SaaS Interviews with CEOs, Startups, Founders
The Right Way to Do Real Estate with Engelo Rumora Episode 194
07 Mar 2016
Chapter 1: What is the main topic discussed in this episode?
This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base. You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million. He is hell-bent on global domination. We just broke our 100,000 unit sold mark.
And I'm your host, Nathan Latka. Okay, Top Tribe, this week's winner of the 100 bucks is Dustin Goodwin. He's in the HR industry, specifically in the software as a service space, looking to increase his revenue. So congratulations, Dustin.
For your guys' chance to win 100 bucks every Monday on the show to build your idea, simply subscribe to the podcast on iTunes now and then text the word Nathan to 33444. Again, text the word Nathan to 33444. Coming up tomorrow morning, Top Tried, we're going to hear from Margaret Brown. She does 120 grand from one digital magazine.
She hustles and she's hugely successful with her new magazine called Podster. Okay, Top Tribe, good morning. I've got an exciting episode for you today from a guy with a ton of energy and a very cool accent. His name is Angelo Remora.
He's a successful property investor, motivational speaker, and soon to be author that quit school at the age of 14, played professional soccer at 18, and built a property portfolio valued at over $1 million in only six months. He's also known for buying Australia's cheapest house, along with running a multi-million dollar real estate investment company called Ohio Cashflow.
Over the years, he's continued growing his empire, assisting other property investors, and have been involved in hundreds of real estate transactions worldwide. A business principle that he loves and will always practice is having the right people around him so he can supply a specialized knowledge when needed. Angelo, are you ready to take us to the top? Nathan, what's going on, mate? Thanks.
That's a great intro. You like that? You like that? Good. Hey, you can use that recording for $30. I want a 10% royalty every time you use it. Mate, wait for me to get my first ever TV gig and then we can talk about royalties, alrighty? Okay, so are you negotiating right now for your first TV gig? Mate, I'm under contract right now.
But as you know, with production companies, they always fish for talent before they even have any money to start any shows. So it's a little bit frustrating right now, to be honest with you, mate. But, right, I'm pushing hard for it. I'm plugging away. And I know that one day I will get my gig. I love that. So I can already feel the top tribe going, Oh my gosh, Nathan had this guy on.
He's just one of these guys with a ton of energy. Is he actually successful? So they're probably thinking right now, Nathan, come on, hit him hard. What's he got? So give me the goods. How'd you build a $1 million property portfolio when you were so young? Well, mate, look, great question. Look, to be honest with you, I actually got caught in a lot of trouble when I was doing it.
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Chapter 2: How did Engelo Rumora build a $1 million property portfolio at a young age?
If I'm losing two or three, four, five grand a month, that's 60 grand a year. I mean, it's just not feasible moving forward, holding this portfolio, hoping, right? We don't base our decisions on hope. Hoping is not a strategy. Hoping is for people that, you know, have terminal illnesses, right? All right. So you're 23. You said you were 23 when you do this, right? How old are you now? I'm 28.
Okay. So tell us what right now, just off real estate, what's your monthly cash flow? All your deals combined. Mate, I actually do not own many properties right now because I'm committed to the business. I've got a higher cashflow. Okay. We're a multimillion dollar turnkey real estate investment company.
Literally right now, mate, I've got all of my funds tied up in 20 plus real estate transactions. Okay. So I've only got a handful of properties in my own portfolio because I'm busy servicing other people's needs. I've got two offices, 10 full-time staff. I can't commit to building my own portfolio right now.
Well, you know what people are going to think when they hear you say that they're going to go, come on, Nathan, this guy, this guy is not even eating his own dog food yet. He's putting up a membership course, charging people. I mean, you are, give us a sense. I mean, you have some property investments, otherwise you wouldn't be teaching it. I do my, and check this out.
My goal for this year is to buy 20 plus properties for my own portfolio for that exact same reason, right? For that exact same reason where a lot of the investors that we sell properties to, they're like, Angela, how many properties do you have in your portfolio? And I'm like, well, not many. Cause I'm Bloody helping you guys out and selling them to you.
And I finally said this year, I'm going to be a little bit more selfish. I'm not going to sell every single property that we buy, fix and tenant. I'm going to keep some for my own portfolio. And I'm going to use that as leverage to show the investors, guys, look, I'm putting my money where my mouth is. I'm buying the same product that I'm selling to you guys.
So how many properties do you have right now? Three, two, one. I've got three properties in my portfolio. And are they commercial or residential? They are residential, single family homes. And so how many total beds or bedrooms are you managing and what's the cash flow on it? Okay. Look, I've got two, two bedroom, one bathroom homes. They're getting $800 per month in rent.
And I've got one three bedroom, one bathroom home that's getting $900 per month in rent. It's $1,700 per month. It's around, look, around a $15,000 to $20,000 net return every year. So it's nothing spectacular, mate. It's nothing sexy. But let me tell you these numbers because I know you love your numbers, Nathan. Give me the numbers, baby. Give them to me. All right. Listen to the numbers, baby.
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Chapter 3: What mistakes did Engelo make in his early real estate investments?
Okay. I'm looking at my board here. We have closed seven deals this year. Okay. Approximate profit after all expenses are taken into consideration is going to be around $20,000 to $30,000 profit per deal. Okay? Take that and rewind it back, please. So, $210,000. $210,000, mate, for this month only. January 2016. January 2016, baby. And I've got four more deals closing minimum this month. Okay.
And I've literally got another three closings lined up for February. My goal and our company's goal and my business partner's goal for this year is to do 250 plus deals. Okay. And how are you... Let me ask you a question. I mean, people are going, well, Nathan, yeah, these are great.
If I could buy a company, buy a two-bedroom one thing that's spitting off $800 a month in cash, I'd do it immediately. But they're going, Nathan, ask him. How does he find the deal? Mate, can you check your pockets and tell me if there's one in there? I don't have any for you. Via any means necessary, mate. Via any means necessary. Forget about the MLS. We do a ton of yellow letter campaigns.
We've got some amazing relationships with asset managers. Everything that every other investor sees on auction.com, hubzoo.com, hudhomestore.com. Baby, I'm picking them up behind the scenes. Before anyone can see them, before anyone can touch them, I'm buying them. Angelo, you will be proud of me. My first real estate deal I ever did, I shaved my beard off. I was 23.
And I went around knocking in downtown Blacksburg and basically said, I'm now a junior in college. And I was lying. I mean, I was young, but I had dropped out at this point. But I said, I'm looking for a place to rent and stay. Do you have anything open to lease? And the person staying there would say, no, we're full.
And I'm like, well, can you connect me to the owner so that when you're done with your lease, I can maybe sign here? I'd get to the owner.
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Chapter 4: What is the importance of cash flow in real estate investing?
And then I'd take the owner to coffee. And I'd say, listen, I want to buy that. I want to buy the place. What's your price? And I had to do that maybe 10 doors to get one fantastic casual property deal. You just got to hustle. Love it, mate. Look, I always tell people, look, I've got a great saying. The more mud you throw on the wall, eventually some will stick.
Submit the offers every single day. Low ball every single offer you submit. A hundred times a day if need be. And guess what? 99% of the time they're going to come back and call you mad. But that one time you're going to find a desperate seller that needs out and you will land an absolute bargain, mate. There you go.
And that is how I bought Australia's cheapest house by implementing that strategy of hustling and submitting those offers every single day. Angelo, I had no idea you were from Australia. Really? No, I'm just kidding. I'm actually not. I'm from North Carolina. I know. Well, what is Ohio Cashflow? Are you guys in Ohio? Mate, we're in Ohio. We've got two offices, Toledo and Middletown.
Like United States, Ohio. Yeah, man. Where else? Well, I don't know. Australia, Ohio. I don't know if there's an Australia, Ohio. I don't know that either. I have to Google it, eh? Wait, so why did you... Okay, okay, that's cool. Okay, that makes sense. Tell me real quick. So you have two lines of business. One's the real estate stuff. You're also selling the content.
How much money do you guys make on, let's call it in December of 2015, on the content you're selling to other people? All we do, we don't sell content. We just buy, run down the streets properties. Okay.
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Chapter 5: How can investors determine their end goal for cash flow?
We fix them up to a great standard. We get them tenanted. Okay. And then we sell them to investors, East coast, West coast, UK, Canada, Australia. A lot of the investors that buy our properties, they want a hands-off experience with owning rental properties. Okay. So they come to us where we completely take out any hassle associated with owning investment properties. We manage it.
We manage it on their behalf. We do any maintenance repairs on their behalf. If we need to evict tenants, we can evict tenants. I mean, we hold their hand throughout the lifetime of the investment. Why would you sell it though if it's a cash flow producing property? Because we want to generate the revenue, put it back into the business, continue growing our company, servicing more investors.
And I mean, mate, you're an entrepreneur, right? At starters, when I first started investing in real estate, it was all about me. And then as I started growing as a business owner and entrepreneur, it stopped being about me. It started being about... Leaving a legacy.
It started being about, you know, servicing other people, getting more people on board, creating a company that can employ 10, 20, 30, 40 full-time staff and for them to support their families. And that's kind of where I'm at right now, mate. It's not about me anymore. I mean, my purpose and why in life is bigger than myself and it's bigger than money, mate. I'm telling you that.
I know it sounds corny, but I don't give a shit how corny it sounds. It genuinely is, mate. That's what's in my heart. And what I do is not about me. It's about everyone. Listen, if you sound corny, I'm greedy because right now I'm all about me. I have the general consensus.
If I build a lot of wealth and I think I'm better than most people at managing money, I can decide where to put it and I can help people do what they love. And that's how I think about it. But I'm selfish as hell. And that's how I think about it. Mate, look, I've got nothing against that. Look, all I'm saying is I agree with the figures.
Yes, we have to make a profit, but I still don't do what I do for personal benefit. It will come. I know it will come. You have to give others what they want, Nathan, before you can get what you want, mate. And that's what I'm doing right now. And look, it's delayed gratification, planting the seed now, reaping the harvest later. I can feel it coming, mate. I can feel it coming.
On that note, Top Tribe, if you want notes to Angelo's site, his background, some of the stories he shared and the links he shared already, you can check them out in the show notes at NathanLatka.com forward slash the top 194 against forward slash the top 194. Angelo, before we get into my favorite part of the show, where can people connect with you personally online?
Mate, Google is the best business card, right? And if someone doesn't know what Google is, well, boy, do they have a problem. But Google me, Angelo Rumora or Google Ohio Cashflow. We're there. Easy to find us, mate. Okay, Top Tribe, do not forget your chance to win a hundred bucks right here on the podcast every Monday. It's very simple. You just subscribe to the show on iTunes.
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