Money Rehab with Nicole Lapin - Selling Sunset, Empanadas and High School Bullies and with Emma Hernan (Encore)

Episode Date: February 20, 2024

Our favorite real estate agent on Selling Sunset, Emma Hernan, is here to talk about her delicious second job, hacks for finding your dream home, high school bullies and why being underestimated is a superpower.  Originally aired 08.05.2022

One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that

I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details.

I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your

reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player. GameStop. And should I have a 401k?

You don't do it? No, I never do it. You think the whole world revolves around you and your money. Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg.

The only financial expert you don't need a dictionary to understand. Nicole Lappin. I'm so excited today to be joined by the wonderful and talented Emma Hernan. You probably know her from the smash hit series on Netflix, Selling Sunset, the show that follows a team of LA-based realtors as they sell bazillion dollar homes to LA's rich and famous. Of course, I had to have Emma on to talk about all of her real estate tips. But in this conversation, we cover so much more. We talk about Emma's entrepreneurial journey, how to deal with bullies, the advantages

of being underestimated, and Emma gives out her boss bitch crown. Well, Emma, I am so excited to say welcome to Money Rehab. Thank you for having me. I'm so excited to be here. Well, there is so much to you as an entrepreneur, so much I want to talk about. You are not only a business owner, you're an angel investor, you're a realtor. I can't wait to get into all of those things. I want to start with your company. You're the founder and CEO of a plant-based food company. Thank you. I am vegan.

Emily and co. So first, how did you start the company and why did you start the company? Okay, so first, I will make sure to get to a package and a cooler sent out immediately. I did not know that you were plant-based. Thank you. And you know, for me, I've been in the food industry my entire life. My grandfather started a company, it was a seafood company. So he was making crab cakes out of his kitchen. And when he passed away, my mom and her sister took it over. And I remember growing up and doing

little food demos. So you know how when you go to the supermarket, and people are giving you samples? Well, I was that 11 year old little girl with my mom giving out samples. So just say it's in my blood, it's in my blood. And you know, coming out to Los Angeles and just seeing, you know, health is so important and plant based, I just feel like there wasn't a really, I wanted to take over the space. And that's what I'm continuing to try and do. And basically creating different appetizers. I partnered with Beyond Meat, which has been the best partnership that I could have possibly imagined because brand awareness. So for me, business is always, I've always had a business hat on first and brand

awareness with Beyond Meat, people know immediately what's in. So one of my items is an empanada. If you were going to buy just any old empanada that was like plant-based, you would go to grab it, but you wouldn't necessarily know what was in it. And I knew that I eventually wanted to start my own company and I wanted to create kind of a company that was giving back and creating something, a niche. And so beyond me, I feel like I heard about Impossible and Beyond Me before anyone really knew exactly what they were. So I knew that I wanted to do something with them. And then when I started my own company, figuring out which brand to partner with obviously was a no-brainer when it came to Beyond Meat, the brand awareness and all that. So I created my first items were the empanadas.

And every single sample that I sent out to buyers for the different supermarkets instantly took them right away. They couldn't believe that they are vegan and plant-based. And that's kind of how I started my company. And I started it right around COVID. And when I say I put my heart and soul into it, like food is my heart and soul. My family is my heart and soul. I bought a 50,000 square foot building back in Boston, state-of-the-art manufacturing facility. So I mean, dream big, that's for sure.

Absolutely. That's what we're all about here on Money Rehab. You created and you also funded the company yourself. Why did you choose that route instead of bringing on investors? We live in sort of this shark tank world where it's so much part of the zeitgeist to bring on outside investors. Yeah, exactly. For me, you know, it was just really important, especially, you know, as a female entrepreneur, I really wanted to prove that I could get the company to where it is now and continuing to grow on its own. When you're growing a company, it's just, it's, I do think it's important to own a hundred percent of the company because you have 100% creative control, you have control of everything and your heart is in it because hopefully you're doing something

that you're passionate about it. And for me, it was food. So I knew that I wanted to start a food company, but owning 100%, you get to really, and it's that much more rewarding when at the end of the day, you did it all on your own and you got it to a point where it's now, I mean, I go into the supermarkets and I still get butterflies seeing my product in stores. So I think there's just something about that and having creative control, having financial control, and you're also a little bit smarter. It's not someone else's money that you're spending. It's your own money that you're spending. And I do think it helps you really run numbers. And I think that that's important too. It's such a good point. And it's also diluting your own ownership. It's like when you take on

capital, you know, I see these entrepreneurs buy a sweet ping pong table or something else or, you know, stuff that they might not have bought to your point if it was their own money coming out of their own bank account. A hundred percent, a hundred percent. And even for me growing up, you know, I was always a big saver. And I think that that's like the one huge lesson that I would love for like young entrepreneurs, young, you know, girls in high school, girls in middle school, male, female, whatever to save. I mean, I saved, I loved working. So for me, I started babysitting. I was working at ice cream shops, waitressing. I love to work. I was always out and about working everywhere, but I saved every single penny. I didn't go out and buy a new Chanel bag or

something like that. It was really important for me to save because I knew that I wanted to build a future for myself and I wanted to do it on my own. So saving was honestly one of the best things that I did because I was able to fund my company. I was able to help my mom out when she needed it because she was a stay-at-home mom that was left this company in order to keep it running. They needed to buy equipment. They needed to keep their employees on. So at 16, 17 years old, you know, I was lending my family money to get the company to where it is today. So and saving was a huge part of that. Yeah, you can't buy machinery and whatnot with Chanel

purses. No, you cannot. You cannot. Hold on to your wallets, boys and girls. Money Rehab will be right back. One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime,

you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A. Members FDIC. Spot me eligibility requirements and overdraft limits apply.

Boosts are available to eligible Chime members enrolled in Spot Me and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details. I love hosting on Airbnb. It's a great way to bring in some extra cash, but I totally get it that it might sound overwhelming to start, or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full-time in San Francisco and you can't go to Maine every time you need to

change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble

so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at Airbnb.com slash host. Now for some more money rehab. Okay, let's skip over to your career.

I can't believe you have a whole other career in real estate. Not only are you a realtor, but you're also on the fan favorite, Selling Sunset, the Netflix series, of course, about luxe real estate in Los Angeles. So I'd love to get your insight as an expert on some of the main questions we get from listeners a lot. If someone is looking to buy a house for the first time, and this is a whole new world for them, what advice would you give them on what to look for, especially in this competitive market? I know it is competitive, but rates are going up. So now it's bouncing out of it because I mean, three, four months ago, you were seeing houses go. I mean, 34 offers at some homes. It was wild. And I mean, they're going over ask and all of these crazy things. But I think something to remember a little bit of advice would be never buy the best house in the worst neighborhood.

Even if it's a smaller house in a really good neighborhood, appreciation wise, it's going to be worth your while. And I think we sometimes forget that. So that would be one of my little tidbits of advice for new time buyers. And also to just kind of, you know, getting familiar with the different areas and where you're going to be the school system. If you want to have kids, things that you don't think about when you're just trying to get, you know, buy a house for the first time. But those are things that are really, really important. Yeah. Or if it's close to public transportation or you need to take the train, if you're saving money by living in Timbuktu, but then you have to drive and, you know, it doesn't really make sense. If someone is looking to sell their house, you have such great design aesthetic. What are some

of the staging tips that make houses more attractive to buyers these days? Well, staging is so important. And I think that sometimes you have the sellers that don't want to stage their house and they're like, Oh, no, I think what I have is fine. But a lot of buyers that are walking into homes, you know, they're in different industries, they could be in tech, they could be in whatever industry. When they're walking into a home, they might not have the imagination of what it could be. So A, if it's an empty house, you definitely do not want to sell a property with an empty house. But even if it's their furniture, it might not be the best possible opportunity to walk into. So staging is... I couldn't be a bigger advocate for

stage your house. We have great staging companies that we work with out here, but the little things like attention to detail that they do make a difference when you're going through a property. I was actually just looking at a property yesterday that I might put an offering and it was staged impeccably. And it made such a big difference because I could picture how I wanted to be living in the house. I could picture cooking in that dining room table that they had staged. Whereas if it wasn't staged, it could be older furniture. The house doesn't feel... It's a different experience. It's a different vibe. And it's someone else's memories in there. So staging is so, so, so important. Totally. I've seen houses where I'm like, actually, can I buy it

with the things? That happens all the time. No, it happens all the time. A lot of times, the buyers make me just buy the staging, which obviously the stagers love too. So that's why they go above and beyond. But that's so funny. But yeah, all of the houses that I put in offers on, they were all staged and i think it makes a big difference how much is it when somebody how much extra is it it depends on the house so i mean for and it depends on like what level staging but you know i just did a big listing up on that was 23 million and that was about i mean it's close to, you know, 80 grand, give or take, depending on the house size to be staged, but it's so worth it. And you get that back. Well, people don't realize

because at the time they're like, wow, that seems expensive, but you have to think about it as an investment. What you put into it, you're going to get that money back. You're going to get that money back. Double what you put in. Triple. Is there a way to pay after it sells? Or do you have to pay up front? No, you have to pay because the house could potentially not sell. So sometimes they work out deals with the realtor that you can split it or things along those lines. But you have to pay it up front because sometimes a house doesn't sell. And then people have second thoughts, want to stay in escrow, seller's remorse, all of those things. Not your houses. I mean, I've seen some open houses in LA and the lines are around the block.

I'm like, what are y'all giving away in here? This is bananas. It is. It's crazy. The real estate market has definitely been booming this past year, for sure. With the competitive market the way it is now, how can folks applying for homes sweeten their applications? Would you recommend removing contingencies and things like that? A hundred percent. I mean, if you can, I always suggest it. But you really want to make sure that you can. You don't want to remove the loan contingency and then you hear from the bank, actually, you know, because then you're going to have to... That's not a good idea. But if you can remove any of the contingencies, loan contingency, inspection contingency,

that's always something I advise my clients to do. Obviously, all cash, usually people like that. But more than anything, they're not going to take an all cash that's less than an offer that's more. Because at the end of the day, it might seem great, but you can get a loan after and things along those lines. But removing contingencies is always something to sweeten the deal a bit. Have you always been pro-home ownership? Or were there times in your life where you were pro-renting and save that capital to invest in your side hustle or other businesses? I've definitely always been pro-save, but I knew right away that I wanted to start investing in properties and buying. So I was saving at a certain time, but as soon as I was able to purchase a home... And as you know, a lot of people out there think if they have the

cash for a down payment that they can go out and get a home. You actually have to have strong tax returns and things like that, that I don't think everyone necessarily realizes because people come to me, friends and family, and they'll say, oh, I have a down payment. I want to look X. And I was like, well, you have to check with your bank because everything needs to line up. So as soon as I was able to and get a house that I really wanted and felt like home, I'm all about buying and investing. And if you don't have to sell real estate, hold it because you're going to rent it out. People

are going to pay your mortgage for you. And then you can go out and buy another property. So that's my philosophy as a real estate investor, for sure. I admittedly have not seen your show, although I'm probably the only person on the planet who hasn't. It is number one show. How did you view joining that show as something to lift your brand up for your business or to help elevate both real estate investing long term and Emily & Co? So that was something that it wasn't a no brainer. It was something that I had to think about because I've always been a really private person. Business has always been my thing. But I wanted to share my philosophies

and share what I've gone out and done throughout my career. And that was honestly what made my decision to do it. Because I went back and forth because putting my personal life out there for the world to see and judge, and they do, I i was hesitant and i talked it through with my family and and ultimately i really kind of wanted you know people out there to see i didn't come from you know i'm not this a lot of people thought you know for years because no one understood why i had nice things or or how i was able to buy these things or travel and things like that. And people would assume, oh, she has wealthy parents that take care of her. Or, oh, she has a rich boyfriend.

And that was so opposite of what the real case scenario is. I created my entire life from nothing and did it all as a female entrepreneur and a go-getter. And that's why I joined the show because I get messages all the time from young girls that are like, you inspire me to go work at work. And one person that I know started a candle company. She was going through a hard place and she watched the show and it inspired her to go do something that she's passionate about. So for me, that was why I decided to do the show. I'm so glad you brought that up, too. I've heard the same thing. Like, you know,

your family must have given you something. And no, it couldn't be farther from the truth. You know, I grew up in an immigrant family. My father died of an overdose when I was young. Like, it couldn't be farther from you had a silver spoon in your mouth. And it frustrates me when people assume that. There are also a lot of conflicts on shows like mouth. And it frustrates me when people assume that there are also a lot of conflicts on shows like that. So it can get kind of icky. How do you navigate that? I could not. But tell me how you deal with that. Yeah, so that's never fun. I mean, no one ever wants to feel like, you know, there's conflict or there's someone kind of out to get you. But of course, you know, in life that happens in general. And you. And on a TV show, of course, that's

going to happen too. So for me, I take the same philosophy that I do in life. And I always try and take the high road. I have throughout my whole life. And I've dealt with situations that weren't fun, even in high school, just being bullied by girls. And I wasn't even allowed to go in the hallway at the same time. I was being threatened to be... They were going to beat me up for no reason. My boyfriend was older. So that was an issue. Things like that. But for me, I just always take the high road. I've never been confrontational. I'm always the problem solver. So they call me the mom in the group. I'm usually the one taking care of everyone, fixing everyone's problems. So my biggest piece of advice for conflict is take the high road. And normally, fixing everyone's problems. So like my biggest piece of advice for conflict is take the

high road. And normally if someone's coming after you nonstop, it's an issue with them. It's an internal issue with them and it's not you. So remove yourself from the negative energy and focus on the positive. Amen. If it's hysterical, it's historical. I think I learned in therapy, it's on them. life is long the world is small don't be an asshole exactly yeah i mean i don't know if you like there is that other woman on the show uh wrote the how to be a boss bitch book i don't know if you saw that but somebody wrote one in 2017 well you actually you actually are a boss bitch. So I think we all know who the real boss bitch is. And I think I'm looking at her.

Yes. If you, yeah, girl, if you want to steal, you steal from the best. You steal from New York Times bestseller. Exactly. Mic drop. You are such a boss bitch. You're also so stunning. Like truly, truly stunning. And I'm a woman's woman. And I know that

there's so much more than how beautiful on the outside you are, like how beautiful your brain is. But I have to ask, do you think the way you look has been perceived or been over your career an asset or a liability? I definitely think it's been something where I've had to prove myself a little bit more. I mean, I've walked into countless meetings where people look at me and they're looking around, especially like investor meetings, because it is a male-dominated space. And I've walked in and they'll look around and they'll ask if I'm in the right place. And I've heard it so many times. Or, oh, is your husband coming? Is your boyfriend coming? And it's like, actually, I'm the one investing.

Yeah, no, exactly. So I've had to prove myself definitely more, but it's almost empowering because I, and I'm very polite when it comes to this, but I wait for my turn to talk when we're sitting in this meeting. And when they, once it's my turn and I never interrupt, I wait till it comes to this. But I wait for my turn to talk when we're sitting in this meeting. And when they, once it's my turn, I never interrupt.

I wait till it comes to me. And then I hit them with all of the questions and they are like, wait, she knows. And it always, it takes people back. So, I mean, for me, it's definitely been something that I've had to prove myself and it's been a little tougher,

but I like a challenge. I like to be underestimated. Exactly. I'm 100% underestimated, but it's fun. You're like, let me tell you about my evenness, sir. Exactly. Exactly. So for me, I love it.

I always like I'll see the faces sometimes and like the double looks and like, wait, she knows what she, yeah. So for me, it's kind of fun. For today's tip, you can take straight to the bank. I love Emma's tip to never buy the best house in the worst neighborhood. I think the point is so, so on point because a house's appreciation is not only dependent on the work you put into it. Appreciation is also driven in a big way by the neighborhood and whether it's on the up or on the work you put into it. Appreciation is also driven in a big way by the neighborhood

and whether it's on the up or on the outs. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. our mascots are penny and mimsy huge thanks to og money rehab team michelle lands for her development work katherine law for her production and writing magic and brandon dicker for his editing engineering and sound design and as always thanks to you for finally investing in yourself so that you can get it together and get it all.