Epic Real Estate Investing - 11 Real Estate Investment Hacks to Speed Things Up | 536

Episode Date: December 7, 2018

Today, we are sharing with you the 11 real estate investment hacks that will speed up, or at least facilitate, the process of your wealth creation. Learn why you should resist friendly advice, how to manage the risks, and what the benefits of thinking in a long-term are. Learn more about your ad choices. Visit megaphone.fm/adchoices

Heads up, Epic Investors, the Epic Intensive, the lead machine workshop. It is officially on the calendar. This is where you're going to get the secrets to building your lead machine and your passive income streams. That's all happening on January 24th through the 26th in Vegas. And at this invite-only workshop, you're going to be able to get your own custom lead machine to work around the clock in your market. You can get help in real time. You're going to get feedback from others. And you're even going to get that damn lead machine finished.

Heck, you may even make some new like-minded friends. and the like-minded network is priceless. In fact, here's just a sample of what you can expect at this invite-only workshop. It's going to give you the building blocks to build a lead machine that's comfortable and efficient for you to use, one that you will use consistently because you like it and you're comfortable with it. And the workshop's going to give you the kick in the butt you need to start generating consistent, motivated seller leads.

And there's even a built-in deadline for getting your lead machine up and running. So you're going to end up saving a ton of time and money working by trial and error. You don't have to make all those mistakes. I did it already, so you don't have to, and you can finally stop worrying about how to create consistent quality leads, especially if you're new. And much, much more. Go to epicintensive.com. You can reserve your seat there. You can get all the details. In fact, I'm so confident this will be the event that takes you in your real estate investing to the next level. It's what's going to put you over the top. I'm not going to ask you to pay until after the event. That's right. No risk to you. I'm going to

carry that entire burden for you. So what that means, this is how it works. If you don't feel the lead machine workshop was worth at least 10 times the price of admission, just let me know. And you will not be billed. It'll be that easy. That's how we roll around here. I mean, how could you lose with that?

10 times ROI is guaranteed. So don't miss this invite-only live workshop where you'll finally get your lead machine finished and start using it to flip contracts for cash and holding those properties for cash flow. Go to Epicintensive.com and I'll see you in Las Vegas. This is Terrio Media. Hey, Rockstar, Matt Terrio here from Epic Real Estate and we're going to talk about hacks today. What's a hack? What's a tactic or strategy that enables speed or ease or a shortcut, if you will?

All righty, so let's go over some real estate investment hacks. We want to do that today. 11 of them, in fact, so that you can speed up the process of your wealth creation. Or at the very least, just do it with a lot more ease. That's coming your way on today's episode of Financial Freedom Friday. So at a recent Epic Intensive, I had on stage with me two clients who have been able to escape the rat race more than twice as fast that I did. And I taught them how to do it. So how did they do it?

What are their hacks? You see, when it comes to investing, when it's done right, it's really focused on risk management. It's a simple mathematical truth baked into how money compounds to create wealth. You use, for example, a 20% loss. It only requires 25% gain to get back to even, but a 50% loss requires an astounding 100% gain. And a 90% loss requires an impossibly large 900% gain just to get back to even.

The point being is the math, it's unequivocal. It's not how much you make when you are right that determines your wealth, but how much you lose or don't lose when you are wrong. already so i've got 11 real estate investment hacks for you today to help speed things up so we're going to maximize our gain but most importantly we're going to minimize our loss should things not work out as they planned because you know sometimes things just don't work out so let's look at this uh number one invest in yourself in your business your business when i'm talking about investing yourself i'm talking about education i'm talking about mindset i'm talking about

investing and developing your skills and then taking that that mindset and that education and those skills and creating a business out of it here's why with it when you're investing you're going to need money to invest and you need a good strong money-making machine to to generate a good income to generate profits to generate revenue so you can take that and invest it in a vehicle such as real estate so that it works harder for you than you did for it but if you you got just a $15 an hour job do you really limited on how much you can actually put into your real estate investments and that can that can slow you there right so invest in yourself invest in

your skills invest in your education and invest in your business invest in your business before you go out to the stock market and then invest in somebody else's business got it so that's number one number two find a mentor find a mentor and specifically find a mentor that has been there and done that with regard to what it is that you want to accomplish So find a mentor that has reached your level of wealth that you aspire to reach. And, you know, I just, I can't think about how much differently life would have been. If someone told me that in my senior year in high school, because I did not find really good mentors until much later in life. But once I did, things really started to accelerate.

You get to, you get different perspectives and opinions than you do from anybody else in your life. and you learn of all the things of not to do because they've made all the mistakes so you get to leverage that their experience for that so you don't make those mistakes and you get to learn like what works what what is actually working and what's the right thing to do to get to where you want to go and I think another part of it is that the relationships and the connections a mentor can bring to you as well as the resources all right don't underestimate finding a mentor find one okay even if you got to pay for number one. Number three, and this kind of goes hand in hand with finding a mentor, but resist the friendly advice, you know, the friendly advice. Make sure that whoever you do take advice from has more than you do at least, preferably has what it is that you want to have. So be careful from the person in the cubicle sitting next to you or the neighbor in your apartment building, right? Be careful and resist that friendly advice. Okay. Number, 4. Manage your risk. We talked a little bit about this right in the opening.

Manage your risk. And when it comes to real estate, the way, a really good way to manage your risk is to evaluate every single property for multiple exit strategies. Because sometimes plan A just doesn't work out and you need a plan B. So really, I guess simply put, just make sure the deals that you get involved in. Make sure they have equity so that if you if it doesn't go right and you need to sell it, you don't lose any money. you can still make some money. And the other side of that is make sure that they cash flow, or there's a way to make them cash flow. Because if you get stuck,

if your first intent was to flip it and you get stuck holding it, you want to make sure that it's paying you and it's not costing you to hold on to it, okay? So manage your risk with multiple exit strategies. Number five, think long term. Okay. There's really some really exciting strategies like wholesaling and fix and flip where you can make giant chunks of cash in the short term.

but if you're not thinking long term you're going to be flipping properties or flipping contracts forever that financial freedom that wealth creation will never be yours with those short-term strategies all right i mean um things mark twain said uh don't wait to buy real estate buy real estate and wait and there's a lot of wisdom in that and if you just think you know where would you rather be today having fix and flipped 20 houses 20 years ago or having um bought and held 20 houses 20 years ago. What would the difference be in the outcome where you are today? It's really, it's not even a contest, right?

Number six, be patient and remove your emotions, insert your math. Okay, I think that be patient was supposed to be with the long term. Think long term and be patient. Number six is remove your emotions and insert your math. So too many, I guess investors that get bad experiences, especially when they're getting right into it is they look at an investment as would they want to live there or not right or people will get into the fix and flip game and they start overfixing because they wanted to look really nice they get caught up in the

emotional aspect of investing don't do that it's this is an investment you can you can think emotionally about your primary residence because that's got to do everything with your lifestyle you're gonna spend all of your time there so you want that to be comfortable right you want that to look nice you want it to be clean and perfect. So, but when it comes to the investments, all you're really concerned with is, am I going to make money off of this thing? It's called an investment, right? So you just want to buy low, you want to sell high. It's a very basic math equation. If the math works, it's a good investment. If it doesn't, it doesn't. Okay. So invest with your emotions,

not your math. Number seven, live within your means. Now, this is a little bit of some time modern wisdom but when you start and extrapolate out your journey through or to your wealth creation make sure that you are your lifestyle is chasing your income and your income isn't chasing your lifestyle you know what I mean for example you want to escape the rat race right you want to get your passive income to exceed your monthly expenses but if you're living above your means your expenses are always going to be here and you're going to be having your investment and your income trying to chase your lifestyle to try to chase your expenses no keep your expenses fixed okay as fixed as you can get your passive income to where a point

where your passive income covers your expenses on a monthly basis whether you go to work or not and then as you continue to build your passive income then you can allow your expenses to rise you can allow your lifestyle to rise all right so live within your means number eight actively participate and delegate very, very carefully. So first, I want you just get started. Stop thinking about it. Stop getting ready to get ready. Forget this analysis paralysis thing. Just start. You can't steer a parked car. You've got to get going, okay? And once you get going, you need to actively participate in the driving of that vehicle. And you just want to be really careful on when you start to delegate.

Really, the only two places that people will end up losing in real estate, it's either a bad contractor or a bad property manager or a combination thereof. I've had all, I've had plenty of experiences with all of those scenarios. So when it comes time to start delegating, because you don't want to be a property manager, you're not going to get out there and swing in a hammer unless you like that sort of thing. But you're going to need to delegate. But when you start bringing people on to help you in your wealth creation venture and helping you with those types of tasks, do as much due diligence on them as you did on the real estate

themselves. because that's really where everything starts to crumble. Even if you got all the other stuff wrong or excuse me, all the other stuff right, it can all come crumbling down with that one thing, just a bad contractor, a bad team member, a bad project manager, a bad property manager. Okay, so actively participate, delegate carefully. Number nine, automate and systemize.

And what that does is it not only alleviates you of working in the business And not only alleviates you from doing all these things that you might not want to do, what it does is it brings consistency to your wealth creation. Automation is consistent. And it's something that happens around the clock, whether you feel like getting up and going to work or not, because there will be days where you just don't want to go to work, right? You're a human being.

You're like me. Sometimes you just don't want to work. But focus on automation and systemize your business. And that's one of the things that we do here at RAIAs that bring so much success to our clients, is all about the automation and the systemization because it brings consistency and it allows you to focus on the highest and best use of your time

and takes all those other mundane but essential activities and takes them off your plate and make sure that they get performed on a consistent basis, okay? So consistently rising is always going to outpace start, stop, start, stop, start, stop, okay? All right, number 10, this is a biggie.

Go deep. before going wide. And I've learned this lesson the hard way more than once. Because it's just kind of in our blood, in our nature of entrepreneurs. We're ambitious, right? We have these big aspirations. We want to do big things.

And we have a tendency to get bored a little more quickly than your normal person. And what happens there, here's a practical example. Let's say single family residence is going to be your thing. So you go out and you buy the house, make sure you got it right. Okay, make sure you got the right house.

You got your inspections and everything is up to snuff. Everything works. Everything is clean. Everything is safe. It's up to code. It's a good house. And you go and you find a tenant. You put the tenant in there and you lay out all the rules for the tenant.

You let them know what your expectations are. This is when the rents do. This is what you're responsible for. This is what I'm responsible for is. You got some clear communication. You go and coordinate property management and you let the property manager know, this is how I like the property ran and then you go and you let that first investment go and micro manage that property manager even if you get on their nerves a little bit I don't care

this is your money it's your investment okay I want you to watch it like a hawk and just when you think this is absolutely perfect and you've got four five six months in and this investment is just it's rolling right along and it's paying you consistently don't go out and start investing in apartment buildings don't go over and start investing in storage facilities No, go grab yourself another house. Okay, you've got this down. Going deep before going wide is a huge accelerator of your wealth creation. And you got your second property.

You do it the same way. And everything's finally tuned up and everything is running and performing that's paying you each and every month. Then go get the third one. And then do the fourth one. And then just when you think you've got it down, resist going wide. Go deeper again and go and start. Just become a master of what works and a master of what works for you. And, yeah, just be really careful of becoming a jack of all trades.

It can slow you down. When you have this dispersed focus, it slows you down. When you got that narrow tight focus, boy, it's like, it's a laser. And you can really plow your way through and make some serious progress on your wealth creation. All right. So that's going deep before you're going wide. Let's see. Oh, looks like I might have 12 today.

So I just put both of these on one line. So number 11, find the deal first. One thing that will stop people dead in their tracks and their wealth creation. is when they think they have run out of money or they've run out of access to money. And nothing could be further from the truth. If you don't have money to invest in real estate, that's the easiest piece of the puzzle to solve. Because people don't know how. They don't have the time.

They don't have the money. They're scared. Whatever it may be. Those are all different things. And they all have different solutions. But that one that you don't have the money, that's the one that stops more people than anything else. And sadly, it's probably the easiest one to solve. And here's what I mean.

There's an ample amount of money in the system. There's plenty of money in the system. There's more money than there are deals. So if you find a deal first, the money is going to find you really easily. But if you go out looking for the money, people will be like, okay, yeah, I got money for you. Go find the deal. So you're still stuck. You still got to go find the deal.

And so you'll start to discover once you do this enough that you think you're at a disadvantage because you don't have the money to invest in real estate. when really the person that has all the power that has the advantage is the one that's good at finding deals. So don't focus on anything else. Don't worry about anything else. Don't worry about who's going to buy this when I find it. Who am I going to sell this to when I find it? Who's going to give me the money to invest and fix this thing up when I find it?

Don't worry about that. It's all going to come, right? There's, um, just as you, if you're scared that you're not going to be able to find the money for your deal, lenders get up each and every day and they're scared. they're not going to be able to find an investor with a deal that they can lend their money to. All right. That's what's happening on the other side. It gives you some perspective.

All right. Bonus one. Number 12. All right. So we've got our goals on what our wealth creation is going to be. And I like to focus on freedom first. You've got two specific milestones when it comes to your freedom. You got your basic monthly expenses.

This is your first milestone. You want to get your passive income to exceed your basic monthly expenses. At least catch up to it. So now you are free. Meaning you don't have to work for you. anybody else. And this is a significant milestone. And it can be a little bit tough getting there at first. But once you get there, going from, say, 5,000 to 15,000 happens a lot quicker when you're not worried and concerned about where you're going to eat or what you're going to eat. How are you going to

keep the electricity on? How are you going to keep the roof over your head? Right. So focus on, oh, sorry, this was my point, that to do that and do that quickly, you want to use leverage. And what leverage is, it's the biggest, it's probably the thing that's going, the one hack that's available inside of real estate, that's not available really in any other investment, that's going to accelerate your progress

more than anything else is leverage. And that's where you put, say, 20% down on your investment. The bank comes in and brings in 80%. And now you own this investment, you still pay in the debt and everything. But the way that the math works is that that's a one to five ratio. right and what that means to the growth of your your finances or the growth of your wealth is it grows at five times the speed so as you're trying to hit this first milestone of say covering your expenses and then

so this is your your your um covers your expenses this is where you get free and then you've got your lifestyle ambition that's up here whether it's five to 15 five to 10 five to 25 whatever it may be doesn't matter. But to get there the quickest, refi, refy, refy, leverage, leverage, borrow, borrow. And once you hit that peak, now you want to start eliminating that debt. You want to start paying everything off. So you refy to grow, you pay off to preserve. Got it? So there were 11, actually 12 real estate investment hacks to speed things up. So which one of those? Which one of those are you going to implement first for maximum acceleration? So if you like what you heard or you know someone else that might benefit from this, feel free to share it.

And I'll see you next week on another episode, Financial Freedom Friday. Take care. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.