0:00
This place, how much did you spend on it again? >> 2.
Search this video
0:02
8 to buy it, 2 million to build it. >> So, that's 4.
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8 in and you're going to sell it for what did you say? 6 and 1/2? >> 6 6. 2.
0:09
>> I saw this guy on Instagram the other day. He says Marco Brian.
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He buys and restores and then sells brownstone homes in New York City.
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I thought it sounded awesome and I thought I don't want to make my living using screens all the time.
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I want to figure out how his life is, how his business is, the economics behind it. And so, I called him up.
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I'm going to spend the day with him.
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We're going to figure out all the numbers and if this is actually something cool to do.
0:27
Is his business actually any good?
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Is his life actually any good?
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Do I want to trade places with him?
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And at the end of this video, I'm going to give him a Sam score.
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We're going to look at the economics of his business.
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Does he make a lot of money?
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And then we're going to have a lifestyle category where we ask ourselves, is this actually something that you feel pride in? Is it a good lifestyle? So, let's get to it. Oh. I [ __ ] up. I messed up.
0:53
I can't even figure out how to use Apple Maps to get to where he lives, let alone build a freaking brownstone.
0:59
All right, let's go this way. Okay.
1:01
So, he DM'd us where to meet him. It's 11:45.
1:05
We're a few minutes away.
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We're going to walk a couple blocks.
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This guy, [music] he looks like the Dos Equis man, like the most interesting man alive.
1:10
He's got these kind of like movie star good looks and I don't know too much about him other than he looks [music] awesome and he has a cool job.
1:18
And so, where we're meeting is at his apartment and then we're going to go to a townhome that he's currently restoring as well as a commercial property that he's restoring.
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I'm excited, but I'm a little nervous.
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I don't want to look stupid cuz I know nothing about like construction.
1:35
I'm wearing Red Wing boots, but the reality is is I'm cos playing.
1:39
I'm a yuppie guy who's trying to dress like a blue collar guy.
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So, like hopefully he doesn't call me out on that, but it's the truth.
1:49
Marco Brian, what's up, dude?
1:51
>> Sam, what's up, my man? >> Hey, man. All right.
1:53
>> Nice nice to finally They you. >> Yes.
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We're going to start with this place. So, where are we now? This is your house? >> 94 Bank Street.
1:59
It's It's uh It's a project and uh but I'm living in it.
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So, look, I usually buy things that uh that have rats in the cellar and holes in the roof and um water damage everywhere, mold, and and problems.
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But, this one when I walked into it, I was like, this is cute.
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It's a 100 It's 180 years old. >> 180 years old. I mean, it's super old.
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>> How much did you pay for this place? >> 5.
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5 >> How much money are you going to have to invest in it?
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>> At this stage, closer to six.
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>> How much can you sell it for? >> 17 >> Can we see it? >> Yeah, let's go in.
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>> Hey, really quick, guys.
2:31
If you're interested in this and if you're interested in that blue-collar lifestyle, which frankly, I [music] am.
2:37
That's why I'm making this video.
2:37
And you want to start a business in this space, we have put together this thing called a blue-collar business database.
2:43
It's a database with hundreds of different business ideas where you can use your hands, you can start immediately.
2:46
Lots of different metrics about why the business is potentially interesting.
2:50
And so, if you're interested in that, click the link below. Totally free. All right.
2:52
Now, back to the episode.
2:54
>> when I walked in, the sh- these floors were shiny.
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I just, you know, it just glistened.
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I thought, I love the floors. [music] I came in here. I love the fireplace.
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And speaking, we talked a little bit about buying the old furniture.
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Like, I'm really [music] not fancy.
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I love to stacking my I love living in the West Village, which is which is super fancy.
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But, I st- I bring my The people are like, you bring all that firewood in?
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Like, where are you going to put it?
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Like Like, this is the beauty of living in a in a house that's banged up.
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It's It's >> It's insane that a home that's going to sell for $17 million. You are >> I'm stacking.
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>> That's not how they're going to use it. >> That's right.
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>> So, when do you think this will be done, this project?
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>> So, it's [music] been 2 and 1/2 years that I've been waiting for permits. You know, it's landmark.
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>> just sit and do nothing?
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>> No, it's it's a lot of work of architects, engineers, getting um soil bearing bearing tests.
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You know, they've got to break up the the foundation down below in the in the cellar.
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And I can show it to you.
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And then they they want to see where's my neighbor's foundation? Where's the footing?
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Where is Where is my footing compared to their footing?
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>> But it's like just getting the permits and doing all this regulatory stuff.
3:57
It seems like that's like the thing that Like when people talk about like products that they're going [music] to sell on the internet, they think, "Oh, my product's amazing."
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I'm like, "Yeah, but like the reality is you have to be a good marketer.
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70% of the value is like are you good at like buying ads online?"
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With this, it's like, "Well, I can build this amazing place.
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I can make a profit on it. I can do it cheaply."
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But it's like, "Yeah, but can you spend the years like jumping through the hoops of like getting approvals and all this other stuff that you didn't like it's >> It's the cost to carry it. It's in [music] time.
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Time will kill every deal and and often it does. >> Can we see the rest? >> Yeah.
4:33
So, and actually so this is funny because I'm using this as my bedroom because I I moved in.
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I thought I'm going to be here for 6 months, maybe a year, and then I'm it's going to be a demolition site.
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I'm going to restore all this.
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So, this's going to be, you know, plastic up everywhere and workers running around.
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>> [music] >> So, I'm going to just keep the footprint here and let's start working upstairs.
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>> I don't know much about real estate, but it the limited amount of stuff that I've done, it seems like everything costs way more and takes way more time. >> Yes.
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Yeah, it's it's it's just out of control.
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And it's getting worse and worse.
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So, this is my my desk, my office.
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Look at this fireplace here though.
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I mean, isn't that >> Is this your brand?
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>> Oh, that's my vodka brand.
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Yeah, Broken Shed New Zealand vodka. I make it from whey.
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100% New Zealand products water from New Zealand, whey from New Zealand which is um >> This is a business that you own and started? >> Yeah.
5:23
I spoke to a guy about this recently and he was like, "Well, how did you How did you get into real estate?
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Like what What was that thing that made you get into real estate?" And I said desperation.
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Like I had I I I was freaking out.
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I had two and a half kids.
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I was living in Greenwich, Connecticut in a house that I had no right >> Was it a fancy house?
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>> No, it's No, it was >> It was like a thing that you You to fix. >> Yes, exactly.
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>> Okay, so you Well, it was something that I would have had somebody else fix. >> Right, okay.
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>> Cuz I wasn't building houses yet.
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>> it seems like maybe took a project that maybe was a little bit over your head and then you're like, well, I I have to make it work. >> Right. Yeah, exactly. >> did that work? >> Yes.
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Yeah, and that's kind of always how I've lived.
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So, you're like >> And that was like how you got into real estate? >> Yes.
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It was It was I I was completely over-leveraged.
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So, I'm a big big believer in in leverage and use other people's money, the bank's money.
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But, it's a great way to go broke and get yourself in a lot of trouble.
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Uh and I know people that have done that and hasn't hasn't worked out very well.
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>> Dude, that's like how so many great things happen.
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Particularly, I'm I just turned 37, but like I think about this all the time.
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Like, if I lost it all, okay, I have young kids.
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I'm now like a proper man.
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I have people who rely on me.
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And like, if this go It's like it's my job to like, you know, to take care of this group.
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It's like the most emasculating feeling ever of like, [ __ ] I have not taken care of the thing that I'm supposed to take care of.
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I feel behind and now it's my back against the wall and I have to And it's like, well, that's the beginning of a great story. >> Yeah.
6:47
>> Hopefully, it's going to be a great story.
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But, that's like a very scary primal feeling.
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I have nightmares about that as like a dad.
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Did you um >> I think Should we also Do you want to walk out and step outside and Ah, now the sun's coming out.
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>> How many So, you've been doing this How old are you? >> How old do you think? >> I don't know. >> Come on. >> 55? >> 51. >> 51? I don't know, man.
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See, this is why I hate playing this game. >> No, I'm not. I'm 60 63. >> Oh. >> [laughter] >> Okay. >> I hate that game. Oh. >> So do I.
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I usually say, go [ __ ] yourself, I'm not playing.
7:23
>> Your specialty, I think, is townhouses, right?
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>> Townhouses, brownstones, uh res- restoration.
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>> How many have you bought and sold?
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>> So, this is my third my third big project of of restoring brownstones.
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So, 62 Greene Avenue in Fort Greene, 428 Vanderbilt and 94 Bank Street.
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And then I've got And I've got other projects like in Crown Heights, one over here on Jane Street that I I act as the owner's rep.
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So, I don't own it, but I I you know, run the run the project.
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>> And then before that, you were just selling real estate.
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>> No, I bought it as my house so I could buy another one.
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>> That's insane that you would get into this business without knowing anything about it.
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>> And at a big high-level.
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I mean, you know, granted how much did you you took a loan out?
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What was your So, all right, [music] so so the the numbers on the first one and the numbers back then were basically you you buy for a million, build for a million, and sell for 3 million.
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So, you make a million bucks.
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So, this house was 800,000.
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I I built it for about 800,000 and I made a lot of mistakes. I mean, crazy. >> in for 1. 6.
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>> Yeah, and I sold it for like two two three or something. >> Over how much time?
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>> Uh like less than a year.
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>> So, that's like a double, right?
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Is that a double or is that a home run, right?
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>> Uh I mean, it could have been, uh but the next one I made a million bucks.
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I was like >> That's a home run.
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>> I was like I like this.
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>> Okay, so you're like, I'm good. I'm good at this now.
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>> So, then I started doing more. I did four.
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I would get like four going at a time.
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I'd buy a piece of property.
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I would go I'd run with my kids in a stroller, three of them.
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And uh I'd see an old lady, I'd be like, "I love your house.
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I got these all these kids Look at these kids.
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I'm trying I'm always I'm looking for something a little bit bigger.
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I live over on Rocky Point right now.
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I'm looking for something bigger."
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And this woman [music] passed like, "Oh, yeah. Hi, kids."
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And you know, yeah, well, give me your number.
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And I can I give her a number. And I would do that. I'd put it in mailboxes.
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I just It was a numbers game.
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>> So, it's it's kind of like boom and bust a little bit. >> Yes, very much. And it's funny.
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[music] I I mean >> Does that make Does that stress you out?
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>> Yeah, but I've gotten good at it, I think.
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You know, I do a lot of yoga.
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>> [laughter] >> I thought it was going to be like hammer [ __ ] all day and it's like fun. >> No.
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>> Want to go see the bathroom? >> Yeah. Yeah, let's hit it.
9:27
>> [music] >> This is huge. How big is this one?
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>> Yeah, so this this I bought like uh two two-ish years ago.
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So, this has taken me way too long.
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>> What's the total square footage?
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>> So, now it's like 4,500. >> Okay, so you paid 2. 8.
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How much you going to put in? >> Uh I'm putting in 1. 8.
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That's turning into more like 2 million.
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>> And what can you get for it? >> 6. 2. [snorts] >> Pretty slim. >> So, check this out.
10:04
This is This is super cool.
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This I just discovered it like maybe maybe uh 3 months ago.
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I It was It had plastic vinyl floor over it.
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And I just assumed it was rotten.
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And I was going to sweep it out or something and and I pulled on pulled on a piece of the plastic and it came up.
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And I was like, I wonder what's under there.
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>> This would be like 100 years old, right?
10:29
>> paint on top of Yeah, this is 140 years old.
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And uh so, I I took my grinder out and started grinding and man, I got I'm finding I find this.
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So, look, some people say, "Yeah, it's it's kind of banged up.
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You should really just put something over the top of it. Nice encaustic tile."
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I'm like, "I I don't care."
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So, I This is all an extension here.
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So, this Two things that I do.
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I like to go up to the roof.
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I like to finish or three things.
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The roof, the cellar, and I widen the staircase.
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So, you can kind of tell that I've There's more of a gap cuz brownstones are notorious for being a little dark in the middle cuz there's no windows in the middle typically.
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So, I widen the staircase and I put a lot of light [music] and a bulkhead on the top so you get light down the middle and then this is all, you know, original original.
11:19
>> And those bricks Are those original? >> Yeah.
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So, and this also >> So, these bricks are 140 years old? >> Yeah.
11:24
>> That's pretty awesome.
11:24
>> So, that's another thing. I exposed the brick.
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So, this has sheetrock on it when I buy it.
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So, I ripped the sheetrock down or not sheetrock, plaster.
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But usually the plaster starts cracking and it decays against the wall.
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>> years ago was 1880, right? Yeah. >> Yeah. Uh >> Or 1890? >> Yeah.
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>> So someone made that in 1890. That's pretty crazy.
11:44
>> Yeah, wait till you see the the cellar.
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The cellar is literally rock, horse hair, and mud. >> Let's see it.
11:51
>> Is the is the is the way they made these foundations.
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Anyway, so this is the this is a typical rubble wall, right?
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So you've got um rocks rocks and and then >> up in a basement like this and it smelled exactly like this. >> Yeah, it's funny. I love it.
12:05
Um So I wanted to keep all of that exposed, but I also think it's important to get as much usable space as you can, as much as possible. >> be finished.
12:15
>> And this is basically free square footage cuz you know, in terms of FAR, floor area ratio, they don't count a basement cuz it's below grade. So I try to make it.
12:23
And right now you're not seeing it at the best Um I I got to put baseboard on, finish the floor, and and really spruce it up.
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So it feels like it's real space.
12:31
It's not it's not a >> So how much do you think this home home will sell for? >> 6. 2.
12:36
>> What type of person would buy a this house? >> What kind of person?
12:39
>> Like a what would the job be?
12:40
>> Um probably like, you know, yeah, I get a lot of creatives here in Brooklyn. >> Like actors? >> Fort Greene.
12:45
No, more like people like these days in social media and doing some some kind of media business. >> That's crazy.
12:51
Maybe you'll be buying a $6 million home in Brooklyn.
12:55
>> So this is a rental, basically.
12:55
So you come under the stair. >> Oh, wow.
12:58
So this is where we were.
12:59
>> your own your own entrance here, and this will be uh like a $5,000 rental or in-law suite.
13:06
So you come in, you've got a your fireplace, original um big open living room, kitchen, washer dryer, bathroom, bedroom.
13:22
>> Oh, and then we get the backyard.
13:24
>> Bedroom, two a bedrooms, washer dryer.
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I know it's in a weird place. And then a backyard.
13:32
>> So, when will this be done? How much longer?
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>> Uh, I'm hoping to have this, you know, photos taken like in 2 weeks.
13:38
So, this will get I'll put like a >> What does photos mean?
13:41
>> Like pictures then start marketing it.
13:44
>> But it's not going to be done in 2 weeks.
13:46
>> No, but I can I can start selling it and start >> So, when do you hope for this to be sold? >> Um end of the summer. >> Oh, okay.
13:53
And moving would be when? >> Like September. >> Oh, all right, cool.
13:56
So, you're nearing the end of a 2-year project, 2 and 1/2 year project. >> Yeah.
14:00
So, this gets this will get pavers.
14:03
Um the the >> Do these guys work for you or are they >> Uh, they're subcontractors.
14:06
So, everybody these days is a subcontractor.
14:09
Nobody's you know, I'm not hiring a whole crew of people.
14:12
>> But you're going to come out of pocket with it. >> Yeah.
14:16
>> Dude, there's so much risk. >> Yeah.
14:18
>> All right, I work on I work on a computer all day.
14:20
This is my work or This is weird. Talking to a mic.
14:27
>> [laughter] >> We get it.
14:28
>> I want to do like >> You want to [ __ ] you want to bust something.
14:31
Let's see if we Let's see if we got we got something upstairs. >> All right, let's see. >> What do you think?
14:38
You want to see >> Yes, I'll do that.
14:40
>> My man, can we can I can I just uh, can I can I get him to cut it?
14:43
Or you want you want to break it? Can he cut? Just for two 1 minute. Just one 1 minute. He's he's not a spaz.
14:54
Are you all right with this? >> Let's do it.
14:58
>> But you got to be >> Yeah.
14:59
>> You got to be careful >> I got it. >> when you hit that. >> All right.
15:02
>> You know, really hold it tight. Can he cut that? >> All the way through?
15:08
>> All the way through, right? All the way?
15:13
>> Oh my god, this is so dangerous. >> Yeah, yeah. >> Good. So, working your heart.
15:34
What was he saying about the story about getting food for being too dangerous?
15:40
>> Yeah, I mean if OSHA if OSHA shut down >> Thank you, sir.
15:45
I'm sorry to mess up your work station, but let's see.
15:52
He's showing me how he worked out when he was in jail. >> That's right. >> Oh, there it is. That's pretty good. Oh, wow.
16:08
>> What did I expect that?
16:10
>> That you should put that on your hinge profile. All right, I'll try. >> You go open with me? >> Woo!
16:21
Not nearly as good, but I >> That's good and aggressive.
16:25
You were just like right cuz you were cuz you could probably do it on your skateboard.
16:29
>> No, I can't do that on my skateboard. >> No, no till you try.
16:32
>> Well, I know I can't do that.
16:32
Okay, we looked at his Manhattan place.
16:35
We just looked at his Brooklyn place.
16:37
This place, how much did you spend on it again? >> 2.
16:41
8 to buy it and then about 2 I'm sorry, about 2 million to build it. >> 4.
16:46
8 in and you're going to sell it for what did you say? 6 and 1/2? >> 6. 2 >> 6.
16:50
2 and that's over 3 years. >> Right.
16:53
>> So, you'll make something like $500,000 a year.
16:55
So, if you want to buy a $6 million 4,500 square feet, right? >> Yeah. >> home in Fort Greene. This place is awesome.
17:03
>> around the corner from Spike Spike Lee.
17:06
By the way, what a good time for him, right? >> of the century. All right, thank you. Very hospitable.
17:09
We're going to get our Subway. All right, God bless. See you soon.
17:14
All right, thank you for everything.
17:15
I'll talk to you in a little bit.
17:15
All right, we just got back to the office.
17:17
Let's give this thing a score.
17:17
Okay, so I've divided this thing up by business and lifestyle because they're both important.
17:23
We're going to do money, machine, and moat.
17:24
And first of all, I love Mark.
17:27
I'm going to hang out with Mark again.
17:28
But in terms of money, this business was a pain in the butt and I don't think it made that much money.
17:31
I'm going to give it a three.
17:33
Basically, I think that he probably does something like $500,000 to a million dollars a year in income, but that's not a good year.
17:41
On a bad year, he probably can like lose money in it.
17:43
And it was just a lot of work for that amount of money. Second, machine. Can it run without him?
17:50
And he has a team of people that he uses in most of his projects, but he's really like the catalyst for this whole thing working.
17:55
I'm going to give it another three.
17:57
And for moat, the biggest moat here is I don't think people are crazy enough to do this.
18:01
But anyone with enough money could probably do it.
18:06
And there's a lot of people in the city who can.
18:07
I'm going to give it a two.
18:10
So, what does that sum up to? An eight.
18:12
So, the business score an eight out of 30.
18:14
All right, now let's do lifestyle.
18:16
So, can you have pride in the product that you're making?
18:19
Do you like the people who you work with and your customers?
18:22
And does [music] it provide any freedom?
18:23
So, for pride, he was very proud of what he was doing.
18:27
I was actually proud for him.
18:29
I thought it was amazing.
18:30
I'm going to give that one a nine.
18:33
He said that sometimes he'll make stuff and like the buyer will just come in and like destroy it, which would really suck.
18:38
But he still gets a nine. Now, people.
18:39
I met some of his co-workers, some of the guys doing work. It was awesome.
18:43
They were really cool and lovely.
18:44
I'm going to give it a seven.
18:46
Just because some of the people who he sells his properties to, I probably don't want to hang [music] out with some of those folks. And now freedom.
18:52
I'm going to give this one a five.
18:54
The reason I'm going to do a five is because each project has an [music] end date, so he could take some time off if he wanted to.
19:00
But when he's there, like in the thick of it, it seems like Saturday and Sunday is included.
19:04
He's always on the phone like dealing with regulations and things like that.
19:07
So, the lifestyle score gets a 21 out of 30.
19:11
All right, so here's what that adds up to.
19:13
For business, he gets an eight.
19:15
For lifestyle, a 21 21 21.
19:23
>> [music] >> You wrote a 31.
19:27
>> Uh, for biz he is going to get an eight. Lifestyle, 21.
19:32
Add all that up, what's that up to? That's 29.
19:37
So, Mark O'Brien buying, restoring, selling brownstones Sam's score, 29.