How to Start Real Estate Investing With Multifamily, Flips, and a Real Estate License

Armando Roman (00:00)
I would say start off in the minor leagues, just as a way to kind of explain it analogy. So minor leagues meaning if you haven’t bought a house yet, become a first time home buyer. Get yourself acclimated by getting your own loan and buy a property, which is going to help you anyways financially. Either I’d say ideally start with a multifamily.

that’d be the first bet which that allow you to gain gain experience working with handyman, contractors, maybe management unless you self manage which is great too you learn a lot of skill sets, how to deal with people in that space.

Michelle Kesil (02:02)
Hey everybody, welcome to the Real Estate Pros podcast. I’m your host, Michelle Kesil and today I’m joined by someone I’m looking forward to chatting with, Armando Roman, who owns the brokerage Signature Realty and has also been doing fix and flips in the Massachusetts area. So excited to have you here today, Armando.

Armando Roman (02:23)
Thank you, Mr. I appreciate the opportunity.

Michelle Kesil (02:24)
Of course, let’s dive in. So first off, for those not familiar with you and your work yet, can you share what your main focus is?

Armando Roman (02:33)
Yeah, my main focus is the fix and flip business. It’s been a great part of my business. It creates a lot of cashflow for me. And the home base is the brokerage. So I would say those kind of like are the bigger chunk together of what I do as a business operator and entrepreneur. And the brokerage, like I said, we have over 40 agents, my partner and I, Carl, and we’ve found it and started Signature Realty here in the Western Mass and Hartford area, Connecticut.

we’re expanding and that’s the primary of what I focus on in helping buyers and sellers, clients sell and buy property.

Michelle Kesil (03:07)
Awesome. And how did you get into real estate and decide that you wanted to invest yourself?

Armando Roman (03:11)
Sure, well, fresh out of college, I graduated from UMass Amherst. I always knew that I wanted to buy a multifamily property. I amateurly saw the opportunity, didn’t really get educated in the space, didn’t know a lot, didn’t have much of anyone from my family that had experience for the most part. know, people in my family did own houses, but not a lot of them, and didn’t always share those experiences. So that’s how I got started with a couple of multifamilies.

Eventually I sold the property, we sold the properties, like I said, I was amateur, they didn’t know how to be a professional landlord. And that led to years later reconnecting or connecting with one of my current business partners, Noah, and we started buying multifamilies, three families to be exact. We would fix them.

and we would apply the birth strategy. So we would buy rehab, rent and refinance and we would keep those properties. We ended up getting quite a few of those and fast forward. Realtors weren’t getting quick enough to me or weren’t getting me through showings quick enough. So I got my license with the intention just to be able to self-service me and my business partner and facilitate the process. And in that process, I started helping just

families and folks, first time home buyers, investors, acquire property and found it was very rewarding, but also it felt good to help families buy property. And that was a lot of fun and still do it today. And then we’ve expanded through the brokerage now.

Michelle Kesil (04:32)
Awesome. And what do you feel have been the main keys that have allowed your business to grow and run successfully?

Armando Roman (05:27)
Sure, would say, yeah, just resilient. Never giving up, always finding a solution, having a positive mindset. Seems to be a lot of like small, small things that a lot of people ignore, business owners and just people in general. And I’ve tried to really narrow in those and also my faith, my faith in God. Again, people kind of overthink these things, but I find that those are the biggest forward movers in my life. You know, stay grounded.

a positive mindset, being resilient, finding solutions where others see problems, I find solutions. There’s always a way, you know, to do something, you know, and been able to kind of dive deep into that and building patience. You know, I, my younger years, now in my early forties and my younger years, I was quite impatient and there was some benefit to that. I was forced to make a lot of mistakes and learn from them. Luckily, and especially in business, this is my

probably my fifth business where I’ve actually succeeded. The prior ones, not so much. You know, I’ve had yogurt stores, frozen yogurt, I’ve had bodegas, I’ve done trash removal, different businesses. And a lot of my impatient had a lot to do with the failure. So I have learned from that and become more patient. So I would say, you know, that’s probably some of the strengths that I have today that continue to drive me forward in success.

even through the bumps, I still kind of keep going.

Michelle Kesil (06:42)
Yeah. And what are some obstacles or challenges that you’ve had to overcome in this career?

Armando Roman (06:48)
Yeah, I would say, know, obviously working with other people presents challenges. You know, for the most part, people are pretty good, but sometimes you run into all sorts of people where, you know, they don’t have to work ethic. Communication is a big thing that I think is very important in business. And when you’re servicing or working with other people, it’s important and unfortunately you have to navigate through that. The lack of communication, the lack of accountability, and it could be…

sometimes upsetting or frustrating, but you have to stay the course. And one thing that I’ve learned, I think a lot of people might mention in different spaces and real sometimes on social media is you can’t control what you can’t control. So I try to stay focused on that, just focus on the things that I have direct control over and hope that everything else falls into place and some accountability when I’m able to challenge others, obviously.

And just what I expect from others, be the best at it if I can. So if I expect good communication, I also have to understand that I have to communicate well. I’m not perfect in any sense of the word, but I do try to improve every day and there’s always room for growth. And that includes evaluating myself and self-improvement so that I can hopefully lead the way, not just for people that work for me.

but also for my other peers that don’t work for me necessarily.

Michelle Kesil (08:01)
Yeah, amazing. And so what, like how has the fix and flip business been part of your journey? Like what are some of the things that you’ve learned or are looking forward to continue to scaling in this business?

Armando Roman (08:17)
Yeah, you know, I’m not sure if this answers directly, but this comes to mind when you ask me this question is ⁓ in the world of social media, which is a great platform that has allowed my business, my fix and flip business, among others, to grow and flourish and educate people that have obviously have expressed a lot of interest both in the business or also in reaching out. Maybe they have a property they want to, you know, offload and they feel like, you know, I could be a good partner with that and that opportunity is

The point I was trying to make is social media is easy to kind of compare yourself with others and you always feel like you’re behind or, you know, it always it can lead to like feeling like you’re lacking or that you’re not doing enough or there are others that are doing better than you or they, you know, they’re better than you in general. And it’s it’s all false.

You know, I think, you know, social media, most of us use it as a, you know, a place of ⁓

to highlight ourselves, the good parts of our life, but not always the bad parts, you know, and I enjoy all of it, you know, the hills, the valleys, you know, I think it’s a journey, life is beautiful.

You know, even the valleys, they’re great, you know, they create discipline, they help you grow in knowledge and wisdom, they allow you to just mature and be a better operator and a better human.

in general. you know, I’ve always stayed grounded. So Fix and Flips has allowed me to create, you know, a lifestyle for myself where, you know, I can be more president, be president, more president in my family and my kids’ lives. And has allowed me, you know, to be grateful, you know, not just to God, but just in general for this opportunity. So I’m very grateful. And like I said, a lot of people, you know, a lot of comparison, but I’m very happy.

where I’m at right now and I’ve enjoyed the process as of late. Like I said in the beginning, the grind, the daily hustle, kinda keeping your head down. And recently, past couple years I’ve learned to put your head up, look around you, look what you’ve built, look what you’re doing, helping others in different ways, people that make money alongside with me, and they’re able to feed their families. And that has been a great joy and blessing for me. And like I said, I’m very grateful to God because he’s the one that

has opened those doors for me.

⁓ But as far as like being a business operator in the fix and flips, something that I always tell people, there’s an acronym called SMART, which emphasizes the importance of setting specific, measurable, achievable, that’s important, achievable, relevant and time-bound goals. Seems like a lot of words, but they all are pretty simple to explain. It’s basically,

If I had to put it in simple terms is taking one day at a time, max a week or super max a month at a time. I think this idea of like future planning, it’s cool, but it’s not always practical. I think what really dictates our life and what has the most impact is our day to day activities. And I think a lot of folks, if they took the time and dissect their day to day,

they would realize how much time they spend on negativity, how much time is spent on social media, browsing, pointless browsing, how much time is spent on non money making activities, or even non productive activities. It’s not just making money, even though money is great, as we know. So I think being specific about what your goals are, more so in the short term than the long term will

allow you to hit those long-term goals anyways, if you have them. ⁓ So I’m not a huge fan of long-term goals, even though, you know, it’s important to write some of those down too as well. But my thing is, what am I doing today that will impact tomorrow and the rest of the week?

Michelle Kesil (12:14)
Yeah, absolutely. And what are you most focused on solving or scaling to next?

Armando Roman (12:21)
Yeah, so like I said, I’m enjoying right now where I’m at and I always focus on growth. Personal development is important. I’m developing as a speaker as well. I’ve been able, gracefully been, some doors that I’ve opened up where I’ve been able to speak, podcast opportunities. Again, I appreciate you, Michelle, and your platform. And just really, just a lot of self-development.

being present in my kid’s life, that’s important because they’re nine and 13 and I want to be a good model influence. And on the business side, just continue what I’m doing to growth, make sure that I’m growing healthy. I’m not over leveraging myself. I think we talked offline about it’s easy to kind of take on too many opportunities and try to grow too quick. or like I said, back to the social media stuff, or you you want to compete with others. So I kind of removed the whole competition with others and just really competing.

with myself, not so much in volume, but you know, quality, improving my systems, which in turn will create some, some speed later for myself when it makes sense. So just really, just really diving into, you know, the things that affect the business and grow and healthy, I guess.

Michelle Kesil (13:22)
Yeah, can you expand on what some of those systems that you are discussing are?

Armando Roman (13:28)
Sure, So tracking everything from expenses. So I have spreadsheets for my expenses for each project. You know, lot of these things are, you know, make are a lot of common sense, but a lot of investors kind of forget or get a little lazy or they get overwhelmed. So anything that’s overwhelming that does not allow me to

stay on track and record the work, then that’s a problem. you like I said, the spreadsheets are important, both on the expenses, also a pro forma for each property before I buy the property and updating it as I’m working the project, doing analysis. So comparative market analysis, which compares the local market of like properties of the one you’re either selling for a client or in this case, the flip. So I’m doing running reports throughout.

⁓ the construction phase because I need to make sure that if the market drops that I’m not overspending on the project or if I’m going with a know, a higher level of finished materials, I might want to not to go to high end because you know, the numbers don’t align. So I have to make sure that I’m profitable because it is you know, feel a for profit business while still putting a good product. So it’s a balance. So this is probably some of the biggest things, making sure that marketing is on point.

and make sure that, you know, the videography, pictures, making sure that we are compliant, you know, with the paperwork, it’s important. know, documentation, so we have the lead form here in Massachusetts. So there’s a lot of like ⁓ paperwork and we have, you know, I have a team behind me that handles a lot of the stuff, which I’m grateful for as well. And that’s part of our system and the process.

Michelle Kesil (14:53)
Yeah, amazing. And how is your team structured within your brokerage?

Armando Roman (15:40)
Yeah, so we have two main brokers, myself and Carl. We have an assistant who handles compliance. She’s also a transaction coordinator. We have three social media and general marketing folks, part-time roles. And one of them is an intern. And we have, like I said, we have about 40 realtors also that they work in different capacities, part-time, full-time agents. Some do a lot of deals, some do a few deals.

and we try to keep ourselves present. have a schedule that we go by. We have a couple trainings. One training a month, usually an activity a month is what we try to go by. yeah, it’s overall, it’s not like a ton of work, but we do wanna stay disciplined and creating events and different opportunities and making sure that we’re always improving the branding, staying ⁓ present.

or staying current, I guess I should say, with the market changes as well as the shifting. So right now it’s a buyer’s market. So, you we’re trying to stay focused on helping buyers acquire property and making sure that, you know, we’re being financially responsible and we’ve opened a second office now. So we started in Enfield, Connecticut, and now we have a second office in South Hadley, Massachusetts, which is Hampshire County. So we want to make sure that, you know, if people want to work with Signature Realty, we want to be present so they can work with us.

and have a local office.

Michelle Kesil (16:51)
Amazing. And what are your goals or opportunities that you are excited about for the rest of the year?

Armando Roman (16:57)
Yeah, I have a development that’s been a little stalled up, but hopefully we’ll have some good progress very soon. It’s a four unit condominium, new construction in the Boston area, Neil Ponset. We have that going on. I have about five flips in different stages right now that I’m excited about selling and, you know, hopefully having families or individuals buy them and free up some cash flow.

There’s some other opportunities of new construction also in the shore area of Massachusetts and Boston and looking for more opportunities to buy some property. ⁓ There’s another one that could be potentially in Cape Cod. So there’s a lot of opportunities on the fixing flip on the brokerage. A lot of agents are building a lot of momentum and they’re growing and they’re putting deals together and I’ve seen people that are learning and confidence allows people to take on more and opportunities.

come to them because they’re able to service their clients better. So I’m seeing a lot of growth in different areas, like I said, with the brokerage, with the fix and flips and the new build. So yeah, we’re very excited about it.

Michelle Kesil (17:53)
Awesome. What advice would you give for someone that’s looking to get into investing?

Armando Roman (17:59)
I would say start off in the minor leagues, just as a way to kind of explain it analogy. So minor leagues meaning if you haven’t bought a house yet, become a first time home buyer. Get yourself acclimated by getting your own loan and buy a property, which is going to help you anyways financially. Either I’d say ideally start with a multifamily.

that’d be the first bet which that allow you to gain gain experience working with handymen, contractors, maybe management unless you self manage which is great too you learn a lot of skill sets, how to deal with people in that space.

So that would be the first step I would take if someone is looking to invest in real estate. And once they do that, maybe they might want to acquire a few properties. Maybe they get into property management. It’s not for everyone but you know it’s a good introductory into

real estate space. And then I would say the next step I would do is probably get my real estate license, become a salesperson, like a lot of us did. That will allow you and educate you knowing what clients need and want and expect when it comes to finishes, design layouts. It’ll give you schooling that you don’t have to pay for. Someone else is paying you for it and you’re learning it because you’re getting commission on those deals.

and you get yourself more comfortable and you also get more confidence in the real estate space. And then, you know, once you get your license, I would, like I said, buy property, get your license. Then at that point, you might be ready to take on a flip and you want to have some money saved up. I always tell people, you know, the more the better, but a good number would be a hundred, a hundred thousand dollars in liquid. I think that’ll gives you a, you know, enough cushion in case something does go wrong.

⁓ you have some reserves that you don’t lose your shirt in the process, hopefully.

Michelle Kesil (19:34)
Definitely. Thank you for sharing your perspective.

Armando Roman (19:36)
Absolutely.

Michelle Kesil (19:37)
Well, before we wrap up here, someone wants to reach out, connect, learn more, where can people find you?

Armando Roman (19:42)
So I’m mostly on Instagram, it’s my biggest platform. It’s Flipping Roman, the word flipping and then just Roman. Also on Facebook, Armando Roman. I have a page there, a personal page that I use for business or the broker. You can search as Armando Roman broker as well. And myself, it’s 413-505-2891. I’m looking forward to connecting with people that are interested in real estate or want to grow, which I am big on mindset also.

and positive thinking and I think what we say and how we feel and think definitely opens doors in our life.

Michelle Kesil (20:16)
We’ll appreciate your time and your story. Thank you for being here.

Armando Roman (20:19)
Thank you, Michelle. Appreciate it.

Michelle Kesil (20:20)
course. And for those tuning in, if you got value, make sure you’ve subscribed. We’ve got more conversations with operators like Armando who are building real businesses. We’ll see you on our next episode.