EPISODE · May 10, 2026 · 19 MIN
SB 9 Explained: Build 4 Units on One Property
from The Residual Real Estate Agent Show · host Jose Luiz Morales
Most people think SB 9 explained means understanding a law. What it actually means is understanding why you might be sitting on $400K in land value and not even know it.My guest Eric Paul Escobar, CEO of Esco Builders, has actually completed an SB 9 lot split in Downey, California. Not theorized it. Not coached about it. Done it. It cost $50,000 and produced a back lot worth $300K to $400K. We break down exactly how that happened and whether it makes sense for you.Here is what we cover:✅ What SB 9 explained really looks like when someone builds it from the ground up, not just how the law reads✅ The difference between an SB 9 unit vs ADU when it comes to appraisals, ARV, and refinancing, and why this matters more than most investors realize✅ The full SB 9 permitting process step by step, surveyor, architect, planning department, civil engineering, county recording, and permits in the right order✅ Why the lot split process steps California investors need to follow are different in every city and why getting that information in writing is non-negotiable✅ How to subdivide land in California using SB 9 with or without a lot split, and which lot types give you the best shot✅ The honest truth about ADU vs duplex investment value when it comes to comparables and what lenders actually look at✅ Why very few people are doing lot split California real estate deals right now and what that means for the investors who are willing to be patient✅ How Senate Bill 9 California real estate law stacks with ADUs to get you up to 4 units on a single family lotThis is not beginner content. But if you are ready to go deeper than ADUs, this is where the real land value is being created right now.
What this episode covers
Most people think SB 9 explained means understanding a law. What it actually means is understanding why you might be sitting on $400K in land value and not even know it. My guest Eric Paul Escobar, CEO of Esco Builders, has actually completed an SB 9 lot split in Downey, California. Not theorized it. Not coached about it. Done it. It cost $50,000 and produced a back lot worth $300K to $400K. We break down exactly how that happened and whether it makes sense for you. Here is what we cover: ...
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SB 9 Explained: Build 4 Units on One Property
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