Epic Real Estate Investing - 20 Capital Trends for 2020 with Joel Block | 1085

Episode Date: September 2, 2020

In today’s episode, Mr. Theriault is joined with Joel Block, a keynote speaker, hedge fund manager, and a venture capitalist. Tune in and find out how our guest understands the current shifting market, why the crisis is the mother of opportunity, and how you can get a copy of Joel’s 20 Capital Trends for 2020! Also, you will find out Mercedes’ deal of the week straight from Birmingham, Alabama, and where you can find more of these inspiring stories!   Learn more about your ad choices. Visit megaphone.fm/adchoices

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-Aase.com.

Here's Matt. Hey there, Epic Investor. It is Matt Terrio from Epic Real Estate. And I got to tell you, I feel like a new man today. I do because I just deleted all of the social media apps from my phone. I just deleted all of the news apps from my phone. I turned off all notifications. I just couldn't handle it anymore.

I can't. It's driving me nuts. I don't even know who I am right now. I mean, with the politics and the social injustices, and yet mostly, it's probably the pandemic stuff that's driving me the craziest. I mean, are we following the science or not? Because the science keeps coming out. It keeps getting updated.

Scientists continue to do studies and they reveal new information. And, you know, we're supposed to like listen to that, but it's all quietly swept under the rug. You know, I went to my, my own doctor, had my, you know, I just turned 50, so you had to do that, that 50-year-old manly checkup, which is, I've been dreading, I think, almost my entire life since I knew what it consisted of. But I went, and my doctor is a man of very few words, and he, I had asked him his whole opinion on the COVID thing and everything, and he went crazy.

Like all of a sudden he had lots of words to share. And it was pretty amazing. I mean, there was a day, like, for example, just, and this is from my doctor. All right. So this is one doctor's opinion, but it is a doctor who doesn't, it's not standing on some platform and trying to raise money or gain votes in any way. Just he and I in the room together. And he had said, you know, what's kind of crazy, you think something certainly screwy is going on because there was a day. I don't know, he was mentioning a day where we had 7,000 new cases.

And this was a few weeks ago, maybe four or five weeks ago he was mentioning. We had like 7,000 cases reported here in Nevada. And he goes, I know all three labs where the testing is done. And if there were 7,000 positive cases, that means there has to be 77,000 tests, at least, if you go per the national rate. And he goes, they don't have the capability to run that many tests. in a single day. So something screwy with the numbers is what he was saying.

And then he went on to say that, you know, the other part that our media, both sides, by the way, choose to hold back is that when you test positive for COVID-19, you are asked to come back and retest every week until you test negative. and it takes about three weeks for the test, even if you're over COVID-19 faster than that, which is very possible. And it's highly likely. It's, you know, they say it runs its course for three or four days.

They want you to quarantine for 14 days to keep you, to be just to be safe. But you can still have, he said, the COVID-19 proteins in your nasal passage and test positive up to three weeks. And so what he was saying is every time you come back and test, that's recorded as a new positive. So he said, you could very easily and probably conservatively

take the national numbers of positive cases, positive tests, and cut that in half. And you'd probably be closer to the real number. And I was kind of dumbfounded by that because I hadn't heard anything like that. I hadn't even read that on social media. I hadn't seen that on Fox or CNN. I hadn't heard that from a friend or a friend of a friend

I know this doctor that knows so-and-so. Like I heard this straight from the doctor's mouth. It was the first time I heard it. And I thought that was very interesting. And, you know, just talking about the science, you know, you can't gather in large groups to worship your God. You can't go to church in a large group. But you can gather in a large group to burn Bibles. Yep, that happened.

I saw it. I can't believe it. That seemed so old and antiquated. and just like almost prehistoric and uncivilized and neandertholicish, if that's even a word. You can't gather to support your presidential candidate, but you can gather to march for social justice in even greater numbers. The virus is contagious regardless of what your mindset or your political affiliation is. The sunlight has been determined that it kills the virus. sunlight kills the virus, but the beach.

The beach is closed, can't go to the beach. The other crazy thing is you got to wear your mask if you're in the ocean in California, but you can take it off in the pools in Nevada. Apparently chlorine kills it, I guess, and saltwater helps it thrive, you know? It's just ridiculous. This is the other one. Under the age of 14 years old, there's a greater possibility of dying from influenza A or B than there is COVID.

So influenza A or B that we deal with each and every year, I've got a nine-year-old son, he gets sick every single year with the flu. He's got a greater possibility of dying from that of which he's had every single year than he does of COVID. In fact, per the CDC, right from their website, they just updated it this weekend. I'm reading it right from there. The number of people under the age of 14 that have died from COVID, it's almost identical to those that have died from the flu this year.

Just this year, not 2019, not an average extrapolated out over a decade or anything like that. No, just this year, the number of people that have died from the flu is almost exactly the same as died from COVID. It's like five more have died from COVID than the actual flu. Five, yep. They got the stats and you kind of have to do some addition and subtraction to figure out the actual. number, so it's five is the difference. So they're the same. And we deal with the flu every single year, but we're debating about whether we go back to school or not. Then yesterday, the CDC quietly updated their COVID pages. They got a whole new design and everything. It's interesting.

And I only go there now. I don't listen to anybody else or anything. I just go to the CDC. Who knows, maybe in the future it will be determined that that was the big sham. I don't know. It's really tough to tell. Nothing was surprised. me this year. But data is released that their stats have says 94% of all COVID deaths. 94% that's like almost

all of them were accompanied by a preexisting condition. So only 6% of the COVID deaths were from COVID alone. And it gets swept under the rug dismissed as a conspiracy theory by

QAnon. I still haven't Googled them. I don't know who they are. Apparently they're evil. I'm not supposed to support them. I don't even know what they stand for. I imagine there's something like Antifers. I don't know. But the information I'm reading to you is right off the CDC website. And my whole point being is, are we listening to the science or not? And that total, those daily conflicts of the social media and news notifications on my phone was driving me crazy. I got a feeling on on November 4th, data like this will come to the surface. and I think I'm betting we're all going to be back to some resemblance of normality,

November 4th, November 5th, or it's going to happen really quickly in November. So I'm saying that here. It's documented. It's recorded. We'll see if I'm right or if I'm a total imbecile because I'm not that smart with this stuff. I'm not a doctor. I'm just reading what we got here. I want to make the right decisions.

I want to do the right thing. Give me the data so I can act accordingly. But God, I hope I'm not. right, I hope we get back to normal year by November or at November, it's certainly not going to happen before then. That's really, really clear. The powers that be aren't going to let that happen before the election, that's for sure. But if I'm wrong, gosh, you're really going to wonder what's the real agenda of our leaders. What's the real maturity of our leaders? What's the, are they really that evil, right? Are they really that hungry for power? You know, because I watch, I think the veil

is really starting to lift a bit for how the government is run. And I think the public is, I think we're all really getting a peek at how things really work. You know, and there's just so much he said, she said going on. But it's all on full display right now. They're getting, they're becoming less and less competent of concealing it of how things are run is what I'm trying to say. It's on full display for everyone to see. Make sure you watch both channels.

I watch both channels. I want to know what both sides are saying. Like what is CNN saying? What is Fox saying? Right? What is MSNBC saying? I want to see what they're both saying because they're both two very different stories going on there. And if you're only watching one, I can see how that could be really harmful.

It's kind of harmful to watch both. It's painful sometimes. And like I mean, like I said, regardless of whose side you're on, the hate for one another. If you watch both channels, you'll see it. The hate for one another is greater than our leaders love for the people, the people they serve, the people that put them in office. You know, I thought about this the other day. Just think back when you were 14 years old. Well, freshman, sophomore in high school, I think.

Would you have imagined that adults would be acting this? way? I mean, we all thought in high school we were going to be adults and act a certain way, right? Not act worse, like three-year-olds. I mean, they're really, I feel like the politicians are just one degree south of saying, I know you are, but what am I? Anyway, nothing we can do about it, but vote, right? That's what we can do. We can vote. And then we just have to deal with whoever wins and play the game by the rules of whoever gives us the rules and what rules they give us. But nothing we can really do between now and voting day.

So I just decide I don't want to be bothered by it. And I got me and my family to worry about. So no social media apps for me, no news apps turned off the notifications, at least until November 4th. That's my commitment. But I got to tell you, in just what, 48, 72 hours, I feel pretty darn good. I mean, I even had to go and remind myself what had me so upset in the first place to even start this podcast. And I've never talked about anything like this ever before here.

But let's get to some real estate stuff, all right? Let's get to some making money stuff. This is the epic real estate investing show. It's where I show people how to invest in real estate with an emphasis on retiring early. And I do this show because I know that most people are living a life of financial saccharacterial. and betrayal. Gosh, betrayal feels like the operative word for the day, doesn't it? But we've built a system here that creates an opportunity for your money to work harder for you than you did for it. How does that sound? Saving you and your family from a lifetime of financial worry. I know real estate works.

It's worked for more people than anything else than any other investment vehicle than any other industry, any other career. And I think everyone deserves a chance at that. And that's why I'm here. If this is your first time here, really glad you found us. If you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. Really appreciate that. You're the absolute best for doing that.

And yeah, thanks again. One more note on that. I thought I was done, but I was just thinking about something. I've been listening. I think I've shared here before that I've been a fan of the Adam Carolla podcast for a while. and it's just kind of my escape. Like, I really don't listen to any other business, what you call it, Sanymore podcast, no real estate podcast.

When I listen to a podcast, it is more for an escape for me. Like, let me just get my mind off of work, off of real estate, off of money, off of stuff, right? And I know that Joe Rogan has kind of taken over Adam Crollis position as the number one podcast. It's been a while since Adam's been up there. But he definitely, I mean, he's in the Guinness Book of World Records for the most downloads. Joe Rogan's got to be hot on his heels, though, I think. But I listened to him because he's been so popular, and I watched his Netflix special the other day. I don't know, maybe it was about three or four months ago, actually, not the other day. And I just wasn't laughing too hard.

Like, I was like, I don't get it. And so I listened to a couple of, tried to listen to a couple of his episodes. And I wasn't interested. But then I started listening again. I said, let me give it another chance, because I always get a little concerned when things are super duper popular, but I don't see it. I feel like I'm missing something. And it makes me feel like it takes me back to the music business where this internet thing was coming along and was going to change the way people consume music. And I was like, you're crazy.

No, it's not until it did and it put me out of business. So I kind of always had that fear moving forward ever since then. Lesson learned. But Joe has had several doctors and stuff on his show and saying that, you know, just just real doctors with real opinions without political agendas and just spitting out the facts and the science. Because that's what science is. That's what it's numbers and tests and results and stuff like that. And I wanted to share this because he's shared it a million times and he says,

I even bet my audience is getting sick and tired of hearing me say this. But it's really important that you hear it. And so I thought, well, you know what? I have a little bit of a platform here. I've got you. I've got you as a captive. audience. And I want to share this with you as well because I think it's good news. And it actually echoes something. It was very similar. It wasn't an exact words, but very similar to what my

doctor had told me during that point when I was just telling you about. But vitamin C, take lots of vitamin C. It's like the wonder vitamin out there. I take 2,500 milligrams a day. I remember being sick a few years ago when I had a client that was a nurse. And she had told me it's really difficult to OD on vitamin C. You can maximize. that and it's probably the most effective thing for fighting a cold. That was back then. But apparently, according to the specialists and the experts that Joe had had on his show, it helps with COVID as well. Just builds the immune system. You have to strengthen the immune system. The other thing that they, the one of their, his doctors decided was that they noticed,

I forget the stats. They were overwhelming and I don't want to miss say them, but if I'm a little off, I'm just a little bit off. But you'll get the point that I think it was 86 or 87% of the people that have died from COVID, whether they had pre-existing conditions or not, or regardless of their age, were deficient in vitamin D. And those that have recovered, that were in the hospital and recovered, actually had sufficient or a surplus of vitamin D. So vitamin C, vitamin D. Really important. Build the immune system. And not one athlete, which he pointed out, not one professional athlete, as many of them has got.

out in COVID. None of them have died yet. And God willing, they will not. Because we've had enough death for the year. But what that says is exercise. All right. So vitamin C, vitamin D, and exercise. And it might not prevent you from getting COVID. But as my doctor said, it'll keep you out of a hospital. All right. Cool. Now let's get to real estate. Sorry to got for a second tangent there. But let's talk about money stuff. Do you need money? Do you need capital for your real estate or capital for your business? How about capital for a post-COVID-19 future, of which we're all looking forward to, very greatly, I'm sure. Then today's guest could be the very person that you've been looking for.

He's one of the smartest people I know when it comes to raising capital and putting it to work. I mean, between Eddie Speed working the numbers and this guy work in his numbers, those are two of the smartest people I know, and I'm really, really honored to call them both good, close friends. But today's guest, he's a keynote speaker, hedge fund manager and venture capitalist, and he taught me the secrets, the secrets of Wall Street. He taught me why hedge fund managers on Wall Street are among the richest people in the world and how to take those practices, how to take those principles, and how to incorporate them into your real estate investing.

So please help me welcome. back to the show, Mr. Joel Block. Joel, welcome to the epic real estate investing show again. Hey, Matt. How are you? I'm doing good. You know, it's a very different time right now than the last time we spoke. God, it's a different time than anybody ever spoke.

I mean, every day it's changing. Every day. Yeah, exactly. I mean, every day we wake up to something new, a new development, whether it's socially or politically or financially. who would have thought we'd hit an S&P 500 record yesterday, right? That could not have been predicted. You'll tell you something.

The Democrats can't be happy about that. Right, right. Cool. So bring me up to speed. What have you been doing the last few months? What does business look like for you? What are you thinking about? Well, you know, I'll tell you saying interesting.

The fund, you know, real estate and investments right now are sort of flat because people are concerned that tenants won't have the money to pay their red. Cities are propping that up and they're putting cities and states in certain parts of the country are putting these eviction moratoriums in place so that landlords can't exercise their rights, get their property back, and as they should, by the way. I mean, it would be unconscionable to evict people under these circumstances. And let me tell you what I'm talking about besides the pandemic. If one or two people is a knucklehead and they can't pay their rent, certainly you have to recover your real estate.

But when the whole world breaks down at exactly the same time, because of no fault of their own, we're not talking about lazy people who don't want to pay. They just, they lost their jobs all on the same day practically. The world has to take care of those people. You know, we have to, and I'm on the right side. I'm a fiscal conservative, you know, but we have to, you know, take care of people. It's what it's not their fault. 100%. 100% right.

But the government has done a pretty poor job of managing this process. And so what they've done is they put the burden of a lot of the downside on the individual people. So what they've said is, okay, tenants, if you can't pay, no problem at all, landlords can't evict you. Well, the landlords are not large government institutional kinds of people. They tend to be people like us. individuals, they might be retirees, who were smart, they saved, they socked it away, they put stuff into for the rainy day fund and they bought a building, which they want to give to their kids someday or whatever their plan is. That's how they live. So when the government

says you don't have to pay, that retiree now doesn't get their rent. And what should happen is that you should go down the path, what you say to the retiree is, look, we're going to give them vouchers like Section 8 vouchers. So you get maybe it's 80, maybe it's not 100%, but it should be something. We're going to give you something for your red, and then you can pay the bank, and then the bank can pay the state, then the state can do, you know, it goes on and on and on, because the deep pocket is the one that has to really absorb this. And nobody wants to absorb it naturally.

Of course, no one wants to. But it has to be the deep pocket. And the only deep pocket is the feds. Even the state governments aren't big enough to absorb this problem. Right. No, it's got this trickle up aspect instead of the trickle down economics. Yeah, and so, you know, but the thing is that because a lot of this has fallen on individual people, you know, these are more substantial people that can keep going for six or eight months, 12 months.

But after, you know, there aren't that many people in our world that can keep going for much longer than six or 12 months, even if even six or 12 months. Right. Then they start running out of money. And when that happens, all hell is going to break loose. So I think that the first quarter next year is going to be a really, really bad quarter for the world. But we're not talking to the world on this podcast. We're talking to real estate investors.

And I'm just going to tell you, and you write this down what I'm about to say, and that is crisis is the mother of opportunity. And it's rarely ever been a crisis like this one. And there will be more opportunity coming up in the future than probably ever before. where there's crisis, there's cash flow. It's always been my little. Well, I don't know if there's always cash flow, but there's a certainly opportunity

because what happens is there are going to be these people that own buildings that aren't making their mortgage payments and the banks are going to get tired of waiting because they're not going to keep making deal after deal or extensions or whatever their situation is and they're going to owe payments to somebody or they've got life insurance payments they can't make.

or they've got other obligations that they can't make good on because they don't have their regular income flow from all their other activities. And, you know, I'm just thinking that we're going to see a lot of really unexpected distress come here in the next several months. Yep. No, I've been talking about this here on the show for probably the last three or four months. And like what you said when you started was, you know, it's been relatively flat. In fact, if you look at the retail real estate market, it's actually pretty hot. in most parts of the country. There's still multiple offers on every single property that come, at least the new listings that come on.

But what I've been looking at, and this is kind of say to compound maybe what you're even talking about, or maybe you've already calculated this, you know, when we're looking for motivated real estate sellers, motivated sellers, you know, we're looking for those life's challenges, life's problems where that are,

you know, they're bigger fish that they got to fry than trying to get full price for their house sale, right? They've got some other thing that's going on. That's more important. So we're always talking about the four Ds, the death, the disease, the drugs, and the divorce. And then, you know, obviously there's a huge amount of unemployment and job loss. But then you look at the bankruptcies are on the rise.

Those divorces are on the rise. The suicides are on the rise. Like all of these things that cause people to sell their house quickly in a discount in unconventional ways are starting to build up. Well, listen, the Ds are good ones. You know, you got distress and you got disaster. I mean, this is just an unmitigating. disaster. So let me let's go through a couple of other. I'm going to add that to my D's by the way.

So I need a disaster on there too. I've been looking for a good word that meet for job loss that starts with a D. Yeah. How about how about done employment? Dun employment. I came up with dislocation, but I don't think that fits. But go you know, and again, there's nothing funny about this. I mean, you know there's a long time friends, you know, I mean, you know that I I'm a futurist. I think about the future. I look at the future having been in venture capital. And if you don't mind, I'd like to share with your listeners how I look at the future

and how professional investors make their bets so that they can do the same thing. I mean, and part of this, Matt, you know, as you know, I built your fund and we built hundreds of funds for other people. We're getting tons of calls for funds now. Why? Because since crisis is a mother of opportunity and the opportunity is coming up here shortly,

people want to have their money organized to be able to pounce. Because if your money's not organized, If you're not ready to buy, don't even bother looking. I mean, that's kind of how we see it. So let's take a look at what's going on here. So the downtown areas of most of the cities in the country, almost every city probably,

companies are closed because they can't have thousands of people gathering in buildings because of COVID. So what's the impact of that? I call that SWIT. So what's the impact of that? SWET. Well, less cars on the road. Well, that's, you know, probably a good thing.

less pollution and less traffic, you know, and that's good. Now, who's that good for? Well, it's good for us because there's less people. Who's it bad for? Well, probably bad for oil companies. They're not selling gasoline. Certainly bad for the city. They're not giving out parking tickets.

They're not giving traffic tickets. You know, a lot of those things are not happening. So let's look at real estate impact. So let's say that there's no people or some people start coming back into these cities. Well, the employees are going to say to the boss, you know, I kind of like working out of my house, not every day. Maybe how about half the time? Would you go for a half the time arrangement?

And I think this is going to be very common in companies. And so they say, okay, we'll have an A team and a B team. The A team's going to come in on Mondays and Wednesdays, and the B team's going to come on Tuesdays and Thursdays and who knows what happens on Fridays. But what does that mean? Right. You see what I mean?

Yep, totally. I said work from home Friday. That's what I was. Yeah, there you go. So maybe two or three days they're home or whatever it is. So what's the impact of them doing that, cutting the people down and only coming in the office in the future half the time? Well, what that means is half as many people are downtown.

So the company needs half as much office space. There's also half as many people downtown eating at the restaurants who are downtown. So half the people are going to go to those restaurants. So a lot of those restaurants aren't going to make it. The demand for real estate downtown is going to get very, soft not long from now as this starts to come back. And that's going to happen June of next summer or so. Because everybody's pushing this thing back until January,

but it's not really going to happen in January. It's probably another six or ten months. So the second half of next year, we're going to start to notice a lot of softness in real estate for that reason. So we're going to see all the industrial, the retail, the office in downtown areas start to get soft because this demand is going to go soft. But people are still going to be spending money.

So where are they going to spend the money? If they're not spending the money in downtown areas, the shuffle is going to move that money into the suburban areas where people now live. So they're still going to want to go out to lunch. They're just going to go out to lunches in their neighborhoods, not in their downtown areas. So the demand for suburban real estate is going to go up. So now it might be a good time to start buying some suburban stuff. And this is already being seen in places like New York.

People are fleeing from the city. I mean, man, imagine you're the CEO of one of these giant companies in New York. And you step outside on Fifth Avenue and you look up at your 50-story building and you're going, boy, I'm sure proud of this building. And then you think to yourself, my God, I'm really an idiot. I've got 50 floors of people here. And the truth is, I only need about four floors of these people. I need my executives and I need my best salespeople.

the rest of the people, I'm going to move them to New Jersey. Let's move these people to a cheaper place at one-tenth the cost and let them work there because they're just shuffling papers or whatever they do. And that's not being disrespectful. I'm just, you know. You see what I'm saying? I think that this phenomenon of people migrating to the suburbs

is going to happen in cities across America, including New York City, maybe the most populous place in our country. Yeah, I mean, just the migration from New York to Florida is significant. The migration from San Francisco to Texas is significant. And, you know, they're saying the same thing as the migration from downtown Seattle, downtown Portland.

Totally understandable. And if you stop and think about it, companies now, they used to hire people that were within 30 miles away. But all of a sudden, they're going, you know, we need a crackerjack salesman here in our, in our Chicago office. And we can't, we don't want to pay a guy who's used to living in Idaho. But he's the best guy there is, and he doesn't want to move to start paying for Chicago. Right.

But that guy can now start working. It's not that he couldn't do it before, but the companies didn't believe it was possible. And now nobody can say it's not possible anymore. They can't say it. It just isn't a reason. Nobody would believe them or tolerate them saying it's not possible. So everything about real estate is changing, and the impact on all of us is incredibly dramatic. And, you know, where there's changes, there's opportunities.

opportunity where there's, you know, crisis, there's opportunity and changes all around us. Mm-hmm. Yeah, I've been talking to, I don't know, recently. I was kind of writing it out and just kind of waiting for this thing to blow over, but then I'm like, oh, maybe this thing isn't going to blow over as quickly as I thought it was. But I've been talking to some smart people. And one of the ideas, and this is what actually inspired me to reach out to is because I've been a little bit more active on Twitter lately.

It's a place where I can vent a little bit more without all my personal relationships. relationships passing judgment on me. I don't care for me. I don't like the mean people that I know. But I just need a vent. Like I don't want to get in arguments. I just want to say stuff. But I follow you obviously and you have this thing on the 20 trends for coming up, right? 20 business trends. Yeah. Yeah. And I was like, okay, anything that has a list on it and with trends that has a future, like I'm all interested in it. So let's come on. Let's talk about this. But the couple of people that I was, I talked to, one of the things they said, they kind of point out this big migration that's going on right now. And then I said, I was kind of complaining

and kind of confiding that I just kind of want to get back to normal. And he said, we're never going back to normal. And I don't know if that's true or not. He doesn't know if that's true. I'm just another guy like you and me. But he really thinks that we are not going back to normal. and the fact that we've moved into this digital age and everybody is being trained right now to work virtually. Everyone is seeing that it's possible. Everyone has seen that it's still productive. And companies, you know, there's companies that are hurting,

but there's companies that are thriving right now. And it's 100% of virtual-type environment. So that was one thing that I was like, oh, well, maybe we should start getting used to doing real estate virtual. So we're kind of making a trend towards that way. Well, so here's what's interesting, is that the concept of normal, and we're going to come get back to normal. So we're just going to go back to exactly how it was.

That is not happening. Right. That normal, what's normal before is gone, and there's some new normal that's going to settle in. And it's going to be much more dependent on technology, virtual, because everybody's skills have gotten better. Everybody's fears about these technologies are starting to go away, not totally, but they're starting to go away. And so the world is going to look different going forward. And depending on what industry you're looking at, you know, we can do an analysis. But let's say the hotel in the conference industry.

I mean, you know, they used to send, you know, teams of people, armies of people to these hotels in Vegas where you are, Matt. And they would say they ran out giant ballrooms and they'd spend millions of dollars and all this stuff would happen. And that was great. But I think that's over. I think what they're going to say now is, you know, we don't need to send all of our people to these conferences. What we need to do is send our executives and our salespeople to these conferences and our more administrative-oriented people, the non-salespeople and non-revenue people. We can have them do a two-day Zoom program or maybe do some local meetings. But even for the executives, they're not spending four days in Vegas anymore.

What they're going to do is they're going to say we're going to do a two-hour or four-hour before program on Zoom. And we're going to go have our two-day meeting in person, all of us together, and then a two-day follow-up on our couple hours on Zoom follow-up. So what does that mean for the hotels and the food and all the other things that happen in places like Vegas? Is that they're not going to sell, you know, millions and millions of dollars. They're going to sell at maximum. They're going to sell half the number of meals to half the number of people. So that might be 25 percent. So half the number of days, half the number of people.

might be 25% of what they were doing before. And that's going to be their new normal. I mean, so they're going to have to really think about how they're going to take a bite on this new situation. I'm a customer of the Tropicana, you know, and they've been sending me these, we're reopening on September 1st and all this other kind of stuff. And with every passing day, I don't think people are taking them up on their offer. The offer is getting juicier every day I wait. So long you wait, the more juicy it gets.

I don't think people are rushing back. People are nervous. Yep. Yep. I 100% agree. I was looking through your 20 trends and there was something here and I didn't have time to circle it. So let me just do this. You have like these 20 trends around financial capital and human capital and intellectual capital and invisible capital.

What was the one that you had had here? What you know about money matters. Oh, talk about the new normal. That was it. where you're talking about constant disruption is the new normal. Yeah. We wrote in here. Well, maybe we just expound on it since we're kind of talking about that already.

Well, did you have a particular question about it or just in general? Oh, I just, you know, I want to share this report with everybody that's listening. I just think we talk about a couple of them and they can get the whole report themselves later. So here's the deal is that the world is changing fast. Technologies are changing fast. People are learning fast. Young people are quite different from older people. You know, and I hate to say, Matt, we fall into the older people bucket.

You know, you may not feel that way by yourself, but, you know, demographically, we sort of are now. So the world is just changing fast, and the amount of change is remarkable and the speed of change. In the old days, it used to take years and years and years for people to find out something new. years and years and year. Now the whole world finds out about everything in 15 minutes. And that doesn't mean everything is adopted in 15 minutes, every new technology. But things move so fast that we have to be prepared for constant disruption. And if we're not prepared for it, we're going to be subject to it. You know, my whole business model, my whole mantra is disrupt your competitors' future

is get out in front of this stuff, figure out ways to, you know, be able to be able to be, on the offense, not on the defense. Because there are kids in garages all over this country and around the world that are aiming torpedoes at your business right now. Now, are they aiming at real estate? Maybe not so much because that's an investment business. That's not a traditional operating business.

But there are people who are thinking of new apps to get out in front of what you're doing. They're thinking of people. There are people who are figuring out new ways to aggregate title data. I mean, people bring deals to me, I've looked at a lot of stuff and they're looking at all kinds of different ways of reorganizing tools that give certain people advantage. And you have to figure out which tool is going to be the right tool to adopt.

In a certain way, the world has gotten a little more complicated because there's just so much more data. And part of the reason for this is artificial intelligence. The more crunching that can happen by a computer, the faster a lot of basic things happen. and that's part of what we're seeing here. Right. This guy in one of my mastermind groups, really smart guy, and he said like to kind of the,

when we went into quarantine, the big catchphrase was, now your business has to pivot. And this is kind of stemming off what you just said. But he was saying, like, you can't pivot unless you have an anchor point.

And everything is kind of constantly moving. And I kind of, like, that's why that one little. Let me, it's funny that you bring up the word, and not to be argumentative in any way. But I don't like the word pivot.

Because pivot means you put your foot on the ground and you spit around in a circle. I mean, that's not exactly the best metaphor. That's kind of the word people throw around. We don't have to spin around a full circle. Maybe it's kind of go off 10 degrees. But it's really hard to pivot if you can't cement your foot in the ground. That's right. So here's the point.

It's not about the media. it's about the message. You have to know where your stake in the ground is for sure. You have to know. Because otherwise you can't figure out what direction you're going to go in and what you're going to change into because you don't want to completely change. If you've got a lot of training and experience in residential or commercial real estate, you don't want to go into industrial or you don't want to go into stocks and bonds.

I mean, you want to do something that's related, but you might have to do it in a better, smarter, faster way. I always think about that as the insight. There are people who have the inside track. I know you've got the inside track on a lot of the stuff that you do. I mean, I know you're an expert. That's what people go to you for. I've got the inside track on how money works and how you get it, how you move it, how you place it, how you price it, all the different pieces about it.

And if you don't have that stuff organized, then you're just not going to be successful. So you don't want to turn upside down, but at the same time, you need to be prepared to be flexible to make change. it was the other thing that I was just it was occurring to me like I'm trying to listen to you and not forget what I was going to say at the same time and I listened to you more than I was remembering what was the other thing that he had shared with me like

to go off of that like you can't if you don't have this anchor point you have to decide on the outcome and don't be so attached on how you get there because there was an old way of doing things to get to where you wanted to be and you could just kind of look at what someone else was doing,

copy what they did, do it in the manner that they did it, and there's a good chance you'd have the same type of outcome if you did that. But now, like, that's not necessarily the case or that says prediction going into the future was that, you know, you know you want the outcome, but maybe the path to get there is going to be different. So you have to kind of keep an open mind around that.

So constantly, like, really evolving. You know, we've been saying this for a really long time that the world is changing so fast as more information being printed every day than there was, you know, all year last, 20 years ago. And we hear all those types of stats and those sayings and those phrases. But it's really like now we have to start changing as fast as the information. Well, or we have to be able to decide what things we need to change and what things we need to reorganize.

You know, because you can't change everything every minute. So, you know, what things do we need to react to, respond to, learn from, you know, And that's the hard part, is figuring out which things require our attention. Because not everything does. There's a lot of shiny objects. I learned a long time ago that as much as I love gadgets and stuff, I really need to not play with gadgets too much because they just waste a lot of my time because I never get good enough at them to make that part of my livelihood.

And so if I want to just play with them on the side, you know, like it just does a hobby, that's fine. But my business is what I do best. And that's, I learned that. That's a hard lesson to learn. Right. And that's people and money. That's your business. Absolutely.

Yeah. Right. So that's a big concern for a lot of people moving forward is getting the capital to take advantage of the opportunities that are coming. And this is kind of how you and I connected because that's what I was thinking about and this was several years ago. But I'm still thinking about it now. And I know it's probably on even more people's minds right now.

So part of your 20 trends for 2020 revolve around financial capital, the first three right at the top. So what are the trends there? What do you want to say to someone to help them prepare? Well, let me put it like this. I'll start by saying every smart person, and that's not just like 1% Wall Street. Every smart person in the country, so maybe that's the top 20 or 30% of the people in the country. People have some memes. They're making a couple hundred thousand dollars or a hundred or two hundred thousand.

They make them good money, do whatever they're doing. They all know that crisis is the mother of opportunity. They may not think about it like a professional investor does, but they're sitting wondering, I'll bet you that there are really good deals out there. I don't know how to get them. I don't know how to do them. I don't know what to do, but I sure know money's being made right now. Because people know, this is when money moves, changes hands.

They just know. They don't know how to do it, but they know. So what do we know? We know how to make the money and how to find the deals. And so these people are looking for the opportunities. that we bring them. I mean, there is plenty of money out there,

and there are plenty of people who are sitting around saying, I wish that I could find somebody that did deals. I wish I knew, and of course, you're all sitting there and all you listeners are sitting there going, God, I wish I knew somebody had some money. Well, you know, there are ways to find them.

I think of those people as yellow cars. The reason you're not finding them is you don't know how to look for yellow cars, but, you know, when you see a yellow car, if I told you to start looking for yellow cars, you'd see one every day. You know, right now, maybe you don't see it very often, but you'd start seeing them every day. And if you understood what an investor looked like and how to talk to them, how to ask some questions, you'd start finding them every day.

And then you catalog them and you go back to them when you have a deal. And there's a method to it. You know, it's not a random wake up in the morning and beg somebody for somebody like a guy stand on a street corner. That's not how professional investors get their money. But if you do it properly, what you'll find out is that there's a real rhythm to it. And it's no wonder that some guys managed to raise $50, $100, $300, $300 million, and other guys can't raise, you know, $100. Mm-hmm. Mm-hmm.

Well, that's what you showed me how to do. And that has passed on through me to the audience. We've been talking about that over the years and exactly how you taught me. And you kind of just opened my eyes to why fund managers are some of the richest people in the world. and you've brought that down to where the average person can kind of take advantage of that, particularly someone that has some expertise and knows how to put money to work inside of real estate. So that's why we work well hand in hand. And, you know, did we say this while we're recording before we're recording?

But you're talking about your a customer of Tropicana. So you got an event coming up, right, to help. Yeah, the symposium, listen, we do it in April and we do it in October. And most of the time it's in Las Vegas. This year, of course, it's not. And so we're not in vacant this year. No, well, we're not, no, we can't. Going to do it virtually?

Yeah. So what we're going to do is we'll do it over, over several weeks, a couple hours of time in October, probably bleeding a little bit into November. And we're, you know, we're the same, we're going to show people, let me show people the inside track about how the money works, how you price it, how you get paid,

how you raise it, pay a structure your deal, you know, how the investor gets paid, what happens to them, how you do, how you protect yourself, how the laws work. I mean, all the different pieces of this. And, you know, a great percentage of the people who take the program end up building funds or structures and then they raise money. And we've had a lot of guys make a lot of dough, as you know.

Right. Yeah. So I'd be happy to be your poster child for that at the moment. My question, let's see. Yeah. I mean, between you and you know Eddie Speed, have you ever met Eddie? Of course. Of course.

Yeah, of course. Yeah. Between you and Eddie Speed, I've learned so much about money. Like, it's just, it's, and you. another phrase that I've said over and over again since that I think we very first had dinner together. The money is in the money. The money's in the money, man. That's it.

Everybody thinks the money is made in the real estate, but it's not because the money is made by controlling the cash. And when you can control the cash, then you can go buy all the real estate you want. So the first thing that I do is for people that come to the symposium, whether live or now this virtual one, is I take them out of the real estate business and I move them into the money business. So I said, you know, literally, you are now going to be in the money business. And you think about money and you think about money all day long. And you think about where it's going to come from. How you're going to move it?

What you're going to do? And, you know, money isn't any different than oranges or bananas or potatoes. It's a commodity. And Wall Street is in the business of moving that commodity around, just like farmers move around potatoes. So the guys on Wall Street are no different than farmers. They really are not. I mean, they're moving a commodity. So when you talk about the money business, what is it?

It's they price the money. They sell the money. They rent the money. They get the money to come back. They recycle it. They move it here and there. It's a rather complex concept. But the truth is, the reason that most people don't make any money, they can learn techniques about wholesale and other kinds of things.

But the reason they never really make big money is because they don't understand the most important tool in all of real estate, which is the money. So the symposium that you're having, you do it twice a year. who's the ideal person? Who's the one whose ears should be really parking up? Can you describe that person? It's somebody who knows how to either do fix and flip, and they've done three, four, five of them successfully, so they've got a little track record.

Because if you've got a little track record, you're going to be able to raise some money. If you're somebody who has bought a little apartment building, you see you've got a little track record and you can demonstrate that to some investors, you're going to be successful in raising money. If you're somebody who has built ground up, If you have anything that you've done that you can demonstrate that you've built something,

then you're going to do fine. If I said to you, if I gave me a million dollars today, what are you going to go do with it? If you can't think of anything to do with it, then you're not a candidate for us because you are going to end up with some capital. And if you can't think of anything to do with the capital, because you don't have any deal flow, that's probably a problem. Yeah, I can vouch for that. But it was, you know, man, the funny thing is there are people who you tell them that

here's a million dollars. They go, I'm not really sure what I would do. Yeah. And most of your listeners are going, we'll give it to me instead, you know, well, fine. Come on out. Right. You know. Right.

It wasn't I didn't know what to do with it. It was that I had it. And now all of a sudden I felt compelled to act. And I felt like rushed. And I was like, and then as the time goes by, then the time is ticking on the money. And I was like, so it took me a minute to warm up to that new way of doing business. But yeah, it's different. different. Yep. Yep. So if anyone was listening and said, hey, I think he's talking about me,

he's describing me. I wouldn't mind checking this out. How would they get involved? How would they reach out to you? Well, go to the website, syndicatefast.com. Syndicatefast.com. Register. You'll get it on our list. Just start getting videos. We're not selling a bunch of stuff. There's no junk or anything. It's just videos and really, really high quality videos about how the money works. And we've got a giant library that you can have for free it's probably 150 videos in there but maybe the most important thing because we're so close to the symposium on that page after you register there's probably a place where you can get on my personal calendar if you're a serious person that's thinking about getting involved raised somebody doing the kinds of things that we do

i'll contribute some time and talk to you uh no obligation just for free and let's see if if this is going to work for you let's see if you're the right kind of person to make it happen Perfect. That's very generous of you. Thank you. And for anyone that's listening, that was a huge invitation. So please take Joel up on that if you are serious about raising money this way. What was the other thing I was going to say? Oh, can we give out how to get this report? Because I printed it all out for myself, as you can see here. Yeah. Yeah. I got to the first few pages. I wanted to be prepared before we started talking. And now I'm like really into it. And you're one of the smartest guys I know when it comes to money. So I'm really looking forward. to finishing it. If someone wanted to get a copy of this, 20 trends for 2020, how do they do that? Go to, take the phone out of your pocket, open the texting app, type in the number 72,000, and then type in the word asset. So text the word asset to 72,000, and the system will, it'll ask you for your email address, and it'll push it right through.

Perfect, and that's exactly how I got mine. Okay, so no tricks. Asset with two S's, right? A-S-E-T. Perfect. Well, Joel, it's been a pleasure. Let's stay in touch. One thing I had, oh, look, one quick question. It's actually a little self-serving as we're talking about disruption is the new normal. So many of the different strategies, not pretty much all of a, yeah, two out of three of what I have built my fund for have been disrupted.

So can, can, if you set up a fund and. then you have a change of your mind midway. Can you restructure that fund without having to go through a whole recreation process? You don't have to go restructure everything related to the fund as long as the investors are okay with it. So, you know, if you go get some permission from your investors and say, look, we started that we are going to originally buy houses, but now let's start buying something else in a different geography. You know, if the majority of the people are feeling good about it, you're bigger investors, I'd say, I'd say you can probably go for it. The fact that it's been done one way, doesn't restrict you.

you know, but I'd say you got to get some buy-in from your people. Super. All right. No problem, man. Relationships are good. So, very good. All right. Well, that's it, Joel.

Thank you for that. And I will see you next time. Hey, man. See you next time. Well, good luck. Say a little of your family. We'll do. Bye-bye.

Oh, but wait. The show would not be complete if Mercedes didn't share her deal of the week. So here she is. Mercedes Torres here. Your turnkey girl from Cashlow Savvy with your super, sensational deal of the week. This week, our property is located in Birmingham, Alabama. This home has three bedrooms, one bath, cottage-style single-family residence with 1,188 square feet of living area. The property is centrally located near a middle school and a high school, making this property

super desirable for renters. Now, this property rents for $1,300 per month, and it sold for $138,000, reaping a whopping 8.76 cash-on-cash return. This property was sold to Scott and Mildred from Colorado Springs, Colorado, so congratulations, my friend, on an epic deal. If you would like to see our featured deal of the week, go to cash flow savvy.com, scroll down to the bottom of the page and you will see our featured property. And to get on our list, download the frustrated investors guide to passive income. And you two will start to receive the hot featured property of the week.

Catch you soon. All right. So for more information on the deal of the week and other properties just like it. And to get a free copy of the frustrated investors guide to passive income, go to cashflow savvy. com. And if you want to get an insight, a little bit of a heads up, if you want to get an insight on how to really do this business virtually, how to invest in real estate virtually, meaning you could operate from anywhere in the country regardless of where you live, anywhere in

the world, really, be sure to tune in next week, as I've got a very special guest for you that is running two virtual wholesaling businesses, and they are in two markets of which he does not live in. And he's going to tell you all about it. and what he's done to improve his operation during the COVID shutdown. And so that's next week, Wednesday, September 9th. All righty, so make sure you tune in for that if that's of interest to you. Okay, I'll see you then.

And if you found this episode valuable, who else do you know? There's a good chance that you do know somebody else who would. And if you think about it, when their name comes to mind, share it with them, and ask them to click the subscribe button when they get here and I'll take great care of them. I promise. That's it for today. God loves you, and so do I. Health, peace, blessings, and success to you.

I'm Matt Terrio. Yeah, yeah, we got the cast. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know, home for them, we got the cash flow. Podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.