All language subtitles for Backed.by.the.Bros.S01E03.1080p.WEB.h264-FREQUENCY_[English] (SUBRIP)

They've done some
investment properties before,

so they should know
a little something.

If they don't know
a little something,

they're about to learn
a little something.

Massive undertaking.
Potentially massive profit.

It smells like money.

[Drew] We just want
to help people get into
good investments

or to help save them
from what's turning into
a bad investment.

I don't know what I'm doing.

I've never flipped
a house before.

[Jonathan]
Had you rented it out
from the beginning,

-you would have made
over $400,000.
-[groans]

[Drew] So we want
to back you guys.

-[excited squealing]
-[laughs]

Thank you so much!

$100,000?
You're freaking nuts.

What you're looking at doing
with this house
seems impossible.

We made so many mistakes
early on.

I wish we had a mentor
who could tell, "No, no guys,
bad idea. Rookie mistake."

They're already
200 grand in the hole.

Obviously, this needs
some work.

On paper, some things
can look great.

In person,
whole different story.

We got a problem.
You got to tell these guys
to stop everything right now.

If they don't get this right,
I think they're done.

[woman] This is life changing.

This is gonna turn the page
to my career.

Who wants to make some money?

[Drew] When we first started
flipping houses,

we were getting
nice cheap houses

in cheap areas,
but with potential.

And then eventually
we couldn't find those deals

because everyone
started flipping.

So we had to raise
our purchase price,
raise our purchase price.

Our next pitch comes
from Jason.

He put his savings on the line
to purchase a house

in the exclusive
Hollywood Hills

that he thought was a steal,

but he's now in the position
of having to flip it.

-You found it.
-Yeah.

I mean, I stopped a few times
to look at the gorgeous view.

-It's incredible.
-An unobstructed view.

I mean, this is where
all the celebrities,
writers, producers,

they all live up
in the hills here

because of the views
and privacy, right?

I need the brothers [chuckles]
I think more than most

because I don't know
what I'm doing.

I've never flipped
a house before.

For the past 20 plus years,
I've been a writer
and producer

for both film and television.

I wonder how long ago
it was renovated
because it looks--

Even some of the tile,
everything looks very dated.

[Jason] I am seriously
on a time crunch.

I need the brothers
to help me get a contractor
and a designer.

I know for certain that
the brothers would
not only give me

people to work with
that were top notch,

but that would hold themselves
to a time frame.

-Hey.
-Hello.

Please come in.

I mean, I won't beat
around the bush.

What's at stake for me
is money and a lot of money.

I'm hoping to sell this house
for about $6.5 million.

[Drew] I feel like this house
was renovated years ago

and this is what they thought
the future would look like.

I do love contemporary.

What is the plan?
So you bought this house when?

I bought the house
a couple of months ago.

Got a great price on it
because I got it
in an auction.

What did you buy it for?

-$4.2.
-$4.2 million.

And then stupidly
did not factor in

how much the interest rates
had gone up

since I had started looking
two years ago.

That, plus I didn't take
into consideration

-all the taxes involved.
-[Drew] Right.

So when I sat down
and did the numbers,

I couldn't afford the house.

I went from hoping to own
and live in my dream house

to owning it,
but owning it to flip it

to be somebody else's
dream house.

To be honest, I feel like
this is a bit of a unicorn

because you've got
the skyline views
and it has the infinity pool.

There's not a lot
of those type of properties
out there.

Believe me, I've been looking
and they are all
over $10 million.

However, everyone who wants
those $10 million homes,

they're looking at
five bedroom homes.

Oh, I didn't know that.

Yeah, this is only
4,400 square feet, right?

-Yes.
-Four bedroom houses
in this area,

it ranges from $1.8 million
up to $4.3 million.

So you are actually paid
close to the top.

When you hear about people
losing their shirt
in real estate,

it's because they overextend.

They buy something
that is far more expensive
than they can afford.

Know your margins.

And if there is any kind
of retraction in the market,

if your costs go over,

you have to have
that buffer in place.

Otherwise you lose it all.

I want to walk around
and see the layout

because one thing
that could help you

if there is an area
that we can close
into a fifth bedroom,

automatically you're moving
into another bracket

with all the five
bedroom homes.

Well, let's-- Let's jump in
and walk around a little bit.

-What's this?
-This is the primary bedroom.

-[Drew] Okay.
Nice big bedroom.
-[Jason] Right as you walk in.

Yeah. It's one of the things
I loved when I first
saw the home

was, "Wow. To wake up
every morning

with the sun rising."

[Jonathan]
This is pretty incredible.
This is a dream suite.

[Jason] It's got
two walk-in closets,

but there's no door
to the primary bathroom.

This is the first room
that needs help.

The 90s impression
of the future
just threw up in this room.

From the chrome edging
on the tile on the floor
to these fixtures.

[Jason] Honestly,
this is where I will need

a lot of input help
from you guys,

because I would like
to make this bathroom
into a killer bathroom.

I feel like part of the budget
should be spent here.

[Drew] I would create
separation from the bedroom

and rethink all the flooring,
the vanity.

[Jonathan] You're looking at
a huge reno budget in here.

[Drew] Let's see
more of the house.

This is the biggest feature
of the whole main suite.

I wonder if this person
was a golfer.

My guess is they were either
a golfer or they had pets.

-They had pets, yeah.
-[Jason] Maybe.

What is this over there?
Is this the neighbor's
property or...

No, no,
this is all my property.

-Oh wow. That is amazing.
-Wow.

-I know there's nothing done
down there.
-[Jason] Yes.

[Drew] But somebody coming
to move up here

that's willing to spend
a bit of money to make this
their perfect paradise,

that is a gold mine
to have this view
with some flat space.

[Jason]
You could build probably
a 1200-square-foot guesthouse.

That would easily get me
my fifth bedroom.

Yes, but that's building
an entire house.

This is the whole thing too.
Some of the stuff
you do not have to do.

Your buyer just has to see
that there's potential
to do it.

That lower flat area
is a golden ticket.

That is something
that not a lot
of these houses have.

[Jason] This is two
of the three guest rooms.

You could probably make
that closet work.

-This is a shared bathroom?
-[Jason] It's a shared
bathroom.

[Drew] Within the house,
it is tough

because there aren't ways
to do things
that we know could add value.

-There's no closet
in this room.
-No closet.

We will put a closet in here.

[Jonathan exhales]
The list gets larger
and larger.

-We have not even
we talked about the stairs.
-I know.

[Drew] I can understand
wanting no risers,
so you have the light.

But anybody who has
small pets or babies,

they don't like the idea
of that open gap.

So this is
inverted living, right?

-So that
the kitchen's downstairs.
-[Jason] Correct.

[Drew] It has kind of
an inverted layout.

Some buyers will probably
think that's not ideal.

But in an area
up in the hills here,

I think people
are used to that

because a lot of the houses
are like that.

A very mid-century
looking floor.

I think you could actually
save yourself a ton

-and I think these could
be polished back to life.
-All right.

I would love for their input

on where is the smart places
to spend my money.

Left to my own devices,
I may put money
into the wrong things.

The bar looks hyper dated.

[Jason] When I saw the house,
I loved that
there was a bar here

because I thought again
it was open and inviting
to entertaining.

Especially this room.

Equally important
is the design.

I want it to be a dream home,
that has all the little
bells and whistles

from the light fixtures
to the furniture.

And I need
their help for that.

We've already got
the plumbing here.

-Yep.
-We got a space for shelves.

I would basically give it
a little bit of lipstick.

-Great.
-Fix it up a little.

I want to look at
the other bedroom

because I still don't like
the idea that we have
a four bedroom house

that you're trying to ask
a five bedroom home price.

Okay. This is
the fourth bedroom.

-[Jason] Correct.
-[Drew] For you
to get $6 million,

it would really make it
a lot easier
if you had five bedrooms.

This could become
two bedrooms.

But then the problem is
you don't want to access
a bedroom through a bedroom.

[Jonathan] The big benefit
that it does have

is you access right out
back into the yard.

-Yes.
-[Jonathan] And the yard
was pretty great.

It is obviously
a little rundown.

[Jason] We need a lot
of maintenance out here.

[Drew] When you're getting
a house that has a view,

a lot of times
you lose a yard.

Well, you have
a decent flat area
with a pool.

And then you have a whole
additional flat area

that you could even build
a guest house on.

This excites me.

If this has to stay
a four bedroom home,

the fact that
you have a larger lot

than anyone else around here
is a huge advantage.

How much money do you have
to spend on a renovation?

Around $300,000.

-[Jonathan] Oh my gosh.
-[Drew] That's unfortunate.

Impossible.

In this area, you need
to at least do like,
a mid-quality level

or a high end renovation.

So that would be about
$350 to 450 per square foot.

-Okay.
-If think about that,
you're 4,400 square feet.

-So even if we spent 350...
-Mmm-hmm.

-...that's a million and
a half bucks on renovation.
-Wow.

You're trying to do
a barebones,

million and half renovation
for $300,000.

I really can't
go over $350,000.

[Jonathan] 350,000 sounds
like a lot of money,
but that with this project

and all the high end finishes,
it wouldn't even
scratch the surface.

He wants us to do
his renovation for him

and to use our knowledge
to spend his budget

as wisely as possible
and get it done
as fast as possible.

I want to turn this
into someone's dream house

if it couldn't be
my dream house.

But I don't want it
to kill me.

You paid 4.2.

So how much would you say
you're out of pocket

with your interest
and everything
on this place already?

Oh, like over $20,000 a month.

Your profit can be
eaten up so fast

when your monthly
carrying costs are so high.

-Okay, so are you over 100,000
already on this place?
-Yeah.

You seem so calm for somebody
who's burning that much cash.

Truthfully,
I'm very desperate.

I'm hyperventilating
on the inside.

I desperately need to start
because I don't want

to be carrying this
much longer.

I want to get going.

I would really love your help.

Otherwise, I worry that
six months
to a year from now,

I'll still be
in the middle of renovating

-and my monthly costs
will just keep going up.
-Yeah.

I need help.

I want you to be really
realistic as well, though.

You want to sell
for $6.5 million.

So you're gonna be way over
the average asking price
for a four bedroom home.

In a market
where prices are coming down.

This whole situation
with Jason is so frustrating

because this house,
with that view,
could be out of this world.

So if he could find
the additional
renovation funds,

I would be super excited
to be a part of this project.

The one thing that
you may have
as a saving grace.

This view could be
the best view in the city.

People will pay
a premium for that.

If we can polish everything up
just enough

so that the view
sells someone,

then you could
potentially get closer
to what you're asking for.

That means that
this has to look top dollar.

The more times they go,
[groans] "Green water
in the pool?"

If you can clean up
all the ick factor

and then selectively choose
where you want
to replace features,

well, all of a sudden,
somebody will come in here

and absolutely
fall in love with it.

If we back you
every way possible,

we'll try and help you
stretch that budget

and do the things
that you need to do

and not do the things
you don't have to
and make this look its best.

I'd like to think that
we have endless resources
to help everybody out there.

We don't.
We're looking at
other investors as well.

If we decided to back you,
we'd have to
start immediately.

If you choose me,
I will do whatever it takes

to try to make this house
into someone else's
dream house.

There's so much potential
on the property.

But if you don't have
the cash to do it right,
it will bankrupt you.

[Jason] If the brothers are
to come help me,

I feel like I can possibly
get through this.

A true Hollywood ending
would be wonderful.

[Drew] You get a house
on the hill, you get impressed
by the views,

-and then all of a sudden
you overpay for something--
-You're drowning.

He can't get anyone
who can touch this

because his budget is making
all the contractors run away.

The only reason
I would consider this

is the fact that
he has that extra lot

for somebody to have that
as an ADU

or whatever they want,
a tennis court.

There are people that come up
into this neighborhood

that just have deep pockets
and they don't have
any lending.

They just pay cash
and they could afford this.

And they would like the idea
to be able to build out.

And on top of that,
the view where he is here

because a lot of these
houses in the hills,

they don't have
that much view that he has.

So that makes me feel better
because he's asking a price

that is for
a five bedroom home.

We would need to know
the breaking even point
on this project,

so he'll have to give us
all the financials
surrounding this project.

I want to understand
how much debt he has

and how much he realistically
can afford to renovate.

So let's get
the numbers from him,
and then we can let him know.

Okay. All right.

-Hi. How are you?
-[Heidi] Hi.

-Thank you so much.
-[Drew] So nice to meet you.

So much stuff in here.

Heidi's been sitting on
this commercial property
for two years.

I need to get out
of the building.

Give me a push to let it go.

[Drew] Our next pitch
is from Heidi.

She's an educator in Maywood.

Actually, Maywood is great
because it has close proximity
to Downtown LA and freeways.

So it's awesome for industrial
and commercial real estate.

[Jonathan]
Definitely in the heart
of the action here.

-Is it this one or this one?
Oh yeah. This one here.
-This one here.

[Drew] Heidi's been sitting
on this commercial property
for two years,

so she needs our help
o get it cleaned up

and ready
to get on the market.

Because she wants
to roll this over

into a residential
investment property.

She's worried
about her return,

but also trying to
find any way

to get a little extra money
out of this.

My name is Heidi.

This property my husband used
for his shop.

We paid for $600,000.

He mainly used the shop
for printing, papermaking.

He does a million things here.

After a few years,
my husband owned the shop.

He worked so hard,
like his dream forever shop.

Unfortunately, he got sick.

And eventually,
he passed away.

I do know
I should sell the building,

but it's so difficult to do.

I have a problem
letting it go.

That's... That's his shop.

But I'm doing things
that don't make
economic sense at all.

I don't want to be here,
but I don't know
how to get up.

Who do you trust?

-Hi.
-[Heidi] Hi.

-[Drew] How are you?
It's so nice to meet you.
-Thank you so much.

-Jonathan, Drew.
-Yeah.

Wait. How can you
tell us apart?

Because my husband
was a twin too.

-[Drew] Was your husband
the older or the younger twin?
-Four minutes older.

I think you guys
are also four minutes older.

-Yeah, we are.
-Four minutes. Oh, wow.

I knew it.
My husband was a fan.

Just too bad that
he is not here anymore.

Oh, your husband passed away?

-Yeah.
-I'm sorry to hear that.

[Heidi] This was his shop.

[Jonathan] What was
the business?

[Heidi] He was bookbinding
and the printing from scratch.

[Jonathan] There's so much
stuff in here.

So how many years has he been
collecting stuff for?

[Heidi] 30 years.

[Jonathan] It all looks
pretty cool,

but it's been unused
for two years.

You've got to clear it all out
if you have any hopes
of selling this place.

-So this is an 1862
printing machine-- Press.
-Oh wow. That's a press.

It totally works perfectly.

That is amazing.

[Jonathan] Have you thought
about renting it out?

-Because, I mean, if you have
all of this equipment here...
-Yeah.

...somebody would probably
look at this and say,

"Oh my gosh,
I would pay a premium rent

to take over
all this equipment and use."

So this unique printer,
very few people in the world
are able to print.

According to my husband,
says there's only six
in the world.

-Wow.
-So it's very difficult
to find the people.

I want to sell
because it's very sad
for me to stay here.

-Right.
-Secondly, I have a no concept
how to run this business.

-[Jonathan] Yeah.
-[Heidi] I've also
no experience

in commercial real estate.

It would really make
a huge difference

for anyone coming
and looking to buy

if it was
cleared out completely.

I already do this process,
almost two years.

I'm physically, mentally
already exhausted.

-Oh you've been trying to sell
the different pieces?
-All the different pieces.

-Have you sold anything?
-I did sold some.

How much money
did you have for that?

I think $80,000.

But basically I need
to get out of the building.

-Right.
-That's my current challenge.

If you guys don't come,
I'll probably stay here
another two or three years.

If you were looking at this
as an investment,

you need to make
these decisions fast,
find the sales

because otherwise
if stuff is sitting around,
it's costing you money.

Why don't we talk
a little bit more
about the building itself?

-Yeah.
-So when we look out here
and we see all the structure,

it actually all looks like
it's in pretty great shape.

-[Heidi] Yeah.
-[Jonathan] I don't see
any heaving on the slab.

No big damage.

All the beam work looks good.
Is the roof in good condition?

-[Heidi] Brand new roof.
-[Jonathan] Okay,
that's amazing.

-[Heidi] Yeah.
-[Jonathan] I look
at the cost.

If you were to clear
everything out,
it would thousands of dollars.

But if you were to have
an estate sale person

or someone who deals
with an auction,

where they come
and they sell everything,

they'll be able
to get you some money.

And then
they'll also clear out
everything that's left,

so you'll end up
in the positive.

-That would be wonderful.
-[Jonathan] Yeah.

You just have to be able
to make those tough decisions,

-which I know can be hard.
-[Heidi] Yeah.

I'm confused, you know,
my mind.

I don't want to be here.

I'm sad every time
I come here.

But I also don't want to go
because that's what
my husband was here.

I'm tough for a woman,
but I-- It's wore me down.

I can see that
you're overwhelmed.

-[Heidi] Yeah.
-I can see that there's
this emotional tug of war

because you want to
get rid of it,
but you don't want to.

And that can be
mentally exhausting.

-[Heidi] Totally, yeah.
-But at the end of the day,

you have to do
what's best for you
and what you're happy with.

And if you have
a business here

-that you have no idea
how to run...
-Yeah, no. Yeah.

[Drew] And it's been
two years.

This is 18 bucks
a square foot.

And this is what, like four--

-About 4,000.
-4,000. Yeah.

So you could have been
making over $70,000 a year
the last couple of years.

That's a lot of money.

That's why I thought
if you guys come,

maybe my husband will send you
a message to give me
a push to let it go.

How much money
over the last two years,

do you think you had
to dish out

-whether it was taxes,
your utilities?
-Insurance?

70,000. 80,000
at least I would say.

And you only made $80,000

-on all the stuff
that you were selling.
-Yeah, yeah.

[Drew] This is
a solid building.

There's no debt
on the property.

What is your goal
with this property?

I want to have income.

Because my husband always said

the building
is our retirement.

If we can sell this,
buy maybe
residential rental income.

So residential
is a little bit easier
I understand that.

You know, people got to live.

Have you had
the building appraised?

Do you know
what the building is worth?

[Heidi] About
a million dollars.

[Jonathan] Yeah.
What did you
buy this for in 2017?

$600,000.

[Jonathan] When I'm looking
at this building

and the building itself
is great.

Yes, there's some work
that has to happen,
but there's no renovation.

Are you looking for help
on finding
a new investment property?

-Yes, yes.
-Okay, I'm going to
go out on a limb here

because normally,
we'll look at a couple
different properties.

We'll talk to the owners
and we'll decide

who do we think we can back.

-Who can we get behind
and help make a difference.
-Who can we be of value to.

Honestly, I don't think
we need to go anywhere else.

We can 100%
help you with this.

And knowing everything
that you've been through

and the heartache
that you've been through,

-it is an honor for us to come
and be a part of it.
-Yeah.

Thank you so much.

My husband will be
happy there.

Well, we're gonna
make some calls,

and we're gonna start
working on this right away.

-Thank you so much.
-Thank you.

-We'll talk to you again soon.
-Yes. Thank you.

-Bye.
-Thanks.

[Drew] We hate seeing someone
in a really tough position
like Heidi is.

She has no expertise,
no experience
with commercial property,

but she has
a lot of value here.

We don't usually jump on board
that fast, but I love Heidi.

I think she's got
the right idea.

She's great.
And it's good property.

And set the property
itself aside,

all of the contents within.

[Jonathan] She's been trying
to go through all this stuff
for two years,

and that is stalling
any progress on the sale
of this building.

So we are willing to back her
to be that strong shoulder,

to help her make
those decisions

because it's really going to
be best for her
in the long run.

So now I say we keep
this success train going
and we back Jason as well.

No, no, no, no.

-No, we can't do
both these projects.
-Of course we could.

That property is unbelievable
and I--

and he is so in over his head.

And I say we take on
Jason as well.

No, we can't do
both these projects.

-Of course we could.
-I don't think so.

I got the numbers back.
All his financials.

He only has $350,000
to do everything
he was talking about.

It's a huge home
with that 90s vibe.

He doesn't have the money.

[Jason] I want to turn this
into someone's dream house,

but I don't want it
to kill me.

So how much would you say
you're out of pocket?

Like over 20,000 a month.

That view, though
that property.

He doesn't have enough money.

And on top of that,
that is a gigantic house

where that could stretch on
for months and months,

and we only have resources
for a short period

because our teams are going
back on to other projects.

I wonder
if there's a way for us

to streamline a little bit,
take some of it out.

I just think
it's stretching us too thin.

The house is okay
the way it is.
It's just dated.

So a lot of what he's doing
is adding fluff

to try and add
some big value for a flip.

All right. He's not going
to lose his shirt

because he'll get it
done eventually.

He just needs to cut back
on the design and...

I don't think
we can realistically
help Jason at this time

without it affecting
our other commitments.

But we will offer him guidance
on how to stretch
his renovation budget

and get as much bang
for his buck as possible.

Focus on Heidi
and tell Jason
that we can't do it.

But we'll help however we can.

[Drew] We're headed back to
Heidi's commercial property.

As a part of our backing,
we're gonna introduce her
to Mike

who's a liquidation expert
we've worked with.

He is gonna help her
clean out that space.

And hopefully make
a little money while doing it.

[Jonathan]
And for the time being,

our backing for Heidi is only
our time and mentorship.

[Drew] Our main focus is just
to stop the bleeding

because right now,
with that property
sitting empty,

she's spent almost $80,000
over the last two years.

-Hey, hey.
-Hey.

-How's it going?
-What's going on?

And every month
she continues to sit empty

with that property,
it costs her thousands more.

-[Heidi laughs]
-What was your first
impression walking in here?

There's a lot going on.
There's a lot of stuff.

It takes a certain market
to sell it.

A lot of these items are heavy

and, you know, they're gonna
need to be shipped,

which would cost lot of money.

So the market
on these kind of things
is not too high.

The most valuable thing
in my mind
is getting everything out

-so the building can
actually sell.
-I would agree with you.

[Jonathan] This is what
Mike's company does.

He deals with
estate sales, liquidations.

He can walk into a space
and figure out

what can be sold,
what has value,

what needs to just
get out of the way.

What do you think
you could get for this piece
built in the 1800s?

[Mike] Realistically,
to be able to sell this,

you're probably looking at,
like 25

just because
it can't be shipped
'cause of the weight.

-[Jonathan] $25,000?
-[Mike] $25,000.

-Would you sell it
for $20,000?
-Depending on who.

If it's a a printer
who will keep for the legacy.

That is a dream.

The chance of you
finding someone here in LA

that's gonna buy this
to continue the legacy

of using this
1862 machinery print

-is very slim,
-[Mike] Agreed.

This is going to be
a tough sell.

[Jonathan] This is
a tricky one for Heidi

because she has a lot
going on emotionally.

We're not trying to come in
and be the bad guys.

We're trying to help her,
but that's gonna involve
some really serious decisions.

How much are you thinking,
time wise,

to sort of
inventory everything,

get any of the stuff
that is not sellable
out of here?

In eight days, she would
not only know how she did
on the sale,

we would have
this place emptied out.

So even the stuff
you don't sell,

-you'll clear it all out.
-Absolutely.

Will your service
cost her any money,

or it simply comes from
the proceeds
of what's happening?

It would come
from the proceeds,

but I can
pretty much guarantee

that she will return
something from this.

-It's taken you two years
to get to this point.
-[Heidi] Yeah.

From a financial standpoint...

I wouldn't get hung up on,

"Well, this should sell
for $1,000.

I'm only going to get $200."

Nothing is going to cost you
more money than this sitting
unsold for another year.

-Got it. Now I understand.
-That is exactly right.

I'm so grateful you bring this
all to me together.

My shoulder kind of...

I don't need a shoulder
massage anymore.

The brothers back me up.

So give me strength
to move forward.

[Jonathan] Had she done this
two years ago,

she would be
so far ahead of the game.

She'd have an extra $100,000
in her pocket

and the building
would sell right away.

But we're not looking
in the past.

We're looking forward
and we need to get
this building on the market

and hope that Heidi can
make a great profit

from the sale
of this property.

[Drew] We're pressing ahead
helping Heidi sell
her commercial property,

but we're still
heavily involved

with our previous
investor, Frank.

We helped him rebuild
his three unit rental
after a devastating fire.

We want to back you
because we think
it can really help you

get this project done.

Thank you so much.

[Drew] But this property
is his only source of income.

So we want
to maximize his rent,

which means overhauling
his outdoor space.

That is, if he can come up
with a 20 grand price tag.

I'm measuring to see
how big a deck I would want
if I want a deck.

I don't even know
if I need a deck.

This is already
a small area back here,

and I may not be able
to afford a deck.

The house is done.
It looks incredible.

I was able
to save enough money

so that I can now put that
towards the backyard.

So now I'm excited
to get the backyard done,

and it's gonna totally change
this whole building.

This is my income
that I'm going to live off of
for many, many years to come.

I want to make sure
I do it right.

[Jonathan] Hey, hey.

So I just got off
the phone with Frank,

and he has given me
the number.

It is not quite
what we wanted,
but it's 10 grand.

[Drew on phone]
I say we help him.

Bare minimum cost back here
that would have to come
out of your pocket,

-20 grand.
-Wow.

[Drew] I was thinking
it was probably gonna cost

about 20 grand minimum
to do the project right.

[Jonathan] Yeah,
that's the problem.

So he doesn't have
the 20 grand.

So we're gonna have
to find ways to save.

If we look at some of
the big ticket items,

maybe instead of doing pavers
all throughout the back there,

maybe we just do
artificial turf.

[Drew] Turf's still expensive,
but I guess
less expensive.

Grass won't work
because it's not gonna grow.

So I was thinking
privacy wall,

but it's a nice idea
that maybe he could do it
down the road.

[Jonathan] I think there still
should be the fencing

between the two areas.

So that one two bedroom,

two bath suite has
its own private area.

I can talk to Jake as well

and see if he can start
right away.

But I would-- I would tell him
to just, like, hit hard,
go fast, get it done.

Jake is a landscape contractor

we've used
for a very long time.

He knows how to work
with a budget.

[Drew] If Jake can
squeeze us in.

I know he doesn't have
a lot of time

for a few days here,
a couple days there.

Wherever we can scale back,
we need to do it
and do it fast

because Frank can't rent out
any of these units,

even the upper units,
until his backyard is done.

Because he wants to get
that premium rent

and he's not gonna get that
until the yard's done.

We have a small window here.

If we can get this done
in the next couple of weeks,

he can rent at the beginning
of the month

and then get
the whole month's rent.

Otherwise, we're probably
gonna miss people
until the end of the month.

So I don't want to miss
that kind of revenue.

Okay, Let me get on Jake,
we'll see
if we can get it done.

[Drew] All right.
One other question.
What about coin laundry?

He has that laundry suite.

If he did coin laundry,
that's a little bit
of extra income

for him off the suites.

It could be an extra
few 100 bucks
here and there for him.

Yep. I'm down.
Whatever gets in the revenue.

[Drew] All right.
Lights that flame.
Let's get this done.

[Jonathan] Ciao.

[Drew] Rethinking Frank's
backyard design is absolutely
the right thing to do.

It keeps it within his budget,
but it ensures he gets

the most
out of this investment.

But we have to move quickly
in order to get it all done

before the next rent cycle
at the end of the month.

This is a great area.

-It's almost cut out
just like a planter already.
-Right, right.

Maybe some hasta,
some more cast irons,

things that don't get
too tall.

[Frank] Jake's here today,
and we're talking about
doing the back yard.

The design that the brothers
had come up with,

we changed it a little bit
where unfortunately,

I really couldn't afford
to do the deck in the back.

But we are doing
turf everywhere,
we are doing plants.

This area is gonna be
exclusively for
the two bedroom, two bath.

The reason that I wanted
a fence and a gate
down the middle is so that

the apartment downstairs
has its own private backyard.

I want them to be able
to come out that door

and have a great backyard
as well.

That's a plus, especially
in an apartment in LA.

Now, for this lower unit,
I can get more money.

There's a little bit more room
where we can add some
low maintenance vegetation.

A couple of shrubs,
plants that will grow.

-[Frank] Can we paint
the walls?
-[Jake] Yeah.

Something that's gonna
make sure it balances

-the color with the house.
-[Frank] The property? Yeah.

But also, it pops off
of the green of the turf.

[Jonathan] We're racing
to have Frank's backyard space

ready to go
by the end of the month.

This gives us
less than two weeks.

[Jake] This is a cast iron.

These are very cool.
One of my favorite plants.

It's got a very tropical look.

It just-- It just spreads
from the bottom.

-The bird of paradise.
It will grow very large.
-[Frank] Okay.

-[Jake] Let's put
this guy right there.
-[Frank] Okay.

-Nandina.
-Nandina. Only needs three.

Another bird of paradise.

-Kind of like that.
-It looks kind of
like the base of the tree.

-I like that a lot.
-Doing okay so far?

Yeah. Absolutely.

And then once the turf is in,
then we will dig the holes

and put everything
where they're gonna go?

Absolutely.
They'll go in simultaneously.

Okay. Excellent.

This is pretty.

No, forget it.
It's too much money.

Out of our budget.
Out of our range.

-No. No.
-No?

Always in the back of my mind,
unfortunately, is the budget.

This one I'm gonna keep.

My husband made it.

I kind of want to keep it.

[Mike] Your keep table's
looking pretty big.

[Heidi] I want to keep
lots of stuff.

This is my husband's stuff.

Are these gonna be here?

We're gonna do
a pressure wash?

[Kevin] We're gonna do
a pressure wash,

and that way
the concrete's gonna be clean.

Perfect. And then,
the fence and the wall,

-we're gonna go
all the way down?
-All the way down.

And then do we have
enough turf left to do that?

-Yeah, we have enough turf.
-Yay. Oh my God,
this is beautiful.

-Hi, Gianna.
Look at the new backyard.
-Hey.

Oh my God, it's so different.

-Like I wanna
hang out here.
-[Frank] Right.

[Gianna] We just need to add
a couple more things
on our end.

I got a little
shopping trip planned...

Okay. How exciting. Okay.

...so I'm going to
go ahead and do that.

[Drew] As a part
of our backing Frank,

we gave him 12 weeks
of one of our designer's time

to get those interior units
looking great.

And so, we'll also give him
another few days of her time

to get the back yard
looking as good as it can.

[Gianna] I am taking
Frank shopping
for some outdoor plants

and pottery
for his backyard space.

We're looking for some plants
that are low maintenance,

will add some visual interest,
add some extra green,

just make a nice
little calming space

for the tenants
that will be there.

What we're trying to do
right now is get
some different levels. Okay?

-[Frank] Okay.
-But we can't go too crazy

because there's some
really awesome big ones.

-[Frank] Okay.
-[Gianna] But the problem is
those are really...

-Expensive.
-...out of our budget average.

Always in the back of my mind,
unfortunately, is the budget.

-No. No.
-[Frank] No?

I love this color,
but not for you.

When I'm thinking of
short term rentals,

trying to keep it kind of--
Not a blank slate,

but maybe something
with some personality,
but not too much personality.

Frank has to remember
that he is not shopping
for himself.

He is shopping
for future tenants.

This is pretty. No, forget it.
It's too much money.

-I figured. That's what
I was gonna say.
-[laughs]

I do have a bit of a discount
with the brothers here.

-[Frank] Okay.
-Okay?

But we're still capped at 700
for these pots and plants.

[Frank] A little nervous
because I don't know
what to expect.

But Gianna says that
the pottery and the plants

that she has in mind
will take it
to the next level.

-Let's go take a look
at some examples...
-Okay.

...of what I have
in store for you.

Jake's laid a great base
with the in ground plants
in the backyard.

But it's my job
to elevate the space

with decorative potted plants
that we can place around.

Making an impact
and getting the backyard
looking where it needs to be

to get the rent
the brothers are aiming for,

it's a tough order.

You want to find
one center, focal plant

that has
a little bit of height,

-a little bit of drama.
-[Frank] Right.

-The general term we use
is thrill, fill and spill.
-Okay.

The thrill, the fill
and this spill.

I would limit to like,
two or three plants
per container for you.

So slightly thrilling.

-It's a little bit
of a thrill.
-But definitely a spill.

-There's some spill too.
-Okay.

Let's look at some of these.

That's beautiful.
See, that's a good "to fill."

-Okay.
-Let's get a couple
of those. They're beautiful.

It is so important
to get tenants back
into these properties.

And tenants that are
paying Frank the market rate.

And one of the top things
that will get you better rent

is an outdoor area
that feels like
comfortable indoor living.

-[Frank] This is a good start.
-It's a start, yeah.

[Drew] So for now,
we just need to do
what we need to do,

spend as little as possible
to make it look great

and approachable for a renter
and get them in.

[Heidi] Today,
Mike and his team came,

and they are organizing,
they are staging.

Hey, good to see you again.

So I'm very excited.

And oh my God, I was thinking
now I'm not alone anymore.

I was working here alone
for almost two years now.

They will back me up.
That's huge.

We'll give you a chance
to go through

and to look at all the tables
that we have

and decide
if you want to keep it

or if you'd like to donate it,
or if it would like
to be in the sale for us.

Okay, but please
be careful, okay?

Lots of stuffs my husband
brought from in Germany.

It's one of a kind.

-Thank you so much. Thank you.
-All right, guys. Let's go.

Perfect. Perfect, perfect.

So this will all be
on the first table
right there.

We're making good progress.

Yeah. So far, so good.

They are doing a good job.

Just can't believe
so many things I would like.

Do I have this?
Do I have that?

I wanna keep this and this.

The keep we can put--

Is that the keep pile? Okay.

[Mike] In this business,
we have to be very patient.

The biggest issue is emotional
connections to the items.

Oh! This one
I'm going to keep.

This is the type.
Look at how beautiful.

My husband made it.

[Mike] Your keep table's
looking pretty big.

Yeah.

If you like this,
but you don't think
you're ever gonna use it,

-and you're just gonna
put it into a box.
-[Heidi] Oh okay.

-This one you can sell.
-Yeah, definitely sell it.

This one you can sell.

[Mike] What's in that box
right there?

Oh that's beautiful.

I think we should definitely
try to sell that.

I kind of want to keep it.

[indecisive humming]

[Mike] You know, I think
this is definitely something
that would make some money,

and it would attract
some people to the sale.

Okay, okay.
I'll let you sell it.
All right.

-[Mike] Have you ever
seen that before?
-No, I--

You probably wouldn't need it

if you've never
seen it before.

[Heidi] I want to keep
lots of stuff.

This is my husband's stuff.

That is a hard decision.

I do understand
I cannot keep with everything,

and I should sell them

so I can invest
in a new property,
which will generate income.

But it's hard.
It's really hard.

Wow it's looking
much better now already.

I do need the money
to support myself.

More importantly, I want
to make my husband proud.

I don't want to let him down.

[Jonathan] When we're looking
at somebody to back them,

you know, it's not
just about the project.

It's about the person, too.

We want to make sure
it's somebody
taking in our advice

and they're willing to make
decisions based on that.

Heidi is slowing
everything down

because she has
sentimental attachment
to some of these things,

even if it's just like,
a random box
of paper and trash.

"But this was paper
my husband bought,

and it was
for this purpose and..."

You can't do that
with an investment.

With a real estate investment,
you can't do that.

Sometimes you have to
cut your losses.

It's not a joke.
We need decisions.

The longer it takes
for her to decide
what to do with everything,

the longer this building's
just gonna sit on the market.

[Frank] The brothers are
about to arrive.

I'm trying to make
the backyard look
as pretty as possible.

I'm worried 'cause
we cut back so much

on what we had originally
thought we were gonna do.

[Jonathan] Good weather
for tenant viewing.

[Drew] Frank held off
on listing his place

so he could complete
the backyard.

So when he does list it,
it will really stand out
and get a lot of interest.

[Jonathan] And depending on
how this new outdoor space
turned out,

we'll determine
how much we can list it for.

[Frank] The brothers
took a chance and backed me.

So I want to make them proud.

I want to make them feel like
they made the right decision.

[Jonathan] Hey,
can you come over
and sweep my driveway?

Yeah, right.

Sweeping away, cleaning it up,

making sure
it looks good for you.

I mean, everything looks good.

The building sells it.

This is all a cherry on top.

Welcome. Welcome back.

[Drew] Yes. Thank you.

-So, do you want
to take us down?
-Yes.

Come on. Let me show you.

-The turf looks awesome.
-[Frank] Doesn't the turf
look great?

And the bark
on the other side?

I love it 'cause it matches
the building.

Here we are. Check it out.

-[Jonathan] Ooh la la.
-[Drew] Okay.

[Frank] It's green,
we've got a lot
of great plants.

These are all light tolerant.

There are plants
for the specific area.

People can chill out here
while they're doing
their laundry.

I see it.
The coin machine's in.

-[Frank] Yes.
Hello. Ching-ching.
-[Drew] Oh yeah.

What you've done here
is more than enough.

Your tenants would love
this space.

I can see them enjoying it.

[Frank] The turf,
the plants, the furniture,

all just complement
what was already there.

And I think
it looks fantastic.

I want to see
the private courtyard.

Yeah. Check this out.

-[Jonathan] Oh wow!
-[Frank] This...

[Jonathan] It looks huge.

[Frank] Isn't this great?

-[Drew] This is amazing.
Yeah, grab a seat.
-[Jonathan] Oh my gosh.

This is the dream
that people want.

They'll come and look at this
two bedroom, two bathroom,

see this and say, "Sold."

[Frank] I mean, it's beautiful
on the inside,

but the minute
you open the door

and they see this back yard,
the deal is done.

-It's a deal.
-Exactly. Yeah.

They say a little landscaping
makes it look bigger.
And it does.

[Jonathan] And also the fact
that it's low maintenance.

This is going to be
super easy for you.

And also painting like,
the walls and everything
on this side white

with the green
and the plants against it
they really pop.

-[Drew] Yeah.
-And then,
the fence was painted

sort of like
a matching of the trim.

It all blends together.

And I like the plants
they planted.

Those will grow together,
make a nice bush

and, you know, not only
all the plants in the ground

but all the potted ones.

Gianna and I went shopping
the other day,

and she again has
that designer eye.

And I learned about
the thrill, the fill
and the spill.

[Jonathan] What used to be
essentially a forgotten space,

a wasteland back there
is now going to be
generating money.

[Drew] Frank has been making
way under market value

on these properties
for 20 years.

He deserves to make
as much as possible

and the back yard
is definitely adding value.

I was impressed
when you finished
the building.

I am even more impressed now
that you've finished the yard.

And I can't thank you enough
for your backing.

Inside and outside.

I'm glad I decided
to pull the trigger.

I pinched my pennies
to make it happen.

I'm so glad I did.

If this didn't have the yard,
you could have gotten

-maybe 3,700 bucks a month,
which is great.
-Right.

But now, with this yard,
you can get over $4,000.

We all agree
this needed to be done.

-No, it did.
-It came down to the finances.

-[Frank] Exactly.
-[Jonathan] You took on
that burden,

you took on the stress,
but you made it happen

and you'll make that money
back in no time.

So if we're talking numbers,

if you're going
from $48,000 a year

to over $120,000 a year
for all the properties,

plus you have, you know,
money to make
with the laundry.

You paid an extra $10,000
out of pocket

-for the added spend
back here.
-[Frank] Right.

But keep in mind
there was another 14,000
of value that we brought.

Our landscaper,
they brought their price
down by four grand,

and then we have
all the furniture,

the staging
and our design team.

That means you have
a project here
that was almost $24,000.

But you only paid
10 grand for it.

No, it's great.
Are you kidding?
It's fabulous.

And the furniture?
Thank you so much.

-It's beautiful.
-[Drew] No, you're welcome.

My word of the year
is grateful.

And I'm so very grateful.

-You just needed
a little nudge.
-A big nudge.

Going forward,
I can put to use

what they have taught me
and what I have learned,

and I'm going to be
a great landlord,
a great property owner.

And my livelihood
is looking fantastic.

We didn't realize that
Frank was showing the units

to potential tenants
before we even finished
the reno.

He actually brought back
a past tenant as well

from before the fire.

Not the one
who started the fire.

And they brought
a couple of friends.

Once they walked through,
they looked at the places

they signed leases
right away with Frank.

So he's now making 9k a month.

He's earning back
that lost income.
Pretty awesome.

My biggest fear
whenever we're trying to get
a building on the market

is what's the first impression
to a buyer.

When you have a building
that is so cluttered
that you can't see anything,

a lot of times the buyer
is just gonna walk away.

Heidi kept talking
about sentimental value.

But the thing is,
buyers don't have

that attachment
to any of this stuff.

Heidi has attachment
to a lot of this stuff,

so who knows how much
she's left in there
for sentimental value.

But if Heidi has this
completely cleared out,

it's gonna make
a world of difference.

A broker will come in.
He'll know right away.

We're good to get it
on the market.

A buyer is gonna see
what they want to see.

So my hope is
that she's actually cleared
everything out.

And then we can have
a purely blank canvas.

Because listing it
is gonna be
a big step for her,

not just
for her real estate journey,

but also
for her healing process.

[Heidi] I really want
to show Jonathan.

I hope he will be proud of me.

[knocks on door] Hello?

-Hi. [laughing]
-Hi! Oh my gosh!

[knocks on door] Hello?

-Hi. [laughing]
-Hi! Oh my gosh!

-Look at this! Oh my gosh!
-[Heidi] Look!

-[Jonathan] You have
been busy.
-[Heidi laughing]

[Jonathan] We have cleared
this place out.

-Wow, almost two years
nothing had changed.
-Yeah.

-And in a week--
-[Heidi] Yeah. Boom!

-[Jonathan] How do you feel?
-[Heidi] I feel great.

I feel like
I accomplish something.

I like the fact that
you kept some of
the warehouse shelving.

[Heidi] So the new owner
can use.

[Jonathan] Yeah,
cause otherwise
they're going to spend

to buy stuff like that.

You kept the stuff
that's worth keeping,

you cleared out the stuff
that had to go.

I'm actually looking at this
through the eyes

of someone who is looking
for a warehouse like this.

And someone can walk in here
now and say, "It's ready."

I can see the floor
and I can see the walls,

and that means a buyer
is going to see the potential.

Normally, if we had
to bring in a cleanup crew

-to haul this stuff out,
dispose of it...
-[Heidi] Yeah.

...we would have spent
tens of thousands of dollars.

You had Mike's team in here
going through everything.

What did you net in the end?

Uh, 7,000 around.
We're still doing
the calculation.

So you actually walk away
with 7000 bucks.

-Except I do see
you kept one peace.
-[laughing]

I think I'm going to keep it.

It's a really
historical piece.

I have difficulty
to let it go.

-[Jonathan] I am supportive
of you keeping this...
-[Heidi] Oh, that's great!

...because you did
such an incredible job
with all of this.

-[Heidi] Thank you.
-[Jonathan] So I guess
the big question now

-is we need to talk
about next steps.
-Yeah.

I'm gonna put you in touch
with a commercial broker.

He'll know the area.

He'll know what pricing
we should look at.

'Cause right now,
there's a lot of commercial
buildings available

and you have to stand out.

The broker will actually
tell you the perfect price
to list at.

Probably gonna get somewhere
between 800,000
and 1.2 million.

-Something like that.
-Okay.

You don't want it to sit
for a long time.

We don't have
any time to waste.

-I want to set up
some showings.
-[Heidi gasps]

I want to get out.
I want to find
some properties for you.

Drew's already working on
pulling some stuff together.

-And you said
Glendale, Burbank.
-Yeah.

-I want close to that area.
-[Jonathan] Yeah.

Also narrowing down
what's gonna give you
the best rental possibility.

-If you thought
this part was stressful...
-[Heidi gasps]

...it's a whole different
kind of stress

-when you're looking
for a property like this.
-Really?

Because not every house
is gonna make
for a good rental.

But this is
your future income, right?

-This is what you want.
-Yeah.

So we have to find something
that's gonna set you up
for success down the road.

Emotionally, though,
you feel good
with everything here?

Really mixed emotion,
but most of the positive,
like finally.

Everything she has
is banking on this property
bringing her in that revenue.

She's not going to find
another million dollars
anywhere else.

This is it.

[Jonathan] Next time on
Backed By the Bros...

I sold it the building.

[both] Yay!

[Drew] Heidi has 45 days
to buy a new property

or she'll have to pay
over $100,000 in taxes.

-45 days.
-That's pressure.

[Drew] So I give her
a crash course
in rental real estate.

The house, it was built
in the 40s.

-[Heidi] Yeah.
-[Drew] 1,006 square feet.

[Heidi] Yeah,
I like the fireplace.

Keep in the back
of your mind, it's a rental.

It's an investment property.

It's not her own
personal home.

[Heidi] I like this one.

I like the ceiling.

It's like a stage. Hello!

[Drew] But Heidi proves
to be a stubborn student.

That is one of
the biggest mistakes
that a landlord will think,

"My tenant's going to
take care of this property
the way I would."

Big mistake.

There are some things
we're saying that I feel

it's kind of going in one ear
and right out the other.