Tommy Dobczyk compares small flips (buying $100k houses, reselling for $240k) to massive development. His $9 million project adds three stories with a rooftop nightclub and café to a building, expecting the property to jump from current value to $18-21 million. The café alone projects $50-60k monthly.
Chapters
Are you in the deal room? That we got this thing on a $9 million note. Tell Mike to hold off recording his note. We can go in and get a $5 million business, or I mean, $5 million construction loan and add another floor to this thing, which is then going to increase our square footage. I can go up to 3 stories here and we'll probably take over the entire roof of this thing and turn it into a nightclub upstairs with cafe and stuff. Put an external elevator in. And so people can just go pull up out here. They don't come into this building. They literally go to the third floor and go up to the cafe and the barista and all that bullshit. So we'll be, we'll be adding another, like probably about another 9,000 to 10,000 square foot upstairs for a bar, you know, like a nightclub-ish thing. And during the day, a cafe adds another $50,000, $60,000 a month to the, to the deal. We're gonna put, you know, a third floor upstairs and do all this other stuff. And all we're doing that for is because then it'll make the building worth $18 $1 million minimum, right? So yeah, so Mike being able— with us being able to expand that— like, I listened to somebody talk about this this morning. They're like, what they— but what their business plan is, they're going out buying 2-bedroom, 1-bath houses with 2-car garages for like $100,000, and then turn around and selling them for $240,000 by closing in the garage, putting a carport, and creating a 4-bed, 2-bath. Like, so again, that's the example of like Do you work hard for $10 or do you work hard for $1 million? Does it take me the same amount of effort to add 10,000 square foot to this building as it is for that guy to close in a 2-car garage? And the difference is, is that I'm playing with $20 million and he's playing with $200,000. It's the difference between buying Baltic and Mediterranean or buying Boardwalk and Park Place.