Epic Real Estate Investing - 7 Habits of Self-Made Millionaire Real Estate Investors | Episode 189

Episode Date: January 11, 2016

Did you know that 80% of millionaires are not born into wealth, but are self-made? Many of these millionaires share daily habits and beliefs.  Listen in as Matt discusses the 7 most important habits that separate the wealthy from the financially challenged.  Enjoy! ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E.ducation P.roperties I.ncome C.oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

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Real estate investments involve a high degree of risk. Residential income and returns may vary and are not guaranteed. Past performance has no indication of future performance. Nothing herein shall be construed as investment, tax, legal, or accounting advice. This is Terio Media. Broadcasting from two. Terrio Studios in Glendale, California. It's time for Epic Real Estate Investing with Matt Terrio.

Yeah. Hello. And welcome. Welcome back. Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. You just got to shift your focus from making piles of money to making streams of money, change that one thing just one time. And you are on your way to financial freedom. It is not the most exciting path.

but it is the fastest. And once you get there, life then becomes exciting. So, as I was getting prepared here to put this awesome episode together just for you, I stumbled upon a article and I thought, you know what? This is a really good article. I'm just going to go ahead and I'm going to share it with you. So that's what we're going to do today. I found this article from fastcom.

called Seven Habits of Self-Made Millionaires. And I think it applies to this crowd. I think it's relevant to this crowd after I went through it. So it's the seven habits of self-made millionaire real estate investors. That's how I'll tweak it. And it's written by the original article, Seven Habits of Self-Maid Millionaires, is written by Stephanie Vaza. And the article goes like this.

I'll just read loosely from it and comment. Most millionaires aren't born. They're self-made. In a survey by Fidelity Investments, approximately 80% of people who have a net worth of $1 million or more did it without a trust fund or inheritance. You know, and as the classic Smith Barney commercial from the 70s used to say, they make money the old-fashioned way. They earn it. I remember that. Maybe you guys are too young for that.

But I certainly remember that commercial. It was played ad nauseum. And they also have habits that help them accumulate wealth. Your habits are the reason why you're rich. or poor, says Tom Corley, author of the book, Rich Habits, the Daily Success Habits of Wealthy Individuals. I think I actually interviewed this author on my other podcast. No, no, no, no.

That was Randall Bell, things called Rich Habits, Rich Life. So similar title, but different. So Tom Corley says, in fact, it's often two or three habits that separate the wealthy from those who are financially challenged. Just two or three habits. So Corley, he's studied millionaires for the last 12 years and says many of them share the same daily practices and beliefs. And here are seven habits of self-made millionaires, quote unquote, real estate investors. I'm just going to insert that for the sake of the podcast.

One, they read. Self-made millionaires are readers. And Corley says this is the number one habit to adopt if you want to become wealthy. The number one habit, that's saying a lot. According to his study, 85% of millionaires. read two or more books a month, and they choose books that help them grow, including topics like careers, biographies of successful people, self-help, health, current events, psychology, and leadership.

And the key to success in life is growing your knowledge base and skill, says Corley. Devote 30 minutes or more each day to learning by reading books. If you do, it will set you apart from the competition as most people do not read. So that's reading. He says that's the number one. it. So if you're not reading at least two books a month and you want to become a millionaire, maybe that is probably an important thing to do for starting in the new year. Okay. Number two, they pursue things that interest them. People often enter careers for the stability factor,

but wealthy people pursue their interests. They put their ladder on their own wall, says Corley, when you're passionate about what you're doing, you work harder. And that makes a lot of sense. Number three, they find a mentor. This is a big. This is what really turned my entire life around when I did my do-over. When I got out of the music business and I was bagging groceries, it was a series of mentors that really pulled me up. And the author writes 93% of self-made millionaires in his study attribute their wealth to having mentors.

93%. That's kind of like all of them, right? Finding a success mentor in life is one of the least painful ways to become rich, says Corley, it can put you on the fast track to success. I like the way you put that, the least painful ways. I've always said it's the fastest way, but I would, I guess it is, now that I look back, it is, it was pretty painless as well. And Coralie says there are five types of success mentors that you can have.

One is your parents. Parenting is very important when it comes to being a millionaire. Parents are your first mentors. If they teach children good daily success habits, they'll struggle less in life. So keep that in mind as you're raising your youngans. Number two is teachers. Teachers can reinforce the mentoring. children receive at home from their parents or step in to provide the success mentoring absent at home.

So teachers, number two, type of mentor. Three is a career mentors. Finding a mentor at work you admire, trust, and respect can lead to success in life. Choose someone at least two levels above your rank, is the advice. Next is book mentors. Mentors don't have to be real relationships. Sometimes the best source are found in books, particularly books about successful people, says Corley. And the last mentor is yourself, also called the School of Hard Knocks.

You can mentor yourself by learning from your own mistakes. This is the hard path to success, but those mistakes and failures carry significant costs in both time and money, says Corley. But this is also the most powerful type of mentoring you can get because the lessons you learn are infused with intense emotion and never forgotten. Boy, I can vouch for that because, you know, you can hear all the types of stuff I've been talking about for the last five, six years. And, you know, when you go out there and put it into practice, a lot of people just end up kind of doing it their own way anyway, and then they get that painful lesson, and then all of a sudden, yeah, that guy was right.

I mean, I have so many experiences with my parents. Like, I thought they were crazy when I was a teenager, and now that I'm older and I'm raising my own, it's, wow, they were right on the money. The other thing here is if you don't have a mentor, if you, you know, maybe your parents are with this or you don't have the best relationship with them, or if they didn't set a path or a model that you want to follow,

or your teachers weren't the best, or, you know, you didn't go very far in school, or you're inside of a pursuit such as real estate investing where you might not have access to career mentors. It's not like you're just walking down the halls and you bump into a mentor, you can knock on the office next door and ask a guy that's above you.

And books, definitely, we all have access to books and you also have access to yourself. But if you don't have access, hire a coach, absolutely hire a coach. I am a coach that would be somewhat of a self-serving statement if you wanted to be cynical and resigned about it. I don't care if you hire a coach. I have three coaches I have hired right now that I am working with in different areas of my life or different

Yeah different areas of my life and I've paid them a lot of money because I am so in tune with how fast and his way he puts it the least painful way to get what you want So hire somebody I've belonged to have I've mentioned this several times I belong to a very expensive Mastermind group an annual dues of upwards of $20,000 and I pay that every single year because I know what comes back to me. I know what gets what I get back from it. You know, the author of this book says reading is the number one habit of self-made millionaires. I think a mentor is even more important than that.

Reading certainly goes in with that. It's a type of mentor when you're reading books. But get a coach and hire one if you must. Okay. If you don't have access to a mentor that's going to take you under their wing and, and, you know, provide you all of their wisdom for free. Go find one. You're going to move along so much.

faster. And that goes for real estate investing or anything else that you're pursuing. So number four habit. They use dreams to set goals. Before a millionaires identify goals, they do something that Corley calls dream setting. They write down what their ideal life would look like. Then they use this script to create a bullet point list of dreams. Goals are then built around each dream. So think of dreams as a ladder and the rungs are your goals. He asks, or he says, ask yourself what I need to do in order for each wish or dream to come true. And then ask, am I capable of performing those activities? And then do I have the necessary skills and knowledge?

Then take action. I like that. It's good. You know, in my book, Do-over, you know, we kind of, I think the first or second chapter, we're talking about setting a giant dream. And we set these milestones and minor stones that all you have to do is pluck off one those little milestones at a time. And if you keep on doing that, eventually you've landed in your dream. So he's talking about the same thing here. It's just, he's using rungs of a ladder as, as his metaphor.

So, yeah, about four, as they use dreams to set goals. Number five, they write to-do lists. Goals are only goals when they have two things. 100% achievability and physical activity, says Corley. Millionaires break down goals into physical action steps that make up their to-do list. And many have lists that follow a habit. Millionaire process success. Millionaire's process success, says Corley, when you create processes, you don't have to think,

which takes energy and contributes to decision fatigue. Habits are valuable because they don't rob your brain of the fuel that can be used to do something else. So to do lists. Number six, they create, this is my favorite, they create multiple streams of income. We begin each and every episode of this show with that statement right there.

Stop pursuing piles of cash and create streams of income. Multiple streams of income. Self-made millionaires do not rely on only a single source of income, says Corley. Instead, they develop multiple streams and most have at least three. 65% had three or more streams of income

that they created over time, he says. Diversifying your sources of income allows you to whether the economic downturns that always occur in life. Revenue streams include rental real estate, stock market investments, annuities, private equity investments, part ownership, and side businesses, ancillary products or services, and royalties. It's so, so important.

That is the future. That is the key to exiting the rat race. That is the key to becoming wealthy. It is creating those multiple streams of income. You know, a mentor of mine way back said, this is what wealthy people do is he says they find one thing that they're good at. and then they create multiple streams of income from that one thing. So that's what I've always pursued.

But then he talks about the author of this book, talks about diversifying your sources of income because it allows you to weather the economic downturns that always occur in life. And I've taken that to heart recently before I even read this, is I started my own grass-fed way protein powder. I did that with my personal trainer. And it's a body-do-over protein.

And you can go there and purchase that now, and it's doing actually pretty well with almost no promotion whatsoever. So bodydo overprotein.com. There's my promotion for it. Okay? That's about the extent of what it's been. So, yes, create multiple streams of income. Biggie, right?

So you're in the right place. We are of a like mind here. Seven, they avoid time wasters. Millionaires believe money can be recouped. But the bigger risk is wasting time. Such a big deal. You know, when we invest our time in anything, it's lost forever, says Corley,

yet because we are all given what seems to be an abundance of time, it has very little value to us. 67% of self-made millionaires and corley study watch less than an hour of TV each day. And 63% less than an hour a day on the internet and activities such as Facebook or watching YouTube videos. This freed up time for them to pursue their dreams, goals, read, learn, exercise, volunteer, and network. So definitely, I think this is a biggie and this is something that I've focused on here. the last, this last, I don't know, 12 to 18 months, really looking at my time as my most valuable asset and delegating certain activities that take my time, hiring people. You know, I've been kept in no secret that I've got four, five, five virtual assistants right now

working for me. And I'm telling you, when I hired that first one and I saw that even at $9 an hour, which is extremely affordable, you multiply that over the week and then over the month, I'm like, wow, that's kind of a, that's a big bill. But if you look at that type of stuff of what it's costing you, you're probably not going to move forward with it. But if you look at what it's saving you, specifically your time, and then what it's going to make you because they're going to be doing things that you don't have to do, of which allows you to spend more time on other things.

Or, you know, the common phrase, I think it came from the e-myth, you know, it frees you up to work on your business. business rather than in your business. You make a lot more money working on your real estate investing business than you do working inside of your real estate investing business. So these seven habits, I think they're right on the nose. I don't know as many self-millionaires as he has over the last 12 years. I haven't met them. I don't know what I can't attest to say yes, that's absolutely right. But I will say, I think I'm subscribed to almost every single one of these. sometimes I don't read as much just because I don't want any new ideas in my head,

but once I've accomplished goals or I've made some progress in whatever project I'm working out of the time, I will go ahead and I always am listening to either a podcast or an audiobook in my commutes. And then six, let's see, they watch less than an hour of TV each day. I'm guilty there. I watch a couple hours of TV every night to unwind for sure. And then let's see, 63% spent less than an hour. a day on the internet. Well, most of my businesses conducted on the internet. So I'm on there all the day, all day long. But this is such as Facebook activities and watching YouTube videos.

Right. I'm actually on a Facebook fast at the moment, at least for personal reasons. I'm still involved in the private Facebook group for the Epic Pro Academy. And I am creating YouTube videos. But yeah, okay, cool. But yeah, that was actually one of my New Year's resolutions was to get off that darn thing because it is a hell of a time waste. All righty. So thank you for putting that together, fast company.com, specifically Stephanie Vaza. It was a pleasure and I think it's right on the money. And Tom Corley, thank you. Maybe you want to check out his book, Rich Habits, the Daily Success Habits of Wealthy Individuals. Maybe that's the first book you want to go read. All right. So if you haven't signed up for an

early bird notification of the biggest breakthrough in real estate investor training and you want to be the very first to know about it, go to epic earlybird.com. because I'm just, yeah, maybe a week or so away from launching the follow-through crew. And that is a community of people aspiring to be very successful in real estate. And we called it the follow-through crew because just most people do not follow through. But we're going to make sure you do. And we're going to make sure that you get everything that you want out of your real estate investing business. All right.

So go to epic earlybird.com to get first notification of that. That's it for today. I'll see you next week. 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 Terrio. You've got the knowledge. Now, get the funding.

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