Why Smart Investors Redevelop Existing Homes Instead of Building New | Jerry Larkowski Interview

Jerry Larkowski (00:00)

I’m here in Little Rock, Arkansas, Central Arkansas this August. I will be here 50 years. and as— as I’ve told many people, with the exception of the— the winter term of my junior year in college, spending it at overseas at the University of London, I have done all of my education. I’ve worked every job, I’ve lived in every house, duplex, etc., within 30 miles of where I’m sitting right now here, just outside of downtown Little Rock. And real estate is— is so local. There’s so much of a focus on it being local. And you know, and it’s— you’re basically dealing with dirt, dirt that does not move. And I know my dirt.—

Quentin Edmonds (02:18)

Hello, everyone. Welcome to the Real Estate Pros Podcast. I am your host, Q Edmonds, and I’m excited to be here today. I have a fantastic guest. And in his own words, this gentleman knows his dirt. And I’m gonna let him explain what that means. But this gentleman knows his dirt. Listen, he’s an attorney, but not only is he an attorney, he’s an investor, he sells real estate. And listen, this gentleman has 25 years experience in litigation. So trust me, this gentleman knows what he’s talking about. And so I am so excited to introduce you all to Mr. Jerry Larkowski. Mr. Larkowski, did I do good with that last name, sir?

Jerry Larkowski (02:55)

You did A plus and you get the big star on top of the paper. Do they even do that anymore in school? Probably don’t.

Quentin Edmonds (03:01)

Yeah, yeah, yeah. In variations, they— they still do, but yeah, yes, sir. Well listen, man, I’m so glad you’re here. I would love for you, because I’m the type just to like— I like to dive right in. So I would love for you to tell the people kind of what’s your main focus these days and give us a little bit of an origin story, kind of how you got to where you are right now.

Jerry Larkowski (03:22)

Sure, sure. So I— I’m here in Little Rock, Arkansas, Central Arkansas this August. I will be here 50 years. and as— as I’ve told many people, with the exception of the— the winter term of my junior year in college, spending it at overseas at the University of London, I have done all of my education. I’ve worked every job, I’ve lived in every house, duplex, etc., within 30 miles of where I’m sitting right now here, just outside of downtown Little Rock. And real estate is— is so local. There’s so much of a focus on it being local. And you know, and it’s— you’re basically dealing with dirt, dirt that does not move. And I know my— the longer you live, the longer you are around— the— the area that you sell in, that you transact in, the more you’re gonna know it. Yeah, I drive people crazy. When we go around town and I point at something, say, “There used to be a bank there, and I always said there was gonna be a restaurant, and there’s a restaurant there now.” And they’re like, “Okay, yeah, whatever.” And then a couple of years later, whenever I say something, then they see it and they go, “Wow, dad was right.” “Wow, Larkowski was right.” It’s just you get— you get a sense when you stay and live somewhere over a period of time, what works, what doesn’t work, what would go well, what doesn’t go well. And it’s— it’s just a— it’s just a sixth sense. You can’t teach it, you can’t coach it, you can’t write an article about it and read it 37 times and go, “Yeah, put a bank over there.” It’s just something that you develop over time. Kind of like the— the old grandmas that used to make something and what have you, they don’t have a recipe. They just dump it in and all that and they taste it, and, “No, you gotta add a bit more.” They don’t— you know, that’s how— that’s how it’s done. It’s done because it becomes a part of you. It’s within you. It breathes within you. And— and that’s the way to become good at real estate is— is it’s gonna take time. There’s— there’s no microwave success in real estate. You— it is gonna take time. It’s gonna slow cook, but when you get there, it’s gonna taste so much better than what a microwave gives you. So—

Quentin Edmonds (06:22)

Yes, sir. So you are on top of being an attorney, you are an investor. So what are some of the strategies that has helped you when it comes to investing?

Jerry Larkowski (06:32)

Well, so again, it helps to have lived here as long as I have. It helps as I tell everybody, you know, when I— when I represent you in a real estate transaction buying something, I’m— I’m— I’m acting as a broker, not as an attorney, but— but the attorney brain doesn’t shut off in the process. So you can’t help but think of things and think through them with the lawyer brain. And so a lot of times that just— that helps in there as well too, as to, well, what’s gonna happen if I do this over here? Is that gonna be on me? Can I go back after the seller? Can I get, you know, a bank to help? You know, all those different things that come into play is, what if, what if, what if, what if? And so the— the law license helps, the real estate transaction history has helped. and trust me, it takes a little bit of luck too. You know, you can make all the right decisions, you can use the best slide ruler you’ve got, you can bring in AI and ChatGPT and all that, what have you, but at the end of the day, it— it’s still gonna take a little bit of luck. And so yeah, I— I use ever— every tool in my toolbox when it comes to real estate investing. So—

Quentin Edmonds (07:39)

Sir. Yes, sir. I love it. So what’s next for you? What’s your next real goal? What are you looking to solve at scale next, man?

Jerry Larkowski (07:45)

Probably the best way to put that is old Oliver Twist that we all read years ago where he said, “Could I have some more, please?” Just— just lob some more on, going back to grandma’s cooking, just get out that spoon and lop some more on, let’s go, you know, huh, just more of the same. You know, the real estate— my favorite thing that I like to push, I don’t know how it is in the areas that your— that your listeners and viewers are, but in Central Arkansas, we keep going west, north, south, east, blazing trails, knocking down trees, buying up land, and adding infrastructure. And that’s all good and well, and— and in some cases that’s really necessary. But I’ve been preaching lately that we have a bunch of parts of town where houses have just gone into neglect, where some of them have been abandoned. The properties that my wife and I have developed in the last couple of years have been houses that were vacant for decades and had literally no plumbing, electric, HVAC ductwork, sewer lines, water source pipes, anything like that. But all of the other utilities that are around it are there. And so really what you do is just plug and play. You know, you don’t have to bring in curbs and gutters and sewer lines and electricity and cable and AT&T and all that, what have you. When you’re in the city where this has been there for decades, when you develop something new, you’ve gotta add all that stuff in. And especially like with sewer lines, you know, the— the— the infrastructure that we have for our sewer lines to process our waste is already there. And when you add something on at the end, all you’re doing is adding more stress to that system. Why not just use the system we already have as much as we possibly can? And again, you’re not gonna— in— in parts of Little Rock where you’ve got lots that are, you know, a tenth of an acre, and you can build let’s say, I don’t know, a 1500 square foot house. There are people out there that want 3,500 square foot houses and you can’t do that on those lots. And so yes, there are gonna be areas where you’re gonna have to you know clear cut and build new areas and all that, what have you. But when it comes to just starter homes, move up homes, etc., it’s already there. You just gotta resurrect it. And— and you’d be surprised how much is already there that all you gotta do is— is freshen it up and— and plug and play and get going.

Quentin Edmonds (10:54)

Yes, sir.

Jerry Larkowski (10:54)

So that’s— that’s— that’s what I’ve been pushing is— is— is let’s redevelop what we already have rather than adding on something we don’t and— and try to make— it’s just a more efficient use of— of our system, et cetera. And people like, “Ooh, that part of town.” And I’m like, “You know what? The dirt is going nowhere.” Yeah. The dirt is going nowhere. It’s gonna be there, it’s been there, it always will be there. So why neglect it? Just let’s— let’s gussy it up.

Quentin Edmonds (11:18)

Yes, sir. Yes, sir. I love it. Well, listen, we— we don’t get anywhere by ourselves, right? You know, there’s always different partnerships, relationships that have kind of helped us kind of get to where we are. So what is your philosophy when it comes to relationships and what are some of the relationships that have helped you go into the space that you’re in?

Jerry Larkowski (11:37)

I like how you said we don’t get anywhere by ourselves. It’s kinda like that old adage or joke about the turtle that’s on top of a fence post. He’s like, “You don’t get there by yourself.” So you’re exactly right. So— I’m sorry, tell me your question again.

Quentin Edmonds (11:53)

No problem. So I’m just trying to get your philosophy on the word relationships. Like how has relationships served you and what are some of the relationships that have helped you get to where you are?

Jerry Larkowski (12:01)

Well, the fifty years that I’ve been here, I’ve developed relationships going back to school that people have called me, et cetera, decades later and, “Hey, I saw your name on a sign.” “Hey, I saw you on Facebook.” “Hey, blah, blah, blah,” and all that, what have you. And you know, that’s something that I taught my two boys is— is that I may not ever be the richest dad in town, et cetera. But one thing that I can give you that if you choose to stay in this town is our name. And— and that’s something that you— if you haven’t done, you need to start doing today because in five, ten, fifty years it’s gonna pay off. Is— is if people know you’re gonna shoot straight, that you’re not gonna try to screw them, that you’re gonna volunteer your weaknesses, you’re gonna promote your strengths, you’re gonna tell them the good and the bad of everything, and they know when they’re done that they— hey, they got a fair shake out of you. That’s invaluable. And so the relationships I’ve developed over the years, that’s— that’s invaluable. I’ve got a reputation for being a hard worker. And— and I’ve had that told to me by many people from many different facets of different businesses, industries, that type of thing is— is, “Man, one thing you will not complain about is— is that guy’s gonna work for you.” It’s not like you’re not gonna be get a hold of him all weekend because he’s on a golf course. He’s gonna work for you. He’s gonna get back to you. He may be swamped at times, but you— your relationships have already started. And— but starting today, my advice would be start improving them as best as you can right now, because everything you’ve done and everything you do today and everything you do tomorrow will affect what your reputation is and the relationships with you have. And a lot of people are gonna hire you because they’re comfortable with you. And if you’ve done anything to make them feel uncomfortable over the years, you’re not gonna get any business. A lot of people will forget your names, a lot of people may forget things about you, but they’ll never forget how you made them feel. And— so— work on that and— and if you’re already working on it, work harder.

Quentin Edmonds (14:08)

Yeah. Mr. Jerry, sir, man, thank you so much for just your introspection, your experience, the lens on the way you do things. If someone wanted to reach out to you, connect with you, collaborate with you, learn more about what you’re doing, how can they get in contact with you, sir?

Jerry Larkowski (15:06)

My email is jerry@esqbrokers.com. ESQ Brokers.com. All that is one word, jerry@esqbrokers.com. My phone number is 501-831-0372. and if you lose all that, there’s only one other Jerry Larkowski in the United States of America and he’s in his nineties and I don’t think he’s selling any real estate, so.

Quentin Edmonds (15:32)

Absolutely. Well, Mr. Jerry, sir, thank you so much for coming on. Thank you for your time. Time is our most precious commodity. Thank you for your story, showing up as your authentic self, planting seeds that’s literally gonna change people’s lives. And lastly, man, thank you for your mindset and bringing that mindset to this platform. I truly, truly appreciate you coming on today, sir.

Jerry Larkowski (15:48)

Thank you for having me.

Quentin Edmonds (15:58)

Absolutely. Well, listen, y’all heard Mr. Jerry. His information is in the show notes. Please get in contact with him, but definitely make sure you’re subscribed here because I’m promising you, we’re going to continue to bring up amazing people, just like Mr. Jerry. So, sir, thank you again and everyone else. Y’all have a fantastic day.