Alexio and Jonathan Mitchell discuss their roles in the San Diego real estate market and their efforts to address the affordable housing crisis. Jonathan's company, ADU Pals, focuses on garage conversions, joint ventures, and their own portfolio investments. They emphasize the importance of cash flow, principal paydown, depreciation, and appreciation in real estate. Alexio shares his experience with a challenging five-unit project in Naranja, highlighting the value of learning from mistakes and working with experienced partners. Both stress the importance of good business practices and the potential for significant returns in real estate investments.
Introduction and Podcast Concept
Alexio introduces the podcast and welcomes Jonathan Mitchell from ADU Pals and the Skip the Lines podcast.
Jonathan explains the unique format of the episode, blending elements from both podcasts.
The goal is to discuss real estate, investing, and the San Diego market.
Alexio asks Jonathan to explain his involvement in San Diego real estate and the creation of ADU Pals.
ADU Pals and Business Model
Jonathan describes ADU Pals as a brand and company he co-founded at the end of last year.
He has been investing in real estate since 2016 and saw the need for affordable housing in San Diego.
ADU Pals has a three-pronged approach: B2C (garage conversions for homeowners), B2B (joint ventures with investors), and their own portfolio.
The business model is based on owning cash-flowing real estate and providing clients with similar opportunities.
Challenges and Opportunities in Real Estate
Alexio and Jonathan discuss the challenges and opportunities in real estate, including the importance of cash flow, principal paydown, depreciation, and appreciation.
They emphasize the benefits of real estate as an asset class and the potential for significant returns.
Jonathan highlights the importance of understanding the market and making informed decisions.
They discuss the differences between real estate and other investment options, such as stocks.
Building Systems and Scaling Businesses
Jonathan shares his experience of running a large company and the importance of building systems.
He emphasizes the need to create systems that allow for scalability and the ability to manage a business without constant involvement.
Alexio and Jonathan discuss the importance of learning from past experiences and applying that knowledge to future projects.
They talk about the challenges of managing multiple projects and the importance of having a team with experience.
Navigating Real Estate Projects
Alexio shares his experience with a challenging five-unit project in San Diego, including dealing with vacant units and vagrants.
He discusses the importance of having experienced partners and the lessons learned from the project.
Jonathan and Alexio talk about the importance of understanding zoning laws and the potential for adding value through ADUs.
They discuss the challenges of navigating the city's approval process and the importance of persistence.
The Importance of Experience and Learning
Alexio emphasizes the value of experience in real estate and how it has helped him become more effective in his role as a broker.
He discusses the importance of understanding the market and being able to provide valuable insights to clients.
Jonathan and Alexio talk about the importance of continuous learning and staying up-to-date with market trends.
They discuss the benefits of having a diverse skill set and the ability to adapt to different situations.
Balancing Work and Personal Life
Alexio and Jonathan discuss the challenges of balancing work and personal life, including the importance of family and mental health.
Jonathan shares his approach to managing his business and personal life, emphasizing the importance of work-life balance.
They discuss the importance of having a supportive family and the ability to delegate responsibilities.
Jonathan emphasizes the importance of finding a balance that works for you and your family.
Future Goals and Aspirations
Alexio shares his long-term goals, including creating special needs housing and moving to Europe in the next four years.
He discusses the importance of financial freedom and the ability to live a fulfilling life.
Jonathan and Alexio talk about the importance of setting goals and working towards them.
They discuss the potential for creating a significant impact through real estate investments and philanthropic efforts.
Sourcing Deals and Building Relationships
Alexio discusses his approach to sourcing deals and building relationships in the real estate market.
He emphasizes the importance of networking and being open to new opportunities.
Jonathan and Alexio talk about the benefits of working with experienced partners and the importance of good business practices.
They discuss the potential for creating long-term relationships and the importance of mutual respect.
Final Thoughts and Closing Remarks
Alexio and Jonathan wrap up the conversation by discussing their final thoughts and closing remarks.
They emphasize the importance of continuous learning and staying focused on their goals.
Jonathan shares his final thoughts on the importance of work and the ability to create a fulfilling life.
They express their gratitude for the opportunity to share their experiences and insights with the audience.
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