July 11, 2022

Overlooked Real Estate Assets With Steffany Boldrini

Overlooked Real Estate Assets With Steffany Boldrini

In this episode of Cash Flow Pro, we talk with Steffany Boldrini, Principal of Monte Carlo Real Estate Investments, LLC. After working in tech sales for about 10 years, Steffany decided to dive into real estate investing. The main factor is the...

In this episode of Cash Flow Pro, we talk with Steffany Boldrini, Principal of Monte Carlo Real Estate Investments, LLC. After working in tech sales for about 10 years, Steffany decided to dive into real estate investing. The main factor is the security that having an asset-based investment provides. Today she shares her real estate preferences, how she started in the industry, and where she is going.

Monte Carlo Real Estate Investments is a real estate Investment firm focused on value-add commercial properties on the West Coast.

In this episode, we discuss:

The pros and cons of car washers
The overlooked self-storage asset class
Moving away from California and exploring other markets

Tune in if you are interested in owning other niche types of real estate!

Find your flow,

Casey Brown


Resources mentioned in this podcast:


Casey Brown  0:06  
Hey there, and welcome to today's episode of cash flow Pro, your daily real estate investing podcast and YouTube channel. I'm here today with Stephanie Boldrini, right? Gotta get it right. You gotta Casey. Awesome. Awesome. Well, Stephanie, she is here with Monte Carlo real estate investments. And we are excited to hear more about your story, where you came from how you got into the real estate world. And most importantly, she was, I think, previously or as of right now moving away from the carwash business. But we want to hear more about the carwash business because that has the tendency to at least reach out to a lot of people in this space as being the passive income thing, I guess. So anyway, tell us a little bit about yourself and what you've got going on. And we'll go from there.

Unknown Speaker  1:08  
Sure, so I'm already ZIL and have been in Silicon Valley for about 20 years, tried to leave. So I'm not one of them. And I was in tech sales for my career for about 10 years, and then decided to jump into real estate investing. And I was dating someone who was a successful investor at the time, and he taught me everything that I could possibly learn with regards to commercial investing, and have been for about three years now. That's the very short version

Casey Brown  1:47  
awesome. Swag. Good. So. So how old were you when you left Brazil? At 18? So So you you. The reason I ask is, is a lot of times people left when they're two or three. That doesn't necessarily. I mean, it doesn't do a lot for for a culture change. So we're at 18 years old, though, that's a pretty big culture shift from Brazil to Silicon Valley, am I right?

Unknown Speaker  2:16  
Definitely, far the best. We think I thank God every day that I'm here, and it's been a blessing. I'm very, very grateful to be in this country. So

Casey Brown  2:28  
awesome. Well, that's great. Well, we're always grateful to to, we're always grateful to hear stories like that, because you know, a lot of stories don't end up end up quite as positive as that where you come over here and, and yet you make something of yourself, you build a business. And then of course, wall law seems like wall All right, here we are. But we're certainly always grateful for folks like you. So tell us a little bit you so you dated a guy that was that was in the investment business, and he taught you everything that he knew or tried to. And so tell us a little bit about your let's let's start with kind of your first deal. How did that come about? And what did you do and not do or what did you do wrong?

Unknown Speaker  3:10  
Sure. So I purchased these lovely car washes, and let's see what's wrong. So I came across them because I was looking for self storage. Through my education, I realized that self storage is a really good asset class. And the seller was selling carwash and self storage together. The numbers looked great. And I said, how hard could it be to learn and manage a brand new asset class? Has a billion moving parts?

Casey Brown  3:46  
Yep. Yeah. Guarantee. The big thing that I'm about exactly I always hear about car washes is mechanical aspect. The mechanical aspect pretty much for all intents purposes, takes away the fun one of the passiveness I guess, the fun the check. Changing. So is that the current is that Korea? Is that a correct assumption or correct thing? That is

Unknown Speaker  4:27  
that is one of them? Yeah, that's definitely one of them. So,

Casey Brown  4:31  
things one of them, what are the what are the others?

Unknown Speaker  4:35  
So so not only you know, things break every day, or people take things but you know, you're also dealing with certain kinds of employees that I'm not used to personally, and they don't have a ton of goals and things like that. So it's a different world for me and you I have not figured out a way to manage these employees, obviously, you pay more to get the best people. And finally, we have some good employees now. But I decided that I don't want to deal with that moving forward. And another thing is with coins in this particular location, people, not every single person has a credit or debit card. So we still need to have the option of receiving coins. And that brings a whole nother level of not only people to take, you know, a few dollars of coins, and they really work hard at trying to open those coin boxes for just a few guys

Casey Brown  5:41  
do more damage and they do good. You'd be better off to tape a couple of dollar bills to the bottom of it and say just leave my damn coin counter or leave my leave Madame coin machine alone and take this $10 bill here and let's let's all go about our way. No, I had. Well, I had a friend of mine that was in the garden. The carwash business does say just exactly what you're saying almost to a tee. Yep. His his first issue. He bought the thing this is this is where my thought process behind the mechanical aspect of it keeps it from being totally passive. But he bought the thing I thought he I mean, the numbers were just like, yeah, stellar, like, stellar. Like they were. He was like, why isn't everybody buying this thing? So anyway, so he ended up buying the thing thing. And he said, he literally walked in his desk or walked into his office the first day. He said, He closed on like a Thursday or Friday walked into it the next day. And he said, like a $18,000 pump went out. The next morning, he said he hadn't said that his desk was sitting there, all of a sudden, the carwash wasn't running, and it was 18 grand to get it fixed right off the bat, like like, and I was just like, I just couldn't really believe that I was hearing this. And then because I because he was telling me what the numbers were prior. And then of course, then I was like, Wow, unbelievable. So I just banned That's unreal, that there's just that. I guess the location, and any number of other things comes into play there. Right?

Unknown Speaker  7:23  
Yeah, and I think you're you should connect me with your friends. So we can do some therapy and Haley together. But

Casey Brown  7:31  
therapy and healing. Oh my gosh, didn't that something that is that is funny, because he just he was so discussed. And I'm talking about now I now when my conversation happened with him, he had probably owned it a couple of years by then. So I was just, you know, I was completely oblivious up to that point when he and I sat down when we were just talking just as friends. And he and and you know, another one came on the market here in town and, and I called him about it. And he said, man, he said it's gonna take somebody pretty green to buy it. But I was like, look at these numbers. He said, Yeah, look at the look at those numbers. And then, and then just go ahead and divide out the headaches. He said those numbers are divided by the headaches involved. And I was like that. And so that was a new. That was a new The reason why I bring all of this up is because I feel like it was a new. You can't really quantify some of that stuff. Like you can't, you can like somebody damages your coin machine. And it costs you $500 to fix it. That's one thing you can quantify but you can't quantify the fact that you're sitting there we're you know, like, like, you're out with a towel drying cars because you can't hire somebody you can't hire somebody you trust even with the towels. And so that's what I guess I'm getting that is it's just a it's a, it seems almost like an unquantifiable headache to some degree, plus the quantifiable headaches of the machinery, the quantifiable headaches of the theft. And it just, that's unreal. Wow. All right. We got a car wash covered. So that is why you're moving out of the car wash business.

Unknown Speaker  9:17  
Yes. So my time, the way that I quantify is my time is not worth. Think come because I've been spending a ton of time and of course, we can all get managers, blah, blah, blah, and all of that. So that's an extra expense, which in the end, it comes up to, you know, similar numbers to other asset classes. So you can figure this out if you want to put the effort in the energy. I personally decided that for those reasons, I do not want to move forward with further carwash.

Casey Brown  9:49  
And let's be honest, yeah, it's a time it's a seller's market right now and almost pretty much every asset class. I mean, it was not Not worth just put thing up and move on to the next thing and take your or is there too many wounds too many wounds that are gonna have to be linked to make that happen? Or what's what's Are you going to say in this particular one or what?

Unknown Speaker  10:16  
As I've, you know, had some sleepless nights trying to figure out how I'm gonna get. I don't want to sell because I think there are other options right now where we could build a build to suit retail, and some of them. So that's what we're exploring right now with leasing agents. And then, so when you have a tenant in these locations, you can convert that to something like that. And then your cap rate is going to be pretty low, which is great for the property value. And then you either exit origin, that, so that's what I'm exploring at this point.

Casey Brown  10:57  
Gotcha. Gotcha. Now, you said you, I want to go back to the original part of this discussion where you said that that you had that this was their self storage on the same property?

Unknown Speaker  11:11  
near it. Yes. So that's another thing

Casey Brown  11:15  
we're gonna be doing. Do you borrow them as a package from one

Unknown Speaker  11:17  
owner? Yeah, yeah. Portfolio? Correct. Okay.

Casey Brown  11:21  
So let's talk about the self storage element to this. What does that look like? And how are how is your temperament about that right now?

Unknown Speaker  11:29  
Yeah, so self storage is a phenomenal asset class, in my opinion, especially right now that in uncertain times, it does well in both good and bad times. And of course, there's are not as great and phenomenal as the as the car washes. But with regards to timing, and being able to have a good team managing all of your properties. It's a self storage, they can definitely be done remotely, in my opinion. And unless you have u haul and things like that on site, but yeah, the goal is to continue expanding on the Self Storage asset class,

Casey Brown  12:13  
in more locations, or expanding the current location,

Unknown Speaker  12:16  

Casey Brown  12:18  
Both Cool, cool. Have you investigated the when you when you talk about the remote management? Are we talking about like people can go in? Because I know there's some self storage places where you go in you rent it, they give you whatever, they give you your number, then you go to it just like everything just happens? Right there with a debit card, then then every month once a month, exactly a debit card? That's the end of it?

Unknown Speaker  12:43  
Yeah, yeah. So not only can not only can you have all of the lease done online, you can have your people download to open their doors and the gate as well. So many different things that you can do that are tech forward, that will be able, you can definitely smoothly manage this from far as long as you have good maintenance crew on site. And that you check that the property gets checked on a regular basis.

Casey Brown  13:17  
Gotcha. Okay. All right. So we're moving out of carwashes. We're expanding self storage, also short term rentals. Let's chat. Let's talk short term rentals. Is there is there a bigger piece of your story that's tied into short term rentals or what what's going on there?

Unknown Speaker  13:36  
A few short term rentals recently. It's also a really good asset class, but also a little bit of moving of moving parts, such as the car washes, but the returns are great. If people would like to learn about that, there's so many so many, many resources online videos, YouTubers learns from what is average 20 to 30% cash on cash. But you have to decide, you know, is this something that I really want to do it you it's a little bit like a hotel, so it's a little bit more moving parts, but they're still pretty good.

Casey Brown  14:16  
Well, and the big thing that I hear about that is is the is the cleaning the the manpower it takes to clean and keep them moving. Recycle them. I guess we will not even so much location or anything like that, but recycling the actual unit and getting it ready to regret. So how many of those do you own right now? Oh, gotcha. Gotcha. Okay. Now you're currently living. You said you're currently living in Silicon Valley. Is that right?

Unknown Speaker  14:49  
Trying to leave Silicon Valley? Yes. Either Florida or somewhere else.

Casey Brown  14:56  
Wow. You know, there's a lot of people leaving California From every, from every walk of life for tires like they're out, and it happens, it's so cyclical. And it's, it's so I'd almost like to stop and talk about that a little bit. What are what are some of the main reasons? And you can tell us why you're leaving your why other folks are leaving California? what's the, what's the main mitigating factor there?

Unknown Speaker  15:31  
Being here for 20 years, I have much more home, how many more homeless there are everywhere. And, and how much you know, rights are given to criminals. And, and there they in San Francisco, they started handing out drugs to these homeless people, they pay them monthly. There, there's absolutely no incentive for them to get out of it. And they're they they're not taking care of the mental issues that some people have. Someone wrote a book called San Francisco and everything that he said there is true, he actually interviewed homeless people in San Francisco, and they are on cameras saying they they make it really easy to be homeless here. And so wow, that with you know, you can seal up to $1,000 here without any consequence at all. If they just take you back to the store and ask you to return the items. It's insane. There's so many videos out there. And, you know, at some point, you're like, why am I a law abiding, taxpaying citizen? I'm the one who's a prisoner here. I'm the one who has to watch out my back. And all of it,

Casey Brown  16:51  
I guess, I guess, some of that progressive mentality. Of course, anytime the news media reports on anything, they're always reporting on the most extreme of whatever cases there is. And I think everybody at some time or another has heard about the giving of the drugs. And I guess that that progressive mentality is, like, they're almost like saying, hey, we'll give it to you rather than you having to go out and steal to get it. Or or but but then, but then you say things to so then that so then they're given it out. And then you're saying they can steal $1,000 up to $1,000? With no, no penalty. And so when you look at the combination, that it just almost seems like a toxic mixture of, hey, I can get my drugs for free. Maybe we'll just send all the all of them there, they can get them for free. And then the rest of us can do what we do without that. But that's tough, man, man, man. So that's, that's very, very interesting. So yeah, there's a lot of people leaving for a lot of reasons. But that's, that's probably the the most. That's the closest I've heard to the real dynamic issues that are going on there right now.

Unknown Speaker  18:15  
Yeah, it's, it's all true. And people are getting tired of it. You know, too many woke people here. And they really like to shove things down people's throat when most people are actually, no, this is not right. But they don't know who can talk to about this. But when you talk to people here on behind closed doors, everyone is like this is current. So, you know, I was reading Psalm 30. I used to think that, you know, homeschooled children, were a bit weird, but now, I want to homeschool and homeschool my kids. And that's a sentiment I've been having for a while now. Right? Personally, I don't have kids yet, but I would definitely want to be homeschooling my kids. If I were if I would stay here.

Casey Brown  19:09  
Yeah, especially with I mean, the doing of that stuff is one thing, but then the indoctrination of of the next generation to think that that's the way I mean that that that most definitely leads to, again, a toxic mixture of basically everything you've got going on there. So well, dang. Alright, so let's talk a little bit about I'm just trying to think about how to couple all this together. So have you raised capital for any of this stuff like, like exterior like, like capital from from investors, or is this pretty much been stuff you've done on your own or what what does that look like?

Unknown Speaker  19:53  
That is the next The goal was to you know, first have a track record for investors. See that? You know, we're we're doing really well with this with these first few properties. And so that's definitely step here on the next Self Storage purchase.

Casey Brown  20:12  
Gotcha. Wow, well, good. Well, that's interesting. So. So you're wanting to leave California you're wanting to now where you're Where did you tell me where your short term rentals were situated that where are they where they're located?

Unknown Speaker  20:27  
In Texas and Florida?

Casey Brown  20:30  
Wow. So you really are managing? remotely? Because if you're live, if you're in California, they're in Texas and Florida. Now, where is your self storage and your apartment complex? I'm sorry, your self storage and your carwash? They are in? Wow, interesting. So basically, California and and do you? Are you where you live in California? I'm assuming the real estate market has just exploded as? or is it pretty well, because it just seems like even in California with as many people are leaving, the houses are still likes extraordinarily high.

Unknown Speaker  21:11  
Yeah, everything when incredibly high during COVID, probably about 30% in the Bay Area. Because you know, people have a lot of stocks here. And during COVID The stock market doubled, if not tripled? Yeah. A lot of people bought homes, and they got out of apartments and insane. Now it's a bit cooling off, I think everywhere. But prices have not come down yet.

Casey Brown  21:43  
Wow. Yeah, it seems to have that. And it's just it's always weird, because California is almost usually that has an inverse relationship to everything else in this world. Like, it's like if everything in California is down, everything else is up and vice versa. Because it just tends to be when Californians leave. And they've been but but honestly, I first heard of the Californians leaving, like 2014 2015 that's when the big Exodus started. And it just seems like it's continued far longer than what anybody anticipated.

Unknown Speaker  22:23  
Yeah, I was pretty hard to call. So the other day that 6.3% of the population in San Francisco have left. So it's a huge number.

Casey Brown  22:34  
And you know, yeah, it sounds minut. But it's really yeah, when you put that you put a person for every or when you start counting that in people, man that is Gosh, dang. That's a lot. So well, good deal. Well, listen, we'll Stephanie, we always ask a couple of questions at the end of every episode, that there's no right or wrong answer to and we'll be you know, just tell us what you think. But what is the best book that you've recently read or currently reading?

Unknown Speaker  23:06  
Untethered Soul? That's more on the you know, dealing with situations as they come and not? To put it very, very simply.

Casey Brown  23:19  
Sure, sure. And that seems like you've you've kind of mastered that art or at least a little bit with with some of the situations you've been handed, trying to trying to basically work out of them instead of sitting there crying about them. So you have to what the next question is, what is a dream vacation you have either taken or would like to take?

Unknown Speaker  23:41  
I would love to go to Madagascar on subject because it takes 32 hours to get there. On a regular flight, commercial flight,

Casey Brown  23:52  
I always get on Google Flights. And I just I pan around, and I think and I look and I, you know, as we were talking prior to the show, we love to travel. And so I was I was looking at Madagascar one day, and I was like, Oh, wow, because you you you almost you have no choice but to stop in South Africa or Tanzania or one of those areas and then jump over there so Exactly. But I'm in complete agreement. Madagascar is definitely on my bucket list. So anyway, but Well, Leslie Stephanie. Chatter oppressed. Yeah, there you go. We'll just go get Yeah, we'll just charter one of those and roll on. But listen, how can the listeners reach out and get in touch with you if they've heard something they want to chat a little bit more about or, or learn more about you?

Unknown Speaker  24:51  
Thank you, Casey. So I'm on all social media networks, and my website is Monte Carlo our

Casey Brown  25:00  
Monte Carlo are and as your you said that was the ranch you were raised on right?

Unknown Speaker  25:06  
That was the name of our ranch. Yes. Awesome.

Casey Brown  25:09  
That's great. Well, I know there's a ton agricultural stuff in Brazil a matter of fact. There's there's a lot of cattle in Brazil I believe in there

Unknown Speaker  25:17  
a lot. Yeah, yeah. Yeah. Most grass fed and really delicious meat. So

Casey Brown  25:23  
Wow, good i i for 1am not a grass fed guy, I think. And as you can tell, I'm not a grass fed guy. But anyway, so well Stephie thank you so much for taking the time out to meet with us and, and have the listeners learn a little more about you and why you are escaping both Silicon Valley and the carwash business at the same time. And listeners, if you liked what you've listened to today, and you you want to reach out and get in touch with Stephanie, she gave me your social media, she gave your contact info, reach out in chat with her. She'll be glad I'm sure to help you along your journey if it's something that she knows or can help you with. And by the way, please leave us a five star review and subscribe. We would love to have you as a subscriber so that you can learn more about the real estate business, whether that be syndicating capital raising, selling whatever your niche is, we hoped that you can learn something from our show. And I want to thank everybody for listening today. Have a good day.

Transcribed by

Steffany BoldriniProfile Photo

Steffany Boldrini

Monte Carlo Real Estate Investments