Epic Real Estate Investing - 11 REI Hacks to Speed Things Up! | 791

Episode Date: September 30, 2019

In today’s episode, Matt shares 11 REI hacks (plus 1 bonus) to speed things up while maximizing gain and minimizing loss. So, which one of those are you going to implement for utmost acceleration? Learn more about your ad choices. Visit megaphone.fm/adchoices

Making offers and cashing checks. What's new? What's Next? With Ashley Montaigne. Hello, hello. Ash here from Epic Real Estate, bringing you what's new and what's next. So let's get right into it and let's start with What's New. Got some big ones to share with you guys. So stick with me. Alrighty.

In the Epic Pro Academy on Follow Through Friday, Steve, he posted just a little check for $90,732. Oh man. He said this check was for a flip and he said it was an underestimated profit recently. Wow, Steve, that is awesome. I am so glad to see that you are doing so well. I just had the pleasure of seeing Steve at our previous Epic Intensive. So extremely excited that you are doing big things since. So that's awesome, Steve.

Keep it up. So Chris, he posted his first check from a wholesale deal for a check of $1,000, which is only half of what he's going to receive after signing the contract. way to go, Chris. That is a way to start making strides here in the biz and keep it up. That's amazing. I would take that check any day as well. So, Devin, Devin also posted a picture of a check that he got this past week for the amount of $7,000. And it was a deal that had previously fallen through because the buyer backed out. They ended up calling him back and he ended up closing it. So that, again, that check was for $7,000. That is awesome, Devin. Glad to see you doing big things as well.

All righty. So Chris, he posted one year ago today, I resigned from a 13-year W-2 position of focus on real estate full-time. He said the same day one year ago, today is also not coincidentally the first time he spoke with Matt, but he made the decision to join RIA Ace. And he said both have turned into major wins. He also said that he just completed the best year of his professional life, enjoyed himself immensely, has done 16 years since. He added substantially to his passive income, lost some sleep, but met a lot of great people in the process. He said, and today he is much more ahead of where he thought he would be in terms of his resources, relationships, and he said that this is just something he would have never predicted. He says, thank you, Matt, thank you Mercedes.

Both of you and the epic team have been a tremendous win for me and my family. Year two, here I come. Chris, that is just all around, just amazing. We're so happy to have you as part of RIA Ace and you're consistently posting, you're consistently working, and it's really inspiring. We all wish you an amazing year too, and we are here to help you along the way. Alrighty, a few more wins for you guys. So Jack, he closed escrow on a wholesale deal for an $11,000 profit. Awesome, Jack.

Steve, he's looking at a three-unit deal and is making an offer. Hope that goes through there, Steve. Parker, he just got a cash buyer offer for $15,000. He said he loves having a strong buyers list. Good stuff there, Parker. Great stuff there. Daniel also posted a picture of a couple of checks that he got this past week. So one was for just over 5,000.

And the other one was for $19,769. Again, he said two closings this week and he says he has two more next week. Heck yes, Daniel. That is awesome. Keep it up. So that's what I have for you guys for what's new this week. I think it's a pretty solid week in the epic community. So thank you all for sharing.

And let's get into what's next. Already, so ground and pound school signups are going to come to a close here very shortly. So ground and pound is October 22nd through the 23rd in St. Louis, Missouri. Where Jeff Garner and Matt are going to be going over how to negotiate like a ninja for deeper, deeper discounts in the real estate investing game. If you'd like some more information, go to ground and poundsponschool.com. You can sign up, you can apply, or you can just ask us more questions. Another option there for you guys is just to email us at support at epicproacademy.com, and we'll make sure to get back to you and send you everything that you need.

So that's what's coming up next. If you're interested in joining us, again, signups are coming to a close very, very soon. Well, already, that is all that I have for you guys for what's new and what's next. Hope you guys enjoy the episode up ahead, and I will see you next week. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing.

Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A-S-E-A-C. Here's Matt. We're going to talk about hacks today. What's a hack? What's a tactic or a strategy that enables speed or ease or a shortcut, if you will?

All right? So let's go over some real estate investment hacks. We're going 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. 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. All righty? 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. 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. When you're investing, you're going to need money to invest. And you need a good, strong money-making machine to generate a good income, 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 got just a $15 an hour job, you're really limited on how much you can actually put into your real estate investments, and I 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 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 their experience for that. So you don't make those mistakes.

And you get to learn like what works. 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 the relationships and the connections a mentor can bring to you, as well as the resources. Don't underestimate finding a mentor. Find one, okay? Even if you've got to pay for 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. Number four, 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, 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. 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, things Mark Twain said, 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 fixed and flipped 20 houses 20 years ago or having bought and held 20 houses, 20 years ago. I mean, 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. This is an investment. You can think emotionally about your primary residence because that's got to do everything with your lifestyle. You're going to spend all of your time there. So you want that to be comfortable, right? You want that to look nice.

You want that to be clean and perfect. But when it comes to the investments, all you're really concerned with is, I'm not 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.

So invest with your emotions, not your math. Number seven, live within your means. Now, this is a little bit of some time-honored wisdom, but when you start and extrapolate out your journey to your wealth creation, make sure that your lifestyle is chasing your income and your income isn't chasing your lifestyle. 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 investments and your income trying to chase your lifestyle to try to chase your expenses. No, keep your expenses fixed, 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 to 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 in swinging 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, 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. Now 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 RIAs 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.

It 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. 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. Okay? So you go out and you buy the house. Make sure you got it right. Okay, make sure you've 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 you're expect. are. This is when the rents do. This is what you're responsible for. This is what I'm responsible for. So you've 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 micromanage 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've 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 got it down, resist going wide, go deeper again and go start, just become a master of what works and a master of

what works for you. And Jeff, just be really careful 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. So that's going deep before you're going wide. Oh, looks like I might have 12 today. So I just put both of these on one line. 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 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. 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's going who am i going to sell this to when i 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 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, right? That's what's happening on the other side. 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 any.

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? 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 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, 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, refi, refi, leverage, 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 refi 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? The cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home board, we got the cash flow. This podcast is a part of the C-suite Radio Network. podcast, visit c-sweetradio.com.