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The Real American Dream: Rocco’s Rise in Real Estate

• Courtney Twiss • Episode 56

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Join us for an exhilarating episode as we dive deep into the transformative journey of Rocco Ayvazov, a remarkable real estate developer who's reshaping communities in Pennsylvania. Arriving from Bulgaria with little more than hope and determination, Rocco's story is a beacon of resilience and entrepreneurial spirit. Discover how he turned challenges into stepping stones, flipping houses and developing multifamily units while revitalizing neighborhoods and addressing the pressing need for affordable housing.

As Rocco shares his beginnings sewing American flags and his early troubles navigating his new life in America, listeners will find inspiration in his relentless pursuit of knowledge and success. He details his first significant leap into real estate, a $38,000 property flip that set the stage for a billion-dollar career. We explore Rocco's famous projects and how they are not just about building houses but also fostering community growth and involvement.

Through candid discussions about failures and milestones, Rocco offers invaluable insights on the importance of adaptability, risk-taking, and networking within the real estate industry. His collaboration with DLP showcases the powerful outcomes of trust and mutual ambition in business ventures. He shines a light on the often misunderstood subject of affordable housing, illustrating the critical need for accessible living spaces for working-class families.

This episode is packed with wisdom, motivation, and practical advice for aspiring entrepreneurs and real estate professionals alike. Whether you're driving, working out, or taking a break, tune in and get ready to be inspired! Don't forget to subscribe to the NOW Podcast and share this episode with anyone looking for encouragement on their journey toward achieving their dreams.

Connect with Rocco: https://www.monocacybuilders.com

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Speaker 1:

Oh, I forgot my glasses. Uh-oh, can you read this bio? Yeah, I'm not that old, you don't need my young eyes to read it for you. No, you sure I haven't. I left them in my truck today and you meant to say your bifocals, didn't you? Uh, they're brassos.

Speaker 1:

Welcome to episode 56 of the NOW podcast Making Moves in Real Estate. Hey everyone, it's Michelle, aka the General here, along with my co-host, courtney Twist, and today's guest is a true embodiment of resilience and entrepreneurship, rocco Evasso. Hopefully I said that correctly. The founder and president of Monocacy Leaders came to the US from communist Bulgaria, overcoming language barriers and skeptics to build a thriving career. So, starting in construction, rocco took a leap into the state, flipping his first home in Pennsylvania, turning a $38,000 investment into $253,000 success. But his entrepreneurial drive started even earlier. At just 11, he turned a foosball table into a profitable business, now a devoted husband and father. Rocco's success is built on calculated risks, strong leadership and perseverance. His journey is proof that the American dream is real for those willing to chase it. So welcome Rocco, yeah, welcome.

Speaker 2:

Thank you, thank you, thank you, thank you. I mean. You say it very well, so I couldn't say better myself.

Speaker 1:

Did I do okay.

Speaker 2:

You did it great. You did it great, so thank you guys for having me.

Speaker 1:

Oh yeah, we're thrilled. I know Michelle always kills it with the intros, not always. Oh yeah, we're thrilled.

Speaker 2:

I know Michelle always kills it with the intros Not always but notice, I didn't say your first name, you're fine.

Speaker 1:

That's okay. I just went straight to Rocco, so anyhow, you're joining us from Pennsylvania, correct?

Speaker 2:

Bethlehem, pennsylvania, yes.

Speaker 2:

And I did not include the incredible part of your journey on like when you came here in 2006, what were you doing exactly? So I mean, as you guys can you know, pick up quick. You know, english is my second language, so came from bulgaria, 2006. I was 21 years old and my first job in America actually, I was sewing American flags. I was sitting in the sewing machine and was sewing American flags. So, unfortunately, china was doing for less money, so they took the business over and the guy that I was working for, jack, he was forced to shut the doors, but that's where my journey started.

Speaker 1:

And I understand you later went on to purchase that building.

Speaker 2:

Yeah, fast forward. I think it was 10 years later I went back and I was able to purchase the building from the bank. He lost the business and now we can run it to 12 apartments and, uh, you know, above the door we have the american flag, uh, and we bring the uh, the original name, uh, mary fashion, and that's what called mary fashion apartments. Uh, it came out, uh, real nice, uh, it's real nice property. But the biggest thing is, you know, I mean, how many people can say they did that? You know, going to going to a different country without knowing it. You know, and never, never think about it or dream to do such a thing, you know. So that was what I call it. That's my american dream, that you know it's living it.

Speaker 1:

Yeah, literally yeah. Some people say an American dream doesn't exist, so they're probably lazy, right. I love that. Not probably like 100%. Let's facts for facts, rocco, like what you've built is so impressive. Obviously, a large part of our listeners are real estate agents. Share with our listeners, like what did you do and how do it? I mean, come on, let's be real. Look at your portfolio. It's crazy.

Speaker 2:

Yeah, I mean, you know, when I first came to the country, obviously I was working low paying jobs where I can find. You know, I was making five, six dollars an hour. So I was working 106, 108 hours a week for over a year and, you know, then I was able to get into construction. I was working for a guy that he teaches me in the trade, working doing framing, and my first flip, the one you mentioned, was in 2013. So that's kind of where my real estate journey started.

Speaker 2:

I went to one of those seminars I believe at the time it was Fortune Brothers or Fortune Builders, I think. They were from California side and you know they were going to teach you everything and show you the ropes and all that stuff, and it will charge you $35,000. I couldn't pay that, you know. And then I find a flip and want to purchase it for exactly $35,000. That's what it cost me. So I say, if I learn it, I'm going, at least I'll, I'll, I'll learn something out of it and and that's how I started, so make some money in that property in the next three flips I lost money and and I was more lack of of knowledge, experience and, you know, didn't know how to source deals and all that kind of stuff.

Speaker 2:

So we start from single families. At one point I was the biggest buyer at Actioncom. They're not that big anymore so there was a point that I was buying one or two properties a day. Sometime I was buying a bulk, uh 50 properties at a time, you know. So I mean flipping it's a business. You know when you start flipping it, the you know the cash running out.

Speaker 2:

So that's kind of a little bit slowly pivot, you know, to bigger multi-unit projects. You know, uh, the redevelopment projects. So I was never afraid to take that chance, to take that risk. So we start. You know, when the opportunity came across, I believe my first redevelopment project was 15 apartments. It was an old rooming house housing. We converted the 15 apartments and little by little we get more heavily in redevelopment new construction, new built single families, big multi-units, 200 plus units. You know the one we just finished is right in downtown. It's a whole redevelopment project for the city. So but yeah, it was. I guess I was never, never afraid to take that chance. And you were saying you have a lot of realtors. Listening, I went in to call the classes for realtor but I never get my license because the dear realtors and what I'm you know the things that I'm doing I knew I'm going to get in trouble too fast, so that's why I never took my license.

Speaker 1:

You're the second person to say that in two days that I've had a conversation that does all the investing side.

Speaker 2:

I mean the way I can go and negotiate with people. You know you guys have lost the file and all the you know ethics To me. I'm a free agent myself so I can negotiate it. I mean the one time we were looking at a property and I believe there were I don't know 10 or 15 developers the same time. They were looking at the building, so I was the first one ran up, saw the property and went down. The owner was there. We shake hands and everybody was pissed. If I'm an agent, I'll get in trouble.

Speaker 1:

Yeah, it's working for you. I mean so you talk about your first flip in 2013. And I was in that market then an agent, and I know that the inventory was quite different back then as to what it is now. So I would imagine, especially with you sticking to Bethlehem, pennsylvania, it's a one market. Has it been challenging finding properties, I imagine, to float? I don't know if it's easier now that you get into more of the redevelopment. Is that what brought you into new housing or looking at different ways of investing?

Speaker 2:

It is and it isn't. I mean, over the years we did over a billion dollar real estate. We did over a thousand transactions and that's all in that smaller market. But choose to stay in this market. I was able to learn so much more about different opportunities in the real estate. You were saying redevelopment, new construction. I felt like if I move back in the day somewhere else, I'll probably stick to the single families and all that stuff. But choose to stay here. I was able to, you know, to push myself and understand more and to learn zoning and to be able to navigate, you know, through zoning process and to administrations and because some of those bigger projects you're dealing with the governments you want to run out. You're there, so you have to navigate with them too.

Speaker 1:

Do you hold on to most of your assets? I know obviously you're involved with syndicates because that's how you and Michelle connected yes, we do.

Speaker 2:

I like to. I like to hold everything till the time somebody show up with a check. So everything has a price. We, you know we hold time. I sold quite a few uh, but uh, we switch most of it up the units from older product uh to brand new construction. You know so, uh, when you have a brand new construction then your maintenance cost is down. And uh, a lot of the buildings that I have, you know, let's say, we pick one building, we painted the same colors, the unit, we're using the same product. So what I call them a dummy proof when I say my maintenance guy, there's not much to screw up, you know so. They have the materials, they can pick it up and go. Otherwise, if you let them tank in, before you know it they go to Home Depot or Lowe's, wherever they're going to, on the way they're going to find a pavala. Two, three hours is a waste of you know, you just waste money.

Speaker 1:

Plug and play.

Speaker 2:

So we switched, that went from all the projects to the new construction.

Speaker 1:

Makes sense. So, rocco, he actually hasn't met me. Oh, I attended the DLP event in St Augustine. That's how I heard of your story, and my husband and I subsequently became investors in DLP. So talk to us. You said someone showed up with the money.

Speaker 2:

Yeah, so I mean, because we're in a small market. Well, it's small, it's about 300,000 people, and when in the market like that, when you break it down to developments, kind of, everybody knows everybody.

Speaker 1:

Yeah.

Speaker 2:

And luckily for us, on the spot that we are, we have investors approaching us from Philadelphia area and also, the same time, from New York, you know. So that's kind of where we're in a good spot here and the agency you know which developer it's doing, you know it's for savvy agent they can always find a way to get hold of you.

Speaker 1:

Is that how Don found you?

Speaker 2:

No, it's actually the way I found Don. I found one of his back in the days. He has a real estate company and a real estate agency and the agent that I was using, myself sending one of my flips he was so lazy I have to go do open house myself. So Dan, one of his agents at the time, she walked through the property, saw the property, she was impressed of the finishes and that's how the whole chat started and she was telling about DOP and I was able to learn about DOP.

Speaker 2:

But the first almost two years I was borrowing money from Dan, who we never met. You know, it's one of the years that he was too small but he was, you know, keeping track of my transaction. You know so he was doing flip himself. You know so in a sense we're, you know, competing against each other to find those properties. And you know, then we start talking and he was start growing more towards the financial world with a private lending and, you know so he didn't want to be bothered with that and that's how we started doing joint ventures. Till the beginning he was providing the flips and the financing and was splitting the profit. It then became to be a hassle for him to do that. Then I would just pay him a finer fees and he was still providing the flips and all that kind of stuff. And now he even don't want to do loans for flips anymore. You know, he grew up so big.

Speaker 2:

But with Dan we have an unique relationship with DOP. I've been doing business for past 11 years. I'm their longest borrower. We don't spend much time on the phone or emails or all that kind of stuff, but we know which direction to march together. With just a quick text or a quick call, we know what to do. One of the developments just finished and that was a partnership with DOP. It was a redevelopment project in downtown Bethlehem. It is the biggest redevelopment project in the city history, money-wise 205 apartments and two retails. Big project. Right, he's my partner. He show up three times, all three times. Less than an hour and half of that hour we spent outside walking in the streets talking.

Speaker 1:

A lot of trust.

Speaker 2:

That kind of shows you the commitment and the trust from the other side. That's perfect. It's hard to find that. So, yeah, I mean we did hundreds of joint ventures together.

Speaker 1:

Wow, yeah, how's that? So I saw the video at the event that they they showcase the, is it?

Speaker 2:

the boy theater.

Speaker 1:

What's up?

Speaker 2:

It's the boy theater yeah.

Speaker 1:

Yeah, I remember seeing the photos of when Don was in there and it was in really bad shape when you guys acquired it yes, yes, and is it complete now?

Speaker 2:

it is complete now. Yeah, uh, it's a movie theater. So when he show up and was looking the building actually where the screen was a single screen and you know I took him up, uh, so you can see that, uh, the room where they were shot in the videos was sitting up higher, and he find a staircase and went and ran above the dome and I was what are you doing there? He said we don't know how safe it is. He said get out of there.

Speaker 1:

I remember the photos. It was like it was almost like it was like everything was still in there, like everything. It was like somebody just was there, like a nightclub too, or was it just what looked like it? It was just like food.

Speaker 2:

There was a nightclub. Yeah, Yep, you know we have some memories here. Actually, I get thrown up out of that nightclub one time.

Speaker 1:

Uh-oh, oh, that's right, that's right, I forgot about that. That was like Don used to go there, right?

Speaker 2:

yes, I forgot about that, yeah kind of place for you know younger people to go and you know get drunk and all that kind of stuff and now there are over 200 apartments now there are over 200, over 200 apartments, but the part was that section of the city for 40 years.

Speaker 2:

Nobody can help. Nobody can figure out how to help, you know, to grow the businesses and and increase the food traffic to that area so it can support the businesses. And you know the the investment that we did it after. You know the building. Now it's complete. They have seven new businesses hooking up in the area. You know we bring in 400 more people in there, you know so it's slowly but growing up and you know everybody's excited. That's a perfect example project. That was the location where the property is sitting. It's in the most favorable zoning district. So in essence, approved by right. But you still have to navigate with the city. You still have to deal with administration.

Speaker 1:

Even if it's approved by right. That's what I was going to ask you, because I thought the zoning of a movie theater is different than residential use. So it sounds like Bethlehem is pretty open to working with you on those kinds of projects, which I imagine, or what I've heard, is pretty cumbersome in other communities where we have some downtowns and stuff that are not thriving and really could use a facelift and more housing, like what you've done. Somehow you've navigated all the bureaucracy of that, which is impressive.

Speaker 2:

Well, you have to you know, and also you know the municipal power, the cities. They're looking for those investments as well. At the end of the day, you know you're bringing more people, you're putting more food, traffic, supporting the businesses, and bottom line is you're uh the city taxes as well. You know so you're putting more money in your pocket, that something you don't have in the past. But you need to be able not not only understand the zoning but also understand the city or where you're going to invest as a whole. You know what was has done the past, what has been approved in the past. You know who is the attorney getting through all the projects. You know understand who is sitting in the city council or, if you're in the little cities they have. You know different type of boards. You know you have to be able to understand that before you go and do it Because, in general, before you go and do it, because in general, anywhere you go, unfortunately there's a stigma to developers.

Speaker 2:

When you go somewhere and people think, oh my gosh, this developer is coming and destroying our town that still exists. There were some bad developers back in the 80s. It wasn't too thoughtful, but it's a sales pitch You're going and selling yourself or your product to that township, to that zoning board. So if you're going there for an entitlement that they have to give you, that well, it don't work that way.

Speaker 1:

I imagine from you, know your you've been your marketing side of it is that it's all affordable housing, which is exactly what I feel like local governments want to support these days, and what the community needs is more affordable housing, and I think that's you having done over a thousand you know projects over the last decade or so.

Speaker 2:

I mean what an impact you've had on your city and I imagine for the most part it's, so positive it is, and it's not quite where I want to be Unfortunate of, the cost of goods went up after the COVID and all that stuff. It's hard to achieve those numbers after the COVID and all that stuff. It's hard to achieve those numbers. You know, I always say to be a true affordable housing has to be some type of partnership between the private and the public sector. There is no other ways, you know, other than that. You know you might give some discount and all that kind of stuff.

Speaker 2:

But you know, and also there's a misunderstanding with what affordable housing means. You know some people when you tell them affordable housing right away they take in Section 8, which is, you know, we like to call that work for housing. You know, so we're targeting. You know the people who are stuck in the middle in part are nurses. You know people who are not making a lot of money but also they're not qualified for subsidies. So those are the families that you know that we're targeting.

Speaker 1:

So are you primarily focused in multifamily housing developments in Pennsylvania or are you partnering with DLP in other states? Because I know obviously they're in multiple states throughout the country and bleeding out here to the West Coast. But what are you exactly doing?

Speaker 2:

So right now, primarily focusing in Bethlehem, in Pennsylvania area. I've been looking for the past few years outside. But the way I invest I'm a little different than everybody else. When we do projects like this, I want to be there, I want to see it, I want to meet there, you know, I want to see it, I want to meet with the neighbors, you know. So I feel like if I have another project, different state, it'll take some time off of me and you know, usually it does that and that's one of the things going south.

Speaker 2:

You know, I don't know if it's for my benefit or lack of benefit, because I have a heavy construction experience. So it's not easy to foolish me when you get to the construction world and when I see it it's not right. So that's why I'm always to the job sites and I'm always walking in and see them and try them. You know I'm always to the job sites and I'm always walking in and see them and try them. But I was looking multiple times properties down in Georgia, south North Carolina, looking back now, I wish I bought them. That was five, six years ago and you can buy properties there for $13,000, $15,000, you know, $20,000 a door. That don't exist anymore, you know. So now they're $60,000 to $'s 60 80 000, even when they went up in that area as well. But I'm not in a different state and I don't say no yet. You know, when I find the right project, absolutely anything that make financial sense will look uh, you, we'll look that up.

Speaker 1:

You have such an incredible story of the American journey. I'm curious to know and I'm kind of putting you on the spot here but what would you say was the biggest failure that you've had since you've been here and how you flipped that into a success, because I know you have something out there that you can share with our listeners many, many failures.

Speaker 2:

I will say, my biggest failures that I have that that's, you know it's more in a business was, uh, I didn't know how to run a business. You know, when I came here I I knew how to work. You know, I was a worker. But to run a business you need different skills and unfortunately I didn't have them. I didn't have the privilege to go to college. I didn't have somebody to call and try to figure out or to guide. So I spent millions.

Speaker 2:

Well, besides the millions, you know I put a lot of stress on myself to figure those things out. You know to know how to run a business, to understand financing, know how to source property, you know to doing it, to being HR, and you know you have to know all those Accounting. I don't like accounting, but I have to learn it. You know I hate it. You know I don't like accounting, but I have to learn it. I hate it, I don't like it, but you need to know that. You need to understand how the banks are working on the back end If you're looking to refinance property. So you need to have all that data, all that knowledge in front of you. So I paid dearly for that in front of you. So I paid dearly for that and the way I was able to learn it it was through Dan different, you know, went to different different groups and majority of those group was outside of state. You know, someone was in California, you know, down wherever he was going. Uh, you know he to do better, you have to push yourself, you know so. But it was a lot of failure.

Speaker 2:

And you know another big failure that I have, you know, when I came to the country is 21 years old and you know I came, uh, without papers here, so I have to go through that process myself. Uh, you know. So, first, two months I spent in jail. That's one of the things that Trump some people like it, some don't, and I disagree with a lot of his things. He likes illegal immigration, so he needs to know those people. So when I came, that's what I did. I wanted to turn myself to the feds and I was in jail by the time. They find who I am, where I'm going, blah, blah, blah and all that stuff. But if I have to go back, and you know, do that over again. Probably I'm not going to do that again, you know. But I was in that age, you know. But it was a lot of mistakes that I make you know over the years, and a lot of those were business mistakes.

Speaker 1:

You never gave up. So what a remarkable store of resilience.

Speaker 2:

Many, many times I was on the edge of the fault. But you know always, you know, stick with a 20 mile march. You know, going in, you know, day in and day out, sooner or later. You know, when you keep pushing it, sooner or later something will change. You know, you just have to do it. You know so it can. When you have a team, you can't blame your team for something they didn't do it. You have to blame yourself. You know it's easy to point a finger, but you have to remember when you point a finger towards your team, the same time you have three fingers pointing back right to you.

Speaker 2:

Yeah, you know so when you do that, you have the three fingers that are going right back to you, so something didn't provide it to them to do their job. You know to be there, so it could be a lack of experience that the owner itself you know, but you have to find that good advice a lot of lawyers actually.

Speaker 2:

You know it's funny we bring. That, I believe, was one of the beginning, the uh, the meetings that back in the days I used to go, there was a group called Collective Genius, a lot of flippers in there, and so my very first meeting and everybody was talking about this guy lose that much and that guy lose, and I was thinking to myself, wow, I'm doing great, I never lose a dime. I was so wrong.

Speaker 1:

Now you know, now we know, now we know. Well, I want to just thank you for joining us today, rocco, and what an impact you and Don are having on communities across the country. I think it's amazing, and precisely why we decided to invest in DLP. We would like to get Don on this podcast. I've asked, but I have not gotten a yes or no. I just need to keep at it, but he seems like a remarkable person, just like yourself. So thank you for joining us today, Rocco. Yeah, we really appreciate it, and I think there's so many people in our industry that will resonate with what you've had to say, especially with your failures and the resiliency of getting through it Well and working hard, and working hard. I think, with having you know, a few years of an easy market can make for some really lazy realtors Dude making fags at five bucks an hour To having over a billion dollars. I mean, come on, if you're listening to this and you're going, wah, wah, wah.

Speaker 2:

Don't move here, suck it up, don't move here. I always say, if I can come in this great country and do it, I don't want to hear, right, go, get it done. You know, geez, it's easy. I mean another thing that you touch on, dan. He is a remarkable guy. I know him for over a decade and a lot of people, what they say, to truly trust somebody, give them money, give them power and you can see their face. You can see the true face. That guy. He never changed. He's still the same guy. Face that guy. He never changed. He's still the same guy. You know, as I met with him when he was. It took the time, he was small, probably less than 100 million dollar in his portfolio, something like that. But but yeah, he's this phenomenal guy. And just for a quick, you guys are my very, very first podcast I denied so many in the in the past.

Speaker 2:

You know, I would just never, never like I had to go and throw on the camera. Uh, if it wasn't that big project that we have for down, I would even I have a website in the past wow, yeah, just a new one you know it was one of those guys go do your business and, and just you know, low lay, low, well put your head down and now you're gonna blow up on social media. So I'm ready I don't think so welcome to our world.

Speaker 1:

well, I look forward to meeting you in the future at another DLP event. I really admire you and appreciate to hear your story. And again, thank you for joining us, rocco. Yeah, thank you so much, rocco. And for those listening, rocco, where can people find you, since I know you just said you're hard to find? If they wanted to reach out, what's the best way to go about it?

Speaker 2:

They can go to our website at monocracybuilderscom, or they can send me an email direct to irakumonocracyreviewscom, so very easy guy to find. Or they can type my name on Google and you know be a phone number and everything there, so easy to find. So if anybody have any questions or anything, I'm here, we're always here with the help, congratulations.

Speaker 1:

If someone's listening and wants to watch this, to see the video of this recording, you can always go to our YouTube channel and make sure you subscribe to the Now Podcast for real and, of course, if Rocco or anyone gets any questions, we'll make sure to respond. Or, of course, you can reach out to Michelle and I on Instagram at Ask the General and All Things Twists Be good. Bye now. Thank you, rogo, bye you.