Epic Real Estate Investing - Rising Up and Getting Over the Hump with Ariel and Lee | Episode 109

Episode Date: June 9, 2014

Getting out of the "class room" and into the game can be the biggest challenge many experience in the world of real estate, but once that gap is bridged... the sky is the limit. Listen to one couple's 14 year journey to getting their first deal done. ------------------------- Download Matt's free real estate investing course "How to Do Deals | No Money Required" at FreeRealEstateInvestingCourse.com or text FreeCourse to 55678 "Click" what interests you most:  Education Properties Income    Coaching Learn more about your ad choices. Visit megaphone.fm/adchoices

podcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Mm, yeah. Hello, hello, and welcome to another episode of Epic Real Estate Investing. If this is your first time listening to the show, welcome. If this is not your first time, welcome back. I'm super glad that you're here. This is the place where I teach people how to escape the rat race by investing in real estate. You see, I changed one thing just one time and I escaped that rat race forever.

And what that one thing was, it was my focus. I changed my focus from making piles of cash to making streams of cash. And that right there, that changed my life forever. So no longer do I work for money, my money now works for me in multiple ways. And if I had to start over, if I had to start from scratch, if I were to do this all over again, I'd do it exactly the same way. And I do it exactly the same way whether I had money and credit to start. with or not. You see, while I was going through this whole process, while I was finding my way,

while I was going through this journey, I stumbled upon 12 different strategies of investing in real estate with little to no money. And in hindsight, being forced to invest that way with no money and no credit, I believe that has made me a much better investor. And I want to make you a better investor as well. So what I did is I put the first two strategies of those 12 into a free course. And I believe those two strategies are the easiest and the fastest strategies to a paycheck in real estate. And I've put them into this free course just for you. And you can access that free course at free real estate investing course. And if you're listening via your smartphone right now and you can't wait to get back to your

computer, you can access that free course by texting free course to 55678. Free course, all one word, no spaces to 55678. And you'll get the course right there on your phone. All righty. Cool. So got a great show for you today. just coming off the heels of our Grub and Grow rich event that we had here in Glendale, California. And it was quite amazing.

We had 30 people sign up and 32 showed up. So it was 102%, I guess, somewhere in that way of a show up ratio. And if you've ever shown a live event before, and if you've ever done that, you know that you can expect about a 50% show up ratio. And that's been my experience, at least for the last decade. of doing live events, and I hadn't done one in quite a while. And boy, we sold out the place and was standing room only and had a really awesome time. And I got to meet a lot of people. I got to meet podcast listeners.

I got to meet Epic Pro Academy members. I got to meet face-to-face some of our cash flow savvy members or our cash flow savvy clients. And it was just a whole lot of fun. So the next one, if you missed it, we missed you. But you've got a second chance or another chance come July 31st. We'll be holding another grub and grow rich event in St. Louis, Missouri. And that will be on July 31st. And if you want to check that out, if you want to join us there in Middle America,

go to grub and grow rich.com. And then you can sign up, reserve your seat. And I would recommend if that's anywhere on your radar for doing that, you might want to do that right away because we did sell out. And there will be 30 seats for this one as well. Okay, doke. So last night, as I was mentioning, I got to meet a lot of cool people,

people that knew me, but it was the first time I got to really get to know them. And two people stood out, particularly. My, Fernando, the director of operations over at Cashflow Savvy, was connected with them. And he's been working with them for a while. And Mercedes, she said, you've got to have them on the show so they can tell their story. So I got to meet them a little bit last night. And I was like, hold up, hold up. Don't tell me too much.

Let's just wait until we hit the record button. And then we'll have that conversation, get to know each other that way. So I've asked them to join me in the studio today, and they are sitting here waiting. And it is Lee and Ariel Oklorino. So welcome to Epic Real Estate Investing. Thank you, Matt. Hello. Thank you.

Excited to be here. Good. I can see it all over your face. That's cool. So let's get started with just a little bit about your background. Okay. So what were you doing before you even got involved or interested in real estate? Well, I've been schooled by my mom, and it's been a kind of a drilled-in thing to our culture that you get an education, you get a good job, you work yourself up, and then retire.

Right. And what is your culture? Filipino. Filipino. So I'm right along the track of that. But it did not seem quite. quite right for me. I graduated as a business finance and management. And one thing that kind of told me that it wasn't quite right for me was back in 1994. I took a budget analyst job in the

government. Just like clockwork, I fell asleep around one or two in the afternoon. It was just really boring. I was good with numbers, but it was just boring. And so I found myself training myself to do some computer work. And that's how I kind of started my career as a satin manager now for IMAX. Okay. And ever since then, I've been working my way up and saving little here and there. And now I've got the itch. I'm, you know, mid-40s and really had nothing to show for.

I mean, I do have a 401. I do have a small savings. I've got a great family. But as far as providing the kind of lifestyle that I want to provide them, it's not there. So I guess I would call it a niche. So I started researching. Was there a moment recently or maybe a few years ago where that was like, you know what, something's got to change? I'm going down this road, but, you know, something's got to shift.

Do you remember a moment when that happened or was it just gradual? It was gradual. Was it? But when it, yeah, I would just say it's gradual. I can't say enough or where there was just a breaking point of I woke up and I needed to do something. But it was just an underlying back of my mind saying that I got to make more money. Or at least provide the kind of lifestyle that my wife and my kids are that I want them to get used to. And by working with the W-2, I don't think it's going to reach that goal.

Right. Got it. So, Lee, please share your story. I was actually an accounting major. But, you know, there's always that one teacher that kind of ruins it for you. The one teacher? That one teacher. And somehow I started working as an AR for a company, but they decided to train me for

something else, you know, mortgage side. They started me as loan processing. They saw more potential in me. because I love to learn. I was always kind of like the person that did everything. So they trained me to be doc, and then ultimately I became their funder. So it's my passion. You know, it's so much fun to solve a problem.

And, you know, so when my husband told me, he wanted to invest, and I'm like, yeah, it sounds like a great idea. Let's do it. Well, that's good. Problem solving is a good skill, and if you have a passion for solving problems, you've come to the right place, that's for sure, because that's how we get paid as real estate investment. is by solving problems.

So awesome. Ero, you had the initial presentation or proposal to lead for, let's look into real estate. So how did real estate come about? What inspired you there? Well, I dabbled in stocks. I did fairly well back in 2001, 2002. I had a chance to invest some money to Google. so that

and so I had enough money to do something with it but knowing stocks in order to really make money you can't just buy and hold you really got to be a day trader from what I've learned at least

but it was not that type of kind of interaction that I need or wanted because at the same time I do like my job I like computers I like solving problems as well. And I didn't want to let that go.

So I needed to find some kind of a balance. But I kept researching, researching, researching, stocks, and everything, every time I would come up, it would be real estate. The reason I did not pull the trigger back in early 2000 was because I was plainly scared. Knowledge was my biggest thing. I'm an engineer by trade. so I was scared. Right. I can't put it in one.

I get it. Something new, right? So you made that decision, though, that it was going to be real estate almost 15 years ago now, right? Yeah. Okay, so it's been a long journey, right? So tell me, like, once you started, or you started to make strides to increase your education

and your knowledge around real estate, what did that look like? What were your first steps that you were taking? I did a lot of Internet. Reading. Okay. It's just a matter of picking up little things here and there. At one point, flipping houses was a very attractive and sexy kind of an idea.

But as I learned that flipping flipping was a little bit harder than I thought. You know, it's, first, you really got to have a good knowledge of your area. You got to pick your market. And California, it's not that easy, in my opinion. So it was one of those, read something, then let it go a little bit, read something. and it'll go. I did not put my 100% of my effort to it. It's just, oh, I got some time over my blunt break.

Let me read something. Sure. So that's why it was such a long, long, long, long, long train. Okay. So what was, what part of it, Lee, did you think, like where there was a shift where you went from dabbling to actually, okay, let's get into action. You started taking a little bit more aggressive moves. I saw an infomercial.

Infomercial, yes. That's where we all got our start, right? Yes. You know, it's very colorful when they tell you. You know, come to a free real estate class. Right. She went. Was it free?

No. From the moment you step in there, they're basically selling you anything that they can. And if they can sell you the pen that they have there, they'll sell it to you. Right. You know, but it kind of... So what did you buy? We did. We bought their class. But you know what? As much as the money that we spent it on that, I still think that we did at least get some thing out of it, you know, because we didn't know. We're new investors. But we did. We picked up a lot from it. And so in the fact when he told me, you know, honey, look into epic real estate, you know, let's buy a property. I mean, I jumped on it. I wasn't, there was no fear in me, you know. I just went online, Googled you. try to find out about you, your company, what you guys did.

So I kind of did my own due diligence to make sure that we were investing our money, hard-earned money to a good company. And we did. There was no fear. I just jumped on it. Well, that's good. Well, cool. So that was a big fast forward.

And at what point where did you feel, though, you really, because I know you guys took some, you guys have some experience before you ever met me. you know, at what point were you really trying to bridge that gap between the classroom and reality? Like what other types of things have you tried before we met? Podcasts.

Well, that's still educating, but were you not doing anything or are you just in a massive learning mode? Well, we had our own house. We had a house for 15 years. That was our first house when we first got married. So, you know, I think, and bless my background.

in real estate, you know, I think that. Is the lending processor, right? Yes. Yes. Yeah. Got it. We tried doubling and selling U.S. products to the Philippine market. That didn't quite work out.

But it's not only whether it's in a scale of mass production of mass sales. It's just we wanted to try it out, see if it works. not. Right. And obviously it didn't work. We're a very, very, very conservative couple. It's not not in our blood or instincts to take a big leap. Right.

Now, coming back to the seminar that they'll be invested in, I must admit that although that I'm hesitant to, to, um, to mention this, but it did give me the extra kind of a push. Sure. To really say, all right, I got a few prospects to look at, and I'm going to pick one of them. And you were my top choice. So out of the many, the biggest investment that we did, it helped us pull that trigger to give us that kind of extra strength or courage to say it's not that bad it's not that

scary you have friends you have colleagues like you to help us along now mercedes and fernando they were very very friendly they were very professional and outright just honest in our opinions they they did not hold anything back. If we asked for the material cost and the schedules, next day they send it right away. It's not like the other people that I've kind of talked to. It's like, well, the only thing that you probably, they would sell this, you get a turkey property.

You buy it for $90,000, and you get on cash flow of $800 to $1,000. Other than that, anything behind the background they will handle and they kind of are reluctant to to kind of release those kind of information. Now, for me, I don't really care. I mean, I do, but it's not that important. But my thing is that if we're going to be business partners or something like that, I want some transparency.

Right. You know, you want to know what's going on? Yeah, exactly. I'm not going to be looking to micromanage because you do the best thing. and I do what I do best is to provide the money and you do the rehab, you do the finding the properties and so forth, so forth. And so they might have thought that I was looking to micromanage,

but I wasn't. I just wanted to see where the line is of transparency. And obviously they lost and you won. And I'd like to add with that. I mean, really, I guess I had no fear because from the beginning, Fernando, and Mercedes, I think they just hold your head, basically, you know, like step by step. You know, any question it might be, for me, it was kind of maybe dumb, but to them is like,

ask, you know, and they were so great. Right. I'm fortunate to have them on my team for sure. For sure. So what I want to try and really create some, pull something out of this for people that might be listening that are in your situation because the reason I was really interested in your story is that, you know, this has been a 14, 15 year journey before you actually pulled the trigger. So knowing what you know now, in hindsight, you know, what, I mean, what big ahas have you had?

What would you have done differently? You know, how could you, at what point do you think you would have felt comfortable to, you know, take the leap that you've made now, you know, previously? Can you think of something? I mean, for me. What would you do differently? That's what I'm really trying to say. Knowing what you know now, what would you done differently that maybe not have taken 14 years? to get this far?

For me, probably, not selling our house. I mean, that's, you know, that's my biggest thing. Like, I always hear, you never let go of a house that you already have. You know, I always hear that, so. And you sold your house? We sold our house.

Oh, okay. I didn't. Yeah. All right. For me, talk to people. Talk to people? Talk to people. They're not that scary.

You know, it's a little bit different from, from your side and my side, you know, I put you, three, you know, more of a higher pedestal than I am. But you are easily accessible as you proved a couple of weeks ago. Just like Mercedes and Fernando, we called them on a weekend. I was surprised that Fernando called us on a weekend.

He's sick, isn't he? Yeah. I wouldn't ever called my clients on a weekend. Right, right. But that tells me that those are the kind of passion that I want to be. want to be surrounded with. It bleeds through. I want to absorb it.

And I want to commit to that kind of a way of business. Right. Cool. Very cool. So you guys have closed escrow in your house. Yes. And how long ago did that happen? Last year.

Last year. Yes. July of 2013. No, you're talking about the investment property. Oh, yes. March of this year. March 28. Yes, it closed.

Got it. So March, so we're, it's been a couple months. Yes. So how has your experience been so far? It's been great. Okay. I can't say anything. I mean, if they treated you poorly, you can tell me.

It's okay. It's been truly amazing. I can't say anything bad about that. It's been a great experience, you know, from, again, from the beginning till now, even though it's been closed, you know, but they're still there. And the question I might have, Mercedes and Fernando are still there. Right. Have you received your first rent check yet?

Yes, we have. It's actually our second one. Second one. Very good. Yes. So how does that feel? Great. You want to do more.

You know, just like wanting, the wanting of having more properties. Streams of cash. Right. Wanting to have that freedom. Right. Ariel, how's that feel now? Relief. It's, as you know, that I'm a number of scheme.

I want to see some kind of proof. It was really hard that I took kind of two steps back and let my wife and Mercedes and Fernando really handled most of this. And I wanted to be consciously aware of it, but I want to be away from it because I wanted to see how this will roll out. Obviously, you know, it's working out really well because we're doing this podcast. Right, right. it's a kind of a proof that, you know, I'm willing to disclose whatever needs to be closed to get validity to this business and to us. Awesome.

I appreciate it. I really appreciate you guys for being here. Thank you for sharing your story and being so candid. And, you know, just being gracious and sharing with your history because I know, you know, that's a long time. And I'm sure it wasn't all easy. I'm sure there's some painful moments in there. I mean, I could just, I've been through it myself, so I get it.

So thank you for that. So now that you've got the one property and Arrow, you've got this relief, right? And you've got your two, your two, your two rental checks come through. What do you see for your future now? Like, are we going to wait 14 years to do it again? No, no. What's happening on the plans right now? Well, my goal was, for this year, was to buy at least one or two properties.

Okay. Now, as I said, you and I talked a couple of weeks ago, I wanted to scale this to a five-year plan. Now, we're currently working for, with private investors and we're working on it. And I'm hoping that we could actually buy at least two this year. And I don't want to be overwhelmed by acquiring more. But if the opportunity to present itself, why not? But the goal is really when I decided to do this, I wanted to do one. or two deals this year, but now the kind of the mystique or the cloud has lifted, now I'm getting

a little bit more anxious of getting two to three deals this year. Right, right. That's cool. Yes. You know, whether you go out and you do all the heavy lifting yourself or if you hire someone else to do it, leverage our team like you did, really after you get that first one done, you're just kind of like, well, that wasn't such a big deal, wasn't it? And that's so hard to tell people. And that's one of the biggest challenges or one of the questions I'm always looking to answer for people that join the Epic Pro Academy, for people that come to cash flow savvy, is to how can I convey to them that once you cross that line, you're going to look back like, well, why didn't I do it so much earlier? Right. So you now knowing that maybe you have a better answer for me

then it's been a while since I bought my first property. So maybe you guys have an answer for someone that hasn't done their first transaction yet. And whether they're going to do that with a turnkey operation like ours or if they're actually going to go out and do it themselves, what would you, what advice would you give them? Talk to us. Okay. Talk to us and ask the people around.

Ask you. Ask Mercedes. Ask Fernando. They're investors themselves. they're just people. I mean, I must admit, now I'm saying this, but before we did this deal, I would hear the same amount of investors like mine investors

saying talk to people, find out what they, how they feel, what are their experiences? And it didn't come through. It didn't come through until learning more about, you and what you're about and just and what really broke the cameras back I guess to come to the question that you were asking before is that the reason we completely committed was because of Mercedes and Fernando. They were just wide open.

Right. Wide open and that's all I could ask for. Awesome. Awesome. It's really about a team, right? Yes, definitely. And you're able to tap into our team and leverage that team and you got it done. Yes.

And that's, I keep on sharing with people that this is a. people business and no investor makes it on their own. But for every successful investor that you see, there is a team behind them that made them the successful investor that they are. So, Lee, any last parting words? I know you were super excited to be here today. I was right. You've done an absolutely fantastic job, yes.

I was not, you know, just don't be scared. Just go out there. You know, if listening to podcasts or going on the internet, just look at properties. You know, we get so many emails every day now, wanting to sell us properly. But, you know, just go out there. Don't be scared. Right. Yeah.

Nothing to be scared of, right? Nothing at all. Nothing to be scared of. There's nothing crazy about this. Yes. I love it. Well, thank you again so much for being here. And then, you know, come back and talk to us again after you do the second one.

Yeah. We'll do. Okay. Thank you. Perfect. You guys were awesome. Thank you. All righty.

So that's it for today. Another episode of Epic Real Estate Investing is in the books. I'm Matt Terrio. Living the Dream. It's been a song for the broken. This podcast is a part of the C-Sweet Radio Network. For more top business podcasts, visit c-sweetradio.com.