Epic Real Estate Investing - 5 Real Estate Investing Lessons That Will Make You MILLIONS! | 1097

Episode Date: November 12, 2020

In today’s episode, Matt shares 5 real estate investing strategies that will make YOU MILLIONS of $$$$! Stay tuned as you will learn to focus on the things that matter the most and appropriately address risk factors so you can ensure yourself a passive income that lasts! Moreover, a brand new EPIC INTENSIVE is on the calendar! From January 28th to January 30th, 2021, to be exact! Lend an ear to today’s episode and find out all the deets! 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's Matt from Epic Real Estate. This is where we show people how to invest in real estate with an emphasis on retiring early. It's the Epic Real Estate Investing Show. That's what we do here. And if this is your first time here, really glad that 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. It is the month for being grateful, isn't it? Thank you for sharing this with your friends and family. I just would not be here if it were not for you doing that. So thank you. You're the absolute best for doing that. Thanks again.

And in the news this week, happy birthday to the United States Marine Corps. Arrup. Celebrating their 245th birthday on November 10th. And on the 11th, Veterans Day, as a veteran, I and everyone here at Epic express our deepest gratitude to all those who have served in the United States military. So thank you for fighting for.

our freedoms. Now let's pray that the new administration doesn't unravel what you've protected and preserved. Sorry, I couldn't resist. Seems that the mudsling is going just one direction these days, and I needed to create some equilibrium in my world. You know, I subscribe to this newsletter and entertaining and gifted writers named Dave Pell's. Not the famous golf coach, if you're familiar. It's spelled differently. But he wrote something this week, and I replied to the email, not expecting a reply back, but he did. And so he had written a pretty negative article about Trump's refusing to accept the results of the election and about Trump, you know, declaring Trump's legal protest a wanton attack

on America's core democratic value. And then he cited that there's zero evidence for Trump's claims. And he wrote this article with some. such conviction. I was really drawn in by how he was just so positive. He knew exactly what he was talking about and there was no room for him to be wrong. And just that type of conviction, I got I don't know, I get to have a little bit of a problem with it in all areas of my life, not just politics, but everything. If you'll find here that I very rarely speak in absolutes because I'm very flexible and open to being wrong. And it's very easy for me to admit that I'm wrong if someone

points it out. And so I guess, I don't know, maybe that's just something internal when I noticed something that that's the opposite in someone else. It just kind of, I don't know, it rubs me wrong. But yeah, I just got a problem with people taking such a firm stand, exhibiting zero flexibility based on what they just watched on their favorite news channel. And, you know, if we didn't learn anything this election year, I hope each and every American would walk away recognizing that what we once referred to, as news is no longer news. Please tell me you don't think it's actual news.

I mean, it's rather it's propaganda. I mean, if the reporting of the news consists with a bunch of adjectives and emotions, that's opinion-based. That's founded in people's opinions. And that's on both sides, by the way. You know, and when I speak of both sides, I was, I just, you know, it's probably no secret to which way I lean. but I am more interested in which way I lean on which side is right or wrong.

I don't really care. I am more interested in the truth and fairness. And I recognize the propaganda on my favorite channel too. So anyway, I wrote to him asking where his conviction comes from. And then if evidence arises that there's some validity to Trump's allegations, would you change your mind? Or is your mind made up regardless of what manifests? And like I said,

I wasn't expecting a reply, but just throwing it out there in the interest of stopping the hate, of which is his tagline for his article, or his whole column or his blog post. It's stopping hate for profit. Real news saves lives, stopping hate for profit, something like that. And I like the tagline. I thought it was good because I hate hate hate. And particularly if there's hate for profit, that's even more disgusting. But he did reply.

Cordially, by the way, so he's a good guy. And he wrote, thanks, man. it's already clear there's no merit to the charges. It's all part of a plot. That's the truth, period. And based on what I just share with you a couple seconds or a couple minutes ago, it rubbed me wrong again because that part that he says, and that's the truth.

That's the part that gets to me. I mean, how does he know? He didn't answer the question. And, you know, I wanted to know where does his conviction come from? How does he know is the truth? And so he didn't answer that. And he just put a big exclamation point. at the end saying that's the truth.

I replied again, probably against my better judgment, but I replied, I appreciate the response, Dave. I don't know what's the truth or not. You must have different access than I do. I'm naturally inquisitive, interested in truth and equity. I would tend to agree with you, though. But to play devil's advocate, there was no more merit to the charges of Russian election collusion.

Once on the stand and under oath, Trump's accusers testified they had zero evidence. and the FBI attorney even confessed to falsifying documents in an attempt to give the charges some merit. Republicans waited three years for the legal process to run its course. So the Democrats can chill for another 30 days or so. That's what I wrote. And I really hope Trump is wrong because I don't want to really see the shitstorm the country would become if his suspicions were correct. what a disaster that would be.

We've had enough this year. I mean, imagine if liberal corruption was to be pinned on Trump also. They'd find some way to make it his fault, right? And that would certainly be the end of the pleas for unity. But I had to drop a little bit of a passive aggressive dig in there for him, and I couldn't help it. But I wouldn't have, if he had just answered the question, how does he know what the truth is? How is he so positive about it? you know, and I did appreciate, and to his credit,

it was a civil exchange. And that's what I hope for moving forward, to return to a place as a country where it's okay to disagree. We can be civil with our disagreements, and we can pursue the truth and fairness and not take our cues from biased news sources and taking those cues and then adopting them and incorporating them and making them a part of us that what we hear

from these sources and have those become our identities. The type of identities that we're willing to defend by saying and doing really terrible things to each other. I mean, people are at each other's throats based on Don Lemons or Tucker Carlson's opinions. They're just opinions. They're their points of view. And people embrace them, depending on which side they want to believe,

and they're ready to fight to the death based on just those other two human beings. They're just other human beings with the same flaws that you and I have. Well, I know you don't have any, but I got a lot. But I just pray we can unify in the interest of the truth, even if the truth hurts. Because it does sometimes. And when you can be open enough to recognize the truth for being the truth,

then make decisions on who you're going to be and how you're going to live your life based on the truth. But have it be truth based. right? Don't have it be based on what Rachel Maddow thinks. You know, it's kind of like, here we go, it's kind of like determining the value of a property. You know, if you hired 10 different appraisers, 10 certified different appraisers, 10 different appraisers with official government licenses to appraise property, and you hired 10 different ones to give you a value on a property, you're going to get 10 different answers. But it's your money you're investing, right?

do you want to gamble your money based on someone else's opinion of value? Or would it be more prudent to educate yourself and come up with your own value assessment? It's your money. I mean, you're going to either be the winner or you're going to be the loser. It's you taking the risk, not the appraiser, not the banker, not the realtor, not the lawyer, or your neighbor. Or your opinionated broke brother-in-law. That's always my favorite one. I used to have one of those with a former wife.

Lots of opinions telling me what to do with my money, how to make money, and he didn't have two nickels to rub together, and every holiday he'd ask me for a loan. But you want to find as much truth about the value as you can because it's your money, right? You should want to find as much truth about life as you can as well, because it's your life. Again, I pray we can move in that direction. This is what I know. If it ain't good, that means God.

ain't in it and it won't last. So I take comfort in good will prevail. It always does. It just might take a little longer sometimes than others. All righty, in other news, looks like we're on the brink of a successful COVID vaccine. Even Dr. Fauci is presently surprised. Nice to hear something positive from him. And the stock market certainly reflected it. Investors sold off shares in certain types of companies and piled into other categories, you know, because of the promising vaccine news that was this week, this Monday, stocks that had been clobbered by the pandemic are looking much more attractive right now and vice versa.

You know, Boeing, Chevron, Exxon, Citigroup, and General Electric are all way up. And then Amazon, Apple, and Facebook and Netflix and Zoom are down. In the meantime, don't waver from your vitamin D, C, and zinc supplements and get your exercise in. That's not a cure for COVID, but studies are showing and continue. you to show, as I've shared with you here on the show, that that regimen will do a really good job of keeping you out of the hospital. And Uber.

Uber has a new feature. It's a big success to them, right, in California. Those are almost going to be no Uber or Lyft at all in California, but that did not pass. So that's good for all the people that depend on Uber for some revenue or all of their revenue. But they've got a new feature that will let you reserve rides up to 30 days and in advance and pick your favorite driver. You get to pick your driver. So I thought that was kind of cool.

And then the Masters starts this week. And in case you missed it, it's worth Googling. John Ram during his second practice round at Augusta, skipped his ball across the water on number 16 to a hole in one. It's probably the one of the more remarkable golf shots I've ever seen in my life. And even if you're not a golf fan and you know nothing about it, you would really appreciate it. So you can go Google that. John Ram, his last name is a lot of.

R-A-H-M. And it was on his birthday, no less. And continue with the Masters, the Champions Dinner is on, and Tiger Woods is serving fajitas and sushi. It's customary that the reigning champion hosts the champions dinner and picks the menu. So Tiger 1 in 2019,

one of the greatest moments in golf that I've ever witnessed. One of the greater sports moments, really. I've just, I don't know, I'm really fond of. of Tiger. I saw him and played at the same course as he did when he was much younger. And I remember him at the driving range. And I don't know, he was like eight or nine years old and just had a giant crowds around him. I think I was like 14 or 15, something like that. I was watching this kid smack the poop out of the ball and it was just amazing to watch. So I've always just had a fondness for him. And golf is so much better when Tiger is playing.

And gosh, 2019, it seems like years ago that he won, doesn't it? Does to me. But it was just last year. And Tiger tees it up on Thursday in 2020, grouped with Shane Lowry and Andy Ogletree. So I am wishing Tiger all the best. I know exactly what I'll be doing this weekend. Be sitting there right there in front of the TV and watching him and rooting him on. You know, when Tiger's playing, just everything seems better. Last piece of news.

Save the date. The Epic Intensive is on the calendar. January 28th through the 30th, 2020. Excuse me. That's 2021. Ah, we got an error on the website. So that is 2021 if you happen to go there before I fix it. And this will be held virtually in Las Vegas, Nevada.

But there's also going to be a live component as well, just as there was this last epic intensive. So it's a plan to make, we're planning to make it available for live attendance, for those that want to be here in person, but likely for a limited capacity. But who knows what the world is going to look like in in a couple months? I mean, things changed so fast in 2020. Hopefully we'll be past this.

Hopefully this vaccine thing will start calming people down and loosening things up. Fingers crossed. So maybe we'll be a full capacity city at that time. I know we're up. We moved from maximum capacity of 50 people per event, 250. But just this week, the governor came down and waved his little magic wand saying that, be careful because we're experienced a lot. A lot of new cases. So if COVID and the powers that be cooperate,

maybe we can have more than the 35 people or so we had this time. All right? God willing. So go to Epicintensive.com to reserve your seat. The sooner you do, the cheaper it will be. And at this moment, tickets are at a ridiculously low price. Epicintensive.com. Now, I shared something at this last intensive that I had never shared before.

and I shared it in the context of creating custom rat race escape plans for the attendees. That's one of the things that we do at the intensive is everybody leaves with a custom rat race escape plan all revolving around what they know, the time that they have available, the money that they have available, the credit they have available, the who they know, the assets that they have already to work with and how they can get more and blah, blah, blah, blah. So, what is that those come out to be very customized for each individual. and what I shared there in the context of that right at the end after we completed that, I shared my five million dollar lessons of which each one had I learned prior to getting started

would have saved and or made me a total of at least $5 million. And in the spirit of the great Mark Twain when he said, learn from other people's mistakes for you won't be here to make them all on your own, I share with you those five lessons as much. my team thankfully recorded them to be preserved forever. All righty, enjoy. Wallace D. Waddles in his book, The Science of Getting Rich stated, to become rich, you are to give every man more in use of value than you take from him in cash value. And in the spirit of those words, I'm going to give you five million dollar lessons

that I just gave to a group of aspiring real estate investors recently at our Epic Intensive. And I gave these specific lessons in the context of creating their custom rat race escape plans. It's one of the things that we do at the intensive. And you can check Epicintensive.com for the next dates if you'd like to join us. But either way, I don't call them million dollar lessons because

that makes a good title for a lesson or a video. But more from a literal sense that had someone shared these with me when I got started or at least a long time ago, I would have saved millions of dollars or even better earned millions more than I have. But before we begin,

click the subscribe button and ring the notification. bell because I post cool stuff like this each and every weekend. You don't want to miss it. Let's go. So I got some million dollar lessons that I've learned along the way. And when I say million dollar lessons, I didn't call them that because it sounded cool. Whether you paid a dollar or $47, $547 to be here, whatever it was, I am literally going to give you a million times back in your money and use of value. Million dollar lessons. Slow is smooth and smooth is fast.

I didn't come up with that. Someone told me that and I was like, that's exactly my situation. So I've been doing this for in the real estate side of things of 15 years. And what I mean by that is entrepreneurs, we are wired to want the world and then we want it fast. I want you to kind of resist that and just go slow. Because if you go slow, you do it right. And if you do it right, that's faster than going fast and doing it wrong. So what that means is find the right deals, the right deals for you that are going to improve your situation. So, if on your asset list, the highest performing asset you had was 4%. Then you should look for deals that pay you more than that to improve your situation. If the highest performing asset that you had was 13%,

then you should look for deals. The right deal for you would be something that pays you more than that. This is probably my most valuable lesson I could possibly give you is finding the right team. I'm specifically talking about contractors and property managers because it's probably, If you're going to live off of your passive income, off your cash flow, the secret to positive cash flow and having that for the rest of your life is not the property. It's not the real estate. It's the property management. Every dime I've ever lost in real estate has been from a bad contractor or a bad property

manager. The real estate is safe. There ain't no risk there. It doesn't take an extended education to pull this off and do it well. It's the people that are risky. And third would be to go deep before going wide. Us as entrepreneurs, we want to do all kinds of stuff. And we can do all these things good or so-so.

And it fulfills that need, that creative juice and that desire to create. But get really good at one before you start the next one. And this would go with your markets. It would go with your asset class. It would go with your strategy. It would go with your team. It would go with your marketing. It goes with when your conversion process, whatever it is.

is get really good at the one thing. And right when you think you got it down, I got this house performing and it's performing well. I got a great property manager. It's paying me cash flow. The expenses are down. The performance is up. This one is fantastic.

I got it figured out. Go even deeper. Right when you think you got it down, that's the time to dig in and do that one again, the exact same way before looking out, oh, look at mobile home parks, right? Or storage facilities, right? Or I got one fan, one house.

I'm bored with this. I'm going to go do multifamily now. Right? I'm just asking you to resist that. You can do it. People have done it and have done it well. But go deep before going wide. Get really good and master that one asset class in that one market.

Leverage to grow. Pay off to sustain. So to get on this trajectory and go even steeper, we talked about it yesterday. Real estate provides us the ability to leverage like no other investment opportunities available to the average person. That's why real estate has produced more wealth. than anything else. It's that single factor really is the leverage amongst other things,

but it's the leverage that multiplies that speed. So that can get your trajectory up really, really fast. And once you hit your goal, wherever it is, now you can pay that off to sustain it. Although I'm becoming a little bit more risk averse and not subscribing to that so much. But I know I'm challenging a lot of beliefs and a lot of ideas, maybe some lifetime of ideas, a lot of deep indoctrination. You still might, okay, I understand that. I get it, but the debt still scares me. And if that's your situation, I'm totally okay with that. It's not a problem with me. But I do want you really to see you set yourself free first, and then if you want to preserve that and protect it, then pay off the debt that you've acquired building it. But the leverage is going to

allow you to go faster. Another big painful one for me is delegate. Don't abdicate. Ash is my assistant. Y'all still out there? Give ash a boom. All right. So Ash is my assistant. Every day, well, I have to say every day, but routinely during the week, I will create a list of to-does and I will give some of those, delegate some of those tasks to Ash. Throughout the week, Ash will say it's done or I will check up with Ash and ask if it's done. Right. So that's delegating. And we go ahead and we accomplish stuff and we move forward each and every week. Addicate is here, Ash, here's the keys to the office. Go run the business. I'm going on vacation. Don't call me. Don't bother me. I'm resting. That's abdicating. And I've done that a few times with apartment buildings and it's burned me.

And I've done that with property managers. So this is why I want, I want you to manage your property managers in the same way that you manage your real estate. Do you conduct your due diligence on your team members in the same manner that you conduct your due diligence on your real estate. The real estate is safe. That's the easy part. It's really tough to mess that up. It's a supply and demand and buy low, sell high. It's the management of it. where it gets sticky. Number four is eliminate the single points of failure. If you are dependent on one property manager and something happens to that property manager, then something happens to your assets. It's typically not good. And then you got to scramble to go find another property manager and then

you give all your properties to them. Hopefully they know what they're doing. And if you don't get the right one, then that's going to be an extended period of pain for you. And then you got to go find another one and then another one until you actually get it right. But if you had two property managers in mind and you had your portfolio divided up and something happened to one, you have someone there that can pick up the slack while you then you go find the second one. Mercedes and I, we got started in the virtual investing in Memphis, Tennessee. We couldn't believe being from California that they actually had houses there for $50,000 that rented for $800 a month.

That's a good investment, at least on paper it is. And as long as you have somebody there to manage those properties, it's a good investment. We had 60 plus properties between ourselves and our clients and our investors, all in Memphis, Tennessee. And I remember the day, we were living in Pasadena, Mercedes comes in in the morning, I'm sleeping. She busts open the door. Matt, Terrence died. Terrence was our property manager. And boy, talk about a fast wake-up.

I popped out of Ben and I was like, oh my gosh, what does this mean? And really, when they say like your world flashes before your eyes or your life flashes before your eyes, it just, was a fast forward motion picture of disaster in my mind. And it actually came to fruition and it played out. And that was eight years ago, nine years ago. And that still creeps up and kicks us in the butt every once in a while. It still bites us and we still have to write a check for something here and there. Now, we've learned that painful lesson.

We won't make that mistake ever again. And so we have at least two property managers in every market. We have at least two contractors in every market. We have at least two realtors in every market. Some of our markets, we have three and four. And they all know about each other. and we make sure that they know about each other. Not in an evil way, just let them know that you're not the only game in town.

And once we started doing that, it's still not a perfect system, but it's way better, and we watch expenses drop and we watch performance rise. The last thing I would share with you, particularly if you're just getting started, or if you're just getting restarted, perhaps you have tried this before and had some tough lessons. Understand that you're always winning or you're learning. When I was making this transition, from the music business and my little hiatus there bagging groceries. I did a lot of research. I really missed my money that music provided me. I did a lot of research. What do I have to learn next?

I knew I had to learn something new. I wanted to commit myself to something that gave me the same income earning potential. And that grocery store managers I explained yesterday, he pointed me towards real estate and it was the best advice I'd ever received. But my eyes and ears are always open. I'm always looking for something better. And when it comes along, I will switch. But here I am 15 years later and I haven't found anything. This is it. It's produced more wealth than anything else on the planet, any other industry, any other investment vehicle.

I showed you that pie chart yesterday, that 1% that reaches the age of 65 with a net worth of $5 million or more. 74% of them have real estate in common. They either made their money there or they preserved their money in there. If you have a bad experience and if you do this long enough, you absolutely will. Just make sure you walk away from that experience, that bad experience with the right lesson.

Because you will hear, oh my God, I had two properties. It was the most disastrous thing I've ever done. I'll never be a landlord again. Forget that. You hear that all the time. Oh, I lost my shirt in 2007. That's a sucker's bet. Don't do that.

Just wait until the bubble pops again. Everyone's going to lose everything again. That's the lesson people walk away from this with. And they are on this trajectory and they said, bad lesson. Oh, forget it. I'm just going to do this. This is the best option out there. And like I said, if something better,

comes along, I will be the first to let you know about it because we're going to change the podcast and everything. But it hasn't happened and I don't see it happening. The discipline for you, Mark Twain, has a great quote. Learn from other people's mistakes because you won't be here long enough to make them all on your own. And it's with that quote that I give you these $5 million lessons as they are all inspired by my own mistakes. I've made them already so that you don't have to. And they are yours for free. If you found this episode valuable, who else do you know? There's a good chance that you do know someone else who would when their name comes to mind. Go ahead and share it with them and ask them to click the subscribe button when they get here.

I'll take great care of them. All righty, that's it for today. God loves you and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio, 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. more top business podcasts, visit C-sweetradio.com.