All language subtitles for Backed.by.the.Bros.S01E07.1080p.WEB.h264-EDITH[EZTVx.to]_English (SDH) [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.
-Oh!

[Jonathan] So we want
to back you guys.

[woman exclaiming]

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 us,

"Oh, no, guys, bad idea.
Rookie mistake."

There already
200 grand in the hole.

-Obviously,
this needs some work.
-Yeah.

On paper,
some things can look great.

In person,
a 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?

[upbeat music playing]

Real estate
is a risky business.

The market is in flux.

Have housing prices peaked?

I don't know.
Drew doesn't even know.

So it's even more important
that real estate investors

who bought
when the market was high

make good choices
with their properties

so they can attract
renters or buyers.

Real estate investing
is not for someone
who's insecure.

I mean,
you have to be confident
in what you want to do.

You've got
to have a thick skin.

If you don't
have the confidence
to make it in this game,

you need to partner
with somebody who does

or have a mentor
that can help you through.

You don't have to have
all the money.

You don't have to have
all the knowledge.

You just have to have
the ability

to think through the process
and think outside of the box.

There are a million ways
to buy, reno and flip a home,

and there are even more ways
to lose money doing it.

You have to know
what you're doing.

It feels good for us

to be able
to get these investors
to the finish line.

-All right.
-All right.

This is why
you buy a house here

-because you want
that beautiful view.
-[Jonathan] Yeah.

Glassell Park
has a ton of potential.

There's a lot
of properties here
that are undervalued.

If you're looking long term,

this is
a good place to focus.

[Drew] Especially
if you're looking for
an income property,

this is the kind of area
that families want to be.

Christina and Arek
want to add two rental units
to their property.

Both the attached garage
and the detached garage

have been sitting empty
since they bought
the property last year.

[Christina] We fell in love
with this property
the minute we saw it

mainly because
it's two lots side by side,

that we thought
would be perfect

for a separate
rental property.

I work in strategic
financial planning,

so we applied that
to our endeavors
that we do on the side.

[Jonathan] Arek and Christina
have done a couple of
investment properties before,

and that's great.

This one, though,
has kind of derailed.

How are you?

Nice to meet you.

-Jonathan.
-Arek.

[Jonathan] It's kind of like
a two-prong approach.

We're looking
at the investment property,

and we're looking
at the investor.

-All right.
-[Arek] All right.
So this is the main house.

Okay,
so you have two levels.

It's literally a full--

-I thought
you guys lived here.
-[Arek] We did.

[Jonathan] So you're renting
a space to live in

-with your three kids
while you renovate?
-[Christina] That's right.

The plan was
to update the JADU.

Turn it into
a, uh, short-term rental.

And while we were at it,
we were going to update
the kitchen.

And, uh,
while we were at that,

we ended up changing
all of the windows upstairs.

And as soon
as it started raining,
every window leaked.

-Stucco was
incorrectly installed.
-[Drew] Oh, no.

So, it ruined all your floors
and everything.

Ruined all the floors here,
but more--

It went through the walls
and went downstairs.

-Yeah.
-Oh, no.

[Christina]We ended up having to gut
the entire house.

[Jonathan] Even though
this isn't their rental unit,
I'd like to look around.

You can learn
a lot about an investor

by looking
at their current projects.

Were the windows larger before
and you reduced them?

-Or is that the same?
-[Christina] They were
larger.

Why wouldn't you have put in
as much glass as possible?

[Christina] I got
those windows secondhand.

I had to go
with what I had.

How much did you save
going with these windows
instead of brand-new windows?

$20,000, $30,000.

Eventually,
if you ever did go to sell,

if you had all glass,

-then you probably would get
an extra $50,000 or more.
-That much?

Did this happen
on the last project, too,

-where everything
kind of went crazy?
-[Arek] Things happened.

Things always come up.

How much
additional cost came up

in the last
investment you did?

Our budget was 100,000,
and it went over by 150,000.

Yes.

Why don't we head out
and see the junior ADU?

-Cool.
-Okay.

This is the first
of your two rental units?

-Yeah.
-[Jonathan] Yeah.
Watch your step.

Oh, wow.

Paint a quick picture for us.

-We were gonna have
the kitchenette over there.
-[Jonathan] Okay.

-The living room over here.
-[Jonathan] Oh.

[Christina]And the bedroom over there.

What were you thinking
for rent on this?

At least 22 monthly
if it was a short-term rental.

Why don't we have a look
at the other, the ADU?

So are you thinking
that'll be a two-bedroom?

Yeah.
Two bedroom, two bath.

[Drew] She's looking
at the numbers,
she likes to dig in.

She understands
you have opportunity
for two rental suites.

It's a very family-oriented
neighborhood.

There are
a lot of pluses here.

All right.
Are you gonna rent it as is?

[Christina chuckles]

[Jonathan] You want to do
two bedrooms in here?

[Arek] Our plan was to add
an addition to the back.

We submitted plans
and got approval.

[Christina]A two-bedroom here
will probably bring in

anywhere between
$5,000 and $8000 in rent.

We thought the fastest
we can get it turned around

and start producing
cash flow the better.

-Yeah.
-[Jonathan] You've got a house

-and two potential units,
and none of them are livable.
-Yeah.

-So why don't we head back
to the main house...
-Yeah.

-...and, uh,
talk about everything?
-[Drew] Watch your step.

How much
did you say you have?

We're working
with about $200,000.

[Drew] I mean,
this is a substantial
amount of work.

What we're seeing right now--

-You'll never finish in 200.
-You're never gonna finish.

And if we're gonna back you,

it's for
the investment portion.

So as much as we're
talking about this area,
this is for you to live in.

We want to focus
on where you have
some potential rental income.

I'm open
to taking out a loan

to finish
what needs to be done.

[Jonathan] How much
are you thinking additionally?

Possibly another 200.

I would probably move forward
getting that extra cash

so you have about 400k
to work with.

Every month
you're sitting here
with it unfinished,

-you're losing
a ton of cash.
-[Christina] Right.

What's the big thing
that you think
you need from us?

A general contractor
that we trust

because I have
a full-time job.

We have three kids.

We don't have the capacity

to handle the project
of this size, of this scale,

which increased all at once.

If we had a GC,
it could be done
in five months.

We're talking with
other investors as well,

so we're trying to figure out
who do we want to back,

who has the most potential.

Why should we back you?

Because the return on this
couldn't be any higher.

The potential
of the property
is spectacular.

And we also have
a double lot.

You guys have the potential,
but you're at a complete
standstill.

We're freaking out
on the inside.

If they don't pick us,
it's going to be very sad.

[Arek] They didn't
candy coat anything.

There was a lot of tough love.

We'll reach out to you
if we have more questions,
and we'll go from there.

-Thank you. Thank you so much.
-Thank you so much.
We appreciate your time.

-[Drew] Yeah.
-[Jonathan] Yeah,
I definitely like that

they're realistic
in approaching where
they are on the project.

Problem is they don't know
how much it's gonna take
to get to the end.

These guys have experience,
but they look like they've
lost their confidence.

I see the potential
in the property,

but I don't think this is
a slam-dunk choice for us.

Our next pitch
is from an Analia and Arash.

They're a couple
who have sunk
their life savings

into a flip property
in Culver City.

Ay-yi-yi.
I like Culver City.

Hello. This whole area
is like gold mine.

[Drew]This is an amazing area.

-Love it.
-Huge draw, great restaurants,

lots of good shopping as well.

Rent on a three bedroom here
is about 7,500 a month.

There's a great market
in this area.

It's just that
you have to do quality work
to get that top dollar.

And the house itself,
I feel like they've done
some work already.

[Analia] We got this house
six months ago

below market value of market.

We have two years dating,

and this is the first time
we are investing together.

[Arash] We're hoping to get
enough equity out of it

so that we can buy
our first home together
and start our life.

Because it was off-market
and we wanted to get
a good deal,

we had to pay cash.

We sunk in all our savings.

So that's what makes us
a little nervous.

We definitely need
the brothers' help

because the more
we're working on this house,

the more things
we need to do.

So it's becoming
a little scary.

And it would be very helpful
if we can get someone

to guide us
through this process.

-Hello.
-Hello.

-Hello.
-Hi. Nice to see you.

-Drew.
-Arash.

-Nice to see you.
-Can I come in?

-[Arash] Thank you.
Thank you for coming.
-Oh, this is it.

Tell us a little bit
about yourselves.

I did some fix and flipping.

I would say
cheaper homes than this one.

So this is
a big adventure for us.

I grew up in this business
with my mom.

We did some flips,
some construction,

things like that
in Arizona, but--

LA is a very
different market.

Yeah, yeah.
Tell me about it.

[Jonathan] Fixer-uppers
are more expensive.

And getting a crew can be
a challenge because of demand.

[Drew]Do you have a GC already?

[Arash] We have a GC, yeah.

What's the budget you have
so far for the project?

About $140,000.

-140,000 for the whole house?
-Yes.

-Well, we've got
40,000 of it--
-Plus the backyard.

[Drew] Plus the backyard.

-[Arash] Well, just
the pool, 40,000.
-[Drew] Wait, wait, wait.

Everything in this
entire house

-that you're looking
at doing for $100,000?
-$100,000.

-[Drew] Well, did the
contractor quote you 100,000?
-[Arek] Yeah.

[Jonathan]If something sounds
too good to be true,

then it probably is.

$100,000 to renovate
this entire house
down to the studs

is crazy.

I cannot see how on earth
you would renovate
in Los Angeles

an entire house, full gut,
for $100,000.

[Drew] Well, materials alone.

What's on the other side
of this wall here?

[Arash]Those are the bedrooms.

We need the brothers' help
design-wise, for sure.

It's a small house.

It's hard to get
a nice floor plan.

[Analia] Even we both have
previous experience
flipping homes.

We are not
full-time flippers.

Being able to delegate
would be amazing.

We check with the city.

We can build an ADU,
two-bedroom, two-bath,
on top of the detached garage.

So your goal would be
tear this all down

and build
a two-story structure

-that is a garage below
and a suite above.
-[Arash] Yes.

There's one thing
that does scare me
a little bit,

and I'll tell you why,
but I want to show you
in the backyard.

I'm going this way.

[Arash] Yeah.

[Drew] I'll give you a hand.
There you go.
Watch your step.

Okay. Thank you.

[Jonathan] So tell me,
when you bought the place,
was the pool working?

-[Analia and Arash] Yes.
-And what's the cost
of the new pool?

-Uh, 40.
-[Analia] 40,000.

[Drew] That is probably one of
the the biggest mistakes
we see here in California.

[Jonathan]If you're doing
a flip property,

putting in a pool
is not a good ROI.

-No, it's not.
-That's usually something
we would just say no to.

You got to look
at the numbers.

The numbers do not lie.

-I know everybody wants a pool
and it is very attractive.
-[Analia] Right.

But pools are very expensive.

Usually, you won't
get back what you spend.

-Watch your step.
-Be careful.

[Drew] Please tell me
your $100,000 renovation

does not include
what you would do to that.

-No, no.
-No, it doesn't.

[Jonathan]What was your quote
for the back there,

if you were doing
a new structure, two story?

[Arash] Our quote was
250 a square foot.

[Jonathan] So somewhere
around 200,000.

Wait. Is that
the same contractor?

-Yes.
-Oh, yes. Same contractor.

-I don't understand
-I don't understand

how he would do
a $100,000 project
on a house

that is twice as big
than what he would do
over here.

-That makes no sense at all.
-Yeah.

Well, I personally think
it's going to cost more,

and we're going
to end up spending more.

[Drew]
So I'll just help you out.

-I personally know
it's gonna cost more.
-Yeah, exactly.

You walk away
from this project,

what profit
do you want to make?

400,000.

We bought it
for 1.2 million off-market.

The comps say 1.4 to 1.5.

After repair value,
we were taking 1.8 million.

[Drew] The only thing
I would say

is that a 1.8 million
valuation for this area

-would probably include
this being finished.
-[Arash] To finish it.

So you'd have to spend
a couple 100,000 here,

and you're going
to get closer.

Is it worth it?

You always have to weigh
the risk and the stress
for the return in the end.

Why is it you think
this is a good investment?

-Location and high
demand in this area.
-[Drew] Good on you.

-Thank you.
-Because you found
a great deal,

and you negotiated well.

I think it is
a good property.

But you could easily
get in over your head

-if you spend too much.
-Yeah.

What is it we would
bring to the project
if we backed you?

Bring value, right?
Definitely. And, and design.

Like, you know,
you saw the space.

It's small, so it's hard...

-[Drew] Yeah.
-...to come up
with a good design.

I like that
you already started.

I like that
you have a contractor.

Although I don't trust
their numbers.

We have to consider
who we want to back,

who we have
the resources to back.

This is a big project,
a lot of things that
we have to discuss.

-[Arash] For sure.
-But we'll get back
to you guys.

-All right. Come on.
-[Analia] Go inside.

[Arash]We really don't succeed
with this project,

it's going to really put
our life on hold.

[Jonathan]Sometimes you get a place
and you get a deal on it,

or what seems like a deal,

and you don't realize
on the back end,

you spend
all the money you saved.

We only have the resources
to take on one investment.

Christina and Arek
have a unicorn property

with the potential
for two additional units.

But we'll need to borrow
a huge amount of money

to get even close
to the budget required
to pull it off.

And it would be
a big lift for our team.

We're freaking out
on the inside.

[Drew] Analia and Arash
have their own contractor,

but their
quoted numbers are low

and we might have
to take the project over.

That job is way bigger
than they think it is.

We are not
full-time flippers.

[Jonathan]
It's funny because you see
how stressed they are.

I'm stressed to get everything
finished for $100,000.

It's insane.

[Drew] Yeah. I mean,
for this size of a home,

1.8, 1.85,
that's at the top end

of what
this house could get.

And also, at the top end,

people want to have
an ADU that's finished.

Comparing this
to Christina and Arek's place
is an amazing investment.

You have different
opportunities there.

The garage as well
as the attached ADU.

[Jonathan]Yeah, that's a huge plus

because they're already
starting work on that one.

[Drew]Here, they're budgeting

for the main house,
but nothing else,

which is not
going to get them

the value
that they're looking for.

So I don't think they're
being that realistic here.

[Jonathan]Granted, Christina and Arek
said the same thing,

and they want to do
the whole thing for 200,000.

-Yeah, yeah.
-Not happening.

So, a lot of unrealistic
measures on all sides.

If it came down to it
between these two properties,
I think I would have to say...

[Drew] I think I know
who I want to back.

Christina and Arek.

[Jonathan] Yeah,
the investment opportunity
for them is huge.

One of our contractors, Adam,
is coming off a job
and available now,

while one of our designers,
Kelly, she'll be available
in a few weeks.

This project is a good fit
for our current resources.

Analia and Arash
already have a contractor,
which is a feat in LA.

We'll make ourselves
available to review
their quotes and budgets,

which is where
they'll need the most help.

So I'm confident
with their experience
and our advice,

they'll get it done.

So let's call
Christina and Arek.

-Yeah, let's do it.
-Okay.

[line ringing]

-[Christina] Hello.
-Hey, Christina,
it's Jonathan.

-How are you?
-And Drew.

[Christina] Hi, Jonathan.
Hi, Drew.

[Jonathan]
We've been thinking
about your project,

and the biggest
challenge for us

is that you need
to be focused

on finishing
the two investment ADUs,
not the main house.

We don't have the ability
for both Adam and Kelly

to do both
the JADU and the ADUs.

We can focus
our resources on the ADU.

[Christina] I don't care.
I'll make it work.

-I love the initiative.
-[Christina] I'm on it.

Okay. Well, then, between
your resources and ours,
I think we could back you.

[Christina] Oh, my God.
I'm so happy.

[Jonathan] We'll send over
our GC, Adam, to get started.

[Christina] Okay. Great.

Well, have a happy dance
with Arek,

and we will talk
to you really soon.

-[Christina] Fabulous.
Thank you so much.
-Thanks, Christina.

-[Jonathan] All righty.
-[Drew] All right.

[Jonathan]
That's a lot to consider.

The JADU should
only take about eight weeks.

They've already done
a bunch of the work.

However,
they don't really know
what they're doing.

So I'm thinking
if we, kind of, give them
some mentorship,

that we can, kind of,
keep things pushing ahead.

If Adam and Kelly
tackle the ADU,
that's 12 weeks.

-That's doable.
-[Jonathan] The main
thing for me

is trying
to figure out a way

that we can
accomplish everything

but not stretch
ourselves too thin.

The ADU
is the bigger project.

So that's the one
that I'm fearful

that they might want
to make some decisions

or change something
that's gonna elevate
the budget.

I think we need to keep
a close eye on them.

But we also cannot afford
to have Adam or Kelly

fall behind
on our other projects.

So we need to keep
to our timeline.

I definitely
feel like this is gonna be
a huge opportunity for them

if they can
actually get it done.

[Drew] Christina and Arek
already have permits
and plans,

plus they've secured a loan
for $200,000.

So they'll have a total
of $400,000 to renovate
their two rental properties.

Our contractor, Adam,
is on site with the team,

working on the
new foundation

for the addition off the back
of the garage ADU.

Once they build on top of it,

this will absolutely create
more valuable square footage
for the rental unit.

[Jonathan]Since the property
is near a steep slope,

we need to check the soil

and get sign off
from an engineer
for this work.

But the elevation of the ADU
is part of the appeal
of the place.

[Christina] Adam and everyone
has been really helpful.

-You see the progress.
-[Arek] Mm-hm. Yeah.

It's great
to have the support.

[Drew] This has been
a massive first week.

Adam and his team
have already done
a ton of work

on Christina and Arek's
garage ADU.

The foundation
for the addition
has been poured,

and the framing is done.

Christina has been managing
the junior ADU,

so that should be
moving along as well.

Yeah, I think it would be
good for you to see this.

We need to get
a designer over here.

So I'm introducing them
to Kelly,

who is a rock-star designer,

to make sure
that they do the right things.

I do think
it's really great to have
a professional designer

to come in here to actually
look at what you're doing

to make sure that you're
not missing something small.

Lay out the land for Kelly,
just so she understands
everything here.

So this is the bedroom
and a, slash, work-from-home
office.

And then this is
the "living room."

[Drew] Mm-hm.

And there's a tiny
kitchenette/laundry room.

-And then there is a bathroom
with a shower.
-[Kelly] Mm.

[Drew]With a kitchen that tiny,

why did you decide to put
the laundry up there
instead of--

Because bathroom
is pretty massive.

This was, sort of,
the footprint before,

when we first
purchased the house.

So it's, like,
the path of least resistance.

-[Arek] That's right. Yes.
-You're already taking
the floor plan

from the original rental

-and basically
just making it your own.
-[Christina] Yeah.

-Yeah.
-[Kelly] Okay.

[Drew]
Every time there's something
that is not super functional,

you're not gonna get
that premium rent, right?

But it's LA.

Would you rather do,
uh, coin laundry,

or would you rather have
a little tiny washer and dryer
in your kitchenette?

Put the laundry
behind that door.

Then close this off.

So it's not in your bedroom,
it's in the hallway.

-Yeah.
-Oh.

[Drew] Even if we stole
36 inches from that side,

to make sure
we had enough room
for washer-dryer stacked,

you still have
a decent-sized closet.

The renter
just wants something

that is
pretty functional for them.

But if we can give them
a little more kitchen space
by moving the laundry

and it's not gonna
cost you a fortune,
then it could be worth it.

I want to go over
to the ADU.

Oh, you've been busy
since I saw you last.

Can you lay this out for us?

[Christina] This is, sort of,
the living room that we're
standing in right now.

And then
there is a small office.

The kitchen is over there.

The main bedroom suite
is going to be where
the addition is.

[Drew]Are you trying to make it
a three-bedroom with this?

-Is that your plan?
-Um...

It's really a two bedroom
and an office.

What's your reasoning
for wanting to close this off
in a small footprint?

We needed a two bedroom,

-and we weren't
gonna do the addition.
-[Drew] I see.

So, in the original plans,

-the office was gonna be
the second bedroom.
-Yeah.

And then,
when we did the addition
and the main bedroom,

we just never deleted this.

Where's your bedroom
for the main suite,
the primary?

-It's in the back.
-[Christina] Right there.

-[Drew] The door's
in the kitchen?
-[Christina] Yes.

-Yeah, yeah.
-[Drew] So you have
a door here, leaning outside,

and a door to the bedroom
in the kitchen?

-[Christina] Yeah.
-[Drew] That's weird.

When plans change,
you have to reassess
the whole thing...

-Yeah.
-...because there are
multiple things here now

that you never changed.

And now it's just weird
with the new design, right?

-[Kelly] Can I make
a suggestion?
-Yes.

You don't have
enough living space.

Keep it a two-bedroom.

Open this up,
get rid of the study.

-[Drew] Mm-hm.
-[Kelly] Make it more of
a dining or living space.

[Drew] I agree with Kelly.

What if we took the bathroom,
turned it 90 degrees.

Then it's almost like
it's created
a little hallway.

You could have access
into your bedroom

and you could have access
into the bathroom.

-[Christina] Yeah.
-[Kelly] I think
it's a much more

efficient use of space.

You have a professional
designer in here.

And within ten minutes,
we've added so much function
for whoever's gonna live here.

Rookie mistake.

We planned it
and then we changed it.

Drew was exactly right.

We didn't reassess
the entire project again.

[Arek] And hearing
Drew's recommendations,
they're spot on.

Absolutely
what we should do.

But that's gonna
get expensive.

I mean, that's a--
It's almost a complete redo.

[Drew] Come on out.

-[Arek] Okay.
-I see you already did
a little excavating.

Hey, Adam,
come join the fun.

Don't hate me
when they go over
the changes we have

for all the framing
that you did

because there's a whole lot
we have to change.

-[Jonathan] Hello.
-We've got to talk about
Christina and Arek.

[Jonathan] Oh, okay.

So, they had a floor plan
that they had done
before the addition.

And then
they have the addition.

But they just decided to try
and save some time and money,

and they went with the same
original floor plan.

Adam's already framed it up,
but it's terrible.

The other bedroom
is really small.

They never made the adjustment
to make it actually feel
more functional and livable.

[Jonathan] Have you
had them go and do
a bunch of changes--

Whoa.
No, no, no, no, no, no.

I told them
what needs to happen
to change the floor plan,

to make it actually work.

There's no way
they're gonna get a top rent
for the way this looks.

It is literally
tight and awkward,

when they have all this
additional square footage

that would make it feel
spacious and comfortable.

So, yes, I said they're going
to have to change some things.

[Jonathan] It was a little
tight in there before.

-Yeah.
-[Jonathan] So the addition
should have alleviated that.

But, obviously,
it would require
a different layout.

It's a red flag to me
that they would even make
a move like this,

where they're trying
to save time and money.

But in reality, it's gonna
cost them a lot more money

because they have a layout
that's terrible.

They should have
automatically thought,

"Well, what's the best
function and flow for this

with the new square footage
that we're adding?"

And then gone from there.

[Jonathan]I think you need to do
some breathing exercises

and take it down a notch.

It is a bit
of a two way street
if we're backing them

then you know,
they're still
running the show.

But I would say
part of this is on us, too,

because our subs
should have said,
"This doesn't feel right."

Instead of just
framing the whole thing
and moving it.

You know,
that's absolutely right.

So maybe have
a chat with the team
and make sure that

they're keeping
an eye on things for us.

Since we're not
there every day.

[Drew] it's tough for me
to not be

the one in control
of this process.

We are backing
these investors.

We're backing them
and letting them
take the reins.

It's just sometimes
I'm like... [straining]

All right, I just had to vent.

-Okay. Bye.
-[Jonathan] Talk to you later.

[upbeat music playing]

[Drew] Adam, let us know
that the crew has removed
the old framing

Arek and Christina had put in,
and we've reframed it
properly

at a hit of 29 grand
to their budget.

It was a bad a plan that costs
money to change,

but at least
we fixed the layout.

[Kelly] I'm really excited
to see this.

We were coming to check in
on the progress

of the changes that Drew made
when we were here last.

I hope it worked out.

[gasps] This is amazing.

[Christina] I love it!

I think it looks
so much better.

[Kelly]
This is a game changer.

Everything is different.

-Oh, we switched the door.
-Yep.

Yeah, so instead of the washer
being like in the middle
of your hallway,

-it's now a little bit
offset.
-Yeah. All right.

-Closet and the bathroom--
-Yeah, and the closet
has a vaulted ceiling.

[laughs] How cool is that?

[Kelly] From the original plan
to now,

it's a totally
different layout,
so much more efficient.

-Do you love it?
-Yes. Yes,
it's a big improvement.

When changed the layout
around, and it's felt like
for a minute

that we were
starting over again.
The extra time.

[Arek] Juggling,
full time family,
full time life, full time job.

But I love the new layout.

[Kelly] I think
we need to talk about floors.

Personally,
myself and the brothers,

we love luxury vinyl.

It's less expensive,
it'll last longer,

it'll be super durable,
and what you need is something

that's going to give you
a return on your investment

and do that
for a very long time.

I think I would rather a cheap
hardwood than a luxury vinyl.

There's just something
about wood
that I just like it.

-[Kelly] Okay.
-I'll keep an open mind.

-Just keep an open mind.
-Yeah.

[Adam] Today,
I need to see Christina.

We have some pretty bad news
to go over for the footing.

Things are gonna slow us down.

All right. So I have one
pretty big issue.

Follow me over here.

-[Christina] Oh, my God!
-Yeah.

It's a big giant hole.

[Adam] We passed inspections,
obviously on this.

-Yeah,
-We passed a foundation,
we were able to pour.

After we got all the sign offs
from the inspector
to be able to pour.

And the soils engineer
came later

and he wants us
to dig deeper footings

-underneath the footings
that we just poured.
-Deep footings.

You have one, two,
three of these bad boys.

This excavation,
this underpinning, the rebar,

the concrete
for these three new footings.

This is going
to be a $13-$14,000 change.

No...

$13 or $14,000 isn't something
you just have lying around.

It's just throwing it down
a hole in the ground.

[Adam] We have to do it.

Unfortunately, that's the only
choice we have,

'cause he's not gonna
sign off on us.

And if he doesn't sign off,
we don't get
final building inspection.

The soils engineer came
by the project
at a random time,

and he's like,
"Who let you sign off
and continue?"

And we were like...

"The inspector,
the structural engineer."

He's like,
"You know what?

I want you to dig
another couple of feet."

Kind of a little dagger
to like,

"Hey, here's
an unforeseen thing

that you have
to tell the client."

So it is really stressful.
It does slow us down.

We followed the plan.

This is a very rare occasion
that this happens.

No! [chuckles]

Okay. I guess

-we'll see if we can try
to save somewhere else.
-Yeah.

[Christina] Maybe
after the next earthquake.

I will be very grateful
for my additional
foundation costs.

But for now, it's irritating.

Oh, my gosh,
$13,000 down the hole.

[Jonathan] The Junior ADU
you started over a month ago.

Cristina and Arek
are managing it,

but both have busy careers
and three kids at home.

So when it comes
to working with trades

and lining up inspections,
they have to divide
and conquer.

-So it's been a while
since we've been here.
-Uh-huh.

-Not much has changed.
-I see.

[Christina] I'm basically
the contractor for the JADU

and taking care of it
as a third job.

My day job,
uh, the whole family stuff

and then I'm an unlicensed
contractor on the side.

-This is the sink?
That's the sink right here.
-That's the sink, the stove.

-Uh-huh.
-Hello?

[Christina] I'm dealing
with all the subcontractors.

It's actually not bad because
I've worked
with most of these guys

on multiple projects.

I think the only change
we have left in here

is the washer and dryer.

It's going to move
towards here.

So I am following
Kelly's advice.

We are moving
the washer and dryer.

It's painful, to have to have
that additional cost,

but I think it will be
worth it in the long run.

-[Jonathan] What's happened?
-[Adam] Hello, sir.

I heard about the...

-slow down with the...
foundation here.
-Foundation.

-Yeah.
-Unfortunate.

Yeah, we had to...

We had to excavate three,
three times over

to get underneath that footing
that we already poured, but...

He's not wrong, though.
Look at the like the mud
and the slide

and the settling like,
it needs to be

-[Adam] Oh, absolutely.
Absolutely.
-rock solid.

[Jonathan] And it just slows
everything down.

I'm keeping my eyes closed.

-I'm keeping my eyes--
-[Christina] Yeah.

-Oh, my gosh,
nothing's happened!
-It's just the same.

[Jonathan] This is really
depressing, unfortunately.

Nothing's been finished,

so I'm a little nervous.

So it does look
a little bit different.

It's kind of hard to tell,

but that washer
and dryer alcove
wasn't there before.

So now it's gonna be
a little tiny, bit bigger.

The unfortunate thing is,
you know, sometimes
you get your plumbing,

and your rough-in,
everything done,

-and then you've got to
change things last minute.
-[Christina] Yeah.

But we really
gotta get to the point
where we can close up walls.

Are you managing to manage?

I am managing to manage,

except like,
I just need permission
from this inspector

-so that I can start
closing things up.
-[Jonathan] Yeah.

We're otherwise
ready to go.

So you haven't been able
to even board inside

because you could keep it
exposed on this side,

so the inspector can still
see inside the walls.

But actually get ahead like,
'cause tile work takes

-a lot longer
than just drywall paint.
-Yeah.

Yes, but the tile
wasn't really...
set until this morning.

Oh, my gosh, you guys,
mistake number one,

you didn't make decisions
about what tile to go with.

Always pick your finishes
as soon as possible,

so you have those
materials ready to go.

Push anywhere you can
get an inch ahead,
keep inching ahead.

You two are in charge
of renovating the JADU

and you've got
to keep it moving

barring any delays
out of your control,

so you can get
that rental income
sooner than later.

So keep your chins up.

But most importantly,
get moving.

[Jonathan] Christina called
and told me
that they've passed

the JADU inspection
and can close up the walls.

That's good news because
we've got just a little
over two weeks till rental.

Drew's heading over
to make sure that's still
going to be possible.

[Christina] Just wait.
Let me grab my key.

-Hey.
-Morning.

-Oh, hey!
-Hey, how's it going?
Good to see you.

Were you coming out here
to greet me?

We were coming out
to get a sink.

-[Drew] I'll join you.
-[Christina] Yeah.

-[Drew] Oh, my gosh.
-[Arek] Just one more block.

[Drew] You can't park closer?

This is an example of why

I feel it might be good
to keep an extra parking spot

instead of putting in
a little outdoor
seating area for the JDU.

-[Arek] Yeah.
-[Christina] Yep.

[Drew] I don't know.
I think you should
keep parking.

[Christina] Okay.

[Drew] I think any tenant
who's losing their breaths

like this is gonna be like,
"No, I want the parking spot
off the street."

-Yeah. Is this another
find that you had?
-[Christina] Yes.

[Christina] I'm constantly
bargain hunting
for materials ahead of time.

It's almost become
an obsession of mine,

and I think the savings
are well worth it.

How much did you pay
for the sink?

-[Christina] A $100.
-Really?

Well done.

-I know you're tackling
that JDU yourselves.
-[Christina] Yeah.

Do you feel that
you're on task? On time?
On budget?

Uh, we're behind.

No, for the plumbing,
electrical, everything else,
you have--

-[Christina] Yeah,
that was already, um...
-Progression's coming, right?

The rough was already done.

-It is all just
the finishing work, so.
-Watch out.

And catch our breath.

-[Arek] The reveal.
-All right. The big reveal
of a $100 sink.

-Ah, that's
a nice looking sink.
-Right?

Shall we have a look
at what you're doing?

-[Christina] yeah.
-[Arek] Yep.

[Drew] So, are you putting
the cabins in yourselves,
or do you have someone coming?

[Christina] So we're gonna
try to put it in ourselves.

Is there an eating area?
Where do people eat?

-On the couch.
-That is super unappealing.

When somebody
comes to rent this,

if they see,
there's literally nowhere
for them to sit and eat,

even though
it's a small space,

-they're gonna be like,
"That sucks."
-[Christina] Yeah.

Yeah, because out here,

I was even just thinking like,
this is almost like
the perfect height.

Yeah, I mean, so,
like, if you were
to create a seat right here,

-you almost have
a built in bench.
-[both] Oh, yeah.

You could actually have
a small little
table right here.

I know it's not optimal,

but I wonder if it makes sense
just to have
a really small table

that you could have here
with a couple of chairs

on the outside
and then the bench here.

-[Christina] Yeah.
-[Arek] Yeah.

[Drew] And it's just a really
small lounging area here.

-[Arek] Yeah.
-[Christina] If we can do
a pivot to the mount,

-[Drew] Yeah.
-so that you can
turn it over to there.

You know, honestly,
people might like that.

They might like to watch
from the table.

Or they might like to watch
from a seating area.

-Yeah.
-So one other question.

Have you decided
the tile choice in here?

So there's gonna be
the marble,
the blue and then white.

And then blue, marble,

and then just white
on the middle parts.

I don't know if you need,
like, three different things.

I'm not saying no to a border.

I'm just meaning,
like this is a super
busy border.

So what's the plan
for the floor?

You want to do
that for the floor?

-Yeah.
-Yeah.

You guys, you're
breaking all the rules.

You have four different tiles
in a tiny bathroom.

And actually, that doesn't
even go well with...

Does that look like
it works together to you?

[Christina] It does to me.

What's your flooring
in the main area?

It's wood.
We already did the wood.

It is a huge no-no
to have a wood
up against a wood.

-Even though it's tile,
it looks like wood, right?
-Mm-hmm.

-Yeah.
-So I think that's gonna
look terrible in the end.

-Okay.
-So I know you're
trying to save money

by using materials
that you already bought.

You've made the mistake
of buying a bunch of things
you shouldn't have bought.

Two hardwoods next
to each other is a no-no.

Four tiles in one space is,
I don't know.

I would just do this large
scale tile on the floor

if you have
enough of the tile.

Do the floor
and up the wall with that.

And then whatever color
you choose for the wall
to complement this

is really gonna
make this feel high end.

It's actually gonna get you
a little bit more money
for the space.

So what is the plan
for the exterior?

What did you decide?

-[Christina] Parking.
-Absolutely worth it.

May I reference
when we hiked up the hill
to get your sink.

-That's right.
-Okay.

I will stay out of your hair
until the final
reveal of the space.

-Okay?
-Sounds great.

All right. I'll see you later.

[Drew] These guys
are way behind schedule

and seeing as the ADU
is on hold

because of the footing issue,
I'm gonna send Adam over

to help them hang
their kitchen cabinets.

If they do it on their own,
honestly, it'll be a disaster.

[upbeat music playing]

[Christina] I don't know
why we thought we could do
the cabinets ourselves.

There were
so many tricky things
with this mini kitchen

to make it the most efficient
that it possibly could be.

[upbeat music playing]

We are so close to being done
in the JADU.

If all goes perfectly
like we discovered,

uh, sometimes things
don't go perfectly.

The electrician was here,
putting in light fixtures.

I have the light
for this one.

Outlets, light switches,

I have tile going in,
the cabinets are all done,

the sink was installed.

So now it's our turn
to do the work.

Um, sweat equity.

Arek and I are building
the bench that Drew suggested,

and we're excited
because we're making it
a storage bench.

For the outside of the JADU,

we're putting board
and batten on it.

I think it's charming

and the insulation inside
will make the space quieter
for the renters,

since it's a little closer
to the road.

[Christina]The brothers donated
some key furniture items

from their warehouse
that look amazing.

And we've added our own stuff
that I've been buying
over the years.

We're styling ourselves,
and then we're gonna
present it to the bros.

There were times
when I didn't think
we would finish,

but we got,
we got there.

[Arek] Do you worry
that the work isn't going
to look up to snuff

-and it'll be a total
disappointment in there?
-Yes.

I think the layout's great.

-It looks light in here.
-Yeah. Yeah.

Makes the space
look a lot bigger.

As a family,
we're willing to sort of

sacrifice lifestyle
for the future benefits

and to not have
to worry so much
about money in the future.

But it's been exhausting.

[sighs in relief]

I think we've done all we can.

[upbeat music playing]

[Christina gasps]

The last time I was here,
this was a giant mud pit.

[Jonathan] I mean, it looks
gorgeous from the front.

What's the plan?
You want to show us around
like we're tenants?

-Yeah, prospective tenants.
-Yeah.

You know what?
Honestly, I think
it is a really smart idea.

Have the extra parking here
and here.

It's like one in a million
chance of getting a parking
spot on the streets.

-So it's nice
that you have parking.
-Yeah.

-Let's get inside.
-Yeah.

-[Christina] Okay.
-What's with the split door?

Oh! Look at this.

It looks so good.
The bench looks amazing.

-[Christina] We built that.
We're very, very proud of it.
-[Drew] Yeah!

[Jonathan] Wow, the bedroom,
it feels massive, too.

That having enough room
for a desk over here

is a huge upsell
for anybody renting this.

I just gotta ask you,
why that door?

-[Christina] I like it.
-How long ago
did you buy that door?

Years and years and years.

Okay, so it's another
one of the many things

that you bought before
you even knew
what was going on here.

To be totally honest, most
tenants are going to think
that door was annoying.

The rattle, the jiggle,
lets more air flow through.

Renters are usually looking
at a whole bunch
of different places.

-Yep.
-They'll remember that.

You want all of those
impressions to be good ones,

not something that's like,
"Oh, this is
a bit of problem."

We already know we're dealing
with things like

the trip hazard,
the raised kitchen.

Those aren't ideal.

But as far as space
is concerned,
this feels great.

-Yeah. Clean
-It feels comfortable,
cozy.

So the washer-dryer,

I thought would be
a little further tucked back,

so we could put
a door in there.

-So, those--
-Yeah, it can, uh,

it could probably
go back further.

But we thought
it was a selling feature.

Sort of front and center!

In-suite laundry is a selling
feature, seeing it...

-Nobody cares to see it.
-Yeah.

I mean,
it's not the end of the world.

-It's just nice
if you can tuck it away.
-[Christina] Yeah.

I see you did decide
to go for the tile

instead of the hardwood
all the way up here.

One thing to keep in mind
is usually continuity

in a small space especially,
is better.

Having the same material
flow through

would probably
look less chaotic.

[Jonathan] Okay.

Uh, so what's the deal?

I thought you said
all work was done.

-Well...
-Well...

So you still have
glass coming, right?

-[Arek] Yeah, we do.
-[Jonathan] Yeah.
That'll be a pretty quick fix.

Once that's done,
you have a very
classic aesthetic in here.

-Which is nice.
-[Drew] Which was not
the original plan.

You had the wood grain tile,
and I know you liked
the ornate detail,

-and I still see you have
some of that that you added.
-Yes, that's right.

So you went with my suggestion
and still changed it
a little bit.

-Yeah.
-But at least this,

it looks clean.

That's what renters want.

[Jonathan] In an ideal world,
I probably would have
kept it more tone on tone.

Really paying
into that true classic look.

But It's nice.

The only issue
when your tenant
is using this bathroom

day in and day out
is their only bathroom.

-Toothbrushes, flossers.
Pedestal sinks
-Storage.

are an absolute no
for every single bathroom
except the powder room.

This is the complete
worst thing
to have for a tenant in here.

Why wouldn't you have done
a vanity with drawers?

You have so much space.

I really thought
it was gonna feel so tiny.

But it looks like
I wasted space.

In the future, always think of
who your tenant's going to be,

how they're going
to use the space

and how can you minimize
the complaints
that you're going to get?

You will get a complaint
about storage,
lack of storage.

So figure out,
is it an overjohn,
is it a tower?

-Whatever it is,
problem solved.
-Yeah.

You just want to make sure
that everything functions.

-[Arek] Oh, my God.
-Oh, is this stiff?

-Oh, it's stiff.
There's a screw right there.
-[Arek] I think it's off.

-So it's hitting your roller.
-[Arek] Yeah.

And so And you're also
missing three screws here.

-Yeah.
-When you said to us
that everything's done,

-you mean to the naked eye?
-That's exactly right.

At the end of the day,
you always want
a place to look great,

and it stands up because
as soon as a tenant gets in

and starts to have that issue
and this issue

and another issue,
they're gonna hate it.

Well, here, look,

-I'll show you,
the floors look amazing.
-[Drew] Mm-hmm.

The space actually
feels really nice.

I like the connectivity.

What I actually really love

s that this room
feels massive.

Sometimes I would look
at a space like this,

and I would center
the bed in the room.

You shifted it over
to allow for more function.

So this was a,
this was a better idea.

-Thank you.
-Having the bedroom set up
as a bedroom slash office,

because somebody
as well during the day
they may close that work here

-while their partner
watches TV.
-[Christina and Arek] Yeah.

[Drew] I think that this space
has turned out so much better

than what
the original plan was.

-Having that table over there,
-[Christina] Yeah.

-adds a ton of function.
-[Christina] It was brilliant.

-[Drew] I love this.
-Storage.

-Yeah,
-I think a little...

So you have a little storage
in here.

Well, this is so much better
for whoever lives here.

[Jonathan] To be honest,
for a one bedroom,
this is more than enough.

You've got pantry storage,
you've got cabinet storage.

I can tell that you had
these cabinets before
you had the kitchen.

They're not
like a perfect fit.

It doesn't look like
it's customized in,

but It does look nice.

[Drew] The countertop
looks great.

I think the tile layer looks
great and all the woodwork
on the stairs looks awesome.

I think it ties it
nicely to the floors.

-And moving the laundry--
-[Christina] Was brilliant.

-Really makes the difference.
-[Christina] You guys, yeah.

I honestly, really like this.

You have everything you need.

You've made it look pretty,

it looks great,
it's functional.

-It has AC and heat.
-[Christina] But not really.

[Drew] This is gonna be
a gorgeous rental

with parking and everything
you can want inside,

you're gonna get great rent.

[Jonathan] How does it
feel to be here?

Because when
we first saw you guys,

you didn't know
if it was ever gonna happen?

There was
a really long tunnel before.

You guys helped make
the tunnel a little shorter,

-and now we're--
-A lot shorter.

The thing is,
you found a lot of,

what you bought
all the cabinets

that will be for all these
units for $1000 bucks
or something like that?

-Yeah.
-That's crazy
to get this many cabinets,

even though they're not
perfect in the space.

That's saving you
a lot of money.

Again, I love
how you're really good
at finding deals.

Just wait until
you know the design,

the plan, the property
before you buy those bargains.

-Yeah. Yeah.
-But there's so much
value you've added.

Everything does look great.

And as much as we've given you
a really hard time,

I'm actually really excited
to talk about the numbers.

-Yeah.
-All in,

if my numbers are right,
you're $87,000

-from what you spent before
and now.
-Yeah, that sounds right.

So I think you can get
$2,200 in here.

-It's so nice.
-[Christina] Okay.

It's clean,
there's an outdoor space
and there's parking.

A lot of the units along here,
it just says street parking.

$2,200 bucks a month is easy.
You can totally do that.

-Okay.
-That's $26,000 a year.

So as much as we were
making fun of all
your purchases of things,

you've actually saved
a ton of money,
which is really great.

And that's just this.

Just imagine what you can do
with a beautiful ADU
when that's done.

[Jonathan] Before you know it,
then all of a sudden

you have two rental units
while you're finishing
the main house still.

The best part is
you have a clear path forward.

You have revenue
that can start coming in
pretty soon.

And that's exciting.

It's great. I'm so excited.

So, you feel good?

Yeah, I feel great.

-You don't feel good.
-You look stunned and shocked.

I am stunned and shocked.

I wish we could say
we were out of the weeds.

But you still have another
project to get going,

but if we can have the same
rentable outcome as this here,

with that, you guys
are gonna be making bank.

We'll continue to work
on our action plan
to help you out

because we want
to see that completed
as soon as possible.

All right, we will duck out.

We will let you celebrate
because I think
you really deserve that.

And we'll keep in touch
about phase two.

-[Christina] Sounds good!
-All right. See ya!

Let's go have a drink.

All right, a couple
last little details
and they are off to the races.

[upbeat music playing]

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

They've bought a house
that's over 100 years old,

and that comes with a
100-year-old problems.

-[Dwight] Welcome. Dwight.
-Good to see you. Drew.

[woman] Husband and my son
have been
the primary contractors.

And we are not
strong in that field.

Everything is a problem.

-Structure,
electrical plumbing.
-This is awful.

-Nice to meet you. Drew.
-I'm john.

[Drew] John bought
this $1.35 million property
and he did it in cash.

[John] If this renovation
goes wrong,

I stand to lose everything
that I have.

We have poured
the new foundation.

[Arek] The goal now
is finishing out the ADU.

We have to talk all things
with Christina and Arek.

Remember that wood
grained porcelain tile

that we said
they shouldn't do in the JADU?

-[Jonathan] Yeah?
-They put that
in their main suite bathroom.

- What?
-They're cheapening out
the look of the space.