Be The Bank

018 - Meet Patrick Grayson!

October 07, 2020 Justin Bogard & Super E Season 2 Episode 18
Be The Bank
018 - Meet Patrick Grayson!
Show Notes Transcript

2 Wealth Show S2 Ep18 - Meet Patrick Grayson!

On Episode 18, Justin Bogard and Super E interview Patrick Grayson with StolCo Designs.

Key Takeaways:  

  1. General Contracting and Investing
  2. Life Lessons and Business Skills
  3. Flipping Gut Jobs; Providing Income

 Resources and links discussed  

Sponsored By: Integrated Health Solutions

We are passionate about your health and wellness and we know you want to enjoy a vibrant, pain-free, active lifestyle, but when you are in pain this seems almost impossible. 

In order to be pain-free, move fluidly, and enjoy an optimal level of functionality, you need a personalized yet integrated, research based and clinically proven approach and that’s what we do.  

To learn more visit us at
ihsindy.com
cryotherapyindy.com 

About the Hosts 

Justin Bogard – Note Investor specializing in performing Residential Real Estate Debt. He finds deals and acquires them for his own portfolio as well as educates investors while walking them through the process of owning a Real Estate Note!  

Super E – Real Estate Investor specializing in short-term rentals and the management of them. She connects investors with short-term tenants and manages everything in-between.

Connect with the Hosts: 

  • @2wealthshow – Facebook/Instagram 
  • @wealth_show - Twitter 
Justin Bogard:

Welcome to the 2 Wealth show, a show that shares how you can create real wealth for you and your family. I'm one of your hosts, Justin Bogard. And my cohost is Elizabeth Sickles, AKA super E. I am a real estate note investor specializing in performing residential real estate debt. I find the deals acquire them for my own portfolio, as well as educate investors while walking them through the process of owning a real estate note, my cohost super E, a real estate investor specializing in short term rentals and the management of them. She connects investors with short term tenants and manages everything in between. Our show is sponsored by bright path notes and Elizabeth Maora. You can find out more information by visiting our websites at brightpathnotes.com and elizabethmaora.com everybody. This is Justin Bogard. Co-host on the 2 wealth show and today is episode number 18. Guess what? Hello. We have over 500 downloads.

Elizabeth Maora:

That is awesome. Thank you to everybody.

Justin Bogard:

Absolutely. Thank you. It's been fun. And I look forward to many more. So, Elizabeth, uh, go ahead. Introduce yourself. I kind of stepped on your toes a little bit. I was so excited about having 500 downloads.

Elizabeth Maora:

So I'm Elizabeth with Elizabeth Maora, and we have a very special guest today. So this is the first of many. We are onsite at a project. Um, I'm doing the project management. Patrick is our special guest today. He is, um, a general contractor. So if you are not on the video right now, we would really encourage you to check out our YouTube page because you will see this house, which is in complete disarray. Um, and so we're really grateful not only to have Patrick on the, um, on the project, but obviously on our podcast today. So welcome Patrick.

Justin Bogard:

Absolutely. Yeah. Thanks Patrick. On our show, I have to say though, that it's in disarray from the old contract.

Elizabeth Maora:

Yes.

Patrick Grayson:

So if you see code violations anyway, or the pink paper in the window, that's not mine. That's awesome because you don't think is the right way.

Elizabeth Maora:

That's right. That's why I recommended him and that's why he was hired for this. And so just, you know, he's the CEO and founder of stole co designs. So welcome Patrick.

Justin Bogard:

So Elizabeth, is this a property that you have?

Elizabeth Maora:

This is a property that we will, yes. So just a quick backstory on this and we'll get right into the interview with Patrick. The clients bought this property basically a year ago. They bought it in October of 2019. They hired a contractor. This was a complete gut job. And, um, there were a lot of issues. They brought me in, in may to do a construction consult. And then, um, there were still a lot of issues with their previous contractor. So they asked me to do the project management and then I brought, brought in Patrick. Um, so cause we partner with people that do things right. And um, so our clients are super happy. Um, we've made even more changes to the layouts, make it more conducive to what's going on right now. I'll let Patrick talk about that. But, um, so it's, it's just a super exciting project all the way around.

Justin Bogard:

Fantastic Patrick, why don't, why don't you kind of lightly introduce yourself after a super Eve came and came and got some information about it?

Patrick Grayson:

Yeah. So, um, let's see SoCo designs. You can look us up and find all the information on, on social and stuff to kind of see some videos of what we do. Um, we specialize in investor remodeling. We cater to, um, out of state investors just happens to be a lot of our client base, but, um, we do lots of the big nasty, like gross gut job type projects that the other other contractors don't want or can't handle. Um, and we also do a lot of like room additions, stuff like that. We were, we work with a lot of Burr investors, um, the, the refinance. So they're looking for ways to add value and push that ARV up. So we go in and add a bedroom or a bathroom or change the layout or something to make it, you know, the, so they can get a good cash out, refi on it and hire us for more projects. Absolutely.

Justin Bogard:

So do you work mainly in Indiana?

Patrick Grayson:

So we work, uh, yeah, I'll say 90% of our projects are within the four 65 loop. Um, we can be convinced to venture out of there, but, uh, you know, there's just so much work in the loop. Um, that's just, you know, it's where we've made, uh, our home. So, um, yeah, we do, we do all over Indianapolis though.

Justin Bogard:

And Patrick, how did you get, I'm sorry for those of you that are listening and watching there is kind of an internet delay right now, even though we're a few miles apart, it seems like

Patrick Grayson:

Gotta love the internet and zoom. I was gonna say, Patrick, how did you get started in this business? Great question. Um, so I got started in the real estate business, gosh, decades ago. Um, I was literally raised in it. I'm from Southern Indiana, my father and mother and gosh, aunts and uncles, grandma and grandpa, everybody was buying real estate, uh, down in Columbus. So I actually, I mean, I, I have very fond memories growing up, helping dad and watching dad work and build his rental portfolio down there. So that was, you know, like the real kernel that started everything. And, um, you know, since then I grew up working for, uh, the family business, so to speak, working on houses, being a handyman, that sort of thing. Um, then I went to Purdue for like management degree. Yes. Um, and then my wife and I spent about 10 years traveling the country with my old job. I worked for a really large, uh, worldwide general contractor. And, um, once we had our two little boys, it was, it was, you know, we figured it was time to move back to the Midwest. And so that's when we made a real estate investing a full time gig. Um, so that that's really where the fulltime thing started was real estate investing. We were buying and selling, flipping our own homes, our own investments. Um, so I have a lot of experience on the investor side, but then kind of one by one, the general contracting thing picked up more and more, um, because it, it sounds so simple, but it was just hard to find a good, like honest contractor out there. And I've been to court with them on the investor's side, more than once. So I know what that's like. And, uh, so we had a lot of people approaching us about doing the jobs for them. So, uh, things have picked up and up. And so this year we'll do somewhere around 35 to 40 remodels, very busy. We have full time project manager checking on jobs. We have lots of w two employees and stuff. Um, and we worked a lot of, a lot of subcontractors as well. So it's, it's kind of ballooned up and, and I mentioned it really, but we created a name for ourselves because it doesn't scare me at all. It doesn't scare the guys, the workforce to go into a house that looks like this. Um, even though the internet connection, isn't great. Uh, you know, we, we, we, we jumped straight in and take it on and just run head first into it. So,

Justin Bogard:

And those great, and it looks definitely livable as is right now

Patrick Grayson:

You can see the open floor, open floor,

Elizabeth Maora:

Imagine a beautiful master bedroom right behind where Patrick is staying. Cause that's what it's going to be.

Patrick Grayson:

We should do a follow up interview when it's done. Cool. That'd be incredible.

Justin Bogard:

Cast the, go over to Elizabeth Maora's YouTube channel or bright path notes, YouTube channel. So you can actually see the video and Elizabeth, can you hold up your camera a little bit so we can see a little bit of the construction project and what's going on.

Elizabeth Maora:

Sure. So this is going to be the master bedroom and bathroom. This area is going to be a really gorgeous kitchen. And, um, so this is just the landing area. That's a bathroom where, where it's, um, framed in and then this is going to be a dining room and then room where all of that lumber is. And, you know, what's really great because Patrick has so much experience is that when he came in here with us two weeks ago to look at the layout again and just see how we can optimize it even more is that some of that has a lot of experience and has a lot of good ideas. Like we made changes based on some really cool stuff that Patrick brought to the table. So it's really nice whenever you are working with someone to have a really collaborative relationship. So it's super key. And especially if you're an out of state investor and you don't know the area, you don't know what in that particular neighborhood is going to sell.

Patrick Grayson:

Yup. And then throw on top of all of that, the short term rental aspect. And so then when we started the collaboration thing early, we can catch some of the things that like, if you've ever stayed, this is one of my favorites when you've ever stayed in an Airbnb. And you're like, I wish there was a plug right here where I could put my phone in so we can take care of that stuff while the walls are all torn out. Um, so that's been cool too. Like we figured out a way to make an a second master suite on the second floor like that, but just, I think from Elizabeth standpoint is going to help give her a little edge when it comes to putting it on the market short term.

Elizabeth Maora:

Absolutely. So this is going to be, yeah, it's going to be a three, three, and with the possibility of an easy four, three, so four bedroom, three bath or three bedroom, three bath. So yeah, so Patrick, yeah, it's going to be really cool. Um, do you want to talk to us kind of about, you mentioned your two boys and you grew up in the real estate world. So how are you incorporating that with your family?

Patrick Grayson:

Yes. So you asked about things that I would be interested in talking about. And I, I was thinking about it earlier today, even. And, um, I mean, just think about the show, what we're going to talk about. And I don't think I even realized how, like, how important is this to me, but so I have two little boys they're three and five right now. Um, I know what it meant to me as a kid when I used to go to the job sites with my dad. Um, and he did a lot of work himself. So I would watch him stay up late, painting rental houses and fixing toilets and all that stuff. And he, you know, God bless him. He would take me with him and I'd probably just fall asleep on the floor or whatever. But, uh, you know, in hindsight it meant a lot to me. And, um, this is just kind of a unique thing, but I, so I'm in, I'm in a group of church that's just young dads, right. And so we're always sitting around talking about how really, especially in today's climate and all the thing, the craziness of 2020, how important it is for dads to kind of step up and be good role models, uh, to their kids, whether it be sons or daughters or, or whatever. Um, and so we spent a lot of time talking about that in this little group and, you know, inevitably it always comes up. It's difficult to spend quality time with your kids because there's time constraints, right. Dads are out trying to be breadwinners and spending a lot of time, time in the office, or, um, maybe doing side hustles, stuff like that. And so whenever I hear the complaint or the I'll call it an excuse of, I don't have time, um, I love to challenge it, you know, play devil's advocate a little bit because I don't think it's as much as you don't have time. It's that you're, there's just the missing link of being a little creative to make the time. Um, and so that's what I try to do with my two boys is probably one or two days a month. They come to work with dad and we drive around and we look at the jobs and, you know, Maxwell seems to always find like a stick or a piece of wood that he wants to take home as a souvenir. And, um, you know, we always go to the steer in restaurant on the East side and get our blueberry pancakes. Um, but I, I think it's cool. And it's a creative little way to, you know, spend more time with your kids and still a little bit of that hard work or that business mentality into your kids at a young age. Because if, for anybody that has kids just like me, you're probably always surprised that the stuff that gets regurgitated back to you like five years after the fact, and you're like, Oh my gosh, you know, I didn't realize you learned that when I was saying it all the time. And so that's a little bit of what we're doing now is, is kind of forcing that quality time with the boys and getting out and showing them what it's like to run a business and, and rebuild houses. So that's awesome. Patrick, I'm a little more passionate about it than I even think I realized that.

Elizabeth Maora:

And you know, this is a great point for, so no matter where our listeners and our viewers are in their real estate world, that if you do become full time or more part time, whether you're a parent or even if you're a grandparent and you just want to spend more time with your kids or grandkids, it's a great way to be able to teach them life lessons and business skills and spend time with them all in one. So just having that ability as an owner is fantastic.

Patrick Grayson:

We had, we have some Guatemalan guys that work on one of the crews, and so every time Maxwell shows up, they teach them a new like Spanish phrase and I'm like, you know, where are you going to get that?

Elizabeth Maora:

That's awesome. So can you tell us about some of the stuff too, that you bring to the table as a GC? Because not only you're, um, you know, not only are you a GC, but you're also an investor.

Patrick Grayson:

Yeah. So, um, the, these conversations have picked up a lot now that we're vendors with CIREIA. Um, so our reach has gotten a little more, you know, outstretched, but, um, I tell people, I like, I'm still an active investor and obviously running, uh, active general contracting business. Um, so I see the good and bad of it all the time. And I've, I've been totally screwed over by both sides in both scenarios. Like I've been to court as a contractor and I've been to court faster. Um, so I, I, you know, it offers up a really unique perspective on some of this stuff, but I mean, just a few hours ago earlier today, got a phone call from a local investor who had been in one of our webinars training things with CIREIA. And it was like, you know, how would you handle this contractor? The, that isn't doing what he's supposed to do. And so we had a nice long conversation. We didn't have a solution like per se, but it was like, Hey, I've been on the receiving end of that as a contractor. And just, don't be too quick to blame the contractor for something like this is your project. Just as much as it is the GCs project. So like, if there's something you care about in this case, it was the level of levelness of the floors. And like, if that's really important to you, it is also your obligation to bring that up to the contract. Don't just assume that that's going to happen. So I think when I brought that up, it was like, Oh, you know? Yeah. Like I, a lot of times the investor has more instinct than the contractor. Um, you know, it's always a surprise to me how quickly some investors are to just give the reigns over. Um, and of course I feel like in my scenario, like, that's cool. That's great. Cause a lot of times that's not the case. Um, so yeah, I mean, I think that's what a lot of our clients like is that, you know, they can ask a question if it was your rental house, what flooring would you put in? Would you put a dishwasher in, well, I don't know. Let's talk about the price point. Let's talk about what kind of tenants you want to bring in that sort of thing. Um, so just a little, I guess, added value, add, you know, to the services we provide,

Elizabeth Maora:

One of the things, especially with this property, that's a huge, um, a great thing, a great positive for Patrick is that he's very, has intimate knowledge for the permitting process. So especially because we're an urban

Patrick Grayson:

Irvington loves that our windows, if you're buying investment property in Irvington, check the windows first, always. Um, yeah, and I mean, again, it was born out of that experience of being on both sides, because for a long time, when we were flipping our own properties, I was pulling permits as the homeowner. Um, and so I, you know, I didn't want to pay somebody and I knew I could figure it out. So I just ran headfirst into the process many times, uh, to, to learn what it really takes. And so now we've done. I mean, we, we do the bedroom and bathroom addition thing a lot, right. So we have that down, Pat. Um, we had, uh, some current, um, out of country clients where they bought a side by side duplex and fountain square and were, we went through the full process of dividing that parcel up and, and splitting it so that they can actually sell them as townhomes after the fact, which is a big thing around the country. Not, not quite in Indiana yet, we're getting there, but, um, just to go through it and learn some of that stuff, um, you know, has been super helpful because then to step into a project like this is super unique. Um, you know, I, I have no idea what it looked like before I saw it a few weeks ago. And so to be able to reach out and work with the city and know kinda what they're gonna ask for some of this stuff, um, has been hugely beneficial.

Elizabeth Maora:

What's your favorite part about being a GC?

Patrick Grayson:

That's a good question. That's a good question. I, you know, this gets to the why of things, right? Like why, why do any of us have our businesses that we have? Um, I think I fell into the GC thing because I'm like, that's my personality. I'm hands on. I like to build stuff. I've always been like the creative mind, that sort of thing. Um, and also a little bit of the, an analytical right, which you need to kind of run a business and to also buy and sell real estate. Um, but I'll tell you the, like the one thing that I love about it at the end of the day is like, there's a couple of facets to it, but Hey, we have like 10 guys working for us who show up every day and swing hammers and work hard and sweat. And at the end of the day provide an income for their family. Um, like I think that's so cool that I'm able to step up and kind of in a way help provide for their family. And then also the investors around making a living for themselves, right. They're buying rentals or flipping houses or whatever to provide income for them. And then at the end of the day, someone's going to move into the house. Like, that's just so cool to me. And so this, he booked lumbered, that's all discussed, you know, people that are going to come to Indianapolis and they're going to stay here for a weekend. And then they're going to be like, Oh, that cool place, you know, over and over in Irvington, it had two master suites and it's seven foot kitchen Island, like so cool. Um, so I just get a kick out of all that stuff, like at the end of the day. Um, I'd love to think about that part of it. That's awesome. So speaking of this project, Elizabeth, do you have a name for it yet? Oh, the big reveal.

Elizabeth Maora:

We're gonna wait on that. Just a smidge. The first

Justin Bogard:

On the 2 Wealth show. That's what I want it to be.

Elizabeth Maora:

So it is on good. So we're going to have a lot of fun with that and we're going to do some special things in the house as well. Um, so I actually have two, um, consultants coming in from it's a three hour drive for them to work on some of the coloring and stuff. So it's just, um, I'm excited. I'm very excited for this project.

Justin Bogard:

Sweet. It's going to be a good one.

Elizabeth Maora:

And Patrick, do you want to tell, um, especially for those that are able to view this about our timeline for this, like when, when it's going to be?

Patrick Grayson:

Yeah. So, um, I'm not going to say anything on camera though. Cause it could be held, held response. No, I mean, these are a little bit tricky. So like right now we we've come in and we've started cleaning things up and doing stuff that you know is going to have to happen no matter what, right. It doesn't matter if the city of Irvington is going to make me replace the windows or not. Like I still have to replace the floor joyce cause they're just missing. Um, so we're in here doing some work, but uh, projects like these have a tend to have a slower start just because we have to get all the paperwork straightened out and we know how the city moves on that sort of thing. And then, you know, plop the whole COVID thing on top of it, everything's a little slower. Um, but you know, a rule of thumb, maybe the people that are listening can use, um, is your, in our experience, um, your contractors should be moving at about, I'll say six to$8,000 a week. Um, you know, so to say an$80,000 remodel should be about a 10 week project. Um, so that's, you know, I pour through this data from old projects and stuff and uh, those, those are some of the numbers that we've run through the bigger, the job, usually the faster, or that the higher that dollar amount goes maybe closer to 10 or 11,000 a week. But yeah, so that's, that's about where it will be on this one. That's a really good metric. I've actually never heard of that metric before to give yourself a projection of how long it's gonna take. That's pretty cool. I'm going to remember that. And it comes remarkably close to that's the coolest part. Like afterwards, I always looked back at my notes and see what I told the client and I'm like five weeks. Cool. We did it five weeks.

Elizabeth Maora:

This does not include though. Permitting issues.

Patrick Grayson:

Yeah. I mean the one I was talking about a minute ago with the side-by-side duplex that we're replanting that's what, three months to get all the paperwork straight with the city before we cleared him. So yeah, that can just cause it's Irvington or just in general you have, if you have challenges with paperwork, you can take that long with permitting. A lot of it depends on the scope you're doing. So like that duplex, it was in fountain square. So, you know, you've got the city's attention because it's in a highly remodeled neighborhood. Um, we're changing the piece of land. So I mean that that's an undertaking to begin with and then you throw things in there. Like you, you need to send a surveyor out to get a detailed survey on the part on the parcel, you know, that takes two weeks. And then, you know, there, I think for that one, because we're building a garage also, I think we had to pull like eight permits for that, that property. So just a lot of documentation and back and forth getting drawings right. And all that stuff.

Justin Bogard:

So when do you have time to do your own investing? It sounds like the GC work keeps you pretty tight.

Patrick Grayson:

You know, we, we still actively invest. We were in kind of a niche deal for our own investments. We like to buy low income type housing and, and basically get them rent ready and sell them off to other investors. That's kind of been a sweet spot for us about the last year. Um, and we've been having some fun dabbling in direct mail and doing our own marketing, that sort of thing. That's, that's the blessing. And the Curtis with real estate is you can, you know, you can do everything and all of it, or you can just pick one little niche and go for it. So right now we're just having fun, testing everything out.

Justin Bogard:

Fantastic. Patrick, how can people get ahold of you if they're in looking for help remodeling or fixing a project in Indianapolis Indiana area?

Patrick Grayson:

So probably the easiest is to go to the website, Stolco designs.com, S T O L C O designs.com. Um, cause there you'll find the links to the social media pages and all that. So if you're looking for some videos, you want to see what we're working on, the types of projects we do check out the social media. Um, my direct line is all over there too, so people can reach out directly. I'm always driving around town. I'm always looking at new projects that in fact, after this call, I'm going next door to see if I can buy that house. Um, always an opportunity. I'll let me, let me offer this up if we have a minute, cause this question I get a lot is how the process works. So, um, especially out of state buyers, right? If you don't already have boots on the ground, so to speak, um, find your property, um, get my information from the website or social, whatever, and send me the information that you have. So whether it's a listing from the MLS or videos and pictures from wholesalers, whatever, send it over to me. And we do a real quick like consult phone call, um, to just get a ballpark idea. You know, we we've done a lot of these projects, so I can usually get within about 10 or 15%, you know, looking through a video, that sort of thing. Um, if it checks out, like if it's still a deal in the investor's eyes, then we schedule a time to actually go out and put eyes on the property and look in the crawl space in the attic and all that stuff. Um, and do you know, a full estimate from that point and we always recommend to still get an inspection, right. You know, it's easiest and best 400 bucks you'll ever spend. Cause even six, three, I'm not lightweight. I'm not going to crawl through the crawl space. So that's what the general process looks like. So please don't just send me 10 addresses and askmme to go look at them all and we can start sifting through some of them. Cause you know, probably 50% of them after that first phone call, it's like, well that that's not a deal. Um, okay. So we can knock those out, out, out of the equation quickly.

Justin Bogard:

Fantastic. Well, Patrick would surely appreciate you being on our show today for episode number 18. Uh, super. He has a lot of confidence. You're going to finish that project by next week. So it looks like you got a lot of work to do

Patrick Grayson:

We're shooting for Christmas

Justin Bogard:

Cash flowing by Christmas. Super E. You heard it?

Patrick Grayson:

I shouldnt have said that on a recording.

Justin Bogard:

It's out there. It's out there now, but yet Patrick, you've been a great guest today. We appreciate you being on. Thanks for shouting out your information to us and Elizabeth, do you have any closing thoughts for today? I would say while it's still far before the snow flies just enjoy, get out as much as you can with the sunshine. Absolutely. Alright everybody. I'm Justin Bogard from BrightPath notes and I'm Elizabeth with Elizabeth Maora. All right guys. Don't forget to check out this video on our YouTube channels. BrightPath notes or Elizabeth Maora's YouTube channel until next time guys. See ya. Thank you. Bye. 2 wealth show was produced by Justin Bogard and sponsored by BrightPath notes and Elizabeth Maora.. Thanks for listening and watching for our show.