I spent 24hrs with a blue collar millionaire

Hey everyone, this is a very special episode. It's meant for YouTube. So I know you're listening to this right now on like Spotify or Apple Podcasts or whatever, but go to YouTube right now and watch it. This episode is where I go with a guy named Mark who I found on Instagram and he restores brownstones. And I asked him everything about his financials, how the business works, but it was a very visual thing. So we decided to make it a video. So again, go to YouTube or you could just listen to it right now. You're probably at the gym or on your way to work, but hope you guys enjoy this episode. Let us know in the comments if you want more of this type of stuff, and I hope

you like it. This place, how much did

you spend on it again?

$2.8 million to buy it, $2 million to build it.

So that's $4.8 million in, and you're gonna sell it for— what did you say? $6.5 million?

$6.2 million.

I saw this guy on Instagram the other day. His name's Mark O'Brien. He

buys and restores and sells brownstone homes in New York City. I thought it sounded awesome, and I thought, I don't want to make my living using screens all the time. I want to figure out how his life is, how his business is, the economics behind it. And so I called him up. I'm gonna spend the day with him. I'm gonna figure out all the numbers and if this is actually something cool to do. Is his business actually any good? Is his lifestyle any good? Do I want to trade places with him? And at the end of this video, I'm going to give him a Sam score. We're going to look at the economics of his business. Does it make a lot of money? 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 fucked up. I messed up. I can't even figure out how to use Apple Maps to get to where he lives, let alone build a freaking brownstone. All right, so let's go this way. Okay, so he DM'd us where to meet him. It's 11:45. We're a few minutes away. We're gonna walk a couple blocks. This guy, he looks like the Dos Equis man, like the most interesting man alive. He's got these kind of like movie star good looks. And I don't know too much about him other than he looks awesome. He has a cool job. 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. I'm excited, but I'm a little nervous. I don't want to look stupid because I know nothing about like construction. I'm wearing Red Wing boots. But the reality is I'm cosplaying. I'm a yuppie guy who's trying to dress like a blue-collar guy. So like, hopefully he doesn't call me out on that, but it's the truth. Mark O'Brien, what's up, dude?

Sam, what's up, my man?

Hey, man. All right.

Nice to finally meet you.

Yes. We're going to start with this place. So where are we now? This is your house?

94 Bank Street. It's a project. But I'm living in it. So look, I usually buy things that have rats in the cellar and holes in the roof and water damage everywhere, mold and problems. But this one, when I walked into it, I was like, this is cute. How much did you pay for it? It's 180 years old.

It's 180?

180 years old. I mean, it's super old.

How much did you pay for this place?

$5.5 million.

How much money are you going to have to invest in it?

At this stage, closer to $6 million.

How much can you sell it for?

$17 million.

Can we see it?

Yeah, let's go in.

Hey, really quick, guys, if you're interested in this and if you're interested in that blue-collar lifestyle, which frankly I am, that's why I'm making this video, and you want to start a business in this space, we have put together this thing called a Blue Collar Business Database. It's a database with hundreds of different business ideas where you can use your hands, you can start immediately, lots of different metrics about why the business is potentially interesting. And so if you're interested in that, click the link below, totally free. All right, now back to the episode.

So when I walked in, These floors were shiny. I just, you know, it just glistened. I thought, I love the floors. I came in here, I love the fireplace. And speaking, we talked a little bit about buying the old furniture. Like, I'm really not fancy. I love just stacking my— I love living in the West Village, which is super fancy. But I bring my— people are like, you bring all that firewood in? Like, where are you gonna put it? Like, this is the beauty of living in a house that's banged up. This is insane.

That's right.

So when do you think this will be done, this project?

So it's been 2 and a half years that I've been waiting for permits. You know, it's landmark.

Do you just sit and do nothing?

No, it's, it's a lot of work of architects, engineers getting soil bearing, bearing tests. You know, they've got to break up the, the foundation down below in the, in the cellar, and I can show it to you. And then they want to see Where is my neighbor's foundation? Where's the footing? Where, where's my footing compared to their footing?

But it's like, uh, just getting the permits and doing all this regulatory stuff. It seems like that's like the thing that, uh, like when people talk about like products that they're gonna sell on the internet, they think, oh, my product's amazing. I'm like, yeah, but like the reality is you have to be a good marketer. 70% of the value is like, are you good at like buying ads online? With this, it's like, well, I can build this amazing place, I can make a profit on it, I can do it cheaply, 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?

Can we see the rest?

Yeah. So, and actually, so this is funny because I'm using this as my bedroom because I moved in. I thought, I'm going to be here for 6 months, maybe a year. And then it's going to be a demolition site. I'm going to restore all this, so there's going to be, you know, plastic up everywhere and workers running around. So I'm going to just keep the footprint here and let's start working upstairs.

I don't know much about real estate, but the limited amount of stuff that I've done, it seems like everything costs way more and takes way more time.

Yes. Yeah, it's, it's, it's just out of control and it's getting worse and worse. So this is my, my desk, my office. Look at this fireplace here though. I mean, isn't that

Is this your brand?

Oh, that's my vodka brand. Yeah. Broken Shed New Zealand Vodka. I make it from whey, 100% New Zealand products, water from New Zealand, whey from New Zealand, which is—

This is a business that you own and started?

Was it a fancy house?

No, that's what no. It

was like a thing that you were going to fix.

Yes, exactly. Well, it was something that I would have had somebody else fix.

Right. Okay.

Because I wasn't building houses.

It seemed like maybe you took a project that maybe was a little bit over your head, and then you're like, well, I have to make it work.

Right. Yeah. Got it. Exactly.

And did that work?

Yes. Yeah. And that's kind of always how I've lived. So you're like.

And that was like how you got into real estate.

Yes, it was. It was. I was completely overleveraged. So I'm a big, big believer in leverage and use other people's money, the bank's money. But it's a great way to go broke and get yourself in a lot of trouble. And I know people that have done that and hasn't worked out very well.

Dude, that's like how so many great things happen, particularly I just turned 37. But like, I think about this all the time. Like, if I lost it all, okay, I have young kids. I'm now like a I have people who rely on me, and like, if this goes— it's like, it's my job to like, you know, to take care of this group. It's like the most emasculating feeling ever of like, shit, I have not taken care of the thing that I'm supposed to take care of. 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. Hopefully it's gonna be a great story, but that's like a very scary primal feeling. I have nightmares about that as like a dad. Did you, um,

I think, hey, should we also— do you want to walk out, step outside? And, um, oh geez, now the sun's coming out.

Hey, let's take a quick break. You know that feeling when strategy is done, the brief is written, everyone's aligned, and you realize someone still has to sit down and actually create all the content? That someone is usually you, and it's due tomorrow. Well, the Breeze Assistant from HubSpot can help. It works right inside HubSpot. You can draft campaign copy, blog posts, emails, all in your brand voice, all using your actual customer data. So you don't create just content, you create content that converts. Check out HubSpot.com, the agentic customer platform for growing businesses.

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. See, this is why I hate playing this game.

No, I'm not. I'm 60. 63. Oh, okay.

I hate that game.

So do I. I usually say, go fuck yourself, I'm not playing.

Your specialty, I think, is townhomes, right?

Townhouses, brownstones, restoration.

How many have you bought and sold?

So this is my third, my third big project of restoring a brownstone. So 62 Green Avenue in Fort Greene, 428 Vanderbilt, and 94 Bank Street. And then I've got other projects like in Crown Heights, one over here on Jane Street that I act as the owner's rep. So I don't own it, but I, you know, run the project.

And then before that, you were just selling real estate?

No, I borrowed against my house so I could buy another one.

That's insane that you would get into this business without knowing anything about it.

And at a big high level. I mean,

you know, how much did you— you took a loan out? What was your—

So you were in for $1.6?

Yeah, and I sold it for like $2.3 or something.

Over how much time?

Like less than a year.

So that's like a double, right? Is that a double?

It's not a home run, right? I mean, it could have been, but the next one I made a million bucks. I was like— That's a home run. I was like, I like this.

Okay, so you're like, I'm good. I'm good at this now.

So it's kind of like boom and bust a little bit.

Yes, very much. And it's funny, I mean—

Does that stress you out?

Yeah, but I've gotten good at it, I think. You know, I do a lot of yoga.

I thought it was gonna be like camera shit all day, and it's like fun.

No.

You wanna go see the grill?

Yeah, yeah, let's hit it.

This is huge. How big is this one?

Yeah, so this, this I bought like, uh, 2, 2-ish years ago. So this has taken me way too long.

What's the total square footage?

So now it's like 4,500.

Okay, so you paid $2.8 million. How much you gonna put in?

Uh, I'm putting in $1.8 million. That's turning into more like $2 million.

And what can you get for it?

$6,200.

It's pretty slim.

So check this out. This is, this is super cool. This, I just discovered it like maybe, maybe, uh, 3 months ago. I— it was— it had plastic vinyl floor over it, and I just assumed it was rotten, and I was going to sweep it out or something, and, and I pulled on, pulled on a piece of the plastic and came up and I was like, I wonder what's under there.

This would be like 100 years old, right?

Those bricks, are those original?

Yeah. So, and this also—

So these bricks are 140 years old? Yeah. That's pretty awesome.

So that's another thing, I expose the brick. So this has sheetrock on it when I buy it, so I rip the sheetrock down— or not sheetrock, plaster. But usually the plaster starts cracking and it decays against the—

So 140 years ago was 1880, right?

Yeah, yeah.

Uh, or 1890?

Yeah.

So someone made that in 1890. That's pretty crazy.

Yeah, wait till you see the cellar. The cellar is literally rock, horsehair, and mud.

Let's see it.

Is the, is the, is the way they made these foundations. Anyway, so this is the, this is a typical rubble wall, right? So you've got, um, rocks, rocks, and, and then—

I grew up in a basement like this and it smelled exactly like this.

so how much do you think this home will sell for?

$6.2 million.

What type of person would buy this house?

What kind of person?

Like, uh, what would the job be?

Um, probably like, you know, yeah, I get a lot of creatives here in Brooklyn. Like actors? Fort Greene. No, more like people like these days in social media and doing some, some kind of media business.

That's crazy. Maybe you'll be buying a $6 million home in Brooklyn.

So this is a rental basically. So you come under the stair.

Oh wow.

So there's your own, your own entrance here. And this will be like a $5,000 rental or in-law suite. So you come in, you've got your fireplace, original big open living room, kitchen, washer dryer, bathroom, bedroom.

Oh, and then we get the backyard.

Bedroom, 2 bedrooms, washer dryer, I know it's in a weird place. And then a backyard.

So when will this be done? How much longer?

I'm hoping to have this, you know, photos taken like in 2 weeks. So this will get, I'll put like a—

What does photos mean?

Like pictures and start marketing it.

But it's not gonna be done in 2 weeks.

No, but I can start selling it and start—

So when do you hope for this to be sold?

the summer.

Wow, okay. And move-in would be when?

Like September.

Oh, all right, cool. So you're nearing the end of a 2-year project? Yeah, 2 and a half year project.

Yeah. So this gets— this will get pavers. Um, do these

guys work for you or are they,

uh, they're subcontractors? So everybody these days is a subcontractor. Nobody's— you know, I'm not hiring a whole crew of people.

But you're going to come out of pocket with it?

Yeah.

Dude, there's so much risk.

Yeah.

All right, I work on, I work on a computer all day. This is my work, or this is weird, but talking to a mic.

We get it.

I want to do like,

you want to bust something? Let's see if we got something upstairs.

All right, let's see. Okay, so you probably have heard this on the podcast, but if you're running a company, I think that the number one attribute that will determine if you are going to succeed in business is how fast you can learn from others, specifically how fast you can learn from other entrepreneurs. But there's a problem with that. I have this problem, and in fact, you probably have it too. That's one of the reasons why you listened to My First Million in the first place. The problem is that finding other successful entrepreneurs to learn from, it's a pain in the butt. And so that's why a few years ago I started a company called Hampton. You can check it out at joinhampton.com.

We have thousands of members and they exist for this exact reason. So here's how it works.

If you're a founder that does at least $3 million in revenue and you make it through our incredibly thorough vetting process, we then match you and put you in a group with 9 other entrepreneurs. You meet in real life in your city once a month, and it becomes your peer group that will frankly change your entire life. It's changed mine. I'm in a group as well. And so if you're a founder that does at least $3 million a year in revenue, check out joinhampton.com. Again, the URL is joinhampton.com.

What do you think? You want us to— Yes, I'll do that. Let's get you dirty, right? My man, can we— can I— can I just, uh, can I— can I get him to cut it, or you want to break it? Can he cut just for 2— 1 minute? Just 1— 1 minute. He's— he's not a spaz. Are you all right with this?

Let's do it.

Yeah, you gotta be careful when you hit that. You know, really hold it tight. Can we cut that

all the way through?

All the way through, right? All the way.

Oh my God, this is so dangerous. So, you're hired. What was he saying about the story about, uh, getting sued for being too dangerous?

Yeah, I mean, if OSHA— if OSHA showed up—

Thank you, sir. I'm sorry to mess up your workstation, but let's see. 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, that— you should put that on your hinge profile. All right, I'll try.

Are you goofing with me?

Not nearly as good.

That's good and aggressive. You were just like, right? Because you, because you can probably do it on your skateboard.

No, I can't do that on my skateboard.

No, no, until you try.

Well, I know I can't do that. Okay, we looked at his Manhattan place, we just looked at his Brooklyn place. This place, how much did you spend on it again?

$2.8 million to buy it, and then about $2 million to build it.

So

that's $4.8 million in, and you're gonna sell it sell for $10 million. it for— what did you say, $6.5 million?

$6.2 million.

This place is awesome, around the corner from Spike Lee. What a good time for him, right? Deal of the century.

All right, thank you, very hospitable. We're gonna get our subway.

that's on a good year. On a bad year, he probably can like lose money, and it was just a lot of work for that amount of money. Second, machine— can it run without him? 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. I'm gonna give it another 3. And for moat, the biggest moat here is I don't think people are crazy enough to do this, but anyone with enough money could probably do it. There's a lot of people in the city who can. I'm gonna give it a 2. So what does that sum up to? An 8. So the business score, an 8 out of 30. All right, now let's do lifestyle. So can you have pride in the product that you're making? Do you like the people who you work with and your customers? And does it provide any freedom? So for pride, he was very proud of what he was doing. I was actually proud for him. I thought it was amazing. I'm gonna give that one I'm gonna give this one a 9. He said that sometimes he'll make stuff and like the buyer will just come in and like destroy it, which would really suck, but he still gets a 9. Now, people. I met some of his coworkers, some of the guys doing work. It was awesome. They were really cool and lovely. I'm gonna give it a 7 just because some of the people who he sells his properties to, I probably don't wanna hang out with some of those folks. And now freedom. I'm gonna give this one a 5. The reason I'm gonna do a 5 is because each property The project has an end date, so he could take some time off if he wanted to. But when he's there, like in the thick of it, it seems like Saturday and Sunday is included. He's always on the phone, like dealing with regulations and things like that. So the lifestyle score gets a 21 out of 30. All right, so here's what that adds up to. For business, he gets an 8. For lifestyle, a 21, 21, 21. You wrote a 31. Uh, for biz, he is gonna get an 8. Lifestyle, 21. Add all that up, what's that up to? That's 29. So Mark O'Brien, buying, restoring, selling brownstones, SAMP score, 29.

I feel like I could rule the world. I know I could be what I want to. I put my all in it like no days off on a road less traveled, never looking back. All

right, let's take a quick break to talk about a podcast, because if you're listening to this, you like podcasts. And what's better than one podcast? Another podcast. And let me tell you another podcast you should check out. It's called Success Story. If you like hearing about different success stories and hearing Q&A sessions with successful business leaders, or hearing keynote presentations or just checking out conversations about sales and business and marketing tactics, this is a great podcast for you. So check it out wherever you get your podcasts.