Most real estate investors don’t lose money on the deal; they lose it in the rehab.
For today's episode of the Strength in Numbers Podcast, Marcus Crigler sits down with Ryan “Rotty” Garcilazo to break down the simple rehab system he uses to save time, protect profits, and keep projects moving without constant supervision.
Listen as he breaks down how to evaluate rehabs quickly, how to avoid getting crushed by contractors, and why understanding construction numbers is the real skill that protects your profits. Enjoy the show!
You’ll Learn How To:
- Understand rehab costs using simple, repeatable math
- Avoid contractor mistakes that destroy timelines and profits
- Choose the lowest-risk, highest-return rehabs in today’s market
- Make better decisions by understanding how construction works
What You’ll Learn in This Episode:
(02:25) Getting to know more about "Rotty."
(05:36) Why construction knowledge is non-negotiable for investors
(06:32) How to evaluate a rehab using cost per square foot
(08:16) The “50% below retail” rule for profitable rehabs
(08:44) Level 1, Level 2, and Level 3 rehabs
(11:06) The $1,000-a-day rule and why timelines always get underestimated
(12:10) How permits, inspections, and city delays kill profits
(14:29) Why you must think like a general contractor even if you hire one
(18:20) Variables that will affect rehab budget and timeline: Location, demographic, and material ordering
(19:18) Construction skills are a permanent leverage in real estate
(21:02) How Ryan built a rehab-focused AI to manage budgets, scopes, and timelines
(26:25) The lowest-risk rehab strategy in today’s market
(27:49) Why staying between Level 1 and Level 2 rehabs protects your capital
(28:34) “Aim small, miss small.”
(30:35) Why showing problems instead of pretty finishes matters
(31:59) The hidden 20% cost most investors never plan for
(33:37) Hard money often creates more problems than it solves
(35:54) Why contractors aren’t “stealing.”
(36:53) The difference between 20% markup vs. 20% margin
(37:22) Leadership vs. management on a job site
(39:27) Why understanding people matters more than understanding construction
(42:02) What real leadership and accountability look like in rehab projects
Who This Episode Is For:
- Real estate investors who are rehabbing their first few properties
- Operators who are tired of blown budgets and missed timelines
- Investors who want predictable profits without full gut stress
- Anyone who wants to stop guessing and start controlling rehab numbers
Connect with Ryan “Rotty” Garcilazo:
- Website: https://www.therehabdepot.com/
- Facebook: https://www.facebook.com/ryanrottygarcilazo/
- LinkedIn: https://www.linkedin.com/in/ryan-rotty-garcilazo-335ab758/
- YouTube: https://www.youtube.com/@therealrottyg
Connect with Marcus Crigler:
- Website: https://beccfo.com/
- LinkedIn: https://www.linkedin.com/in/marcus-crigler-cpa-977a45b7
- Facebook: https://facebook.com/marcus.crigler