Inside a $2 Million California Coastal Home Renovation and the Challenges of Building on the Coa

In this video, we'll break down construction and talk a little bit about building homes in California, especially on the coast, and how it can be a way to grow your equity. I have one request for you. We are planning a large-scale construction from scratch in Utah, particularly in Park City. So, if you know of any suppliers you can recommend who would like to work with the channel for branding of automatic blinds, windows or flooring. We are talking about a fairly large project, we have two plots under development, and each of them will be over 10,000 square feet. We would love to chat with you and see what kind of partnership we can forge. So write to us at sta***@r*******1.com.

Congratulations again. Today we'll tell you how great building permits are California. And that's why the secret method in this video will show you how you can actually get rich in real estate. But first, let me show you what it's all about. Here is a house on a canal in Southern California. He is wonderful. I don't know, it's probably 70 degrees Fahrenheit outside right now, maybe a little more. And we're on a RIB-type boat, well, you know, the kind they use to go to oil rigs. So, what about this house? Because the boat looks great. We love this guy. But you know what's not great is a house that needs a little care, including the dock. Look at this pier. This dock right here, well, it's a dog. This is Zeus.

Say hello to Zeus. Well, that's all. The pier is in terrible condition. We have rust here. It's an old system with levers and cables, which, in principle, is not bad. You can still replace the dock with a system with levers and cables. You see, there is a lever and a cable, and there are also piles. It takes a little longer to get permission for a replacement on them. A If you want to fish, you can do it here. But as you can see, there are some great cracks in the pier. entire facility is falling apart. And the pier is falling apart. And it doesn't look good. He's covered in bird droppings. He is full of problems. The pier is old, musty, rusty and quite unpleasant. And they kind of killed or wasted, in my opinion, this space right

here, because it's clear that if they leveled this ledge, they would have room for an entire bedroom. There is huge potential here. The original windows from the late 60s, early 70s, or more precisely, the mid-70s are here. Aluminum. But the area is wonderful. The house just needs a little care. As you can see, this is our " beautiful" kitchen. Oh, the horror. As you can see, this is our "beautiful" foundation. And this is just a mess. It's okay. So, what's going on here? What do we do and what is the story here? Why do I say this old garbage is the secret way to create wealth? Many people don't like to hear this because we only like what, you know, is currently at the peak of popularity. That it is only growing.

There are stocks, tickers, market bets, things we can do on our phones. We can't do this on the phone, right? This is at least partially resistant to the influence of AI. But I will tell you exactly what makes it so valuable. We found this property on the market using our own proprietary Reinvest AI application. It was as if he was shouting to us, "You have to buy this." And we thought: "Okay, let's buy it." And we did it. But we closed the deal back in March because we bought it for cash, and that takes time, you know. We've just been sitting here for 6 months. And do you know what we did for those 6 months?

Actually, almost nothing. I'll tell you what we did for 6 months. This is due to the most valuable piece of real estate in California. Permissions approved, baby. 6 months. I can't tell them I'll be in escrow for 6 months. I can't say, "Oh, yeah, I'll try to get the permits first and then I'll buy your house." No, dude. I need project plans. Look at this. We are doing a beautiful, wonderful new staircase in this house. And they will be right there. In fact, that's where the old stairs were. And it was horrible. It was a disaster. I will now magically show you what

was here before. You can even see that crazy wall that they've already prepared. And you could see the kitchen, but in reality there was a huge wall. So now we have these wonderful drawings here. And these help us actually create value. Oh, that's actually probably the most important part. What do we have here? Ah, look at this. It is allowed to flood. City of Ventura Building and Safety Department Inspection Record Card. We have permits for this facility. The inspector was here and we got the approval, baby. This is real money, honey. California is so slow in issuing building permits that the people who take the risk of building this deserve to be compensated with extra dollars, because unfortunately, when you

have to go through this kind of construction, that's the site plan. Now we have a definition. That's it. We have an existing beam. This is a bedroom. Here is the kitchen. This is what the kitchen used to be like, right? So, we see this existing wall, the existing lowered beam, the existing stairs. That's all that was in the original plan. Well, here's our proposal. Much thinner stairs, nice modern design, knocking down that wall, putting a nice bar here, creating as much open space as possible with a great new kitchen. Permissions. A lot of people just say, "Oh, just do it without permissions." You're lost in the "aquarium".

I understand. I understand the temptation, because who would want to spend tens of thousands of dollars on permits and wait for months, doing nothing for 6 months, just for the sake of papers to provide people with housing, because no one lived in it when we bought it. Someone has to have the courage to come here, get the permits, and do everything right, especially in an "aquarium" where everyone will call you and say, "You better get the permits, otherwise I'll call the city council because I don't want to hear these saws." Saw- saw. That's how I got a piece of nail in my eye. So, if you want to make up for getting a piece of a nail in my eye as a kid, head over to reinvest1.com and you too can use our AI platform for homes along with the Reinvest terminal

coming later this year, all in one subscription. See what we did? But in any case, it's actually very beautiful too. Look at these beautiful new doors. I think our favorite contractor got a little carried away and decided, " You know what? Let's just get started. Let's get started." We have some free time, so we'll start with some basic things that don't require permissions. This is normal. That's good. This is acceptable.

You know, now we have permits. That's good. We are starting to install drywall in some areas. The problem with going upstairs is that due to the lack of stairs, we have to climb a ladder. I don't think it's a good idea to do it with one hand, and on a ladder that's too short. But here we are at the top. And we see our pier. We can explore the area a bit. You know what? You have to do it for the joke. This is probably very stupid, but I think the boss has insurance for us. So, uh, let's go. Good. I survived the easier part. It's always harder to go down. I hope the labor inspectorate won't object. Oh, well, whatever.

OK. So what do we have? Bedroom. You have two bedrooms downstairs, so it's actually a four-bedroom house. This is your master bathroom. You can see what it was like here before. Oh, interesting. I will walk where there are frame posts. I can see through it. Oh, man. Everything is fine. This gives you a little overview. Oh, look at the flowers. They didn't build like they do now, right? Yes. You know, people always say that, even though in reality houses are built much better now. So the reality is what we're doing with this property, and we'll go through the numbers. We are not only

getting permission to completely remodel the first floor, but we are also expanding the space to add a residential addition above the garage. We are in no hurry with this property, as it is a $2 million property that we believe will be worth significantly more after renovations and the addition is built. The garage is right here. We don't see him very well. Okay. Here we are. So, this is a garage. You can build a residential extension here and then rent it out as a separate apartment. Of course, we design everything so that there is at least some The dog seems a little sad that he can't go upstairs. Zeus? Are you sad that Grandpa went to the car?

Zeus, where is Opa? Everything is fine. He will come soon. We'll also replace that moldy window. So, we will have an accessory dwelling unit (ADU). We will have an updated and officially approved interior. And there's a boat here. We think this front house could be an Airbnb, but there are very few Airbnb permits, so the numbers and timing should be appropriate. Of course, you could rent out the ADU long-term or rent out both units long- term. But here's a little bit of your view. Here you have a hillside. This is Ventura, California. You see the Ventura waterfront. Is n't it beautiful? Of course, you also have a boat.

You have paddle surfboards. It's really nice to go out even with the boards, although I prefer to take them and throw them on the boat. That's pretty cool. We could rent this place along with the boat out long term or through Airbnb. Of course, one has to be very careful about taking responsibility for this. That's why we have special insurance for all this. Surprisingly, this just highlights how difficult it is to build in California, and this is where people miss the point. People are missing the main point: the harder it is to build in a certain area, the more valuable that land is. They don't even have a dock now. See? They seem to. seem to lack a berth. I don't really know what's going on there. Yes, that house has a

dock. And there is no dock at that house. Normally you apply for a permit for a new berth, which is what we did. We are replacing this pier. They'll come, and honestly, it's a day's work-to pull out this pier and launch a new one. They will pull it in on a barge and pull out the old one. But we are still waiting for permits for this as well. So for now, instead of a dock, you have this. That's the nature of California. They would rather tolerate this longer than speed up the permitting process. Although this is not necessarily the city's own fault. A lot of it is just based on the law, on how everything is written, and people are so obsessed with lawsuits now that

everyone does everything strictly according to instructions, and if something goes wrong, they just stop and say, "We have in- house lawyers." And the in-house lawyers will have their say. This is madness. But, you know, this is, of course, one of the objects of our startup. This will be, if anything, probably our only vacation rental property. And this, you know, will be a big project. I'm glad we're just getting started, but people see what we're doing with Reinvest One and what we're building and forget that we're still a real estate company, right? But it's exciting because I think when it's all done, we'll probably get about 20, maybe 25-30% of the capital out of this.

That means we'll make a good profit from this, even if it takes a year. And that's okay. We went into this knowing that nothing could be done quickly here. But that's okay. So we got a good deal, we put it in the budget, and we're really excited that now we have the permits in hand and I can go back and shoot some more videos. Let's go look at those beams. I hope that's what we have here? This is laying the foundation. So, essentially, we need to pour concrete here that will connect the existing slab to the new poured and raised slab, where we actually fasten the entire new frame with Simpson, which holds the load, right into the foundation. Now you see that some areas didn't really need a foundation. Here we have an engineered beam, and we see a

Simpson plate on our column, and this area did not require a foundation. So, we see it here. Good structural fastening. We screwed SDS screws into the beam hangers on each side. They are actually my favorites. I prefer them to nails. So I'm a big fan of them. They are not the cheapest, but that's okay. So we installed all the joist hangers attached to the new engineered beam to completely open up this kitchen. And then we come here to another 4x pillar. It should be 4x, because that's the width, or rather the depth, of the hole here. And this is our pillar. And here we have another area with a completed foundation. I'm actually a little surprised that they decided to build the foundations in this particular area. But you know, it seems like it's necessary to

hold these floor beams here. The question simply arises: why? Why is this needed here? Is this really just for ventilation? But why are we laying the foundations here? I don't know. We'll have to look at the plans for that. This is much clearer now . Okay, here's another great beam here. Beautiful, clean wood. And yes, I mean, the engineers calculated everything, right? It says here: approved. So, let's move on. So, these are the stairs. This will be just an incredible thing. We will remember the company name when the products arrive. I think that would be really cool. So these are our architectural pages, well, structural pages. That's it. OK. So, S10, points 6 and 8. We have a 4x6 beam inside the first floor, in the second frame

wall, aligned under the north beam on top. This is number six. This is this one. See? Aligned under the north beam we added. Okay, do you understand? That makes sense. And now the strange one is the eighth. . What's going on with that camera? That's it. Why is the eighth hanging in the air? So, it says: a post inside the second floor frame wall, aligned under the existing post above. See? Ah, the engineers predicted this. I'm not going back upstairs. Ha. But essentially what that means is that somewhere up there we have a rack that goes down to this structure, probably somewhere right onto that 2x beam over there. And this weight. Well, I mean, it's obviously between them, but it's possible that this

weight is actually pressing on these beams through that strut. And then it really just supports everything from below. That's why we're laying the groundwork here. Spoiler alert: although this house has a vaulted ceiling, it is not a typical gable roof, where there are horizontal cross beams or joists that hold this triangle together so that it does not diverge to the left and right. And so, without these horizontal cross beams, a center pillar is needed. And that's exactly what we discovered on Matterport when we went back to the office and took a look. If you remember, on the site itself we're like, "Wow, this is all held in such a strange place on the frame." And we

looked at the plans and were like, "Oh, it looks like there 's a rack up there." Bingo. This is how such an open- plan house is supported: about 50 % of the roof's weight is distributed over the outer walls of the structure, and 50% falls on the central pillar, which is supported by this foundation. It seems as if she missed the engineering beam beneath her. But this engineered beam is already supported at both ends and secured with Simpson fasteners. Very interesting. This is where the bathroom is located. So there may be a stand somewhere in this area. Hmm, interesting. I'll have to look next time I 'm there. But, wow, it's been a while since I've looked at the construction pages here

. Let's go take a look. This is the second floor. Here she is, number seven. This is the bathroom because this is the toilet where we were. These are sink cabinets, right? Here she is, number seven. The existing post inside the frame wall, aligned under the roof beam, remains. So, she holds the roof. Sometimes everything looks strange, and then it's like: oh, that's the reason. It's not very clear, but I think you can see how this roof is leaning? I think somewhere along this edge, and then the wash basins would be kind of right there, right? That's where your stand is. And then, oh, wow, what a surprise. That's where we're laying the foundation. That's pretty cool. So I'm excited about that. So, anyway

, take a look at what we do at Reinvest One. You know, we always remain a real estate company first and foremost, and we just do what we promise. We reinvest software profits into more profits or software, as well as into real estate. This is what we like. We are a real estate company first and foremost, and I love this business. God, I haven't participated in anything like this in a long time. So that's cool. So, do you like it? Do you have something to say? No. OK. It's beautiful here. That's right. Ready to go? Good. Okay, let's do this. Goodbye. If you liked this video, watch this.

I think you'll be delighted Why not advertise these things you told us about here? I don't think anyone else knows about this. We'll try some advertising and see how it goes. Congratulations, dude. You have done so much. People love you. People look up to you. Kevin Paffrath, financial analyst and YouTuber, Meet Kevin. It's always nice to hear your opinion.