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Why You Should Do It with Robert Orfino
Real Estate Is Great, Find Out Why
Jason, we’ve been throwing a big wet blanket out there this whole week on this business and gurus and how to get started and all that stuff. I want to turn it around a little bit.
People are starting to think, “What are you doing this show for? It sounds like real estate is terrible.”
We want to turn it around a little bit. The gist of what we’re trying to do is gone in this thing eyes wide open. Understand that it’s going to cost money, it’s going to take time, it doesn’t happen quickly and it’s not for free. There are people out there who all they want to do is sell you some books and DVDs and they’re not vested in your best interest. Be aware of those folks. It’s in every industry. We want to talk about once you realize that you can do it, you can shift from that 86% of the population into 14% of the population that is workers versus entrepreneurs. You can shift in that and you want to start your own business, whether it’s wholesaling or flipping or buying or holding or lending, now let’s go do it. Because the life where you complained about the drive-thru guy and your teacher and your coworker, that’s over. You don’t get that anymore. It’s about, “How do I succeed every single day? How do I grow every single day? Is my business moving forward every single day?”
One of the challenges in being an entrepreneur is that at some point you realize that your success is all on you. There’s no complaining. There’s no, “Susie at the office is a terrible person. Bob tried to do that.” There’s no complaining anymore. We get around friends and family and a lot of our friends got jobs and careers that they like, but sometimes the inevitable whining and crying about what’s going on at work starts and like, “I can’t do this.” It’s all on you.
There’s no suggestion box.
Let me go clear that. We can’t do that. Corporate won’t let us do that. We wanted to implement this great idea, but they crushed it. You are the man.
The buck stops with you. There’s no one else to blame. You can blame the market. You can blame a lot of people. We see people complain about stuff all the time. It’s like, “That’s you.” I woke up one day with $452,000 in the hole. I could blame the economy, I could blame my partners and all that stuff, but it was me. I got me here and I dragged my wife along with me and then I turned around and said, “Time to get going.” Over the last few years, I’ve got myself out of that hole. I restructured that hole a little bit. It looks more like an in-ground pool than it does a test trap or a tiger pit. You’ve got to turn it around. “What do your days look like? What capital do you have? What resources do you have?”
You’ve got to take stock and take stop almost weekly, if not monthly and sit down and say, “Are my private lender is still with me? Have I talked to them? Have I touched them? Have I sent him an email or a greeting card? Have I sat down for coffee with them? Are my acquisition folks still out there? Are the agents that I network with still bringing me deals? If not, why?” You’ve got to keep that machine primed. That pump has got to be primed. It’s got to be greasy. You’ve got to make sure that you are talking to people and keeping yourself out there as an entrepreneur and a business owner.
An example of this is the triplex that came in. George and I had been friends for a few years and we’ve always wanted to do business together. He’s a good dude. He sends me a text, “Let’s get together.” A couple of other guys and I go get together at Saint Arnold’s talk shop. We’re hanging out and we looked at some of his portfolio and a couple of the other guys that were there. We’re driving around that side of town. Lo and behold, he sends me a text, “I’ve got this triplex. Do you want to take a look at it?” I said, “Yeah.” We look at it and we moved real quick. I’m like, “Let’s take it.” People are like, “All you’re doing is talking all the time doing Facebook Lives and radio show and then you’re at this event and that event.” I’m like, “You don’t understand, it’s staying in front of these people.” Keep sending me the deals, keep the pipeline. It’s not one phone call like, “Send me your deals.” That’s not how the world works. It’s churn. You’ve got to get that water moving.
I was at an event and we’re in the mastermind part of it. We’re talking and Michael says, “I can do comps for anyone.” I was like, “Do my comp because it’s a really hard number.” He’s like, “I don’t know.” In that room, there was a guy who’s like, “I went out there and looked at that.” I’m like, “What do you think?” He’s like, “It’s in rough shape.” I’m like, “How come you didn’t buy it?” He’s like, “I’m talking to my uncle about it.” I’m like, “It’s too late. The contractor is in. We have it.” He’s like, “What are you going to do with it?” I’m like, “Based on what my contractor told me, we can make five units there.” We’ve got to see if it’s zoned correctly and all that other stuff, but we can get to four and there’s a possibility to go to five and we can put two more duplexes in the back of the lot. We could have nine units there.
We’re going to form a triplex to a fiveplex at $900 a door.
It’s a good number.
We’re going to be all in it for $270,000 bringing in $4,500 a month gross. You keep sending those deals to us all day long.
You couldn’t even get to the second floor on one of the buildings because the staircase had fallen down. There’s work to do. Is it a lot of work? Yes, it’s a $130,000 rehab on a 20,000 square foot lot.
It’s in the great part of town. It is the worst house in that neighborhood by a wide margin. Is it big?
It’s huge. There was no collusion.
We’ve known each other for years. We’re friends and it’s staying in front of people. Before I didn’t have time to take meetings like that and now I feel like that’s my job. Like, “We need to get together.” I’m like, “When? Is it this week? When this week?” I want to have a conversation about us doing some business, especially guys like that. They’re doing a lot of volumes. He’s now got a shop. He’s got a whole team over there so I know where these deals are going. They’re coming to this guy and you close one or two of them and you end up their first phone call, not their second or third.
You’ve got to be active. You’ve got to get started. You’ve got to do it. The rewards are phenomenal and it’s not monetary rewards. It is a sense of purpose knowing that you are responsible for nine to ten people directly reporting to us and we’re bettering their lives. That’s a good feeling. It’s also a lot of responsibility. That is our purpose. That is why we’re driving around all over the state, running around, looking at properties, “Take it. Pass. Go get private lending. We need more private lenders. I better talk to more people.” At the end of the next few years, it should be a good output for us.
That’s $25 million a year so we should be closing $2 million a month. We went down to Surfside and looked at those beach houses. I was blown away by how nice they were. They were much better than the pictures. We looked at some other assets down there. We’re going to pass on one. I looked at the numbers again and I’m like, “Do we pass on it? Do we make an offer?” Then you’re like, “I don’t know.” That’s a tough one, but it’s the churn. I get people all the time like, “Jason, I’m just getting started. I’ve got my business cards and I’m having a hard time getting traction.” I tell people, “You don’t get to be the star player right out of the gate.” If you’re lucky enough to suit up and sit on the bench, sit on the bench and at some point, you’re going to get an opportunity to go on the field. You got to be in the game.
The guy sitting on the bench is in the game. You don’t want to be in the stands.” You go to networking events and you go to real estate education events. Most of those people are fans of real estate. They’re not playing the game. We get 2,000 to 3,000 views on every single video we drop every single day and how many of those people are doing real estate? There’s a lot of fans out there and I’m appreciative of that, but you’ve got to get into the game. The game is getting on the field. It’s getting your money together, it’s getting your contacts together. That’s the part that is most important and then you start getting deals.You are the reflection or the composite of the five closest people around you. Click To Tweet
There are 25 people on a baseball team and there’s only nine on the field at any given time, but they still made the team. That’s the thing. Get on the team, get in the game and start playing. Recognize where you’re at, “I have no money and all I have as a business card.” It’s going to take longer, but you’ve decided that you can do this and you should do this, then keep going.
People way overestimate what they can do a year from now, but they way underestimate what they can do in a few years. We’re standing atop a beach house. I’ve been doing this for a couple of years now and I never thought in a million years it would look like this. It’s been a few years. It’s insane. We talked about all the rough stuff, all the costs and how expensive it is and you lose a lot of money. Now, let’s talk about the upside. I could tell you one of my favorite things and I didn’t realize this until I had gotten started in real estate and that is we get to choose who we do business with. It is nice. We have fired people before. I fired sellers before.
I walked at a house and this guy was so rough. I thought it was his salesmen shtick like, “You’re not going to get me.” He was abrasive and rough. I looked at my partner at the time and I said, “I’m ready to go. How about you? I don’t need to talk to this guy anymore.” He jumped in the truck and left. It’s stuff like that. I don’t have to deal with people. That’s a different level of stress. As an entrepreneur, you’ve got certain stresses and as you’re working in your office, you’ve got a different level of stress. I can tell you, I don’t have any stress with the people I work with because I fire all those people. I don’t want to deal with you anymore. It’s time to get you out of my life.
Along those same lines is that Jim Rohn thing. You are the reflection or the composite of the five closest people around you. When you start this business, you should be careful about who you’re picking. What five that looks like? Are you all five beginners who have no money? That’s not a good circle. There are organic mentors out there that will spend some of their time or share some of their wisdom. There are some good gurus and there are some bad gurus who went over that. You need to get around the people that are doing it as quickly as possible. Most people if they’re a flipper and you meet them and say, “I’m flipping a house.” If you ask, “Can I come out to your flip? Can I buy you a cup of coffee while you flip and walk me through what’s going on?” Most who are doing it are like, “Yeah, that’s great.” You go out there and he’s like, “This is my electrician, this is my plumbers, this is sheetrock guy.” You’re like, “Can I have their contact number?” He’s like, “Yeah.” Most of us share freely. The people that are little closer to the vest are the people who are all hat no cattle.
They’re like, “Don’t steal my contractors. He’s my plumber.” Like, “Are you a creeper? It’s a plumber. Chill out.”
Get in a group. Get in the peer to peer. We do a little mastermind thing and we recommend that highly. We don’t need your $100 a month. That’s not why we’re doing it. We’re doing it because we want to see people succeed and we want people around us that have the same mindset. Like-minded individuals are what we looked for. Here’s my big problem. I was thinking about this and I started to get angry. When you understand the back half of that room and you’re able to sit there and I get to sit from a lot of them. When you’re in a room and that team refers to the people as units, it’s horrible. They’re like, “We need four more units. We’ve got to close four units.” I’m like, “Do you mean people?” They’re like, “I had a bad month flipping. I need to sell for more packages.” It’s a shame on them. Shame on that guy that comes through town and is looking at you as a unit. We do it too. We have some stuff that we sell, but I have people at my house for brunch.
I’m not sure when was the last time any of those gurus out there that had people over their house for brunch. We have open office hours. Anyone who’s paid anything to us in 2018, come on by. If you have any questions, I’ll be there from 11:00 to 3:00. I got one guy coming in at 3:00 and he’s like, “I got to know my numbers. Help me understand my numbers.” I’m like, “We’ll sit down and do that.” Other people are coming in and I’m like, “Come on in.” If you’re in town and you’ve worked with us, come on in. I don’t know anyone else who does that. I don’t see any of these other big gurus opening up their office saying, “Come on in. I’m not going to sell you anything. Let’s talk and we’ll see if we can move it forward.” That unit, the blue suits as we call them. You wear a blue suit because that encourages sales. It’s all that technical suit and talks about units. I see a lot of my friends and our students and our peer group going, “There’s another guy at such event out in Carmel-by-the-Sea.” I’m like, “That was a $25,000 event.” I know the only thing you got out of it was that picture on Facebook. That’s it.
I see these guys fly out. They do 40 to 50 deals a year. They’re like, “We’re trying to get to 100 deals a year.” I’m like, “Okay.” I joined this group in Florida and I’m like, “Why did you have to join a group in Florida? I do 100 deals a year here. What’s the guy in Florida going to do for you here in Houston?” I don’t get it.
We taught you how to avoid those credit card running to the back of the room traps at the beginning. I got to tell you, it is all along the way. Every year in this business, someone is hitting me up for $25,000 to $100, 000 mastermind and I’m like, “Why would I do you? Who cares about Carmel? If I want to go to Carmel-by-the-Sea, I’ll go by myself. There’s nothing there.” You have to be careful. Some of the best people are some of the cheapest. We have a guy in California and he’s like, “It’s $6,000. I just want my time to cover it. That’s it. I got to fly to Houston. I got to fly to Colorado at $6,000.” You’re like, “What will you teach me?” He’s like, “I’ll teach you all this”. I’m like, “I’m in.” $500 a month is amazing to have that training. The other guys would come in and want $25,000. They’re like, “We want to see if you qualify for our group.” They make it feel elite and you’ve got to show them your last 25 HUDs or whatever and then you go there and then you sat there for two sessions and you’re like, “This is a joke.”
I was co-interviewed for one of the big national ones. I’m having this conversation with this guy. I reached out to a couple of buddies that had been in and they’re like, “It’s a joke. You’re well beyond that. Don’t even waste your time. This is a complete waste of time.”
You can hunker down people in your neighborhood, in your town, and you can work with them and people will share freely. We have rooms. We’ve got to cover a little overhead. It’s $100 a month for our mastermind. It’s nothing. Yet, we see people going out there dropping $15,000 to 30,000 on this stuff and we don’t understand why.
They’re like, “I wanted to join one of these big groups. I don’t have any money to do real estate or I’ve got half the money I had for real estate.” I’m like, “I can’t help you there. I can’t go get your money back for you.”
On this episode, we’re talking about how you can do it. We want you to do it. We want you to make that decision to do it, but it’s a decision that happens over a week, over a month. It doesn’t happen on the last fifteen minutes of a guru’s pitch. In that last fifteen minutes, you don’t decide, “I’m about to dedicate my next few years and a ton of resources to do tax liens.” That’s not when it happens. You have to sit down and you have to think about this, plan this out. Understand that it’s going to take sacrifice, it’s going to take time, it’s going to take resources, but once you’re committed to doing it, then we want you around us. We believe in you. We believe in this business. We love this business. This is a get-rich, create wealth business. It doesn’t happen in 30 days. This is a get-rich slow business. A year could be so for some people or a few years. We look at a few years horizon in almost everything we do and so should you.
You shouldn’t run into this saying, “I need $10,000 in the next 30 days.” That’s not this business. We’ve set up a network for you so that we can provide support. We want you around us. If you’re earnest about this and you’ve made a real decision and that decision is made with your family and friends and you’re like, “I’m going to be a real estate investor. I’m going to go start.” Come find us. Follow us on the radio in the morning. Come to our events. Follow us on these webinars. These $97 webinars on Saturday. Come and do this. We want you around us. Make us part of your five because this journey is amazing, but you’ve got to start.
Get into it, get going and start moving forward. We can help. We’re here to help you. We are not kidding when we say we want to create 200 successful millionaire real estate investors in the next couple of years. That is our goal. That’s why we’re doing this. We want to build out a network of a hundred successful real estate investors that we can lean on and in order to do that, we’re giving now. We want to have you lean on us. Come find us. We’re out there. We’re at these events. We’re at the Watson’s bar, were at NOAH’s event down at Dickinson, we’re on the air, we’re on the webinars. Look us up, Texas Real Estate Radio Network. Find us on Facebook, like the page and start following us.
This business has tremendous upside, but we also know the pitfalls along the way. Sometimes you’re going to need a little bit of help and we’re there to help you. We’re goofy. We’re a bunch of knuckleheads in the morning here on the show sometimes, but in all seriousness, we want to create successful real estate investors. We want people to look back a few years ago and be like, “These two guys, I don’t even remember their names. They are on the radio show and they got me fired up one day and I said I’m going to go do this. I don’t live in Texas anymore. I wish I could remember those guys names.” That’s okay. We want to get you moving forward.
If you need a little help and you want to get started, we have a webinar series coming up. We have our mastermind. We have some classes. We have some stuff out there. If you’re looking for a 30-minute consultation, we’ll schedule that too. We’ll give you 30 minutes of our time now. It’s going to be windshield time for me, meaning I’m driving, but I’ll give you the 30 minutes. I’ll talk to you about, “This is step one, step two, step three.” I’m happy to do it. It’s (281) 401-9008. Go ahead and text us. Our website is being rebuilt. You’ll see that. There’ll be ways to get over there, but we’re here to help you because we believe in this business. Once you decide that you can be a part of this business, then we believe in you too.
There is a way in which this works and it will change your life, but there are a whole lot of ways it doesn’t work. That’s one of the things I figured out over all these years. You read the blogs, you’re on the podcasts, you listen to the radio show and you sign up for all these different real estate educators. They have elements of stuff that works, but they never put the whole thing together. What does it all look when it’s put together in one big package? The big challenge is, I don’t think it’s the education. You can go, but 99% of the stuff is free. It’s the network. The hard part about the network is like, “I joined a national group.” I’m a part of a national club. There are 30,000 people inside that Facebook page. You’ve got to parse out who are the ones that are doing the business. I guarantee you it’s about 1%. I’ve got to find 300 out of 30,000. That’s the problem.
You only have so much time. When I run into a stumbling block, a roadblock, a challenge and I can’t figure out who am I going to talk to that’s doing this, “You’re going to get on the phone and talk to your coach in Ohio.” That sounds like a great idea. “I’m having a problem with a flip in Texas City, so let me call the guy in Ohio,” or I could call the guy that has fifteen houses in Texas City. That’s the difference. The stuff is easy. It’s out there. It’s a simple business, but it doesn’t mean it’s easy. It’s a simple business to understand and we’re the real powers in the local network. I can put a post. I sent a buddy of mine a text message. We were looking for a business evaluator and I talked to one guy and within five minutes, he said, “Talk to this guy,” and those people are hard to find. It’s the network and maybe you don’t know but I can guarantee between us or somebody we know, someone is going to know. The hard part is if you’re in a network where most people are not working, that network is of no value. We’re talking about why you should do this business. At this point in my career, I can’t imagine doing anything else. At this point in my career, I’m having fun. This is fun.
At this point in my career, the last few months, we’re going up the hockey stick. This is good and we want to share. We want to show other people the journey and come on along. Maybe you’re not going to buy 70 units in the next 30 days, but maybe you’ll buy two. Come on. Let’s go. I love it. When I bought my first, that’s so great.Make a decision that has been given a thought of over some time. Click To Tweet
At the Redneck Country Club, a guy grabs me and says, “I started listening to show. We were about to rent out a house near the beach. It’s a long-term rental and we decided to Airbnb it for $4,000 or $3,000 a month.” It was something insane. He said, “We were going to make about $1,000 or so a month, but now we’re at $4,000 or $5,000 just listening to the show and what you have been sharing.” I was like, “Tell me about that deal.” He was like, “What are the deals you’re working on?” I’m like, “I don’t know. I got all kinds of stuff in the world.” I’m like, “Explain to me that whole process of going from we bought it and renovated it and we were going to turn it into a long-term rental.” It’s not a beach house, but it’s close enough. I said, “Take me through the thought process in getting it and you, changing your mind to doing Airbnb and short-term rentals.”
We talked about that and he’s like, “We started looking at the numbers and we’re like, ‘This is crazy.” What’s at risk at this point? Some furniture, that’s what it is. I’ve got to buy some furniture. What if you decide, “It doesn’t work. I’m going to turn to a long-term rental.” Take the furniture out. That’s what you’re risking at this point. That’s what he did. He said, “We’re in the middle of getting furniture and all the little doilies and all that stuff you’ve got to get for our house. It should be ready for the next couple of weeks and we’re going to start Airbnb-ing.” I get more excited about hearing that than you and I go and look at the triplex. I was like, “That’s cool. Where am I supposed to send the wire?” I still don’t have the wiring instructions. You were screaming and yelling at me, “Send the wire.” I’m like, “I don’t have the bank account.”
For people like us, we need that sense of discovery. We need to do Airbnb. We need to start getting into small apartments and other things. We’re looking at RV parks and trailer parks because we got single-family. We’ve done the one thing. We’ve got it. I still need a few more. I’m still working on that, but what’s next? It’s got to stay fresh, I don’t mind when people say, “I’m looking into this.” I’m like, “That’s great. Look into it.” Do that whole self-discovery, external discovery. Do all your research, feel good about it, think about it and then take action, but don’t do it because some guy came through the town and told you tax liens are the greatest thing.
That gets complicated quickly.
There are professional attorneys that do that. People have taken that stuff down. We live in a world where we think anyone can be president, we think anyone can be a doctor. Anyone can’t do tax liens. It’s hard. It’s a tough little niche and you’re competing with professional attorneys. It’s like the day traders. You think anyone can day trade. Anyone can lose money on the stock market for sure. Having that niche and that little understanding and having a finance background and having a mentor in that business, that’s hard. There are a lot of gurus out there who dumb it down. For $997, I can show you how to run for Congress.
For $997, I’ll show you how you could be the next senator for the great State of Texas.
You could be the next great senator. I was like, “What?”
If you look, the information is available to show you how to become a member of the Senate. It is free and available online disclosed in government documents, but we’re going to give you the secret to how you could become the next senator of your state.
Don’t worry about the constitution. We’re going to show you the real stuff.
There’s a real secret out there on how to become a senator from your state.
How to get big money contributions.
The Senate is the most powerful deliberative body on the planet. There is no more powerful group of people than the US Senate, but we’re going to show you how you could be that. Granted that this room has 500 people in it and we only have two senators from each state, but we’re looking for a few of you we could partner with to run for Senate.
It must be easier to be a senator in Montana or North Dakota because there are only 900,000 people. It must be a much better opportunity to be a senator in Montana.
Here’s what we’re going to do. If you come to my class, we’re going to teach you how to become a senator in Montana while you live in Texas. We’re going to have a VA help you find donors for your campaign. It’s going to be completely run for you. Here’s this magic box so you too can be a senator for Montana.
“You don’t have any money?” “No problem.” We have an inner circle for $25,000 and we will introduce you to big agricultural executives. We’ll make those introductions for you. We’ll show you the letters that you can write to the pharmaceutical industry to get donations.
We will show you how to network at these events to attract the best money and the right kind of consultants because you can’t run for Senate and do it.
I’ll give you my consultants. They’ll give me 15% of what they make from you, but I won’t disclose that to you.
You’re also going to need a marketing campaign.
We have a guru that’s going to help you out and we got these great slick postcards that are only $1.25 apiece.
You too can live in the great State of Texas while being a senator from Montana. We’re looking for a few partners to become a senator in Montana.We live in a world where we think anyone can be president and can be a doctor. Click To Tweet
Now, you become a senator of Montana, you move to Montana and you start networking and you give first. You become a pillar of the community known as someone that gives to the community and helps people. You give first, doesn’t ask for anything, keeps moving on forward, helping the community, build a community, create jobs and get other businesses to come to the state of Montana. You work your tail off for many years and then make a decision like, “I can make this state better and therefore I’m going to go ahead and step out and go out and try and become a senator.” For some reason, we believe that we can mail this in for $997. It’s like anything else in your life, you’ve got to put the time in.
The $997 Montana senator package. I see a video out of this next to the Joe Biden networking.
I’ll need to go on the road though, but I’ll have to give half of my proceeds to the REIA club owners. I have to give half of my senator fundraising to the REIA club owners.
We’ve got a package. If you want to be a senator in Montana, we’ve got a brain surgeon package.
That senator thing is old news. We have the brain surgeon package.
That’s the old way to invest.
I got something new. It’s brain surgery.
“Rob, I don’t have any money, time and science background. In fact, I barely got through freshman.”
I’ll tell you, that is the best thing about brain surgery.
What’s that, Rob?
You don’t need any money, experience or have gone to thirteen or fourteen years of college.
Tell me more.
For $997, I’ll give you the DVDs and then I’ll show you how to go out and find a brain that you can start working on it.
You’re going to help me find a brain? I’ve got some dopey family members. They could use some brain surgery. Will one of them work?
We recommend you start with your family. Go to your friends and family first.
I heard the hardest part is the first one.
The hardest one is the first one, but once you get the first one done, it’s so easy. It’s in and out. You’ll get it productive and then you can hire staff and get the VAs to do brain surgery for you.
This is a mailbox brain surgeon.
Your VAs will do your brain surgery for you.
This is great. Can people come to my house? Do I even have to leave my house?
No, not at all. You can do it right from your computer. This is one of those things were the station wants to remind you that the views shared on our show are not those of the station.
I’m waiting for the cease and desist letters. I’m waiting for them. I’m waiting to get kicked off the air too. We’re going to be on the show only at some point. I already know it’s coming. We’re going to anger everybody that’s on this station. I don’t know how we’re going to get into Orange County.
We went through a lot of good stuff. Know that this creates wealth, but it creates wealth slowly. It doesn’t happen in 30 days. Go into this with eyes wide open. At the end of the day, in all seriousness, this is a great business. We love it. It’s helped our families out. We see a bright future here and we want to share that with anyone who makes an intelligent decision to get into this business.
I want to thank you for reading this blog. It is growing quickly. If you are reading any of our blogs, please like and share. This thing is growing organically.
Have a great day. We’ll see you next time.
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