How an Engineer Uses Real Estate Investing to Build Massive Equity in California

Dolf (00:00)

Other people they figure out that they anticipate the problems ahead of time. So they put all these problems So they get ready and then they might get the problems they might not get the problems and they waste so much energy and time on trying to solve ⁓ Phantom problems. So for me, I am the opposite I go in and then

Figure out the problems like cross the bridges when I get them. I don’t want to bother myself with Problems ahead of time because you need to have the energy and the passion

Dylan Silver (02:10)

Hey folks, welcome back to the show. Today’s guest, Dolf Al Emara is a realtor with Keller Williams in Southern California. You can check out his channel on YouTube, Dolf.AlEmara.Realtor. Dolf, welcome to the show.

Dolf (02:27)

Thank you so much for hosting me. I would love to speak about both my realtor experience and also investing experience.

Dylan Silver (02:36)

That’s right. I left that out. We were talking before the show here about a small multifamily deal that you had purchased. And I always like talking with investors who are also realtors because it’s a mesh of two different worlds, right? Investor agents are ⁓ very useful, I would say, because they’re able to see things from both sides. Have you always been an investor and a realtor or did one come from before the other?

Dolf (03:05)

⁓ Yes, so the investor came before the other my first house I bought in 2011

I rehabbed it and sold it few years later and I saw the difference in pricing when I rehabbed it versus the houses around my area where they are not rehabbed. I actually lift up all the prices for that neighborhood. It was in San Francisco before moving to LA and I bought it for $330 and I sold it for almost $900.

holding it yeah

Dylan Silver (03:44)

Yeah, that’ll make me like flipping. Was it a flip or

was it a buy and hold?

Dolf (03:50)

So it was a buy-in hold. It was my primary residence. So I bought it. In one year, I did not like the design of the house. And we spoke before the show about how expensive to buy a ready home in California, right? So I bought a home that is not ready. And then I ⁓ put the plans together. I hired an engineer. I went to the city to get the permit.

⁓ I did it correctly the first time I don’t remember how I I got that idea Because I did not read a book. I did not go to a seminar expensive seminars back in the days I I just immigrated to the country and then so when I saw that when I spent like 60,000 on the house opened the wall made a large island remodeled the kitchen the living room the bathroom everything and

sold it like few years later for like three times the amount. I said, okay, when I moved to LA, I’m gonna rinse and repeat this until I get bored with it. So that’s what I did

2020. Speaking of the Idaho property.

When I sold my house, I got like half a million of equity that I need to invest. I don’t like money sitting in the bank. I would like to the money to work for me. So I made myself broke literally, literally and figuratively. So I bought the Idaho property ready, ready to go. Maybe I spend like 5,000 to rehab here and there. And then I bought ⁓ dilapidated.

three unit building in LA. So that one, was a very risky move, but I like it. I like to take risks and I’m still new. like, you know, like the adrenaline rush. So I bought it and then with tenants in it. So I didn’t know if they want to move, if they don’t want to, by the way, California is the most tenant friendly that I know of.

Dylan Silver (06:38)

Yeah.

Dolf (06:50)

which is not good for investors, just FYI. So I bought it, we have these three unit buildings, and then the rent jumped from 1,000 all the way to 2,800. So that’s another success factor.

Dylan Silver (06:53)

Sure.

Dolf (07:08)

fueled my desire to be an investor, like gradually full time. So my background is engineering. I’m a software engineer before I became a full time investor slash real estate broker. So I worked for John Deere, Epson, all the big names right there. But I felt like WDU too is not my, I don’t want to be like hitting the ceiling. So I decided to do investing.

Dylan Silver (07:36)

Yeah.

Dolf (07:38)

So

when I did that I said, okay, let me convert the garages because I want I now I get only a hundred dollars ⁓ of rent from the garages let me do an ADU and that was another experience to me. So we did the ADU it took me like eight months. I worked with a with ⁓ a Contractor because ADU was new like something from the ground

up is not I I don’t I did not want to I take risks but I take like educated rights so that one was not very educated so I hired a contractor and then it took I in my opinion it took longer than it should be like nine months is not

When you have three walls ready, it should take less than that. But it’s okay. We made it. Then I got the rent from that unit. So now the three unit building that I bought for 410,000 now a price for 1.3 million. So I was like, okay, so maybe this is what I should do because it’ll take me this, by the way, this is like to give you

To give you perspective, the three unit building, I rehabbed it just remodeled, like high-end remodel. It took me like six months. Then it got appraised to 800,000, only three units and rehabbed. So you have 410 to 800. Then a year and a half after, we appraised it with the ADU. Then it’s 1.3.

So literally not so less than two years. You got one, like 400 all the way to 1.3. So I said, I need to do more exactly. So then I stopped it like buying and fixing up or buying and keeping as a rental. By the way, for the audience, for your audience, I have a very, ⁓ treat for them at the end of the show. I’m going to show them.

Dylan Silver (09:35)

That’s a huge.

Dolf (09:55)

This place that I am and I specifically came to here to show you

The latest and the greatest projects that I am working on which is about to be done Hopefully in in two weeks, it’ll be done and ready So I’m gonna show you use just the views because I don’t think we have time to show you like the designs the so You’ll be excited

Dylan Silver (10:45)

Now D.

Do you have any

background in ⁓ contract work? How did you become proficient in doing the rehabs? And also too, were there any major obstacles that came along the way, whether it was in ⁓ that single family deal that you did for yourself or those small multifamily deals?

Dolf (11:14)

So, ⁓ like contrary to the belief, the engineers, make very good contractors, by the way. They know how to execute the project. They know how to execute on time, on budgets. And I just like transfer my education and experience with John Deere, for example. We worked in big teams. We have the autonomous tractor project that I was working on.

So how to automate ⁓ like a home size ⁓ tiller like a ⁓ machine and you cannot deviate three inches. You cannot. So the error margin is three inches. So imagine that making it on budget, making it on time. So you move it to the project management. So literally I did the…

the project managing of my own projects. So I hired good quality people. I paid them a little bit above average because they provided me with above average service. And then just like be on top of them all the time. What do you need? What do you need? Where are we in this? Where are we in this? And then when they see

someone who is like an owner with authority and also on top of things they immediately ⁓ Move on path and on targets. So to answer your question It’s the engineering background and working for large companies corporate companies

Dylan Silver (12:57)

I’d love to see the home that you’re in. You mentioned it’s two weeks done. Can we take a look at it?

Dolf (13:00)

Yeah

Yeah, absolutely. So let me show you it’s actually very very messy So this is I have balconies everywhere man. So this home is in Hollywood Hills So I did so I have speakers I have high-end lighting I have vaulted ceilings like I don’t can you see the vaulted ceiling and Then this is the view I was talking about. Can you guys see?

Dylan Silver (13:25)

Yeah, I see it.

Dolf (13:31)

the fog and the hillside on the other side. It’s actually raining. Hopefully, let’s see. Let’s see. Is it raining? Exactly. I am above the cloud almost. So these houses, and then I could show you, let’s see, the balconies. I have five balconies. So I am missing only the glass railing.

Dylan Silver (13:39)

It’s beautiful, yeah, it looks like you’re in a cloud.

Dolf (13:59)

And the appliances the appliances big bummer. So this is the this the steps and then the the The room looks like I have speakers everywhere by the way. It’s I have 40 speakers in this house So

Dylan Silver (14:13)

Look at that.

Is that like a very

common thing that you see in those type of homes or is that a big value?

Dolf (14:23)

No,

everything custom made everything. So only high end homes, have these kinds of features. And then you see like I am in balcony one and then I have another balcony here. Execute my mess. Look mess is part of the deal, right? So you don’t mind looking at this. So this is another balcony and then this is the hillside. See.

Dylan Silver (14:45)

That’s right.

Dolf (14:55)

So, and then you have this balcony,

massive balconies like the size of an apartment. So eight foot by 35 feet long. So, so this is the home I was trying to show you. So this is a round up construction project. So I took the house demo everything and then built it from scratch. So.

Dylan Silver (15:44)

Yeah, I see.

Now how?

Dolf (16:03)

I had to learn how to do piles in the hillside. had to learn how to ⁓ bring heavy equipment in a very narrow like Hollywood Hills streets. I have to learn how to be like, ⁓ what’s the word I’m looking for? ⁓ Very strategic and very diplomatic with the neighbors. So not to report, not delay the project.

Dylan Silver (16:28)

Yeah.

Dolf (16:32)

So I had to learn so many things for this project and I’m really glad. It took me like a year and a half to do it. this is also, was, this is the biggest project, ⁓ single family project. mean, now I have 16 units building that I am rehabbing. I am part owner. So the…

As a single family, this is ⁓ the biggest project that I like single family wise.

Dylan Silver (17:08)

Now, do you feel after this development that you’re doing right now that the next one will maybe be ⁓ easier or were there some things that came up during this one where you said, wow, that was really tricky or how do you feel about development going forward? Are you maybe going to do more of these types of deals?

Dolf (17:25)

Yes, yes, absolutely. ⁓ Not in the hillside because ⁓ I will be more careful the project that I choose and the profit quantum. So this one I went in exactly like the the triplex like dive in. So this is my mentality. I dive in and then figure out the problems later.

Other people they figure out that they anticipate the problems ahead of time. So they put all these problems So they get ready and then they might get the problems they might not get the problems and they waste so much energy and time on trying to solve ⁓ Phantom problems. So for me, I am the opposite I go in and then

Figure out the problems like cross the bridges when I get them. I don’t want to bother myself with Problems ahead of time because you need to have the energy and the passion

The problems if you talk about the problems be ahead. It’s gonna kill your your Your mojo and your your like energy immediately. Yeah ⁓

Dylan Silver (18:42)

Yeah, you’re not gonna have death by, you know, overthinking, you won’t make any

progress, you won’t start. ⁓ You know, I’ve heard this from engineers too, that like, you can easily think of every problem that could come up and then you might not want to start. It’s better to rely on your problem solving ability than your problem anticipation ability, because then you just won’t ever get started. But ⁓ we are…

Dolf (18:50)

No.

Yeah, I always

do that. I always.

Dylan Silver (19:10)

We are coming up on time here though, Dolf. Where can folks go if they’re in Southern California? They’d like to reach out to you. Where can our audience go to learn more about you and what you’re working on?

Dolf (19:21)

So right now the easiest ⁓ is my company. It’s called I have bunch of companies by the way I got my contractors license as well. So it’s now trifecta. So I have the real estate broker license. I have the the Contractors license and I’m also ⁓ Licensed to get loans so I can get get my own loans buy my real estate

Hire my company to do all that he had like using permits using precise ⁓ Like ⁓ Strategies to do it to go to to get in touch with me. The easiest is my realtor email, which is dolf.a@kw.com from Keller Williams.com and then my ⁓ contractors business is

info@uniqueplacesbuilders one word dot com and it’s also the the website so if you go to that website you will see all like not all of my projects but 80 percent of them i still have to add more projects to it so this is a good way to contact me my cell phone is (323) 630-8552

So if you think these projects are good and you want to invest, please come invest with me. I always need capital partners and we will give you a good return on your money rather than sitting in the back.

Dylan Silver (21:07)

Del, thank you so much for taking the time today. Thank you for coming on the show.

Dolf (21:09)

Absolutely