Latest / Beyond Fulfillment Podcast / Overcoming Fear to Find Success in Energy & Real Estate: Jose Berlanga’s Remarkable Story
Transcript
- 0:01Jose Berlanga is the CEO of Houstonian.
- 0:04Capital and Onyx Land Partners.
- 0:08Originating from Mexico City and beginning his entrepreneurial journey as a teenager in Houston, Jose has built remarkable career, transitioning from the energy sector to real estate and construction.
- 0:21In this episode, Jose shares his journey that began with exporting oil and gas, Machugare.
- 0:27Fueled by a natural inclination towards entrepreneurship and his father's industry influence, he offers a unique perspective on fear, stress and anxiety, seeing them as motivators rather than obstacles.
- 0:41Jose delves into the importance of early entrepreneurial ventures, advocating for action to relieve anxiety, stressing the need for persistence and realistic expectations in business.
- 0:53We also explore his strategic approach to business, the evolution of his career through shifts in the market, and the growth challenges faced within real estate.
- 1:04From his initial investments to developing single family homes and writing insightful books like the Business of Home Building and the upcoming Dirt Rich, Jose offers a wealth of knowledge.
- 1:17As always.
- 1:17If you found value from this content, please like and subscribe.
- 1:21Hello everyone and welcome to another episode of the Beyond Fulfillment podcast.
- 1:26I'm your host, Dave Goulis and this week my guest is the CEO of Houstonian Capital and Onyx Land Partners, Jose Berlanga.
- 1:36Welcome, Jose.
- 1:38Good morning, Dave.
- 1:40Great to be here.
- 1:40How are you?
- 1:41Hey, I'm doing fantastic.
- 1:43Appreciate you asking and I appreciate you taking the time to be with us today.
- 1:47It's my pleasure.
- 1:48I'm excited to be here and thanks for having me on your show.
- 1:52Absolutely.
- 1:53So we were just talking off camera and you've had quite a journey as an entrepreneur over the past 30 years.
- 1:59Can you tell us how you got started and give us your backstory?
- 2:05Yes, my backstory as an entrepreneur is very long, of course, and very traditional.
- 2:12One of those kids that wanted to be his own boss at some point and started dabbling in understanding the fundamentals of business from a very young age.
- 2:23But the opportunity came about, I was young enough where I could just gamble with, with my future and not necessarily require a job.
- 2:32So, so I started with, with the, the first opportunity that came about when I arrived to United States.
- 2:41I grew up in Mexico City, which I had already attempted to do a lot of unofficial business, buying and selling things and trying to figure out how to, how to make some money.
- 2:55But not until I, I arrived in Houston and started an exporting company for, for machinery, for the oil and gas that my official career as an entrepreneur began.
- 3:08And I was very young, I was 17 actually when I started my first business.
- 3:13So, so that led to a number of things, to a number of Opportunities.
- 3:17The fact that I started as an entrepreneur very young, it established me as, as a reliable person that, that appear to be the, the guy to go to whenever other people had interesting ideas.
- 3:32I, I was the person that people wanted to go to in order to start their own businesses.
- 3:37So I began to get into a lot of other, different industries.
- 3:42Okay, okay, so let's, let's start there.
- 3:44So you grew up in Mexico City and then you came, did you come over when you're a teenager then?
- 3:49Yes, to start going to the university.
- 3:54I came to go to college.
- 3:57The US has always been part of our second home because my father was in the oil and gas business at the time.
- 4:07And Houston, Texas being an energy related town, the capital of energy, we used to travel here quite a bit.
- 4:18So we always had a second home in, in the U.S.
- 4:22so it was a very natural progression for us to eventually come here to go to school and eventually, you know, we started a business.
- 4:31I started a business and it just made sense to continue.
- 4:35So yes, yes, we came here to start all over again.
- 4:40Once I got into a school, I always wanted to start my business.
- 4:46So it was a very immediate decision.
- 4:51Let's do it.
- 4:52I didn't want to wait until I graduated from college to start learning about it.
- 4:58So immediately I started looking for opportunities and that was the most logical because that's the industry, the area where I knew some people, where I understood a little bit about it and started the journey.
- 5:13Okay, well, and a great, great lesson there too because like you said, you came over here and you're in University, you're 17 years old and you didn't want to wait.
- 5:23So you made a move before you're ready and you took action and you started and you had the wherewithal to start within an industry that you like you said you knew some people, you had some basic understanding, so
- 5:35seemed to make sense to you at the time.
- 5:37Like give us an idea like you're 17, right?
- 5:40And still so, so inexperienced, right at that time.
- 5:45What was it like getting that business, you know, off the ground and growing it being so young.
- 5:52When, when you start a business, some entrepreneurs have a very, very good idea of what they want to do and how they want to execute their companies and their vision.
- 6:05If you start young enough, you might not really know what you're doing, but that might be an asset.
- 6:14You don't know what you're getting into.
- 6:16All you have is energy, willingness, the desire to do something and you just go with a flow.
- 6:24You go one day at a time.
- 6:26Learning Experimenting with things and, and with very little pressure, which is one of the wonders of starting businesses when you are still young enough.
- 6:38Because that fear of the unknown and the stress of having to produce an income right away, somewhat, it's reduced to a minimum.
- 6:51So it was a relatively simple.
- 6:54I often get asked the question of how I got away from the fear and the concern of starting my own business.
- 7:03I was a little bit different.
- 7:06My fear was to wait until I graduated.
- 7:09By the way, I was going to school when, particularly in Texas, there was a major economic crisis.
- 7:18The oil prices had dropped horribly, the oil industry in general was going through a horrible, horrible moment in time.
- 7:29And I, my concern was to go through my studies only to find out that I could not find a job because that was the environment that was clear at the moment.
- 7:45And I had more of a concern to not start a business.
- 7:49So I would say that it's the opposite of most people.
- 7:53Most people worry and stress and get concerned about how they're going to start a business and how is it going to work.
- 8:00I was more worried about not doing something right away in waiting.
- 8:05So this is something that I always recommend young people to do.
- 8:08Don't wait around because it's much simpler to start dabbling and learning while you are going to school.
- 8:15If you have the opportunity to go to college, don't, don't wait.
- 8:18I mean, do both at the same time and take advantage of all the, the time and the energy that you have at that moment.
- 8:26That's an interesting perspective too.
- 8:28And you know, like you said, your fear was different.
- 8:31But regardless, you used that fear as a motivator and channeled it into action, which is so important.
- 8:38Yes, I love, I love stress.
- 8:40Everybody throughout my life have told me to stop worrying, to stop stressing, to stop rushing.
- 8:48I am naturally a worrier.
- 8:51I am naturally an anxious person that is always busy.
- 8:55I create work.
- 8:57I come up with lists of things to do all the time.
- 9:00That's just the way that my, my mind is wired and the way that I explain it to some people is this stress, this concern of mine has led me to achieve a few things in life.
- 9:17If I was always relaxed and I was always confident and I was always thinking that things are going to go the way that I plan them and the way that I anticipate them, perhaps I wouldn't have done as
- 9:27much, I wouldn't have learned as much and I would have assumed that things are just going to happen as planned.
- 9:35And that's not necessarily the way that life works.
- 9:38So I Attribute.
- 9:40I don't recommend people to overstress and over worry, but I do recommend people to use that to their advantage.
- 9:48Because the combination of stress and worrying with action lead you to success and lead you to getting things done.
- 9:58When you stress and worry and do nothing about it and procrastinate, that's a problem.
- 10:05So naturally those, those attributes of being a person that is always thinking and that is always planning are not bad.
- 10:13The bad part is not to do anything about it.
- 10:16So it's okay if you're one of those stressful type of personalities which come together.
- 10:23They're very much part of the world of entrepreneurship.
- 10:27Just use them to produce, use them, Use those particular stresses in life to get you to do things.
- 10:36The biggest, the most important medicine in my life against anxiety is to knock things off of my list of things to do.
- 10:47You have no idea how much that relaxes me.
- 10:49That is my medicine.
- 10:50And doing as many things as I can any given day is what makes me feel better.
- 10:57And I would think that a lot of entrepreneurs share this particular attribute and personality.
- 11:05Yeah.
- 11:06And so true.
- 11:07And numerous people have said that in different ways.
- 11:09I don't know that I've ever heard it said.
- 11:11I guess your quote would be action is the best medicine for anxiety.
- 11:15Absolutely.
- 11:16Absolutely.
- 11:17For me it is sitting around thinking about it, worrying about it.
- 11:22I'm one of those people that the moment that I start getting a little nervous and anxious about the next day or about some of the thousand problems that are always going on in any business, particularly a growing business
- 11:36and expanding business, I just sit and attack them and start producing solutions.
- 11:45I love thinking about theoretic scenarios of how a business will end up going because you start solving problems before they even show up.
- 11:56Once you have enough experience in the business world and understand that rarely business goes in the direction that you anticipated, you start developing your ability to design paths in which your businesses might end up and start creating sort
- 12:18of like a chess player, where you already envisioning where your opponent might go or might attempt to go, and you start designing responses.
- 12:31That's what a busy mind of an entrepreneur does.
- 12:34And that's what makes you progress in advance in business because you're always prepared for the good, the bad and the ugly.
- 12:45Yeah.
- 12:45Anticipation.
- 12:46Love that.
- 12:47Yeah.
- 12:48And as you mentioned, right.
- 12:50Things not going as planned.
- 12:52Like you said, you started your first business in the energy sector because that's what you knew.
- 12:57But much of your business career has actually been in real estate and construction.
- 13:02So can you tell us how that happened?
- 13:05Yeah.
- 13:05Yes.
- 13:07The business world is very interesting because it will take you wherever the opportunities are.
- 13:19Some good, some bad.
- 13:20If you happen to be in a particular company.
- 13:24Business industry that is changing like mine did at that moment where my niche market began to disappear.
- 13:35No matter how you modernized it, the brokering of machinery for the oil and gas began to change a lot.
- 13:44Where new distributors, where the Internet came about in little by little it began to change.
- 13:53And it is important for entrepreneurs to always recognize and not get too stubborn about what is happening with their industries and either modernize them, adapt or move on.
- 14:05There are moments where you have to decide whether what you are currently doing is beginning to be a waste of money and time.
- 14:14I don't call it quitting, I call it being realistic.
- 14:20Avoiding this denial face that a lot of entrepreneurs have by staying in a business that is no longer working for you.
- 14:30So at one point it wasn't, it wasn't working, it was changing.
- 14:35My vendors weren't paying their bills and before you know it, I was out of business.
- 14:40And it took me a while to get into real estate.
- 14:43It was an opportunity that came about years later.
- 14:47There were many other businesses that I was involved in.
- 14:49I don't.
- 14:51We.
- 14:52I never have time to really discuss all the attempts and startups and investments that I made that failed.
- 15:00And I learned about each one of them over the years and over time.
- 15:04And I'm, I'm really more known in the real estate because that is where most of my success occurred.
- 15:13I was participant in other industries where some.
- 15:16I made money and eventually didn't work out.
- 15:20And eventually I ended up in real estate with a very, very small investment, with a very, very small company just building one little, not even a home, we call them bungalows, you know, in those transitional neighborhoods back in
- 15:34the 90s with a very small investment.
- 15:36And it was a struggle to get it started and, and it was a gamble because that industry wasn't doing very well.
- 15:43And it was a very speculative investment back then, building in transitional inner city neighborhoods.
- 15:52But we thought it was something to give it a shot.
- 15:57My brother and I started this construction company and to our surprise, our home soldier, we tried it again.
- 16:05We built another one and then we built 2 and 4 and began to grow and eventually it turned into a pretty decent sized company.
- 16:13But it was a transition that took years in the making, by the way, it took several years before we actually turn a profit.
- 16:21We didn't make money in our first house or our second.
- 16:25And we had the patience, perhaps the mental capacity to understand that a business doesn't really make a profit right away.
- 16:37And we were frugal enough to figure out how to live through that period of time without making any money, you know, living on, on, on very, very little money at the time just to get by.
- 16:50And one day it began to make money and to grow and, and it turned into a strong player in the residential construction business.
- 17:00But it was quite a challenge and it took a long time.
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- 17:31Yeah, and that, that's another great lesson you bring up is just patience in terms of, you know, just listing the years that you were out there making attempts and trying different things and failing and continuing to, to hang
- 17:45in there and try again.
- 17:47And then even when you had something that started to work, like you said, it wasn't profitable right away.
- 17:52You had to endure, you know, some pain and some losses and, you know, for years before you actually turn the corner.
- 17:59And it really grew into a successful and profitable business.
- 18:03Absolutely.
- 18:04And you need to acquire that obsession of making your business work to the point where you are so busy making it work, doing what you need to do.
- 18:20I remember that it was, it was consuming because we not only had no experience, but we were confronted with the array of activities that this business represented, from the construction aspects to purchasing the material costs, dealing with accounting,
- 18:39dealing with legalities, dealing with the city, with permits, with city planning, different departments.
- 18:45You are going crazy every day just trying to get to the next stage and achieve just the very fundamentals.
- 18:55That time went by little by little.
- 18:58We were learning, we were growing, we were so absorbed.
- 19:02And my point is that if you are really involved in your activities, time goes by very quickly.
- 19:10I mean, it was four or five years we were trying to build this business and you lose track of time.
- 19:18And it takes years.
- 19:20I often say that perhaps a good number, a good point of reference to build a business is 10 years.
- 19:31Everybody starts seeing your success and assumes that you are an overnight success.
- 19:37But truly, I don't see how a business can turn into anything of value in less than that.
- 19:45It's, it's just a, a standard unless you're, but you're inheriting the money or, or buying an existing business, which is a Completely different conversation altogether.
- 19:58But if you are a startup, if you're starting from the ground up and in building a business, it takes years in a lot of growing pains before you actually start enjoying the fruits of your, of your labor.
- 20:12And you have to be ready for it physically and mentally.
- 20:15So, so it's a, it's something that the average entrepreneur.
- 20:20I always like to talk about the average entrepreneur.
- 20:23There are those exceptions of people that ran into some idea or concept and it just took off.
- 20:31But I don't, I, I don't like to discuss that, those particular examples, because they're rare.
- 20:38The average startup, the average entrepreneur has to battle the basics of starting and building a company.
- 20:49And sometimes we feel alone because we only hear the stories of those incredible experiences and unique examples.
- 21:01The Facebooks, the Amazons, the Teslas and the big monster, the Microsofts, Oracles, all these crazy companies that just experience this amazing exponential growth that happened.
- 21:17And even those took years, by the way, but they did experience a ridiculous exponential level of growth and that rarely happens.
- 21:26So we start comparing ourselves to some of those concepts and start thinking that maybe we're doing something wrong, that maybe we're just not qualified, capable or smart enough to operate a business.
- 21:38And no, no, that's just the way it is for most of us.
- 21:41It's important for entrepreneurs to understand that that is the way it is for most of us.
- 21:47It's going to be difficult.
- 21:48You're not going to grow at that level if you're making a profit.
- 21:53You're already one of the rare unique businesses that are successful because a majority do not even stay in business.
- 22:06So, so yes, we need to be a little more realistic and compare ourselves with the right type of examples?
- 22:15Do you see that as like the biggest reason people give up is, like you said, just comparing themselves to maybe these exceptions and, you know, not really understanding what the journey really is and all the pain and the,
- 22:28the extended time that it takes.
- 22:32I, I believe so.
- 22:33Most, most people fantasize about the business world in, in a, in, in a very unrealistic way.
- 22:43We, we tend to think and see business ownership as something much more fun, exciting, profitable.
- 22:54We tend to believe that we're about to enter this magical world where you are the boss, you own your time, you get to direct people and simply become the visionary, you know, the captain of the boat with all
- 23:10these people around you running around doing things for you.
- 23:14And the reality is very different.
- 23:19At least in the early years, you are taking on a task that is going to be very painful, where you're going to be Mr.
- 23:28Everything.
- 23:28You're going to be the assistant, the runner, the accountant.
- 23:33You're going to be behind the desk working multiple shifts.
- 23:38And when people come to terms with what it truly represents and that it's not just about linear success and consistent growth, that you're going to go back many, many times.
- 23:50Just like the waves in the ocean, one day you're moving this way and you're going back and forth and back and forth.
- 23:56Sometimes you're ahead, but most of the times the currents are pushing back because competition is monumental.
- 24:04In every industry, there are too many people attempting the same concepts and ideas.
- 24:11And you, once you face that resistance, you realize that maybe this is not as interesting or fun or easy as we anticipated.
- 24:21And yes, a lot of people quit.
- 24:24A lot of people do not apply that mind over matter, that persistence that it's required to continue.
- 24:33They don't have perhaps the passion or the willingness to put up with the pain.
- 24:42But once you get there, then it starts becoming that, that, that new reality of an entrepreneur.
- 24:51Once you cross that bridge and you get to a point where your business begins to do well, that's when you begin to enjoy the, the privilege of being a business owner and a business operator.
- 25:03But you have to go through that very, very difficult stage.
- 25:07And if you're not, you're simply not going to get to the next level.
- 25:14If you don't go in with the mental state of mind that it's going to be a lot of stress and a lot of pressure and a lot of risk in the early stages, it's going to be difficult to
- 25:27move forward.
- 25:29Okay, appreciate you detailing your journey and on all those attributes as well.
- 25:35I mean, that's valuable.
- 25:37So tell us present day what you're doing with Houstonian Capital and then Onyx Land Partners.
- 25:43Well, I continue to operate construction companies, real estate investments.
- 25:50It's something that by now comes natural to me.
- 25:54I've been in it for so many years.
- 25:55And interestingly enough, the real estate in just about every business continues to change.
- 26:05Even today.
- 26:06I continue to adapt the way that we do things.
- 26:11Innovation, new generations, new technology, apps.
- 26:18The way that every business is conducted needs to change.
- 26:25I've seen previous generations, I remember where people lost their businesses because they were unwilling to adapt to new technologies.
- 26:34And before you know it, they were obsolete.
- 26:38I'm observing that in every industry now with AI, with the number of technological advances, we are going through some of that, even the new concepts that are appearing within the real estate, the number of investors jumping in the
- 26:57way that investors, its investments are happening, developments are happening, are changing, and we are.
- 27:07To answer the question, I remain in, in different sectors of real estate, commercial, residential, retail, rental income, passive investments, but also we're very, very active in land development.
- 27:21There's, there's a lot of competition, of course, because now real estate is, is not the same that it was 10, 20 or 30 years ago where the barrier of entry might have been a little tougher.
- 27:33Now it's relatively easy for anybody to jump in and raise a little bit of capital.
- 27:37And before you know it, you're competing with, with many, many people.
- 27:43I often get asked the question, so who's your biggest competitor?
- 27:47And my answer is, I don't have one.
- 27:50I just have a ton of small competitors fighting for the same deals.
- 27:55And if you don't become an expert in your field and understand your niche market, the sector that you're in, it becomes very, very difficult to grow and to stay in business.
- 28:07So we've maintained a portfolio of different types of real estate.
- 28:15Now the bulk of our activities are still in single family and land development where the bigger companies, the public companies are taking over as they have the residential construction market.
- 28:32There's a lot of new developments that are now being built just for the purpose of renting.
- 28:37There's a new concept now because of inflation, because of the difficulties of home ownership.
- 28:44A lot of developers in public companies and investors have noticed there's a gap in the market where there are people who want to live in a single family home but they cannot afford the down payment.
- 28:57They want to own a home, but they can't.
- 28:59So they're, they're starting to either build or buy developed completed residential developments and renting them.
- 29:12This is a relatively new market in corporate America, is responding to it by acquiring all and building entire subdivisions just for rental purposes.
- 29:25So we are doing some of that.
- 29:27We're building and delivering homes to some of these companies that are doing these type of investments and also becoming part one of the players where we retain some of our inventory.
- 29:38The ideal is homeownership.
- 29:41I've always been pro home ownership because it is good for society, it is good for the nation in so many different ways for communities.
- 29:54It engages people to take better care of their neighborhoods when they actually have a stake in it by owning a home.
- 30:02But unfortunately not everybody can afford one.
- 30:06And you have to have both, both types of products for people who are going to go in and own their home and for the ones who, who can only rent in the short term.
- 30:17Okay, all right.
- 30:19And if people want to get in touch with you, Jose, find out more about what you're doing or reach out for, for any other reason.
- 30:24What's the best way that people can get in touch with you?
- 30:28They can reach me@jose berlanga.com.
- 30:31that is my, my website.
- 30:33We're at Onyx and of course all of my social media, YouTube, Facebook and all the, all the normal traditional social media outlets.
- 30:48But Josebanga.com is really the easiest way.
- 30:53My book is out.
- 30:54The Business of Home Building and Dirt Rich is about to come out.
- 30:59My second book that's focused on land development, land investing and land speculating.
- 31:05Everything to that has to do with selecting the right piece of property for the right purpose.
- 31:13And I'm very excited about this second book that's about to come out.
- 31:18Tell us about the book that's coming out.
- 31:19So what made you decide to start writing books?
- 31:26Writing books has been something that I've been considering for, for a long time.
- 31:32All of us have those hopes and dreams and ideas that we keep putting off, hey, one day I'm going to learn this or one day I'm going to do that or the other.
- 31:43And this was one of them for me.
- 31:44One day I'm going to write a book.
- 31:46I didn't necessarily originate with the idea of writing about real estate.
- 31:52That was not what I intended to write.
- 31:55I wanted to write about other things, more about entrepreneurship and adversity and about my life experiences.
- 32:03But once I talk to people who do this for a living and who are much more experienced, they recommended that I start writing about some of the things that I have the most experienced in.
- 32:16So that is why I began writing about home building, the business side of the construction business, which there was very little material out there, by the way, which I surprised myself to find very, very little on the business
- 32:32side of the construction in entrepreneurship, by the way.
- 32:37But eventually I pivoted a little bit with a second book talking about the importance of land in everything that has to do with real estate.
- 32:48Everything begins with a proper selection of a piece of dirt from its purpose, its location, the value, how to select all of those components from the location.
- 33:03What should I pay?
- 33:04Why should I select this piece?
- 33:07What is the purpose of what I intend to do with this particular piece and how to understand my involvement in the industry itself.
- 33:16What is my participation and how to better understand how do I fit in in this industry.
- 33:22So I began all of these ideas and concepts and turned them into a book.
- 33:27I think it will be very, very helpful not Only for new developers, for investors, or anyone who wants to participate in real estate, which I keep saying that at some point all of us get exposed to real estate.
- 33:42Whether you are in any business that requires even a lease, you, you require space, you buy a home, you, you end up renting property.
- 33:54At some point we will all be exposed to real estate one way or the other.
- 34:00So I talk about it and how to really understand some of the fundamental aspects of this industry before you get into it.
- 34:07So it's a very thought provoking book and it's, it was fun, but it was fun to write and to unload all these ideas and, and thoughts.
- 34:16So the.
- 34:17My biggest problem when I'm writing is condensing information.
- 34:21And I have so many.
- 34:24I'm one of those very, very busy type of brains that it is difficult to just summarize all of these ideas and turn them into chapters because there's so much to say and so much to talk about.
- 34:43So it was quite a process and I will continue to do that.
- 34:47I'm working now on a more general, more broad entrepreneurship book on how to start a business, how to build one, what it means to be an entrepreneurship, what is the mentality, what is the logic behind it and what
- 35:03it means.
- 35:04So I'm having a blast.
- 35:07This is turning into a new face of my career of writing books and I hope to continue doing it for, for as long as I can.
- 35:17Okay, well, appreciate you sharing all that and we will link the info on the books in the show notes as well for everyone.
- 35:25All right, thank you.
- 35:27Yeah, thank you so much for taking the time to be here, Jose.
- 35:29We really appreciate it.
- 35:31And that is all the time we have for now.
- 35:33We will see you next time.