Podcast Summary: Problems to Profit with Preston Brown
Episode: Mario Ayala's Real Estate Rise, Home Building Leap, and Lessons on Turning Competition Into Lasting Success
Date: August 21, 2025
Host: Preston Brown
Guest: Mario Ayala
Episode Overview
This episode tells the raw and riveting story of Mario Ayala’s journey from humble beginnings in El Paso to becoming a major player in the real estate and homebuilding scene—narrated with humor, candor, and deep lessons by Mario and host Preston Brown. The two recount their evolution from fierce competitors and legal adversaries to trusted collaborators and friends, exploring the dynamics of real-world business rivalry, mentorship, resilience, and how parenting and personal growth can transform even the most fractured relationships. The episode is packed with practical insights for entrepreneurs, real estate professionals, and anyone facing tough professional relationships or transitions.
Key Discussion Points & Insights
1. Building from the Ground Up: Mario's Early Career
- Mario’s journey starts with humble “chicken guy” jobs and call center gigs in El Paso, where he cut his teeth in sales ([04:11]-[05:56]).
- He describes Saratoga Homes’ “boot camp” training as a foundation for toughening up:
"If you’re new to that type of environment...they drop something like that on you...they’re blunt with you." – Mario Ayala ([06:32])
- Rapid rise: After being fired, Mario quickly earns his real estate license, assembles a tight team, and takes his first leap into the real estate world by founding the Mario Ayala Real Estate Group ([06:32]-[09:54]).
2. Mario and Preston: From Adversaries to Allies
- Preston and Mario recount their infamous “coup” attempts and legal battles, including signing aggressive non-compete agreements and a memorable $5 million lawsuit ([16:40]-[23:06]).
- Savage rivalry moments:
- Mario's billboard that directly faced Preston’s office brings humor and pettiness to the business rivalry:
“It was savage as fuck. But I really enjoyed that billboard.” – Preston Brown ([24:28])
- Mario's billboard that directly faced Preston’s office brings humor and pettiness to the business rivalry:
- Rifts give way to “adversarial respect” and eventual friendship catalyzed by their sons’ friendship at school:
“God put us in a position where we had to choose between our anger and being a good father.” – Preston Brown ([34:10]-[34:21])
3. Mutual Growth, Respect, and the Power of Reconciliation
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Both share candidly how parenting, maturing perspectives, and recognizing each other's skills turned them from rivals into collaborators:
"All of a sudden, I'm giving you that respect that you deserved years before, and it's like, okay, well, can we look at each other as dudes instead of enemies?" – Preston Brown ([31:00])
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Personal stories illustrate how human connection (even forced by circumstance) rewires business relationships:
“If I’m still cutthroat with Preston, then my son...is gonna feel it whenever...can I go to Everett’s house? Or can Everett come over?...So I knew that was sometime in the horizon.” – Mario Ayala ([33:30])
4. Real Estate Brokerage: Challenges, Evolution, and Advice
- Both dissect the slow decline of the brokerage business model:
- The liability/profit gap for brokers, rise of fintech, lower barriers to entry, and declining value for agents.
"[Residential brokers] gave away everything to the fintech companies. We gave away all of our data." – Preston Brown ([63:28])
- NAR lawsuits and commission compression:
"Since that time, we've seen the average resale commission go from around 3% to 2.5%. That's almost a sixth of the money that's disappeared in less than a year." – Preston Brown ([66:27]-[67:54])
- Mario’s advice for agents:
“Stop spending money you don't have to impress people you don't know...invest it in some land, invest it in some acres, start some flips, keep some flips, buy a duplex...Go for the long term and you will get the reward down the line.” – Mario Ayala ([70:45])
5. Switching Gears: The Leap into Home Building
- Inspired (and challenged) by Preston, Mario describes the mindset and financial fundamentals behind his transition from brokerage to home building:
“Brokerage…is a popularity contest…what I did care about was stacking homes. So I was just buying homes, flipping them, keeping some, working my lines of credit with the banks.” – Mario Ayala ([46:01])
- The nuts and bolts of Mario’s preparation for home building:
- Investing in a design center before even building his first home
- Importance of “dry powder” (free capital), strong industry relationships
- Strategic plan development: “I need to develop plans that fit on every single one of [the top developer’s] standard lots.” ([49:46]-[50:47])
- Rapid scale: Moving from planning to having five homes under construction and 50 lots under contract ([45:25]-[51:10])
- Preston’s validation and encouragement for Mario’s trajectory ([51:10]-[53:04])
6. Growth, Giving Back, and Redefining Success
- Deep reflection on the shift from “fighting for the top” to working collaboratively and leaving a legacy, prompted by the evolution of their relationship and watching their children’s friendship.
"If you become radically successful, that doesn't take anything away from me...I'd rather you be a winner in the market...Friends, respect, competition..." – Preston Brown ([55:24]-[60:23])
- Preston’s philosophy on giving back and helping former rivals:
“When you get to financial success and you start saying, well, I have everything I want. What now? ... Having a lot of money is nice, but now I'm going to live on how much can I give?” – Preston Brown ([55:24])
Notable Quotes & Memorable Moments
- On Burned Bridges and Rivalry:
“You got to at least leave, you know, that little rope strand bridge or something to climb across that you can rebuild. To be able to completely burn a bridge, that’s foolery.” – Preston Brown ([03:11])
- On Aggressive Real Estate Training:
“Once you jump in there it’s like…don’t let that be your excuse next time. And everybody from that day on was like, okay, that’s the tempo here.” – Mario Ayala ([06:32])
- On Three-Week Real Estate License:
“Nowadays, when I hear people, 'Oh, I've been getting [my license] for the last seven, eight, nine months.' And I'm like, why? It took me three weeks.” – Mario Ayala ([06:32])
- On Market Disruption:
“None of them understood marketing…if you love builders, it's easier to be the builder than it is to make a builder successful.” – Preston Brown ([34:49]-[36:55])
- On True Collaboration:
“The person you hate or think you hate now might be somebody that you’re friends with later…that’s a problem to profit that I’ve personally gotten to live.” – Preston Brown ([53:04])
- On Brokerage Survival:
“If you’re not doing two to three closings a month, this isn’t your passion. Get out.” – Preston Brown ([73:04])
- On Building Ambition:
“Nothing is too hard. And once I set my mind to it, it's happening. And now the sky is the limit.” – Mario Ayala ([74:07])
Timestamps of Important Segments
- [04:11] – Mario’s early hustle: chicken guy, call centers, discovering sales
- [06:32] – “Boot camp” at Saratoga Homes and lessons in competitive environments
- [09:54] – Starting the Mario Ayala Real Estate Group
- [16:40]-[23:06] – The infamous coups, non-competes, lawsuits, and the legendary billboard
- [25:37]-[28:07] – The kids become friends, parents forced to talk, personal rifts heal
- [34:10]-[34:21] – Parenthood as the catalyst for reconciliation
- [46:01]-[51:10] – Mario’s switch from brokerage to builder, new business plan, and “dry powder”
- [62:23]-[68:17] – Deep dive: brokerage model decline, fintech threats, agent advice
- [70:45] – Mario’s advice to agents: invest for the long term, avoid the glam
- [74:07] – Mario’s mindset for success as a builder
Where to Find Mario
- Instagram/Facebook: MRG Homes, MRG Realty, MRG Properties
Takeaways for Listeners
- Never Burn Bridges Fully: Relationships can rebound in seemingly impossible ways. Genuine respect often stems from rivalry.
- Real Estate is Evolving: The ground is rapidly shifting under traditional brokers and agents—invest in skills and assets, not just appearances.
- Mindset Matters: “Nothing is too hard” when you prepare, build relationships, and adapt.
- Collaboration is the New Win: Sometimes your competitor can become your biggest ally—and the enemy of today might be a key to future profit.
For more stories, strategies, and unscripted wisdom from top entrepreneurs, subscribe to Problems to Profit with Preston Brown.
