Own the Outcome with Tyler Deveraux

Do You Lack the Courage? With Brian Davila

• Tyler Deveraux • Season 2

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Brian Davila, a leading figure in the real estate world, joins us for a powerful conversation on his transformative journey - from casino tables to real estate expert. On this episode, Brian dives into his real estate setbacks, which provide invaluable lessons on resilience and personal growth. From misjudged investments to candid discussions about faith and personal responsibility, his journey highlights the importance of owning one's outcomes and learning from failures. Don't miss it!

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Tyler Deveraux:

All right, aloha and welcome to Own the Outcome podcast. My name is Tyler Devereaux and today I'm here with Brian Davila. Is it Davila? Is that how I say it?

Brian Davila:

Yep.

Tyler Deveraux:

I should have asked you that in the very beginning, man, but I'm glad because it means I've been saying it right this whole time. So, brian, thanks so much for being on the show. Brother, excited to have you here and my first lead in question those of you who don't know Brian. First off, you're in for a treat. This dude has a wealth of knowledge in the business and real estate space. We'll definitely get into that, but, most importantly, anybody watching on YouTube. Can we just talk about your beard routine Because, oh my Lord, that is a beautiful beard.

Brian Davila:

Oh yeah, I'm glad you like it. Everyone else hates on it on YouTube, but I love it.

Tyler Deveraux:

Nah, hey, they hate it because they want it, bro. Okay, thing's no joke. How long have you been growing your beard?

Brian Davila:

out. It's been more than a year now, so more than a year now, so more than a year, a year, that's a year. Yeah, no routine.

Tyler Deveraux:

You're a dick yeah, that's a hell of a beard for a year bro yeah, yeah, no, it's, yeah, it's it, it's.

Brian Davila:

It's easier than shaving, so I like it I do agree with that.

Tyler Deveraux:

By the way, 110 agree with that. But do you so? Do you because it's in good. So do you because it's in good shape, like it's long but like it's in good shape. So like, how often are you getting it trimmed and cleaned up?

Brian Davila:

Nope, never. I think I've gotten it cleaned up once because we had like a big event, but besides that, nope, I don't even care, I don't. I barely like wash it, so I just left that's gross first off, okay, so let's talk about that later, dude, that's sick bro.

Tyler Deveraux:

Your beard is legit, for sure it is legit, I love it. Your wife does she like it or hate it?

Brian Davila:

uh, I think my wife likes that. I have a beard but she kind of wants me to trim it and I'm just like dude, I'm letting it grow right now. I'm just gonna see what happens I love that.

Tyler Deveraux:

That's dedication, man. That's dedication because it is hard to get, you know, to let it get a little bit scraggly, but looks good. That's not what we're going to talk about today, though, but damn, your beard is is I would love to know about your journey within the space, though, because you've been in the real estate space for a long time.

Tyler Deveraux:

Also, social media presence is phenomenal, so we can definitely talk about some of that as well, but let's just talk a little bit about your journey. How you got into the space. What did that look like for you as you started?

Brian Davila:

yeah, yeah, so I mean, I started real estate in 2016. Um, right before that, I worked at a bar at the palms and then I worked at a casino at the mgm, and then um got my real estate license and did did realtor work for a few years and then I met my partner. Now His name is Ryan Pineda. I met him in 2019. He taught me how to start flipping houses, started flipping houses and then I've been flipping houses and wholesaling and buying rentals since then. Um done a few hundred transactions and um, then we did an education company together. Um, so our real estate companies were separate, um, but um grew a company called wealthy investor to over $10 million a year from nothing. Um, and yeah, now we're here and now I do a little social media, still focusing on real estate, and that's about it and spreading the gospel. That's it.

Tyler Deveraux:

Yeah, I love that you guys do that. By the way, ryan's been on the show. Definitely know Ryan, and here's a question that I actually wasn't planning on asking you, but I think it's super valuable for people to understand. You came in, you met Ryan. Ryan started to teach you the business. How did you get to a point where you became business partners right With that person? Like, what did you do?

Brian Davila:

And don't tell me nothing, because it was something like what separates you, brian, from the rest, of what made you elevate to that- yeah, well, it definitely isn't nothing because, like, someone successful is not going to partner with someone for nothing, um, I think one, uh, I mean, obviously we built a good friendship and then two, um, I've always produced results. So I didn't come in as a partner, I started off as like a manager. And then, you know, I think when we started, the business wasn't even making seven figures I don't know the exact number, I don't remember the exact number and I don't want to quote it but we got it to seven figures a month and then it went from a mastermind in his living room with seven people to these wealth con events where there's, you know, a thousand plus people every 90 days. So definitely, just, you know, results driven. And yeah, that's about it. Nothing, nothing, nothing. That, uh, nothing. That is extraordinary.

Tyler Deveraux:

But it is, though, because you had a bigger focus, right Like, results speak for themselves. Exactly yeah, there's not very many people who will come in and, like you know you started as a manager or whatever there are very many people who will do that. It's like pride gets in the way of the ultimate goal, the ultimate journey. You know it's like everyone's growing and building, building together, and as you continue to produce value, value will come back to you, you know yeah, yeah it's been fun to see what you guys have built.

Tyler Deveraux:

We started, you and I started about the same time. I started in the you know, multi-family space around 2015 and to see your journey and dude ryan's journey, your, you guys's journey just you guys just blow up. Over the last few years have been, it's been awesome, but it didn't just happen.

Tyler Deveraux:

Over the last few years, you guys laid a groundwork and a foundation to be able to get there and one of the main things that I want to talk to you about is it's certainly you know the skill sets within the business, but what I love about both of you is you balance, balance family and business. You see so many people go all in one direction or the other, so how do you do that? Do you have strategies, or how do you balance family, work life balance, and is it a balance?

Brian Davila:

In church, yeah, so, right now. So I believe that you know, first, like number one, comes your relationship with God, specifically being a Christian right, specifically believing in Jesus Christ and, you know, feeling the Holy Spirit and going to church and doing all those things. So that comes number one. Why? Because if you're rooted in that, it will bless everything else. So a lot of people they believe that work and money is their God.

Brian Davila:

So first they wake up and then they write affirmations on how much money they make and then they look at their goals and then they go to work and then they work, work, work, and then they go home and then their family struggles or whatever the case may be, and not always, but a lot of people. So if you're rooted in Christ first, if you seek the kingdom first, then it will bless everything else and you will have good success. So when you talk about balance, it's like okay, what are you seeking? Are you seeking monetary success or are you seeking good success? So good success is blessed by God. Just success is just a fleshly worldly thing. So just having the right principles and perspectives on what you're doing, um, in the very beginning, and then it will trickle into everything else.

Tyler Deveraux:

So good, bro, a set of values, man. It's a set of values and standards that you live by. Yeah, it's also. Can you give an example by chance, like can you give an example of I don't know, maybe even a challenge or a situation or whatever? Just an example of why say it again?

Brian Davila:

No, it's just to be clear. I don't believe it's a standard or a value. I believe it is a relationship with God. I don't have a list of values, core value, standards. I have a relationship with God first, a relationship with God first, and because of that relationship I address every situation a certain way.

Brian Davila:

So an example of what you were saying was you were asking for an example. An example would be I had a team member who he's going through life, right, life's happening to him. He's struggling, he's producing, he's producing deals, he's doing great work-wise, but culture-wise and self-awareness-wise, struggling. So he comes into my office. You know he's crying, he's expressing his feelings. If I were fleshly I would be like, dude, you got to get over it. Like, come on, dude, like this is the work. Like take yourself home, but first I need to. As someone who is trying to be the best Christian they can, I got to take care of him first spiritually and make sure spiritually he's okay, before I address the problems at work. Because, like some of his personal stuff was addressing problems at work, because, like some of his personal stuff was addressing problems at work. So, instead of what the world would do is like, okay, this guy. Argued with this guy as an example. We're gonna write him up and he gets a three-day notice and if he doesn't fix it, he's done. Instead, I'm like, hey, you know what? Like, what's going on, let's figure this out. Let's pray for you. Let's figure this out. Let's pray for you. Let's figure out what is causing the outside turmoil in the office, because it starts within. So, like, let's figure out what's going on in here first, because that will fix the outside.

Brian Davila:

So it's always like people try to treat the symptoms. They're not trying to treat the root of the problem. So if you are not having balance, it's because you're not addressing the root of the situation. So if you are not having balance, it's because you're not addressing the root of the situation, which is usually your heart. So if your heart is filled with greed, then you will lack able to do balance, because your heart is more focused on money and success and awareness or attention or whatever it is, rather than your wife, your kids, your husband, your X, y, z, your health. So that's usually like the main root is usually the heart of everything. Does that make sense?

Tyler Deveraux:

So say that last part again. The main root is the heart of everything.

Brian Davila:

Yeah, the main root of all your problems is your heart. Wherever your heart is is where things are going to thrive. So if your heart is on making money and I've been there before where I'm like dude, I just want to make money, I want to make a million dollars, I'm willing to pay whatever it takes to make it I've done that too. Like I'm not sitting here holier than thou, like I've never like put work before my family. Now you know it's good, but before I was like dude I'm. I'm like Tom Brady. Tom Brady said hey, football is number one and my family's number one a. Like they're equal. Well, now it's like okay, god is first, and then God will tell me and give me convictions and and words and ideas on what I need to do, and then everything else will come after.

Tyler Deveraux:

Yeah, I love that bro. I absolutely love that, like that's, that's that is operating in alignment, you know, and the the amount of confidence that comes from knowing that that's where you're operating from. You're not worried about saying the exact perfect thing, you're not worried about doing the exact perfect dude, cause you just know that you're doing your best with the biggest intention, exactly, you know, in yeah.

Tyler Deveraux:

Okay. So one more question, then we'll move past it, which is what are some challenges you've seen with that Right, and what I mean by that is like that example that you gave. Okay, this is somebody that's within my organization. It sounds like maybe they were underperforming.

Brian Davila:

let's say they and that's in that scenario they were performing but they weren't getting along with other team members here. So that's why it's harder when you got a performer that culturally a struggle, versus like a non-performer who is not culture, that's easy to address. But when someone's performing you're like dang, like dude. Now I got to like figure this out.

Tyler Deveraux:

Okay, so how did you so? How did that situation go Like, if they are, they still there?

Brian Davila:

Number one Number two, if they good, Okay.

Tyler Deveraux:

So if they didn't change now, what do you do?

Brian Davila:

Well, that's a great question. So I think, if they don't change, well, first of all, I believe they are going to change, but great answer to that, by the way yeah, yeah, yeah.

Brian Davila:

So, first, I believe they are going to change. Secondly, um, struggles you ask like what were what are struggles with? Doing it this way? Right, struggles is listening to god, because I believe god wants us and you know this is I'm sorry I was turning into two religion of a thing but I believe God wants us to be patient. So my flesh will be like dude, work from home, dude, fix it, or you're fired Like dude. Let me come down on you and hopefully fix your issues with fear and anger.

Brian Davila:

So, like the struggle is and it's hard is to be patient. Like patience for me is hard, that's like, actually it's like hard. Some people are patient. I'm not. So, being patient, being faithful, I could easily cut them off and then go hire someone else, but I chose to bring them on. I'm, you know, chose to be a leader and you know, as a leader, it's easy to just let people go whenever you feel like it and get a new body. But, um, yeah, that's actually hard for me. I don't know if you have you struggled with that or what's your experience with that.

Tyler Deveraux:

Letting people go, yeah, very much so. Yeah, when you say leave with your heart. One of the hardest things is to realize that sometimes for me I'm saying for me has been sometimes a separation, like going different directions, is what is best for both people. You know, and that's challenging for me because I love people, bro. I love people and so you know I believe the same way you do that it's like it's not that it's my job to change them. It's not my job to change anybody. It's my job to be an instrument in God's hands for the betterment of all those around me, whatever that means.

Tyler Deveraux:

You know, sometimes my you know you call it fleshly my perspective, my fleshly perspective of that may be different than what God's perspective is. And so to be in tune with that of like hey, god sees a bigger picture, like, and I look at, I believe, people come into your life and out of your life at different seasons for different reasons, and to just be grateful for that, you know, grateful for the season you had together, also encouraging and loving and supportive, if the season is, you know, some sort of, you know, going a different direction, not to harbor ill will, not to harbor like man, I can't believe that they made that decision and just know that, like that's their decision to make and that you want to, you know support them and you know encourage them in that decision, and I think that that, ultimately, is abundance, and I think that abundance is is of God. So, but yeah, I've definitely struggled with that. So, yeah, all right, well, dude, love this direction. So I number one, you said, is God.

Tyler Deveraux:

And then I the ultimate question, the first question was just how do you balance the life and family? And you said, well, number one, it has to be God. And then you were going and I interrupted you, yeah, yeah, yeah.

Brian Davila:

So number one is God? And then, if it is, if that is true, then I feel like you will get um clear, I guess, leadership from him, like okay, what's appropriate, what's not appropriate? So like, practically, so like I don't work past five, um, I don't work on the weekends, um, I definitely don't work on that in the case.

Tyler Deveraux:

That's crazy. Never like that's like you won't do it.

Brian Davila:

No yeah, no. So that's how long has that been the case? That's crazy Never.

Tyler Deveraux:

That's like you won't do it. No, yeah, no, that's Ryan too. How long has that been?

Brian Davila:

the case A few years.

Tyler Deveraux:

That's awesome.

Brian Davila:

Yeah, it's been a while. It's been maybe four years, maybe five, six years. It's been a long time. So don't work on the weekends. I don't work on the weekends. I don't work past five. I mean, that's pretty, like you know, holidays I don't really work. So my first priority it's easy to balance if your first priority is not work, like my third, my priorities go God, my wife, my kids and then work. So it's easy to balance when your work is fourth on the list. It's hard to balance when work is number one Cause before I was working on the weekends, I was working past five.

Brian Davila:

I was like willing to sacrifice everything for money, but after I think it was like 2020, ish, 2019 or 2020, I was just like dude. I got to like stop this. And now it's easy. And now, like everyone knows, like dude, people get pissed at me when they text me or they keep calling me after five.

Brian Davila:

There was a realtor I was working with recently on a deal. He called me at 530. I answered I was like golfing. And then he called me like an hour later. He's like hey, I sent you the contracts and I was like I'm going to sign it, I promise. And then he called me the next morning at like 830. And then I was like, hey, like I work nine to five, so I promise, I promise when I get to the office, I promise I'm going to sign your thing. And then he, he went back to my acquisition manager and was like this guy did it.

Brian Davila:

It's like, bro, I don't care, like no one, I'm not bending and it's not even just because like, oh, like my, my wife gets everything from five after. It's just like, bro, that's my time, my life is not work and I don't care enough about anything. There's nothing ever that important. Even Alex Hermosi talks about it. It was like, dude, if my gym's on fire at 9.00 PM, why are you calling me Call the fire department? Is on fire at 9 pm, why are you calling me call the fire department? There's no reason for anyone to need me at outside of work hours because escrows, escrows open nine to five, nothing's closing. You know, like, if someone needs, if someone on my team has like honestly, they don't even text me past five.

Tyler Deveraux:

So I can't even like say that that ever is like an issue yeah so that's how you balance it you just I agree with that though, and you said it wasn't standards and values, but that's a standard, like you just set the standard. You set that, the tone of like what you'll really do, what you'll accept, you know, and then you either do that or you'll accept whatever life gives you.

Brian Davila:

Exactly it is.

Tyler Deveraux:

Yeah, and it is challenging man Like, especially in the growth phase of you want to just go after everything, but you will burn yourself out quick and once again, I very much know that from experience. You just get burnt out. But if you just set a standard, people will just realize that that's what it is and they'll work within it. You don't lose opportunities. Yeah, in fact, you gain respect. In my opinion, you gain people's respect because you actually value you yourself, your family, you have priorities, right.

Brian Davila:

Yeah, and then it also forces you, as an entrepreneur, to set things up. So I have salespeople that they could work past five, they could do whatever they want, but I, I'm pretty sure sometimes they work past five. I'm pretty sure the guy that is doing operations, he'll work past five. So if something needs to happen after five or on the weekend, it will get done, but it won't be. It won't be done because of me. And if you set those standards or those you know boundaries, it'll force you to address the problem where, hey, if something needs to happen, who's going to do it? It's just it's going to get done, but it's just not going to be me.

Tyler Deveraux:

Yeah, yeah, yeah, no, dude, and that's what you've set up, like my boundaries are different. I definitely will work on, you know, the weekends. I'll definitely work past five. One of the things that I learned and this is like a couple of years ago that I really put this into place is what you just said, like scheduling and putting the family priorities first and sticking to those, because if not, listen, none of this matters without them. You know none of it, none of it, none of it matters. Like you take everything away from me. You know financially, businesses, whatever. Listen, I still have the most beautiful family and I have a beautiful relationship with God, like you mentioned, which helps me have a beautiful relationship with myself, and I know that I can recreate or do anything, but, on the flip side, I have all the success you know, whatever worldly success, wealth but without the family, without those kind of I mean shit dude.

Brian Davila:

No, thank you. No, thank you, yeah, and some people are willing to pay that price. So that's why you just have to know are you? There's plenty of successful guys that get divorces.

Brian Davila:

There's plenty of guys that you know they lose their family and they're willing to do it. So if you are, that's okay, but for me that's not okay. So that's why it's easy for me to balance, because I know what my priorities are. And work for sure will never be. I will never be a slave to money. I'm just going to like I'll make money, I'm going to do business, but I'm not going to be a slave and give it and give up my soul and my wife and my kids for money.

Tyler Deveraux:

Yeah, one of the biggest. I learned to add my lap. I was listening to Ed, my Latin. He said something along the lines of you have to identify what you're willing to sacrifice or lose. You know like what are you? What are you willing to sacrifice or lose, you know?

Brian Davila:

like what are you?

Tyler Deveraux:

what are you willing to lose or sacrifice here? And then you, you state it clearly and then, what are you not, what are? What is completely off the table? Yeah, I think very never. People actually identify that, which makes it very murky, very gray. You have the best of intentions, but intentions get very murky. You have the best of intentions, but intentions get very murky without true, definite purpose, definite aim. Okay, yeah. So along this journey there's, you've definitely had challenges. You know somebody looks at yourself. You know somebody like yourself fit, beautiful family, great business, phenomenal beard it's like this dude hasn't. Uh, you know, everything just must go perfectly for this dude. So my question is what is the biggest challenge? This is kind of a broad question. You can choose whatever challenge, but, like, is there one that comes to mind when I say what's the biggest challenge you've faced within the business sphere? And then how did you overcome or get through that challenge?

Brian Davila:

Dude, um, dude, business wise, I would say. We've myself and you know a couple of companies have, safe has has faced like financial hardship, like crazy, or like like there's been times where I literally in the beginning of my career, had like 10 flips and I had like 10 grand in the bank account and I'm just like floating all these flips on, just like lagging on payments, um, waiting for properties to sell so then I could use those funds for other properties. So I would say, like over leveraged has like been a problem before and it freaking sucks, dude. Like when you're, when you're super over leveraged and the market shifts, so like when the market shifted in 2022, you know, when you're flipping houses and rates go from three to seven, uh, you're going to lose money, like that's the reality of the situation. So I would say 2022 was super hard where no, everyone stopped buying houses, started sitting prices are getting cut crazy, like I think you know I had properties that I thought were going to be worth 625 and then people start listing their houses for 550. And now, like I'm up, I'm like I'm not even, I'm not even worried about making a profit, I'm just worried about getting my money out of the house. So I lost a few hundred thousand dollars um in 2022.

Brian Davila:

Um, and just dealing with like okay, well, now the business model that I have doesn't even work. So like, not only am I like fighting to keep profits and get my money back, but now what am I going to do moving forward? Because you can't keep flipping houses at a rate uh, the same rate that you were when house prices are good, and it's the same with multifamily. When people, when rates went up, you can't just go buy whatever apartment you want just because there's upside, like the business model completely changes. So you got to learn a new model and then you got to get out of the current situation that you're in.

Brian Davila:

So I know, with house flippers and multifamily people that got wiped out when interest rates went up in 2022. So I would say that was like the hardest. So what did I have to do? I had to like sell everything and then I got deeper into wholesaling and then I went deeper into education so that way I could use those funds to keep the house flipping business afloat. So I would say that's that was definitely like the hardest time in like my real estate career.

Tyler Deveraux:

And when you look back at it, um would you? Do you consider that now a blessing, or have we not reached that point yet?

Brian Davila:

No, I mean, I knew. I knew it was a blessing because I luckily I was in real estate. I think it was like 2019 or 2018 when interest rates rose in September and it got really hard. So I knew that was going to happen. Um, so I actually was.

Brian Davila:

I should have paid more attention, because the Fed is like, hey, we're going to raise interest rates, hey, we're going to raise interest rates, hey, we're going to raise interest rates, and then, when they raised it, I'm like, holy crap, they raise interest rates. So I should have been paying more attention. But I feel like at the time, everything was just going so great so it was just like, dude, you got to make the money while you can. So I, I, I, I I'm actually very proud of how I handled it and I'm proud I only lost a couple hundred thousand dollars, cause I know people that literally lost everything. I know people that are still struggling from the properties that they bought in 2021 or 2022, um, multifamily and uh, house flippers. So I'm not disappointed or at all. I just feel like understanding the game that you're in Um, if, if you understand, if you flip houses, you're going to lose money at some point, like no one just bats a hundred, uh, flipping houses, like it just doesn't work.

Brian Davila:

Right, like, and not every multifamily property is going to pencil out how you thought it was. Because if every business plan was a success, then did we all be rich? Because all of our business plans always look great until you buy the property and then you're like okay, rent's not as high as I thought it was. These repairs are not as low as I thought they were. Okay, I thought the lender was going to refinance me at this at this rate, and actually came back higher with a higher loan amount.

Brian Davila:

So real estate investing is extremely risky. You can make millions in real estate investing. You could also lose millions as a real estate investor. So as long as you understand that going into it, it won't hurt as much. And then also, if you're running, if and luckily I was in year I was in real estate years before the interest rates went up and down, so I had a very firm foundation on how to do real estate.

Brian Davila:

Where the people that came in in 2020 and 2021, they had fake success because everything was making money. Almost everything makes money. When interest rates are at 3%, everything kind of looks really good when interest rates are at 3%. You can make mistakes. You could underestimate rehab. You could underestimate all these things.

Brian Davila:

But once it's at a stable or a flat market, that's when you see who actually knows how to do real estate and who doesn't. And the people that didn't, they actually weren't investing, they were gambling. It was good, it was smart gambling. When percentage of you winning is high, yes, it's very good to take advantage of that. But when you don't actually know what it is to actually run comps and actually take into account CapEx and vacancies and all these things, it's hard. Real estate investing is actually hard and it was easy for a minute and now it's hard. That's why you see less and less people promoting multifamily. You see way less flipper influencers. It all went down because now you actually have to learn how to run these things. It's not just banking on money from the government.

Tyler Deveraux:

Yes, oh, bro, you nailed that answer. It's so true. I used to always think so. I've taken 17 multifamily deals, full cycle, you know, bought, carried out the business plan, exited. Two of those, though, have been at a loss. The other 15, 15, good, two at a loss and those two at a loss. I learned more from those two than all the other ones combined, dude, because those two make you hyper-focused and hyper-aware of, well, mistakes and tendencies that you have and things that you overlooked, and I used to always think, man, I will never invest with somebody who's lost money. Now I realize somebody who's never lost money, somebody who has lost money and they're still in the game. That's a resilient son of a gun dude. They're resilient. Somebody who hasn't lost money. They're not even in the game yet, cause they don't even know what that means, like they just haven't been in a long enough. If you've been in a long enough, you've seen challenges, dude, you've had struggles, you've had trials, and or you've had them and you're no longer in the game.

Brian Davila:

Yeah.

Tyler Deveraux:

Why did you lose on those two? So it's very similar to what you said. So these apartment deals, we, so we actually exited a big portfolio and I love this question, by the way, we exited a big portfolio in 2022, right before interest rates went up so up. So here's what's crazy. Think about this we exit $99.7 million of real estate 2022, a bunch, but right before rates went up. And why did we do that? Because we're like dude, rates are going to rise. I think that we can exit now at the peak and exceed returns in year two or three that we projected in year five, like, let's do this, we exit and then, literally, we bought two properties, two big apartments, on the exact same day, and those are the two that I lost. And those two were things that we talk about like a standard. These are our rules of investing, and if you don't have rules of investing, well then you're gambling, you're not investing Like you should have rules, and we had rules and we didn't abide by those rules. It's just crazy.

Tyler Deveraux:

We, we played it perfect with the exit. But then we rolled into things that we dude. You know there's going to be headwinds with anything, but we we bought things that knowing that there were going to be headwinds with anything. But we we bought things that knowing that there were going to be headwinds, but still not projecting those headwinds forward. You know I call it shock the variables. Like look at all the variables and you have to shock them and meaning at what point does that variable take the deal out and make it not profitable? And you have to once again, real estate's a risk. Our job is to mitigate the risk. So you have to look at those and like, okay, we got to plan for the worst, hope for the best, cool, but plan for the worst. And that was not what happened. We had way too optimistic of a viewpoint going into those.

Brian Davila:

And pretty much everything had to pet. What was like specifically, like what specifically about? Those properties were different than what you usually buy so I'll give you one example from one um.

Tyler Deveraux:

Number one was the. The plan, like our business plan, is typically three to five years. Three on, like the short, short end, right like that we actually project and plan for. I may exit earlier than that, but I'm not planning on exiting earlier than that. We were planning on this one to do a two-year refi Refi in two years. Remember, we just exited, knowing the interest rates were going up. We're not knowing, but having a good understanding that they're probably going to go up because they're at frigging historic lows. I didn't think they'd go up as high as they did, but they did. And so we did a two-year plan to refinance in two years and we did an adjusted. We had a bridge loan which has an adjustable rate Well damn. And we bought that in June of 2022.

Tyler Deveraux:

So right after interest rates had risen a little bit, we had rate caps and everything in place there, but interest rates rose so quickly that it almost wiped that out anyway. And then we put in a property management company that we did not have a relationship with. It's another mistake. We did not vet through other people. Another mistake. We just went with our gut with them. Not a good idea, you should vet out your property managers. And so now what happens? Six months in, we have to fire our property management company. So now our whole business plan is behind. Six months in, we fire them, we bring in another company. That company AMC, which is who we usually use did a great job, but now we're six months behind on our business plan. Is who we usually use did a great job.

Tyler Deveraux:

But now we're six months behind on our business plan. Then it's in Houston, texas. So taxes double, more than double, almost tripled. And then our insurance went from 800 a door to 2,300 a door. So this perfect storm of. And then we have to refinance this year. So it was in July, july of of this year. We had to refi in a higher interest rate environment and we just couldn't refi for what we needed to. We couldn't bridge the gap and bring in investor money. It just didn't make sense. So we lost that deal. It was a very similar thing with the other property as well.

Brian Davila:

Dang when you say you lost the deal, what?

Tyler Deveraux:

does that?

Brian Davila:

mean.

Tyler Deveraux:

Meaning I gave it back to the bank. Oh, when you say you lost the deal, what does that mean? Meaning I give it back to the bank. Oh, it foreclosed. Yeah, yeah, that's for me, bro. Yeah, that's how you lose money. That's how you lose money in that too.

Brian Davila:

That's crazy.

Tyler Deveraux:

I've never talked about of course, man, I'm not hiding anything, like it is my. Those are my biggest learning experiences. Those two deals are what make me the operator that I am today. Once again, I learned more from those than any of my other successes combined, because it makes you come back to the drawing table, see what went wrong, see what went right, see where you went off course, like when you have a success and you exit for a success, it's like of course we did, we murdered it Next, yeah, I mean we don't. We look back and see what we did, but we don't go with the scrutiny that I do when I have to turn it back to the bank. You kidding me, jesus almighty? You go through a whole nother level of scrutiny when you, when you do that.

Brian Davila:

Yeah, I've had so many multifamily guys on my podcast and they never like getting real numbers from them. It's it's almost pointless having them on, because literally I'm always like, so how much money did you make? And they're like, oh, we did very well. And I'm like, okay, you said these properties were going bad. Like what happened? Well, you know, it was just tough times. So I'm like, all right, well, you're not, you're not really giving me that much. But yeah, that's crazy.

Tyler Deveraux:

That's you're the first person I've ever heard that's a separator Cause they probably don't know. Like when I look at own the outcome, well, I'll ask you first if I ask you own the outcome, what does that mean to you?

Brian Davila:

I mean it implies that you own the outcome of your situation or the situation.

Tyler Deveraux:

And and how? How do you do that?

Brian Davila:

Well, for me I mean you can't, because I believe that God is in control, but I believe how do you do that? Just by you try your best with just preparation and doing numbers and asking experts for help.

Tyler Deveraux:

Okay, so let's take it back. You can't control the outcome, but you can own the outcome. Meaning your outcome as a person is to return back to on this earth is to return back to heaven, correct?

Brian Davila:

Yeah.

Tyler Deveraux:

Now, can you control it? No, can you own it. How do you own it?

Brian Davila:

You're owning it with everything you're doing, how do you own that outcome?

Tyler Deveraux:

uh, trying your best is that a question or a statement?

Brian Davila:

no, I'm, I'm, that's my answer. I don't know that's the right answer, but perfect answer though, and trying your best means.

Tyler Deveraux:

Do you make mistakes? Do? Do you ever sin? Does Brian?

Brian Davila:

do you ever sin Every?

Tyler Deveraux:

every day. And so, like the reason that I I know, dude, that my faith is the foundation of everything that I do is because, bro, in life we need grace, and if we don't have hope and grace, bro, I don't know how people get through life.

Brian Davila:

without that, I just don't like I make mistakes yeah yeah, that's when people turn to drugs and all these things. That's why I numb it, I I feel bad for the people that are struggling and they don't have god, because I've been there too, where I was addicted to drugs before and I was addicted to pornography and I was addicted to greed. I was addicted to whatever you can think of. I've done it, um, and it's because when you don't know what to do, when you're stressed out, you're like, oh, I'm going to go drink, I'm going to go to a club, I'm going to like watch porn, I'm going to, just so you, just, you turn to. You're like, oh, I'm going to go drink, I'm going to go to a club, I'm going to like watch porn, I'm going to, just so you, just, you turned, you're going to turn to something.

Brian Davila:

That's why there was a friend that I had who, um, I was helping him and he, you know, in the Bible it says confess your sins to your brothers and sisters so you could be healed. He told me some of his sins and I was like, hey, man, like like it's kind of, it's not normal, but it's very common what you're going through. And he was like, really, and I'm like, yeah, like a lot of men struggle with xyz and just. But I knew even before he told me I already knew, because most people not everyone, but most people have they're turning to some sort of a vice if they don't have a relationship with God. Not saying can't be a great person without God, you know, even though God is still there. But like I should say, good person without believing in God, but, like most people, are going to turn to something they're not gonna tell you, but there's something there for sure, in my opinion bro, it's per.

Tyler Deveraux:

That's exact. I completely agree with that man. And now you have to ask that owning the outcome, in my opinion, is like really looking at that. What am I turning to, and is that thing that I'm turning to getting me to the outcome that I desire, or do I even know what that outcome is? Am I just freaking, drifting through life A lot of? People are just drifting. They haven't even decided what that even means. You know Exactly, yeah.

Brian Davila:

Or their ultimate outcome for some people is to make a lot of money. So they're trying to make a lot of money, they're stressed out, they're working late, they're you know, they measure themselves based on how they did that month. So when they have a bad month or they're stressed out, they go drink and then they go to the strip club. Or they drink and then they go gamble, or whatever the case may be. Like they're basing their worth and their success on money or success, and then, if that's not going well, they vice, they go to their vice, or they do well, they have a great month and then they go on and go to the strip club still. So, um, or whatever the case you could, you could take out strip club and put pornography weed alcohol babe, whatever it is, yeah, some people are like, oh well, I don't do X, Y, Z, it's like there's something.

Brian Davila:

There's usually something. Some people are, so maybe there are some people that are so holy that they don't sin, but usually there's something and if it's not God, it's probably not good.

Tyler Deveraux:

That's a great quote, right there, dude. That's a great quote, I'm going to write that down.

Tyler Deveraux:

You should, bro, you should. That's good and that's it, man. To me, the outcome is truly looking at what went wrong, what went good and how can I be better. Man, Not perfect Perfect is dumb. You're not going to be perfect, I mean, that's like such a low level expectation. So it's like just know that and see the long.

Tyler Deveraux:

Like my tagline for my education company is think bigger, and people think that that means bigger apartment deals or bigger real estate deals because we focus on multifamily investments. That is not what that means. Think bigger is here and it's long-term bigger perspective. Like literally, see the bigger picture. Are the actions that you're doing today, are they lining you up with that bigger picture? And if not, man, you're going to be miserable.

Tyler Deveraux:

Like happiness, true happiness, true peace, true fulfillment are short-term actions that are rooted in a long-term bigger vision. And that's religion 101, by the way, if you think about it, Like we do what we can today, the best that we can be, and then we'll live in heaven for eternity. And that's what it is. But guess what, when you do your best today, when you do your best today, you truly look at doing your best today. You'll live in heaven here today as well, Because once again, God is with you as you're doing those kinds of things.

Tyler Deveraux:

God doesn't. God doesn't look down at you for for messing up no, that's not how it works. God doesn't look down at you for for messing up no, that's not how it works. Like I look at my kids, bro, my kids mess up, make a mistake and then recognize it and correct it. There's a few times that I am more proud as a dad than when they do that. It's like it makes me even connected to them even more. I love them even more, you know, than if they were to just do everything right. It's like cause I. I look at that and it's like man. You continue to do that and that's how you respond to, you know, to challenges to something that didn't go right, Instead of making an excuse as to why it didn't go right. You're going to have an amazing life, both here and in eternity, Right?

Brian Davila:

Yep A hundred percent.

Tyler Deveraux:

Yeah, I love the conversation, bro, and I love the the route that it's went down. And my last question to you I know that I would be respectful of your time and this is a whole different direction than I was thinking of going, but, dude, it's gonna be so valuable. In fact, first off, it will be, bro. It'll be so valuable for those who are listening, because it's real life, real life, man. It's real life.

Brian Davila:

Yeah, I think most people. What I always say on my show is most people don't lack information, they lack courage and for some people they just they don't like information, they're just lacking a relationship with God and they think it's money. They think like dude if I had a bigger house, dude then and I've been there, like I have a I have a story that I tell at WealthCon, where I was sitting in my paid-off house. My house was paid off. It still is, thank the Lord, but paid-off house. I have a beautiful wife. My wife is legitimately beautiful. I have beautiful kids. I have two golden doodles. I have three cats, I have a Mercedes Benz. I have watches. I have three cats, I have a Mercedes Benz, I have watches, I have this I'm speaking with on stages, I'm partners with Ryan Pineda, my social media is doing well, and I was literally living in hell mentally. Mentally, I was literally so anxious that I'm like, should I go to work? Am I working hard enough? But I want to be at home with my kids, but that but like all these racing thoughts all the time and I thought I'm like dude, like I need to buy a bigger house. My house at the time was like 3700 square feet. I'm like if I have a bigger house and like a gated community and I have a home office, then I think I'll be happy. And then I caught myself. I I'm like what the fuck? What are you talking about? Like I have an office and I do live in a gated community, so what is happening? Like why am I thinking that I'm missing something on this earth and then when I get that thing, then I'll be happy. That's not how it works. That's literally not how it works, and it sucks because most people they lack courage or they lack a relationship with God. Let's talk about the courage part. There are people who are Christians or not Christians and they know what to do. They know how to analyze deals, they know how to raise capital, they have a mentor, like you, but they're just scared to take action because they're scared to fail, or they're scared to pick up the phones, or they're scared to hire, or they they're. Some sort of fear is stopping them and it sucks. But those two things are usually like, when you get down to it, what people are missing? Because the information's online, there's no secrets anymore.

Brian Davila:

If you want to flip your wholesale real estate, you don't have to pay a coach. You could. I've asked chat GBT. I was testing chat GBT. Chat GBT gave me a workout plan with a diet specific to my age, my health, my goals, all these things within a second. So anyone can figure out anything with chat gbt right now. You don't need coaching. So it's just that's. That's what I'm like. Realize, I've always known that, but even more now as I play with chat gbt and other things where I'm like dude, like the information's out there, you know, but, um, you just need courage or you need you. You know God, and sometimes, when you have God, you can still like courage.

Tyler Deveraux:

Yes.

Brian Davila:

Yes, I don't know that is so gold.

Tyler Deveraux:

I think it's absolute gold, bro, because I look at the times that I've made the biggest mistakes, and it is that it is. I've known what to do, but I didn't know what I knew I should do, for whatever reason. Maybe it was because I was nervous about ruffling someone's feathers, maybe it was because, whatever it was, and when that is the case, you know, disappointment is in the near future. That's it. So good, bro. Thank you so much, man, for taking the time. I'm, like literally so excited to share this episode.

Brian Davila:

How can people?

Tyler Deveraux:

get ahold of you, by the way.

Brian Davila:

Do they go to Instagram the Brian Davila or check out the podcast Wealthy Investor RE. We'll have you on next time you're in Vegas. We'll love to have you on the episode and, yeah, I'm excited to see what grows from this relationship. I'm glad we met.

Tyler Deveraux:

Yeah, me too, bro. Me too Very excited and impressed, brother, impressed your journey, impressed with who you are as a person and appreciate you sharing that with us here. You know just once again bringing to the forefront and having the courage to do that. I've loved how you and Ryan have done that. Uh, it's been powerful man, and I know that that probably doesn't come with headwinds, but it doesn't matter because you know the bigger purpose.

Brian Davila:

Yeah, it doesn't matter at all.

Tyler Deveraux:

So to everyone else out there man, listen, go share this episode, connect with Brian, go to their event with the wealth. Wealth con is men. It's amazing how every 90 days, you do those. I do a big one. I do a bunch of events, but I do a big one every year and the fact that you do a big one every 90 days, it's literally so much work that goes into those. I've heard a bunch of people in my network go to that event. They absolutely love it every time. So go to the event, pick up some tickets, connect and then go share this episode with somebody who can find some value and then live always with Aloha Peace.