Epic Real Estate Investing - 5-Step Action Plan for a Shifting Market | 979

Episode Date: April 6, 2020

In today’s episode, Matt shares the 5-Step Action Plan for a shifting market that will give you an ultimate breakthrough with your real estate investing! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey there, rock star. It's Creative Acquisition April. And yesterday I gave you my market prediction. And today, I'm going to give you a five-step action plan. And it's going to give you a big breakthrough, whether my prediction was correct or not. This is Terrio Media. Success in real estate has nothing to. 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-a-a-ac-com. Here's Matt. Hey, Epic Investor, it's Matt Terrio from Epic Real Estate. This is where we show people how to invest in real estate with an emphasis on retiring early. This is the epic real estate investing show. If it's your first time here, really glad that you found us. Welcome. Make yourself at home. Make yourself comfortable. If you like what you hear, make sure that you hit the subscribe button before you go. And if this is not your first time, welcome back. And thank you for sharing this with your friends and family. I owe this entire decade of greatness to you for doing that. And so I am eternally grateful.

It is Creative Acquisition April, where the entire month, I'm just filling your creative financing toolbox for the shifting market filling it up, because if you missed last episode with my market prediction and what there is for you to do about it, make sure that you check it out because this is all really important right now, as there's going to be my prediction. There's more real estate changing hands the next year or so than we've seen in the last several years. And that represents huge opportunity for those that know how to get in the middle of it all. You know, I escaped the rat race in a shifting market very much like the one that will be,

experiencing and I've been waiting for another opportunity like this as just because, you know, I'm so much more experienced. I'm so much wiser and knowing what I know now, presented with a similar opportunity, I know I could just do it a lot faster. So that's what has me a little bit excited about it. I certainly wish the circumstances that were creating this opportunity were different. I would certainly trade the opportunity. for this to go away because it sucks.

It's miserable being in quarantine right now. But you know what? You and I, we've got no control over that. So we just got to deal with it. We can only control what we can control. And the truth is, as sad as it may be, the divide between the haves and the have-nots is going to be widened as a result of this.

We've got no control over that either. But it's going to happen. But what you do have control over is which side of that growing chasm you want to end up on. There you've got some control. You can do something about that. And, you know, if you've got some regret from the past also for not taking advantage of the last downward shift in the market, then I guess be grateful.

You've been given a second chance. And that's why this month of April here is really just, it's so important. Creative Acquisition April, because, you know, if you get this all wrong, If you don't know how to incorporate this into your normal real estate investing efforts, regardless of what they've been in the past, this is going to make a difference. And if you don't use them, you're going to leave a ton of money on the table in missed opportunities. And you're going to look back again, kicking yourself, asking, why didn't I just do what I knew to do? Like, you probably even have an experience like that back from 2008.

you knew what to do, you just didn't do it. So you've got an opportunity to make that right. Not very often do we get a chance to take a deep burning regret like that and do right by it and correct it. But this could be that opportunity. So if you get this part right and you move forward with the right game plan, the right strategy, and you back it up with massive action, you're going to experience a massive breakthrough in your real estate investing. you're going to get greater deal volume. Your cash flow creation is going to multiply.

You're going to, at the same time, you'll be managing your risk. There'll be less money down you're putting in place. Now you're protection from overpaying. You're going to have an amazing hedge against inflation. And that's really key right now. Even if you don't understand it, just control as much real estate as you can. It'll take care of itself. But with the massive amount of money that the government is, you know, inserting and pushing into the system,

all it does is it devalues the dollar. It's going to reduce your buying power in the future of how much that dollar can purchase. And it gives a nice shot in the arm to the economy right away, and that's what it's for. But long-term effects are not good, and you can protect yourself from that by owning real estate, by owning tangible assets, the necessities of life, because those values don't decrease. we still need and value greatly shelter, right, a roof over our heads. So it's a huge hedge against inflation. If you look back in history, inflation and real estate appreciation, they go hand in hand, and it preserves the buying power of your dollar.

Okay. Most people don't realize, like, your real estate actually didn't appreciate. It actually didn't double in value. Your dollar's value got cut in half is what happened. And that's what's happening underlying in the side of the process. So controlling real estate, huge hedge against that, and you can control a lot more using the creative strategies. And number five is you're just going to have a whole lot more options after this is all said and done. The more property you control after all of this, the more options you're going to have to establish and strengthen and bolster your whole financial position.

And if done correctly, you will never have to work again. All right? These options, it's what creates the freedom. And these are all benefits of incorporating creative acquisition financing terms into your offers. and if you want to know how to do that, if that's important, the first thing you're going to want to do is grab the two cheat sheets that I created for you, the 21 creative financing terms and templates every investor needs for a shifting market. It's almost a tongue twister.

But you can get those free. Quick downloadable copies at epic breakthrough.com. If you try over the weekend and had some issues, it's all fixed now. Go to epicbracthruc.com and they are yours. All righty. So the action plan. We went over the prediction and the different types of market scenarios you could be faced with and the probability of each one.

If you missed that yesterday, go check it out. But now you've got an action plan. What do you do with that information that you got yesterday? All right. So first thing, it's five steps. Step one. You've got to get versed in this. You just can't ignore this, right?

If you've been a one-trick pony wholesaling properties, you've got to give it up. Okay? give it up. You can still wholesale properties, but that can't be your investor identity. You can't call yourself a wholesaler. Way narrow, limited thinking there. And it's going to cost you a lot of money. Even if you make a lot of money, it's going to cost you a lot of money. All right, so you've got to get versed in the creative acquisitions. And you can start by grabbing the cheat sheets that I just created for you. Stay tuned here all month and do more research on your own. You just got to, you've got to absorb this. You've got to educate yourself and train yourself on this.

that there's no limit to the creativity that you can incorporate into your offers to create win-win outcomes between you and sellers. Giving sellers the fast relief that they're looking for, that's what they want, and getting you the cash flow and wealth creation that you're looking for. That's what you want. That's a win-win outcome. And if you've been listening to and paying attention to all of the young generation of wholesaling gurus that are out there, that's not going to be the best resource for you in the coming

market. They might talk about it. They might share about it. They might appear to be teaching you and training you about it. But it's not coming from experience. It's coming from educated guesses or regurgitated secondhand information. You want to align yourself with seasoned, experienced investors, pay attention to them who have succeeded in a shifting market. This is how I built my whole passive income portfolio, was in the last downward shift. Another great resource. is Ron LaGrand, the godfather, really of it all. He's got a great YouTube channel when it comes to creative strategies. He's an old-timer.

He's been through this several times. He thinks very differently than the new generation of quick money wholesalers. His time-honored strategies will carry you through. I got a great deal from him. Another person is Peter Fortunato. He's another one of the great ones. And sadly, a lot of these great creative minds they're getting old, they're dying.

If you have the opportunity to attend a Ron LeGrand or a Peter Fortunato event, do it soon, okay? When the live events are allowed, when gatherings of 10 plus, 50 plus more people are allowed again, go research them and go. Okay, go, go, go. It's going to really, really transform your thinking and turn you into a, it's just going to take your whole investing up a level, okay? And if you've ever thought, gosh, how does Matt know all this?

Where did he learn all this stuff? Who was his mentor during that downward trend? And there's the old guys, like these. These guys. They've been through it before. They know how to navigate it. And it's not, they didn't read it in a book. They've lived it.

And they've lived it several times. Okay? And so that's where I got it from. And that's why I know what I'm doing this time around as well. Because someone held my hand through that process. One of these old guys held my hand through this process last time. and look at that. Now I'm the old guy.

It's pretty cool. So that's number one. Educate yourself, train yourself, invest in yourself for this. Number two, double down on your lead generation. Okay? You got to generate the leads. Got to create the opportunity. That doesn't go away.

That doesn't change. You should be converting more of these leads. You should be generating more of them based on the same efforts of the past. But don't take that for granted. Okay. Go hard on the lead generation. I think Craigslist is going to be a greater source of opportunity than it already is throughout this year. I think working Craigslist with massive volume, massive consistency can create a lot of opportunity.

I think your car magnet signs, if you don't have them get them, they should be on your car as you drive around this year for the rest of the year for sure. Don't leave that to chance. If you have a second car, put the signs on there too, and then just go park it in a visible location on the weekends at Walmart or Costco or Home Depot. just put the billboard out there and put it like part of the parking lot where people can actually see it. Don't park in between two tightly snuggled cars and put in a tightly snuggled parking space, okay? Make sure people can see it. You park where people can see it. And then just leave it there and pick it up in the evening and drive it back in the morning and park it again.

All right. So, also broad digital marketing campaigns on Facebook and Google, like the Internet ads, the digital ads, really cheap right now. plenty of graphs, plenty of information online, showing how the cost of all that is coming way down. Because in a time of crisis, most business owners, they know they're not supposed to cut their marketing, but they all do because it's typically their biggest expense of their business, maybe that in payroll. So to help keep afloat or manage the business, they cut that first, which is the biggest place you don't, I mean, you just don't want to do that. And they all know it, but still, we're all.

human beings and it's this big giant chunk of money that goes out each and every month and people get nervous so they stop it so they can keep that money they revert to defense and with so many of them doing that the demand for the digital ad space has been reduced significantly so those digital marketing campaigns are really cheap right now if you don't have anybody to do that or you don't know how to do that you can go to ubiquity dot agency ubiquity dot agency it's not dot com not dot net it's dot agency ubiquity dot agency ubiquity dot agency and right here, Miguel on the Epic team can help you out with that, okay? But you just want to go broad.

And right here inside of the Epic community, going broad, it seems to be the best impact right now, or having the most results traditionally, or just as of traditionally, I would say as recently as four weeks ago, it was all about going for a nice, targeted audiences. But now just going broad with just a simple message saying something to the effect that, hey, I'm still buying houses. I'm still buying them.

Okay. Also, the direct mail. I'm really targeting my direct mail right now, really stacking those factors. I'm going after absentee, out-of-state absentee owners that have liens and they're vacant houses and liens. And in my direct mail, because there's so few of them, I think there's 96 on my list at the moment right now that fit my criteria in my market. With those 96, I'm including a three-optional letter of intent, incorporated into a cover letter. and in closing signed purchase agreements, two signed purchase agreements, one for them, one for me with instructions. If you find this acceptable, sign that copy and keep one for yourself and place the sign copy and a self-address stamped, the self-address stamped envelope that I included and just sent it back to me, and we can close in as little as 14 days. So that's what my direct mail piece looks like right now. Okay, so double down on your lead generation.

That's action step number two of our five-step action plan. action or step number three stay the course with your normal interview style conversations with sellers okay you're a problem solver there's going to be a lot more problems that come to surface people are going to be attracted to your solutions through your lead generation and uh but don't get anxious don't get excited because your phone might be ringing more and you and you've got more opportunity act as if it's business as usual as it should be don't skip steps you've still got to build rapport. You still got to build trust. You still got to demonstrate your competence. There still has to be motivation within the seller. Okay. But you become likable. You become trustworthy.

You build that rapport. You do that by listening and asking questions. Interview style conversation on that first one for sure. And then close on the call for the appointment and go. All right. So three, stay the course, don't skip steps. Number four, when you get to the property, when you get to your appointment, tour the property as you normally would, listening to the seller and asking more questions. Align yourself with the seller.

And make the market the bad guy. I've been saying that for as long as we've had a podcast, it's always been my position and it's always worked. It's been a little tougher to make that work, but it still works. for the last decade in an appreciating market. But now the market has turned really bad. That bad guy is really bad.

And that's leverage for you. It's not your fault. You don't have control over it, but it's what so. It exists. It's a reality. And you don't want to overpay for a property, right? The market determines the value. A property is only worth what someone is willing to pay for it.

And as the market shifts, and if people stop paying the price that they were paying four weeks ago, that means the values are coming down, and you should not pay more than that either. The market is a bad guy. You can't pay more than the market's going to allow you to pay, and the seller needs to understand that. And then go for the equity, as you normally would, and when you do reach an agreement or you don't reach an agreement, for example, say if you reach the agreement, you're going to do this. But if you don't reach an agreement and the seller has their number that they're stuck on, same response. The follow-up question then is, how much of this do you need right now? And then just be quiet and listen.

That's how you start introducing the terms. That's how you start. And they might say all of it, which probably most of them will. Or they'll say they'll look confused. Like, why do you ask? What do you mean? Okay. And so the response is, well, I was just thinking,

if the market would actually allow me to offer a little more overall, how much of this would you need right now if I could give you the rest later? Okay? Right now it's just a probing question. Just a probing question at this point. But it's the question to insert just into your normal existing process that you have with sellers. Business as usual. And as the conversation has come into a close, ask, how much of this do you need right now?

Now, can I ask, I got a weird question. It might be a weird question. Can I ask a weird question? Like, even ask permission to ask the question, right? And this question for it to be effective, it comes at the end of the conversation. So just don't get all excited about the creative terms and the creative structures that we're talking about here. Don't get all excited about that, about the huge potential for all of that right now with these creative financing things. And lead with that question.

You still need your seller motivation. still need rapport, you still need trust. Don't skip the steps, all right? So number three was to stay the course. Number four is two of the properties you normally would, but then insert that question of the process. How much do you need of this do you need right now? The number five of our five-step process is present the offer in writing. Even if they say no, thank you. Put it in writing. It changes the dynamics of everything and it gives you the ability and a good reason to actually follow up

when you leave it in writing. So leave it in writing always. Jeff and I, Jeff Garner, that runs the ground in Pound School, we have two totally different schools of thought on this. But it's just worked for me enough where people have called me back and say, you know, I've been thinking about it,

let's do it. Because I put it in writing. I have never once, had that call from a seller, from a seller that I did not leave an offer behind. I always had to follow up myself. But those calls will come out of the blue. Motivation is increasing.

The needs from sellers is growing. That relief is, it's going to be real. It's going to be tangible for them. And they're going to be looking for solutions. Okay. And because your offers are of a creative nature, you'll typically be able to beat your competition. by offering more.

But you won't be losing by offering more. Not if you do the structures correctly. You'll actually be making more by offering more. Okay, so always, always, always leave an offer in writing, present the offer and writing. If you get this far and don't present the offer in writing, this was all for nothing. You got all the way to this point and as a waste of time.

Okay? You're not going to get every deal, though. Nor should you expect to. Nor should you want to. If you're getting every deal accepted, you're offering too much. You need to back up. You need to back it down a little bit. Okay?

If you're getting everything accepted, you're offering too much. But don't expect to get every deal. You will get more deals. I promise you that. And as always, if you're consistent and persistent with the money-making activities that I just laid out for you, the five-step action plan, you're going to do significantly more deals than you're currently doing. Okay? So one is start educating yourself.

Immerse yourself in these strategies. and you can start by going to epic breakthrough.com and just download those sheets and just sit with them, stare at them. Know them forwards and backwards, okay? Number two, double down on your lead generation. Number three, just stay the course with your normal interview style conversations

with that initial conversation. Number four, tour of the property as you normally would, but just insert at that one question. How much of this do you need right now after it's all said and done, right at the end? And number five, present the offer in writing, always. You might be wondering, yeah, but what about the quarantine issue and da-da-da and meeting people face-to-face?

I got it. So, personally, if there's mutual consent and the seller doesn't mind me coming over, I don't mind going over. So that's where I stand. If the seller doesn't want me coming over, then I can go ahead and take this process as much as I can over the phone, but make it contingent on these guidelines lifting and me being able to actually inspect the property.

Okay. But don't default to that. I would go for the appointment. If you want to wear your mask, wear your mask. If that's going to make you feel comfortable, then do it. Okay? Take your hand sanitizer. Take your mask.

We just signed docs last week, and the mobile notary came over with a big bottle of hand sanitizer, and with every stroke of the pen, he stopped to wash his hands. So he was very careful. And so if that's what you've got to do, that's what you've got to do. All right? they're looking for relief, and these extraordinary times will take extraordinary measures.

And if you do it correctly, you're going to look back on this as the time that changed it all. This was the big breakthrough. All righty? So where are you going to get all of the money for these creative deals? Because you're still going to need some, not as much as you normally would in a normal traditional market, but you're still going to need some, especially if you're going to do this in volume. Well, it's easier than you think, and I'm going to go over that on. tomorrow's episode of the epic real estate investing show.

And if you found this episode today valuable, there's a good chance. You might know someone else who does. Alls Kerr Wood also. So if you think about it, if it comes across your mind, share it with them, ask them to click the subscribe button when they get here and I'll take great care of them. All righty. So that's it for today. God loves you and so do I.

Peace, blessings and success and good health to you. I'm Matt Terrio, living the drink. You didn't know home world, we got to dash low. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.