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Robert Orfino - One of the Best Real Estate Investors on the Planet
07/30/2019
Robert Orfino - One of the Best Real Estate Investors on the Planet
Robert Orfino, real estate investor and expert, joins Casey Eberhart on the "Expand the Business" podcast for an incredible interview about the present state of real estate, real estate investing, and even house flipping. Robert is a master at leveraging traditional media and social media to expand his brand and marketing message online. Born and raised in New Jersey, Robert spent countless summers on the Jersey Shore. When not vacationing, Robert worked with his father doing construction. Robert later attended Kean and Rutgers University, and set out to find a โgood job.โ Aside from his knack for creating things, he has a life-long relationship with education and is constantly seeking self-improvement. He also readily admits he is a die-hard NY Giants fan and a long-suffering Mets fan. At the age of 42, Robert had been working for someone elseโs fortune for 20 years and began to understand the importance of wealth and how to create it. In 2007, Robert caught the entrepreneurial bug and left his job to start his own green consulting firm. Within the first year of business, the firm was directly impacted by the financial crisis in 2008. However, Robert persevered through the major financial setbacks that followed and began working as a So-Cal contractor rehabbing Freddie and Fannie Homes. In 2012, Robert took an opportunity to work on flipping homes for private investors. During this time, he flipped almost 200 different homes. Robert continued to work in the So-Cal Real Estate Market until 2014 when it made a major comeback and deals became scarce. By 2015, Robert sought out a market gap for flipping houses in New Jersey, the number one foreclosure state in the country at the time, and proactively assembled a team to build business back up again. Although the market had been tumultuous for quite some time, Robert saw an opportunity to raise capital for the New Jersey and New York Real Estate Markets and founded a Distressed Real Estate Investor Fund. Here is the transcript of the podcast interview between Casey Eberhart and Robert Orfino: Casey Eberhart: () And welcome everybody to today's episode of expand the business. My name is Casey Eberhart. I am your show host for this hour of amazing insight in helping you, the business owner expand the business. So we are super excited to bring to you guys, everything that we can come up with to help you expand your business. Whatever business you're in, whether you're in traditional business, brick and mortar, business, network marketing, investing, whatever businesses you this show is designed for you. So as an upfront, if you want to download a quick audio, on getting more referrals, just head over to www.ExpandTheBusiness.com. Oh, we've got some goodies over there, some surprises for you over there. And I'm super happy to have you do that again, go over to expand the business.com so super excited today because we have an amazing interview with one of my favorite people on the planet. Casey Eberhart: () Robert Orofino is one of these guys that you just can't help but to learn stuff from because number one, he's super open and willing to share his ups, his downs, his wins, his breakdowns. In order to help you and I expand our business and really kind of create the life that we all dream of. He is a real estate investor. I've happened to be friends with and have known Robert for several years. I know that Adam, and ask him to go a little bit in depth in this, but you know, one of the things that he and his partners have been able to do in the real estate game as they've made, as far as I know, at least three moves. They've moved from New Jersey to Los Angeles, Los Angeles to Houston. And then from Houston they've really expanded out. They have a radio show that's on drive time in Houston, Texas. Casey Eberhart: () Every single day they've got podcasts, they have webinars, they have meetup groups, they hold live events, they hold live meetings. They've created a real estate investing fund for investors. Maybe you have a little extra money that you're scared of a scaredy cat. I've been in the real estate market. You don't want to, you don't want to get too much exposure. You can talk to Robert and they've created a fun. So people that are scared still have an opportunity. They have their fingers in every piece of the pie in the real estate market that you've probably or possibly could come up with. And if they don't, they're going to go out and really create the network and the relationships to be able to bring that into the fold. So I thought, well we would do today is really have kind of a deep dive in sort of the structure, the blueprint, the layout, the architecture of what Robert has been able to do in the real estate game, especially in the market he happens to live in at the moment. And I say at the moment, which is Houston, Texas. So He's a partner in Mr Texas real estate, which we'll talk about. He and his partner in a minute. And he also runs and owns Dana point marketing. So with that being said, Mr Orofino, welcome to the show was a Robert Orfino: () pretty amazing introduction. I'd like to meet that guy. Right? So that was, thank you very much for all those kind words. And it is certainly, um, I always point out that Steve jobs speech we talks about, you really can't connect the dots looking forward, turn around and look back. You can see them. Well, you're one of the dots. Casey Eberhart: () Well I appreciate that. I appreciate that. But those dots are created by all of us being just connecting, right? So thank you for saying that. You're also one of the dots all and my network, but also many, many others. So Robert, take me back, uh, in the wayback machine to when you were in New Jersey and when I first met you, you were a contract investor slash flipper in, uh, and for those of you that don't know the term flipper, it's somebody that buys a piece of real estate, put some equity into it in terms of capital as well as um, um, not only capital but sweat equity contract or build it out, make it pretty, and then turn it back on the market and sell it off from there. Kind of walk me through how you got started as an entrepreneur back in the flipping days. Robert Orfino: () Sure. So back in New Jersey, I was a, I was a consultant. I was a green consultant, energy efficiency, that type of renewable energy. Um, you know, I was uh, back in for anyone understands it, uh, the uh, green building. But that was, that was I did right. So the US GBC am original member of that. Um, and I did a lot of consulting out there and I said, okay, I want to become an entrepreneur and the green industry's taking off in southern California, so I need to get the southern California. So I left my job there and I started my own consulting business and within the first six months I booked over $300,000 worth of consulting. It was great. And then September, 2008 hit and the whole world got turned upside down financial world. And I was out there alone with not a lot of, of safety net underneath me, just a couple of retirement accounts. Robert Orfino: () And I, uh, I found myself in a very large hole very, very quickly. By 2009, we had some bad deals and we had some bad partners and um, we had a lot of the projects just stopped. There was a bond on those projects, which means you're going to eventually get paid, but the eventually it could be 2012, 13, 14. Right? So here I am, entrepreneur trying to figure this stuff out, working both coasts and it, it wasn't working and we're going down a slope in a whole very, very fast. I remember 2009, everyone's still sort of in denial, right? And in 2010, now, everyone's like freaking out. In 2011 was the bottom of the market. So in 2011, I had no more consulting gig. So maybe one or two right here. But I had a buddy who was doing construction for Fannie Mae at the time. Robert Orfino: () There was tons of foreclosures. They're fixing them up. He says, I have too much work. Can you help me run it? So I came out to California full time, took over the San Fernando Valley, and I started with doing deals, doing rehabs for Fannie Mae, Freddie Mac, um, all those FHA stuff. Um, but by that time I was already 450, $2,000 in personal debt in the, I owed for $52,000. And next to every single one of those, those dollars was my signature. So you can imagine how panicked we were and how crazy everything was. And we got into real estate and started climbing out of the hole. So 2011 wasn't a bad year for us. But then 2012, Fannie Mae says, we're not rehabbing homes anymore. Now back out of business. But I have a construction business. I've gotten loans on that business. I've got employees. And um, I'll just tell you the, the low point for us is we're, I was down to $6,000 in my bank account and I have a $12,000 monthly nut, right? Robert Orfino: () And I don't have any jobs on the horizon. And I think to myself, I'm not the smartest guy. And from this moment on, I'm just going to do what smart people do. So I did a little mantra about wealth and all that stuff coming to me and I won't bore you with that. Um, but right after I did the mantra and I was driving down the four oh five, you know what I'm talking about, I got to go to, I got to get to Ventura Boulevard. That's where my po boxes, I go to the Po box now 10 minutes after the mantra about all good things of being positive and wealth coming to me. I opened up the Po box and there's a check for $6,000 exactly what I needed to get through the month of February. And from that point on, I do not want to figure it out or double think it or overthink it. Robert Orfino: () I just do the mantra. Right? And that turned me on and I got through the month of February, I got a kitchen job, I got a bathroom job. And then later on that year I got picked to work for the best way to call as the clearing house where the hedge funds and for those who don't know the hedge funds, Blackstone is a big one, call me homes. There was another one who worked for, they put billions of dollars of capital on the street buy houses and so we literally could have as much construction work as we can possibly handle. We are doing now 11 jobs, nine 11 jobs a month and we're running through that in 2012 was great. Um, 2013 slowed down, but we had made a name for ourselves. So we are the top two contractors in that clearing house and we kept working all the way through 2013, 2014 I started doing some more green work, slowly climbed out of that hole, but I had always now around real estate business, I'm trying to network with these folks and try to figure out how to get more work. Robert Orfino: () And I started reversing engineering how this whole business works. And in 2015 I said, hey, I'm going to go do this myself, except I go back to New Jersey to do it. And I go and do it in New Jersey for two years. We did fairly well. We flipped a bunch of houses out there. Um, I was all about just creating cash to pay back my debt. They create a little nest egg so that we felt secure. Right? So just like everyone else in 2013, 2014, 2015, everyone's thinking security, right? They want to have security. We're no different. Um, then I started networking and meeting a lot of people we carry on. And then in 2017 I met some friends from Houston. They introduced me to the marketplace. Um, we had a hurricane that came and I was working the opposite and the, all of the leftover deals in New Jersey from superstorm sandy. Robert Orfino: () So I understood how flooded houses and when a wind damage houses work. Uh, when the hurricane came here, I already had a base here I'd already done and started doing some education stuff. So we decided we were going to move to Houston and I moved there about 14 months ago. I've, I've been here in Houston for 14 months. Since then, we're able to acquire about $3 million worth of properties. I've doubled my net worth. I'm using all the things that I learned from quite frankly, failure on my, on my last 10 years of being an entrepreneur. And so we, we definitely believe there's no such thing as failure. It's only learning. Sometimes the lessons are very expensive. Sometimes you can shrug them off, right? But there's only learning in coming out of failure. And, uh, with that mindset, I was able to partner up with Jason Bible out here. Robert Orfino: () He had been very successful. Now we started this new venture and like you said, we have a fund. We have our, our own rehab crews. We have a real estate office, a team that we bought. We work with Keller Williams platinum. So we're able to work on all that stuff, uh, in this marketplace based on all the things I learned. And when I say learn, I'm mostly saying I failed in the past. And I can remember sitting in the lobby in, uh, Gora hills. There's a company out there that nobody knows about. They don't have a website, they don't advertise, but they do $1 billion in real estate transactions every year. They touch every single piece of it. And I sat there and I said, if I ever have the opportunity, meaning of the market opportunity, this is what I'll build. And now I'm here in Houston with the opportunity and we're building a very massive real estate machine. Yeah, it is unbelievable to watch. So I have several that I kind Casey Eberhart: () of want to push in and, and drill a little bit in on. So when you first moved from New Jersey out to Los Angeles, you said that in your first six months or first nine months, I think that you had $300,000 worth of consulting gigs on the books. How, how did that come about? How did, how did moving from New Jersey to Los Angeles, just because we, you know, I live in Los Angeles, we be, we are, uh, we are very, and I'm doing air quotes. For those of you that are listening green out here in California, what, what allowed you to get in the door? What allowed you to book that kind of book of business? Because I think a lot of people are, you know, get so stuck on, oh it, I'm afraid, I'm scared. I don't know where to go. I don't know what to do. I'm terrified of failing. So on and so forth. What allowed you to like break into that $300,000 market? Robert Orfino: () I want to say within the first 90 days of me having my own business, I picked up two mentors, both sales and marketing and Robert Orfino: () they said, Hey, forget this, forget this 30 page proposal and all that. There's all the, all there, all the folks that are collecting those proposals are making do is free work. Yeah. And they said, we've got to figure out a way to get to the decision maker. Once you get to the decision maker, have an honest conversation and they'll say yes or no. And that's, that's where I learned from, from two folks. And so we were able to get to some very big decision makers in the automotive world. Dealerships were one of our bigger clients. We are able to meet with again, really, really big companies like sonic automotive, Penske automotive, auto nation. We want to treacly the manufacturers like Mercedes Benz. Um Oh we worked directly for a Volvo and a lot of those, a lot of the green companies that wanted that for that we were able to go right to the manufacturer and talk to them Hyundai and get real honest conversations. What do you, and then ask them, what are you looking for? How can I help? So going out as an entrepreneur, I learned within the first 90 days to forget what I, what I want and ask how I can help and just give me that. Just how can I help? What are you looking for? Do you want a green, a bigger green footprint rate, I can help you with that. And that's how we land that we forgot the forget the whole sales process, finding the decision maker and help them. Casey Eberhart: () So it was really about building, I mean essentially, you know, uh, I think a lot of people, um, skip the part of building relationships and building out a network of people that you yeah. You know, sir, um, service that network for lack of a, for lack of a better word. You also said something that I think is really interesting and I think a lot of people kind of Miss Nuance, um, because they are being trained and taught by people that went about it the hard way. So you could write a bunch of proposals and you know, you are absolutely right. The people that are receiving those proposals. If you don't know a lot of proposal type, um, work that's given out, the reason those companies send out requests for proposals or RFPs is so that they can get a bunch of ideas from a bunch of different consultants all for free. Yeah. They may ultimately hire one or they may not hire them, but at the end of the day, they've essentially allowed the bigger game players too, give them free advice and may not ever even call them. And what I loved was that you bypassed all of that and really went in and tried to have conversations with people that were meaningful and figure out how to help them when I'm assuming not every single person you are able to help win. But in that event you then went off and figured out how to help them when once they were done. Speaker 3: () Yeah, no, we got, we got, um, a very, um, polite thank you's, but not very many followup calls. Yeah. Casey Eberhart: () Yeah. And so, so Robert, as you were, as you were kind of building out that network with the automotive dealers and, and putting those folks, how important in your success today, if we go all the way back in the wayback machine, how important was it or is it, do you think for entrepreneurs, even if they're just a marketing, not just say, but a marketing firm or a sales firm, or they've got a specific product or maybe somebody just a network marketer or whatever, how valuable is the skillset of building an actual network of people? Speaker 3: () It, it's everything. Well, you know, we all, we hear all the cliches about the network, right? There's a ton of business cliches and we love to post it on Instagram and Facebook, but you have to actually do it right? And you know, your network is your net worth. That is absolutely true. Um, and we just kept building out and out and out. We, we, we would, we would take meetings from seven o'clock in the morning to 11 o'clock at night and we'd be in crazy places. I'd be at five star hotels smoking a cigar on the beach front deck at 10 o'clock at night, and the next morning I'm at someone's, uh, auto body shop, right? And, but it's just constantly taking these meetings and networking and what can I do? Right? Um, what can I bring? How can I bring value to the folks in my network? Speaker 3: () How do I connect people in my network? Right? How do I make them, I mean, I've gotten, I've sat down in front of the general manager who complains that he doesn't have a good sales manager. I go to the, three days later, I'm sitting in front of a sales managers saying, I gotta get out of this, this place. I'm like, Hey, do you know this new tire? And over here, why don't you give them a call? Low and behold, I got a a sales guy, right? Well, let me just connect. And so when you start playing that person, that connector in the middle, it becomes extremely valuable. But here's the key, Casey and we, we just went over to this with our real estate team this week. We said, someone will come up to you and say, uh, Hey, do you have an inspector? Speaker 3: () And what a lot of these big real estate firms do like Keller-Williams and remax on, they say, here's the sheet, here's all our our vendors and just go ahead and call them. And I'm like, that is such a great way, because it took someone time to put all that together to build that relationship with those vendors. And you're just about to just share it and throw it out there. Like it's meaningless, like it's worth nothing. And so, you know, I have a personal rule and I've extended that now to the real estate teams really simply. I just had a guy sitting right...
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