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Show Summary
In this episode of the Real Estate Pros Podcast, host Michelle Kesil interviews James Solis, a real estate agent and fix-and-flip investor based in Los Angeles. James shares his journey of working in the family real estate business, buying and flipping properties, and systemizing operations to make his business efficient. He discusses the process of identifying, renovating, and selling homes, the importance of design and customer experience, managing contractors, and overcoming challenges like competition and limited inventory. James also shares insights on financing through hard money, scaling acquisitions, systemization, and working with family in a business setting.
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Investor Fuel Show Transcript:
James (00:00)
The properties we’re doing are an average of like a million and a half to two mils. it’s the holding costs. We use hard money. it’s a lot, you know? So it’s like kind of empathizing with people. There’s always a way to figure something out, to get something done, or even just in a day-to-day life. Like it’s Tommy just…There’s infinite possibilities of how to respond to something.
Michelle Kesil (01:54)
Hey, everybody. Welcome to the Real Estate Pros podcast. I’m your host, Michelle Kesil, and today I’m joined by someone I’m looking forward to chatting with, James Solis, who is a real estate agent and fix and flip investor. So excited to have you here today, James.James (02:10)
Thank you, Michelle. Excited to be here.Michelle Kesil (02:12)
Awesome. So let’s dive in. For those who don’t know you and your world yet, can you share what your main focus is?James (02:20)
Our main focus is fix and flip, buying fixers here in the LA area and systemizing our companies to work efficiently and not needing so much of our time.Michelle Kesil (02:36)
Awesome. And so do you only operate in LA?James (02:38)
Yeah. Well, surrounding LA and surrounding areas, like maybe we’ll go to OC or something like that, but primarily, yes.Michelle Kesil (02:46)
Cool. And so how did you get started in this business?James (02:50)
I got started when I was about 18 or 19. My family had been in the business for a very long time. I said I would never do it. I hated it growing up. Always made us late to soccer games and things like that because we had to go look at properties or whatever. Started as a real estate agent. Is that what was your question? When I started or how I got started. Oh yeah. So.I got started because of family business.
Michelle Kesil (03:15)
Yeah.Okay, great. And so what are some of the keys that you feel make your business successful and run smoothly?
James (03:25)
The keys are, have a really good eye for what to buy and what not to buy. And we’re patient and we’re very good at giving consumers, giving buyers, new homeowners, what they want in terms of design, in terms of space, bedrooms, the overall feel as well as I think we do probably the best customer service.We did something and something’s wrong where they’re immediately fixing it. No questions asked. Uh, so yeah, that’s what we do.
Michelle Kesil (04:45)
Awesome. how do your fix and flips project looks like? Can you walk us through that process?James (04:55)
Yeah. So primarily a lot of our flips come through referrals, through agents or people in the industry. also just to MLS. So, we get, you know, lead comes in, we analyze it, we visit it, we make sure it has what it takes is the biggest thing is, is making sure that, that it had, it’s like the perfect, home is what we call it, you know, hasits own driveway, a backyard. It’s not anything busy around it. Nothing, nothing that would make you feel weird at all. So, you know, making sure that we can make into a house where you walk in, you feel great when you walk in and you feel great when you walk out and the whole experience is exceptional. so if it has that, we buy it, our designer designs it and we build it and then we list it and we
Michelle Kesil (05:44)
Yeah, and so do you hire contractors or what does the operations look like?James (05:49)
Yeah, that’s a great question. So we’ve tried, we’ve had a, we’ve had a very mix, you know, before back in the day, we used to just do it, you know, with just get it done, you know, with finding some guys and we get it done. then we tried using contractors and it’s to be honest with you, you know, they never cared. It seems likeThere’s a few things. it’s like one thing if you get a guy for they say like the most the cheapest guys end up being the most expensive, you know, so you try to get an affordable guy and it costs you in the long run, you know, clients are happy. This is wrong. This wrong have that on one right now actually. And then, you know, they don’t care in general about the timelines, all that. If you want a really good contractor, you’re not going to have any profit margin generally because the guys that are communicative do good work of first time they
charge, know, because it rightfully so as well because there’s so many shitty contractors. So I would say now our new thing is we have our, licensed our company with the RME and we ideally look for licensed subs, but if not, it’s fine. We can put them on our workers comp. And so we do the contracting ourselves now as of recent.
Michelle Kesil (06:58)
Awesome. And what are some of the challenges that you experience doing fix and flip or investing in general?James (07:05)
Yeah, that’s a great question. think the biggest challenges aregetting overwhelmed and not… the flip, there’s so many things. In a house, there’s just so much, right? There’s the plumbing, there’s all the MEPs, and then you have the molding, what color is the molding gonna be versus the wall versus the door.
James (07:30)
right now. think there’s not a lot of good inventory and there’s a lot of competition, but it’s not really that much of an obstacle for us. usually win anyways. would say.Just yeah, just like us getting in our own way, know, just not prioritizing growth and systems and just having to put in so much time and work. And when you’re acting that way, a lot of things slip through the cracks and profit suffers. So that would be our biggest obstacle.
Michelle Kesil
Yeah, absolutely. And what are some lessons that you’ve learned as you’ve been on this journey?James
I think there’s always a way to handle something. think there’s so many options and so many circumstances, even when it seems like a dead end or it seems logically not possible or logically doesn’t make sense. know, there’s even with the city, you know, sometimes, no, we’re not going to assist you in queue. Like you got to wait, but we have a closing coming up and it’s, you know,connecting with the city, someone in the city and telling them the real story about how much it costs you every month to hold a property. The properties we’re doing are an average of like a million and a half to two mils. it’s the holding costs. We use hard money. it’s a lot, you know? So it’s like kind of empathizing with people. There’s always a way to figure something out, to get something done, or even just in a day-to-day life. Like it’s Tommy just…
There’s infinite possibilities of how to respond to something.
Michelle Kesil
Yeah, absolutely. And you mentioned hard money. Is that like the financing method you use?James
Yeah, we primarily, mean, yeah, hard money so that we can do just scale, know, do more.Michelle Kesil
Yeah, and so what are you most focused on solving and scaling to next?James
Most focus on scaling ⁓ our acquisition. like buying more deals. So systemizing our, way we have our, our relationships with realtors and referrals and, know, cultivating those relationships, getting new ones. And then also start with some B2C. So we’re going to probably start some TV, pay per click, different forms of advertisement. And then.systemizing that process. ⁓ our biggest focus is doing, you know, four to five flips a month and then wholesaling the rest.
Michelle Kesil
Awesome. And what advice would you give to someone looking to get started?James
I would just say be open. know, like kind of how I mentioned before, there’s always different ways of skinning cat or there’s a million ways to respond or do things. It’s same exact thing for real estate. Things are always changing, always growing. There’s always a new loophole or a new trend or something new going on that everybody is doing one way and they’re blind to see the other way. And, know, when you keep your eyes open, your heart open and you have that willingness to be.open, think a lot of possibilities happen, especially in real estate, because there’s just infinite. You can do an ADU, you could split the law, you could add square footed, you could demo and build completely new, or you can, I think a lot of things people think of real estate, like a real estate agent or a real estate investor, like very binary, you could be both, you know, like some of the things we do when we have investors sometimes is we’ll give them a profit split, which is higher than most any other real estate in REI company would offer.
you they like to offer maybe 8-10 % or even if they offer profit split it’s lower but because we have our construction license and because we have our real estate.
James
there’s just be open and be open to learn and be open to take chances and opportunities. And also obviously do your homework. Don’t get into anything that you don’t fully feel comfortable with for sure.Michelle Kesil
Yeah, definitely. And what has been like the biggest learning curve for you?James (12:52)
personally, probably, the way I handle my emotions, especially working with family, things can be, things can be very, ⁓ emotional and not logical. so having to learn to just let go more and,not let anything spike my cortisol level.
Michelle Kesil
Yeah, absolutely. So how does it work with the family business? Are you all working on deals together?James
So we kind of have, yeah, so we have like positions, I would say we all work on them together because it all comes together. But generally like one of my brothers, he’s more of the analysis. Another one of my brothers handles more of the project management and construction. And then I do a little bit more of like the disposition sales and acquisitions too, because I have the most experience for my brothers. So like just kind of, this is a good deal. And I also help with analysis a little.and the sales primarily, but more so like going out and making the deals happen, making the connections. And then my mom is more in charge of all the financing and kind of like also like a brand ambassador for the company and bringing in deals through relationships, bringing in good rates from relationship. She’s a big relationship person and a mover and shaker, but she’s the boss. And then we kind of help her or where.
her minions, essentially.
Michelle Kesil
Okay, awesome. That’s a fun way to run a business. ⁓James
youThanks, Michelle.
Michelle Kesil
Is there anythingyou are looking forward to as far as goals that you have?
James
yeah, like I’ve mentioned a few times, the systemization process of it, really bringing it from mom and pop to a more systemized company with standard operating procedures and tracking and making decisions based on data and not just how you feel.Michelle Kesil
Yeah, definitely. I think that’s an important aspect.James
Yeah.Michelle Kesil
And what do those systems look like for you?James
Yeah. the really, I mean, I’m not going to go through all everything obviously, but, just the purchase systems are pretty good. think the construction we have good, a good SOP now, but I think connecting everything together, documenting everything, having each person assigned. We have a few employees as well and just having everybody.clearly with assigned roles and in a place where everyone can see the procedures and enforcing them, you know. And then for the sales too, you know, making sure the open houses are perfect, everything smells good. And, you know, we have toilet paper and all those little things that you forget that, you know.
last minute you’re running around to get water bottles for people and all that. Like having in a, in a probably like in our own app that we’re going to probably build where, where we can go in there and see all the files. just so it’s easy for everyone to access. Cause from the conference, the are the investor fuel conference we just went to, we just learned like a really cool way to, we can create applications and like with just a few words, know.
Michelle Kesil
Yeah, amazing. That’s exciting.Well, before we wrap up here, if someone wants to reach out, connect, learn more, where can people find you and connect with you?
James
Yeah, so people can find us at probably just like on Instagram, Nela Homes, N-E-L-A Homes. That’s our Instagram where you can see us and message us and go to our websites and it’s all there and see some of our projects. We just finished a 16 unit apartment building in Westwood and we have some other developments.And all of our flips are on there too, which they’re really pretty. So if you need some inspiration for your homes, it’s a good place.
Michelle Kesil
Perfect. Appreciate your time and your story. Thank you for being here.James
Thank you, Michelle, for your time. been a pleasure.Michelle Kesil
And for those tuning in, if you got value, make sure you’ve subscribed. We’ve got more conversations with operators like James who are building real businesses and we’ll see you on the next episode.
