Getting Started: 50K – 100K with Robert Orfino

TRE 21 | Getting Started

 

Do you have some money to get started? Most blogs and seminars focus on money strategies, but what if you have a nest egg like $50,000 to $100,000 to invest in real estate? Jason and Rob recommend the best strategies to start with whether you have no money, have a little money, or have a lot of money. Discover what a good deal is and the difference between fix-and-hold versus fix-and-flip. Whether you have a little bit of money to get that first one in a reasonable amount of time or you have more than a little bit of money, you can always come up with a plan.

Listen to the podcast here:

Getting Started: 50K – 100K with Robert Orfino

Getting Started In Real Estate With 50K – 100K To Invest

We’re talking about getting started. You’ve got a little bit of money. Let’s say you’ve got $50,000 to $100,000. I run into people all the time. They got that sitting in. If you read The Millionaire Next Door, you could spot millionaires from a mile away. They drive Hondas, Toyotas and full-sized pickup trucks. They typically live in a house that’s worth less than $500,000. They have very boring jobs, not doctors, not lawyers. Everyone is like, “I’ve got to go find a doctor and partner.” They’re engineers, teachers or scientists.

My wife pointed out to me a long time ago, the pants cuff, that’s someone who’s got money. Clearly, it’s tailored perfectly.

It’s the break at the ankle.

All those little things you can find them and they don’t wear big Rolex watches.

They are not driving Mercedes, not driving BMWs.

They come and they sit down. I’m going to say three out of ten of them have a member’s only jacket. They sit down and they say, “Tell me about this. I’m here to learn.” They get into it. This city is filled with those STEM folks. That’s Science, Technology, Engineering and Mathematics. Those folks in that world who have got great jobs. They’re not interested in climbing the corporate ladder, who sit in that engineering position and get sent to Venezuela when the borders open, Nigeria, China, some platform in the North Sea, sent back and do their work and their engineering. That’s their business.

They take one vacation a year. It’s usually a good one. The wife usually drives a nice car. That’s how it was in my household. What else? How else do you characterize these people?

They’re a bit frugal. They’re definitely conservative. They’re conservative voters. They have a conservative lifestyle.

If they’re anything like we were, you’re the Dave Ramsey person. 401(k)s are maxed out. You have $100,000-plus usually a checking account for “a rainy day” although your worst rainy day is replacing a water heater or getting the transmission in place. It’s like, “Why do we have all this money sitting in this checking account?” You realized one day, “I should probably do something with this.” I’m going tell you that journey usually starts when someone says, “I’m making 8%.” You’re like, “What? No, there’s no way. That’s crazy.

That doesn’t sound legal. Can you make 8%?

You’ve invested all in Amazon?

When did you get into Amazon? I go to this place. It’s over on Silver Park. These guys show you how to lend your money.

The biggest challenge in getting started is you’re going to do a lot of analysis. Click To Tweet

These clowns on the radio talking about buying real estate. That’s the typical person that’s got $50,000 to $100,000. They start looking around, “Maybe I had to put some of this stuff to work.” They start looking at this real estate thing. Here’s the problem with that crowd because I’m certainly a member of this crowd. The first house you go to look at that looks like a good rental property, you walk in and you go, “This thing looks like it’s about to fall on itself and it’s not that bad.” The first couple you see like, “People live in this thing?” It’s like, “This is wild. I don’t think you can fix this for $20,000.” You’re like, “Trust me, we will fix it for $20,000. You need to bulldoze this.” It’s not that bad. We don’t buy teardowns, but I’ll show you what a teardown looks like. This group, their biggest challenge in getting started is they’re going to do lots of analytics and spreadsheets. I’ll get spreadsheets that have 10,000 cells on them. It’s six tabs deep. It’s like, “Bob, I’m telling you right now, it isn’t that difficult. It’s a single-family house as a flip or a rental or whatever it is,” which brings me to my next point. What should these folks be doing? Should they be doing wholesaling?

No. We started the Sugar Land REIA down there, I would say we have 36 people on our second meeting and 32 of them were buy and hold. Of that 32, ten were sending mailers. I’m like, “What are you doing?” One person was sending 8,000. I’m like, “What are you doing?” He’s also a little sales guy. He’s an agent and took our advice. That’s what we tell people, “You don’t need to do this.” At the time, we didn’t have it, but now we have it. Mr. Texas Real Estate team powered by Keller Williams Platinum, we have agents for you. They’ll go, sit down, talk to you and want to work through it and get you through it. We had a great deal in Rosenberg.

It was $75,000 or $80,000 something like that.

It’s $80,000 purchased, 37 in rehab. We’re at 117. The property was going to rent for about $1,400. We sent it out to our group. We have some conservative folks in our group trying to get going and are like, “I don’t think that’s for me.” Trust me, this is Richmond Rosenberg businesses for everyone.

I’m going to tell you a little secret, that submarket is about to explode. It is going to be so incredible. Did somebody end up buying it?

Yeah, we sold it.

If you’re in that crowd, $50,000 to $100,000, that’s a perfect deal. No wholesaling, there’s no reason to teach wholesale.

We don’t teach wholesaling. Some people want to flip but I’m like, “Who do you want to do that for?” You worked 30 to 40 years of your life. Do you want another job that’s insanely stressful? You don’t want that very high risk? Don’t do that. We teach fix and hold versus fix and flip because you can get a lot of equity in. That was at Rosenberg. We think that probably would appraise at $150,000 to $155,000.

It will be $200,000-plus house in the next several years.

There’ll be $80,000 equity in that in several years.

If you’ve got a little bit of money, you’ve got to pull them along.

TRE 21 | Getting Started
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy

Come on man, this is a good deal. It’s like, “I don’t think so. It’s too much construction.”

I like sitting down with that group because I can say, “Bob, you’re telling me it’s not a good deal. Tell me in your vast experience what is a good deal?” You don’t want to call them out like you don’t want to confront them, “You tell me, what do you think a good deal is?” We sit there and let them back into the math. They go, “You’re right. This thing cashflows $500 a month.” That’s probably pretty decent. You lived down there in Richmond Rosenberg.

There’s a lot of equity going up. On the next several years, you’re going to see some decent equity in the house. What are we going to do here?

I love when we send out the Mr. Texas Real Estate deals. We’ll send them out to your email list. Charles does it just like this, “Jason is going to buy this. He’s going to give you first crack at it?”

If it’s done, you take it by Monday morning, Jason is back from vacation, he’s buying it. Full disclosure, Charles is going to make more if he sells it to someone else.

We’re going to get on a little tangent here. When people ask me, “Why are you sending so many emails? Why are you all over Facebook?”

We do not do enough marketing.

I don’t think we do enough.

We explained that, “We’re not doing enough. We need to do more.” Her eyes were like, “You are everywhere.” I was like, “No, we’re not doing enough.”

All I’m trying to do is make bigger circles. That’s what I figured out. That’s my analogy. It’s like taking a hula hoop and I’m trying to make it bigger. I’m trying to get more stuff in the hula hoop. That’s what brings you the deal. It’s like that. It’s like, “We could probably do this for $100,000 and it’s listed at whatever.” I saw an email, a friend of ours, she’s like, “I got another one for you to look at in Surfside. It’s a friend of the family and gets you in.” It’s because we’re doing this goofy stuff on Facebook. We’re doing this radio show. It’s so funny when people are like, “Jason, it seems like it’s such an ego play.” No, it’s not. It’s about making piles of money.

There are clearly people in town who are realizing that. They are doing Facebook Lives. They’re doing shows. I’m like, “Direct message me. Let me give you three pointers right now because you can make that better.” They’re all our friends. It’s like, “Why don’t you to get more business? We want you to be successful as well. We want those 200 millionaires. We’re not doing enough marketing.

It’s $50,000 to $100,000 may be a little bit more probably not going into wholesaling. There’s no point.

The problem is some of them get dragged into fixing and flipping mostly because they’re bored.

Go somewhere where you feel there's a connection and you can learn something. Click To Tweet

They’ve been an engineer for 30 years. They’re like, “I want to get into flipping. My wife and I love the flipping shows and we need to get into flipping.”

Let me tell you the epiphany I had, the little stress release that came out of my body at 5:50 AM. We close all these properties. I’ve got to get the construction started. I’ve got to go down there talk to the contractors and the managers and all that stuff. I’ve got to get all that going. I feel like I’m already a little behind on one of the projects. I’m going to go down to corpus and push that along. I’m like, “I don’t have to sell these. There’s already money coming in.” I’m like, “There’s already income being produced from these, from two of the four we have.

Do you know what the worst thing that we do? They don’t make as much money as they should. The worst thing that happens to us is they don’t make as much money.

It was such a relief. It’s okay if I don’t get the outside painted. There are still tenants in there.

Gross is almost $8,000 a month, just on that one little deal, we bought in the Surfside.

It’s like $3,000 overhead. It’s nothing. I’m like, “I might get a check next month. I don’t have to wait six months to flip this house or nine months to sell it or two years because of the flood. There’s a check coming to me. Rents get collected today.”

When people are like “Why are you doing small apartments? You can get into big apartments.” I’m like, “We’ll get there.”

Eventually, we’ll buy one of the ten that are available.

It was that conversation I have with Ashley. He’s like, “This is how it starts. You buy twelve. You buy thirteen. You buy 40 and soon you’re buying 1,000 doors at a pop. I’m said, “Trust me, I’ve seen it before.” He’s like, “This is how it all goes.” What’s fascinating is you can go in and buy these small apartments that are already making money.

The fourteen we’re looking at are already making money.

If you’ve got the fourteen, I can’t wait to see the nine. I know the nine. It’s not vacant, some of those are occupied. I like that deal. George called me with that deal and I’m like, “I like it.”

If you are looking to get into the buy and hold, call us. We’re agents. We’ll help you. If you’re looking to expand and grow a little bit of an empire, five, six, seven, eight properties, you should join our mastermind. It’s that simple. It’s $1,000. You want to go even deeper than you can do the whole peer to peer stuff. At this point, don’t be dropping more than $5,000 in the first year. You can go to these rooms, these Bailey big rooms, and there’s a $600 membership. Buy that, don’t get sucked into the $25,000. First of all, you have no seniority in that room and that’s a big problem for some of those places. Drop it here, drop it there. Go get some training. Come with us. Join our little mastermind. We do it every month for $1,000.

TRE 21 | Getting Started
Getting Started: Some real estate investors get dragged into fixing and flipping mostly because they’re bored.

 

If you have $150,000 or maybe have more, that’s fine. You’re going to need to sit down with a good agent, a buyer’s agent who represents investors. That’s going to be someone from Mr. Texas Real Estate team, powered by Keller Williams Platinum. We’re not giving financial advice. That’s how we do. We look at the deals and we say, “This is a deal someone should buy. We push it out. That’s where you’re going to get started. If your money is liquid, great. If it’s in retirement funds and you’re going to go to Quest, you direct IRA services. You’re going to get that money turned over into a self-directed, we can help you with that as well.

We’ll do some interim introductions, obviously Quest if you’re here in Texas. If you’re in California, you’re going to see Carne. She’s down in Orange County. She’s wonderful. You’ll be able to take that money and start investing either for or to continue out your retirement fund or if you’re liquid, to create cashflow every month. I would highly recommend you find us. You get to one of our meetups. You join the little mastermind that we do an hour before. We talk about deals and it’s $1,000. I don’t think I can give them any more advice to do anything else beyond that. It’s making it complicated. Read as many books as you want. Read The Millionaire Real Estate Investor by Gary Keller. Read The ONE Thing by Gary Keller and come to our meetups.

When I saw that first email about the note, I was like, “These bunch of clowns doesn’t know what they’re doing.”

Let me tell you about the patent title. They’re absolutely the best.

We were absolutely hogtied forced to use this other title company. It’s in another city. They had all the heirship affidavits. They had gone through probate like they did. All this work, literally they were already close. We are on day four of this closing with these folks. It’s like, “It’s not this hard.” I know it’s not because we closed a zillion of these things a month. I don’t understand what’s going on. It’s incompetent to run rampant at this point.

We had a lot of some folks from our office trying to be generous and saying, “We might have access to the notary.” What should have happened was they should have the docs prepared. They should have been in our office at 3:00 on Tuesday afternoon with a mobile notary. It didn’t happen because on Wednesday morning the new docs were reissued. We’ve got to find another notary.

This is why we use the patent title. I cannot handle these other title companies. It’s ridiculous.

When you’re getting started and you build your power team, for sure, the patent title’s going to be on that.

The themes that we have on this show and what we do in the American Real Estate meetup and all these other things that we do is that this is how Rob and I do it. Our theme is, “This is how we do it.” It’s why we don’t have a vendors’ list with 125 vendors on. These are the people we use. This is how we do it. Step one, when you take receipt of title, you give it, this is our title, call Lisa and have her come pick up the contract and the earnest money check. We go to Jet for the money. Here’s Jet. It’s this step by step. These are the people we use. This is how we do it.

We have our banker. We have Jet. We have all these other folks that we use. We’re happy to do it. The one thing we don’t share is our private life.

In any case, it’s how we do it. The whole theme for this show and everything we do is how we do it. We do this. That’s why we don’t have our vendors’ list with 500 vendors because we don’t use 500 vendors. We use these guys for construction. We use people for the title. We use these people for money. Here’s Jerry Todd with Property Cares, our property management company. You don’t have time. I don’t have time either. We do not have time to interview six property management companies. Pray we find the one that works. We use one. This is it. We don’t have time to go and interview 50 bankers. You have a limited amount of time. It’s not helpful to anyone, if you’ve got this list of “vendors” that’s like 500 deep.

I call Michael the Aims Tree Service. I got one tree guy. I don’t have 100. I don’t shop for the best price. I don’t go out, “Let’s get six quotes on this tree.” No, I call Michael or send him a text, “Can you go by and check this out?” “Yeah, I’ll be over there tomorrow.” He does a little Facetime, “You need this and this.” He sent over the invoice, done. That’s how we do it. The whole theme for the show and everything we do is this is how we do it. Anytime we step outside that box, it’s a total pain. It’s reliving that whole nightmare over again. That’s our little rant.

People in the room are more important than the gurus on stage. Click To Tweet

I’ll give you the basic strategy at any level. Whether you have no money, have a little money, have a lot of money, you’re going to take about 100 hours of education and it’s all free. Read the books, listen to books, go online or go to BiggerPockets. Go there and look at this stuff. Come to our meetups, figured it out. Get 100 hours in before you venture out. Once you have 100 hours in, you’re going to know the acronyms or the initializations. You’re going to know the math. It’s not hard. The math is not hard here. You’ll why we’re doing certain things in a certain way. You can head out and have intelligent conversations at REIA Clubs and masterminds, things like that. Spend some time there. Find some likeminded individuals. Do not buy on your first night anywhere. What room you walk into, do not buy.

Do not buy in your first month. Go look at these different rooms. You may not like our rooms. You may not like us. Go to the room where you feel, “There’s a connection here and I can learn something.” Not just with the person on stage but with the people in the room. People in the room are more important than the gurus on stage. There are a lot of rooms in this town. We know most of these people. I like Ray. He’s a good guy. He’s out there doing it. Him and his partner, Landon, they’re doing it. They are for sure doing it. Every way that they do it, they’re doing it. They’re fine. They’re good guys. There are other people in this town, who are not doing it. They’re charging a lot more than Ray Lin. Finding the right room and if there’s any confusion, text us. I’ll happily tell you. That’s a good guy. I wouldn’t go there.

It’s like I’m a big fan of AC stuff. One of the best wholesalers in the city. He teaches a class on the weekend.

We do not recommend anyone to do wholesale. If you’re going to go, here’s the guy.

I’ve seen that whole operation. I’ve known him for years. He runs a good shop. If I’m a guy that’s got a couple hundred thousand bucks, I want to buy rental properties, Airbnb, small apartments, even larger apartments.

We have a home for that guy or that couple or that woman. The folks come on over. We think we can ease you into it because most people need to be is. I haven’t found a lot of people with like, “I got $1 million. I’m ready to buy twenty properties.” I haven’t found that from day one. It’s usually, “I’ve spent eighteen months doing this. I need to buy my first property. There’s a pent-up frustration of real estate.

If I run into that guy and I’m like, “Let’s slow down. We don’t have to do this overnight.” Rob, I want to be a senator.

I’m going to be able to teach you how to be a senator. I’m going to do it for free. As soon as you win the election, you need to take a video of yourself being sworn in the House with the Vice President. Send that to me so I can put it on my website. It’s a free senatorial scholarship. If you want to be a senator, I know it’s tough. Finances are tough. Here’s what I do. I have a scholarship program. On this scholarship program what I’m going to do for you is I’m going to teach you how to be a senator. If you win your election in the first 60 days, I will refund you the cost of the course. All you’ve got to do is take a video of you being sworn in with the Vice President and give me a little thumbs up, giving me a little video like, “I wouldn’t be here if it wasn’t for Robert. I wouldn’t be able to represent the State of Montana without Robert.”

Where do I sign up?

It’s right over here. It’s only $2,000, but I’ll give you the $2,000 back as soon as you get sworn in. Look at all the other senators I created, five of them.

There are 400 people in the room. It’s five guys. They’re faded pictures.

They have the video and you can see they’re wearing clothes from many years ago. I was like, “That’s nice.” I had that sweater. It’s all triggering NLP. They study all this stuff. One guy has got the greatest cheesy Circa ‘96 graphic. It’s dollar bills like falling from the sky and going into your wallet. It’s like a clip art thing. It’s time stopped photography. He’s running it over and over. He’s like, “This money could be going right into your wallet.” I’m like, “Look at that.”

TRE 21 | Getting Started
Getting Started: When you’re getting started and you build your power team, the patent title’s going to be on that.

 

You look around the room and you’re like, “Surely these people,” and you go, “It’s working.” You’re looking around.

The whole audience is popping out of their seats, “Where can I sign up?” I’m like, “He is so good.”

I’m more jealous than anything else. I’m like, “How do you stand up on stage and do that?” There is a missing link.

Some neuron didn’t fire. It didn’t connect when they were four years old. They feel it’s okay to convince people with no money that the government will pay for their rehab. I’ll show you how the government will pay for your rehab. How would you like to do? Raise your hand if you want the government to pay for your windows.

I’m like, “Why wouldn’t you raise your hand?”

Government cheese sucks. These guys were out there. I’ll make you a senator. I have this whole scholarship thing.

As soon as I get elected to the senator of the state of my choosing.

There is more, Jason. The first ten people to sign up for the senator program, I’m going to show you how to get on the Ways and Means Commission.

Ways and Means is where it’s at too.

You pick any committee you want and I’ll show you how to get on. It’s pretty powerful. In ten years, you’d be the chairman. That’s probably the most powerful position in government.

You’re going to throw that in for free if I sign up?

It’s for the first ten and then fifteen people will be in the back going like, “Am I still part of the first ten?” We can fit you in because there are fifteen chair people.

Be patient with real estate education. Click To Tweet

We’re going to squeeze you into Ways and Means, the most powerful committee in Congress. With this free program, you too can be on the Ways and Means Committee.

Full disclosure, $97 for a six-hour webinar, $1,000 for an eight-week Sunday night class and $7,500 a peer to peer sharing group. That’s what we do.

I went to Brad’s and he wasn’t like that. I haven’t been to a real bad seminar in a while. The last one I went to was a few years ago. I was sitting there in the back of the room. I always sit at the back of the room because I’m taking phone calls and if I get bored, I sneak out and all that stuff. I will never forget I was sitting there and they’re bringing this box out. I go, “What is in this box?” We’ve got the projector set up and all that, bringing this box out. I’m like, “What is it?” There are 400 people in the room. I’m almost got binoculars on. I’m like, “What are they doing up there on stage?” I’m like, “They’re not.” They’ve got an overhead projector.

There are three people that use that.

I’m sitting there. I’m like, “Where do you even get parts for that?”

There are new ones. Those little snap things that pop up and they plug into the computer.

This is like the old one from elementary school. If you sat the first two rows, it blows that heat on your face.

I’m thinking we either are going to sing together or do geometry because that’s what I was frozen music in the mouth. We’re going to learn geometry.

It’s that old yellow bulb. You’re sitting here.

The speaker is sweating. It was so hot. Heat is coming off that thing.

Like they’ve got skin cancer on their right forearm because they’ve used this overhead projector for at least the last twenty years. I’m watching this and I’m like, “Where am I?” This is an overhead projector. He’s doing the whole thing where he’s got a couple of different transparencies. It’s like he’s putting on a show, like a puppet show. He’s got a solid sheet of paper so you can’t see the next line on the transparency. It’s like he’s running a peep show on an overhead projector. The whole time sitting there back in the room, “What am I doing with my life? I’ve already bought 300 houses. What am I doing?”

The other thing I love that keeps coming in emails, I know their business and I know they’re trying to do. They’re all going to get there. I’m not going to call people out on Facebook. I’ll let you do that. On the emails, I have fun. I get an email. It was like, “Only four seats left.” I write, “I had five people wanted to come. Sorry, I won’t be able to make it.” I get their VA or something like that, “We can make accommodations. I’m sure you can. We’ve been in that room. I built a room for 50 and 24 people signed up.

TRE 21 | Getting Started
Getting Started: If you have a little bit of money, there’s a path to getting that first one in a reasonable amount of time.

 

It’s been all about getting started. If you’ve got no money, what are you going to do? You work until you have a little bit of money.

If you have a little bit of money, there’s a path to getting that first one in a reasonable amount of time. If you have more than a little bit of money, let’s come up with a plan.

Be patient with real estate education. No reason to sign up for the $20,000. You don’t need to go to whatever it is.

There’s a time and place for that stuff. When do you pay $100,000 for a coach? When he can sell a $1 million program. We’ll end up doing that.

There’s a guy I paid. I paid him $5,000 an hour. I had a big problem. He was one of five guys that can solve this problem. He was the guy when I chatted with him several years ago, he told me, “You need to be the Texas Real Estate guy.” You had the whole Mr. Texas Real Estate thing. I’m like, “Why didn’t I take his advice and paid him a ton of money?” We talked about what to do if you’ve got a little bit of money. That’s what you do. What else you want to tell the people, like, subscribe to our stuff, TexasRealEstateRadioNetwork.com.

Connect and share us, we’d appreciate that. We’re definitely in growth mode. We’re moving forward and moving up. We love to see those green arrows on all the little metric performance charts that we look at.

If you all want to get on our email list or you want to follow us on Facebook, if you follow me personally, all my stuff is wide open. I don’t have a fan page or anything like that. You can see all the Facebook Lives that we’re doing. YouTube channel is up. A Rock is posting all kinds of stuff every day. You can see that. Our Instagram is up and running.

We appreciate all the support we’ve gotten, a lot of direct messages and good posts. We’re having fun doing it. We’re doing the first bonus section for the $1,000 focus group for Airbnb. If you’ve gone through the training already and you’re ready to do the eight-week course, you’ve got about 48 hours to sign up. If you haven’t done it already, go ahead and text me at 281-401-9008.

It’s $1,000, eight-week course, we’ll be doing that on Sunday nights. That’s the show. Thanks for reading. We appreciate it.

 

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