Rob Diaz

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Aaron Pfeffer

 

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Hi everyone. Welcome to 30 minutes with Spyglass lending. Today is an awesome day. I've got an amazing guest, a very good friend. I've known him a long time. He's an incredible developer. Rob Diaz of Rob Diaz design. Welcome to the show. Thank you for joining us. I'm going to give you a chance to say hello, and then I'm going to tout the hell out of you.

Go ahead. You

Rob Diaz: what's up Aaron good morning. Thank you for having me, man.

Aaron Pfeffer: Good morning to you. And I got to tell the viewers, anybody watching and anybody who's going to watch this in the future. You got to understand who this man is. He is responsible for a lot of what's going on in the San Fernando valley and Hollywood Hills.

I think you have set an incredibly high bar and you have a lot of developers benchmarking what you've done, or even tried to replicate what you do. But can't can't even come close. You are always setting new sales records, uh, what you have done in a lot of your properties. And I've walked through so many of them I'm always blown away and especially the last few you've really stepped it up a notch.

And we're going to talk a lot about that today, but let's just start with who you are and your, your story. I mean, where are you from and how did you even get into development and design of your properties?

Rob Diaz: Wow, where do I start, man? It's been a long road. Um, From LA born and raised. So I'm in my backyard and studio city went to high school out here and, um, spent a little bit of time in the city.

Um, I, uh, like a lot of people enjoy my twenties a little bit too much. And, uh, you know, it was sort of on the brink of, uh, turning 30 and was having one of those aha moments and, uh, A friend of mine was, uh, doing, uh, corporate real estate, uh, bank appraisals, you know, single family, residential and one to four unit.

And, um, give us a timeframe.

Aaron Pfeffer: What year

Rob Diaz: are we talking about? We're talking 2000 last part of 2005.

Aaron Pfeffer: Right. So like, we're going to set that. We're going to sit you're to here 2005, the height of the subprime market, the real estate mortgages. That's how we met. That's exactly how we met and it's on fire at that point, right?

Like prices going up by the minute, let alone the week or the month. Uh, and it's just like, it's a wonderful time to be in real estate and lending at that time, thinking like this is just going to go on forever.

Rob Diaz: Sure, sure. Yeah. I remember. I remember you. I remember Andrew. You know guys, like I can't ever forget, like guys like Otis

Aaron Pfeffer: Felder

Rob Diaz: times a day, like, you know, remember the days of, uh, you know, uh, mortgage brokers getting checks from appraisals and you know, us, you know, accommodating.

And so anyways, you know, I, I, I did that for awhile. I ended up, like, I ended up meeting up with a really good guy who owned a pretty. Pretty big appraisal company, you know, back then he had like 20 trainees, you know, they'd bring you along, take off your money and teach you a trade. And I thought that was a good trade.

So I, um, I got my real estate appraisal license. I looked at him and said, now what? And, uh, he took out a Thomas guide and put a red, uh, a red marker down like Wilshire Boulevard from. Basically trader Vic's all the way through K-Town okay. That there's, you know, there's a million brokerage shops on that street.

I suggest you go. And a feed some of these, uh, these war room, uh, mortgage veterans, you

Aaron Pfeffer: know, and it's before the days of AMC's. Right. So this is like the wild west. This is the wild west. Right? So, so, so what you're saying is you could walk into a brokerage shop, shake a hand and be like, Hey, hire me to be your appraisal.

You can't do that these days. Right? Oh, wait, the crash Dodd-Frank rules. Like you can't I mean, unless you're doing kind of a one-off deal or a private or hard money loan, can you just go get your own appraiser? Like if you're doing a conventional loan, the lenders have to use an AMC, but back then not the

Rob Diaz: case.

Right? Yeah. And I think the AMCs are there for good reason. Um, that's another story of that could be. Um, yeah, it will be there. There's

Aaron Pfeffer: going

Rob Diaz: to be more being made about that for sure. Yeah, for sure. For sure. So, yeah, so, you know, I mean, I met you that way. I met Andrew that way. I, you know, I, uh, you know, I think I said you guys on Monday and Fridays and there were bagels and lox and food and, um, so

Aaron Pfeffer: thanks to

Rob Diaz: you.

So I appreciate that. Yeah, man, I ended up doing pretty well. I ended up getting a lot of business. I ended up getting. Uh, I got through my trainee license and, um, you know, Rob Shiner, I'm sure you remember him. Oh yeah. He's the guy that had for himself, you know, the foundations of value, right. And, and where that's derived and, and, you know, I had some challenging appraisals and, and trained to measure and laser and understand that, you know, 18,000 square feet in Brentwood park and why that's more expensive.

You know, the ones selling above sunset, which I always like growing up on the west side, you know, as a kid thinking like, oh, well, all the huge, like really rich people live north of sunset. And like, actually the lots are smaller. So like really like, you know, getting a foundation of like Los Angeles real estate.

And, and then, um, so I did that for a while. Uh, I ended up hooking up with a Beverly Hills broker. I was doing an appraisal. And I pulled up smoking a cigarette, driving a sports car. I have tattoos, banging Beastie boys tribe called quest. And he's like, who in the hell is this guy? I'm like, sorry, man. I'm late for your appraisal.

Oh. And by the way, you're going to be 50 K short. It's not worth it. He's looking at before you walk the house. Right. Like you haven't even been inside. I'm like, I already know what it looks like. Yeah. And he's like, wow, I'm going to make. So he like was in the front yard. I was measuring the property, doing whatever, take a few photographs.

And he's like, I think you're in the wrong business. He said, I just saved the deal and um, worked it out. So his deal went through and he was like, I think you need to get into real estate. I think you need to be a salesman. I think you need to like switch careers. I was already kind of bored with appraisal and I saw the writing on the wall with the AMCs Cuomo in New York, the whole.

Fair fair lending situation happening. And so I was like, okay, so I want to go got a sales license. And he was like, yeah, you can hang it at my shop, get a little, a little boutique in Beverly Hills, across the street from the peninsula. And you know, so I kind of went from the appraisal mentor and Rob Shiner to this other gentlemen.

Um, and

Aaron Pfeffer: what year are

Rob Diaz: we in by the way, give us, give us now. We're like 2000. Too late 2008 or 2009.

Aaron Pfeffer: And this is right after the, you know, the, the market

Rob Diaz: show happened.

Aaron Pfeffer: Everything had come

Rob Diaz: down this, like, this is like maybe a little bit before. September of 08' which is when I think Lehmann crashed. I'm not

Aaron Pfeffer: mistaken.

That's right. It was, it was September of 08' and the big crash. It was on the wall for the real estate industry starting in 2007. Obviously the, I think people didn't recognize, but in the lending space, we really started see those subprime. Uh, starting to kind of shutter Evan to double entendre. S H U D D N S H U T T.

You know, both, both were happening in 2007, but by eight it was like over in March and April and then Lehman crashed in, in the end of 08' and everyone else in the world realized like, oh, like we're like the economics, the economy is falling off a cliff, not just the real estate market.

Rob Diaz: So yeah, exactly.

I had a friend who was running a really big, uh, That's a subprime shop in Newport beach. And he called me in 2007. Cause they used to do a lot of his appraisals down in Manhattan, in the south bay, Manhattan beach, you know, Redondo all that. And he was like, yeah, dude, I suggest you might need to find another career because we're belly up.

It's a wrap. And he literally, within like 14 days they were

Aaron Pfeffer: done, it was over. I mean, going from. Hundreds of thousands of dollars a month, millions of dollars a year. Billions, I mean, these guys were making just a fortune. If you owned a chop shop mortgage broker shop, and certainly the loan officers and a lot of them in their twenties who had no idea what they're doing, right.

They're making money at the time at the time. But like you, you know, like you said, you started as an appraiser, then all of a sudden, you know, you met this particular broker himself. Who's like, come join my shop. This is right after. Yeah. So you're now you're learning that, that side of the business. 09' or 10, and being a realtor and all that, which, which dumped out at some point into you, you know, taking on developing.

Yeah.

Rob Diaz: Basically what I had was I got my sales license and again, you get this license, which is not hard to get. I mean, let's face it getting a real estate sales license is like my neighbors fricking pop quiz today was maybe a little. Like she's in fifth grade

Aaron Pfeffer: at carpet, not the highest barrier, but I pass

Rob Diaz: both of these.

I pass both of these tests with flying colors. The first go round, like college did not work out that well for me, I dropped out. Um, but anyways, so like, you know, I got my license. I'm like, now what? I have a place to hang it. He's kind of bringing me along a little bit, but he's just like everybody else.

He's only gonna water. What grows. Right. So action steps are everything. So I decided to go through my Rolodex and what I had was I had about, I had about 10 to 12 wealthy guys that I had done appraisals for, and I was doing G par appraisals, not bank appraisals.

Aaron Pfeffer: Explain what that is for a second. What

Rob Diaz: is the purpose?

Appraisal report is basically like a short narrative with a couple of columns and a couple of columns, right? It's basically when a guy's paying all cash for a property and he wants to know what the after repaired value is going to be based on. Okay. The house was a thousand square feet. I'm going to make a 2000 square feet.

What's my what's, what's my low end. What's my median. And what's my, my best case scenario. So I would paint that picture for all these guys years.

Aaron Pfeffer: And I want to, I want to save, there are a few people who really have the capacity to do what you're talking about. Now. I kind of want to just bring this up for, if you don't mind for a moment interject, because I broke her a lot of hard money flip money.

I still do a lot of. And there are the appraisers. Again, they're not part of the AMC's, you hire them individually to do hard money, private money loans for the flippers, but they have the capacity to do what you're saying. An after repair value. Most appraisers do not have this. They can't see to, you know, two inches past their nose and what the cut and the square footage and the comps.

But you had the capacity to go out and do a generalized appraisal and show an after repair value. That's a huge, huge thing. You'll tell I'm sure. You'll talk about how this ledger,

Rob Diaz: you know, what you could do. Yeah. I mean, I mean, I basically, there was a few deals I had told you, there was two brothers in Westwood.

They came from a lot of money. Um, and they had kind of gotten really screwed when all of this stuff was happening on, on like a 300 unit condo building. You know, and condos are the first to come in the last to go. I mean, that's what happens in down markets, right? They're the first ones to take the hit and the last ones to come back.

So anyways, they got into single family space. I called them and said, Hey, listen, I have a relationship with, um, with Meridius capital out of Las Vegas. And they were giving me deals. Like I knew somebody pretty high up there and I was like, okay. So if we buy five of these things, we're going to get a discount.

They're giving properties away, you

Aaron Pfeffer: know, single family homes, right.

Rob Diaz: They're literally they're foreclosed on homes, their REO's, which are bank owned properties. Right. If you take five down at the same time, you're paying like 30

Aaron Pfeffer: cents on the dollar. And back then, that was legit. You were, you could really pay 30 cents and the doc again, REO standing for real estate owned, meaning the bank now owned the real estate arm, REO, the bank owns the correct, and they just want it off their ledger.

They got to get it off the books because they're not in the business of owning real

Rob Diaz: estate. Correct. So I ended up, they were interested. I got him some really good deals. I think the first five packet deals, there were three in Woodland Hills. There was one in Encino and one in Tarzana. So they were all within like, you know, a five mile radius of one another.

These two brothers bottom. I got the, I got commission. I actually got them under contract. This is hilarious. I got them under contract under my name. I wholesaled. The deal. I think I made 30 grand on all five. Right? That's how far 30 grand went, you know, like I was basically doing like 6,500 bucks a pop.

They were like, Sweet. I mean, there were like, you know, 2 30, 2 70 a door. I mean, just ridiculous prices. Anyways, their motto was lipstick. Get in, get out fast and you

Aaron Pfeffer: could get away with that back then. Like you're talking to at the time that you, it was just paint and carpet or whatever it was, get it back on the market, you know, exactly

Rob Diaz: and get some money then.

Design was, you know, the market was scared, right. So they were trying to get out. With list prices of about 4 44 50, right. To keep that conforming loan amount under four 17 in LA county, right? The non jumbo like super easy,

Aaron Pfeffer: which is now 650,000 is not even the high balance conforming that's conforming loan amount.

So it just wasn't that long ago that it was four 17, it was

Rob Diaz: four 17. Wanted an exit price where somebody could put down 10. Yep. And still be under four 17. So they have this model and I would stop by the houses because they were giving me the listings on the back full boat, two and a half percent commission as, as, as an agent.

And, you know, I'd stopped by the houses and see how they're going. And. I've always had a thing for design. I've always had a thing for architecture. My mother raised me with arts and, you know, flying to San Francisco to see an opera. You know, I'm a little kid and I'm like, why are they speaking in German?

And like, you know, all this stuff, but like taking into old churches and, and, you know, I've been to Spain and seeing Gowdy and like, so I always had this thing for architecture and buildings and structures. And, um, these guys were putting out. Most awful garb. I mean, it's just, just no thought no passion, no anything.

It was just dollars and cents. And you know, for some builders, that's fine. So I was selling them and dude, they were selling, right? Like in a matter of a week I was watching these guys make like, you know, 80, a door,

Aaron Pfeffer: 80 grand, a door, five houses in wholesale them. The fact you've got the paper under contract yourself, you wholesale for a small fee, and then you got the list.

On the backend after they finished the project.

Rob Diaz: Exactly. So I did, like, I worked with them for about a year and a half, so we went through like 15 transactions. Like 15, 15 doors, by the way. We're

Aaron Pfeffer: all of those from the set from Meredith, what was it called? Meredith capital in Las Vegas or radius capital.

Rob Diaz: They were all in. Um, I got them, I got them. I got maybe 10 of them through the, through those. And then just my own appraisal. I found some on the market. Right. And which again,

Aaron Pfeffer: you can do back then you can get MLS inventory. That was like, you could just buy them. I mean, today, forget it. Right? Like if you're buying MLS inventory, you're gonna have 30 overpriced offers.

Good luck being an investor, finding something that's on the market already. I heard it

Rob Diaz: itself between them now. So back then you had a huge supply. Yeah. And nobody had any money right now. You have no supply. And everybody seems to have a gazillion dollars.

Aaron Pfeffer: Everybody wants and they will all want to give you their money.

Right. They lending it to you so you can go to the

Rob Diaz: yeah. Right, exactly. So I looked at that, I ended up doing, um, I kept thinking to myself, why am I maybe I think I just need to, I think I, I think I need to do this myself. The only problem was like, There's fear. There's, you know, it's a lot of money. Um, you lent on.

So then Tyler comes into the picture. One of my, one of my friends. That I met on the amazing race,

Aaron Pfeffer: right? Yup. I ended up thinking about that for a very quick second. So they, so they know you and Tyler were on the amazing race together on CBS. Yeah. Yeah.

Rob Diaz: I was, when I did it with the next girlfriend, he did it with a mutual friend.

Um, he ended up winning the race, and this is like 2007. So this was a little bit, you know, before the, uh, before I got my real estate sales license, but he was watching, we became close friends. And he was like, he hated his job. He was, um, you know, I think he was modeling pretty successfully, but just, you know, he'd been there, done that and obviously had a million bucks from the amazing race.

So he called me one day and he's like, let's go do a flip. And I was like less. Right. Um, I need to learn how to build a house. Yeah, I'm willing to learn. Um, so I found a deal. You got us the hard money. Remember, remember that, that you called me in the bottom of the ninth inning and said the lender won't do the deal, but I have somebody else.

Can you be at the property? Yep. And some like 23 year old kid shows up and he's like, yeah, I'll do the deal.

Aaron Pfeffer: It there. I mean, you and I were both kind of in the same boat back in the day, like just trying to get my business off the, off the ground of being a hard money, broker lender, you know, your, your first deal where you're going to be the flipper.

And I appreciate you taking that ride with me. And both of us are like taking on this, this big responsibility and figure it out together. And yeah, that's right. My lender backed out that night and the next day I had somebody else slip in and do the deal because I had all the, I had the file together, the paperwork, the end of they just to put their name.

Rob Diaz: Yeah, it was amazing. Um, I think it was, I'll never forget it. It was a 3 35 purchase price. Yeah. You got the guy to lend 300. Yeah. And then we covered the a hundred and I think it was a hundred thousand dollar rental cost. This is where Tyler and I demoed the house ourselves. Okay. This is just a fix and flip.

Right. But we want, we needed new kitchens and bathrooms and fireplaces and you know, it was ugly, uh, new windows, new doors. But we really needed to save some money and I needed to learn. And so 110 degrees, we're in the kitchen, we're demoing the house. It takes us seven days straight.

Aaron Pfeffer: There's about 2009, right?

We're like somewhere around 2009, 10

Rob Diaz: around 2009. Yeah. Yeah. 2000, like the beginning of 2009. So then, you know, we do that. We get through it. I learned a lot, uh, Uh, I, I reached out to, uh, a general contractor that I knew older guy been around the block, very successful. And he's like, look, I'll do your kitchen.

I'll get my guys out there. They'll do your kitchen. They'll do your decks till whatever. I don't have a lot of work for them. Right. It's 2009. You could get a two by four for a dollar. I mean, that's how bad housing was. So I ended up, he brought in these five guys, big dudes, like union framers, like guys they're middle-aged men.

They, they just look the part. And I was like, okay, like they did a great job. And then at the end of the job, you know, they got their check and they were like, look, we don't have any work. Do you have anything else? And I'm like, yeah, I'll go get another. Yeah, so. We kept them. We built that relationship. We got a really good electrician along the way.

We just kind of picked up all of these things. We had tile guys that were so bad that we were like, okay, never see you again. Goodbye. Like made a lot of mistakes. I painted my grandfather was a painter owned, a huge painting company, residential. So I actually painted. The house,

Aaron Pfeffer: right? You put on the mask, you're getting the gun out.

The brushes. It

Rob Diaz: was awful, actually. Like my over-spray was terrible. We had to have some other guy come in and like clean up my mess ups. And um, but anyways, you know, we went, but

Aaron Pfeffer: at the same time, I mean, you're learning the design aspect of all this, right? Like you're recognizing like all brand

Rob Diaz: new, right.

I'm learning. Back then, like, and for a long time cost was the, of the utmost importance. Like I would be terrified, literally terrified to spend like a thousand dollars on any one, like fixture. Right, right, right. Faucet, light, whatever. We just didn't have

Aaron Pfeffer: the budget for it. But I bet that that. Uh, you know, you being so terrified, just being so scared of that.

I bet just gave that thrill though, right? Like that rush of like, this is the

Rob Diaz: business. Every time they sold and every time we were successful and think, knock on wood to this date, we have not lost a dollar in real estate.

Aaron Pfeffer: Think about that. Think about that. I mean, you, 12 years in this game doing this.

Yeah.

Rob Diaz: Long time, lots of deals. Lot of flips, new construction. Like we've always been successful. Very grateful for.

Aaron Pfeffer: And let's, let's just paint the picture. One more time. 3 35 back in the day, 2009, 2010, you paid 330, $5,000 for a house. And if I recall it was, I want to say it was cling or one of the, was it, or

Rob Diaz: that was the first bigger one.

Aaron Pfeffer: Oh, that was the first big oh, right. That's right. So, but, but I think it was a couple of, a couple of doors down off of a main drag of like van Nuys Boulevard. If I recall that

Rob Diaz: was the first flip. That's the one we're talking about.

Aaron Pfeffer: That's what I'm saying that. Right. So, and I'm forgive me. Cause I'm thinking of.

Straight afterwards, but wherever we were at this first house was a couple of hours down off of main drag. Yup. You're doing the work yourself 3 35, a hundred and something grand in work. You're trying to sell it for what, what do you remember? What the price was?

Rob Diaz: 5 45 it's sold for in a few weeks. It sold

Aaron Pfeffer: pretty quick.

And you got to list it ourself because you're the agent at the time having that commission there

Rob Diaz: gave me a couple of, uh, A couple of dollars along the way. Is that there at six in the morning, didn't leave till six at night, but I wasn't there about the money. Right. Then I was there to like learn the process, but I really, really liked the process.

Yep. I realized like, I need to get better at this and. Okay. I'm going to make a few bucks on the commission. He's going to pay me a few bucks along the way. Not he made money, he was willing to do another one and another one and another one and another one. And then, you know, people keep people on your periphery, right?

Friends, the friends you're going to civil war, super bowl party. Oh, what have you been up to? Oh, well I'm working on it. It's just, it happens. And so I'm

Aaron Pfeffer: snowballing for it. And, and, and in the essence of time, I only, I just want to jump cut, kind of like, let's go five years later, right? So we're talking about 2013, 2014.

Right now, Oreos are still in play. Short sales are still in play, but it started there. The inventory is dwindling, as we know. Right. So it's getting a little, it's getting a little bit harder. There's a lot more investors in the game. There's a lot more money by this point, funding the investors. Uh, whatever it may be, but you know, where are you, where are you intolerant at this point where you, like, how many flips have you done by call it 2014, 2015.

Um, and you know, how, what are the purchase prices and sale prices and, and construction costs at that point?

Rob Diaz: Um, so 2009, 2013, 2013 was the first big one that was the three property, like 4,800 square feet production. Um, you know, the market was still a little bit depressed. Like we picked that up for seven 50 that's 13,000 Latin studios.

Can you

Aaron Pfeffer: imagine what that costs just today? Like what is 2 million? It's 2 million for the lot. Just a lot. I mean, that's, that's not even seven or eight years later. Maybe about eight years later at this point. I mean, you're talking about minimum 2 million dude. Yeah, seven 50. And you probably thought you got, you probably thought you were on my pain at that point.

And now it's time.

Rob Diaz: So, yeah. So when we bought that, I had to convince mark who came along friend of mine with, with some money. I kind of put all these people together. Mark Tyler, Ty's wife, Anna Stasia, as has it actually has an architectural degree from NYU. She back to LA she would throw her, her like a little bit here, a little bit there, no do this.

I looked at her and realized like she has a lot of talent. I needed to look at her. Okay, let me, let me, let me, let me surround myself with people that are a little bit more talented, like sh you know. Yeah. Right. So, and I've always been good at that. And the

Aaron Pfeffer: best of us surround ourself with people better and smarter than us

Rob Diaz: actually.

Right. Like I I've always been the long guy taking the, the entire course. Right. Right. And so everything has just been a building block from one thing to the next, to the next to the next. I don't do deals with people. I don't know. I don't mix money with people that are, I don't know, these days there's lawyers involved because I don't have to time to try to look at a template contracts with some guy giving me a million bucks as an investment.

I don't do it that

Aaron Pfeffer: somebody started. And let's, let's talk about that for a second. I mean, there's, there are guys now who want to throw that type of money to a million dollars. And, and, and here let's do a quick jump again and again, and again, forgive me. Cause I could talk to you for hours. I'd love to sit here and do this in the essence of time.

Like let's just jump a couple of years later now, even bigger, better at what you're doing. I mean, you now essentially have Rob D as designed your you're not only just. Flips yourself, but your con, you know, you've got some consultation jobs as well, right? With your design. People are coming to you because of what you're able to do.

Flooring windows, painting, just the idea of walking into a house and saying, and just knowing how to move it around, manipulate it, change it, our floor plan or add footage or whatever, right? This is, this is where you.

Rob Diaz: Yeah. Yeah. I mean, I, I th that's the thing about the business now is that it's one-stop shop have engineers.

I have a guy that takes, so when we start a house, I said at a drafting table, it's all conceptual, right. It's scaled, but it's conceptual. I like drawing with a pencil. I have somebody that knows how to do CAD, but CAD to me has no life. Right. Right. And it needs to start with pen and paper, pencil and paper, and.

Um, I mean, now everything's changed. It's just, it's just the evolution of everything. Like to do the same thing twice. So I'd like to have my home's like, yeah, I have a general aesthetic that I like. It's

Aaron Pfeffer: a brand for Rob D as a Rob Diaz, as design, but at the same time, something different each time. Right?

Correct.

Rob Diaz: I, along the. You know, we can talk about houses like big Laurel terrorists and, and, and, and Mary Ellen, weren't just under contract, uh, under construction. Now in mountain view place, the little mountain you place was my first 1, 2 0 6, 1 mountain view place was I did it by myself and it was the first time that I actually looked at a job and said, this location is so good.

This house, forget my budget. I don't care. Right. I had been into like, you know, I had gone to New York and looked at apparatus lighting and, you know, white Oak, you know, uh, uh, ceilings and English kitchens and glass subs. And I literally bought everything that I wanted for that house. That house to me was my it's still my favorite house.

It's only 2000 square feet. Leveraged myself to the guilt. Maybe had $10 left in my bank account. By the time I'm done with it and painted in two weeks for record. So for like $1,380

Aaron Pfeffer: a foot. But I think, you know, and it's important to, to, to mention this again here. I mean, there are obviously a lot of developers out there on the front end.

I think what makes you so, so unique is because there are a lot of so many developers who were like, Hey, this costs every other developer or somebody who's never done this before a couple hundred, a square foot to do it. I'll do it for 158, a square foot. So they're kind of making their money, keeping everything suppressed on.

But it's a lot of the same conveyor belts, that type stuff you're talking about. You know, you've seen these houses, especially throughout the valley or even the Hills come off the back of the Cape Cod forever. And now it's a little bit different look or going back to Mediterranean, whatever, but it's the same stuff over and over again, you know, but you have really made your money on the back end of this stuff where it's like, anybody looks at this.

And I was like, oh my backend, after repair value on this is going to be whatever. But you're shattering these records every time because of what you do in your design. And what you're putting into these houses and exactly what you just mentioned. You're willing to go to New York and go get a certain type of lighting or a certain type of faucet or the floor in different.

Rob Diaz: So I, I think that if I were to, cause I, before I did this small mountain view place house that I before mentioned, like I was burnt out. Yeah. I was, I was literally like, I had done a bunch of houses. Right. And I started to get, uh, Just burnt out at just looking at the economics of it all. And I kind of, this mountain view place project was something where I was, I really, I really felt how important legacy is right.

And how important it is for me as, just as a, just as a person to enjoy what I'm doing, to be passionate about it ever evolving and learning. Right. And so I did that and it was successful and it had to be successful because I, I S I spent a lot of money doing that, but it shows, so I looked at maybe I didn't make as much money as the guy down the street.

I probably didn't. He probably made more with that, with that conveyor belt construction model. I know we did it. It comes out fast. You have less holding costs because you're quicker. The material's cheap. Anyways, long story short, I knew that if I kept doing it, it was just a little bit of brand equity deposits along the way.

And I needed to build my showroom so to speak right in the open marketplace. That's let it speak for itself. Just put my head down. Continue to sit around myself with people that, that, that I trust and admire and, and, and, and just do my job. And, you know, I think I've been through, wow. I think maybe it's, it's only been maybe 12, 10 or 12 projects that are like larger in scale.

That I've had that model on where it's just like, let's just build great homes. Like it's going to cost what it's going to cost. Right. Um, but I'm continuing to learn too. Yeah. I've learned that, you know, we're in escrow right now on the Alex Tribeca state, which is an acre and a half flat in Franklin canyon.

It's a huge purchase price for us. It's like six and a half mil. And then having to build. Yeah. Yeah. So studio city is not seen 25 million. Right. We're going to fucking go for it. Right. And it's only now after, I don't know what it's 20, 22. I mean, after 14 years, it's like, okay, we have some money backers.

Now we have guys that have deep pockets and they're like, you know what, because I've made these guys a lot of money over the years. Yeah. They won't take that ride with you. Exactly. Always said, you're going to get what you're going to get. And lift up to that and that I made blessed that's okay. You make your bed right.

And so

Aaron Pfeffer: six and a half million purchase price, 7 million build on, on, think about that on this side of the hill. I mean, we're there now, you know where you're going to be selling a single family property in the twenties? Yeah. '

Rob Diaz: cause, you know, it's 300 feet wide by whatever, you know, 300 deep, 70,000 lot or something it's gonna be.

Aaron Pfeffer: It's gonna be amazing. Yeah. Well, listen, I don't, I mean, again, we can talk forever. I would love to go though. We, we we've come up against a time. This is awesome. I truly, truly appreciate you joining us and talking about this. Rob Diaz, design.com. Again, that's Rob Diaz, designed.com. You gotta go see. Entire history of what he's done and what's on there now.

And the type of work that he does, it really is incredible. And I, and I hope this really came through today as, as what your capabilities are again on the back end. I mean, you know, just one of the absolute best, if not the best developer I've ever seen on the sale. End of it. You know, you see a lot of guys who were great buying.

You know, just crushing heads and oh, I bought it for this or they're so excited about it, but yeah, but the product you put out just looks like everybody else's yours looks like nothing. Anybody has ever seen. Every time I walk into one of houses, I'm like, this is better. How do you top it? You always do.

And now you have Alex drawbacks, state under contract. You're going to close on that. You're going to build a $7 million house on that. I cannot wait man to see what that looks like on the backend. That's that's exceptional. Uh, and I'm sure after that one, you know, sky just keeps me in the limit. You could say like, that's it, that's it that's the Zenith, but now I'm sure you'll, you'll find a way to top it.

So again, thank you so much for joining us today. This is incredible. I don't know if you've got any parting words you want to share yourself?

Rob Diaz: No, I think anybody out there trying to do it, you can do it, you know, scannable. It's like you

Aaron Pfeffer: along the way, right? That's right. That's all right. That's all we gotta do.

All right. We'll catch up again. Thanks for coming on

Rob Diaz: bye.

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