Jose Berlanga has spent over 30 years in the entrepreneurial trenches, and in this episode, he shares the unfiltered truth about what it really takes to build a successful real estate business. From partnering with family, surviving economic crashes, and managing explosive growth in Houston’s inner city, to shifting trends like build-to-rent and designing leaner, more flexible living spaces, Jose drops gem after gem. If you’ve ever wondered how seasoned investors think, adapt, and make decisions when the stakes are high, this is a must-watch conversation that will challenge and inspire you to approach real estate and entrepreneurship with more clarity, grit, and wisdom.
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Hello everyone, I am Adrienne Green and today I have with me Jose Berlanga. Get ready for insights to help you scale, systemize, and create more freedom in your real estate investing. Now, Jose is originally from Mexico City and now he is in Houston. Been there since the 80s and after doing a whole bunch of stuff, he is really killing it in the construction and development space. So Jose, I’m really happy to have you here with me.
And I can’t wait for you to tell us all your experience and wisdom. Let’s start with how did you get started in real estate investing?
Well, hello, Adrienne. It’s great to be here. Hello. All the way to Japan. Fascinating to be having this conversation from such far places. But yes, real estate now is part of my life for the last 30 years. I’ve been an entrepreneur my whole adult life and perhaps a good portion of my childhood and my early years. So I’ve been an entrepreneur all my life.
I talk about never having had the feeling of receiving a paycheck from a company that was not owned by me. Interesting experience, interesting feeling. The good parts and bad parts.
It’s great to know that you’ve been pulling it off somehow throughout your career, that somehow you’ve made it one day at a time, one month and one year at a time. Some good, some bad, some horrible, some wonderful. So this has been the life of entrepreneurship. But the last few decades have been devoted mostly to real estate. Most of my businesses happen accidentally—a combination. You provoke accidents, obviously you create and design your own destiny as you go.
Being known as the guy who can help set up and start and build a business, I’ve partnered with different people, different young people throughout my career that are trying to build a business that have come to me. I’ve been blessed to have great partners.
This particular partnership, which has been the most important part of my career—the construction business and residential single family—started with my brother Tristan, my younger brother, who’s an architect.
At some point, he wanted to start building homes on his own, but he didn’t have the business experience, the expertise to start and build a business. He had some of the technical aspects. He was an architect. He knew somewhat. Although not enough—we were new. I was a young entrepreneur. He did not have any experience actually building a home on his own.
And that’s how it started. I had already other businesses, so I had a little bit of capital. Not much because I had already been through the famous ups and downs, and I was going through a tough time when we started this company back in the 90s. So, long story short, I started as the investor in the business side of this business. Little by little it grew from a tiny little bungalow that we built here in one of the inner-city neighborhoods and took off from there.
Wow, that’s amazing. And I hear so many good principles here that you’ve shared. Now, one thing I would love is, as you tell the rest of your story here, talk about working with your brother. That’s something that so many people in real estate investing are working with family, right? They’re working with their spouse or working with brothers or sisters or other family members. And I’d love for you to dive into how that worked for you. What were some of the challenges and what were some of the benefits of it?
Absolutely. I have a lot of experience working with family. One of my first businesses was with my dad. And that was tough because his work ethics were obsessive compulsive and I get a lot of that from working with my dad. We partnered because we had different talents. He didn’t speak English very well. So that’s part of my initiation of my career was partnering with my dad in the oil and gas business. Let’s skip now to many other businesses and then eventually to the construction residential business with my brother.
One of the most wonderful partnerships. I compare partnerships with a marriage. You should be very, very careful selecting, choosing and deciding to partner with anyone—not whether it’s family or friends or people that you don’t even know. Think about it twice, be very, very diligent, very careful, because once you’re in the partnership, you got to give it your all and it’s too late to turn back.
So I’ve been lucky, but also very selective as to how and why I get into a partnership. Because it’s got to work and you got to give it your all and you have to know that the other person is reciprocating.
In this particular case, my brother and I—it went excellent because we were more focused on our relationship and our mutual success than our individual desires and our individual needs to build a business. We were more focused on making it work. We compromised, we helped each other, we respected each other’s talents, and there was an enormous amount of trust.
If you don’t have that upfront, don’t partner. Just don’t do it in the first place. We were partners for approximately 20 years. We did not have a single argument. We did not have a single problem, although we made millions, lost millions, went through every turbulent, difficult, imaginable circumstance—and not an issue—because there was that love, that respect, that willingness to be there for each other.
You have to have that in a partnership. If you’re selfish and just focus on what you want, it’s not going to work. Partnerships are not 50-50. They’re 100 and 100. Every party has to give it all in order for it to work. And it worked wonderfully even when we didn’t do well in business because we were a support system rather than a problem. So we were able to navigate through difficulties together.
That’s so important. I mean, if you think about what you said with how partnership is like a marriage—if you and your spouse go through a tough time, the last thing you want is for your spouse to come at you, or find blame with you or anything like that. You are hoping to lean onto your spouse as your support person and you guys lean on each other through that tough time. But so often people don’t apply that to business partnerships.
They instead—especially in the US—we can be very individualistic and just kind of think, how can I get out of this the best? So that’s a great philosophy for people to use as they’re going into partnerships or working through some tough times in their partnership.
Yeah, in partnerships, we’re always expecting the other person to do more and to give more and to give it their best without really self-reflecting on how much we’re actually contributing and whether we’re doing everything we can to make things work. Yes, that’s the mentality that you have and you absolutely have to be extremely careful in that selection process.
For sure, and I think people can just kind of jump into partnerships with anyone, so it’s always a good reminder. Now Jose, tell us about how you went from that first little bungalow that you built—and then I know it was a journey, like all of them are, with peaks and valleys—you said made millions, lost millions. What do you think that through line was, or what are the highlights from that experience you had with that business?
Understanding your business—you learn to figure things out, to problem solve, to become an expert in what you do. We learned to try to focus on one sector of real estate as opposed to trying to be all things to all people, which never works. We tried to create our own niche market and become the best at one thing—not the best at so many things where you end up losing your focus.
It was a journey. I think part of what helped us become successful was that we were not just looking for success. We were looking for specific objectives of becoming better, of doing things right, of delivering quality, of offering the right product and service. And when you compound all those things, the results are clear and simple. It becomes all a consequence of your effort.
We weren’t necessarily in the early years particularly looking for a home run, which is a mistake that all entrepreneurs make—to expect immediate gratification, immediate results, and immediate profits. And we were persistent because we did not make money for years. It wasn’t fun. It was a lot of sacrifice, a lot of work, very little in return. But once you understand that and you go in with that mentality of giving and putting up with whatever it takes, one random day, without even noticing, without even understanding how—you’re successful. But it takes years. And you stop focusing on that shiny object. You just focus on doing better and providing a product that people want.
That is such a good point. We don’t think about how entrepreneurship, including real estate investing, requires grinding away for years before getting a result. Now, I’m curious—for somebody who may be in the thick of that right now—is there any kind of mindset or anything that you would pass along to help them get through that hard, hard period of getting that ball rolling?
I could give endless amounts of information and advice for new entrepreneurs that are going through those initial steps that are painful. But it’s hard to really feel that pain through somebody else’s shoes. But what I will say is do not feel alone, do not feel that the world is against you, that entrepreneurship is not for you.
I’ll tell you that it’s not about being successful—it’s about being willing and able to tolerate the process. If you have the ability to put up with the pain, to put up with bad days, to put up with losing money—because we all have the ability to make money, that’s fun, we can all do that. But do you have the stomach to lose money, to lose your time, to invest days and months and years without getting anything in exchange?
If you have that in you, if you have that ability to contribute without really expecting anything immediately in exchange, you are an entrepreneur and you’re not alone. Just know that this is the way it works. You just don’t get immediate results.
That’s so great to hear. So often in our society, you only hear about the good days—that’s what’s shared on social media or the news. But I love that you can just tell in your voice, Jose, that you have been through that work—that drudgery of just doing it day in, day out, until you get that return. Thank you for sharing that.
Yes, my pleasure. I’ve been through so many battles, so many ups and downs. I often say that in entrepreneurship there are more bad days than good days. There are more tough days than positive ones. And you just have to know that in advance. And if you can just travel that journey, eventually it gets you there.
That is one of the misconceptions because—now you just mentioned social media—everyone likes to show those fun and exciting days and the success and how easy it is. But that’s not the reality. I love talking about the reality of business, which is much more humbling. And you have to know it so that you don’t get discouraged when you face it.
Right. If you can expect it and it doesn’t surprise you, that’s half the battle in dealing with it for sure.
Alright, so take us back to your construction journey here. I know there was so much growth happening in Houston during the time you’ve been doing this, so I bet it was just a wild ride.
Yes, and we didn’t even imagine how much we were going to grow. This goes back to the process. I think success happens when you stop thinking about it and you’re so focused, so entertained, and so overwhelmed with your day-to-day activities. Then one day you look back and, before you know it, you’ve built things that you never imagined you would.
In our particular industry, we were very focused in one market—which was inner city—revitalizing neighborhoods that were forgotten. This was a very interesting concept happening all around the United States. Many people didn’t realize what was happening simultaneously around the country.
In the earlier part of the century, mid-century, as people started migrating to the suburbs, the inner cities became almost obsolete and forgotten. So, all of a sudden in the 80s, people started to want to come back to the inner city. That’s when we started our business—when it started to be trendy again. Perhaps we came in a little earlier, before it was trendy. We were some of the pioneers building in areas that were transitional, not very appealing or attractive—borderline scary. But the locations were amazing.
You were in downtown, in the hip neighborhoods where all the activity, restaurants, bars, and fun things were happening. There was a new generation of home buyers that wanted to be close in. They didn’t want the commute time. They didn’t want the suburbs. Our timing was right—but the speculation was there. It was dangerous. It was very scary at the time and highly speculative to build in these neighborhoods.
But it worked. We started creating this new market and we built a company that was amazing. Before you knew it, there was a lot of competition—like everything else. There are very few businesses where you get to be the only one. You’d have to invent something or come up with an amazing concept. But in the normal businesses I’ve been involved in, there’s been tremendous competition all the time.
There are more people attempting to be successful in just about every industry than actual opportunities out there. So the only way to really differentiate yourself is to outwork people—to put in more sacrifice, more time, and more effort than the rest of the people in the same industry. There is no other way.
And the good news for those who are willing to put up with it is that not everyone has that passion for what they’re doing. If you don’t have that intention—that reason behind what you’re doing—it’s very likely that you will quit.
If you’re just focusing on making money and jump into an activity because you see an opportunity, rather than because you have a desire to do something right, there’s a good chance you’ll walk away once things get difficult. And that’s where the real opportunities are.
Well, and I think that’s a really good point. What you can also speak to is that because you’ve done multiple businesses over your entrepreneurial journey, you can have that passion for a business or to help, and it can evolve into something else over time. Can you speak to the different things you’ve done and how that desire evolved as you succeeded in those areas?
Business has a life of its own. It tends to take you where you never anticipated.
Sometimes you design a path—let’s call it a business plan—and by the way, I’m very big on business plans. I do feel that investing enough time preparing for your business, doing the right due diligence, the right research, answering all of the questions you can come up with before you start helps tremendously.
But there’s a big change once you actually start. The business starts acting in unpredictable ways—the markets, the pricing, the reaction of your customers, the reaction of competition, the fluctuations of the economy.
As an entrepreneur, you have to be very quick to adapt and pivot and listen to what your business is telling you. The numbers—what products are selling, which ones are profitable. I’m very big on information. I never start a business without setting up the right systems of information—accounting, numbers, financials, cost control, a solid profit and loss statement that provides you the information to act upon those results.
That’s part of my lesson over the years. I need a lot of information. I need numbers—not only accurate but timely information to conduct business. And once you have that information, listen to it, pay attention, and adjust.
For example, a quick funny story: when I was in the restaurant business, I wanted a hip, fun piano bar to add to the concept we had decades ago. But we ended up hiring a group that had a following we weren’t aware of—an older crowd than I planned for. The design of the room, the menu, the cocktails—it was all for a younger crowd. But the musicians had their own following.
Suddenly, I had this older crowd I didn’t understand. So we started adjusting everything to cater to them, and it did very well. We had to not get stubborn about what we wanted from the business. We had to focus on what the business was doing, how it was operating, and where it was leading us.
There’s always science. Your business talks back to you—your products and your customers. You just have to pay attention and have the open mind to become better and more successful and hopefully profitable.
And that’s such a good point. You make the business plan, but then have to realize that if you’re lucky, maybe 20% goes according to plan.
Yeah—rarely does a business plan go as planned. Even seasoned entrepreneurs, billionaires—they still get surprises. I’ve been operating companies for decades, mostly in real estate, construction, development. Rarely does a day go by without surprises—something not going the way we planned. You don’t ever enjoy that part, but you get better at tolerating it and faster at reacting and processing the changes without denial.
That’s so important. And something else you mentioned—having the systems in place to collect data, your KPIs—so that you can pivot. When we talk about the real estate space, there are so many investors who say, “I have no idea how to start tracking my numbers.” I’d say 99 out of 100 entrepreneurs struggle with bookkeeping and getting that data in a timely fashion. How would you help those entrepreneurs?
One of the most fatal mistakes any business can make is not having accurate, timely financial statements. I’ve lost businesses because we were months behind, and bookkeeping was a mess.
Here’s how you do it even if you don’t understand it. Most small business owners aren’t bookkeepers. So, number one: research and understand the fundamental costs of the business you’re getting into. What does it take to produce your product? What does it cost to operate?
Then—record every single dollar and penny that goes in and out. The moment it happens. Name it, tag it, understand what it is. It’s simple arithmetic. You don’t need to be a CPA—just be organized and consistent. Eventually that data starts telling you a story.
Start recording things immediately and regularly. Eventually you begin to categorize expenses and see what’s working and what’s not. Over time, we got more sophisticated. Now we know which developments by price point, finishes, square footage, or neighborhood are doing better. It applies to any industry—but it all starts with recording information, period.
That was awesome, Jose. I hope a listener takes your advice and avoids learning the hard way like so many of us have.
Putting a bunch of receipts in a drawer isn’t going to cut it. It’s very normal for new business owners to do that—but it’s not the way. Don’t just throw things into a cabinet or folder. That’s not organizing.
Yes—having those up-to-date financials is transformational. If even one listener does what you’re saying now instead of later, we’ve done our job.
Don’t just focus on the fun parts of your business. To be a successful entrepreneur, you have to accept that some parts won’t be fun—but they’re just as essential. Your business requires attention in all areas to survive. It’s like raising kids—they all need your time, not just your favorites.
Exactly. You wouldn’t expect your kid to flourish if all you did was play soccer with them, but didn’t feed them, bathe them, or help them with school. But in business, we do that—focus only on the parts we like.
Precisely. You focus too much on one area, and other areas suffer. It’s a juggling act—just like family.
You’ve given us so much wisdom about entrepreneurship and investing. As someone active in construction and development in Houston right now, what are the trends you’re seeing going into 2025?
In single-family residential construction, which is always evolving, we’re seeing huge shifts. Construction is like fashion or food—always changing.
People don’t want to be tied to a mortgage. We’ve created a new division—Build-to-Rent (BTR). We build single-family communities specifically to rent them. People want their own structure, garage, backyard, space—but they don’t want to buy.
Another trend: people want more quality space, not necessarily more square footage. We used to build 2,000-3,000 square foot homes. Now it’s 1,200-1,600 square feet. Cost of living is up, so we have to deliver smarter, more efficient homes.
Yes! I saw that in Chattanooga. My daughter had a playdate in one of those brand-new build-to-rent communities. A whole subdivision—all rentals. I’d never seen that before.
Exactly. And it’s growing fast. Big players are buying whole subdivisions for this model. The newer generation wants a lighter lifestyle, fewer responsibilities, and more mobility.
That’s such a strong insight. Okay, to wrap us up—what’s your go-to tool for managing operations?
Honestly—discipline and repetition. Every system works if you use it consistently. I prioritize my day, define what absolutely has to get done, and organize my thoughts before I attack. That’s my number one tool.
And what advice would you give your younger self?
Most young people ignore advice—but I’d tell myself: have more faith. I operated with constant fear that things wouldn’t work out. But if you show up every day, do the work, and stay responsible—it will. Just believe.
So good. Lastly, is there a book that’s been transformational in your investing journey?
Honestly, my own. I’m on my third book. I waited decades to write because I wanted to be worthy of it. My first book is about building a business in construction, not just structures. The second is about land development. The third is about the entrepreneurial lifestyle. Writing is cathartic and clarifying.
And how can people reach out to you?
JoseBerlanga.com. I’m not super active on social media, but I’m easy to find online. I’m adjusting to this new digital world!
That’s perfect. Thank you again, Jose. And to our listeners—if this helped you, share it with someone who needs to hear it. See you next week!