Worry Free Retirement Through Real Estate Investing

TRE 47 | Real Estate Retirement Investment

 

Don’t rely on passive income alone. Be 100% in charge of your life before or after retirement. Jason Bible takes us on a journey to successful real estate investing. Diving into retirement invesments, he talks about establishing a real estate business for your future, and invites you to start taking action towards real estate success through their mastermind or real estate club.

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Worry Free Retirement Through Real Estate Investing

If you’re new to the show, we’re a real estate show, although we talk about a lot of stuff that’s not real estate related. We do Airbnb and small apartments. That’s principally what we do. We do some long-term rentals, some single-family rentals from time of time, but it’s Airbnb. Our belief is that this is a marketplace that is brand new. Relatively speaking, Airbnb is still pretty young. Some of the big hotel chains and those people are starting to get involved in it. Does it require more work? Absolutely, but when we look at the cashflow and the amount of returns, it made a lot of sense to us to get into this space.

Why Passive Income Is A Myth

One of my favorite videos out there is from Gary Vaynerchuk when he talks about passive income. There’s no such thing as passive income, 100% passive. Unless you put your money in the stock market and pray it doesn’t crash. When you buy an apartment complex, when you buy a single-family house, when you buy a storage facility, when you buy an office building, they’re going to require a little bit of work from you. You’re not moving tenants in and out. You’re not painting the walls. You may not even be negotiating leases, but from time to time you’ve got to check in on that asset. Where are we at? Who’s moving out? Who’s moving in? What new leases have we signed? What does our maintenance look like? You’ve got check in from time to time. I’ve never been 100% passive income guy. I’ve never believed it myself after owning hundreds and hundreds of properties. That passive income thing is probably one of the biggest myths out there.

After Retirement

Truth be told, it’s a greed issue. We have this wild idea that, “I want to retire when I’m 22.” It’s like, “You want to retire at 22. You’re probably going to live until you’re 90. What are you going to do?” I don’t know. I was thinking about going into the club later and play a little golf. It sounds the same in your 40s. It’s like, “I want to retire in my 40s,” and then what are you going to do? I put out a post and one of the crazy things I saw when I worked in Corporate America is you get a guy or gal who had worked in an organization for 30 years. They like what they do and they’re not ready to retire. Maybe they’re there 40 years and all of a sudden they get the pink slip because they’re the ones that make too much and obviously have all the knowledge and a fantastic fit for the organization. We’ve got to watch that bottom line and we’ve got to get rid of this person. They’re like, “What do you mean you’ve got to get rid of me? I’ve been here for 40 years.”

The problem is that now they’re “retired” involuntarily and what do they do next? The statistics, especially for men are not great post-retirement. I can pull the stats up, but a vast majority of men retire and they die within seven years, sometimes five, sometimes like a couple of years after. You’ve got to have some purpose out there. A lot of folks, particularly Americans, get their purpose from work. There’s nothing wrong with that. I don’t think there is. The question you’ve got to ask yourself and this is a question I asked on an email I sent out is what if you’re not ready to retire yet? I still believe this statement to be true, retiring is leaving at your best. The sport of business you can do as long as possible, as long as you’ve got all of your mental faculties.

Real estate allows you to build investment wealth without having to work 90 hours a week. Click To Tweet

Not so in the sports arena, but you can certainly do business the rest of your life. I’ve got some gentleman I work with that are in their late 80s and I’ve got some other folks that are in their early 90s still buying and selling real estate. They are still lending money and buying a couple of little rental properties here and there. What makes this fun, at least one of the reasons it’s fun for me is that if I decide to do it and make it a career for the rest of my life, I certainly can. Nobody gets to tell me when I’m ready to go. Here you are. You’re an engineer, upstream engineer building all kinds of cool stuff. You get this network of people, like your friends or the people you work with, the people you hang out with on the weekends. All of a sudden at 60, 63 you get the pink slip because we’re having a downturn and now what do you do?

Your whole life was there. I don’t think that’s necessarily a bad thing. A lot of people will sometimes put that in the context of a bad thing. It’s like, “You work all the time.” It’s like, “That’s where my friends are at. It’s where all my interaction is at. It’s where all my social value comes from, the things that I do at work. You’ve got the family, but they’re integrated into the rest of your work family and people you hang out. I was at a party. It was a pre-cruise party. There are ten of us that are all going on a cruise together in October. We’ve rented out the entire back of the ship. We have all these connecting rooms and we’ve got this huge balcony at wraps, like the entire back of the ship. I’m still learning this. This is only the second cruise I’ve ever been on, but our little area is exclusive to the people who are staying on that side of the boat. It’s like we have our own private section of the boat. It’s pretty cool. I was looking around the room thinking about this topic.

Most of those people we met or I met during my employment in Corporate America and now we’ve all become friends and family and we’ve gotten to know their friends. We were at their house and then the neighbors across the street had the pool open. There were like a gazillion kids in the pool. It was like three houses away from a block party. What do you do? What is your hedge? I know we talk about retirement a lot. This is solely devoted to what are you going to do with your money in retirement. There are some people I run into probably 50% that have their retirement stuff figured out. They’re trying to expose their personal net worth more to real estate. The other half of people I meet with are people that are woefully unprepared for retirement.

Let’s talk about you who are ready for retirement that wants to expose your personal net worth to real estate. It’s pretty easy to do. Buy some rental properties. We can show you how to do it. We can sell them to you. That’s what the Mr. Texas Real Estate team is designed for, to sell real estate, to sell investment-grade real estate to real estate investors. Let’s go beyond the money piece. What are you going to do when you’re no longer working? Everybody wants to do something. Maybe this is just me. Maybe that’s what the problem is. Maybe it’s me. I can’t play golf seven days a week. In fact, that sounds absolutely awful. I could play a day or two a week. I could do it Tuesday or Thursday. I might be able to do that. I’m not a big golf guy. I learned to play golf in my 30s. I’m still not very good at it. You have to spend an inordinate amount of time to get good at it. It is a very unnatural sport.

If you guys or gals have ever learned how to play golf before, that swing is completely unnatural for the body. Can I ride the bike every day? I can almost ride the bike at least a couple of days a week now. Could you ride the bike every day? I’ve got a couple of buddies that are big motorcycle guys. Can you do the motorcycle thing every day? Could you race cars every day? I might be able to race cars every day. At some point, this is especially prudent for men is that you’ve got to be doing some things of purpose. What real estate allows you to do and it’s very unique amongst other business ventures, is that it allows you the opportunity to build investment wealth and build a little business without having to work 90 hours a week doing it.

I’ve got a couple of buddies of mine that for whatever happens when you get into your 40s, 50s and you go through the midlife crisis, you’ve got to go buy a bar. I’ve got these couple of buddies of mine that have bought sports bars. I’m like, “I don’t think I want to do that.” The amount of time you have to put in that thing is open every day. As a real estate investor, I can go buy a small apartment complex and buy a couple of Airbnbs and decide, “I’m going to take a couple of weeks off. Maybe I’ll take two weeks off or a week off.” I don’t have to do real estate for a week or two. My business is still running. It’s not like the business folds overnight. If you’ve got a bar and you close that thing for two weeks, even if you “have people working for you,” you’ve still got to manage all those people.

TRE 47 | Real Estate Retirement Investment
Real Estate Retirement Investment: A growth-minded person will be driven crazy if they can’t do other things outside of a corporate environment.

 

One of those unique features of being a real estate investor is being able to be retired and still relevant from a business standpoint. You still feel like you’re getting a little work done. I don’t believe this to be true that everybody wants to be in this retired utopia where they sit around, play shuffleboard and golf. I don’t think most Americans want to do that. If that were true, we wouldn’t have these big buildings, beautiful iPhones, laptops and cars that drive themselves because all of the people who invented that stuff would’ve stopped years ago because they had plenty of money to be comfortable. What we’re designed to do is always be relevant in that business space.

100% In Control

With the theme, “You are 100% control of everything in your life,” that’s one of the things Gary Vaynerchuk says and Jim Rohn says. A lot of these motivational speakers will say the same thing. Let me explain what that means because when you first hear it, you’re like, “I’m not 100% control of everything that happens in my life.” That may be functionally true. I’m not in control of what the traffic is like at 59 at 5:00 in the afternoon on Monday. Your attitude towards that particular thing, you are in complete control over. What I found is that when folks want to make certain decisions, especially big decisions, that they’re willing to give away that power to something else because it’s too hard to make the decision. It’s a normal human reaction.

What I’ll tell you is if you are working in the mindset of, “I have 100% control over everything,” you begin to make different decisions. One of my favorite things about working in my own business is that I get to choose who I do business with. There are people in this town, in this country that you could not pay me to work with. I don’t care if they called up and said, “Jason, I’m going to give you $10 million to start a partnership with me to go do whatever it is.” There is no way because we have completely different values. That is not going to happen in a million years. I didn’t realize how powerful being able to pick who you work with is. I was at one of these real estate seminars where I’d gotten started in real estate and somebody had mentioned this to me. He said, “Jason, the best part of being in real estate for me is I get to pick who I work with.” I was like, “How does that work?”

I started thinking back to my corporate experience. Everybody has somebody at your office space that you don’t like. Dare I say that you absolutely hate. They’ve got a negative attitude. You swear they don’t get paid by results, they get paid by how long and how frequent their emails are. They get paid by how much they talk in a meeting that doesn’t matter or how long the agenda is. It’s one of those types of people who are good at administrating administrative. They are the administrative administrator administrating stuff to other administrators. They’re not even responsible for making the process. They’re responsible for ensuring the process is there or maybe to cram up and slow down the process. I’m not sure what these people are here for other than to make a mess of things. Here you are trying to get your monthly, quarterly or annual goals done so you can move on to the next thing.

When I had a sales role, these people were always at the corporate office. It was hilarious to go back to the corporate office. They’re literally, “I need this. We need that. We need this.” You’re sitting there as the salesperson.” I also did a project management implementation. As you’re standing there and you’re like, “How exactly does what you’re asking me to do, provide more value to the customer or get us a bigger check?” “The management team needs you to do X, Y and Z.” You’re sitting here like, “What does that have to do with anything?” I will never forget there was a meeting that I took one time. I was close with a handful of the COOs with some hospitals here in town. I get this call from one of the assistants of the executive management team. They called and said, “Jason, so-and-so wants to come by and they want to meet the CEO of this particular hospital. They’d like to go to this progress meeting that you do with them once a month.” I said, “That’s fine. How many are coming?” He said, “It’s six or seven people.” I said, “No, that’s not going to happen.”

He said, “What do you mean?” I said, “It’s a meeting with me and the COO. We sit in her office and drink coffee. We go over the data. This isn’t like a formal presentation. It’s not a big meeting.” “The management team wants to come down here.” I was like, “I’ll take one.” Sure enough, seven people showed up. The COO comes out of her office. They’re in a conference. She comes out of the office and grabs me. She goes, “What are all these people doing here?” I said, “Honestly, I don’t know. This is the people who get paid to administrate the administrators administrating.” She got a kick out of that. I was like, “I’ll get us through this meeting. Just follow my lead.” It’s those times in your life in Corporate America and it happens more often than not. You read an email. You get a phone call. You’re sitting there. You’re rubbing your head and you’re like, “What are we doing guys? What is the purpose of all this?” Maybe the purpose is to justify everybody’s existence.

If you are working in the mindset of 'I have 100% control over everything,' you begin to make different decisions. Click To Tweet

You start thinking like, “There are things that I enjoy about the work that I do, and then this concept enters of, “I’m 100% in charge of the things in my life.” You’re sitting here in this meeting with all these people that don’t have anything to do with any of the value that you’re bringing to your customer. You’re thinking in the back of your mind, “I’m 100% in charge of this.” One of the things I had said in my email, that message that I had sent out is that in order to earn freedom, it requires courage. Part of that courage is when you get pushback from your employer or pushback from a contractor, a partner or a whatever. You say, “No, six of you all are not coming to this meeting. No, you’re not going to put me on that cross-functional nonsense team for the new HRMS.”

If you want to do stuff like that where you want to go hang out with the boys, how do you do that with any other business? You can own hair salons. You can own restaurants. You can own online businesses. I had somebody tell me that, “Build a YouTube channel and you’ll make $30,000 a month passive.” I’m like, “I know guys that do well on YouTube and that is not how it works at all.” Being a YouTube star is a full-time job and then some. Trust me on that one. How do you disappear for a couple of weeks at a time or even two weeks at a time and not have that negatively impact your business? Right now, the only way I know how to do that is to do it through real estate.

Go buy a couple of small apartments or go pick you up in Airbnb. Hang around in town or out of town, have your team in place where those assets are stabilized and you can go jump on the plane and head to Europe for a couple of weeks. That’s why Rob and I are working so hard is we’re establishing all these little businesses. Your little Airbnb, your little single-family house, your small apartment or your apartment complex is that each one is a little business. They want to be valued and I know that’s one of the big challenges in the corporate world. It’s like, “Am I being valued in this organization? Here I am being told by some administrator administrating something, making sure my TPS reports are in on time.” “You’re going to have to come in this weekend and we don’t like the cover on your TPS report.”

Exposure To Corporate America

I will never forget my first exposure to Corporate America. I’d worked at a handful of companies. I’d always worked since I was like sixteen, but when I got into my first corporate job. You’re sitting there and you’re meeting with HR, “We need you to fill out this form and this one here, but don’t fill out this section.” I’m like, “It says employee must fill this out.” “I know we haven’t made new forms yet, but we don’t need you to fill that out. If you could fill out this section here and this one here. You’re going to have to press hard because it’s a carbon copy in triplicate.” I’m like, “You don’t have copy machines here.” “We do, but we haven’t updated the form in a couple of years. Susan down in accounting says, ‘Keep using these old forms until we put together the new cross-functional onboarding team.’ If you could press hard. Dear, you’ve got a black pen. We’re going to have to start over and you’re going to have to do that with a blue pen.” You’re sitting there and I’m like, “I’ve been here ten minutes and I don’t know if I can do this.”

I will never forget, I was at a conference. This is right after I had gotten a promotion. I was very young when I got promoted to this role. I went to a conference six months later for practitioners in this particular field. I’m sitting there at the happy hour sponsored by some big insurance company or broker or some big companies sponsoring it. One of these all night things. I’m sitting there at a table full of people and I’m chatting with a guy sitting next to me. He said, “Jason, how is it?” I was like, “It’s pretty good. I learn a lot of new stuff. It’s a brand new role for me. I’m a complete neophyte in this particular management role. I’m learning stuff. It’s a lot of fun.”

He looks at me, he goes, “This is what it’s like in the next 50 years.” I said, “John, what do you mean?” He goes, “This is it. The conference is like this and you learn a couple of things, but give it a couple of years, you get most of it figured out. You hang out there for 40, 50 years and you’re done.” I said, “What do you mean I’m done?” He said, “Here’s the problem. At the point, you are in your career, there’s not a whole lot of more places you can go unless you switch fields.” That’s when it hit me. I was like, “There’s always a glass ceiling when you’re working for someone else.”

TRE 47 | Real Estate Retirement Investment
Real Estate Retirement Investment: One unique feature of being a real estate investor is being able to be retired and still remain relevant from a business standpoint.

 

If you believe that you are 100% in charge of your life and your goals are goals that are bigger than the organization in which you work, now you’ve got a problem, you’ve got a conflict. You don’t have to solve that conflict at this time. I was 28 at the time. I did not start our first company until I was 35. I knew several years before I was like, “He’s got a point.” I shouldn’t even say there’s a glass ceiling because that’s not even true because glass ceilings are meant to be broken. There is a ceiling. You can’t get any higher than this floor. That’s the reality of working for others. It’s not a bad thing if you like working on it. Most people like to work in an organization. I’m not going to be one of these guys that get on the radio show and says, “If you’re still a wage slave, if you got a W-2 job.” That’s ridiculous. We have sixteen people that work for us. We can’t do the things we do if we don’t have those people working for us.

Most people want to work in a communal group and there’s nothing wrong with that. However, there will be a point at which you reach that if you can’t do other things outside of that corporate environment, it’s going to drive you crazy if you are a growth-minded person. I’ll let you in and a little secret. I believe Rob has talked about this on the radio show before. When we interview staff, the first thing we tell them is if you need this job two years from now, we’re going to fire you. “What do you mean?” If you’re around us and you’re at all the events we do. Our staff has access to all of our material. They have access to Rob and me 24/7. If you are not building wealth over the next few years in such a manner that you no longer need this job that is what we would consider a successful employment relationship with you. We want you working here, not for the money. We want you working here because you enjoy it.

Not only so much that you enjoy it in so much is that we are helping you build your wealth outside of our office. You’re buying houses. You’re buying Airbnbs. You’re buying little multifamily houses, multifamily units and you’re building your wealth. That’s the little secret there in our office. We’ve got to get the day job stuff done. We’ve got to make sure people sign up for our mastermind. We’ve got to make sure we schedule the webinars. Those sorts of things have got to get scheduled and they’ve got to get done. We’ve got to build the PowerPoints. We’ve got to make sure Jason and Rob make it to the studio on time. We’ve got to get our videos done. It’s all that stuff. I’m seeing the Mr. Texas Real Estate team bring deals in. I need to buy one or two of those a year. If I can, four or five, maybe ten. You need to buy a couple of these things a year so that in two or three years, we can continue working together or not.

That’s what we want from our employees and Rob says it like that. The reason he says it that way is that he wants to shock them. This is not a place where we expect you to show up and do your job. This is a place in which we expect you to grow your personal wealth outside of this company. You’ve got access to everything we have access to. There are no like secrets in our staff, no secret emails and no secret meetings. They know who all our private lenders are. They know how we buy deals. They got the keys to castle like any of our mastermind people do. We fully expect them to grow outside because here’s the reality, there’s a ceiling inside our organization. It’s the same reason why regardless of how many companies we start or how many companies I sell, I will always be a real estate investor. As those companies grow and build and maybe we’ll sell one of these things and make a few billion dollars.

Join The Journey

Here’s what I do know. I can keep buying these little single-family houses, these small apartments and they’ll make me wealthy regardless of how all these other companies are doing. In any case, if you would like to join the journey with us, we run a mastermind group. We also have a real estate club. If you are interested in any of that stuff, I’ll tell you right now, our mastermind group, it’s a small group, peer-to-peer sharing. You work with Rob and I buying Airbnb and small apartment complex. It’s $7,500 a year. We also have a club level membership for those that are new to real estate. Trying to figure it out, maybe you don’t have the capital to take down their first deal, trying to figure their credit out. That’s $1,000 a year. If you guys are interested in any of that stuff, shoot Rob a text message at (281) 401-9008. Rob may call you, he may send you a text message back or you’ll hear from Veronica and our office. If you want to chat about it, we can schedule a time to talk on the phone, fifteen to twenty minutes to see where you’re at and see if you’re a good fit.

Real estate allows you to build investment wealth without having to work 90 hours a week. Click To Tweet

One of the things that Rob and I have said is, “Can you do real estate with no credit, no money, no job?” Yeah, but that’s not what we espouse here on the program. We’re looking for at least folks in our mastermind, you make a household income $100,000, $150,000 a year. You’ve got somewhere between $40,000 and $50,000. If you’re able to invest in real estate and you’ve got a pretty decent credit score, you’ve got a good FICO. Those are the folks that are going to be the most successful in real estate. I can tell you when I started in real estate, I would certainly fit into that category and I’ve got a little money. I’ve got a little credit, got a decent job. You could start buying these things. You can get into our peer to peer group where we’re sharing best practices from small apartments and Airbnb and those other sorts of things.

Here’s what I’ll tell you makes us different than everyone else out there is that Rob and I, who are the principals of these other five companies. We’re the ones that are doing it every day. I’m going down to Dickinson. I’m going down to Surfside with Rob and we’re down here in the trenches with you every single day. We’re looking for deals like you all are and we’re passing those deals along to you because we can only buy so many of them. I can tell you that there are more deals than there are investors out there if you know what you’re doing. If you want to come along the journey with us, shoot us a text message, (281) 401-9008. We’ll see you next time. Thanks for reading.

 

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