying market rent already left.
19:35
SPEAKER_01: So already what we did was flip one of those units very, very quickly.
19:39
SPEAKER_01: The thing was is we have three tenants that my client really wants to keep.
19:44
SPEAKER_01: They're all paying market rent.
19:45
SPEAKER_01: All of the units are renovated, but they're all paying market rent.
19:48
SPEAKER_01: So I have to be very nice to them.
19:50
SPEAKER_01: What I had to do is I had to open up a WhatsApp group and an email chain with them, let them know what I'm doing at all times.
19:55
SPEAKER_01: At any point, these tenants can come to me and say, Hey, like my hot water is not working, blah, blah, blah, or even and which might be my fault for sure.
20:03
SPEAKER_01: But at any point, they're saying, Hey, something is not working in my unit.
20:08
SPEAKER_01: Now my owner is telling me go fix it as if I am a handyman because I'm a contractor on site.
20:14
SPEAKER_01: So remember, when you're a contractor, have in your contract to not do handyman work that is not that you're not responsible for.
20:22
SPEAKER_01: But also when you're an owner, please make sure to know that these c these tenants are on site and they they want respect, they want dignity, and we are doing a big project on the outside.
20:32
SPEAKER_01: So make sure you're keeping them happy so they don't leave.
20:35
SPEAKER_01: Okay.
20:36
SPEAKER_00: So one thing that Joseph talked about is um, you know, when you're building the ADU, this is the time that the city is gonna really uh tighten the screws.
20:44
SPEAKER_00: Yeah.
20:45
SPEAKER_00: And they're gonna say, uh, because the city, you know, they're smart.
20:48
SPEAKER_00: They're gonna say, this is the one way that we're gonna force to get upgrades on an older building.
20:52
SPEAKER_00: And so this is gonna happen in any city.
20:54
SPEAKER_00: And so I'm sure this is the main motivation is sure, we'll give you your ADUs, uh, Mr.
20:58
SPEAKER_00: and Mrs.
20:59
SPEAKER_00: Investor Board, we'll give you that.
21:00
SPEAKER_00: But now we want new electrical panels for the building.
21:03
SPEAKER_00: Yeah.
21:03
SPEAKER_00: And I've seen this, you know, we you know, then now that we're selling buildings and and and we get a listing and it and it's so many units plus ADUs.
21:11
SPEAKER_00: And I look at the electrical panel, and it looks like it belongs in an industrial building.
21:16
SPEAKER_00: It's so heavy.
21:17
SPEAKER_00: And we saw this here, not just subpanels, because subpanels to me aren't that scary.
21:21
SPEAKER_00: This is like all new meters in the boxes, and I don't know what they're all called, but I'm like, oh boy, that's gonna cost money.
21:29
SPEAKER_00: It's gonna cost uh interruptions to the tenants.
21:32
SPEAKER_00: So sometimes just no going into it, there's the ADU cost, and then there's the upgrades to the major systems on the other one.
21:39
SPEAKER_00: Now, some of you watching could say, well, my insurance is being canceled and I was gonna have to upgrade it anyways.
21:47
SPEAKER_00: Okay, all right, all right.
21:48
SPEAKER_00: So that's one way to look at it.
21:50
SPEAKER_00: That's true.
21:51
SPEAKER_00: This the the the insurance was gonna make you do it one way or the other.
21:54
SPEAKER_00: And and now you're forced to do it.
21:56
SPEAKER_00: But there's gonna be additional costs when you're taking on this type of project.
21:59
SPEAKER_00: Yeah.
21:59
SPEAKER_00: I mean.
22:00
SPEAKER_01: Just it's a quick like it's a quick thing.
22:02
SPEAKER_01: It's even for single family homes or multifamily homes, cities are really, really making sure that everything is permitted on your unit.
22:09
SPEAKER_01: So, for example, if you're uh a homeowner, single family, and you have an unpermitted shed or you have an unpermitted addition, you do not want to build an ADU unless you are willing to either fix that issue or demo that issue.
22:22
SPEAKER_01: And then again, when we talk about multifamily, look, they want you to upgrade, they want you to pay more taxes, they want you to pay more fees.
22:29
SPEAKER_01: Uh, electricians are making a ton of money on they're getting rich off ADUs specifically because of these panels.
22:36
SPEAKER_01: But yeah, you want to know the numbers.
22:37
SPEAKER_01: I mean, this whole thing with the panel and the subpanels in the unit and upgrading the units, uh, this is a$50,000 project.
22:44
SPEAKER_01: So just from the just electrical electrical, just electrical main building.
22:49
SPEAKER_01: And even more than that, I don't want to say uh too much detail, but we had to pay over$10,000 to fix an issue that DWP had with this uh um pole, with the electrical pole.
23:02
SPEAKER_01: So this is this is like when we talk about soft costs, we talk about the architectural, the structural, the building permits that are expensive, but also height survey, uh uh uh um uh a boundary survey and upgrade a DWP pole out of nowhere.
23:18
SPEAKER_01: Like these are crazy things that sometimes need to happen to upgrade that electrical pole.
23:24
SPEAKER_00: Joseph, so we'll get into cost, yeah.
23:27
SPEAKER_00: But um I'm just curious.
23:30
SPEAKER_00: So, you know, we're hearing tariffs, material costs is gonna go through the roof, um, labor's gonna be uh much more expensive.
23:40
SPEAKER_00: They have to rebuild all these homes in Pacific Palisades, Altadena, and these are thousands of homes.
23:48
SPEAKER_00: Could you even get a contractor right now?
23:50
SPEAKER_00: And it and how hard is it now to build?
23:52
SPEAKER_01: I think that tariffs are one thing.
23:55
SPEAKER_01: I think the labor is going to be a lot more challenging.
23:58
SPEAKER_01: I think we're building really nice houses in the Palisades.
24:02
SPEAKER_01: I'm not touching the Palisades, but I'm going to Altadena and we're building a lot of multifamily in Altadena.
24:06
SPEAKER_01: We're building houses in Altadena.
24:08
SPEAKER_01: I think everyone wants to pay for a contractor, everyone wants to pay top tier and top level for a contractor.
24:15
SPEAKER_01: And I think the good contractors are gone.
24:18
SPEAKER_01: Or at least if you don't have a relationship with a good contractor, then you're left with a lot of bad contractors.
24:24
SPEAKER_01: I'm gonna make it, I'm gonna break it down really simple.
24:27
SPEAKER_01: I get a lot of calls and I talk to a lot of people.
24:30
SPEAKER_01: There are subcontractors that I have blacklisted on my phone.
24:34
SPEAKER_01: I've used them, I've saved the number, I have them, I have paid them money, and they are bad subcontractors.
24:39
SPEAKER_01: These people are calling me all the time.
24:41
SPEAKER_01: They need work.
24:43
SPEAKER_01: Bad subcontractors need work, and bad general contractors are looking to me and saying, hey, do you have work for us?
24:50
SPEAKER_01: We'll even sub-sub you.
24:52
SPEAKER_01: A lot of them.
24:52
SPEAKER_01: And then the good contractors, right now, they are so busy.
24:57
SPEAKER_01: We are really busy, thank God.
24:59
SPEAKER_01: I really, I'm very happy with where I am.
25:01
SPEAKER_01: I I pray that everything works out well.
25:04
SPEAKER_01: And I have a lot of friends that are doing really good work, really good contractors that are just so busy, and especially 2026, 2027, 2028.
25:13
SPEAKER_01: So I'm thinking labor.
25:15
SPEAKER_01: Labor is going to be really important in the marketplace because materials we'll get, we'll figure out different types of materials.
25:21
SPEAKER_01: Humans uh evolve and materials evolve, especially the fire-rated walls, especially the fire sprinklers.
25:28
SPEAKER_01: But labor is something that will not evolve unless we seriously figure out a way to bring a new labor force in here.
25:35
SPEAKER_01: Um, and that's because the people in the Palisades and the rich and the famous will build houses for expensive at any cost.
25:42
SPEAKER_01: And what's going to be left for Altadena or City of LA, or even as far as Long Beach, is going to be either secondary contractors that want a piece of the pie, but they really are secondary contractors, or more important, secondary subcontractors that just have not graduated to a level of building ADUs, of building buildings, of building single family houses.
26:05
SPEAKER_01: Be very, very worrisome if you plan on building a project and contractors that are building those types of uh uh projects do not want to do not want to take your project, and you are going to a secondary contractor that has been building maybe kitchens and bathrooms for a little bit of time, and now he's telling you he can build uh buildings or he can build multifamilies.
26:26
SPEAKER_01: It's a gradual step, and every single one of us is all going to take a big step forward and build up LA, but make sure that you're picking the right contractor or at least have a good relationship with him.
26:38
SPEAKER_00: Joseph, um, when people talk about building, you know, sometimes they'll use, you know, they'll throw out some numbers and I'm not gonna hold you to them, but what's the cost of building in 2025 per square foot uh new construction?
26:51
SPEAKER_01: Yeah, more or less.
26:53
SPEAKER_01: Yeah, yeah.
26:53
SPEAKER_01: Price per square foot is really hard because I think it depends on the type of square footage.
26:58
SPEAKER_01: Right.
26:58
SPEAKER_01: Um, I mean, I won't hold you guys too much.
27:01
SPEAKER_01: This is a$550,000 job.
27:03
SPEAKER_01: Um, the electrical panel is a$50,000 job.
27:06
SPEAKER_01: The main building uh was$65,000, and then upgrades on that was another$25,000,$35,000.
27:14
SPEAKER_01: Soft costs were anywhere between, I think it's like$25,000 or$35,000.
27:18
SPEAKER_01: Depends on that.
27:19
SPEAKER_01: So that's your project scope.
27:20
SPEAKER_00: This is all of it is$550 or or it's$550 plus all the things you mentioned.
27:25
SPEAKER_00: $550, plus plus, plus, plus, plus.
27:26
SPEAKER_00: It's a$750,000 job that we did here.
27:28
SPEAKER_00: Okay.
27:29
SPEAKER_00: Give or take.
27:29
SPEAKER_00: Got it.
27:30
SPEAKER_00: Um, okay, so$750,000, but we're ending up with two beautiful units.
27:36
SPEAKER_00: We're preserving, we're we're preserving the garages.
27:39
SPEAKER_00: He built storage behind the garages because earlier on he said that they actually went bigger on the upstairs units.
27:45
SPEAKER_00: And so then they they had to support it.
27:47
SPEAKER_00: And so why not use that space?
27:49
SPEAKER_00: And they made this asset, the existing fourplex, with all the right improvements that are going to be great for the next 40, 50 years.
27:56
SPEAKER_00: And renovated the third unit.
27:58
SPEAKER_00: So, so it's expensive.
28:00
SPEAKER_01: It's expensive, but I'll say it depends on the price on the type of uh uh square footage that you have.
28:05
SPEAKER_01: The type of square footage that you have really, really changes it.
28:08
SPEAKER_01: If this was not second floor and it was two garages, these garages looked pretty good.
28:12
SPEAKER_01: I would cut that number in half, even more.
28:15
SPEAKER_01: And I think that if the the uh the client or the investor here didn't want to do all the hardscaping, all the landscaping, we wouldn't have had the DWP pole, we wouldn't have so much.
28:26
SPEAKER_01: So it there's it's really hard price per square foot.
28:28
SPEAKER_01: It depends on price per square foot per project.
28:31
SPEAKER_00: Let's if you can, uh let's just talk about someone owns a fourplex, they have garages in the back, and they're gonna make, say, two ADUs with the garages, they're not gonna make them any, they're not gonna extend them.
28:44
SPEAKER_00: What would something like that cost?
28:45
SPEAKER_00: I mean, even if it's if it was like a two-car garage turning into, I don't know if you could get a one bedroom in it, but or a studio, but what does that cost if someone says, you know what, I'm just gonna add one unit.
28:55
SPEAKER_00: I'm not trying to go grandiose.
28:57
SPEAKER_00: I just want to add one extra unit.
28:58
SPEAKER_00: I want to do my job, I want to build an ADU, I want to add value, but I don't need to maximize.
29:03
SPEAKER_00: What would something like that go for now?
29:05
SPEAKER_01: It really depends on the type of square footage and it depends on uh the type of project and existing site conditions.
29:11
SPEAKER_01: But look, average two-car garage, one bedroom, one bathroom is probably 130k plus plus plus.
29:17
SPEAKER_01: So again, the plus plus plus is so important.
29:21
SPEAKER_01: What is the type of foundation that you have in the garage?
29:24
SPEAKER_01: What is the existing site?
29:25
SPEAKER_01: What do we have to upgrade anything else?
29:28
SPEAKER_01: Do we have to do hardscaping, landscaping?
29:30
SPEAKER_01: Do we have to demo, remove trees, whatever it is?
29:33
SPEAKER_01: So it is a plus plus plus.
29:35
SPEAKER_01: Four-car garage into one unit might be 200k.
29:38
SPEAKER_01: So you double you double the square footage and you only pay 25% more.
29:43
SPEAKER_01: That being said, four-car garage two units might be 250, maybe$300,000.
29:49
SPEAKER_01: So I think again, every single project is very different in every single location.
29:54
SPEAKER_01: We'll also talk about labor for a quick second.
29:56
SPEAKER_01: Labor in the city of LA or or Palisades will be the most expensive labor in the nation.
30:02
SPEAKER_01: When we go down south to Long Beach, for sure, a lot of your laborers are coming to Los Angeles, coming north.
30:09
SPEAKER_01: I don't blame them.
30:09
SPEAKER_01: Yeah, I don't blame them.
30:10
SPEAKER_01: They're gonna get paid$500 a day.
30:12
SPEAKER_01: It's crazy.
30:12
SPEAKER_01: But I'm I'm saying, like, if you're watching this video and you're in Bakersfield, or if you're watching this video or you're in Northern California, or in some area in uh San Diego or on Riverside, your price per square foot is going to be much cheaper.
30:25
SPEAKER_01: That's it.
30:26
SPEAKER_01: Like we are in the most expensive labor in America right now.
30:30
SPEAKER_00: So let's talk about two things.
30:31
SPEAKER_00: Um, this year in 2025, you know, it was interesting.
30:35
SPEAKER_00: When the ADU law passed, they said only on single family homes, only, right?
30:39
SPEAKER_00: And then every year the laws kept updating.
30:41
SPEAKER_00: And then it came to like, okay, you if you own apartment buildings, now you could add ADUs, which that's where you should have been able to add them from the beginning because that made the most sense.
30:48
SPEAKER_00: But they said you can only add 25% of your existing unit mix.
30:53
SPEAKER_00: Okay.
30:53
SPEAKER_00: So if you had a fourplex, you could only add one unit.
30:56
SPEAKER_00: Then it changed.
30:56
SPEAKER_00: You have a fourplex, you could add two.
30:59
SPEAKER_00: Well, in 2025, if you have a four unit and if you have the space parking lot in the back, you can now build four, which is great.
31:07
SPEAKER_00: Uh, we have a client doing this right now in Long Beach, and they haven't broken ground, but but they've gotten the permits on the four units.
31:16
SPEAKER_00: She they called us, we sold them the fourplex.
31:19
SPEAKER_00: Hey, our our engineer is telling us we could go to four.
31:21
SPEAKER_00: I'm like, go to four.
31:22
SPEAKER_00: Yeah.
31:22
SPEAKER_00: If you could afford it, go to four.
31:24
SPEAKER_00: This is the time to do it.
31:26
SPEAKER_00: So talk about that law, and if people are taking advantage of it, but also like okay, so the the way that I'm looking at this, costs are gonna keep going up.
31:35
SPEAKER_00: Material and labor is gonna continue going up.
31:38
SPEAKER_00: Okay.
31:39
SPEAKER_00: So if you're in a position where you could build now, I would say build now that is cheaper.
31:44
SPEAKER_00: Because they're gonna say, well, it's expensive.
31:47
SPEAKER_00: It's never gonna be this cheap.
31:48
SPEAKER_00: It's expensive, it's never gonna be this cheap again.
31:51
SPEAKER_00: So in a way, it's my recommendation is if you could build, I'm not gonna tell someone to wait.
31:57
SPEAKER_00: I'm gonna say go now.
31:59
SPEAKER_00: Someone might say, well, yeah, but labor costs will drop.
32:02
SPEAKER_00: And I don't, I, you know, maybe after everything's built, but when is this?
32:05
SPEAKER_00: You're five years from now, six years from now?
32:07
SPEAKER_01: Labor costs will not go down.
32:10
SPEAKER_01: Material cost will not go down.
32:13
SPEAKER_01: It they're just getting more expensive.
32:15
SPEAKER_01: It's crazy.
32:16
SPEAKER_01: From the beginning of my career to 2020, labor cost doubled from 2020 to 2025, labor cost is probably 60, 70, 100% higher.
32:27
SPEAKER_01: Labor costs tripled uh in the last 10 years.
32:30
SPEAKER_01: I swear, it's crazy.
32:32
SPEAKER_01: Material costs as well.
32:33
SPEAKER_01: Sometimes you can't even find material, sometimes you can't even find labor.
32:37
SPEAKER_01: So, yeah, the best time to build an ADU was five years ago.
32:40
SPEAKER_01: The best time to build an ADU is now.
32:43
SPEAKER_01: That being said, really quick, is if you look at this project, he's been working on this project since 2020.
32:49
SPEAKER_01: Uh so since 2022, excuse me.
32:51
SPEAKER_01: Um, what ended up happening was originally he was only going to do two ADUs on the floor in 2022.
32:58
SPEAKER_01: I told him to do two ADUs on the second floor.
33:01
SPEAKER_01: But if he would have called me today, which is basically a year and a half later, I would have told him, forget the garage on the bottom, build four units.
33:10
SPEAKER_01: So, in one perspective, I hear it.
33:12
SPEAKER_01: I don't hear the labor that you said.
33:14
SPEAKER_01: If clients are telling you, hey, it's going to be cheaper in five years, it will not.
33:18
SPEAKER_01: But if you tell me, hey, laws might change.
33:21
SPEAKER_01: Right now I have a duplex and I might want to tear it down to build 50 units, and right now I can only build 10 units, yeah, maybe wait.
33:28
SPEAKER_01: But for the simple investor that wants to get in and out, yeah, build it now before it's too late.
33:33
SPEAKER_01: I promise you, it will not get cheaper.
33:35
SPEAKER_01: You're talking about a new law.
33:37
SPEAKER_01: It's called SB1211.
33:39
SPEAKER_01: It's probably the biggest law.
33:41
SPEAKER_01: It's the biggest change since 2020.
33:44
SPEAKER_01: Um, it's huge.
33:46
SPEAKER_01: It basically is one-to-one units, uh, up to eight units.
33:50
SPEAKER_01: So if you have a duplex, you can build two triplex, three, fourplex, four, five, six, seven, eight units, you can build the exact same.
33:58
SPEAKER_01: Um, I think it's going to be the right thing to do.
34:02
SPEAKER_01: And there's only two caveats.
34:04
SPEAKER_01: Make sure that if you're buying these spaces, you have a really big backyard.
34:08
SPEAKER_01: It's easy to say, oh, I have an eight unit, I want to build eight units, but remember, it has to be detached.
34:14
SPEAKER_01: That means if you have an eight-unit apartment building, you better have 5,000 square feet, 10,000 square feet in the back if you want to build uh eight ADUs.
34:22
SPEAKER_01: Or on the flip side, if you even have a fourplex, you still need seven, eight thousand square feet.
34:28
SPEAKER_01: So make sure you're buying things with big backyards.
34:31
SPEAKER_00: Um, Joseph, a lot of people, you know, ADUs is blown up everywhere.
34:37
SPEAKER_00: Um, what's the best way for people to contact you?
34:42
SPEAKER_00: Because I Joseph's in a situation where he's he's he's very popular, both on Instagram, both on YouTube.
34:49
SPEAKER_00: And a lot of people are calling him and saying, This is what I have.
34:51
SPEAKER_00: How much how much you're gonna charge me?
34:53
SPEAKER_00: And and listen to what he's saying.
34:55
SPEAKER_00: Is like, you know, he could give you a ballpark figure, but to really give someone um a ballpark range, do you have to go on site, Joseph, to see it?
35:02
SPEAKER_00: Or do you Google Earth Day?
35:04
SPEAKER_00: Like, how do you want to do it?
35:05
SPEAKER_00: How far will you go?
35:07
SPEAKER_01: Yeah, so it's a good question.
35:09
SPEAKER_01: Um look, the best way to reach me is josephparetz.com.
35:14
SPEAKER_01: Uh, over there I have a free, you can schedule a free 15-minute call with me.
35:18
SPEAKER_01: I'll take the calls.
35:19
SPEAKER_01: I personally take all the calls.
35:21
SPEAKER_01: I like the calls.
35:22
SPEAKER_01: I do my first call on a phone.
35:25
SPEAKER_01: Whether or not I want to work with you, whether or not you are the right fit, or even if your project makes sense, I will guide you for 10, 15 minutes for free.
35:33
SPEAKER_01: I'm happy to do it.
35:34
SPEAKER_01: I like it.
35:36
SPEAKER_01: Um, if it goes above that, the next step is really either A, coming on site, B, looking at the plans in detail, or C, as quickly as, okay, we can get started.
35:47
SPEAKER_01: I know the project, I know the area, I know what you have, you've explained it very well.
35:51
SPEAKER_01: I've been on Google Earth.
35:53
SPEAKER_01: Let's do a uh a design contract.
35:55
SPEAKER_01: Let's go get um a survey done and let's start this architectural plans.
36:00
SPEAKER_01: But for the most part, what I like to do is I take a uh first call.
36:03
SPEAKER_01: If I'm interested in the project, if the homeowner is interested in me, I will come on site and we'll figure out what the best scenario is for you.
36:10
SPEAKER_01: I do this for free.
36:11
SPEAKER_01: I like it, it's part of my business model.
36:13
SPEAKER_01: As for how far I'm going, look, thank God I'm doing very well.
36:18
SPEAKER_01: So I I want to say that I'll go as far as life will take me, but I'm not really expanding.
36:24
SPEAKER_01: I'm taking a lot of Los Angeles projects.
36:26
SPEAKER_01: They're very easy, they're efficient.
36:27
SPEAKER_01: Los Angeles really likes um ADUs.
36:31
SPEAKER_01: I like Culver City, I like Inglewood, I like Burbank.
36:34
SPEAKER_01: I sometimes like Glendale.
36:35
SPEAKER_01: I have a lot of projects in those areas.
36:37
SPEAKER_01: I do Beverly Hills a lot and I do West Hollywood very little, but it's in my area.
36:41
SPEAKER_01: I'm happy to do it.
36:42
SPEAKER_01: I'm a I'm a 405 to 101 to uh uh the 170 kind of guy.
36:48
SPEAKER_01: That's all I'm at.
36:49
SPEAKER_00: Got it.
36:50
SPEAKER_00: And and I mean, right now you're busy on multiple sites.
36:56
SPEAKER_00: Do you want to take in more calls?
36:58
SPEAKER_01: Yeah, look, I'm here to help everyone.
37:00
SPEAKER_01: ADUs changed my life.
37:02
SPEAKER_01: So I'm here to help everyone.
37:04
SPEAKER_01: I have a course on how to build your own ADU, how to save$20,000 on the course.
37:09
SPEAKER_01: So if you go to my website and you're out of Los Angeles or you don't have the budget or you want to do it by yourself, you buy the course.
37:17
SPEAKER_01: The course is a couple hundred bucks, you learn how to save$20,000 on a garage conversion.
37:21
SPEAKER_01: And we're doing a secondary course on how to build multi-families as well.
37:25
SPEAKER_01: So, you know, there's something for everyone.
37:27
SPEAKER_01: At the end, I say a lot.
37:29
SPEAKER_01: When I was younger, uh, no one wanted to train me, no one wanted to help me, no one wanted us to be part of this business.
37:35
SPEAKER_01: And and a lot of contractors still are like that.
37:39
SPEAKER_01: ADUs gave me a different life, a different career.
37:42
SPEAKER_01: ADUs changed my life.
37:43
SPEAKER_01: Like I'm happy to share ADU content on YouTube for free.
37:47
SPEAKER_01: I charge a little bit of money for something a little bit more in-depth.
37:50
SPEAKER_01: I take free 15-minute calls, schedule them.
37:53
SPEAKER_01: I'm happy to help everyone, really.
37:54
SPEAKER_01: I want to see more ADUs.
37:56
SPEAKER_00: Um, yeah.
37:57
SPEAKER_00: Joseph, I'm gonna give you the final word.
37:59
SPEAKER_00: And if there's anything that I miss that like a commonly asked question that you get, uh please feel free to share it.
38:04
SPEAKER_01: Yeah, I think the biggest thing is what can I do on my project?
38:08
SPEAKER_01: I think the best way to do it is to call local people, local architects, local contractors, and your city to figure out what you can do.
38:17
SPEAKER_01: Today, there are so many different options, both on single family and multifamily.
38:22
SPEAKER_01: And it's hard to navigate.
38:24
SPEAKER_01: Go down, do some research.
38:26
SPEAKER_01: You are the owner of your own property.
38:28
SPEAKER_01: Go down to the city and tell them this is what I have.
38:31
SPEAKER_01: What can I do?
38:32
SPEAKER_01: Not this is what I want.
38:34
SPEAKER_01: What can I do?
38:35
SPEAKER_01: Give me some options.
38:36
SPEAKER_01: And if it's going to cost you 200 bucks for uh uh uh someone to speak to, maybe an architect, or maybe you have to do office hours with an inspector, do it.
38:45
SPEAKER_01: Don't expect things for free because a lot of times I get these calls like, hey, uh, you're the sixth contractor that called me and you're the only one that's telling me I can do four units.
38:54
SPEAKER_01: And I'm like, yeah, you can.
38:55
SPEAKER_01: I know you can.
38:56
SPEAKER_01: The other six contractors, maybe they don't know.
38:58
SPEAKER_01: Maybe you were rude to them, or maybe you expected something for free.
39:02
SPEAKER_01: Go down, do your homework, keep doing your homework until you figure out what works for you.
39:08
SPEAKER_00: There you have it, folks.
39:09
SPEAKER_00: I hope you guys enjoyed the interview with Joseph Peretz, Neil Builders.
39:12
SPEAKER_00: Joseph, dude, thank you so much, man.
39:14
SPEAKER_00: I do it's it's I've it's been an honor to uh to work with you, to see your growth, see your success.
39:20
SPEAKER_00: You're married now.
39:20
SPEAKER_00: Congratulations.
39:22
SPEAKER_00: And, you know, we're we're entrepreneurs, we're doing this, we both understand that this is hard work.
39:28
SPEAKER_00: Um, being on camera is something, you know, Joseph had uh uh visions of being a contractor and doing this stuff, but at no point did he think he was going to be on camera doing interviews like he does today.
39:37
SPEAKER_00: But now it's part of our business and we've had to adapt and incorporate all this.
39:41
SPEAKER_00: And so uh for me to see another fellow entrepreneur doing it, I tip my hat to you.
39:47
SPEAKER_00: And it's cool to see the success.
39:49
SPEAKER_00: I'm glad that you're busy.
39:50
SPEAKER_00: And um, make sure you follow Joseph on his YouTube channel.
39:54
SPEAKER_00: We'll make sure to have it in the link.
39:56
SPEAKER_00: Uh, make sure to like, comment, and subscribe.
39:58
SPEAKER_00: Support Joseph's business, give him some referrals, give him some leads, let them know that you heard of them.
40:03
SPEAKER_00: You probably already knew them without this video, but let them know that you saw him on Juan's video.
40:08
SPEAKER_00: And thank you guys so much until next time.
40:11
SPEAKER_01: Thanks, guys.