Synopsis:

Welcome to Episode 20 of the Crushing it in Real Estate Podcast! This week we have Adam Oback and Bobby Nilsen, two SF Bay Area real estate elites transacting 157 million in 3 years! Join us this week as we sit down with these guys to discuss their stories, success, and lessons learned. Please enjoy!

Website: http://thevalleyinvestors.com/

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Bryan: [00:00:00] Hey everyone. And welcome to another episode, Crushing Real Estate with Bryan Pham, where we interview real estate professionals around the industry. If you can go to this episode, please subscribe to the show and leave a very positive review. We release an episode every single Sunday. So, stay tuned.

Enjoy!

Hey guys. Welcome to another episode of Crushing It in Real Estate. This week, we have Adam and Bobby, Adam and Bobby have hit $157 million in transactions in three years. They’re also known as the Valley investors. They also give presentations around the San Francisco Bay area, Adam and Bobby. Welcome to the show guys.

Awesome. Can you kind of walk us through who you are and your real estate journey, how you got into it?

Bobby: [00:00:49] So I’m Bobby and 

Adam: [00:00:51] I’m Adam. 

Bryan: [00:00:51] There we go.

Bobby: [00:00:53] So we got started in real estate, actually a little more than three years ago, right after the crash picked up a couple of properties. And even before then, before the crash, we each got licensed. Part of it for both of us is at least for me, mainly I was looking at being an agent, Oh, not the agent in the Bay area. It was figuring, you know, this is, this is how I’m going to, you know, make my mark yeah. Got my license, uh, worked for a broker and just fucking hated it. It was quickly realized. Yeah, no, I don’t want to be the top agent. And just started looking at more of the investing side, because that’s just where I knew them. You know, making the money for yourself was making your empire for your family kind of is, is on the investing side, buying and holding and more of going into that aspect of real estate. I dropped the real estate agent. They probably right after the crash. So, it was partly timing too. There was just, you know, someone who’s new getting into it, still going to school and stuff like that. A little bit tougher. Yeah, my main focus was on investing and kind of had that on the back burner three years ago, Adam and I joined forces and now we’re going out at full blast and just awesome.

Bryan: [00:02:04] How’d you guys meet? If you don’t mind me asking 

Bobby: [00:02:06] College.

Bryan: [00:02:06] You guys met in college. 

Bobby: [00:02:07] We were both. Yeah, we actually both helped start up the, uh, the pike fraternity at San Jose state. Okay. We met probably close to 20 years ago. About a good 18 years ago. 

Bryan: [00:02:17] I almost thought you guys were going to say you guys met seven years ago. My man. You guys look so young. 

Adam: [00:02:23] Appreciate that. Yeah, no, it’s um, when you love what you do, you know, it slows the aging process down.

Bryan: [00:02:28] That’s good to know. Probably for me, I’m Asian law right now, If I’m losing money. I don’t love what I do.

Adam: [00:02:36] It’s happened to us. It’s happened. Every serious investor. We know, as, as last year, last year and a half. 

Bryan: [00:02:42] How about, what are you? What’s your story Adam? How’d you get into it?

Adam: [00:02:45] So it’s kind of the same. I’ve always kind of joked that Bobby and I, we, we both went to San Jose state myself. I was studying business management, uh, after probably about three and a half years, maybe four years of that.

I, uh, I ended up dropping out. I was just sick of it. All these micro, macro-economic supply chain management, just kind of like being counting bullshit. I wasn’t really into it. I ended up dropping out, took a lot of classes at both West Valley, and DeAnza probably took about 37-40 classes, including all of them, the big one being there, their entire real estate program, much of photography, arts mechanics, and seeing judo.

You name it. So, whatever I can get my. Uh, I was just, I still wanted to learn. I just didn’t want to keep learning business management. Um, what’s funny too, is Bobby and I even ended up bumping heads. And one of those classes just randomly, like, we’d be going for our, uh, our real estate license at the time.

We had always kind of joke back in college that we’d be sitting in like a business class. You have this huge like macroeconomics book and inside of it, we’d have like a little book on real estate that we were secretly reading during our, 

Bryan: [00:03:51] you guys have this interest for a while now.

Adam: [00:03:53] Long time. Yeah. Since probably late teens, early, especially early twenties, 

Bobby: [00:03:58] even before we got licensed.

I know I was. And we went to a couple of those conferences where you had Donald Trump speaking, Tony Robbins, Robert Kiyosaki.

Adam: [00:04:06] I think we just ran into each other at that one too, right? 

Bobby: [00:04:08] Yeah. 

Adam: [00:04:08] That was way back in the day. I think I was like 20, 21. So yeah, this would have been a good 16 years ago. We, we, we just saw each other.

There were like, Oh, what are you doing here? You know? So, I think he ended up crashing on our floor one night. They’re staying with us, you know? Yeah. 

Bryan: [00:04:23] That’s, that’s a great story about partnerships and everything, you know? Cause I think at a younger age, for most of our listeners listening, like you don’t know who you’re going to meet, who you have synergy with and the fact that you guys met so early on and the fact that you can see each other again, it builds that trust. Among each other to go out there and do these real estate transactions together.

Bobby: [00:04:42] Timeframe too. We’d done a couple others, you know, should get in again, businesses that we run, you know, just always had the entrepreneurial mindset where let’s try to start something and keep going at it. We ever started something where we’ve, where we’ve, uh, kind of just tanked it. And it’s been just like a total loss. 

Adam: [00:04:59] Really? Yeah, we did everything. We were flipping cars on Craigslist, Alibaba. Yeah, go into those like storage set auctions for a while, like three popular next, you know, everybody was doing it like this isn’t, this isn’t for us. So, we tried a bunch of random stuff over the years.

Yeah. Everything was cool. Like, we always had a little bit of fun with it, but nothing ever took off where I, this, I guess this has just been life changing for us. So 

Bryan: [00:05:25] Yeah, definitely. That’s great. I mean, I also have my fair shares of trainee entrepreneurs when I was younger. When I was younger, as I was trying to flip Pokemon cards and Yu-Gi-Oh cards for profits.

As I got older, I was actually flipping washer, dryers, refrigerators. Interesting enough. Right. You just get off Craigslist, you go wash in your backyard and you sell it for a couple of hundred dollars more. 

Adam: [00:05:45] And we did that too. You negotiate it down. You try to buy a few in bulk, you clean them up and then patiently wait for that person who’s willing to pay you like a hundred dollars more. Yeah. Two or three people come by and they’ll be like I’m not interested. They’ll try to negotiate with you or it’s not profitable for you, but that day you realize you might end up spending like 12 hours to make that a hundred bucks. 

Bobby: [00:06:03] Yeah. We’re giving these refrigerators stoves and shit away.

Adam: [00:06:07] We actually did. Yeah. So, we just bought a seat. Flex is over in mountain view. Hello. You’re good with all the old appliances. They’re all really nice. They all work, but they’re just like old, like white appliances. And we just want to put stainless steel and how much you were like, we could probably sell this like 50 to a hundred bucks each.

And they were like, our old mentality would have been like, let’s just sell these, like, get something for these. But I think this, the time in versus the timeout, it was a way where it’s like, Hey, you got four of them. They’re right in front of the unit. First ones come and pick them up. They’re yours. So, they’re gone within 24 hours.

Bryan: [00:06:38] I liked how your mindset has grown so much throughout the years. It’s like, Oh, it’s not worth my time. ROI is much greater than that. Obviously, we’ll probably dive deeper into how you guys spend your time, you know, but I like the mindset shift of what’s the best use of my time. Because that’s the best approach to being a successful business owner.

You know, 

Adam: [00:06:54] We’re big fans of a, how much did we make in 2018? How many hours did we work? I guess we divide that by two because there’s two of us. Now we come up with that dollar value per hour. If this isn’t even coming close to what we need to be at, like, let’s just leave him on the porch. Say that we’re wasteful, this was a timer. We were making jokes like, wow, this is our first time that like, we’re not just trying to like utilize every last drop, but sometimes it’s just 

Bryan: [00:07:19] [talked over each other] more advancing meals still trying to utilize every last drop. 

Bobby: [00:07:24] So there’s merits to both sides. 

Bryan: [00:07:28] Yeah, definitely. So, what kind of challenges do you guys face when you guys first got into real estate together, your first deal?

Bobby: [00:07:33] Or were you saying like, no, I’m going to say it kind of goes back to the kind of a large reason why we do is we’ve given back into people, you know, when you get a free fridge, or a free stove that might be someone’s actual need that they need to keep their food cold, the cook, their food, people do need this stuff.

And we’re in that position now where we can just give it away. It’s not so much. Uh, you know, trying to squeeze every penny out of it as well, but it’s also, you know, some, some people don’t have the benefit of having that, you know, nice

Adam: [00:07:59] The people who’ve got this we’re stoked. So yeah,

Bryan: [00:08:03] I mean, in my situation, I try to get back from different ways as well.

I mean, I tried to create a lot of like meetup events where we have guest speakers, what takes off the show, but I love you guys as a speaker, as well, to give back as much value as we can. You know, um, obviously I work with a stronger mom’s team and they have free workshops every single Saturday to teach people how to flip and analyze deals without any sort of monetary or.

Requests in mind, which is like a free world kind of thing. So, I really like where you guys are doing

Bobby: [00:08:35] How’s Tom and all them doing over there. 

Bryan: [00:08:37] They’re doing good. We just finished our project or fourplex in the Hoover, which should be turned into a 10-bedroom, 10-bathroom, short term rental. So, it’s like a slash Airbnb and, uh, we have people rent out bedrooms.

And the margin is pretty insane. Like each bedroom can rent out for at least $2,000 and the property got locked down for about one million. The mortgage is about 7,000 and I think we’re looking to bring in about like 18,000 to 20,000 a month. It’s pretty ridiculous for those types of returns.

Bobby: [00:09:07] That’s pretty good. Yeah. What was the initial investment on the asset? 

Bryan: [00:09:11] We bought it for 1 million grant. We put in a, I think 200 to 300K into the property to fix it. So, it’s not too bad. The returns are pretty good.

Bobby: [00:09:19] That’s a great return. 

Bryan: [00:09:20] Yeah. Awesome. So, when you guys first gone to your real estate deal, can you walk us through how you guys got into that and you know, what kind of challenges you guys face?

Bobby: [00:09:30] So the first deal, that was a, that was actually Adam, one of his mentors, that one guy. Kind of brought to us. I’ll let him kind of tell that story. 

Adam: [00:09:41] Yeah, no, it, it was a, a, a very good friend of ours. I’ll even give him a shout out. John, John Piper. I loved them. He’s still a very good friend, uh, of ours today.

We actually randomly met at the, uh, it was at a meetup over at the ones that they’re having over at Harry’s Hofbrau I think Jeff and his group were doing it for a while. So, yeah, no, I had randomly stumbled in there. We’re there for my dad’s birthday over at Harry’s Hofbrau Bama that she pointed out to me. Shake, look, sweetheart, they’re doing real estate stuff. Do you like real estate stuff? You can see what real estate stuff what’s happening. 

Bryan: [00:10:17] Yeah. Um, yeah, I basically, I was like, I got five minutes. It’s my dad’s birthday. Who were the three big fish in this room on this day? I just don’t remember. They just didn’t resonate with me. John, uh, was one of them four years later, we’ll say, ah, he’s still a very good friend of mine. And, uh, he was someone who, uh, he took me under his wing. I would try to add whatever

Bobby: [00:10:41] I’ll interrupt real quick, 

Adam: [00:10:43] Please.

Bobby: [00:10:43] John took him under his wing, but also Adam. Forced himself under his wings. How many you probably can and count how many hours he’s spent providing value to John with not expecting anything in return. So, the new people out there wondering, you know, it’s like, well, you know, maybe these deals just fell on your guys’ lap. You got lucky. It’s, there’s a lot of hard work, both dealing with other investors. And just kind of time and energy put into finding deals for that first deal even came or Adam was helping John out and then John was like, Hey guys, here’s the deal. It was a little bit more than John taking them under the wing, but he did take them under the wing. But Adam also, uh, A lot of value to John 

Adam: [00:11:26] Whenever I could. There are times I think I, at one point I was building a fence. Another point I was on top of a roof, taking down trees and like 112 degrees, Sacramento weather. It’s just all passing out fliers, whatever I could to add value. And Bobby’s are, I really wasn’t expecting anything. I am thankful for the knowledge, you know, like you go to mercy times, you, you pay them for the knowledge and this case. I didn’t have a lot of money, but I had time. So, I was wanting to give up my energy. Provide as much value as I could. Yeah. Bobby and I had started off, like, we probably went a good year, maybe even a little bit more from when we mentally decided like, yeah, we want to get into investing probably a good year that went by where we didn’t do any deals. We were spending our tires. We were just doing the randomest things like putting up bandit signs. Uh, calling night houses for rent on Craigslist and be like, why don’t you just sell it to me? You know? And like, we just kept going on. And on. I remember there was that one lady that we dealt with, remember her, 

Bobby: [00:12:20] We spent like six months on a six-month deal to potentially make… 

Adam: [00:12:23] hopefully make 10 grand. And we were stoked for like five grand. Like we made it the promised land.

Bryan: [00:12:29] Yeah. Mentor. I think you guys also bring up a really good point about mentorship. I think a lot of people nowadays, when he asks for mentors, they also ask for some sort of return, you know, like they always seek to gain something monetary by asking for mentors. And I think that you guys bring a good point.

It’s like, Hey, you know, you found some really, really good. You want to have their guidance. You guys gave up your time. For knowledge, you know, and that’s a really good point for these new investors to learn. Um, I know for this field, a lot of people, when they ask you to be your mentor, they’re basically asking the mentors, do a lot of things for them, but you guys are looking at, in, in the opposite, you know, how can you provide value to your mentors, which is a good point to bring up.

And also, I heard of John before he’s. Yes, quite a tree going on under him. I met a lot of investors in the Bay areas on your John as well. And that’s really great that he decided to help you guys, you know, so I’m happy for that.

Adam: [00:13:24] They’re very solid gentlemen. 

Bryan: [00:13:26] Definitely. So, you know, you guys got your first deal together. You guys got from John. 

Adam: [00:13:32] There’s a deal in Concord. John had a, just a lot going on in his life at the time and I, he just didn’t, he didn’t want to take on any new projects, really, especially not that far out and conquered and more extremely marginal. They’re very slim margins on this one. And the house was. Uh, it was a total shit show. Like I think it was all up for four and a half inches. 

Bobby: [00:13:52] Yeah. There were cracks in the ceiling probably about that wide base. 

Adam: [00:13:56] Yeah. They just kind of, they would just kind of like three inches. We’re not exaggerating. Yeah. Like the house was just like, tilted you had cracks everywhere. You, it just, it, it was beat up. The foundation was completely shot. Uh, completely outdated. There was probably, we had to end up doing what, like nine truckloads of garbage, 10,000 pounds of just like material, farm equipment and old books. And it wasn’t working. Yeah, exactly. Yeah. The place was a total mess. We didn’t know what we’re doing. So, I’ll go where maybe a little bit of the psychology of that. Most people are. How about this? A lot of people would probably lack the grit. The take on that deal as their first deal. We didn’t know what we were doing. I remember like a contracting buddy. Uh, he did a pro bono job for us, which was nice. He came up there, took a look and I was just crawling like kind of doing the military crawl under the house. All the things you want to look for from the foundation to anywhere the water’s coming in or out of the property, the pipes, the floorboards, any sort of subterranean, termites, all these things. I didn’t fully understand at the time, you know, I was just down there sweaty and like covered in rat shit.

But yeah, it gives you to think that we acknowledge it is we have a plan for everything. Like at any given time we have between like six and 12 projects going, and it’s pretty turnkey for us. But at this time this is our first one. We weren’t even sure we had all the money to be able to cover it. We didn’t understand hard money at the time.

And this thing being so beat up, like we, we didn’t even like where, like where do we start? Do we call foundation people? Like we didn’t even have our own in-house contracting team. No, but you do the repairs for us, but we just figured like, well, we got the internet. We’ll figure it out.

Bryan: [00:15:43] That’s one way you approach it.

Bobby: [00:15:44] That kind of sums up our mentality is we’ll figure it out. If we don’t know this probably won’t work out. So, we’ll figure it out. We’ll make it work. Yeah.

Adam: [00:15:52] I don’t know. I don’t know right now. Yeah. Back to me, whatever it takes the time for us to research this. 

Bryan: [00:15:57] What was the purchase price and the rehab cost and this property? If you don’t mind me asking.

Bobby: [00:16:02] We actually didn’t rehab it. We bought it for three 15. We sold it off of Craigslist for like three 75. I think with that, we, we of course tied the agent to the back end of it. We paid him out. And then actually that’s one where, you know, adding value, John kind of just handed that one to us. And then, you know, even though it wasn’t worth his time, we made it work as time and, you know, paid him as well, because it was something that, you know, you just got essentially from him was just a nice chunk of change that even though it wasn’t worth it for him as well, for us being able to say, thank you in that sense where, you know, mentors are, you know, always asking for, you know, they want to mentor you for money or something, which is probably worth it for newer people starting out and they don’t ask for it. You want to pay them that much more. 

Adam: [00:16:45] True. Yeah. He didn’t want anything from it. We, after all of a sudden done, we gave more than 10% of the profits and the profits and went back to that. Great. Um, but it was still, it was something. And, um, we, we originally gave him a really nice gift basket for, uh, for his wife and his son, just like board games.

I like organic vitamins, essential oils. Nebuli had just one stuff around the house except they could share together as a family. Yeah. And then we also gave him a nice check. We took him to a nice dinner and like AB just kept trying to give back more and more. Yeah. I guess it’s too much guys. I don’t really need all this, you know, like you’re doing at this time.

Bryan: [00:17:22] I love this story. You guys, so you guys went above and beyond for his mentor, you know, like. Yes. Didn’t take anything for granted. You guys seize the moment. And on top of that, you did your first real estate deal, you know, I think more priceless. So, look where you guys are now, you know, after that you guys have to accelerate her 157, three, three years. That’s amazing. I don’t know how many people can say that in real estate like during your time period, you know, so that’s a huge accomplishment. 

Adam: [00:17:46] Yeah, I’ll be, I haven’t met anybody yet. That’s 157 million worth of buying and some, they just with their own money in two years. So, it’s yeah, no it’s. And like Bobby was saying like, what, what that gave us was that aha moment, like being able to get something done, see it to the end, probably 90% of people, whoever gets into this. We’ll be out of this within, I would say what probably six months or less is that right Bobby? Yeah. Yeah, probably, probably right in, right out. And they’ll just give up and like, Oh, it wasn’t for me. Or it’s not as easy as I thought it was going to be, or is out there just full of shit type of thing. Like a lot of people, they’ll do these mental gymnastics on why this isn’t good. This isn’t something for them. If you could just stick to it, get one deal done. And that, that was our one deal. That was our aha moment. Um, after that deal in Concord, uh, we, we ended up going on to our second project, which are better projects to date. We ended up buying a very short, like right after this, we moved money. We bought a fourplex in downtown San Jose, off a 10th street. We got 1.2 million. This was 2016. Does that sound right? Bobby 17, obviously being so kind to grab us a charger right now. I didn’t even realize my, my, what is these things called? Computer is for six weekends. So anyways, yeah, our second deal, we got, we got very lucky. Why don’t I say lucky? I get it. Luck favors.

The prepared, uh, Bobby at the time was still working over at NASA. He was extremely diligent. He’s actually a woman that stumbled upon that one. Yeah, another deal up in Watsonville. Um, so Sheila ended up taking on that one. We passed on it, she took it on. I had been, she ended up actually even helping her with that one a bit, but Bobby had, the great idea is like, if we’re looking at this one in Watsonville, like we definitely have to look at this one in downtown San Jose. He told me about it. Uh, I scheduled something with the, uh, the agent and him and I sat down. We got this thing tied up. I could not have spoken. Like I speak now. Like I, I was, I, I was scared I was shaking. I didn’t, we’re going to come up with the money for this and the whole time this guy’s asking me, like, you’re sure you’re going to be able to close. Right. And I’m like, yeah, no problem all the time. You know what I mean? But yeah. It just, I had just had to be very assertive, like, yeah, we’re going to take care of this. And within that time of us getting in contract, we then had to create our whole business. We had to discover hard money lending, because this was not enough to fund 1.2 million. We got to discover handyman subcontractors, eventually our, our own in house contracting team insurance. It goes on and on. Like, we had no idea what we’re doing, but we went full in and it worked out. We ended up selling it for over 2 million and we made a little over 700,000 in profits. And within probably three to six months of that deal, closing out, I think we’re holding about 20, 22 million worth of real estate. We just want all… 

Bobby: [00:20:46] We leverage everything.

Bryan: [00:20:47] That’s pretty damn amazing, guys. That’s crazy. 

Adam: [00:20:51] A story we’d like to share. There was a time right after that we’re holding about 22 million worth of real estate exaggerating. We had about what? 76, 77,000 a month in the holding costs. Just interest purely interest.

Yeah. There was a period where we owed our contractor for another 150 hundred and 50 grand. Graduating. We had less than $500, not five grand, $500 in our business. Like in our bank account, we weren’t sure how we, we had like three that were just getting off the books. So, we were able to work to deal with our contract, or we’re like, Hey, we’ll give you a fat bonus. Like just let us float for a month. And they were super chill about it. We’ve always acted as day. We’ve always taken care of them. We probably worked on wow. Over, I’d say over a hundred doors together, a multifamily apartment. So, I start to add up. But yeah, no, it’s a, so it’s, you have to, once you kind of decide to do something like you got to go all in, like we’re constantly listening to books, audio books, podcasts, reading online where you, we still go to meetups every so often.

Just, just to go see if we can get some tidbits of information, you know, there’s definitely some to be said about dedicating yourself to the process. 

Bryan: [00:21:57] I mean, I can totally relate to some of the things you say. You said it before. When I tied up my first multimillion-dollar property, I was, oh crap, how the hell do I fund this name? And you go into a lot of self-doubt, like, man, how can I do it? And you start, you’re like, okay, let me start figuring out like how to do it. So, you start asking people around like, Hey, how’d you fund a deal. How is hard money work? And you’re like, what the hell is 10%? What is that? Is that a good thing or a bad thing? I can’t tell. You know, and trippy toad early this year, I literally had $300 inside my bank account as well.

So, you have something in common with guys that believes that you just have to do it, you know, just all in. And then it’s funny because as you’re new, you know, your bank council, little people come up to you and ask you for a real estate advisor, LA.Bro. I don’t know why you want to ask for my advice. I have $300 in my bank account. Now that you start to get a little hard, a little down on yourself. Yeah. So, you know, it’s, it’s crazy how I talked to you guys. I talked to other people I interviewed in the podcast. It’s the same relentless. Believe that we’re going to make something happen and then we’re going to solve this problem, you know?

So, there’s no doubt in my mind that you guys are going to hit next time I talk to you guys in a year or so you guys going to have two 50, three 50, four 50. So, I would love to invite you guys back in the podcast and like a year or two, see what you guys are at, you know, update that number real quick.

Adam: [00:23:20] We’re starting to head into a larger scale multi-families and hotels have this moment. So, it’s insane. All different story, 

Bobby: [00:23:28] More commercial. Now the whole residential, because we know how to do that. We just have that on cruise control, essentially the bigger it’s.. 

Adam: [00:23:35] It’s our bread and butter residential. We have a lot of great agents who work with us. We always take care of them. We always give them the listings on the back end and for that they love us. So, we have a steady, a, a pipeline of deals coming in and we’re even looking to wholesale more and more. So, if anybody watching this has ever looked to get a deal wholesale to them, uh, and if they give, we’re even offering, we offer a little bit of mentorship when someone’s newer and what will kind of help them through that process when they take a property off of us. But yeah, no. So, we’re starting to kind of, uh, slowly, uh, be less involved in the day to day operations of our flipping side. And we’re kind of passed them onto a few other people and we’re getting heavier and heavier and into, uh, like Bobby said, multifamily commercial apartment again, and watching this who has any access to a large-scale apartment buildings or hotels, please say, hello, 

Bryan: [00:24:23] Awesome email address in the show notes as well. They can reach out to you guys. So, I think you guys touched base on a little bit about how you got started and then you started your growth. Can you kind of be touched upon this story about how you guys had your exponential growth, but how do you guys love to like your first 100 million? And I was like 157 million. Wait, what was that exponential growth? Like how do you guys manage that? Because a lot of people I talked to you don’t manage that too well. Yeah, they let that get to her head to dry Lamborghinis and Ferraris and buy airplanes. Like how do you guys manage that and stay focused so well, 

Bobby: [00:24:57] Keep doing what you’re good at, by real estate. We’re not flipping cars for profits. So, you know, if the cars come, they come, if it makes sense, if it’s a nice tax, write off the trucks,

Adam: [00:25:08] We got the over 6,000-pound vehicle for tax purposes, but we’re both pretty simple means, you know, like we. I, I, I don’t own too much stuff. If you look at my house it’s I got my PDB, my Nintendo 64, my magic, the gathering cards and a bunch of books, you know

Bryan: [00:25:26] I like that. You guys are so humble. 

Adam: [00:25:28] You don’t, one of us grew up with a lot. So, like you realize you don’t really need too much to make you happy. I think we focus. If we spend money on anything it’s to travel, like we both try to spend probably two to four months out of the country every year. 

Bryan: [00:25:40] Where’d you guys go this year?

Adam: [00:25:42] Um, myself, I took a trip to Indonesia early in the year with my, my good buddy. Andrew took a trip to Japan. I took some of my family out there and my cousin about seven, eight months ago, about a month and a half ago was over in Germany and Amsterdam for Oktoberfest. 

Bryan: [00:25:59] I think I saw that you went with Ken, right?

Adam: [00:26:01] Yeah. Yeah. Ken was with us. So hi, Ken max, our buddy Ryan and our buddy Glenn. And I actually just, I look a little tired. I just got off a plane. I just got back from Spain. The other day. I took my girl to Spain and we had a blast out there. We do a little a week long road trip along the coast, down to us, Southern Spain. That was a blast.

Bryan: [00:26:21] Awesome. Thanks for being in the podcast then. I had no idea. You were just tired 

Adam: [00:26:27] Into my smoothie, petting the dog. So, what, life’s good.

Bryan: [00:26:29] Yeah. That’s awesome. I mean, you guys hit your exponential growth cause mainly because you guys reinvested all your profits back to your business and stay focused, you know. 

Bobby: [00:26:37] Exactly right out of the gate, everything went into the business. I got a with, we don’t have too much, so we just kind of spend our money on buying real estate. Yeah, right back into it. Yeah. 

Adam: [00:26:47] We cash all of our stocks. Very money you keep like under the old jar and everything. Like we cashed out everything I got, I was even selling some of my, uh, my favorite magic cards at one point to raise a couple of toddlers.

Bryan: [00:27:01] I liked, I liked the sense of focus. So now I want to shift the episode back more towards you guys and talk about, you know, your motivations, your why’s, your motoring. Do you guys have any morning routines? You know, like, so what’s the biggest, why do you guys have, I know you guys are very entrepreneurial, but what’s your personal, why? Why are you keep, why are you keep pursuing real estate in like, what’s your, what are you trying to get out of it? So, our listeners can relate to you guys. 

Bobby: [00:27:30] You hear a lot of people say, you know, you figure out the why, and then you start figuring out why you need to do what you’re doing and how you need to make that money. The why is just to have fun, enjoy the family time, enjoy friends and do what we want when we want, go to Columbia, you know, go to Europe, do, do whatever we want and not be tied down by, Hey, I got to go ask the boss if we can take the next week off. That’s the biggest why? And, you know, just being able to, you know, at a moment’s notice, just go do what you want when it’s not to, you know, I don’t need $5,000. Of course, you need living expenses. I don’t need $5,000 to fund my Ferrari or, or to fund, you know, the private jet, which, you know, at some point that’d be cool. Simple and keep it, keep it that way to keep on going and build that empire. You know, you’re having a blast when you’re doing it. I mean, what we’re doing is fun. You know, there’s stressful times, you know, there’s 500 bucks in the bank we’re stressing, you know, we might not show it, but we’re stressing there’s things that are happening. Whereas I know we just keep going through at the end of the day, it’s going to be alright. 

Adam: [00:28:36] It’s just my mindset too. We always said that we’re like, we can lose it all. Like I have a nice truck now, but I have an old pickup truck that has like an old, old bed in there. And I actually did a road trip to Canada a few years back and lived out of the back of that truck for a few months. And it was actually quite nice. It was very Zen, very stoic. We’ve always had things like worst comes to worst. I can go live like that for the rest of our lives or we’ll move that somewhere. Live next to a Lake, do a bunch of fish in, get a little water purification tool live like Kings you, you don’t need that much. One of our buddies I’ll throw him under the bus. Ryan. He’s always like, he always says like the Rolex, the Mercedes, and I know he gave it to BMW and Mercedes actually would be cool if it was BMW, but, um, so he’s always like, yeah, when are you going to get your own? When are you going to get a Rolex? Like, you make way more money than I make. Like, where’s your Rolex, this, this and that. Like my response, like. Where’s all your multifamily apartments? Cause that’s from, I’m putting all my money into, I want to own a lot of apartments. So, does Bobby keep acquiring more real estate? I acquire more real estate, either one of us having anything too fancy. And that, that, yeah, I guess what I’m getting back is yeah, exactly. The families, but, uh, I, I think the, the big, why is freedom of time? Freedom of time, Freedom of choice, be like money will make you happy, but it does buy you and your girl round trip tickets to Spain and being in Spain with somebody I care about makes me happy.

So, and being able to have the freedom of time to do that. It makes us happy. And that’s our big why’s is freedom of time, freedom of choice. And of course, the financial freedom that, that real estate, as well as our, our long term holds, uh, acquired us. And we’ve found something that we enjoy. This is the nine to five where we’re waking up every day where it’s like, I got to deal with this crap again. Yeah, we get to do what I want to get to enjoy what I do to enjoy what you do. The, you know, everything else kind of follows that money follows and it just puts you in a better mental state. 

Bryan: [00:30:40] Yeah. I agree. Everything you guys said, you know, like send me what me, and then also said very similar to my good friend, Sean Pan. Like we don’t have any real SS. I thought about it many times. I’m like, ah, I just need more rentals. I don’t need real exes. You know, like you guys. I still, well, I just sold my Honda civic. So now I officially have no car. And I put that into my multifamily, you know, so very similar mindset as like, it kind of feels good when it’s like, shit hits the fan.

Whereas like F kind of hits the fan. It’s not like, it’s not like, Oh, any money or I have. To me, like stuff tying me down, but I need to make a shit ton of money, you know? So, it gives you that freedom of mind where you just like, right. I’m just going to risk it all, go big or go broke, let’s go. Let’s do it. You know?

Adam: [00:31:26] Yes. Yeah. That’s where you’ll see the greatest successes. And I, like Bobby said, like, we don’t need to work anymore. Like we, we’ve done well enough in these last couple of years, cash out, pay off our multi-families both have multiple six figure incomes residual from our holdings coming in for the rest of our days.

But Joel, we do, uh, now that we’ve mentally, uh, took him the shift in the hotels. Like, I don’t know if it’s, it was a combination of jet lag, but more combination, me being excited. I woke up like probably four in the morning and before nine o’clock I’ve been researching the, uh, just the, uh, the, the terms, the technologies, the economics behind hotel purchasing.

And it’s, uh, it’s when you’re into something like, it’s just like, I’m, I’m literally. Today I ordered two books and got three, three, three new audiobooks on my audible, and I’ll probably have them all read by the end of the month. So, when you get into something, we both die pretty heavy into it. A good one. I’ll recommend it. I’m actually listening to audible right now. I just started this morning. We are guests perfecting the customer service. It’s uh, from the Disney Institute. Really good.

Bryan: [00:32:26] Okay. Maybe share, I write that down as well, but. I guess for our listeners that are interested in what your, once you mentioned about hotel investing, like where are you guys investing into hotels? All the San Francisco Bay area, or is it around the United States? How are you guys approaching this strategy? 

Adam: [00:32:42] You’re open to location. A few of the ones that we’re working on now are all within what I’d say 350-mile radius. 

Bobby: [00:32:49] Yeah, they’re all within the, within the Bay area, kind of, no, you can drive to them within a half a day before, you know, it depends really where the deal is, is what it comes down to you because you limit yourself when you’re doing hotels. There’s just, there’s only so many, you know, drive down a street, you can drive by a hundred houses in a minute and haven’t even seen a hotel yet. Now you start looking for hotels. You might have, you know, at most, a couple hundred hotels in the Bay area. So, as a scale, just. 

Bryan: [00:33:17] Oh, wow. That’s pretty cool. 

Bobby: [00:33:20] That’s just shooting off the hip.

Adam: [00:33:24] We’ve always told people, I’d be like, Oh, I have this great deal for you in San Diego. I was like, ah, I have friends. I’ll send it to you. So, keep sending them to us. And I know, definitely know people who buy in that area. I’m restricting our search to about 75 miles and basically Santa Clara County, or about 75 miles. In any which direction and we’re pretty strict on it, we really won’t even go to the properties unless we haven’t been contracted nowadays. There’s just, there’s just, yeah. Our pipeline is just like it’s, since we’ve been on this and we’ve already had like four deals sent to us or we’re talking to you, so when you’re here, we’ll start analyzing new deals or anything makes sense. I will whack quick while I have a contract written within the next hour. Definitely way different than hotels. So, like I said, we’re, we’re still very new to this. So, our, our Cubs. Uh, we, we, we know very little, but we are amassing knowledge as we speak. And I guarantee you, like you said, in two years and we have another, we do another podcast. It’ll be a whole different conversation.

Bryan: [00:34:12] I really liked the guys are, you know, you guys done the real estate and now you guys are finding your niche that you guys really enjoy. And that’s, that’s great to my ears. I like hearing stories like that, you know? You guys, man. So, I’ll make sure that, you know, if I know of any hotel potential deals or sentencing as well. 

Bobby: [00:34:30] Please do hotel and large scale multifamily. We started looking at double digit plus units. Yeah. 300, whatever it is

Bryan: [00:34:38] So for our listeners, I’m just not editing out the things that you guys heard during the podcast. That’s Bobby and Adam making money. Okay. There’s the test. So how many things are there? Each one is money. Okay, guys.

Okay. Awesome. I guess as we are approaching the end of the podcast, I guess I want to ask a couple of questions. Um, the first question is. If you can redo your real estate career all over again, what would you do differently? 

Bobby: [00:35:09] I’ll change it. I’ll change the question. The only thing I would do, that’s the same. Everything else can be done differently and we’d figure it out. Sure. 

Adam: [00:35:21] It’s just been phenomenal, I couldn’t ask for a better partner and I appreciate that. 

Bobby: [00:35:25] Yeah, no, it’s, it’s interesting. Talk to a lot of people and a lot of partnerships and you see how people, they, their partnerships unravel. It’s interesting because it’s, uh, a completely different story than what, what I have and probably what Adam has very rare that people find a partnership that works this well.

Bryan: [00:35:44] Yeah. That’s really good to hear. Cause partnerships are hard, you know, you basically. Are gating each other essentially. And you know, your guys, you guys really have to support each other. And I know for a fact, you know, I think that’s an under understatement. Like a lot of people are like, yeah, like just go out there and find someone, a meetup partner with them, blah, blah, blah. But I don’t think that process is that easy. You know, I think there has to be a lot of synergy that goes on, a lot of trust that goes on, you know, like I’m very blessed right now too. Cause I work with. Uh, two guys I knew from high school, it took me a long time, twice. I needed partners, you know, but there’s a lot of synergy. There’s a lot of trust with money. Like I, I know like if I needed money, if I was traveling to like Asia or Spain or something like that, and I found this deal when I was on my trip has a hand near lockdown and the 200 K. Hi, these guys will step in and be like, Hey, I’ll front up 200 K for you, a lock down a deal, and you need to come back to the pay me like how many people can say they have a partnership like that, you know? Cause I know like with money it’s always a tricky subject. Like people get kind of weary about money. Like even with close friends, you know, they’re like, oh well you want me to find out that much money without any contracts? Are you sure? You know, but I, I think that what you guys have going on is great.

Like a lot of trust going on, a lot of synergy. So, I can’t wait to see. What do you guys accomplish in the next five to 10 years? You know, you know, hopefully I see your, your last names and hotels and replace all the Hilton and Trump hotels. You know, we all know that they’re getting old and you know, 

Bobby: [00:37:16] it’s a new Dawn. No, I, I agree. I think there’s a lot of opportunity out here for us young, up in commerce. Yeah. In our early to mid-thirties, like we’re just on our prime right now. Like not only are we still young, but we’re, we’re a little sophisticated, you know?

Yeah. We can fuck. We can fight. We can drink. We can, uh, we can invest, you know, so Ted 10 years ago would have been a whole different mentality. So, I think it’s a very golden, golden era, that we’re in right now. So. Nothing, but opportunity out there.

Bryan: [00:37:43] I totally agree with that statement. So, I think you mentioned it before, but you have a podcast. You like the, our guests, what kind of favorite books or podcasts really inspired you over the last few years? 

Adam: [00:37:56] Probably for both of us, we always talk about the one book that inspired us the most, most, and I’m sure we could say it in three, three, four-hour work week. But then just switch the mindset. Yes. That looks by Tim Ferriss, right? Yeah, he does. He’s on a lot of good ones. He did the four-hour body, the four-hour chef tools of the Titans. Um, one or two other ones. He’s got a great podcast. You asked earlier about morning rituals. I’ve even picked up a few of my morning rituals from rituals that he’s picked up from other people which include making the bed. Uh, I like to meditate. I like to work out in the morning. I like to make this, uh, super tea, which is a combination of like green tea and pure raw tea, which I mixed in some like ginger, um, turmeric, a few other things, but, uh, yeah, no great book. Have you ever had a chance? Uh, buy it? It’s getting older, but still a great book.

Highly relevant, relevant. Um, and any of his podcasts I think are really fun,

Bryan: [00:38:58] So awesome. Yeah. I mean, how about these guys? I’m going to send Tim Ferris a personal email asking him to be in the podcast. If he ever agrees to it, you guys want to co-host with me. 

Adam: [00:39:09] For sure. We’d love to. Yeah. Yeah.

Bryan: [00:39:10] That’d be great. I’ll let you guys know.

Adam: [00:39:13] I think that’s actually a very bold thing too, we actually talk about that in the book. It’s like, Hey, if you want to become really like, you want to become good at basketball. You send out 20 emails a day to some of the best. Basketball players on the planet. And he had another good point. He talked about, if you want to learn basketball from Michael Jordan, being prepared to pay about a quarter million dollars for a day’s worth of lessons. But if you want to learn basketball from, I’m making up a name, but we’ll say Carl Jacobs, I wish I was more informed of basketball, but you have to think there were people who were on that team who sat on the bench. Who still have five, six championship rings that I’m playing with Jordan. We don’t know all 36 players, whatever it is. I got better on that basketball team at that time. However, it is, but there are people right now who have no money coming in, have 95% of the knowledge that Jordan has. Good time to improve your game. And I’ll probably do it for about 150 bucks for the day. And there’s a huge strategy of finding those people in your life, where I might not be able to afford Michael Jordan. Well, at least back then, I couldn’t afford Michael Jordan to teach us basketball, but we’ll find the guy who played with him for seven years has a lot of the same skills and tricks, but we’ll do it for less than 1% of the cost.

Bryan: [00:40:22] I mean, you guys mentioned them. And that point is Steve Kerr, the Warrior’s coach. So, you can play with Jordan for a while. And he got in the war. His government has a head coach. So, to prove your point, does it really accurate

Adam: [00:40:36] if we could, if we could track down Dennis Rodman, I’m sure we’d have some fun with him. Really interesting. We’ll go to North Korea with him. Take a trip. Be exactly, exactly.

Bryan: [00:40:48] Alright guys. How can our listeners find out more about you?

Bobby: [00:40:50] Um, they, they can reach out one of two ways. They can reach us on thevalleyinvestors.com. That’s pretty much all our contact information email, and they can reach us at a ARONHomesLLC@gmail.com.

Bryan: [00:41:08] Perfect. Hey guys, I really enjoyed the podcast. Thanks. Thank you both for being on the show and thank you for your time, 

Adam: [00:41:13] Thank you for having us Bryan. Yeah, you’ve got a great podcast. Congrats. It’s consistently growing and you have been cultivating your business empire as well as now. You’re your media empire when it comes to real estate. So, I’ve seen it with you. I’ve seen Sean and the same with a few other people. I wish we had more of those skills, but we were trying to just figure out, turn my computer on and say ideas. The entire podcast. Yeah. Yeah. We’re just going to have ourselves talk. 

Bryan: [00:41:41] Let’s see. Glad to work guys. Appreciate that now,

Adam: [00:41:44] But we surround ourselves with the right people. So, uh, we greatly appreciate you having us on here as well, Bryan, and we wish you all the utmost success and we can’t wait to hear where you are at in the next few years. 

Bryan: [00:41:53] Awesome. Thank you, guys. Appreciate it. Kind of words all. Thank you. 

Bobby: [00:41:56] Thanks Bryan. Have a good one.

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