Contrary to what many think, there are no self-made millionaires or billionaires. No matter how you got to where you are, there are definitely people who helped you in one way or another. This is what host Jason Bible believes in putting forward the value of a network that is cultivated in masterminds. Together with co-host Robert Orfino, Jason talks about what the mastermind concept is and why it is used for about almost everything. They tap into how it helps with referrals, accountability, and overall support. They also let us in on THE mastermind that they are in and how it has pushed them forward. Learn more about a mastermind’s benefits as Jason and Robert talk about business, relationships, and real estate in praise of it.
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The Mastermind with Co-Host Robert Orfino
We’re talking about the mastermind, what the mastermind concept is and why we use that for just about everything. We were on the phone with Casey, who is our business coach. That’s probably the best way to say that. We were having a conversation about this. He has what he calls a personal board. He’s a partner or an investor in a gazillion businesses. I don’t know how he does his tax returns every year. I guess he gets a pile of K-1s that’s as thick as a Bible and then somebody does all that because he’s a partner in so much stuff out there. He has an advisory board of people where he’s bouncing ideas off of, “I want to invest in this or what do you guys think of that?”
One of the things that irks me, that is the worst term out there is self-made millionaires or self-made billionaires. There’s no such thing. You didn’t do this all on your own. There was a marketplace in which you participated in and that’s how you became wealthy. That’s how you got your money. When you look at a mastermind group, it’s a meeting of highly motivated people who share a common goal and are looking to encourage and help each other improve. It’s also an accountability group. Getting all of those people together in the same room to say, “Where are you at? Where are you struggling?” Here’s I think the tactical difference. Rob, can you send me all your contractors?
What? You can’t do that? What if I sat in the mastermind group and I said, “I’m having a real problem. I need a plumber. We had a line that we need to repair?”
Let me do the introduction for you.
That’s the difference. It’s not, “Here’s my list of vendors.” It’s, “What are the five things you’re stuck on right now? Call this guy, this gal, this person and these people.”
That’s what I did. I did two introductions. They need to get them done. Someone in the mastermind asked for an introduction. I made a phone call to one of my people in my network and I said, “I’m going to send you some referrals and these are good people. You’ve got to take care of them because they’re coming over from our mastermind.” They’re like, “That’s fine. Send them over. We’ll take care of them.”
One of the thing that’s nice about a mastermind group is we’re all using our contacts by referral but the reason that’s important is it’s just not a referral. We’re already doing business together. You are transferring a real business relationship to someone else who they may do business with.
It’s an introduction and I explained to each party how I know them. It was over at Robert Hall & Associates, Tony Watson. I was like, “Tony, I want you to meet so-and-so. They’ve done very well for themselves. They’ve got ten single-family homes. They’d like to start moving into small apartment spaces and we’ll work with them. We’re very excited to get them to talk to you before they implement any entity and tax strategies.” Conversely, I said, “This is Tony Watson. He’s been a friend, a mentor and a colleague for years. He’s saved my businesses and helped me perform at a high level. I couldn’t think of anyone who I could give you better hands for tax and entity advice when it comes to real estate investing.” That’s the introduction you want, not just, “Go to so-and-so or go to my website and hit that link.”You didn't find success all on your own. There was a marketplace in which you participated in, and that's how you became wealthy. Click To Tweet
That’s not how it works. It’s very interesting to me when we start talking about relationships and people think it’s hanging out at a happy hour and we’re building a relationship. It’s like, “No. Are you setting a business or not?” That’s the difference. You can take that relationship a little bit more seriously. Back to the mastermind concept, how many of you are stuck in certain places of your business and you don’t know how to get unstuck. We used to do these weekend events. One of the things I would ask is, “If there’s that one question you could get answered that you think is keeping you back, what is it?”
Breaking that down. A lot of people think, “Just answer my question and it will fix my problem.” You may not be asking the right question and some people, “There are no stupid questions.” There absolutely is. There are some questions that have some assumptions embedded in them that don’t make any sense at all. I know that goes against common wisdom. It’s like, “Jason, there’s a hurricane coming. What are you going to do with your property?” The mastermind concept, we get together once a quarter as a group and sharing these best practices a little bit longer for them. We do a webinar once a month as well.
We’ll have brunch at my house. We do lunch and dinners and things like that. We’re trying to make sure we’re staying connected and making sure we’re moving forward because it’s important. Real estate investing is very lonely. If you’re left to your own devices, those fears start creeping in. Having a good group around you alleviates all that fear. It’s like, “Jason did this or Mike did that. Mike’s doing it. You could do it. Here’s who Mike used. I did the introduction for Mike. Do you want the introduction?” It starts getting along the way. I bought a lot of guru’s stuff, but it’s been the masterminds that have excelled my business and my personal growth. It’s just being in the masterminds. I’ve paid a hefty sum for some of them, but being around some very successful people and picking up nuggets here and there and then having that network to fall back on is invaluable. I tell people, “I dropped $20,000 on a mastermind and within two days of the first mastermind meeting, I had already made $80,000.” It was for sure worth it.
When you’re in that group and have that ongoing communication online once a month, either lunch or brunch and then a quarter bringing all the people together, then bring all the heavyweights into the room as well. It cuts down on the fear. It feels like, “Everyone in this group is doing it. If I’m not doing it, then clearly it’s me there’s something wrong. I need to figure it out and I can move forward.” Identifying that you’re the problem is going to be one of the biggest steps you’re going to make. “I’m not doing it right.” That was that shift from making nothing to $80,000 because I wasn’t doing the marketing funnel right. I’ll tell a story. I joined Kent Clothier’s mastermind, The Boardroom, I was the original member. This was when he was doing a marketing mastermind, not real estate. I was in the marketing side of it. I was running my construction business. I said, “I’ve got this program that’s set by the city of LA.” He said, “Let me show you how to do it.” He brought me on the board. He said, “That’s how you do it. That’s how I do it.” Kathryn was sitting here taking copious notes as she always does. She’s pounding the keyboard. She’s a very forceful typer.
That was Saturday, by Monday we had the funnel in place and by Tuesday we had signed three gigs for $80,000. I was like, “That’s how you do it.” I email him back and he said, “Now I want you to do this next thing.” Having that network to be able to understand how it’s supposed to work. The biggest fears are always the unknowns. You could lose money but you’ll make more money. It’s the unknown that people are afraid of. When you have someone or team around you or a group of individuals around you that are already a little bit ahead of you, so it’s not unknown to them. We giggle and laugh a lot when people ask as these scary questions because it’s not scary. It’s just, “Go see Ashley. Go see Jerry. Go see this guy.” We are able to take those things down and break down those fears. That’s what the mastermind is about. It’s a peer-to-peer group that breaks down barriers and eliminates fear for people so they can move forward. We all have a common goal. We’re looking for individuals that are ready to take action. That’s critical.
This is very action-oriented.
This is not more study time.
This is not a sit around the group and pontificate about real estate. This is a doing group.
Talking about real estate is not doing real estate. They’re lining themselves up. One of the things that I would be working on is the pregame checklist. Who to talk to, who to get your tax consultant going, do your confidential needs analysis, make sure you have the right property managers lined up and then that’s it. Once you’ve done these ten things, then we’re moving on to making offers and getting deals. That’s for the whole group so they could break it down and say, “These are the ten things you need to do. It’s not that hard.” We’re calling it The Mastermind. Give me another Napoleon Hill quote, which is what I like to talk to people. “Tell me how you use your time and how you spend your money and I’ll tell you where and what you will be in the next ten years.”
All I do is spend my money on real estate.
Give me about 20 minutes to 30 minutes with any real estate investor and I’ll figure out where they’re at. I like going to a country club and starting conversations, start asking questions and listening. I was like, “I got it. You need a line of credit. That’s what you need. Where’s your FICO at?” It’s after that first five minutes of nonsense, the chest puffed out and all that stuff. It’s like, “What do you need? Why are you here? Do you want someone to pet you and make you feel good or do you want to get some deals done?”
“Didn’t you get enough hugs from your parents or you’re driving your old lady crazy at home? Why are you here? I can’t figure this out.”
That’s what we do in our mastermind. We have individual meetings, we have dinner meetings. We’re like, “What are you trying to do and where are you at?” Let’s forget all that nonsense out there. We’re not at the “I’m getting rich wealthy club,” whatever it’s called. We’re here and we’re about to do deals. What do you need?
The telltale sign that something is wrong is when somebody goes into this literally five-minute explanation of something that makes real estate so complicated. I did this to a guy. I said, “You knew more about real estate than I do. I got 500, 600 houses under my belt.” He’s like, “What do you mean?” I said, “You know all about these land trusts and doing it.” I’m like, “We just buy the houses and fix them up.” I feel like I’m in front of some deity of real estate here. It’s not that difficult.
I think what the mastermind can do is focus people as well. What we’re trying to do, “Here are the ten things you need to do, go do it.”
Part of it is a fear thing, part of it is an ego thing where they build up this barrier around them where it’s this complicated thing. It’s like, “Step one, let’s get all of our taxes done or check if your credit looks good. Let’s get our money straight. Where’s our money at? Can we get to it? Step two, let’s go look for some deals.” I know there are a lot of substeps in there where people are like, “Was it that simple?” Not really, but that’s the starting point at the process.
We worked with someone. It came down to all these crazy things, refi-ing and doing all this stuff and it’s like, “You need to put floor in that house and rent it.” We went from refi-ing and all this crazy complex stuff to, “You need to go to Home Depot, put the flooring on your credit card and put the flooring down. Put a ‘for rent’ sign outside.”
I promised him a phone call too. “I’m going to check in with you. See if that house is done yet.” It was all this, “We’re going to do this, we’re going to do that.” I can tell by the language you’re using which gurus you went to. I’m like, “Let’s just stop.” I’ll give you the equivalent here. Let’s say you got a pain in your side, you go to WebMD and you look it up. It could be gas or it could be the worst cancer that 0.0001% of the population gets. It’s probably gas or indigestion or something. Sometimes at some of these networking events, I want to walk around and grab all the lost sheep. I’m like, “Come here, guys. We’re going to have a little mastermind right here. All of you have said are the craziest stuff I’ve ever heard in my life that we’re going to cross-collateralized derivatives to go buy a single-family house. We’re going to go find a nice house or we’re going to find a house in a nice neighborhood. It needs a little work and we’re going to go buy that. We’re going to go buy a little duplex. We’re going to buy a little quadplex.”A mastermind group is a meeting of highly motivated people who share a common goal and are looking to encourage and help each other improve. Click To Tweet
The mastermind. We’re talking about surrounding yourself with people that can help you and influence you so that you can move forward and build out whatever you desire. The mastermind is about buy and hold. It’s about single-families, small apartments and Airbnb. That’s what we do. That’s what we work with. We’ve figured out some math on this. We figured out some banking regulations on this. We figured out the property managers. We figured out what goes into a bedroom on an Airbnb. We’ve figured out all these little variables and we’re making sure that people are moving forward. That’s what we do. We didn’t mention a price, so let’s mention a price. It’s $7,500, which if any of you’ve ever been into a room where you’ve been pitched by someone on stage or the blue suit at the back, you know that it’s a good number.
It’s like, “Run at the back of the room. Sign up for $25,000.” You’re like, “What?” There are 300 people back there and they’re all getting the same book. How does that work exactly? “Here’s your binder. There’s your business. Here’s your coach out of Cincinnati. He’s going to call in once a month and coach you on your business here in Texas.” You’re like, “What?” It sounds good in the seminar. It sounds great.
That’s what that speaker’s designed to do, make it sound great.
The other thing, I think there are two big benefits in our mastermind group. That first one is it’s the knowledge of all the people that are being a part of our network. It’s having that peer-to-peer sharing. The second thing for me, if I were an experienced investor, one of the number one reason I joined is we get a massive number of deals. People ask me all the time, “Jason, why don’t you just take all the deals down?” I’m like, “You don’t understand. I could sit in my Jacuzzi and we can buy ten houses a day. We don’t have the capability of taking all that stuff down.” It’s much easier to parse. In fact, our banks don’t want us to do it. That’s the other reality. People think like, “If you could buy 100 houses a month, why don’t you?” You’d have to have twenty different banks.
We are as aggressive as our private lenders and our financial institutions will allow us to be. We cannot be any more aggressive.
They are backed by some of the largest hedge funds in the world. It’s like, “You don’t have to buy this many this fast.” I know, so we’re building little groups. The trick for us is to build that reputation, that volume up so the deals continue to come to us. We’re the catchall for Houston real estate deals. Actually, I shouldn’t say Houston, it’s South Texas. We’ve got one that we’re looking at that is mind-blowing.
We’re doing the Lunch and Earn. If you want to get on that little webinar we do, we go over our deals. We are looking for lenders. We will be talking about some of the syndication deals we have coming up. We’ll be talking about how we’re putting those together and talking about our fund. Our fund is about to kick off in a very big way. We haven’t even mentioned that but we’re going to have a fund that’s going to own about $3 million worth of assets very quickly here.
If you want to go and get on the webinar, it’s (281) 401-9008. If you got any money you want to put to work in real estate, that’s a good place to start. That’s another interesting thing on the mastermind. It’s probably the third reason. There are a lot of people who are in the mastermind group that wants to lend and/or have a self-directed IRA account that’s earning nothing in it. They want to deploy that capital with people that they know and trust that are trained the same way they are. It’s a great place for private lenders to learn how to lend. I’m not going to say it’s safe, it’s not risk-free, but it’s in a controlled environment in which you’ve got every expert in the world at your disposal to make prudent lending decisions.
I talked to the attorney and one of the things we talked about was that comment has been bothering me. There’s a dude who said he had a seat at one of the trading desks or something like that and said, “Real estate can be low risk.” I said, “How was that possible?” She said, “That’s a REIT that’s been reviewed. That’s a Moody’s reviewed REIT. That’s how they can say that.” That takes three to five years.
It’s incredibly expensive.
There’s no one in our world that’s doing that. We go out as a matter of course and say everything is high risk.
You get these guys at on these real estate shows that will say, “It’s like a treasury. We’ve been outperforming the stock market. It’s as easy as the stock market, but it’s got these seventeen ways to make money in real estate and there are 600 ways to buy a house.” It’s not risk-free.
Let’s talk a little bit more about our mastermind. We’re excited about it. Here’s the deal. This is not beginner’s training. There are a lot of great rooms to learn in this city. We were friends with a lot of people that do a lot of good things with a lot of people new to the world. We’re talking about people that maybe have a few single-families already or aren’t quite in a position to start syndicating big 300-door apartments, but have a little bit of in-between spaces. Typically, they’re making six figures as an individual, maybe over $150,000 as a household. They have cash, can be liquid so that they can start buying them. You’re going to need 20% to 25% down. We’re not going to play this game where you’re going to go out and leverage all this other stuff because it takes too long. You’re going to need a good FICO. FICO is two, four and five scoring, not your FICO eight. If you don’t know what that means, then you don’t know what FICO is.
Read Gary Keller’s book, The Millionaire Real Estate Investor and we can fill in the rest of the gaps. When I worked for Bob, he said, “The difference between the expert and the amateur is you know the definitions.” If you know the definitions in the language and you’re like 90% there anyway. Let’s not spend our valuable time on a weekend event talking about what after repair value means. I realized for some of you that are new, you hear that and you’re like, “What does that mean?” It just means the value of the property once all is fixed up, retail. What’s it when it’s all pretty. You’re probably like, “I need to know more about that.” We’re not going to spend three days at a weekend doing that. You can go right to Google and say, “Real estate investing term.” There will be a whole bunch of them. You sit there and read right through them. Some of them are nonsense, some of them are legit. I heard one that I thought was crazy.
In the mastermind group, we’re going to sit down. “Where are you at, Bob? I’m brand new. I read Gary Keller’s book. What do I do now?” You talk to this guy for your credit. You talk to this guy for your money. You’re going to talk to a property management company. What are we trying to accomplish? Do we want to buy some Airbnbs? Are we going to buy some small apartments? I know this is going to happen that weekend. “It’s happy hour. Jason has his laptop open. Let’s put MLS up on the screen and see if we can make some offers and some houses. Let’s see if we can get something tied up here this weekend.”
I had one of our teams shoot out a couple of offers and then Kathryn put up for the eight unit. We’ll see where we are at that, so we’re pushing a couple of deals. I saw a couple of things pop up where we typically like them. I don’t think they’re quite Airbnb, but they’re certainly long-term buy and hold would appreciate. A wholesaler brought me something down in Texas City. It’s too tight. I’m going to drive by it and take a look.
There are two duplexes. One, they’re going to have to come way down on. The other one I like. I’m like, “I want to Airbnb this.” I called a buddy of mine, an Airbnb guy. He and another guy that I hang out with from time to time at the brewery. I said, “What’s going on with your Airbnbs over there?” He’s like, “I don’t have the numbers. My wife runs that side of the business. We’re killing it.” He said that the occupancy rate is through the roof.
We’re going to have good numbers. What I’m super excited about is we have a great economy. People are traveling.The biggest fears are always the unknowns. Click To Tweet
Yes, they are. I asked him, “Who is it? Is this business travel?” He goes, “No, these guys are coming down for the game and coming in for birthday parties.” It’s the most random stuff. He said, “Everybody’s traveling right now.”
There are three stages. That’s a perfect example. There’s the point where the economy is where you don’t put the money out to go to the game, you just watch it on TV. There’s the point in the economy where you pay for the tickets for the game, but you drew the long drive in the long drive out. Now we’re at the point where we’re going to drive in and we’re going to stay the night.
Not only are we going to stay the night, but we’re going to stay a whole weekend. It’s like, “We’re going to the Astros game and then we’re going to go to this place. We go to that place and we’re going to do this. We’re going to that.” We’re at that point in the economy where it’s like, “Let’s go do a bunch of fun stuff.” People ask like, “What happens when the economy changes?” I’m like, “That’s why you pay these things off as fast as you can.” Pay them down so when the economy slows down, you turn them in long-term rentals and then turn them back in Airbnbs when the economy picks back up. Although that doesn’t happen in Houston, truth be told.
I think we’re pretty strong.
We’re going to be A-okay here.
We sit down with the people in the mastermind. We’re going to talk about what the risk tolerance is because the thing that holds so many people up in this industry is fear. Let’s get it out there. Day two, we’re going to get it out there. What is your risk tolerance? We want to know. We won’t bring you the deal and we won’t even think about the deal. We sat down with a couple and they’re like, “We don’t want to do a heavy rehab.” “Great.” That five-unit deal that we’re looking at is not for them. The eight unit one is.
The other thing too is how many times when you had started something brand new where there was a lot of fear. I’ll never forget my youngest son. He could swim, but this was a competitive swim. Here you are, there are 200 people at these meets. It’s crazy and you’re in six lanes across. He started crying. He would not get into the pool. At one point, we actually kicked him in the pool. Now he’s an absolute animal. He does all his strokes and he’s good and he drops all this time. I don’t recommend the first time you do a real estate deal, you cry at closing. It’s probably not that much fear.
I have a nephew. He’s grown up now, but when he was a kid, they put them through Taekwondo. He was excellent at it. At some point to advance, you have to spar. He’s like, “I’m not going to spar.” He wouldn’t spar, but every move he did was perfect. When he started sparring, he got over it and the first couple of weekends and then that was it. He went on. He’s a black belt. He’s a powerhouse.
It’s not fun getting punched in the face your first time. After that it’s par for the course, but the first time is not fun. The first time you crash your car is not fun. There’s something about the Texas Real Estate Radio Network. We’re going to start launching some more shows in the next 60 days.
Let’s get ink to paper.
This is going to be so much fun. The mastermind, we get together for social reasons, but we’re also going to get together for a business reason. If we’re going to spend our time together, let’s spend our time on serious stuff, not learning definitions. Let’s talk about, “Let’s look at this deal or let’s go look at this property.” Let’s make this action-oriented.
We’ll figure how we can let some people preview a little bit. I don’t know, we’ll figure it out. We have enough in our mastermind. We just need to do it. I think maybe five, six more people can probably fit. The room holds 20 or 40, something like that. We’re setting up round tables. It’s a mastermind set up.
If you guys are interested in joining the mastermind and starting your real estate career or growing your real estate business, shoot us a text message at (281) 401-9008.
We might talk about acquisitions, but this is not about wholesaling. We’re going to talk about rehabs, but this is not about flipping. The focus on The Mastermind is about buying and holding. It’s buying and holding in the different types of spaces that make a lot of sense here in Texas.
One thing I mentioned on Facebook is that when you look at rents, short-term rentals, Airbnb, you need to have that local knowledge to be able to figure out what these things should be worth. What’s the highest and best use for that property? It’s not on some database somewhere. We’ve got to share our best practices there.