The Best Place To Invest And Not To Invest with Robert Orfino

TRE 11 | Where To Invest


We have the freedom to choose to do whatever we want; the same goes for investments. Jason and Robert talk about which markets to invest in and which markets to avoid. For them, you can invest in real estate with your IRA, with your health savings account, and with your Coverdell which is an education account. You can also do it with your 401(k) and with a Roth. Moreover, Jason and Robert give advice about being wary of joining some clubs where there’s no growth in the investment.

Listen to the podcast here:

The Best Place To Invest And Not To Invest with Robert Orfino

What Markets To And Not To Invest In

We’re talking about a little real estate. We’re talking about some places not to invest in, some places to invest in. We’ll look at some of the trends and the happenings in the cities: crime, wealth and all that good stuff. We’ll talk about the great TV shows out there. Remember, it is entertainment.

This is more entertainment than it is edutainment. There’s not a whole lot of education on the house flipping shows. We’ve thought about doing one or two with the stuff that we’re doing. It’s very different than what a lot of the shows are that you see out there. I almost think we go straight to YouTube. We don’t even shop it to the networks.

You create your own content.

They put it on YouTube.

They’ll lift it if it’s good enough.

Will they take yours or they’ll just call you? Will they take the idea?

They do. There are a lot of guys who have moved out of YouTube on to the regular cable.

The only place you could be able to borrow money is from people you've helped. Click To Tweet

That’s like Ben Shapiro. He has little podcasts. They put them on his nationally syndicated radio. That makes sense.

We have an unlimited amount of channels and not enough content. Content is king.

I was chatting with a couple of guys at the Small Apartment Meetup, which is the 2nd Monday of the month. Watson’s House of Ales is nearby our office on I-10. One of the conversations we had that night was, “What are you watching?” A couple of guys told me, “In the last six months, I don’t even watch TV anymore. I watch you, guys. I watch Joe Rogan.” A lot of these guys have been chasing Jordan Peterson around the globe because he’s always on something different. Whatever random thing they’re into like racing cars, boats and woodworking. A couple of guys were like, “I don’t even watch regular TV anymore. I get to the office. I turn on whatever I want to listen to. When I get home, it’s the same thing, hanging out with the wife, eat dinner with the kids. I listen to podcasts or something on YouTube. I don’t even watch cable or broadcast TV.” At our house, unless it’s sports or it’s some big TV series we’re watching, I’m getting beat like a rented mule about Game of Thrones. They’re like, “You haven’t watched it?” That’s what I keep hearing. I’m like, “I don’t know what that means, but it sounds important.” There would be dragons.

I’m going to go on a little tangent here. Here’s the thing. I must have been fifteen years old, a sophomore in high school. I was given a choice of five books to read for a book report. I read The Hobbit. I did the book report on it and I liked it. Do you know what a paddy wagon is?

As in what the police use? Yes.

I’m not going to tell you why, but when I was fifteen years old, one Friday night, the police brought me home on a paddy wagon. I didn’t get processed. The town is cool. Back in the day, they’re just like, “Where do you live?” You go there. The cop knocks on the door and says, “Is this your son?” That’s enough. It was a Friday night I came home. Saturday they’re like, “You’re in your room for a very long time.” I said, “Can I please go to the bookstore before you sentence me to life in prison?” My mom said, “Yes.” I ran up to the bookstore in this place called Daniel’s Den. The guy’s name was Daniel. It was his den, his bookstore. I bought the trilogy, Lord of the Rings. I couldn’t stop reading it.

I got hooked on fantasy when I was about fifteen years old. I’m completely bullied in school because of it. Not to the level that bullying goes on nowadays but like, “What are you reading?” Everyone will mock you. Two kids come up like, “I love those books. Those are great. You can’t bring them to school.” In my lifetime, I have seen the comic books and the fantasy stuff become so mainstream and make so much money. I feel some redemption in that. I was lucky enough to get to the world premiere of Lord of the Rings in New York City. There’s Liv Tyler and Viggo. All those guys were there. It was great. I had an emotional moment like, “This is not for geeks anymore.” I felt good about it. When I saw the dragons fly over Winterfell, I got a little choked up. I’m like, “This is amazing. I’m so happy we’re here.” In my lifetime, I’ve seen it going to be bullies. Everyone in high school, I read the Gale Sayers book, Brian’s Song or something like that. They would read about Vince Lombardi. That was all the book reports. The teacher said, “No sports books.” They gave us five. I picked The Hobbit. I’m very happy that I did. I’m happy and felt great joy when the dragons flew over Winterfell. It was a great scene. I was like, “It’s so great.”

Here’s the problem I have. I was in grad school for both Lost and the 24 series. I’m in school. When I’m not, I was working. I’m in school. When I’m not at school, I’m studying. I finally watched Lost three years after it came off air. I’m like, “This is great.” Everyone’s like, “It’s six years old.” I’m like, “I was busy.” I got into another graduate program. With 24, the first season, I was like, “This is so awesome.” It was two years after it was over. I’m like, “It’s going to happen all over again. I’m going to start watching this.” People are like, “Jason, I feel so sorry for you. That was five years ago. Here’s the new thing.”

That’s okay because when you get to the point where my dad is 86 and not very mobile, everything is new to him on Netflix. I caught him watching The Mermaid, this little tween show, the mermaid show in Australia. I’m like, “What are you watching?” He’s like, “Mermaids.” I was like, “Is it good?” He’s like, “It’s okay.” There is a future out there for it. You’ll get to go back and watch all the real estate flipping shows and have some real fun with that.

I don’t want to be a stick in the mud. I looked it up. I was like, “How many seasons was it?” I was like, “67 episodes?” It’s for 70 hours. I’m sitting there. I’m like, “Who’s going to sit there and watch?” I’m trying to catch up with The Punisher, which they now canceled. I’m furious about that. I’m not a huge Marvel fan but The Punisher is amazing.

Let’s get back to real estate. We threw our number out there if you want to text, if you have any questions, if you’re interested in a couple of the products that we were pushing. Some folks were good. Some people are like, “I’m stuck.” Someone asked me, “Do you do coaching or consulting?” I’m like, “Not really. What do you need?” She said, “I’m stuck. I’ve taken all the classes. I’ve given the gurus my money. I’m still stuck.” I went ahead and set up a webinar. We’re going to do a little, “Get unstuck.” We’re going to do a series of them. Get unstuck as a wholesaler. Get unstuck as a buy and holder. Get unstuck as a flipper, maybe even get unstuck as a lender. There are a lot of people who sit in a class, but the action part is the thing that holds them back. They don’t know what to do.

TRE 11 | Where To Invest
Where To Invest: The more time your money sits in your account, the longer you will be sitting at zero.


Let’s talk about lending because people are like, “Aren’t there deals? There are private lenders.” Private lenders are giving money out. Private lenders are like any other real estate investor. I was chatting with the folks over at Quest Trust. They were opening gazillion accounts, one of which was my wife’s. We were making all of our 2018 contributions before tax day. There are all these new accounts, all this new money. It’s like, “The money’s in the account. What do I do now? How do I put it in?” We’re talking about self-directed custodian. You can invest in real estate with your IRA, with your health savings account, with your Coverdell, which is the education account. You can do it with your 401(k), with a Roth. The problem is it’s self-directed. You’ve got to find the investments. Robert has got to find investments for Robert’s accounts. That is where people get stuck. “I’ve talked to my lender. I got Donnie’s, got all my stuff or Jet Lending has all my stuff. They tell me I can go out, start borrowing money and buying a property. Now what?”

We’re going to do a series. If you’re stuck, go ahead and text us at (281) 401-9008. Tell us what you’re stuck on as far as real estate goes. Is it wholesaling? Is it flipping? Is it buy and hold? Is it lending? We’ll make sure we send you the link for those webinars. They should be helpful. There’s going to be an event over at Quest. We’ll be there. There will be a lot of private lenders in the room. Some of them sit there for six months before they make a move. We recognize that it is an area where folks also get stuck in. The issue is that the more time that money sits in that account, you’re sitting at zero. If you haven’t done anything yet to make 10% on your money, you’ll have two-thirds of it the way to go. You’d have to make 15% from here on out, which becomes challenging because we have folks that lend to us at 8%, 9%. You’ve got to find someone who’s going to take your money at 15% if you want it to average 10% this year.

Which is more than the hard money lender. Some lender will come up to me, “Jason, I need two points to 16%.” I’m like, “I’m not your guy.” “Who would you recommend?” None of the good operators are going to borrow money at that rate. Some people get into this pressure situation where they’ve moved a portion of their retirement over to a self-directed retirement account at somebody like Quest Trust. They’re like, “Let’s go do a deal. I want to make 20%.” I’m like, “The deals are out there, but you’re going to have to vet the borrower and the asset.”

We do one night a month where we put on our investor hats, our lender hats and we get in the room with like-minded individuals and talk about it. We call it the Private Lender Summit. If you’re interested in that, go ahead and text us at (281) 401-9008. If you’re on our email list, you should get something. We like to know that you’re a lender before we let you in the room. We’re going to pre-qual you. There are some forms you have to fill out. Once you get in there, we usually have an attorney or someone joining us who can talk about some of the issues. We think that’s a great night for folks that are a little bit stuck there as well. On the real estate stuff, we have the American Real Estate Meetup. We’ve got Pasadena and the Dickinson.

In the Private Lender Summit, it’s typically a small room with ten, fifteen people. Me and Rob, ten, fifteen folks, and we’ll have an attorney in there with us.

We’ll just pepper him with questions. 

We call it Stump Ashley, which is getting more difficult as time goes on because he does know what he’s talking about, although we did hit him with a deal one time, the deal we’re about to close. He goes, “I have never seen this before.” I’m like, “I finally won one.” The first question I always like to ask when we have the attorney in the room is, “As a private lender, I’m putting my money into somebody else’s deal. What happens when it doesn’t work out? What does that next step look like? How do we go from Point A to Point B and get this thing solved? I get calls nationally from people all the time, “Jason, are you a member of this club? I’m a member of this club. We’re in the family. I’ve lent money to this person. They’ve gone dark on me. They’re not returning my calls.” I’m like, “How long have you been in this deal? A year and a half? You need to foreclose.” “We’re good friends. We both got the backpack.” “You need to foreclose.” It’s tough. You at least send a demand letter. Private Lender Summit, American Real Estate Meetup, that’s another one of Rob and I’s companies. It’s a fantastic company. It’s where we do peer-to-peer networking and sharing, peer-to-peer problem-solving. Typically, whoever is hosting the American Real Estate Meetup in that location will have some presentation. You did a ton of the Airbnb stuff.

I’m still going. I’ll be in Dickinson and Pasadena.

Dickinson and Pasadena, if you guys want to catch Rob Live.

We have Merrill coming in. That’s what we do. We don’t have a big $25,000 coaching program. We’re out there. Our goal is to make many of you as successful as quickly as possible. When we screw up, because everyone does, we want to have a good network of friends that we can lean on and get some help from.

I’m waiting for the next crash because I know the only place you could be able to borrow money from is from people you’ve helped.

There are a lot of people who sit in a class but are held back by not taking action. Click To Tweet

If there’s a crash that comes five years, you’re pulling a lot of money out of Texas.

You’d not be getting money from the banks. It’s got to be from right here.

We’re talking about folks who were a little stuck. That happens to most of us. That is that first six to nine months. Hopefully, you can get moving in that first year.

When I got started, I joined a handful of clubs here in town. In fact, if you Google my name and some of those clubs, I have done case studies for some of them. I’ve been on radio shows. Here’s what happens. You join some clubs. You do a couple of deals. You go, “Something’s not working all of a sudden.” You don’t understand how you got those deals in the first place or you’re way too much out of pocket on some of these rental properties. There’s some other stuff that happens where you then fall out of the wheelhouse, this very defined wheelhouse of that particular education company. If you don’t fit right in this little box, you get outside of that and you think like, “It’s all real estate. It’s related.” If you get outside that box, it gets cold quick. For those of you who are cyclists, it’s like getting off the wheel. When you get outside the pack, all of a sudden you’re exposed to the wind. It’s a bad place to be. It takes a lot more energy to move you down the road if you get out of that pace line, get out of that draft.

That’s a big issue because there are so many ways to skin this cat. Folks drift from one pack to the other, “This guy is doing multifamily. We’re doing tax liens over here. We’re doing foreclosures now.” It’s like, “I get it.” Some of these you’ve got to pick the lane and go. It’s a little bit different than what we’re doing. We’re looking at rentals. We’re looking at maximizing rental profits. We look at Airbnb, small apartments and not so many single-family homes, even though we have a small portfolio of our own. That’s what we’re looking at. That’s not us jumping from ship to ship. That’s us maximizing and moving forward. It would be another thing if someone said, “I want to do single rentals or I’m thinking about doing apartments. I’m thinking about Airbnb.” How many do you have? If the answer is zero, you’ve got to pick one and go. We’ll talk about how the 20% succeed in this business and what’s different about the 20%? Is it motivation? Is it a mindset? Is it the reserves? What’s separates? There’s about 80% failure rate in the real estate investing world. What’s the separation? That might be a good show for us to talk about.

Why do real estate investors fail? Why others succeed where others fail? Rob, what’s the number? If you’re stuck, give us a text, what’s the number?

Give us a text at (281) 401-9008.

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