Epic Real Estate Investing - 3 Ways to Turn $30K into $1,000,000 | 824

Episode Date: November 2, 2019

How to turn $30K into $1,000,000? Is it possible? Yes, it is! Mr. Theriault reveals 3 ways to do it, right now! 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-A-Ase.com. Here's Matt. One million dollars. Not a lot of money these days. Still a lot of money, but it certainly doesn't purchase what it used to purchase. It doesn't get you what you used to get. But it still takes a lot of work to get there.

And it takes a strategy and it takes a plan. And it takes, you know, it takes some discipline. And, you know, it's a million bucks. It's a good chunk of money. Nothing to sneeze at for sure. It's just a nice round number. that we use in society that feels like if you got to a million bucks, you would feel successful because there's just a few amount of people that kind of puts you in an elite class if you were to

attain it. And there's a big giant pool of people that are striving for it that have yet to figure it out and get it. So there's three ways that you can do this. And I kind of started with a round amount of, say, 30,000 bucks. And I kind of use that number just because, I mean, that's a lot of money to a lot of people. I get it. But in the realm of a million bucks, it's not really no money at all. And there's a saying that it takes money to make money, which there's some truth to that. But it's not entirely true. I mean, certainly, I got started with almost nothing. And it really kind of just focused on using my intellectual currency and my creative financing strategies to work my way into my first million dollars of my real estate portfolio.

And so it's certainly possible without, but it sure makes it a whole lot easier if you got some. That's what I'm trying to get at. So let's say you got a $30,000 laying around somewhere. And maybe that's in a 401k or an IRA or an old 401k or maybe you've got a boat laying around that you haven't driven on a long time and you could probably cash that in for $30k or maybe you got $30k under the mattress or maybe you just got it in your savings account waiting for that right moment to pull the trigger to where you can put that

work, that money to work for you. All righty. So there's three ways that I kind of jotted down real quickly. And I think they're kind of your best chances. These are the top three that I could think of. Did a little research and I didn't find too many scenarios. Nope, didn't find any scenarios that disagreed with me. So number one is a very traditional way of going about it.

Just go get a high paying job. Right. And so there, to get that high paying job, you'll probably have to make some sort of investment into your education, some sort of specialized education. So you could take that 30K and invest in some sort of training or education. And depending on that specialization, you're likely to take on a little bit more debt in the realm of a student loan of some sort or just some training, some type of training loan. And then once you've got that in place, you've got the know-how and you've got the position. now you just got to work. You just got to work your way towards it.

You've got to earn your way out of it. And when you're going there, something that you can't ignore, you're going to have to live below your means. Regardless of how much you're making, you can't spend it all, right? So you've got to live below your means. You can't spend everything. And the difference of what you don't spend, you save or invest. And just, yeah, you just save or invest what's left over. And the higher the paying the job and the greater the sacrifices you're willing to make,

the faster you're going to get there. But for even the most disciplined person, you're still looking at, I don't know, 20 to 30 years before you reach your million. And like I said, it depends on the job that you get and the amount of sacrifices you're willing to make. But on average, I think the most disciplined person in real world terms, you're probably looking at 20 to 30 years. Most of us will work 40 to 50 years and still never reach that number. but if you've got the discipline and you've got the right job and you've got the right mindset

and the willpower to make those sacrifices, I think 20 to 30 years, that's a very reasonable number to reach your first million. So that's number one, get a high-paying job. Number two, invest in real estate. No surprise there, right? No, it shouldn't be because it's true. Real estate has produced more wealth than anything else on the planet, and it all begins with that very first single investment property.

And you can do that with 30 grand. pretty darn easily. If you're real creative, you could probably get two investment properties with that 30 grand. But the key is you're going to have to buy below market value. You're going to make sure it produces a cash flow, a positive cash flow. And then you're going to manage it properly. And then just going to save your cash flow and wait for appreciation so you can redeploy that into the next property and just kind of do it all over again.

And you kind of just play this game of taking your appreciation and taking your cash flow and getting the next property, saving it all. Now you've got three houses or so generating cash flow and appreciation. So the fourth comes a little quicker and the fifth comes quicker. And maybe the sixth and the seventh you buy those simultaneously. And it just kind of builds. And then when you factor in all of the profit centers of real estate, you can typically expect a 30% or so return per property.

Yeah, if you go to YouTube and search how to become wealthy in real estate, there's a video there that I created where I break down, the exact math for you of exactly how this works, how you get a 30% return per property. I mean, most people just think in terms of just appreciation. And they're kind of limited to this three, four, five percent average annual appreciation across the country. It varies significantly from market to market. But that's about a very conservative number, three to five percent, somewhere in there,

appreciation annually over time. And then the smarter people, they think in terms of appreciation and, and cash flow. So they've got this appreciation going of 3 to 5%. They've got an annual cash flow of a killer property of somewhere to 7 to 8%, 9%. And so that's 9 plus 5. So now you're at 14%. But I said 30.

How do you double it? Well, the smartest people, they understand how depreciation and amortization contribute just as much to that equation, if not even more, to it. And there's another 15% annually. and you take those together and boom, you're a 30% return on that money that you invested. And for the most disciplined real estate investor, in that scenario, you're looking at 10 to 15 years to reach your first million. And that's very conservative numbers. That's just doing it on the side and go ahead and accessing your appreciation or your equity from your appreciation,

saving the cash flow, and then every once in a while just go out and buy another property. And you just keep on doing that. 10 to 15 years, you should have no problem reaching your first million. So that's number two, invest in real estate. Number three, start a business. And this right here, this may excite you because you've always wanted to start a business. Or maybe you have a business and you're excited about it. Or maybe it scares you.

And if it scares you, it's understandable. I mean, it's understandable if it excites you because it certainly excites me when I get to run my own business. And if it scares you, though, that's understandable too because there have been moments where I too have been scared. And it comes and goes. And this is why it would be scary to most people. As most businesses don't see it past their five-year anniversary, let alone reach a value of a million dollars, ever.

But in today's day and age, I'd say it's probably, I don't know, it's never been easier to start a business and grow it to a million dollars than it is right now. The Internet has really just leveled the playing field for entrepreneurs. I still take some intelligence. It takes the right idea. It still takes work. But the level, the playing field is certainly level. And it's, gosh, I said it was probably more possible to turn $30,000 into $1 million today than it's really ever been before via the Internet.

So what I did is I went and researched some ideas as to what might work for you, what might pose to be a viable business for you. And I found a bunch of different ideas. But I kind of picked the ones that seemed like they could be accessible to most and have the greatest upside to most at the same time. There are certainly some easier ones to get to, but it was kind of hard for me to grasp on how that would make a million. And then there are some that seemed extremely lucrative, but it's going to take a lot of probably specialized training, studying, research. So I kind of just picked the middle of the road ones that kind of had the best of the best of the both worlds, if that makes sense. So number one, consulting. So I don't know.

Do you already have knowledge or experience in a specific area? Likely that you do. You know, whether that's showing a business how to go green or how to use a new technology or maybe providing legal advice, then you could easily start your own consulting agency. There's something that you're really good at that somebody wants to learn and would love to learn it from you because you're so good at it. So since you already possess the knowledge and experience, the main costs involved are going to be really just marketing the business.

and networking, specifically purchasing maybe a website and some business cards and getting out there and selling. Right? So consulting, that's one. Number two I've got here is chatbot. Chatbot design. You know, 10 years or so ago, every company needed a website. And then five years ago or so, every company started to need a mobile app. Now, every company really starts to need, they need to start embracing AI, artificial intelligence and chatbots.

It sounds complicated, I know, but there are tools out there that allow you to easily build these types of bots so that businesses can communicate with their clients in a more efficient way. And love it or hate it talking to a computer or talking to artificial intelligence, that's the direction that the world is going. I don't think it's going to go back the other direction. So embrace the future. Don't hate the chat bot, hate the game. That's just kind of where it's going. But that's another option. And a lot of people are going to have,

there's going to be a lot of demand, a lot of need for that. And if you go ahead and do a little bit of research and figure out how those work, that's an opportunity for sure. Info products and educational programs, selling how-to information, great business idea.

You know, not only are you profiting from a passion or a skill that you already have. it's incredibly low cost to do. I mean, it really takes not too much more than a website, some really good content, and then some investment in your marketing. And it's a pretty competitive area, though. So probably a key thing to do would be to focus on a niche

that isn't frequently discussed and kind of more of the narrow the niche you can go. Probably the more success you're going to have just because there is so much information out there available today and so much of it is free. You know, if you took on info products or educational programs and kind of teamed it up or matched it together with the consulting thing, that would be a really, really good strategy and a very viable business to produce a million bucks.

Next one I saw, and I know this from personal experience, a tour guide service. Now, I don't know if you don't live in an area where there's a lot of tourists, it might not totally apply. But if you do have people that come to your town to visit, I think there's a lot of opportunity here. You know, it wasn't this year, but I think it was the last year. It might have been two years ago. Mercedes surprised me with a wine tour of Malibu. If you didn't know, they produced great wine in Malibu. And she found somebody online who had a tour company of just the Malibu wineries, the Malibu vineyards.

And they came and they picked us up. And she had rented this little car, I think it was what the, I think it called a PT. not a Cooper. There was another little car that was out for a little while. I don't know. It was just a nice, cozy little car. We sat in the back seat,

and she took us from winery to winery. I think we paid her $600. So all the wine was paid for. Our wine tastings were paid for when we got there. And she had a little picnic out there for us. And I think we paid like $600 for like four or five hours for just total, very comfortable, intimate service. And she let us know that she had two other cars that worked for her.

And so she was paying other. people to do the same thing. And that seemed like, I was like, wow, that could be something, if there was something that you were really passionate about, whether it's an area or just some sort of attraction, like wine tasting would be a great one. Central Park could be a really good one. That's probably rather obvious. But if there's something that people come to see in your town, that could be really, really good, particularly if you're born and raised there and you've got all the history. That's who the people want to give their business to. And there was a lot of of, I think there's a lot of opportunity there. Anyway, moving on. Online marketing services.

Yeah, the malls are shutting down and everything's going online and all these businesses, they're going to need marketing services. Because just because you know how to run a business doesn't mean you know how to market and they don't necessarily go hand in hand. And people are just going to need this more and more and more. And, you know, even if you don't have a background in online marketing, you can take a nice, cheap online course to get started. You know, you start maybe with search engine optimization and and then you kind of grow from there and you start looking at the ad word stuff

and then the Facebook stuff. You know, YouTube has been a really low cost way for me to reach motivated sellers. And so, I think it was like a penny of you. It's like ridiculous on how many views I had on that. You know,

when those little commercials come, you go to go look at, you know, your latest thing on YouTube, maybe go to learn how to, I don't know, put the chain back on your bike because your chain fell off. But before you can watch that how-to video, you've got to watch a five-second ad at least, right? And I almost always skip those ads.

In fact, I do. I skip those ads. But did you know that most, there's a lot of people that don't? And that's been very effective for us reaching motivated sellers. Anyway, I pay someone to do that for me. So that's a good business. And I don't think that's going anywhere of all those platforms. Let's see another one.

You could be a freelance writer. And, you know, aside from just creating content, for blog, stuff like that, but big companies are looking like Amazon and Apple. They're involved in the book publishing field where authors are raking in big bucks for composing everything from, you know, instructional books to cookbooks to sci-fi adventures and even just, you know, manuals and brochures, stuff like that. A lot of money in writing. Rentals, I like this one.

I think this could be a really good one for a lot of people and very easy to get into. You know, with the emergence of the sharing economy, people are choosing to rent instead have purchased stuff. So while renting out a room on Airbnb, that's kind of an obvious one, or renting out your time, like via Uber or Lyft, that gets a lot of attention as well. But there's a new service. I don't know how, it's kind of new to me. I think it's been around for a while, but Turro, where you could rent out your vehicle.

And here in Vegas, this is what I discovered. Here in Vegas, when you come to town to rent a car here, and you could probably do this in all your major cities. I haven't looked at every city, but I'm imagining it exists in every major city. Instead of going to Avis or Enterprise to rent your car, go to Turro, T-U-R-O on your app, and look up your car rental there. You can get really, really nice cars for really, really cheap. I think the last time when we were out here looking for, when we were still living in Los Angeles,

looking for places to stay in Vegas, we would use Turo. And we'd get like a nice BMW for like, I don't know, 30, five bucks a day, something really small, insignificant. We got a Corvette on one trip for like 30 bucks a day. And there's one guy that we started talking to, and he actually would just go to car auctions, buy nice cars really, really cheaply, and then he's put them all on Turrow, and he makes about $2,000, $3,000 per car. And I was like, wow, that's pretty darn amazing.

And so now he's got a couple kids that'll just meet you at the airport with the car, And then they pop out their little motor scooter out of the trunk of the car, and then they ride back home after they drop the car off to you. I'm really slick. And I imagine that's only going to grow and grow and grow with just as far as our imaginations can go on what we're able to rent. I mean, you can rent pretty much anything you own like a garage or a parking space. You know, even household items like furniture or yard equipment. You know, and even if you don't own these items, like what that guy did with the cars,

they're fairly inexpensive to purchase. There's a lot of different outlets and opportunities to purchase stuff really on the cheap. So if you really want to step up your rental game, consider renting out party equipment like tents and photo booths or bouncy houses. Oh my God. I just, that's, that is reminding me as my son was growing up.

We'd always get the bouncy house. And we met the lady and she only spoke Spanish and Mercedes speaks Spanish. So they connected and started talking. And I think the lady had like 15 of these bouncing houses and got like 200 bucks a day for the bouncy house. And she was booked for like months. So rentals, another thing. So there's a lot of different stuff that I stumbled across like graphic design, pet care. You realize pet care Americans dropped a whopping $62 billion on their pets in 2016,

and that amount is expected to increase to $96 billion by 2020. That's a great industry to tap into. You go with traditional business ideas like dog walking, grooming, training, or pet sitting, and apparently the real money mover is producing organic. pet food and treats. So pet care, e-commerce stores, becoming a personal trainers, a lot of personal trainers that are just doing their training online now. I don't know quite how that works, but I know quite a few of them that are doing it. Life coach, mentors, a big deal, training, instruction, you know, whether you're a guitarist or a chef or you're fluent in

Spanish, you can make some serious dose sharing your knowledge. That way, drones, I thought this one was really interesting, because drones are scorching hot right now. In fact, the drone sales boomed from 224% in 2015 to almost $200 million in 2016. It's almost going to double that in 2020. And so drones are rapidly becoming just an indispensable tool in a variety of industries. So if you want to capitalize on this trend, you can start a drone-based business such as sales or customization or repair, training, photography, mapping, surveying, or security surveillance, you name it. So those are a bunch.

Or you could do this. You could take number two that I gave you, invest in real estate and make a business out of that. And you could do that either part time or you could do it full time. And instead of, you know, picking up a property every other year or so, like if you're just going to be a passive or just kind of a casual real estate investor, you could pick one up every month. Since it's your business. And at that rate, you could turn $30,000 into a business. $1 million in less than five years, pretty darn conservatively. And that would be an acquiring property at just 80 cents on the dollar.

So nothing extraordinarily difficult to find deals like that. You know, here we're always looking for 50% and 60%, 60 cents on the dollar. But 80 cents on the dollar, we pass on those types of deals all the time. And then all you need to do is just apply some of your creative financing strategies like negotiating seller's terms for seller carrybacks and subject twos and lease options and starting to leverage private money and or a combination of all of the above, if you did that, that $30,000 will go a very long way in a relatively short period of time in creating your million bucks.

And I use the word relatively being, that being the operative word here, meaning relative to your other options. I mean, doing it this way, creating a business out of investing in real estate, that's about as get rich quick as you can realistically get, relatively speaking, relative to the other options that are out there available to the average person. So those are my three ways to turn $30,000 into $1 million. You can go out and get your high paying job where you have to take that $30,000, invest in the education or the training. Two, you could go out and start a business. I gave you a bunch of different ideas where it would take $30,000 or less to start.

And there are examples out there right now where people are making a million bucks for those examples that I gave you. That's how I came up with those. And or you could go ahead and take number two and three, combine them and create a business out of real estate investing. And we've got a lot of examples of those right here in our own epic community of how that works and taken $30,000 and turn it into a million bucks. So the big question is, or the big questions are which one will you choose? and second question being, when will you begin? God bless and to your success. I'm Matt Terry O, living the dream.

Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home world, we got the cash flow. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.