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Getting Started: Action! with Robert Orfino
My haters are my biggest fans.
We’re still talking about getting started, moving along. It’s Action Day. There are a lot of folks on there who are trying to figure things out. They want to be wholesalers. They want to be flippers. They want to buy and hold. We went over on the show and we’ve gone over on webinars. Wholesaling is hard. It’s probably the hardest bit of this business.
We’ve got a friend of ours that is a fantastic wholesaler and flipper, superior sales skill set. That’s what it takes to be that. You’ve got to be good. Most people do not have the discipline or the skill set to be a good wholesaler. A lot of cases, to get the best deal as a flipper, you have to have this insanely good sales skill set. You have to convince someone to sell their house at $0.70 or less on the dollar.
That’s difficult. We’d rather you buy and hold or do something, whether it’s single-family rentals, small apartments, Airbnb. It doesn’t matter. Get into something that’s going to start generating some cash on a consistent basis. Whether that’s cash into your retirement fund or cash into your pocket, there is a world out there in which a lot of people are making a lot of money with buy and hold properties. If you have a W2 job, don’t quit the W2 job. There’s no Freedom Day around here. There’s no write your day on the wall.
You’ve got to remember you’re like a PhD and real estate guru. Explain what that means when you hear that at a real estate event.
It’s a sales mechanism. A lot of people will take your picture in front of the date you write on the board.
Explain the whole Freedom Day thing.
The whole thing is like, “Jason, you’re in the real estate now. When’s your freedom date? Your daytime job is so horrible. When are you going to be free of your daytime job?”
I don’t know, Rob. Five years from now.
You have the systems in place. Everything is in front of you.
Do you think I can do it in two years?
Jason, if you want to screw around and mess around for a year, you could do it in two years.
Could I do it in a year, Rob?
You could easily do this in a year. We have plenty of examples of people that have gotten their financial freedom in less than one year, Jason. Get up there on the board and write the date down.
May 1st, 2020.
Take a picture. That’s your freedom date. You’re committed publicly. What’s going to happen in nine months when you’re teaching contract or your mastermind contract is running out? They’re going to bring you back and say, “Jason, you want to be free by May 1st. What are you going to do? You only got 90 days left. You better re-sign up.”
There’s this freedom date. You put it on your Facebook. It’s got to pop up like a year later as a memory.
The whole thing is to get you to an emotional peak, push you to renew, push you to buy, and all that other stuff. It’s a horrible world. We’re dancing in that real estate education world. We’re trying to make it a lot easier, simple and hide no numbers. There’s no big blue suit at the back of the room, pressuring you to buy. “Do you want to buy it? Don’t you want to buy it? Good. That’s fine.” I had a guy at the Quest room come up to me and said, “I didn’t take your class, but I took this other class because he’s got systems.” I was like, “That’s great. I have systems too. How’s it going?” “I’m still trying to figure some things out. Maybe I can come by your office.” “No. You go call that dude.” “He lives in San Diego and doesn’t have office hours.” “No, thank you.”Be fire and not water as the latter finds the path of least resistance while the former burns it down. Click To Tweet
Why don’t you pick up the phone and call your guru there and say, “What’s going on?”
“I still can’t leverage a rental property into an Airbnb. I’m having a problem with that. Every landlord is telling me to go pound sand. Maybe I can come up to you and figure this out.”
The rental arbitrage reeks of nonsense.
There’s a way to do it. We’re doing it. We had Giovanni. “Here are 31 properties, Rob. Pick one.” It’s overload. I can’t do all 31. That would be an easy way for us to do rental arbitrage. The way that they’re taught is to go out and find grandma who’s trying to rent her house. She lives in Florida. They tell grandma, “We’re going to go ahead and rent it. All these little sublines on the lease agreement, we’re going to strike out. Don’t worry, grandma. We’re going to take good care of your property.” They do this rental arbitrage. It works for some people. It’s the same thing. You’ve got to find 100 landlords to get the one deal.
Essentially, what you’re doing is subleasing it. Most landlords in their lease say, “No sublease or no short-term rental.” They are going to shut that down before it even gets started. Most property management companies who are with it are not going to like you to do it either. The likelihood that you could find these properties that you can do that is a small percentage.
You probably paid a pretty penny for that first-day class and a three-day class. Maybe you’re in a mastermind or taking his extended class. He’s long gone. He’s back to San Diego or back to Virginia, wherever he’s from. “Rob, I want to come up and pick your brain.” “You paid that guy. I’m not doing it.” I’ve allowed that to happen for a long time. It’s one of these things that I’m not going to do anymore. “I went to this big class. I spent $35,000. I still can’t get a property. Can I come up and talk to you?” “No. I’ve got people who’ve paid me money or $1,000 on mastermind. I’m not going to take my time away from them. They’ve paid me. They’re with us.”
I’ve got a guy sitting here. He’s got $5 million in cash. We’re trying to figure out how do we deploy that. We’re going to sit down with a guy whose guru is failing him. That’s where it comes down to. One of the biggest challenges I’ve always had is we end up being the lost puppy department for broken real estate dreams. They get placed on our doorstep in the middle of the night. “I’m about to quit. This is awful. I don’t know what to do. I’m gazillion dollars in debt because I signed up for every guru in town.” I get this lost puppy sitting on my doorstep in a little cardboard box of broken real estate dreams. “What do I do now?” I’m like, “The first thing is you can get your money back from all those gurus. Let’s see what we’ve got to work with after that.” We’ve saved some people before, but it’s tough. It takes a lot of work. You signed up for all these real estate classes and it might be, “You’ve got to go back to work.”
I ran into a guy at one of our events. He’s a good guy, a super sharp guy. I said, “What did you do before you got into real estate full-time?” He said, “I’m an electrical engineer.” He’s a wholesaler. I said, “Go back to work and let’s get you some rental properties. Get that good $150,000 a year W2 income and let’s go buy some rentals.” He was like, “I don’t like electrical engineering.” I said, “Do you like being a terrible wholesaler?” That room got quiet. I was like, “I thought we were being honest here.” He laughed. He goes, “I’ve got it.” I said, “Go back. Go get your job.”
We get a lot of people on Facebook like, “It’s so true.” Once in a while, “How much did you spend?” “I dropped $35,000.”
I ran to a guy who spent $200,000. I’m like, “Your wife is very understanding.” They dug out of the hole. They’re making money. It all worked out in the end, but you don’t have to spend that money on education.
Even on our webinar, I said to people, “Don’t be watching a radio show. Don’t watch us on Facebook. Don’t listen to us. Don’t come to my class. Don’t join my mastermind. I don’t want your money. I want you to do something. Stop paying. Go call 100 agents. You’ve got to make 100 offers a month.” Someone said, “Can I do it for no money?” I said, “No, you can’t do it for no money.” The people that all want to do it for no money somehow find $997 to sign up for the class. That predator out there knows that you’ve got at least $1,000. No, you can’t do a no-money. If you have no money, my advice was to join an MLM for $350. Go get all the sales skills. There is plenty of training there. You’ll be in a group. You’ll never feel alone. Whatever you do, don’t bother your friends and family with it.
You can do it with no money, but it takes a high skill set to be able to do it.
People got on a webinar to hear about how they’re going to get all, “Let’s go.” I smack them around like, “Go join an MLM if you’ve got no money.” It takes $23,000 get started at the minimum. Go do it.
How many stayed through the whole webinar?
They all stayed.
I’ll give you a little insight into how some of the Facebook stuff works. We’re influencers in real estate in Houston, Texas. I’ve got this little thing going on Facebook. This guy tags me. He tags 100 people. He says, “Guys, what was your experience at this retreat? Wasn’t it great last year? What do you look forward to most this year?”
Did you go to the retreat?
I didn’t, so I know exactly what they’re doing. I said, “I’ve never attended.” The next reply was from the guy that runs the retreat, “I’ve invited you a million times.” I was like, “We’re going to make this public. Here’s the deal. Unless it’s to go see Casey or it’s to hang out with Scott Carson, I’ve got to be speaking at the event. Otherwise, it’s not worth my time.” I posted that. Everybody got all offended. I said, “I get what you’re doing. You’re tagging me in this post because you want my people to see your stuff. You’re playing a marketing game.” I wrote this all out. They deleted it.The process is simple, but the discipline is difficult. Click To Tweet
This is classic Jordan Peterson. They come for the drama and they stay for the content. I was like, “Let’s ratchet the drama.” I know they’re all going to come this way. Everyone’s going to start watching like, “Who is this Jason Bible guy? What is this?” They’re going to find the radio show. I was like, “Let’s do it.” I don’t think I’m going to be speaking at that retreat. I don’t know if I’ll sleep at night. It was like, “I’m sure there’s something at this retreat that will help you grow your business.” I was like, “We made $2 million. We’ve got enough business. We can’t handle any more business.” “Maybe we can help you with that.” It was like, “Never mind.”
That’s a big pitfall for the people that get that. They’re a monochrome of success, $250,000 a year, $300,000 a year. That’s good. If he never made $300,000 a year and you’re making $300,000 a year, you think you’re Richard Branson, but you’re not. You get into this addiction to this mastermind and this guru and this retreat. “I’ve got to go to Pitbull. I’ve got to go to Florida. I’ve got to go to Arizona. I’ve got to go to San Diego. I’ve got to go to New York. I’ve got to go to all these places.” You come home to find that your business is, “You’re not making $300,000 anymore. You’re down to $240,000.”
I see it all the time. They’re successful real estate investors here in Houston. They all go to these different masterminds all over the place. I sat there and I was like, “What are you wasting your time for?” You’re sitting in some Class A hotel ballroom for three, four days every quarter.
I don’t know what event you went to that was ever out of class. I went to one event. It was at a Class A hotel. His name is Craig Duswalt. He had one at the Westin at LAX. That was class A. He didn’t have it there the next year after.
I don’t get it. It was like, “I’ve got to fly halfway across the country to talk about Houston real estate.” I was like, “What are you doing?”
If you’ve got $2,000, $2,500, then become an agent. Get your real estate license. That means you’re not going to join my mastermind. You’re not going to pay any of this stuff, but I don’t care. That’s not my goal. What we’re trying to do is create 200 millionaires. That’s our goal over the next three to five years, is to create people that are going have the million dollars and still go to work and still enjoy what they do. If you have no money and you’re beginning, go join a real estate company. It’s about $2,500 to get everything started, your HAR fees, Supra keys, all that stuff. Go do it because what they have is a massive structure for learning. I would say, Keller.
Do not do the independent low-cost brokerage. Champions is great. We’re big fans of Keller Williams. Join something like Keller, where they’ve got this network. Their CRM systems are amazing.
It’s better than any CRM anyone has ever used in the wholesaling world, hands down.
I have never seen anything as good as what Keller Williams uses if you’re serious about building a real estate business.
You’re going to start wholesaling and work with a piece of junk CRM or Google sheets, versus going to Keller and have this amazing system set up. Full disclosure, you should sign up under me so that I can get residuals. I’ll happily to do that for you. Go and become an agent. It strikes me that the people that are willing to go out and do bandit signs and door knock and all those stuff, why aren’t they agents? We closed a deal. The numbers, we bought it for $120,000 something. We bought it from an investor. We paid him $28,000 in wholesale fee, but it wasn’t him. There was another person in front of him who got $7,000. We paid $35,000 wholesale fee. We paid 29% on the deal. A 29% wholesale fee was on that property. I can understand as an agent or broker. You’re looking at that and saying, “I’m working for a point and a half. This is crazy.” I explained to him that that first person who got that deal brand new, they’re probably going to do $6,000 this year. They’ll make $42,000. You can easily get ten listings a month in our world. Those ten listings a month will produce $30,000 a month consistently.
I was chatting with some folks. They said, “You guys paid how much?” I said, “It’s $35,000. Do you know who’s going to make the most money in this whole deal? It’s going to be me and Rob.” I’ll pay you $100,000. I don’t care. It’s going to be a crazy deal. We’re going to be all in this thing for about $300,000 and it’s going to bring in $4,500 a month in gross cash. Do you want $3,000? I’ll pay you whatever. I don’t care. The number works out in the end. We’re talking about getting started and taking some action. Taking some action is not taking out your credit card at the back of the Real Estate Club and signing up for another seminar. That’s not action. I know some guys that I used to work with. They thought they were working when they were in the meeting. There’s no work that gets done in a meeting. The fewer meetings, the better. There’s no work getting done here.
We talked about time blocking. If you’re brand new, one of the things you want to work on is carve out three days a week, three hours of revenue-generating activity. Whether it’s from 8:30 to 11:30 in the morning or 3:30 to 6:30, whenever it is, carve out those three hours. Shut your cell phone off. Don’t look at Facebook. Don’t look at any of that stuff and do the work. If you can give nine hours of real revenue-generating activity a week, your garden will grow. We’re talking about joining Keller Williams or joining a real estate. We don’t care. We want you on our team. We want to get residuals on stuff, but we don’t care. We want you to take action. We hired someone to do all the training. We realize that Keller has got a top-notch training program. It’s $60. It’s amazing. We do flip or we might do a ground up so that we can get listings and generate some organically in-house, and people have listings. We want open houses every day. Open houses get you more listings. That agent who says, “I can’t get any listings,” you’re not taking enough open houses, or you’re not door knocking, you’re not farming your neighborhood.
I’m on that Lab Coat Agents group on Facebook, which is gigantic. Somebody will say, “What’s the split on this and that for an open house?” They’re using all this nomenclature I don’t understand. It’s all agent talk. In the back of my mind, I’m like, “You guys are fighting over who gets what from one open house.” Who are the people coming in? I want those people. I want the leads. I don’t care about the open house.
From statistics, less than 5% of all homes get sold at an open house. It’s pictures online or other agent referrals. You go to your open house because you generate leads for your next listing or your next buyer. People come through. “Buying this is too expensive.” “We have others. We can get you in that price range.” There’s an automatic marketing machine there that is no cost. It’s just time. You find $2,500. You pay for the training. You pay for the state exam. You get listed in HAR and Supra and all that other stuff. There are fees to get started at Keller. You’re going to need to pay a couple of bucks here and there, but it’s about $2,500. You’re in an environment where they have the Ice Cream Social on Thursday. They give out awards and everyone claps. You’d get a piece of paper. You’re in that environment. You’re not alone versus the lonely wholesaler.
You may not be on the field, but at least you’re present during the game. You’re somewhere. You’re like, “I’m here. I’m in the stadium. At some point, I’m going to get put on the field.” It’s important to be in that environment. Plus, you could always say, “Who wants me to do an open house for you?” Your business starts moving from there.
We’re the worst salespeople when it comes to our mastermind stuff. There was a guy who was like, “My daughter wants to get into real estate investing. What does your mastermind cost?” I was like, “Why wouldn’t you get her a real estate license first?” It was like, “I talked to someone who ended up joining our mastermind.” It’s probably better. If that’s what you want to do, you better get your license. “I can’t wholesale.” You have to disclose. You have to say, “We are going to buy this house to make a profit.”
Is that legal? Can you buy a property to sell it to make money?
If you’re going to fraud someone, that’s illegal. If I’m an agent and I’m buying the property because I want to buy it myself and I want to get it at the best number, I disclose that. “It’s for my husband and me. We’re going to buy this house.”Less than 5% of all homes actually get sold at an open house. Click To Tweet
You get this property. You’re sitting there and doing the listing appointments. The listing appointment goes one of two ways. We’re going to list the house or, “Would you rather let me buy this from you?” That is how HomeVestors started. He was sitting in the living room with this gal. He says, “This is what your house is worth. It needs a lot of work. This is where I could list it for.” She goes, “Can’t you just buy it?” He goes, “I could.” The first house they bought was in Garland, Texas, just outside DFW. He bought it and he started realizing, “There are people out there that want me to buy their homes.” That’s why being the agent is such a great stepping-stone to get into if you’re going to be a wholesaler and flipper.
You are credentialed. Not a lot of agents have their phone number on a telephone. You go in and have this massive organization with massive ENO policies right above you. You can feel in there and go confident and do your best. You have all the contracts in front of you. You have a broker record. They have all these training classes. You feel good about moving forward. If you’re looking to build a portfolio and, “I want to make a little extra money in real estate,” become an agent.
If you want to be a real estate investor and you want to buy some buy and hold properties and some small multifamily, it may be of value to have a real estate license, Airbnb, but maybe not.
What do you feel is a productive time for marketing? I’ll give you sales and marketing. Monday, Wednesday, Friday morning, 9 to 11, you should be putting your mailers out there and getting your ads going, and all that other good stuff. If you’re looking to close deals, statistically, Friday afternoon is the best time to make phone calls. If you are looking to close from a non-owner occupied owner, Friday afternoon is, mentally, people want to feel like they’re getting something done for the weekend. There’s a little tip for you.
What is our next thing coming up? You’ve got an Airbnb class.
We’d love to talk to people if you want to get into that real estate spaces and agent or coming over to Keller. We are hiring for the core team. We’re meeting with people. We have a bunch of meetings. We met with some folks and things are much higher quality this time around. When you do like a personal ad to date, that ad is always a list of everything that was wrong with the last person. You have a basis. “I don’t want you watching Astro games,” or “I don’t know why you’re watching 162 Astro games.” You see the line. You can break away from an Astro game like, “The last guy was watching the Astros.” It’s the same thing for us. We’re learning. We’re new to that retail real estate. We’re completely honest with that. We want someone who’s going to sit in the office for twenty hours a week making calls. We want someone who’s going to follow up on our leads 24 hours. We give you twenty properties. We want to have twenty responses. We understand that some people don’t like to call back but hammer him.
Somebody will say, “Real estate agents are so lazy.” I’m like, “That’s not it at all. It’s human nature.” You’re going to go to the path of least resistance. Keep calling. This is something I learned from Bob. I’m going to tell you what you need to do. I’m going to tell you what I need to do. I’m going to do both to the point where you have to get involved. I’m going to call you. I’m going to make an offer. I’ll send you the contract. I’ll get it all signed on my end. I’ll collect the earnest money and the option fee. I will be the easiest bar you’ve ever worked with. It requires a lot of handholding. For the agent and the seller, that’s great. It’s the customer service piece. There’s all this, “There’s this industry disruption,” and “Real estate agents are going to get replaced.” They’re not. I can tell you that it’s not going to happen. If you can make that experience as easy as possible, even as an investor when you’re buying investment grade properties, it makes the process so much easier. They want to deal with you again and again.
That’s what we do. That’s part of our internal training. “Why are we waiting on them?”
Let’s get on the phone with them. “I’m waiting for a contract from them.” Why are we doing that? Send it. Let’s get this deal done. That’s the real trick. It goes right in our theme, it’s taking action.
It’s be fire, not water. Water finds the path of least resistance. Fire burns it down.
What is that I need to do in order to be successful now, not tomorrow? “They’re going to get back to me.” What do you mean they’re going to get back to you? Write the offer. Send it over. Get on the phone with them. “What’s going on? I see this house has been listed for a while.” Catherine and I have been going through this building, this little offer system. I said, “A lot of this stuff is getting on the phone with people.” It’s like, “I see you got this new listing here. I’m probably one of 200 people that are going to call you, so I appreciate you picking up the phone. What’s going on with this deal?” “What’s the deal?” “It’s Meanwell’s house.” “It’s an investment property.” “I figured that.” How’s your buyer make the decision? What are they looking for in an offer? Do they want the highest number, or are they worried about closing? If they want a high number, I can give you $1 million for it. It won’t close. What’s it going to take to get this thing? That’s one thing. What’s it going to take to get this deal done? That’s all we need to know.
We’re dealing on an apartment complex. I’m trying to remember how big it is. Do you remember? Charles said they want us to give them a number, 80 units, high end. I was like, “Can we go back to them? Can you guys give us a number? It’s you that’s selling something.” I had a conversation with a hard money lender. I said, “You guys looked at a deal that we had.” He came up to me and said, “Would you send us over a number? If it works, we’ll do it.”
We couldn’t make it work. It was off by $25,000.
We need to look at that one. That may end up working. Be a sweet little Airbnb. If you were allowed to do that, I’d make money.
You’ve got to create action. You’ve got to move out there. You’ve got to start doing it. If you have no money, it’s insanely difficult. I’m not saying you can’t do it because there are all these great stories out there. There are these great success stories, but it’s close to hitting the lottery. Maybe it’s not all six numbers, but it’s five numbers. It’s hard. You’re going to need resources. I told people, “If you have no resources, either become an agent, join multilevel marketing where there’s already an organization with tons of free training,” because you’re going to get stuck into $5,000 gurus, $25,000 gurus, $12,000 on masterminds, and all that stuff. Go over there.
Go over to Keller where he spent $100 million of training.
Go to Keller. They have a great training program. We’ll talk soon about how to do this business with a little bit or a lot of money.
If you’ve got $50,000 to $100,000, your life looks a lot different than the people we were talking about.Being an agent is a great stepping stone to get into if you're going to be a wholesaler and flipper. Click To Tweet
You can accelerate that curve. That’s probably a good two segments of shows.
We’ll do a whole show on it.
We have a guest coming in soon. This is probably one of the top guys in the country for what he does. It’s real. He’s an honest guy. He got a good projection. He hits on cadences. His name is Merrill Chandler. You should check him out. He’s at a company called CreditSense. We got him for three mornings. We’re going to pepper him with questions. We’re going to hit him hard. If you’re a guru out there and you’re thinking about, “I want to talk to Jason and Rob,” watch what we’d do to Merrill. We’re not allowing him to come in here and give us any pipe dream nonsense.
We’re going to eviscerate him.
We bring him in here because, one, we know he can do it. Two, he’s the real deal. There’s nothing that he’s going to hide there. We’re not going to expose any of his deep secrets. First, it’s already up there. It’s on the Texas Real Estate Radio Network Facebook page. There’s an event. Monday night, he’s going to be hanging out at the small apartment meetup. Tuesday night, he’s going to be up in the Woodlands. We moved the Woodlands one from Monday to Tuesday. Wednesday, we’re going to be over in the Energy Corridor. Tuesday or Wednesday, he’ll do the full 60-minute presentation. Thursday, we’ll be down in a Michael Boyd’s room down in Dickinson.
If he can’t make any of that, he’s going to do a webinar for all our national folks, for the folks in Fort Worth and Dallas and California. They’ll be doing a mastermind online. You want to meet this guy in public, upfront. He has an assistant that’s going to be able to answer a lot of your questions. He’s the real deal when it comes to building a business and creating lines of credit with local banks, not credit cards. He fixes that mess first. He shows you how to get real lines of credit at 3%, 4%, 5% interest.
You are going to learn stuff that you have never heard before. He’s in deep with all the FICO guys.
He’s one of the few outside guys that get invited inside.
He knows how all the algorithms work, how credit works at a very high level. Merrill will be here. Soon we’re going to talk about how to get started if you’ve got a little bit of money.