Original subtitles

-[Jonathan] Hello. -[both] Hi!

[Jonathan] So, we wanna back you guys.

[shrieks] Thank you so much!

[Jonathan] Sheryl is seasoned developer who recently brought

her daughter, Jasper, into the business.

We decided to back them because they're struggling

with their first multi-unit project.

[Sheryl] Property was turned from residential to commercial.

We had no idea until we started.

[Jonathan] They already had their own contractor and trades.

So we brought in our design

and construction management team.

-Kelly, Donnie. -[Kelly] I know. Hi.

[Jonathan] As well as dedicated our own time

thinking we're just gonna get them across the finish line.

[Donnie] Calling with not the best news.

There wasn't the precaution taken on these shared walls

to keep fire from jumping.

The drywall has to be walked back.

We are looking at a good three week delay.

[Jonathan] Turns out, we're not even close to being done.

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. -Ah!

We want to back you because we can

really help you get this project done.

Thank you, guys. You have no idea.

$100,000? You're freaking nuts.

[Drew] 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. -[man] Yeah.

On paper, some things can look great.

In person, whole different story.

We've got a problem.

You've got to tell these guys

to stop everything right now.

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

[Sheryl] This is life changing.

This is going to turn the page to my career.

Who wants to make some money?

Hello.

[Drew over phone] Hey, what's going on?

So you know how at Sheryl and Jasper's triplex,

we had the fire code violations?

Well, I just got word they've been resolved.

[Drew] Oh my gosh, finally.

-[Jonathan] Exactly. -[Drew] Did we get the drywall back up?

No, so there's still one last inspection that has to happen,

which is just kind of more of a process thing to close it out.

But we've already been told that everything's good, everything complies.

[Drew] It's just so frustrating.

I get that it was rezoned because it was a multi-unit on a major street,

but the conversion from residential to commercial

is haunting us.

[Jonathan] Sheryl and Jasper did warn us

that their projects tend to be a little chaotic.

So we kind of got into this knowing what we were gonna expect.

[Drew] We just need to get Donnie

and then tell him the design's sent back over there ASAP.

Let's get this thing through.

There are a lot of very important differences

between residential construction

and commercial construction.

More stringent fire standards,

more stringent safety measures.

For example, your burn time between a separation

has to be longer, which means it's a thicker drywall.

Maybe there's some other type of fireproof coating you have to put up.

You need to know this stuff in advance.

To do all your drywall,

to have to rip most of it back out again

because you didn't meet the fire rating,

that is insanity and so expensive.

This is a shared wall with the other units.

-[Sheryl and Jasper] Yes. -The other concern is

a fire starting in this kitchen and jumping to that kitchen.

Yeah, they used the wrong material at first.

[Sheryl] It was fire-stopping foam.

-But he wanted this particular material. -[Jasper] Yeah.

[Donnie] It's like putty

-they kind of put on all these. Yeah. -[Sheryl] Putty, yeah.

So, we've never done a building like this before.

So now we know for the next one. [chuckles]

We've gotten everything, I think, on their list done.

We've got the putty on the electrical.

All the plugs are wrapped with fireproofing.

And then we're going to use

the fire-rated drywall here

and then on the ceiling, too, correct?

-[Sheryl] Yes ...ceiling. Yes. -[Donnie] ...ceiling.

-We talked about getting a bigger drywall team... -[Sheryl] Yes.

-...to see if we could bring some more the bodies in here. -Okay.

In two-three weeks, we should be back on track.

I wish I had gotten this project sooner,

before all the rough was complete.

You guys want to check out the other ones?

Make sure we got everything covered in the other units as well?

I mean, the difference between residential and commercial

can be huge and expensive, and I hate to see it.

Hi, Jonathan. How are you?

I'm well. How's it going over there?

It's going good.

Donnie has really kept us accountable,

and Kelly is helping us stay in budget.

Sheryl is still getting the things that she wants,

but we're learning how to do it cheaper.

[Jonathan] Well, that's good to know.

Everything you learned from Kelly and Donnie,

you'll apply it to all your projects.

We just finished the project in Encino.

And Sheryl did go over budget,

so I'm happy that she's compromising here.

[Jonathan] Me too. We'll help her stay the course

and we're gonna come over and apply some pressure.

We'll see you guys in a little bit.

-Can't wait to see you. Bye. - All right, bye.

I'm on my way to the triplex and I wanted to see the progress.

But I also want to talk through

where we are with all of our decisions,

finishing materials, things like that.

Jasper let me know that there may still be some places

where Sheryl is spending a little bit too much.

I'm glad Sheryl agreed to getting the discounted kitchen slabs

that Kelly took her to buy.

We brought probably about a 50% savings

for the exact same beauty.

So, that's what I want to drill home.

I want her to understand with the triplex,

you've got to find ways to bring those costs down.

Walk me through how you envision this kitchen.

Clearly, sink in the center.

-[Sheryl] Well, the sink is here by the window. -Oh.

-Okay. -[Sheryl laughs] Yes.

And then the cabinets just go straight across.

-[Kelly] Right. -[Sheryl] And then there's upper cabinets.

And I want the backsplash to go all the way up to the ceiling

with a really nice decorative hood.

And we have a large island,

- eight feet by four, waterfall edg e. -[Kelly] Mmm-hmm.

[Sheryl] And I'd also like to use that for the countertops

- and the full backsplash. -[Kelly] Mmm-hmm.

When I was doing all the numbers together,

because we're not doing engineered flooring,

and we're not going to do hardwood,

-we're doing the luxury vinyl. -[Sheryl] Right.

It's like pennies on the dollar in comparison.

So, we can do the waterfall because we can save money with the floors.

-Ding, ding. -[Sheryl] Oh, oh!

-What's happening? -[Sheryl] Hey!

-[Jonathan] How are you? -[Jasper] Good, how are you?

How's it going here? Are they giving you a hard time

-or are they listening? -[all laughing]

Actually, they're like the easiest clients of life.

-They're the greatest. -[Jasper] That is so nice.

[Jonathan] Okay, good.

Looking at the triplex, it's in great shape.

And I can see some samples laid out,

so it sounds like we're at the point

where we're finalizing our flooring, our cabinets.

Every dollar counts.

-[Kelly] We compromised with the vinyl flooring. -[Sheryl] Yes.

-Okay. -Okay? That way we we can save money.

[Jonathan] And the good thing too, is,

the aesthetic is going to be beautiful when it's done.

-[Jasper] Yeah. -And this is going to last

-ten times longer than a solid hardwood. -[Sheryl] Yes. Okay.

-I think this is a good choice. -[Kelly] Yeah.

[Jonathan] The luxury vinyl will be a savings for them.

And it's gonna stand up to the durability of having renters in there.

[Kelly] This is gonna be our cabinets.

Okay, great.

-So taking that into consideration... -[Jonathan] Yeah, that's nice.

I love that you're going with a nice, clean,

-lighter tone. -[Jasper] Mmm-hmm.

Have you talked about which flooring

you would want to go with?

-[Sheryl] Yes. -[Jonathan] On the end, here?

-[Jasper] Yeah, that was the one. -[Sheryl] That's the choice.

[Jonathan] They're very complimentary.

Kelly and Donnie are having a great effect.

Getting them organized,

getting them to understand the value

of some of these products that we're swapping out.

Is there anything that you have not ordered yet

that still needs to be ordered?

Or are we pretty much on track?

We're pretty good. We're trying to finalize tile

-for the bathrooms. -[Jonathan] Okay.

-Mmm-hmm. -[Kelly] We have to order this today.

-So let me show you this one first. -Okay.

All right. So this here would go primary powder.

-Okay. -So that we kind of differentiate the bathrooms.

And then for all the guest rooms,

we'll do like, a limestone.

-[Jonathan] Okay. -So, something a little--

We thought that kind of married well together.

-[Kelly] Yeah. -[Jonathan] Yeah. Oh, yeah.

[Kelly] And because it's neutral, it'll appeal to more renters.

All of this is going to look beautiful,

-tied in with the warmer tones of the cabinetry and whatnot. -[Jasper] Yeah.

-You're gonna be fine. -Ooh, and tell 'em what your installer said.

-Because we're doing large format... -[Sheryl] Yes.

...he doesn't have to spend so much time.

So, I was able to get the price lowered significantly

on installation for the tile.

A good thing to know as well,

you've got to have diversity in your trades.

So having multiple subs for everything,

-from tilers to framers to everything. -[Jasper] Hmm.

-[Jonathan] Because it keeps them competitive. -Yes.

There's nothing one of your subs hates

more than finding out you've got another option.

We love having long term relationships with our trades,

and we've built quality relationships,

but everyone needs a little competition.

Sheryl, I'd love to go with you

to see this other project where you went over budget.

-[Sheryl] Okay. -[Jonathan] To see where you possibly overspent.

-Okay. Okay. -[Jonathan] Okay, let's do it.

-All right. You keep going here. -[Sheryl] Let's do it.

-Sheryl, you and I... -[Kelly] And we can order tile.

[Jonathan] I want to see this other project

with Sheryl one on one,

and I want to see what she's spending on

and how she justifies it.

So, make a right.

[Jonathan] So this house, it is up for sale.

-It is up for sale. -[Jonathan] But it has not sold.

[Sheryl] Not sold. It's been on the market for 22 days.

-Here we are. -[Jonathan] This is it here?

It's right here. This is it.

[Jonathan] Oh, wow. All right. Nice job.

You've had this under construction for how long?

A year.

-[Jonathan] Oh, wow. -[Sheryl] Let's go in there.

[Jonathan] Now that is a door for tall people.

-[Sheryl] Perfect for you. -[Jonathan] The ten-foot door.

You could have brought that down, even a nine foot.

No-No buyer is gonna come in and be like,

"I'm gonna give you an extra $10,000

-because of the extra foot." -[Sheryl] Right.

So this is a project that you and Jasper worked on together.

[Sheryl] Yes, we did.

Well, you know how to create a good first impression.

[Sheryl] Okay, that's good.

There are obviously a lot of extra features,

like the herringbone floors.

The see through fireplace was a smart move,

and some people will see that and be like, "Ooh, this is a feature."

-[Sheryl] Okay. -But I think you probably

-spent more for the return you would get on this. -Mmm-hmm.

-Some buyers would pay more... -[Sheryl] Mmm-hmm.

[Jonathan] ...to have nothing obstructing

-the beautiful view of the yard. -Right. Okay, yeah.

-You're paying a lot more to put something in like this. -Right.

[Jonathan] I probably would have just put

your fireplace in the seating area

-and then left this completely open. -Open.

So the flow and the view is all the way through.

There are things that will actually get you more money in an offer,

and there are things that just look great

and may help you sell faster.

But they're not making you any more money.

Stone is actually beautiful.

And actually the black cabinets look nice as well.

I've also never seen these light fixtures before.

-Are these custom? -[Sheryl] They're not custom, but they were costly.

-[Jonathan] How much did you spend? -$3000 for the two.

-[Jonathan] For the set? That is pricey. -[Sheryl] Yes.

There could definitely be an opportunity

to find statement lighting that doesn't break the budget.

You've made some decisions that might be more

- personal preference than the masses. -[Sheryl] Okay.

-Can we see upstairs? -Yes.

Because I feel like some of the major overspending

-was probably with the tile. -[Sheryl chuckles]

-Does that sound familiar? -[Sheryl] It sounds familiar.

[Drew] Sheryl loves pretty and expensive things.

She overspends constantly.

So that's something we have to nip in the bud right now.

[Jonathan] We have so many ways

that we can recommend somebody bring their costs down

without sacrificing

the lux look that they're going for.

You don't have to spend a million bucks

make a place look like a million bucks.

-Oh. [chuckles] -Here's the... Yeah.

Wow, this is over the top.

-Oh. [chuckles] -So, here's the... Yeah.

[Jonathan] Okay. Wow.

[Sheryl] I kept adding,

and the next thing you know...

[Jonathan] This is over the top.

-[Sheryl] Okay. -[Jonathan] There is a wow factor in here,

but I don't think it was necessary to do all of this.

What was the overage in here from what Jasper wanted to spend

versus what you ended up spending?

I went over $150,000.

-Oh my God. -On all of the bathrooms.

I'm gonna include my closet

because I added glass doors to the closet.

[Jonathan] This closet has a door to close it off.

-Yes. -So when you're in the closet,

it's one more step to get in.

-So, it isn't necessary. -No.

Because you're in the closet already,

and this closet's actually really nice.

So, what's the all-in cost for acquisition, construction, everything?

$2,595,000.

What's your list price?

-$3.9 million. -Which would put you at,

-sort of the high end in this area. -Yes.

The product itself is really nice,

but you would end up getting the same sale price

without some of the add-ons that you've done.

-I understand that. -Ten foot front doors.

-Mmm-hmm. -Extra doors in the cabinets,

-excess tile all throughout. -[Sheryl chuckles] Okay.

I'm starting to understand why Jasper is concerned

-about some of these things. -Okay. Yeah.

And I think you should be concerned, too,

because if someone was coming in here just from a design standpoint,

they would snap this up in a heartbeat.

The only thing preventing people

will be the $3.9 million price tag.

-Okay. -So you're selling people on the design,

but you're probably not selling people on the price.

-Okay. -Um, yeah, the numbers are important.

It's not like you are unaware.

-Okay. -That there's a spending problem.

-Yeah. No, I'm not. I'm aware. Yes. -[Jonathan] Yeah.

I've learned so much in such a short time.

It is unbelievable.

-We still have a long road to work on. [laughs] -Okay.

With the overspending.

This is life changing.

This is gonna turn the page to my career.

[Jasper] Donnie gave us the amazing idea to stack trades.

So we had five trades here today.

Ramon, are you finished?

Oh my God. Okay, he's on his way.

He's on his way now.

[Jasper] We set up an office on site

just so you know, our trades can come to us and verify design.

Uh, it'd be about 20 minutes, 20-25 minutes.

[Jasper] It's crazy, loud, but music to our ears,

just all the work being done.

Guys are gonna be able to get to that soffit pretty soon.

We're doing things differently now.

Berto?

Donnie has helped us utilize our trades.

It really is pushing things forward.

And so we're gonna use herringbone in the shower.

Chevron tile on the floor and in the niche.

I'm gonna leave this for you to make sure

we don't make any mistakes, okay? There you go.

Let's go to the next bathroom.

I'm excited. Super, super excited about it.

Powder room.

-Herringbone here with the marble. -[Humberto] Okay.

[Jasper] We're learning how to stack trades

without them interfering with each other.

I think that's what we were afraid of,

that everyone was gonna get in each other's way.

-[Sheryl] Right. -[Jasper] But no. There's three units.

[Jasper] We had work done in all three.

-Very, very productive. -Mm-hmm.

Okay, bye-bye.

Hey, Patrick, Ramon is actually finished.

Thanks, bye-bye.

He's on his way.

Remember to make sure Beto gets that garage in the back.

We need to make sure he does that.

That's the only bathroom

-that's on the first floor... -[Jasper] Okay.

...in all three units, so I need to make sure

-he gets that. -[Jasper] Okay.

[Sheryl] The success of this investment matters

tremendously to me because we want to make

a transition into commercial projects.

-[Jasper] Hey, Donnie! -[Sheryl] Hey!

-[Donnie] How you doing? -Good, how are you?

-Hanging in there. -Okay, you're gonna be proud of us.

-Yeah? Where are we at? - Well, first,

we have computers here.

We made a makeshift office in the garage.

-Yeah. -So we're working from here.

And we stock trades. Can you believe it?

-Really? -[Sheryl and Jasper] Yes.

Nice. So how are we catching up?

I know we had the delays and went through that but...

-[Sheryl] Yeah. -...how's it coming?

Well, one good thing is

we found out that we can work from 7 a.m. to 9 p.m.

-in the area that we're in. -Mm-hmm.

So we'll do two shifts.

Overlap a bit and go up till 9:00?

Yes, the overlap and then go up to 9:00,

so we can make up for the lost time.

That's a big bonus. Yeah.

I have a, uh,

cabinet guy who's supposed to be heading over there

to try to meet with you guys. Are you ready for him?

-Yes, we're ready for him. -Yes. Mm-hmm.

[Sheryl] We've met with the cabinet makers

and finalized the design for the kitchen.

It is custom.

We are ready for you, Eric.

However, he's given us a discounted rate

because we're doing three kitchens at once.

Here's the design we're working with.

-These are the elevations. -[Jasper] Okay.

[Eric] And this is the design that...

-[Sheryl] Ooh. -[Jasper] Oh, perfect.

-[Sheryl] Okay. -[Jasper] Okay.

The refrigerator is now going to be on the end.

Um, and then we can just switch those cabinets.

-Yeah. -Other than that, it's perfect.

I also brought you guys this page

-that we have... -[Jasper] What is this?

-[Sheryl] Oh, what is this? -So basically, what we can do is

is pick the materials,

-basically two tone... -[Sheryl gasps]

-Oh. -[Eric] ...or one tone.

-[Jasper] Oh, wow. -[Sheryl] Oh, wow.

-Look at that. -[Eric] Yeah. So, this is the actual,

real material we're gonna use.

Can we switch?

-Can I see? Yeah. -[Eric] Yeah, of course.

-I want to see... -[Eric] That's the benefit about this.

-[Sheryl] Oh, I like that. -[Jasper] Okay.

-Oh, yeah. -[Sheryl] I love the bottom white.

-I do, too. -And then we do the wood on top.

-[Eric] Yeah. -[Jasper] Yeah.

[Jasper] We had some leftover 3D Siding from the exterior,

and I had this idea to use that leftover,

which would have just sat in storage,

and we're actually gonna put that in the living room

and make a full-design wall,

and it's at no extra cost to us.

Can you do it vertical?

No, I like it like that. We can just run it from floor to ceiling.

-Floor to ceiling? -Yeah, and then

-just this area right here. -Okay.

[Jasper] We just gotta get tape and mud

on there, and that should take a week,

and then we can get you in here.

-Just Let me know. -[Jasper] Okay, perfect.

[Sheryl] Kelly convinced me to use a large format tile,

which saves money

on the materials and installation.

I thought that 12 by 24 would look pretty cool.

And the heron bone pattern...

-On the wall. -...a little dramatic, right?

Very dramatic.

[Sheryl] I negotiated with my tile installer

to do any pattern that I want with the large format

for a price that was less expensive.

[Kelly] Let's talk about vanities.

-[Sheryl] Okay. -[Kelly] I have one downstairs.

-I want you to see it. -[Sheryl] Okay.

I know you wanted to do custom, but I want to change your mind.

-I know you love your custom, but... -[Sheryl] I do.

Okay, what do we have?

[Kelly] What do you think?

I know you love your custom...

-[Sheryl] I do. -...but...

Okay, what do we have?

[Kelly] What do you think?

-It already has the countertop. -Okay.

-It already has the sink. -Has a sink.

-Wow. -[Kelly] I know

-you love custom. -I do.

We don't have a custom budget here. [laughs]

-Okay, I know that too. -[Kelly] Yes.

And we need 13 vanities.

So your savings is,

you're probably looking at $25,000.

And the great part is that,

honestly, you're not sacrificing style at all

because it's got fluting...

-Yes. -...it's got some architectural detail.

And when you just shop big box,

if you really research,

-you're getting something that's actually quality. -Right.

-And also it looks fabulous. -That's amazing.

The actual vanity that she picked out

saved a lot of money, so,

a new way of doing things, and not everything has to be custom.

[Drew] We need to talk about Sheryl and Jasper's project.

With all the fire code delay

and just the size that this project has become,

I feel like we're barreling towards our original

scheduled finish time

and we're nowhere near complete.

I think we need to figure out a plan.

Well, we're not gonna finish on the same schedule.

My bigger concern is that we're gonna lose Donnie and Kelly.

They have to move on to other projects.

-[Drew] Yeah. -[Jonathan] And we can't be in a situation where

the other projects suffer

because this one is taking longer.

Yeah, but we also don't want to leave

Sheryl and Jasper high and dry.

[Jonathan] Do we have any other designers that we could send

to the other project to get started right now

so we can continue with Kelly on this one?

Uh, Gianna might be available.

We could probably move her over,

at least temporarily for a few weeks.

That would actually be pretty good...

-Yeah. -...because that would

just sort of keep things moving in the right direction.

What I'm not too thrilled about

is the fact that we don't have a replacement for Donnie.

We have no other project managers

-available right now. -[Drew] Yeah,

but the only thing there, though,

Donnie's been singing their praise. He said that

Sheryl and Jasper, because they have experience, they're not rookies,

they've been doing a great job managing the project.

He actually feels that they could handle this. So,

at this point, maybe we don't need a project manager with them.

Pull Donnie. We'll keep Kelly here.

We'll move Gianna onto the new project.

And that will give us that little extra buffer.

I think it's the best case scenario

for where we are right now.

Just covering all bases.

-[Jonathan] Let's make this Donnie's last week. -All right.

[Drew] It doesn't matter if you're brand new

to real estate or if you've been doing it for 20 years,

you can always learn something new.

We're always learning. We're going back to school,

learning from other professionals.

And even if somebody has a lot of experience

with the same renovation they're doing,

it's very valuable to have others

that do it, to come in with a different perspective.

[Jonathan] Since we're losing Donnie early,

we thought that he should tour their other triplex

as a part of our mentorship backing.

His feedback on that project

could be very valuable to them.

The architecture, obviously,

-the same -[Jasper and Sheryl] Yeah.

[Donnie] Sheryl and Jasper have a sister project

just a few blocks away from here.

It's the same triplex,

but zoned residential, not commercial.

It's clear that they were struggling to do

a multi-unit project before we got involved.

But they've proven to be quick studies,

so before I move on to another project this week,

I just wanted to check things out here.

From the outside, it looks like the same

architectural plan, same layout.

-[Jasper] Yeah. It's the same plans. -[Sheryl] It's the same plans.

[Donnie] I mean, that's amazing.

From a project management standpoint,

it allows you to lay the whole thing out

from the scheduling, from materials.

-Every portion of it... -Right.

...can be exponentially easier

because one, you've already done it,

but you're also basing it off

-the same set of plans, which is amazing. -[Jasper] Yeah.

I'm nervous to show Donnie

the project here, and embarrassed.

[Jasper] We go to the first triplex

and there's so much progress going on there,

and then we come here and it's just so far behind.

It's the same project,

but one's gotten a little more love.

-A lot more love. -[laughs] A lot more love.

How long ago did you break ground on this?

-It's been two and a half years. -Wow.

That can definitely damage the pocketbook.

-Ouch. [laughs] -[Donnie] Yeah.

[Sheryl] We did hire a GC

to take care of both properties,

and that GC wasn't doing

what he was supposed to be doing.

And the time just kept lapsing with little progress,

so they had to fire him.

So Jasper and I took over,

and we ultimately just focused

more on the other project

and neglecting this one.

We have a mortgage every month,

insurance, taxes.

For something that's just dormant right now.

It's not the best investment action

to have a project that's dormant.

That's like the worst that could happen.

[Donnie] A lot of catching up

-to do here. -[Sheryl] A lot of catching up to do.

The goal was to do

-both projects simultaneously... -[Jasper] Mm-hmm.

[Sheryl] ...and to keep the cost down

by doing them at the same time.

Maybe I waited too late to jump in, um,

to figure out what was going on.

[Jasper] So you see the wires are cut.

[Donnie] Yeah.

[Sheryl] So we've been broken into

multiple times, so...

[Donnie] The bummer is not just losing the material,

but also having to go back and redo...

-Redo it. -Yeah.

They have to pull it out and redo it all.

And we passed inspection.

[Jasper] It's been what, like, three times now?

-Wow. -[Sheryl] Yeah, it's been three times.

[Donnie] Wow.

One really cool thing I think you've got going on

is that you've got the same set of blueprints,

-so the layout's the same. -[Jasper] Mm-hmm.

So it allows you to kind of learn from it.

-We've made so many design decisions over there... -[Jasper] Mm-hmm.

...that now you can come in and there's not a lot of questions.

-Right. -Because we know we're gonna

do the build out with the TV.

We do have to do some rewiring, obviously.

-This is such a bummer to see. -[Sheryl] Yep, lots of rewiring.

-[Jasper] I know. -But

at least you know where we moved

some of these plugs at the other unit.

-[Sheryl] Right. -So we know, where we can say,

well, that was gonna have to be moved anyway.

-Awesome. -So, I mean, that's a good thing

that you have that. But I think

when you've got this many units,

even though the cost of a project manager,

even part-time, just someone that's keeping the schedule,

someone that's overseeing it,

the benefits can outweigh the cost.

Even though there's a lot to redo on this project,

the knowledge they gain from

doing the other triplex with the brothers

will really give them a leg up.

Someone that's just thinking about

the project management of this...

-Yes. -...really will help you in the future.

Schedule everything out and package it all

as one larger project.

-[Jasper] Mm. -And even though it's a bigger project,

it may seem more manageable.

If you're not organized,

if you don't have a good project manager,

a project that should take you four months

could take you a year and four months.

Or with Sheryl and Jasper, two years and four months.

[Jonathan] They're being pulled to site constantly

to deal with things that they shouldn't have to deal with.

That means they can no longer focus on

business development. On the next investment.

There are better uses for their time

than being in the weeds

doing what a project manager should be doing.

[Jasper] We have a problem.

Where are the closets

-[Sheryl] Uh-oh. -...in all of the units?

Oh, my goodness.

They didn't frame the closets.

[Jasper] Isn't it on the plans?

It's on the plans. It's on the plans.

Someone missed it.

[exhales] Oh, my gosh.

-[Drew] Hello. -[Sheryl] Hello.

-What's happening? -We have a problem.

-[Drew] Hello. -[Sheryl] Hello.

-What's happening? -We have a problem.

They did not frame the closets in the bedroom.

How many of the bedrooms did he miss?

[Sheryl] Three in the first unit,

and then there's

two in the second, two in the third.

He missed seven closets?

-[Sheryl] Seven closets, yes. -[Jasper] Yes.

Seven out of nine.

[Drew] Oh, my gosh.

Was it on the plans?

-[Sheryl] It's on the plans. -[Jasper] Yeah.

[Sheryl] And the framer's mistake.

Okay, so are they willing to knock off

some money for what it's gonna cost you?

We've already paid them in full.

Oh, my gosh.

Why would you pay them in full

when they've made a mistake that drastic?

So our framer is somebody we've been

doing business with for years.

Did not get our closets framed in,

and I kind of got comfortable.

And no, I did not check it.

Another dumb mistake that's gonna cost money.

I'm like 20 minutes away from where you are.

Let me finish up on a project here and then I'll

pop by just to have a look at it

and we can come up with a solution.

-Thank you so much. -Awesome. Okay, we'll be here.

[Drew] When you have seven closets

missing their sprinklers and their framing,

that's not a little problem. That's a huge mistake.

This is gonna probably cost them a lot of money and time.

Sheryl and Jasper,

shame on you for not catching this earlier.

All right, let's see.

Should we start with the main bedroom suite?

[Jasper] Mm.

[Drew] Oh, okay. So which are the two bedrooms

that still have it framed in and the sprinkler?

Uh, the two primary bedrooms in the other units.

Okay, so he can come back and frame those two.

-Okay. Okay. -[Drew] That's no problem.

-Because you already have the sprinkler in there. -Right.

You actually should be reimbursed

from your plumber who did all the sprinkler heads, too,

because they were supposed to run a couple of additional

-and you paid for it. -[Sheryl] Yes.

[Drew] So, I would tell your sprinkler guy,

"Are you able to come back here and run the other heads

-that I already paid for that you're supposed to do?" -Okay.

And then tell your framer, "Can you come back

-and frame the way you're supposed to?" -[Sheryl] Okay.

So, if we do that, we've already passed inspection.

We have to call the inspectors back out, right?

-Yes. You would have to have them come back again. -Nightmare.

[Drew] The other thing we could do then is,

we could just do some custom closets that are like a built-in,

but they're not actually

-a framed out room -[Sheryl] Oh, yeah.

So, if we did something like that,

then you wouldn't need a sprinkler in it

because it's just a part of the room.

-And we don't have to call inspection for that? -[Drew] No.

-[Sheryl] Awesome. -It's basically considered,

-like, a fancy furniture piece. -[Sheryl] Furniture.

-[Drew] Yeah. -Oh, I love that. Okay.

-[Drew] No, it's good, but it's expensive, right? -It's expensive.

Can I look at the other rooms for a second?

-[Jasper] Yeah. -[Sheryl] Let's go here.

[Drew] So, this is the one that

was supposed to be a closet here.

-[Sheryl] Yes. -[Jasper] Yes. So we put the TVs there.

Yeah, this is tough because you can't

put a closet here because of the window.

-[Sheryl] Right. -[Jasper] Yeah.

You can't put a closet here because that's your only bed wall, really.

You can't put a closet here because of this,

so this is really your only wall.

[Jasper] Mm-hmm.

You could do two tall closets

on either side...

-Okay. -...with some custom work, a little work, right?

And then, how I've done it before,

to frame out a TV, you could actually do

a counter across the middle.

[Sheryl] Oh, nice.

[Drew] No buyer wants to buy

and no renter wants to rent

"a bedroom" that doesn't have a closet.

Go back to your framer

and say, "Hey, with all the business I give you..."

-[Jasper] Mm-hmm. -"...this was your mistake

'cause it was on the plans.

Are you willing to give me that money back

-because you were supposed to do that work?" -Okay.

-We'll go have a look downstairs? -Yeah.

[Drew] She's not marketing this just as a standard rental,

she's marketing it as a luxury rental.

And you need to have top-of-the-line features

for that kind of a project.

But you also don't want to overspend,

and now we've made a mistake that's gonna make them overspend.

All right.

Okay. It's looking great, the cabinets, the floors.

I love the tone that you went for.

It's warm, it's inviting...

-[Jasper] Yeah. -...but it still lightens up the space, so...

I'd love to stage one of the units...

-Ooh. -...because it'll just make it look that much better

for the photography, and showcase

to any tenants out there

-what it could look like. -Awesome.

It'll help you rent these out and get a quality tenant in here,

but you have to be done in time.

-Thank you so much. -Okay, see y'all.

-Bye-bye. -Bye.

[Sheryl] Oh, wow. Okay. So they got the kitchen in.

That's great. Now we've got to get on them about

bringing the doors

-and finishing for the cabinets. Yeah. -[Jasper] Okay.

[Sheryl] And he's got the double plywood for the stone,

so that's done. They can start cutting the stone now.

[Jasper] We're walking the units

to see what we have to do to finish.

-The plumber needs to come in. -[Jasper] Okay.

[Sheryl] I bought diverters, and they're not in.

And also the vents on the fans.

So the electrician needs to get on it.

They're here, and then they leave early. So we got to get on them.

This is the time where you have to stay on it.

The finished pieces on the electrical...

-Can I call and schedule him tomorrow? -[Sheryl] Oh, no.

-You need to call him today. -[Jasper laughs]

The units can look almost finished

and can completely fall apart with

-the little details of things. -[Jasper] Mm-hmm.

[Sheryl] Doorknobs.

[Sheryl] They're not here. Nobody's started that.

[Jasper] We're in the home stretch.

It's go time. So we're just really

just taking a list of everything that needs to be done,

and then whatever needs to be done,

figuring out who we need to call to get it done.

Oh. Vanity's in.

-[Jasper] Okay. -[Sheryl] Okay, all right.

Um...

I really, really want to put the custom...

-The floating cabinet? -Yes.

Yeah, I do. I like it.

I do. But I'm just so used

to the custom vanities.

I just could not get past

using custom vanities.

I knew it was gonna be hard to convince you...

Are we gonna be able to, like...

Well, we have 13 of these.

[Sheryl] I'm aware that it costs more money,

but if it flows well

and it looks really great,

we'll get more money for it.

Hi, Kelly!

[Sheryl] It was possible to get the 13 custom vanities done.

These are simple boxes.

He does all of our cabinetry,

so two days to get the boxes done and installed,

and then another two days to fabricate them.

And my cabinet guy went down

$400 for each one.

I am so happy with them.

That uses the oak,

the same as the kitchen,

-and the same-- -There's my little vanity changers.

[all laughing]

-[Kelly] Can we see what you've done? -[Sheryl and Jasper] Yeah.

-All right. -[Sheryl] Voila! [laughs]

Okay. Can I make a confession?

-[Sheryl] Okay. -[Kelly] I love them.

[Sheryl] Oh!

[Kelly] And I love them

more than the ones that I brought.

-Oh, you're kidding. -No.

-Okay. -I'm being 100% honest.

It's perfecto.

And I love

that it still has the storage,

and it has...

-The drawer. -...the drawer that comes out.

[Jasper] Mm-hmm.

And I think this countertop looks great.

-Thank you, thank you. -Oh, thank you.

-That was good. -I can exhale now?

-Yeah. -[Kelly] Yes!

No, you know what?

You know what you like, and that's important.

-Mm-hmm. -It was about saving money.

We clearly did not do that

in this stage of the game...

-Okay. -...but we did it in other parts,

-so I think it's okay. -We did.

-Let's see everything else. -Okay.

-I'm interested in actually seeing the kitchen. -[laughs]

[Kelly] I kind of bypassed it.

[Sheryl] I'm super excited

about the countertops and backsplash

because it looks exactly like what I love,

and we got it for cheaper.

[Kelly] This is so sophisticated.

-Wow! -Look at that nice little waterfall edge.

-I just love it. -You got your waterfall edge.

-I got my waterfall. -[both laugh]

-Look at the backsplash. -[Jasper] Yeah.

-[Sheryl] Look at that. -[Kelly] Yeah. It's stunning.

-[Jasper] It's beautiful, yeah. -[Sheryl] To die for.

We saved money by doing the backsplash the same as the countertop.

-[Jasper] Yes. -And it's still beautiful.

-I mean, now I know, right? -Yeah.

You can still get the same look.

I'm so happy Kelly showed us the back room.

[Sheryl] Yeah, the back room.

We were able to find some good pieces

and have that same dramatic look for less.

So, the brothers in their warehouse

-have all these... -[Sheryl] Oh, nice.

[Kelly] ...knobs and handles.

[Jasper] Oh, these are cute.

We have chrome, and we also have

-clear lucite. -[Sheryl] Clear.

-These are my favorite. -Yeah.

So, you guys, take a look at these.

Um, another thing that the brothers have

-is they have relationships with a bunch of vendors. -[Sheryl] Oh.

-[Jasper] Ooh. -[Kelly] And one of the vendors

-does window treatments. -[Jasper] Mm-hmm.

And they have graciously said,

if you want some window treatments,

-not just any window treatments... -[Sheryl] Nice.

...I got them to do motorized shades.

-Motorized, too? -[Kelly] Yeah.

So, I picked four colors that I thought

-could work well in this space. -[Sheryl] Okay.

So, you guys decide.

Um, there's a white, there's a gray,

there's kind of taupe.

-[Jasper] Yeah. -[Kelly] And this one has a little bit of texture.

[Jasper] My favorite is the taupe.

[Sheryl] I'm loving the white.

[Kelly] The white. Okay. Good.

This is what I'm gonna do. I'm gonna put

uh, motorized shades,

and they're gonna go all the way

on the slider right here.

And we're also gonna do

the stairwells.

So, decide what you want here with the knobs.

I will order the blinds to be installed immediately,

-and, um, call me if you need me. -Yes.

-I think the cabinets will be ready in about four days. -[Jasper] Okay.

[Sheryl] We need to do a count on

the plumbing fixtures

-and the mirrors. -Okay.

But I think we're ready for the brothers to stage the front unit.

-Oh, my gosh. I can't believe we got to this point. -[Sheryl] Yeah.

I feel extremely relieved that one unit is down.

We still have work to do in the other two units,

but we know exactly what to do.

We got the first one done.

So, everything that didn't go well in that one,

we got it all worked out in these two.

We think we're ready to stage the first unit.

Oh.

-Construction's done? -[Sheryl] Yeah.

-Yes. [laughs] -We got one done. Yes. [laughs]

Are you in the unit right now?

[Sheryl and Jasper] No.

-Second unit. -Second unit.

Why don't you leave that front unit?

We'll take care of staging that

so that the two of you can go hard focusing on the back two.

Get them done as soon as you can,

and we'll make that front one look pretty.

I think it's gonna save us a lot of time and money...

-[Jasper] Yeah. -[Sheryl] ...to be able to show that front unit

while we're working on the second and third unit.

I'm literally calling for staging now.

[Drew] I'm excited that Sheryl and Jasper have done this unit.

We will stage this. It'll look amazing.

Let's let them focus on getting the other two done.

[Jonathan] We brought in so much staging 'cause we want this space

to look perfect.

This is the show suite for the whole building,

and it has to be perfect.

[Drew] When you style it,

you bring in the furniture, the decor,

it takes it to a whole different level.

They will make more off of this project

because we're making it look beautiful.

[Jonathan] We're even gonna surprise Sheryl

by adding the first of the built-in closets

so she and Jasper can see how a mistake

can turn into a win.

Having a show suite

ready to go, ready to photograph,

that gives us an opportunity that we don't often see

in a lot of other projects.

[Drew] When the last sub-trade walks out the door, we can

have a tenant walking in with their stuff that same day.

They get all the living space downstairs,

and then they get all of this when they want it.

-It's like an extra 500 square feet. -[Jonathan] Yeah.

Ching-ching. I love it.

[Drew] Sheryl and Jasper have been deep in the trenches

working on wrapping up the final two units,

and have not seen the first unit

since the finishing work was complete.

[Jonathan] This project, it's been full of delays and overages.

Now they can look around

and see the positives.

[Sheryl] I'm a little nervous to see if it's gonna feel

the way I'm used to

-the home's feeling that I do. -[Jasper] Mm-hmm.

Whoa.

[Sheryl] Because this is our family business

and we've put so much into this, I'm nervous

to really see if it delivers

what my dream is.

Oh, wait.

Oh, my God.

Whoa.

[Jasper] Oh, my God.

-[Jonathan] What do you think? -[Sheryl] It's beautiful.

This is way beyond

what I thought it was gonna look like.

Oh, my God. Look at this.

-Look at the island. -[Jasper exhales]

[Sheryl] It looks amazing,

and I've got the waterfall edge

that we wanted.

[Jasper] Oh, it's beautiful.

[Sheryl] The brothers did

a phenomenal job staging. I was blown away.

-[Jasper] Yeah. -And speechless.

[Drew] When you look at the palette in here,

this is high end, but it's warm.

-It's inviting. -[Jasper] Mm-hmm.

And I think a big part of that as well,

it's the cabinets and it's the floors.

[Jonathan] This is luxury vinyl.

[Sheryl] We will never, ever use what I was using again.

Yeah.

This was easier to install.

It cost a lot less.

I'm sold 100%.

It's just breathtaking.

-And we saved money. -[Jasper laughs]

And you saved money, yeah.

That's the part that gets me teared up.

[all laughing]

I mean, honestly, it doesn't look

any different than things that I normally do.

It looks on that level.

With the amount of work that was on your plate,

having to navigate all the issues with

the permitting and adding sprinkler systems and...

You had so many issues,

but you nailed the design

because the building looks amazing.

The finishes that you've picked,

we adjusted some of them,

but for the most part, this is everything

that you chose.

[Jasper] Just seeing this is just like a sum of

all the decisions you made since I was little.

I'm just so proud of you.

[Sheryl] I really

honestly did not expect for it to look that amazing.

-[Jasper] Mm-hmm. -[Sheryl] I did not. You know,

it's a nice-sized room, but my God,

when you brought the furniture in,

it's way bigger than I thought.

It is just beautiful.

-It's phenomenal. -[Jasper] Mm-hmm.

Shall we head upstairs?

-Can't wait. -[all laughing]

[Drew] After you guys.

-Peek your new bathroom, bedrooms. -Oh, wow.

Ooh, look at this.

[Jasper] Oh, my gosh.

-[Sheryl] Oh. -[Jonathan chuckles]

-[Jasper] Ooh. -[Sheryl] Oh, wow.

Oh. [gasps] Oh.

-Oh, this is beautiful. -[Sheryl] This is beautiful.

Oh, my goodness.

[Drew] We decided not to go for a lot of color pops.

We kept it very neutral.

Did we get your style right?

-Oh, you got it. [laughs] -Oh, my gosh. Yes.

-[Drew] What do you think? -[Sheryl] Oh, my gosh.

It looks like a design.

Like, it doesn't look like a solution to a problem.

-Yeah. -It looks like it was built in

and it was supposed to be like that.

[Drew] Yeah, no, it looks great.

-[Jasper] The closets are beautiful. - [Sheryl laughing] Yeah.

It doesn't even look like a mistake was made

or that they weren't framed out.

-No. -It looks like that they were

supposed to be there.

[Drew] Do you want to see the main bedroom?

-Yes. -Let's see that one.

Take a look

at how inviting this is.

-Oh... -[Sheryl] Oh, my goodness.

-...my goodness. -[Sheryl] Wow.

[Sheryl and Jasper] Wow.

[Sheryl] I mean, I'm just almost speechless.

This is great. And we did this

on a budget.

-You've changed me for life. -I know, right?

And you have a huge bathroom.

-[Drew] This is gonna set the mark. -[Sheryl] New bathroom.

Oh wow. This is beautiful.

[Drew] I mean, you went with the custom vanities

and spent an extra 20 grand

that you didn't need to.

They look great, but that comes right out of your profit.

[Sheryl] I'm aware that it costs more money,

but I just couldn't compromise.

That's a big thing for me. [laughs]

[Jasper] Seeing this as sticks and bricks

-a couple months ago to here, it's like... -[Sheryl] Yeah.

If you didn't come in...

[chuckles softly]

-Yeah. -It probably would have been another year.

[Sheryl] I don't know

-if I would have made it another year. -We didn't have another year.

In all honesty, you saved the project.

-[Jasper] Yeah. -I don't know how long we could have kept going.

I think the big thing here you're learning is

it's all the organization.

When you have someone project managing

that stays on top of your timeline and budget...

-[Sheryl] Right. -...you can get so much more out of a project.

-[Sheryl] Oh, yes. -[Jasper] Mm-hmm.

It is expensive to have a project manager.

-It is more expensive... -[Sheryl] Mm-hmm.

...to lose your project.

-Oh, yeah. -We spent maybe six,

seven, eight times a project manager salary

-trying to fix all the mistakes. -[Sheryl] Yes.

Working with Donnie was great.

-Yeah. -We'll never do a project this size

without having a project manager.

A project manager, in the long run, saves us money.

Wow, look at this.

-[gasps] -[Jasper] No way.

This is like a whole other house outside.

[Jasper] Oh, my God.

-All bonus square footage. -[Sheryl and Jasper laughing]

[Drew] This looks like the common area

for a five to ten unit building.

-You know, it does. -[Jasper] It does.

[Sheryl] And this belongs just to this unit.

[Drew] Just to the one unit.

[Jonathan] You have a dining area, two lounging areas.

[Sheryl] Look at the view.

[Drew] It looks beautiful. It's gonna show well.

The pictures are gonna look amazing.

-[Jasper] Oh, yeah. Oh, yes. -For sure.

-I could have never imagined this. -[Jasper] Yeah.

[Sheryl] It was a surprise that the brothers said,

"Let's stage one unit." In my head, I thought,

"Oh, we have to have all three of them done at the same time."

But I see a big upside

to staging one unit.

Now we can show it.

It's so much easier to rent a place

-or to sell a place... -Right.

-...when it's beautifully staged. -Oh, yeah.

I think we should dig in a little on the numbers.

-[Jasper] Mm-hmm. -I know, originally, your renovation budget

-was gonna be 1.2. -Yeah.

-You ended up, you know, just shy of 1.6. -Yes.

It was a little bit higher. But this is the thing.

-You could sell this for 3 million. -[Jonathan] Or...

make much more money over the long term

by keeping this as a lease.

-Okay. -You're the numbers person here.

-Yeah. -So you've done your research.

-Mm-hmm. -You know what the values are in the area.

-Yeah. -What is it...

See how nice this looks. What do you think you can get?

I think between

5,900 and 61.

Oh, my gosh. You are so on the low side.

-You're on the safe side. -[Sheryl and Jasper] Really?

We dug in hard to look at properties this nice.

-[Jasper] Mm-hmm. -And you think about it. Up here,

this is a bonus...

-[Jasper] Yeah. -[Drew] ...what, 400 or 500 square feet.

You have your own parking.

You have so many things here that the comparable units

-don't have. -[Jasper] Mm-hmm.

You can get 6,800 for this.

-No way. -6,800?

-Oh, my gosh. 6,800? -Yeah.

You guys deserve, after all the effort you put in...

-Yeah. -[Jonathan] ...you deserve to make sure you max it out.

You did mention at one point

that you were contemplating selling.

I know we talked about, you know,

-selling a unit, renting two. -[Sheryl] Yeah.

Is that still on the table or...

No. [laughs]

-[Jasper] I don't-- -No.

If we can get 6,800,

-then absolutely not. -[Sheryl] Yeah.

Seeing it, it's so amazing...

-[Jasper] Mm-hmm. -...and I think that it's gonna just increase.

-I mean, look at this. -[Jasper] Yeah.

[Sheryl] And the neighborhood's just growing.

This looks like a building that we need to keep.

-[Jonathan and Drew] Yeah. -Yeah. We tend to just

sell our projects and sometimes we're

-right back where we started. -I've done that.

-[Jasper] Yeah. -Well, in one year,

renting these out for 6,800 bucks a month each,

you're gonna be coming in at, what is that, $240,000?

-$240,000 a year. -Yeah.

So get this rented,

hold onto it for a while, and before you know it,

-when these are all new buildings around you... -Yes.

...you guys all of a sudden have your retirement plan.

-Oh, I love that. -No, that's so true.

You get that 6,800 bucks a month for each of the units...

-[Jasper] Right. -[Drew] ...you're at 10% ROI.

-Right. -[Drew] I think that's pretty great.

10%? Is it 10%?

-It is. It's just... -[Jonathan] You guys will be at 10%.

-Oh, my God. Wow. -[Drew] Yeah, that's pretty good.

Can you believe this?

No, I cannot believe it at all.

-Congratulations. -Thank you.

-Thank you. Thank you. -Oh, my gosh.

-It's such a... -Thank you.

Let us know when it gets rented out.

These guys were so down in the dumps.

When we first met them, they were stuck.

They didn't know what to do.

And it's a totally different personality now.

We know a winning horse when we see one.

I think Sheryl and Jasper, they're smart.

Yes, they've made some mistakes,

but that doesn't mean you just write them off.

They're willing to learn and grow.

And the best part here is

they were willing to listen to our advice,

and that got them back on track.

-[Sheryl] Thank you. -[Jasper] Thank you.

After all of this, I'm ready to jump into another commercial project.

-[Jasper laughs] -[Sheryl] Yeah, she doesn't know this,

but I'm looking at a 17 unit in the area.

Lord. Can I get a vacation first?

[Drew] Sheryl and Jasper ended up renting out

the first two units for $6,800 a month,

but they exceeded our expectations

by renting out the larger unit for $7,300 a month.

That is a great sign for things to come

when they finish the other triplex down the road.

And as for that Encino property that we toured,

they're now renting that out, wait for it,

at $22,000 a month.

Wow. That's amazing.