When a big name enters a big city, everything around it gets bigger and most likely, more productive. With Tesla in Texas, jobs will mushroom and other industries, especially real estate, will thrive. Robert Orfino talks about the opportunities Elon Musk can bring to their playing field. With Tesla’s giga factory, Texas will be a stronger contender in the market. Listen to Robert as he discusses Tesla’s innovations and so much more!
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All Things Tesla With Co-Host Robert Orfino
Rick, Gigafactory Texas. If you haven’t seen the news, Elon Musk put a Twitter poll out there. He said, “Giga Texas?” The choices were “Hell yeah” and “No.” The final result was 80.2% hell yeah. It makes a lot of sense. Texas is roughly the 10th or 11th state in the country for manufacturing. Let me talk to all my California and North East investors that are thinking about coming into Texas. First, Elon is already here. If you’re not aware, SpaceX is down past Brownsville right at the border, South Padre Island. They’re doing rocket launches and they’re also building the big ship that’s going to Mars. Let’s all admit, whether you like electric vehicles or not, that Elon Musk is a genius and a billionaire. We will refer to him from here on out as the billionaire genius. The billionaire genius is already down in Texas. He flies in a lot and he’s working on his SpaceX. This is the rocket that they have decided to use stainless steel and a honeycomb body frame inside. Do you know what else stainless steel is going to be used for, Rick? The cyber truck.
We’re already building rockets. We have a manufacturing plant where we’re stamping stainless steel and forming it here in Texas. It might make sense because the billionaire genius’ true genius with Tesla is not that it’s an electric vehicle, it’s vertical integration. There was a quote in 2013 where he said. “I can only go as fast as my slowest vendor.” He started integrating more and more in-house. He started making his own batteries, stamping his own body frames, his own assembly line, and building their own seats. If we’re already working with stainless steel in Texas, it might make sense that we’re going to build the Cybertruck here. If we’re building the Cybertruck, maybe we’re also building the semis here. A lot of people responded. Is this a done deal or is this something he’s already planned on? He’s not going to mention it unless he’s already done a little work on it or at least some thought.
I’m super excited about Gigafactory Texas. It might make sense at the manufacturing bases in this Houston-San Antonio-Austin triangle. Think, Houston 292 Austin down 35 and then the 10. Maybe it’s San Marcos, maybe it’s New Braunfels. Maybe it’s somewhere between here and San Antonio. I imagine there will be a million square foot factory here in Texas employing 3,000 to 5,000 people making the Cybertruck. Houston is a massive port. You can ship anywhere in the world from Houston. You don’t have to go through the Panama Canal to deliver products to Europe or to the northeast. You can hit the Mississippi, you can use the train lines. It is a central hub here in the South.
On top of that, Texas has a massive amount of engineers. This is one of the largest concentrations of engineers in the country, specifically here in Houston. There’s an educated workforce. I think we’re somewhere between 10th and 12th in manufacturing. There’s a manufacturing workforce and there’s no state employment tax. The cost of living in Sealy, Texas is much cheaper than Fremont, which is outside of Silicon Valley. I think we’re going to see a Gigafactory here in Texas. It will be the fifth such factory in the world. We know that Texas can be friendly to business when it wants to be. I’m super excited.
What does that mean to real estate investors? When they built a Gigafactory up in Sparks, Nevada outside of Reno, real estate went crazy. Rents went through the roof. When SpaceX went down to South Padre Island, all the small houses were bought out, flipped, and then rented. How amazing is that? What a nice little boom that’ll be for the ginnings market. It’s right there in the middle. I’m sure we can find a couple of hundred acres. Be prepared. This is coming. We’re excited. To understand transportation is his genius. At the end of the day, Elon’s great contribution to our society is the cost per mile per pound. When you’re looking at those semi-trucks and if they can fine-tune and perform the way they should be, it will be cheaper to move on Tesla semis and it will be by rail. That’s in the flat part of the country. What he’s understood is how to move things cheaply. That includes Mars. We’re excited to have the billionaire genius come back to Texas and start a Gigafactory. We might see what that does to the real estate market wherever it’s chosen.
If you want to learn about our mastermind, 506(c) fund, or crowdfunding we’ve got going, it’s almost topped out. Text us at (281) 401-9008. For all my California friends, we’re going to be starting a mastermind for folks in California who wish to buy in the South East Texas market. If you want to get in on these 1.4, 1.5 DSCR properties, we’ll be in California. It’s the same criteria as anywhere, 700 FICO, six-figure income. You’re going to need to be able to put some cash on the table. We’re going to show you how we do it. We’re not offering turnkey. We’re not another turnkey guy coming through giving you a bad lunch and trying to get you to invest $25,000 in a house in Indiana. We’re going to show you how to do it. You’re going to need to be a little hands-on.
You’re going to need to come to Texas to look at your properties and understand the neighborhood. If that’s what you’re looking to do, you like those big margins, we’ll be there. We’re talking about the billionaire genius, Elon Musk. We look at him all the time. He’s a Bond supervillain. If anyone remembers The Hitchhiker’s Guide to the Galaxy series, Elon is putting starship A and starship B together so that he can move on to Mars. If anyone gets that reference, it’d be great if you could text me at (281) 401-9008. Let me know you’re a Hitchhiker’s Guide fan. Anyway, maybe he is trying to move people and start a new civilization on Mars. It sure looks that way.
The Boring Company has a tunneling crew that will need to tunnel on Mars because the atmosphere won’t be ready for us. The electric vehicles will perform on Mars because you can’t have internal combustion. There’s not enough oxygen. We’re going to need to create all that power needed on Mars so solar is going to be there. For those of you who haven’t seen SkyLink, this is when it starts getting into that. Rick, do you know what SkyLink is? Elon is sending up 490-something low Earth orbit set satellites to create an intra-internet for the entire planet. It’s twenty times faster than we’re getting now. He will be everywhere. If you do it on Earth, you’re going to need to do it on Mars because you’re going to be able to need to communicate. You can set up that satellite system. He’s working on manufacturing and vertical integration. There are not going to be a lot of suppliers up on Mars so you’re going to need to build it yourself. Maybe that’s the motivation in building starship A. In starship B, he’ll be packing up all his good inventions and ideas and going off to Mars and starting a new civilization. I think he’s a super-genius, a Wile E Coyote. His ideas keep rolling.
If you watched his Joe Rogan interview, it was good. There was a point where Joe says, “Have you figured out air conditioning?” Elon smiles and he’s like, “We have ideas about air conditioning.” Joe said, “Let’s go.” Elon responded, “We’ve got to work on electric vehicles. We’ve got to work on solar. We’ll get to electric. We’ll get to air conditioning.” He figured out air conditioning. He’s built a car from the ground up. He said only 7% of his vehicles are common, meaning 93% of his vehicle he had to create. Tires, rims, brakes, and brake pads, but everything else is his. Jason and I are big fans of Elon. We love vertical integration. In fact, I’ll tell you what we’re doing in real estate is vertical integration. If that makes sense to you, that’s what we’re doing. If that doesn’t make sense to you, then we’re just buying some houses. Gigafactory Texas will be a good boom for the State of Texas. We should embrace it. When we talk about EVs, the marketplace, and all that stuff, there are some people who get a little nervous about the future.Whether you like electric vehicles or not, Elon Musk is a genius and a billionaire. Click To Tweet
What’s it going to do to the oil industry? Eventually, it will hurt the oil industry significantly. What’s eventually? I don’t know, maybe a decade or more. This guy has barely made a million vehicles at this point. We’ve talked to folks who have Teslas. Every one of them has said it’s the best car they’ve ever owned. One person said to me, “It’s like every car I’ve owned before was broken and this car finally worked.” We’re going to get our Tesla fairly soon here. We’re excited about that. Having the Tesla Cybertruck here in Texas makes a whole lot of sense. Here’s my thing. In China, they have four Chinese characters on the back of every Tesla they make. It’s like, “Quality, strength, and durability.” I would love to see the Tesla Cybertruck have a little stamp on the back that says “Made in Texas,” or “Texas Strong.” How badass would that be? It’s coming. Get ready for it.
We’re talking about change, Gigafactory Texas, billionaire genius Elon Musk, and electric vehicles. People will be driving electric vehicles. It’s going to take off. It’s going to happen. Get ready for it. For probably 90% of you that are reading, it will happen in your lifetime. In the next several years, we’re more than likely going to be driving an electric vehicle. I don’t think the internal combustion engine is going away in the next five years. I think it’s from 25 to 30. Whether you believe in global warming or not, who cares? Forget that. That’s not the merit on which these vehicles are being sold. Its battery life has a 0.5 million-mile target.
With the drivetrain and motors and frame having a million-mile life, 0.5 million miles on the battery, 1 million miles on the actual drive train. That durability will move people over into electric vehicles. You’ve already seen OPEC, they’re going to slow down production and drive up the price. Inflation, taxes, and all those things move the price of gasoline up. When I fill up my tank, it’s about $40 to $45. I’ll be able to do that on $6 and I’m in a vehicle that’s good for 500,000 miles. It’s the most fun, perfect vehicle I’ve ever driven in my life. There are not a lot of logical arguments. It goes emotion-based.
Let’s apply the same standards we talked about to your electric vehicle. The electric vehicle that I’m looking at is going to be about $60,000. Do you have $60,000? No. Do I have credit to get that loan? Yes. Do I have a good job? I do. Have I done my research? I have. What do I need? I need to get a charger in my garage. I need to talk to an electrician. My panel is huge. I’ve got 220 in my panel. It’s a massive panel box. Why they upgraded the electric panel and not the plumbing is beyond me in my house. At some point, someone upgraded the electric massively. It’s solar-ready.
I’ve got to get my charger installed and make sure my electric bills are set up. There’s someone out there advertising free electric at night. That’d be good for me if I’m charging my car at night. Set the battery up to start charging whenever that free electric turns on. Maybe I’m going to put some solar panels on the garage. The garage has got a direct line of sight to the sun. The back of the house, not so much. We’ve got trees to keep it cool. We like that. What’s next? I order my Tesla online. Great. After that, what’s the worst thing that could happen? It gets stolen. I have insurance. Driving to Dallas and I run out of juice is probably the worst thing that could happen. Push that 300 miles. I got the air conditioning going. I’m driving up against a headwind. My 300-mile journey goes down to 240, which puts me in the middle of a cow field. That’s the worst thing that could happen.
Same thing back to the house. Do I have a 700 FICO score? Do I have a six-figure salary? Do I have $50,000? Yes, yes, yes. Do I have time to educate myself? Yes. Can I find an agent that works with buy and hold investors? Yes. Have them make some offers. Buy the property. Do I manage it or do I hire a manager? What’s the worst thing that could happen? Once you answer those questions, everything else is an excuse. You’re asking fine-tuning questions when you haven’t even picked up the guitar. You’re looking for the capo and you haven’t even opened up the case.
Most of the difficulty in becoming a landlord is between your ears. We have a mastermind that brings people together. A lot of those people are ready to move, they take action. About 80% of our group has moved forward. Some people have not and we’re going to have a conversation. Most of it is simply asking questions that are fine-tuned questions and using that as an excuse to stop. “It’s too cold in the room so I’m going to fidget and put my jacket on.” “It’s too hot in the room.” “I’ve got to go to the bathroom.” “I’ve got to get something to eat.” All these excuses that aren’t critical, fine-tune these.
“I’d love to go to Corpus Christi, Robert.” You go down there and check it out and start getting some investments going down there but soccer practice. Got it. I’m not telling you to stop spending time with your children, but I would hazard to guess that your children will appreciate a legacy of wealth versus soccer practice. We’re not even talking about the championship game or a Saturday game. We’re talking about practice. “Can’t make it. Practice.” I got it. “No Rob. You don’t understand. It’s practice.” I have it. You said no. I get it. You don’t need to justify anything to anyone. You’ve simply made a decision. You made the decision no. I’m going to buy that Tesla. You made the decision yes.
The challenges that you’re facing to get into the buy and hold space are your own. There are 7 or 8 steps to get that going and you should get it going. Change sucks, I get it. It makes us feel uncomfortable. It makes us do different things. We like routines, we like feeling safe. Unless you’re born into a family with lots of real estate holdings, you’re going to have to change something to build your real estate portfolio. Go through it again. Do you have a 700 FICO? Do you have a six-figure salary? Do you have $50,000 to deploy? Because if you don’t, it’s hard and frustrating. There’s a reason why Jason and I say, “If you don’t have a 700 FICO, a six-figure salary, and $50,000 to deploy, we do not want you in the mastermind.” It’s twofold. One, we know it will be frustrating for you. We’re not making our money on the mastermind. We have real estate holdings. We buy and hold. We’ve got a couple flips going on. We make our money doing real estate.
The $7,500 that we charge for the mastermind is nominal in our world. We cover the space and advertising. We do a little bit of the radio show coverage through there. We use it for the general marketing and events we put on. One, we know you’re going to be frustrated. Two, here’s what we also know. We know that the people that start this business with no money and buy into that guru stuff, the best we can tell there’s a 90% fail rate. “I’ve got no money but I’m going to hustle. I’m going to do this. This is for me. I’ve got no choice, Robert. I’m retiring next year and I don’t have enough.” Ninety percent of those people that start without the resources fail. We know it. The sad thing is that every club organizer and guru knows it. We choose not to sell to those people because of the high failure rate.The pain of change outweighs the pain of staying the same. Click To Tweet
I’ve had conversations with gurus and they’ve said to me, “Robert, it’s not me. It’s them. I can layout a path for them to become wealthy without having any money. They just quit.” It’s an unrealistic, hard, and devastating path that takes 3 to 5 years. Those people convince themselves that it’s not them. Jason and I know that if you don’t have the resources, it’s difficult. We know that 9 out of 10 people who stand up in a coffee house who says, “I’m a hustler. I’m going to do this. I’m going to wholesale. I’m going to make a lot of money. I’m going to flip and then I’m going to buy and hold,” will fail. That’s the statistics. We prefer not to take those people’s money. It’s that simple.
We get a whole bunch of pushbacks. You’re saying to me now, “Are you telling me I can’t make it? I can do anything. I’m Tony Robbins, Ali, and Jim Rohn all wrapped up in one.” I totally get it. I’m sure you can but the other 90 people out of 100 can’t. You’ve got to change. I don’t know any other way to say it. For some people, change is wildly difficult. Here’s the thing. Once it does change and you see the merits of change, then you won’t stop. You’re going to keep running. Once you realize, “I’m making $3,600 extra a month. That’s going to change my life. That gives me breathing room. That lifts a lot of stress off my shoulders.” You’ve got to change. It’s not just hoping to do stuff.
I can show people how to become wealthy with no money for sure. It’s a longer path and you will be frustrated. You’re going to have to keep doing it. Our friend, AC Ramos, does wholesaling in the city. His crews make 40,000 phone calls a month and he’s successful. I’m not saying you have to figure out a way to make 40,000 phone calls. He’s at it six days a week, ten hours a day. To get a little bit of that success, you’re going to have to put in the time. You’re going to give us all of those nineteen hours a week. If you’re a contractor, maybe you can joint venture. We can talk about that. We also know that a lot of those don’t quite make it.
Once you get there, once you get a little steam going, then you start knocking them down. The next 5 to 7 years of your life are exciting. You’re going to start figuring this stuff out. Afterward, you will be in a good position but it starts with change. Some people are desperate, they have no choice. That was me. I was massive debt desperate. For me, that was the pain of change outweighs the pain of staying the same. I’m a true believer in that. People will make drastic changes when they have no choice. When you corner that bobcat, look out.
For those of you that are cruising along with six-figure salaries, retirement accounts, and 700 FICO, you’re the toughest people to motivate. You’ve got to ask yourself, “Is it okay? Are you happy here? What does retirement look like? Are you still going to work at 68, 70, 72?” These are the real choices. Change is difficult for a lot of people. On the outside of it, I promise you, it’s a good and fun journey. We talk to people all day long who are making that journey and we want to talk to you. Text us at (281) 401-9008 if you want more information on the mastermind. This is Robert. We’ll be back.