150 Miles On A Bike Takes A Team: Mindset Monday with Robert Orfino

TRE 20 | The Right Mindset

 

At some point in our lives, we get stuck and we’re confused on what to do. When you’re stuck, it is necessary at this point to have a focus, by creating the right mindset to be unstuck and to move forward. You have to train your mind where you’ve got to stretch yourself over a long period. Jason talks about how he spent his weekend riding a bike for 150 miles for a charity and shares some lesson learned from doing that event and relating it to real estate. Also, discover why it takes a team to win.

Listen to the podcast here:

150 Miles On A Bike Takes A Team: Mindset Monday with Robert Orfino

It Takes A Team To Reach Your Goals

Two things. First, it is the Private Lender Summit. If you’re a private lender and you want to come to the summit, there is an application we need you to fill out. The first thing you want to do right away is text me at (281) 401-9008 and put PLS. I will send you the link so you can fill out the application and we’ll send you the secret location. We want to have a little sanctuary for private lenders where they can ask questions and talk about money, and things like that versus being all the clumped in rooms that are ten private lenders and a hundred borrowers. We’re trying to provide a different environment than that. If you’re a private lender and you like to come to our Private Lender Summit, text me at (281) 401-9008 or go ahead and direct message us on Facebook.

The second thing is we’re trying to figure out a way to thank everyone because we hit 1,500 Facebook viewers or so. That was a huge number for us. We want to be very thankful. We do have a short mastermind call. It’s usually only open to our big game hunters, our Airbnb folks, some masterminds, two of the three buy and hold masterminds and our members. We thought that to anyone who’s reading this to also text me at (281) 401-9008. This one is about getting unstuck. As a thank you, we’ll give you free access to a mastermind webinar that we do. We’re going to talk about things that you need to do to get unstuck and moving forward.

Everyone gets stuck out there at some point somewhere. Maybe you’ve signed up for a bazillion dollars in real estate education or you’re getting started and you’re like, “I’m so confused. I don’t know what the next step is.” A lot of times, it’s solving the problem for the next step.

It will be mostly Q&A. Fill up the funnel and let’s start answering these questions.

I did a little bike riding. I went to a BP MS 150. I’ve been riding this ride for many years. Veteran riders’ status starts at fifteen years. There was a guy next to me that ridden for 25 years. A bike ride from Houston, Austin to benefit Multiple Sclerosis research, patient care and family support services. It is the largest to date charity bike ride in the country. It’s a ton of people, somewhere between 9,000 and 13,000 participants and another 3,000 to 4,000 volunteers. They move an entire city from Houston, Austin through Central Texas in over two days. It is an incredible operation. There were a couple of years there where I was a Ride Marshal. When you’re a Ride Marshal, you’re a volunteer on a bike who are helping people out. It’s a lot of work. A part of the training for that is you get to go to the operations center and see how the entire thing runs. It is incredible.

A lot of CERT teams get involved. If you guys are familiar with the Community Emergency Response Teams that respond to hurricanes. Those are the guys and gals that if there were some mass casualty event, a terrorist event, that sort of thing, this is a great way for them to train because they’re moving all these people from one place to the next. The accommodations are incredibly nice. It’s that whole process of, what do you do with all these displaced people? How do you triage folks and all that? You’ll see a lot of law enforcement out there and a lot of first responders. It’s a great way for them to train. To see all that in the back end is pretty incredible. We did a little bike ride to La Grange and headed over to Austin.

How does everyone get back from Austin?

It depends. Some people will pick you up. We took the bus back.

I can’t imagine riding 150 miles and having to sit on a bus for two hours. That’s probably the most enduring thing.

What gets you up the next hill is how quickly you go down the hill that you’re in. Click To Tweet

Here’s how we do it. This is kind of you and me as a real estate team. We’re talking to people about real estate and they go, “I’m doing this and this.” I’m like, “Let me explain to you how I do it.” We ride with a team called Saint Arnold, a brewery here in town. They had the big flag out front, 2017 Mid-sized Brewery of the Year or something like that. They’re a big deal. They make some great stuff. When you ride into Austin, we have our own team tent setup. Everyone’s there hanging out. We’re taking team pictures, drinking a couple of beers with some of those beers may make it onto the bus. That’s how you survive the bus trip because it’s two hours. Quite honestly, everyone gets on the bus and all so excited, “It was so much fun. Good to see you,” and fifteen minutes in, everybody’s asleep. It’s either that or your friends or family come and pick you up and drive you back. It’s a nice bus and got a bathroom on it. You’ve got all your snacks. You got a couple of beverages. It all works out.

It’s riding the bus home from a ski trip. I hated them.

Most of this stuff is the mindset. You do your physical training and there are a lot of mindsets. It was the Texas Ironman in The Woodlands. We had a bunch of friends that were doing that. Everybody’s checking in on each other. Once you get past the physical, once you developed some level of endurance, it’s all mental. Once your body goes numb, it’s, “Can I put in fuel in the machine to keep it going?” The problem is when you don’t put the fuel in the machine, it’s game over. I always get a kick out of the diet crowd, the nutrition crowd, “You’ve got to go low carb, all protein.” I’m like, “That works.” If you’re only working for 60 minutes at a time. When you’re really putting in the time, you need all those carbs, you need all that fuel because you’re going to go all day long. We had a friend of ours that I think she was twelve or thirteen hours at the Ironman, moving the whole time. She said, “I can’t feel anything below my waist, even my toes hurt.”

Although everybody rides their own ride, it’s still a team effort. Our first 25 miles was in a small group. That’s a subset of our team. We were absolutely flying the first half of the day. Everybody’s got to ride their own ride at some point. Not everybody has the same physical endurance and the same mental endurance, people need a little bit more breaks. From a mindset standpoint, how do you relate this to real estate? I’ve got a big ride coming up, it’s 100 miles in Wichita Falls. It will be 100 degrees. They call it the Hotter in Hell 100. In that particular ride, they will pull you off the course if you’re not fast enough.

The way you train is you don’t train at 20 to 40-mile distances and get fast at 40-mile distance. You have to be fast at 100 miles. What you end up doing is pushing yourself to the 80-mile mark and the training starts. A lot of people miss that. “You can go ride 100 miles, go train, and do 30 to 50 miles and you end up in 100 miles.” If you’re trying to do it fast and efficiently, weightlifters do this all the time, where they take their self to the point of fatigue. Their fatigue is actually much quicker. It’s warm up and lifts. They can do it within an hour and a half. We have to do it in five hours or four hours because you’re out there so long.

There are some things in real estate that are the equivalent where you’ve got to stretch yourself out over a longer period of time, the training starts. The rest of that was to build yourself to that fatigue point. In the last twenty miles is where the real training starts where you’re going to push yourself to see if you can get to that last 100 miles or your training for 80 miles and you’ve got to push yourself to 60. You really start training from 60 to 80. It’s one of the life lessons that I always learn about these things because a lot of people don’t do it. That is you have to pedal on the downhills. People miss that all the time. You’ve got to pedal on the downhill. Many people that get, “I’ve got this downhill. We’d close this deal. We can take our foot off the gas.” What gets you up to the next challenge? What gets you up the next hill is how fast you’ve gone down the hill that you’re in.

I woke up saying, “We were going to close a few chapters. I’m already behind on the hiring.” I know we’re going to close three or four properties, but I’ve got to get the hiring going. It’s the same thing. Even when you’re hitting that hay down and I could take a break. You’ve got to keep going. Did you hit the wall at all?

No, I eat constantly. I started racing bikes when I was in middle school. I know what that feeling’s like, too, when you hit the wall, it’s awful. Even the best athletes sometimes can’t come out of it in a few hours and you’re done until the next day.

We have the Private Lender Summit. We’re trying to provide a safe space for private lenders.

TRE 20 | The Right Mindset
The Right Mindset: Although everybody rides their own ride, it’s still a team effort.

 

I kid you not, one of my lenders at an event one time, it was a vendor that went up and said, “Do we have any private lenders in the room?” He raised his hand. I looked at him at the corner of my eyes and I did the subtle shake of my head. I’m like, “You don’t want to do that.” He must have had the whole room on him. The next day, I’m talking to him on the phone. I was like, “You’re going to do that again?” He was like, “No.” I said, “We have a Private Lender Summit. You can go there. It’s a whole room full of people with money.” We talk about money stuff.

We talk about how to do deals. We do some deals together. That’s part of what we’re working on. It’s a safe space. We had responses from about seven or eight people who got money and ready to deploy that type of deal. This might be good for you to come on out. There’s a little bit of an application to fill out if you text me at (281) 401-9008. If you’re on the list already, you’re going to get the email. We’ll send the application. We’ll get you into the Private Lender Summit.

There’s not going to be 100 people in the room.

It’s a dozen. We’re popping our guests with tons of questions. There were a couple of people wanting to come because they’re in the middle of trying to foreclose on people.

If you’re in the middle of that, just come.

This’ll be a good night because we’ll ask Ashley a lot of questions about foreclosing on that note that you gave.

He loves doing this event because he loves getting all the questions. I like to play stump Ashley. “What about this?” He’s like, “Jason, that’s crazy. That’ll never happen.” We’ll have a lot of fun with Ashley of the Patten Law Firm. It’d be ten, fifteen of us. It’s a small group. We’re going to share with you guys all the stuff that we bought in the last couple of months and some other things that we’re working on. It is an open Q&A.

We’ll be talking about foreclosure.

One of the mindset lessons is you’ve got to pedal on the downhills. You’ve got to keep pedaling downhills even on the big one. There’s a big one right before you get to Bastrop State Park. I hit under 41 miles an hour going down that one. I couldn’t go any faster because there were three dudes in front of me and I was like, “You guys need to get out of the way,” so you pedal fast downhill because you want the uphills to be so much easier. If you apply the same amount of power downhill, it takes less power to go up the next hill. I’ve ridden a lot. I only ride ten, fifteen times a year. I’m not in the shape I was when I was racing, but to go from 140 to 150 watts to 320 going uphill, it was an awful experience. It’s much easier to run down that hill as hard as you can and when you’re going up that hill, continue keeping that momentum.

If you are extraordinarily disciplined, you’re going to build wealth. Click To Tweet

Where I see a lot of real estate investors fail is they get up to the top, they get this deal, and they go down the hill. They sold the deals, it’s great, and they’re coasting. They’re going to all the REIA clubs bragging about how they’re killing it. All of a sudden, “We’re at the bottom of the hill. We’ve got nothing here.” They’ve got to climb from zero. One of the lunch stops starts at the bottom of a hill, which was awful. You sit down, you have lunch, and you’re feeling pretty good. You pull out and you go, “This is cute.” It’s a climb. While you got whatever sandwich it is they gave you, you’ve got this monster climb coming right out of lunch, “This is awful. Why did I even stop?”

I noticed from your Facebook because I was following you and your wife. I didn’t see a lot of pictures of you sweating, breaking down and all that stuff. I saw a lot of you drinking beer. I’m like, “Are these 150 miles of a big bar and racing to the next beer stop?”

This is what happened. Day one, we’re riding into La Grange and I did a couple of videos. I did a video from the start, a video from lunch, and typically, a video at the finish for that day. In Fayetteville, and if you’ve never been there, a gorgeous little town, I absolutely love it every time we go through there. That’s where they’ve put the Bubble Bistro or something like that. It’s where a lot of folks with MS hang out. The whole town comes out. They host all these people. The streets were lined with folks. They had these bubbles all over the place. There’s a Dallas gal with a little dress on and big blonde hair. She’s right on the corner sitting as you take a right, she’s like, “Come on, we’ve got free beer.” We’re like, “Okay.” We’re still 40 miles from the finish. We pulled in. That’s when we were taking pictures. There were a whole bunch of us from the team.

This is a rumor I heard that there may have been some of the folks from the brewery that stopped by and said, “I think we’re going to have to sponsor this spot,” because everybody’s taking pictures. It’s a huge marketing thing. When we finished each day, there were adult beverages there, too. It’s not quite a party scene. It’s what I show on Facebook. Somebody asked me, they said, “You put everything on Facebook.” I’m like, “No. You see 10% of what I do on Facebook. There’s 90% you guys don’t even have an idea.”

All the stolen ones, you only see about half of it either. It’s a good parable. It’s a good analogy. It’s like, “This is a race and it’s a long race. No, this wasn’t sprinting. This wasn’t a two-mile sprint for you. It’s 150 miles. Along the way, you had a little fun.” It’s okay to have a little fun along the way. It’s okay to take a rest. It’s okay to do things but understand what that end looks like and have that end goal in mind. That’s a perfect analogy. We’re talking about getting started, getting unstuck and moving forward. I’m going to give you the tip of the day. I’m ripping off Michael Bernoff. I’m giving him total credit. If you are stuck, do this one thing, clean your desk. Prep your workspace and if you want, go ahead and take a picture of it before and after, and tag Jason and me on Facebook. If you’re stuck, if you’ve stopped, if you got to get restarted, your desk is a mess because you get into that chaos mindset. You don’t have anything in order. The only thing we want you to do is to clean your desk.

I’ll give you a good analogy. I don’t feel right at home if my garage is a mess. The whole house can be a mess, but the garage, for some reason, drives me crazy.

We want to get unstuck. I’ve got to give credit to totally stealing this from Michael Bernoff who’s a mentor of mine and I’ve paid for his classes. He’s fantastic and he’s one of those great guys. He’s a pretty serious dude when it comes to mindset. If you want to take it a step further, identify two books you’re supposed to be reading.

That starts a whole other discussion. Which two books should you be reading?

The easiest and the first one that every real estate investor should have been reading is the The Millionaire Real Estate Investor by Gary Keller. He lays it all out. It’s like, “There are no secrets here. Here it is.” It’s $15, go get it. I would not recommend Think and Grow Rich. It’s a tough read.

TRE 20 | The Right Mindset
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

I recommend the original 1937 edition, but you’ve got to be a reader. You need to read that book once a year. I read it every year, more on a vacation at the beach. It’s a tough read if you’re not used to reading a lot. I’m reading all kinds of stuff right now. I’m reading Jordan Peterson’s book. I’m starting to get through that. I had that runner in back of my mind. I want to start David Goggins’ book. Everybody keeps telling me, “You’ve got to read it. You’re going to love it.” He’s a former Navy SEAL, ultra-marathon super endurance athlete. He’s an absolute animal, but what other books?

I’m a big fan of The Millionaire Next Door. You need to get the most current version. The version before Dr. Stanley passed away because it’s after the real estate crash. It’s great if you’ve got a data-driven mind. You’ll begin to see trends in people. It tells you who the real wealthy are. Dr. Stanley went and researched where the real wealth was in this country and the profile of a wealthy person. It’s not the $4 million home, two Venzos in the garage. It’s not that at all. It’s the complete opposite of it, which is why you’ll see every now and then on Facebook, I’ll put a picture up on my wallpaper. It’s a piece of paper over the watch. There’s another piece of paper that goes over the steering wheel and it says Rolex, and the other one says, Mercedes. Everyone’s like, “That’s on your vision board, right?” I’m like, “No, you have to understand we’re making fun of people here.”

That was one of the two books that got me going. I’ll give you one of the secrets of the book, marry a teacher. Statistically, those self-made millionaires are married to teachers. It’s 40% something or something like that. It’s a high number.

It’s teachers, engineers, scientists. It shouldn’t be a shocker that people have high impulse control. It all comes down to discipline. If you are extraordinarily disciplined, you’re going to build wealth. Somebody in that relationship’s got to be an adult. Somebody has to have some impulse control there. Typically, teachers are good engineers, scientists, STEM people, nurses. They typically have a pretty high degree of that.

Clean your desk, take a picture before and after, go ahead and tag Jason and me on it. If you want to get crazy, pick two books, whether it’s audible or you can go and buy them on Amazon, and physically read them or whatever. Pick two books and clean your desk, that’s it. No phone calls. No spreadsheets. No performers. Clean your desk and get two books going.

We’re like the first real estate radio show. I know there are a whole bunch of other shows that listen to this and be like, “Can you believe those guys? They said to clean your desk and read your books. Don’t you want to be making offers, raising money, and look at properties?” No, we’re not doing that.

We’re going to clean your desk and get your two books going.

We’ve got a deal right now. He said, “I’ve never seen this before.” I’m like, “Yes.” If I hear that once a year out of him, I know we’re doing good. “Jason, I’ve been doing this for a long time. I have never seen this before. I don’t know how this got done.”

He strikes me as the guy who’s going to use our beach house.

Some people get ahead of you, some people fall behind you. If you do it right, you all end up at the same place. Click To Tweet

I think that whole crew over there.

I walked in with a contractor.

This is the beach house down in the hunting ground.

Yes, I said, “This room needs to get done first.”

It’s you and Catherine’s room.

“This living area needs to get done second and we’ll do these two bedrooms down here next.” The top floor is in the middle of a rehab. He said it’s going to take him seven weeks. I immediately put ten in my head. We’re going to outsource a few of the things. I will probably get someone for the siding, the concrete and the Jacuzzi. We have three outsources we have to do and we’re starting to line those guys up. It was exciting and I did a little video on my materials running through it. No ceiling fan, needs a ceiling fan, needs new baseboard, needs new doors. That way I can build up my list for our folks to go ahead and run through and get all that material specs on.

It’s definitely a cool place. We’re buying it for $246,000.

We put in $80,000. It could be worth $450,000 to $500,000.

We’re going to Airbnb it when we’re not there, but it’s our corporate HQ when we’re in town.

TRE 20 | The Right Mindset
The Right Mindset: Where a lot of real estate investors fail is they get up to the top and get this deal, and then they go down the hill and they’re coasting.

 

We’ve got a condo. This one is probably going to be in my personal portfolio. It’s kind of on the beach. You can see the water for sure. $10,000 worth of furniture comes with it. It’s not going to be able to open for two years. I was like, “Buy it now, take all that furniture, and move it over to the beach house.” We’re good to go. There are a washer and dryer there and everything. When the time comes, we’ll get the new countertops, new doors, new bathrooms, all set up on that.

People will come up to me every now and then and go, “You’re having a whole lot more fun at this than you did a couple of months or a year ago.” That’s another thing that hit me. I’m riding and I’m thinking at the back of my mind, “I remember being here,” and I did virtually no training. It was absolutely miserable because I was so busy with everything else. What a difference twelve months make?

We manage our crisis fairly well. When you manage the downside, there are a lot of upsides.

In the back of my mind, I’m like, “This is so much better. It was so crazy.”

We have an organization where we don’t need to flip 100 homes a year to survive. That makes things a lot easier.

I would have people come up to me and say, “I want to go flip 60, 80 houses a year.” I’m like, “Let me show you what that looks like.” We also started building this rental portfolio. It was the same thing. You have this massive single-family rental portfolio. It’s not passive, it’s just not. You start looking at the Airbnb model and I’m like, “What’s bigger? What’s better? One or ten?” Everybody says ten. I’m like, “No, one with ten times the return.” This is the dirty little secret, maybe I’m going to go ahead and float this one out here. You and I don’t have to do anything else.

As of September 1st, we could be done.

We’re completely done. We started making offers on stuff in September. In less than twelve months, we can absolutely be done and live well on what we’ve done the last couple of months.

I’m seriously considering it. I’m like, “We’re going to have 50 doors down here. There’s going to cashflow. We’ve got our apartments over here. We’ve got 25 beds to Airbnb.” I love the radio show, but five, ten wake ups, it’s tough.

If you want to go fast, go alone. If you want to go far, go together. Click To Tweet

When I have this conversation with a buddy of mine, he’s a banker. He was like, “What’s your number?” I was like, “I don’t know. What are you talking about? What’s your number?” He was like, “There’s a point at which you go, ‘I don’t know if I really want to go into the office.”’

It’s not the numbers. It’s how much time I want to put in. I’m down for a couple of years. My goal was to get out by the time I’m 55. I’m 52 right now. I’m down to work all the way through to set it up to have maybe ten, fifteen free and clear personal portfolios, and inside our organization having the 100 rental doors and maybe 50 Airbnb beds. That’s a nice organization that I can contribute to. In a couple of years, that I can for sure hire someone much smarter than I am to manage this.

It’s not too much to manage.

No, it’s completely manageable. That’s where we want to keep it. If we’re going to go out and buy a 400-unit apartment building, I’d rather buy a 400-unit apartment building to flip. It’s off our shoulders in 18 to 24 months.

I do it all in a Roth. I don’t have any desire in the 500,000 doors, the back and forth with the bank, and all the borrowers and the lenders. You get to a point where there’s trying to become a billionaire.

I don’t want to do that.

It’s a lifetime of work. You’ll hit it somewhere in your 60s and early 70s.

Those guys look great for 60 and 70. They have a great life. I’m 55 and I want to be done.

I was riding and I always forget how much I enjoy it. I’m like, “I’d like to be doing this every day.” I can tell you doing that every day is counter to becoming a billionaire. Billionaires aren’t riding 30, 40 miles a day.

TRE 20 | The Right Mindset
The Right Mindset: Billionaires aren’t riding 30, 40 miles a day. That’s counter to becoming a billionaire.

 

We’ll do some flips over the next couple of years to build up a little war chest, a little emergency fund. That’s what it has to be. “I’ve been broke for the last 30, 60 days. I’m going to be broke for the next 30.” I’m like, “I’ve got to go buy furniture.” It was an $8,000 furniture I’ve got to go put it down in Texas City. I’ve got to get that thing going. There goes that cashflow. I’m okay with doing this, but after that, once these things are performing, I don’t want to be broke anymore.

It’s what I like to call Grant Cardone style broke.

I’m not missing any meals.

This is, “We got another deal we’re doing. Where are we going to get the money from?” I’m like, “I’ve only got a couple of $100,000 in this account.”

There’s $50,000 over here for I got to buy furniture for seven units.

That’ll make $15,000 a month. It all works out. When I do events like this and I need to do it more often, there’s a lot of time to reflect while you’re out there. It’s a good analogy to your real estate career. Anything you do in your life where you start out, you’re excited, and you’re having a good time. You’re moving and all of a sudden, you get stuck somewhere or maybe your stomach doesn’t feel right, or you get a flat tire. I saw somebody repairing a chain on the side of the road. I was like, “I hope that doesn’t happen to me.” Repairing chains are the worse. I’ve seen a guy break a seat post before. I was like, “You’re done.”

It’s a great little analogy for life where you’re riding along, some people get ahead of you, some people fall behind you. If you do it right, you all end up at the same place. You end up there at different times. That’s the difference. You can do it by yourself if you want to. It’s not any fun. I prefer to do it in a team. It’s a lot more fun as a team. There will be times you’re out there solo. One of my favorite quotes is, “If you want to go fast, go alone. If you want to go far, go together.” That is a perfect quote for a lot of things in life.

We’ve asked people to do a couple of things. If you’re stuck, if you want to get moving, the only thing is going to be clean your desk, take a picture before and after, and tag us on Facebook which I totally ripped off from Michael Bernoff. The other thing is if you really want to get started, pick two books. We talked about The Millionaire Real Estate Investor and The Millionaire Next Door. Pick two books and start reading those. Take some action, but it’s more than the minds. It’s applying, clean your desk, get your workspace prepped, get ready to move. Set up two books that you’re going to start working on to expand your mind and start doing it.

We thank everyone. We appreciate it.

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