Real Estate Investing for Beginners: Run the Numbers and Avoid Emotional Deals

William Santos (00:00)
I got swindled by an agent, which we could get into. ⁓ and I did the two things that I tell people now never do. One, ⁓ never have the fear of missing out, FOMO, and two, never get emotional about the purchase. And I did those two things, regardless of the prep work.

Those two took over. I got hype on the deal. I didn’t want to miss out. So I jumped all over it. I negotiated the worst terms. ⁓ and before I knew it, I was sinking in that deep end.

Issa Hanna (02:01)
Welcome back to another episode of the Real Estate Pros Show. I’m your host, Issa Hanna and today I have William Santos, a realtor and investor.

here to share his experience and knowledge with us. William, welcome to the show.

William Santos (02:11)
What’s going on, Issa? How you doing today, man?

Issa Hanna (02:13)
Man, I’m super good. We were talking earlier. I’m super excited to to tell the people about your story, ⁓ about your lessons that you’ve already learned, about your new future plans coming up. So ⁓ let’s get started. ⁓ what are you kind of focusing on nowadays presently?

William Santos (02:30)
So right now, you know, the main focus is is helping buyers find investment properties, ⁓ two to four unit properties, ⁓ helping sellers get out of those properties, mainly the tire sellers, ⁓ tire landlords, things like that. So that’s my main focus right now. And also for myself, as you mentioned earlier, ⁓ I am an investor, so I am looking in those ⁓ specific markets as well. So that’s really what we’re focusing on right now.

Issa Hanna (02:55)
Definitely. And ⁓ we were talking earlier and you told me your I got into the real estate game this way story. And boy, is it an interesting story, bumpy road, ⁓ but a lot of lessons learned. So can you share that with our viewers?

William Santos (03:10)
Yeah, man. You know, I like I said earlier, you know, you don’t learn how to swim by reading books about it, right? You gotta jump into the deep end. And that’s exactly what I did with real estate. You know, I I took a little bit of prep work. ⁓ and then I said, you know what? I gotta get my boots on the ground. So ⁓ I looked out into Pennsylvania, northeastern Pennsylvania to be specific. I’m actually from North Jersey, but it’s about an hour and 45 minute ride out there. And I said,

Know I’ll trade in the the ride for a lower price on a deal. so I went out to PA, I found myself a deal. I got like I told you earlier, I got swindled by an agent, which we could get into. ⁓ and I did the two things that I tell people now never do. One, ⁓ never have the fear of missing out, FOMO, and two, never get emotional about the purchase. And I did those two things, regardless of the prep work.

Those two took over. I got hype on the deal. I didn’t want to miss out. So I jumped all over it. I negotiated the worst terms. ⁓ and before I knew it, I was sinking in that deep end. ⁓ but I tell you right now, you know, being a North Jersey kid, being a Patterson, New Jersey kid, shout out to Patterson. ⁓ I knew how to I knew how to survive. So I made the deal work. I held on to it for about a year. I forced a ton of value into that property.

And I made it, I just made it out of it. You know, I broke even on it. I probably lost a few bucks, but it wasn’t worth me stressing over. but what I did get out of that is I understood ⁓ numbers. That’s number one, man. And this this game is for anybody watching this, guys. This is a numbers game all day. It’s not an emotional business. It is a strictly does it math or does it not math? So I learned that the hard way.

But I I learned it. So that’s the most important piece. ⁓ I learned how to deal with contractors and I did it all literally for the most part by phone. I’m able to call a contractor. I made a able to call anybody I need to call to get something done. After I put in the legwork, obviously I spent a lot of hours driving back and forth. But after a while, you get a routine. I got settled in, ⁓ and I survived that deal. We can get into more of it, but it it’s a really it’s a really big deal to unpack. So

You know.

Issa Hanna (05:27)
I mean, ⁓ a lot of first-time investors get in like that, right? Then they they, like you said, jump in the deep end. They start drowning, and they lose money. So the fact that you jumped in the deep end at sink or swim, you didn’t lose money in your first investment. so that means you swam and and you learned lessons. So I would even I would even say you profited from that first investment. And now you’ve pivoted ⁓

And you’re a realtor, you’ve become a realtor and you found a mentor in the game to to kinda help guide you that way you never make those mistakes again. So can you give the people a little bit more about how you’ve been able to to do that and come back with a better plan?

William Santos (06:54)
Yeah. So a after that experience, when I reflected on that, I’m like, man, what went wrong? Right. Everybody does like a little reflection. You kind of sit back and analyze what you just experienced, what you just went through. So with a clear head, I just look back and I’m like, all right, it started from day one. I I went with the wrong realtor. And that experience right there is what prompted me to say, I don’t want the next guy to go through that. So I I started to look into getting my license as well.

right here in New Jersey. So I went and I got my license and then I said saying to myself, well, who do I want to hang my license with? So I started to look around and I found this group. Shout out the Opulent Group, brokers by real. Peter T, he is Dr. Real Estate. He’s the mentor of the entire group, does a lot of coaching with us. So I really like his style. So I joined them. We do a lot of things with like co-calling and stuff like that. but what I bring to the table is I understand the numbers of this business. ⁓

And I understand that anybody who works with me is going to get an honest opinion about the investment they’re about to make, regardless if they want to hear it or not. Because sometimes, you know, we go with somebody because they’re telling us what we what they want to hear. And I’m gonna tell you what what you need to hear because I’m gonna protect your investment as if it was mine. We were talking about that earlier. You know, we look at these investments as if that’s my money going in that deal, even though it’s not someone else’s. I can’t walk around, I can’t walk out of that.

you know, of that closing table, knowing that this person is gonna be drowning in the next three months. You know, it’s just I can’t have that on my conscious. So I didn’t want that to happen to anyone else. ⁓ and that’s really where we’re at and that’s how I’m gonna build my business. we’re laying down the foundation right now. So we’re in with the you know, like the dip of it, you know, we’re in the we’re in the grind process, but it it’s coming, man. It’s good it’s gonna happen.

Issa Hanna (08:44)
I can see it coming. ⁓ as a f you know, former successful, really successful agent. Everything you just said ⁓ is exactly how you build your business and your and your name to be golden. you got a mentor in the game. ⁓ and and yeah, I mean, a lot of realtors I know ⁓ that that have this philosophy, they got in the game because their realtor wasn’t the best realtor. So ⁓ to all you people out there, you know, ⁓

It’s not like, hey, I’m I’m gonna go with the Keller Williams or, you know, Berkshire Hathaway or whatever the company is realtor, ⁓ and they’re gonna be better or or every realtor is created equal. You know, you gotta really, really, really search, you know, maybe write down the list of of questions that they can ask and answer for you. And and hey, if they give you an answer you don’t like, but it’s a real one, ⁓ that might be the realtor for you. And another thing I wanted to pull out of what you said.

because you’ve touched on it a couple of times. This is a numbers game, right? Right. Numbers people do really, really good in our business because in real estate, when you get good enough, you can speculate those numbers almost to a T. So you real estate’s one of the only businesses you can project your numbers and actually get those numbers back ⁓ with with not too many variables. You know, you’re always gonna have a crazy variable coming in, ⁓ you know, once in the blue moon. But

For the most part, you can stay on budget. You know how much something costs. There’s comparables. There’s a lot of things. The way the real estate game is structured, that’s how it is. So I I love that you’re talking like that, William, because because it it shows that you’re going to be successful in this game. Another thing I want to ask you about. You said you’re a teacher. that that is super cool, you know. can you kind of tell us about why you decided to go into teaching?

William Santos (10:24)
Yeah, you know.

Yeah, so I’m a phys ed teacher. I’ve been doing this now for twelve years. I was out of high school and went down to a middle school. And what what actually happened was the way it all started is when I went to college, I was actually studying for business administration and then I was gonna take a minor in marketing. ⁓ then my wife now, my girlfriend then, my wife now, she got pregnant. She got pregnant. Now, but we we obviously we got pregnant and ⁓ I started to sit back. Again, I’m very reflective.

So I’m like, ⁓ damn, we about to we better have a kid and it’s a boy. I’m like, all right. So I don’t necessarily want a job where I’m gonna be tied to the office or I’m gonna be traveling. I don’t want to miss out on anything. So what could I do that could put some money in my pocket but also be present for everything? I was like, I don’t want to miss nothing. The kid farts, I want to be there, you know. So ⁓ I’m sitting in class one day and

This girl comes in, hair’s all wet, she’s all like drenched, she has a towel in her hand. I’m like, what do you what do you do? She was like, I’m studying kinesiology. And I’m like, I had no idea what that even meant. So I was like, what is that? She’s like, it’s fancy for phys ed. So the light bulb went off. And my wife now at that time was like three months pregnant. And I’m like, my phys ed. I was like, I love gym class.

So I went to my ⁓ counselor at that time and said I want to switch majors. So I jumped on that right away. I ended up graduating with my bachelor’s in three years because I just went through winter and summer. ⁓ I I actually did the VA, the G the post-911 GI Bill. I did serve in the military for four years. So I utilized that. So because it does pay for it, I just I just went straight through. I didn’t like waste any time. And I wanted to graduate it quick enough and

get a job fast enough where I can be stable so that when my little guy comes into the world, we’re ready to go, you know. So I did that. I ended up graduating. I got a job out of high school. ⁓ and it was awesome, man. And I’ve been doing that ever since. But, you know, as a teacher, and if anybody out there is a teacher, you know, we got summers off. I mean, we really worked like eight months out of the year. Let’s be real. You know, we got two two months off in a summer. We got

The holiday breaks, we got the Christmas breaks. So that’s when I started to realize like I have all this time. What do I really love doing as well? And real estate was one of them. ⁓ so now I ha I married to two. So I’m like the phys ed realtor, you know, around town.

Issa Hanna (13:32)
That is that is super cool, man. first of all, I want to thank you for your service. that man, you know what that’s telling me? You’re you just been a go-getter, right? You went from the military, three year college degree, ⁓ you know, became a teacher, jumped into the real estate game head first, no fear. I I love that. And and one thing also that I love about you, when we got on this call, you you said, hold on.

Let me talk to my son. You got the dad gang ad on right there. You love being the father, man. This is laying a legacy for for your family and your future. and that projects on the camera, man, right? It comes right across the screen on everybody. I wanna ask you then, where do I see where where are we gonna see you in five years, William? What are your future your five year plans?

William Santos (14:19)
It’s it’s funny, you got I have ⁓ put it up on the camera, but this writing here, I look at it every day and I got it’s actually a little bit more than five years, it’s twenty thirty-five, so it’s nine years from now. You know, my my goal is to have in my account five hundred K. Five hundred of my K ready to deploy at any at any moment’s notice and any sort of venture that that I see fit. And the way I’m gonna do that is through investing in real estate. ⁓

selling real estate, working with buyers. I even have in the back of my mind just sitting there’s lingering, but Airbnb and ⁓ our our native country of Puerto Rico. so we’re actually going over there next week. We’re just gonna browse. Nice. I’m not gonna jump into anything crazy. I’m a I’m a little bit more reserved now when it comes to that. ⁓ so we’re just gonna walk before you know it I’ll be texting you later on like yo I bought an Airbnb. I said I was going to reserve it. But

You know, so we’re gonna we’re gonna we’re gonna hustle, you know. That’s all I’ve known to do. That’s all I’ve been doing my whole life. I I can’t see myself not doing that. ⁓ so that’s how we’re gonna make it. So in the next but to cut it short from that 10 year goal that I have, in the next five years, I think we’re gonna be sitting on a few flips. if I put a number on it, maybe one a year start starting in twenty twenty seven. ⁓

2026 for me is a foundational year. It’s building my core foundation, ⁓ creating my network ⁓ here in New Jersey. Cause I actually do have a network in PA. ⁓ but I never really put one together here. But so now that I have that here, I got a I got a few people within my network now that are like sending me flips. I’m like, I’m like, hold up, this this market, something, something’s wrong with it, you know. And I I’m just gonna sit on the sideline, run to my numbers and make sure things make sense before I dive into anything.

but 2027, I I think is going to be a promising year. And that’s where things are going to really get rolling. So it’s going to be a combination of buy and hold and then quick flips. ⁓ so within five years, I think that’s gonna put us in a really good position to have at least three buy and hold properties with with about five flips in between. So that’s that’s the goal right now. So we’ll we’ll we’ll check in in a few years and see where we’re at with it.

Issa Hanna (16:33)
You know what? I’m gonna have you back on the show in a year and I’m gonna and we’re gonna check your progress because I I think that’ll be very, very interesting. ⁓ and then I wanted to ask you, you know, a lot of people that watch my show are are new realtors or they’re new investors, right? They’re they’re just jumping in the game like you did not too long ago. ⁓ but they struggle to do one thing that you seem to be doing very well, and that’s building ⁓ business relationships, growing their network.

Can you give them some advice on on how to start doing that?

William Santos (17:46)
Yeah, man, you you gotta do the the basics. You gotta get your name out there. You gotta talk to people, you know. ⁓ our team leader at Oplin, he says it all the time, more on the on the sales side. He’s like, you gotta talk to two to three new people every day, you know. And that’s really what I do. I I do make my round of code calls. I target high equity owners, tired owners, and things like that. And I talk to them. I don’t even market to them, honestly. So if you guys are out there trying to build

build your network and build your relationships. You know, for me personally, I I’m just real with everybody. And if I call someone and I’m like, hey, listen, you know, I’m asking them about their property and they’re like on the fence, I I don’t force it down their throw. I just build that relationship. And I know that because I didn’t, you know, come at them so strongly, there’s a good chance that they’ll call me in in another year or two. And you get enough of those and the ball will start rolling. ⁓

I just see random contractors doing work at houses in town. I stop by, say hello, give them a card, you know, I ask them what they’re working on, you know, ask them if I could take a peek. It’s really cool, you know, I really love what you guys are doing, you know, and build those relationships. It in the beginning it was hard for me because I’m not really like an extrovert like that. So you do have to get out your comfort zone, guys. So if anybody’s out there and is like, man, I I’m I’m struggling creating a network and stuff like that.

You gotta talk a little bit. And and it’s hard for me. It sometimes is uneasy because I’m like, I’m also fearful, right? That person’s like, get away from me, don’t talk to me, especially on like I’m a bigger guy, right? So they’re like, that’s this guy. ⁓ but you know, be a little charismatic. How you doing? You know, keep it real basic, real simple, but ultimately be yourself too. People can spot a fake from a mile away, you know, and if you go in there with a big fake smile and you’re like, you know, talking all

overly excited they’re gonna be like they’re gonna like pump the bricks you know you’re gonna make people you’re gonna give them that like crocodile brain where they’re gonna be like what what’s this person trying to sell me so ⁓ I just I just be myself ⁓ and you have a s a a a what you call that sphere right your your circle of influence your your sphere of influence don’t be shy to let people know I was very hesitant to put that I was a realtor on Facebook I don’t know why I was just like hesitant to do it

You know, and I finally didn’t, believe it or not, high school French was like, Yo, you you sell houses? Yo, you and I was like, Damn, I should have did that like three months ago, you know. And ⁓ you just gotta for one, get out of your comfort zone, go out and talk to people, make some phone calls, and before you know it, it’s it’s slow, it’s a grind. But before you know it, your phone starts ringing. You know, the those once were outbound leads are now becoming inbound leads.

You know, and people are calling you and and before you know it, it it really does get going. So you just gotta stick with it. I think that’s the one big thing. People hit that wall, they hit that ceiling and they’re like the same for me. they hit that first speed bump and they’re like, damn, I can’t get over this hump. Like you gotta get around it, over it, under it, you gotta find a way. But at the end of the day, just don’t quit and just keep pushing.

Issa Hanna (20:52)
A hundred percent. Wise beyond your years in real estate, man. everything you’re you just said, you guys gotta get yourselves out there. ⁓ you know, and and like you said, you struggle to say on Facebook that you are a realtor. You went through the school, you know, you know how much square foot is in in an acre, ’cause that’s on every real estate question. you know the laws, you know, you’ve did you’ve done more than most people who aren’t age ⁓ aren’t licensed. So yes.

You are a realtor. You joined your realtor association. put it out there. Learn the game. Get knowledgeable. ⁓ and and it’s a grind. You you might not pull a client the first year. You might pull one the first year. But guess what? Every single person, if you treat that one person right, is like a seed that will plant you a whole network of people that that, you know, next time you close a deal or next time somebody’s looking for a realtor, the person you close the deal for might say, Hey, I got a guy.

and and vouch for you because you did treat them right. So I I love that advice, man. Like I said, wise beyond your years. And now we’re gonna give you the floor, right? So ⁓ if people are in North Jersey and and they want to get a hold of you and they want you to represent them because you are an honest, integerful guy ⁓ and you’re all about the family too. ⁓ well where can they reach

William Santos (22:10)
Yeah, I’m real easy to reach. I’m on Instagram. I think that’s becoming like more of the the boomer social media because everyone’s on TikTok, but I’m I’m just on Instagram @williamsantos.rei ⁓ that’s on Instagram and also Facebook. so you can find me on those two platforms. And ⁓ if you go on Zillow or anything like that and you look up the Opulent Group , O-P-U-L-E-N-T Group, that’s the group that I’m a part of, and we’re located in Wallington.

our brokerage is real and most likely you’ll see me walking around town, man, door knocking or, you know, just checking out new constructions. pretty big guy, six foot one, can’t really miss me. So you guys will see me around.

Issa Hanna (22:53)
Definitely, man. make sure to check William out if you guys are in Jersey. The guy can really help you. ⁓ the Opulent Group can help you from just talking to him. He’s the right person you would want to deal with with your real estate transactions. William, man, thank you so much for coming on the show. I want to wish you good luck in the future. And like I said, we’re going to check your progress in about a year. So I’m going to give you a call to reappear on the show ⁓ in about a year because I’m very interested in your story and I know you’re going to do well.

William Santos (23:22)
Appreciate you and keeping me accountable, man, because now now I’m gonna have to put up a shut up, right? So and before I leave, I’ll be remiss. I I’ll probably get my ass kicked if I don’t do it. But I I do have my daughter Melania. She’s probably coming home soon. And my wife, Sam, so I gotta give them a shout out. I I gave my son Max already a shout out. He’s driving me crazy over a fishing pole. So shout out to the family. definitely for supporting me through all of this because they’ve always been in my corner watching me go through the ups and downs. So shout out to them, man.

Yeah, man, we’ll talk soon.

Issa Hanna (23:52)
percent shout out kids and shout out the real MVP your wife the backbone the one that supports and and and you know is the reason why why we all do what we do so ⁓ definitely man great great note to end the show on ⁓ I enjoy talking to you and to our viewers at home if you guys enjoyed my conversation with William and want to see more just like it make sure to hit like and subscribe I talk to people every day that can bring us different knowledge on every aspect of the real estate industry

Until next time, the real estate pros are out.