Epic Real Estate Investing - 3 Steps to Becoming a Money Magnet | Episode 87

Episode Date: February 3, 2014

The title really says it all. If you're tired of searching for money to invest in real estate, I've got great news for you. You don't have to search for it. Follow these three simple steps and that money will start searching for you. ---------------------- If you have a question you'd like Matt to answer live on the show, call the Epic Real Estate Hotline at 1-888-891-7203 Download Matt's free course How to Do Deals : No Money Required at FreeRealEstateInvestingCourse.com Don't have a buyers list yet? Borrow Matt's until you do at EpicWholesalers.com Get "done for me" income properties with "guarnateed cash flow" at CashFlowSavvy.com Hit the streets and join Matt in the field in one of his cash flow markets at EpicRealEstateTour.com Subscribe to Financial Freedom Fridays on Matt's YouTube channel by visiting EpicREI.tv Subscribe to this podcast and access all episodes at EpicRealEstateInvesting.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Welcome to another episode of Epic Real Estate Investing. If this is your first time listening to the show, welcome. If not, happy that you're back. Glad that you're all here. This is the place where I teach people how to escape the rat race by investing in real estate. And if I were to do it all over again, I'd just. do it exactly the same way that I did do it. I do it exactly the same way whether I had money

and credit or not. You see, while I was finding my way, I stumbled upon 12 different strategies of investing in real estate with little to no money. And I've put the first two, the two of which I believe are probably the easiest and fastest strategies to a paycheck in real estate. I've put them into a free course just for you. And you can access that free course at free real estate investing course.com, free real estate investing course.com. And I've got a bonus strategy for you today even, a bonus strategy to a quick paycheck, within the next 30 days even. Do I have your attention?

Okay. I'll be awarding $1,000 on March 3rd to the best video testimonial demonstrating how this podcast or the free course and or the Epic Pro Academy has helped you in your real estate investing. $1,000. Yep, I'm going to give a full thousand bucks out for the best video. And for the top three video testimonials, I'll go ahead and I'll interview you on the show. You can share your story and then you'll also have the opportunity to plug your business. I know every person that has ever been on this show as my guest has gotten business from it.

They've definitely gotten contacted about potential business. But I know a lot of them have actually been able to, what do you say? what's the word I'm looking for. Capitalize on it. That's what I'm looking for. Capitalize. So it doesn't have to be fancy or anything. The video camera on your smartphone will be sufficient,

not to mention probably the easiest. So to shoot a quick video and share with me your epic story and email it to me at mat at epic real estate.com. Matt at epic real estate.com. Also, I mentioned a while back, I don't know, just a few, a few episodes ago, the number of deals that are being done through epic wholesalers.com, nothing but extraordinary.

If you don't know, this is a site where you can submit your deals and I'll share them with my buyers list. And the whole idea there is that until you have your own buyers list put together, you can borrow mine. If I can help out, I'm glad to do that. Not every deal fits the criteria. But if it does, absolutely. I just don't see any need for you to wait to start making some real money.

So I just did a great interview actually a couple days ago with a first-time wholesaler through epic wholesalers, Dwayne Harris out of St. Louis. But the way my building is wired, the way my office is wired, for some reason when the AC is on, it corrupts whatever I'm recording. There's this weird little buzz and it kind of gets distorted. and I typically remember to turn it off, but I failed to do so this time. So sorry about that. Dwayne, congrats on your first deal, though. Dwayne put $9,000 in his pocket last Friday.

He's fired up. I wish we could have aired that. But next time. Oh, and Josh, Josh Justiniano. I have a hard time with his name. Justiniano. Josh, he and his brother, I interviewed them. So if you guys are wondering what happened to the interview you did with your brother,

that was, I don't know, a few months ago. Same thing. The AC, it interfered with the recording. Sorry about that. Oh, and I realize about half the country right now is absolutely frozen, but here in Southern California last week, we did indeed need to turn on the AC. Not rubbing it in. That's just what's so.

Life is rough out here. Anyway, congrats to all the epic wholesalers that are crushing it. Adam and St. Louis, Brad and Cleveland, and I know we've got a new wholesaler in Memphis that's doing really well. It just kind of came out of nowhere. found us online and started submitting stuff. And now they're podcast listeners and they're crushing it too. I'm sorry, the name escapes me.

Mercedes, my partner let me know about it just a couple days ago and I forgot the name. Anyway, I will make it up to you. When I was thinking, you know, when I got started investing in real estate, as I've been able to share that those beginning steps with so many people in the last couple years, you know, I've shared this many times before and I have so much in common with so many of you that are just starting, I had no money and I had a terrible credit score. And I, too, like so many of you, thought that I needed those or at least one of them to invest in real estate.

I mean, the idea of investing in real estate with no money or no credit just seemed absurd. But then I heard that I could use other people's money to invest in real estate. And I was like, okay, well, at least I'd have something if I could figure out how to do that. And I thought about it. And really the thought of asking other people for money for the purpose of investing in real estate, particularly when I didn't know too much about what I was doing, that didn't excite me, to say the least. Didn't excite me, not at all.

So I didn't give up, though, but it didn't excite me. So through trial and error, you know, I kind of stumbled upon some different ways to get money to find me. So I didn't have to ask for it. It was kind of offered to me. I didn't want to ask for it. but I figured out how to get it to ask for me. And once I figured it out, it just kind of started to happen. It happened everywhere that I went.

It came really easy to me and just to get the money to find me. And it still does. And I would say that my ability to do this is very much a secret to my business, or maybe not a secret, but at least the reason, a big reason for my business growing and the reason it continues to grow at the rate that it does. and the ways of which I do get the money to find me, you know, it has me kind of scratching my head a little bit as to why more people don't do it

because it is rather easy. It's not that difficult. I mean, when I say easy, I mean, it is kind of easy. You just have to do it. And the only thing I can think of is, you know, if you've never done it before, I guess there's just a lack of faith. It is a little bit counterintuitive.

It is a little bit scary. It can be fearful. Fear that it won't work or fear that you'll kind of end up looking like a goon or something. I don't know. But I think that that lack of faith and fear that a lot of people have when I share with them what they're supposed to go do to have that money find them, I think that fear is projected onto their community, their network, their associates. And their associates and network, they respond accordingly. They don't entrust their money with somebody.

that looks scared to take it. Meaning, you know, you may be thinking as once I did, who is going to give me the money to invest in real estate? Right? That's what most people think about. Okay, I can use other people's money, but who's going to give it to me? And I think that's another place that the problem may lie.

It's who is going to give me the money? The operative word there being, give. Because you're not going to find anyone that will give you their money. but there are plenty of people out there that will let you use their money in exchange for something of equal or greater value. Typically greater. It's a lot easier when it's of greater value.

And there lies the clue. You first must know what you're going to be able to give back to them. That's key. Rather than racking your brain as to who is going to give or lend me their money, shift your mindset to what am I going to give or lend to someone that has the money. Got it? So I don't want you to think about who is going to give me the money.

What I want you to think is, what am I going to give or lend to someone that has the money? Look at yourself as the giver. You're the giver. They're not the giver. They're not giving you anything. You're giving them something. You're the one with value. You're the one bearing gifts.

You're the one who has something to give in exchange for the use of someone's money. And to do this appropriately, you must always be prepared to answer four specific questions. Okay, there's four specific questions that you have to have the answer for for this to be easy. And I made note of these questions, and I've never forgotten them because they are asked of me so frequently they're asked of me all the time when people are asking me to use their money. Do you get that? They ask me to use their money. Yes, they ask me if I will use their money right now.

The tables have certainly shifted. It wasn't always this way. But I'm sharing with you, I'm going to tell you exactly how you can get here too. And it's not difficult. But first, you must always be prepared to answer these four questions. when am I getting my money back? Got to answer that question. How much am I getting back?

Got to answer that one too. How are you able to give me that amount of money back? How can you do this when no one else can? Got to answer that question. And the fourth one is, what happens if I don't get it back? Those are the four questions. If you can answer those four questions, you'll have money falling from the sky.

If you have a solid answer for those four questions, you'll find no resistance in people giving you their money to use. And once you build a little bit of a track record, they will actually call you to ask you to use their money. I know. Sounds crazy, doesn't it? But when it happens for the first time, you're like, I heard it there on the epic real estate investing podcast first.

He told me this was going to happen. Okay. Happens all the time. People tell me, oh my God, man, I can't believe it. Someone called me and asked if they could do another deal with me. Happens all the time. So I'm going to give you the big secret on how you can have this happen for you, how you can always answer these questions,

how you can always answer them at any time and answer them with absolute certainty and conviction. How you can answer those four questions in a way that people with money will ask you to use their money. They'll ask you to use their money right there on the spot. They'll be ready to write a check. They'll be ready to send a wire transfer. but even though I'm going to give this secret to you,

you know what? I know most of you just won't do it. You're not going to do it because you lack faith. You're afraid it won't work. And it's that lack of faith. It's that fear that is standing between where you are right now and where you want to be. But I don't know. Maybe you'll surprise me.

Maybe you'll prove me wrong. For most of you, eh, I don't think so. But maybe, okay, maybe. I am the eternal optimist. I'm challenging you to make me look like, I don't know what I'm talking about. That's the challenge. Make me look like I'm the dumb dumb, okay?

That's your challenge, or that's my challenge to you. So here it is. Here's the secret to making this work, to getting money to find you. First thing, completely, forget about the money. Totally forget about it. Just wipe it from your mind.

Don't even think about it. Second, now that you're not thinking about the money, just go find the deal and get control of it. That's how it works. I know. You don't believe it'll work, do you? That doesn't make any sense. Well, here's why it works.

This is exactly why it works. Let's say, I have a dollar in my pocket. And you have 75 cents in your. If I offered to trade you right now my $1 for your 75 cents, what would you say? What would you say? Would you take that trade? Of course you would. You better.

And the reason you would is because you know the answers to all four of those questions, don't you? You know when you're going to get the $1. You know you are indeed going to get the $1 because I just pulled out of my pocket and showed it to you. You know I'm competent enough to give you the $1 because I'm holding it in my hand and I can just hand it over to you. That's my competency there. And you know you're actually going to get it because you might not, you're not going to give me the $75 until you actually get the $1.

You see, all four questions have been answered in that scenario. And therefore, it's an absolute no-brainer. Of course you're going to give me to, you're going to trade your $0.75 for my dollar. In fact, you might even call me tomorrow and ask if I'm up for another exchange like that one. Right? Now, that's an ultra simplified example, but that's the psychology behind finding the deal first. I found the dollar first, and I had control of it. It was in my pocket and then it was in my hand, and then I'm holding it in front of your face.

That's the psychology behind finding that deal first. That's why it works. but, okay, I can already feel your wheels turning. Maybe you're thinking, what if I can't find anyone with 75 cents? What do I do then? Simple. You cancel the contract and go find another deal. You put the dollar back wherever you found it and you go find another dollar.

Maybe a better dollar or a bigger dollar. Or maybe it just needs to be a different dollar. a different deal or maybe between now and then you actually meet some new people your network expands and there will be someone in place the next time you do get that deal under contract

listen if you can't do it this way it's not going to happen for you the other way it's a whole lot tougher to do it the other way to find the money before the deal so if you can't do it this way you can't do it the other way But if you truly found a deal, if it's a real deal and you found it and you got control of it and it is indeed a deal, people will be lined up to give you their money.

That's not going to be an issue finding it if you've got a real deal and you've got control of it. I mean, back to my previous example, how many people do you think I would have to ask to trade my dollar for their 75 cents? How many people do I got to go out and find? Probably just one, right? Maybe two because the first person thought it was a trick, thought it was too good to be true, and that indeed happens. But just one. Just one because it's crystal clear that my dollar is worth more than their 75 cents.

So there's another clue right there. There's another clue on how to do this. The ease of which people give you their money lies in direct proportion to your ability to clearly demonstrate that your dollar is. is worth more than their 75 cents. That's crystal clear that your dollar is worth more than their 75 cents. That's why they'll do the trade so easily. So your ability to clearly demonstrate the value of your deals

will be in direct proportion to the ease of which that money comes to you and the ease of which that exchange is created. But you see, you can't clearly demonstrate the value of your deal if you don't have one, if you don't have control of it. See, if the ease of you getting the money lies in direct proportion to your ability to demonstrate the value of your deal,

you can't do that unless you have a deal. Get it? So first, you need the deal under contract. Second, you need to clearly explain how the deal has a higher value than the money you're asking for in exchange. Simple. The more you take this practice on, the better you're going to get.

And the better you get, the more confidence you're going to have. And the more confidence that you have, the more deals and money that will come your way. For example, I've been doing this for a while. Okay. And this is my most recent example that I can give you. I'm currently rehabbing a 40-unit building in Memphis. It's only about a third of the way done. They're running a little bit behind, and we've had to swap out some contractors a couple of times.

I mean, we're right in the middle of that rehab. And in November, another deal came across my desk, a 44-unit building, also in Memphis. I mean, it was a smoking deal. But I didn't really have the time to go and take on another one when I was still working, when I'm still working on the 40 unit. And I didn't have the $50,000 to acquire. it. That's right.

44 unit building, $50,000. Smoking deal, I said. And I also, though, I didn't have the $400,000 I was going to need to rehab it either. But it was a smoking deal. But so, like, when I was presented with this deal, I recognized as a deal. So I said, I'd take it. It's a deal. I'll find the money.

I have no idea where I'm going to find. find it. All my money's tied up in this 40-unit building right now. All my resources are over there. I have no idea where I'm going to find the money, but I'll take it. And the reason it was a great deal, because post-rehab, by the most conservative numbers, that building will hold a value of $900,000, almost a million bucks. So it's going to cost me $50,000 to get it, $400,000 to rehab, and then it'll double in value by the time I'm done. I'd be getting the building essentially for half price. So I get the property under contract. I tell just one friend about it, just one friend about it, letting him know that I need $50,000 to buy it, just to put it on the sidelines

and I'll figure out the rest later. So I showed him the numbers and then he asked me logically and understandably, where are we going to get the $400,000 to fix it? I said, don't worry, it's a deal. You know, the after repair value is almost a million bucks. We'll find it. I just can't do it right this second. But this is a good deal.

So I'd just like to take it off the table and hold it for us and we'll just get to it when we get to it. He's like, okay, cool. So I made him a partner. He put up the $50,000. I told one other person about it. I only told one other person. So two people now.

The first person gave me $50,000. The second person I told, they said, hey, I've got $100,000. Can I be a part of this? I said, sure. And I just got an email this weekend from someone that's asking for a few more details because they want to be a part of it too. I've only shared this deal with four people. I wasn't even looking for the money.

I didn't even know some of these people had that much money. But I just shared the deal with four people, and I have the four people, three of them want in on the deal. And they got the money to come in on it. I'm still a little bit short, but they have enough to where it makes sense for them to be partners. And I'm not even actively pursuing anybody right now. I'm still working on the 40 unit. I bought the 44 unit just to have it and hold it until, you know, I'm ready to start. See, that's just the confidence that I have in finding the money.

I know I will never be short of people who will trade $1 for $75. Or in this case, almost that $1 trading for $0.50. That's even a better deal. I'm not special because, you know, I can do this and I'm so confident about it. You will have this confidence, too. You will. And it's just, it'll be amazing to you on how easy it is. It will build for you.

That confidence will come to you. It'll come to you really quickly if you just put a deal under contract and start sharing it with people in a way so that it's clear that there's value in it for them. The money will find you, I promise. Regardless of where your deal is, how big or small your deal is or how many deals you have, the money is already there waiting for it. He's just sitting there waiting. You just don't have anything to exchange for it yet.

And because you don't have anything to exchange for it yet, either you haven't asked for the money yet or you've lacked power in your asking because you didn't have the confidence in answering those four basic questions. And you couldn't answer those four basic questions is because you didn't have a deal under contract. You follow me?

It keeps coming, it always comes back around that you have to have the deal first for this all to make sense, for this to be easy. Now, once you get your first deal, your very first one, you're probably going to have to, you know, you're going to have to burn a few calories to go out and find the money. You're going to have to get off your butt. You might have to put a little bit of effort in. Maybe even the second time, too.

But the third time, that money will find you. It'll find you. Or at the very least, you'll experience little to no resistance when you do actually ask for it. And this is so for three reasons. First. By sharing two different deals within your network, you're already starting to build a reputation for finding good deals. Okay? That's the first part.

You're starting to build this reputation that, hey, Joe Schmo or Mary Jo, they got a reputation for finding good deals. The second reason is since you've completed these two deals, now you're building a reputation for following through. And you're building a reputation for creating situations where everybody involved wins. And the third reason is because you made sure that everybody got what they were promised when they were promised it. You're creating a reputation, an overall reputation for a trustworthy and competent real estate investor. That's what's happening. And now let me ask you, who do you think people with money want to give their money to? Who do they call to ask?

Who do they call to ask and say, will you please use money? money. That's right. Trustworthy, competent investors. And after just a couple times of operating this way, money will never, ever, ever be your problem. Likely just after one time, really, money won't be your problem. And here's why. When you hand back that money to the money to the person that gave you the money, and you hand their money back to them with the profit, and you hand it back when you said you're going to hand it back, or maybe even sooner, that's another good, good tip. But if you give it back the money that they gave you with the profit,

when you said you're going to give it back, guess what happens? And this one, I can, oh my gosh, I'd almost bet anything on it, that it'll happen the very first time that you do this. If you give them back their money with the profit and you give it back to them when you said you're going to give it to them, guess what's going to happen? They're going to give you that money right back and ask you to do it again. Or they're going to give you back that money and even more and ask you to do it again. Or they're going to give you back that money plus a little bit more money,

and they're going to introduce you to one of their friends or family that also are going to give you money, and they're going to ask you to do it again. It's never going to be an issue. Money will never, ever be an issue operating in this manner. So here are the three steps in getting the money. money to find you. One, find the deal first. Find that dollar.

Okay, find the deal first and get control of it. Two, create a win-win scenario out of the deal and then just share it with anyone that will listen. Okay, don't keep the deal a secret. Share it with people. Talk about it. And make sure it's a win-win scenario, how you're sharing it. Three, once you find that person, the person that gives you the money, pay

them back, what you said you were going to pay them back, when you said you'd pay them back. And boom, you're on your way. As long as you continue to find deals, money will find you. Or scratch that. Money will chase you. Okay? You will become a money magnet. Now you know.

Now do what you know. And imagine. Imagine for a second. What would your business look like if not only the money found you? you. What if the deals found you too? What would your business look like then? So how do you get the deals to find you? Well, that would be very, very exciting, wouldn't it? Yep. So I'll see you on the next episode where I'll show you how to do just that. All right. Remember, if you'd like to, you'd like a crack at the $1,000 best video testimonial prize and or one of the three interview spots here on the show,

Go ahead and send your video testimonials to Matt at Epic Real Estate.com, and I'll announce the winner on Monday, March 3rd. That's it for today. I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening.

We'll see you next time here at Epic Real Estate Investing with Matt Terri. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.