Epic Real Estate Investing - Alternate Roads to Wealth | HTH022

Episode Date: January 16, 2019

Today, we are talking about alternate roads to wealth. Number one road to wealth is real estate, and that’s why we created this show. Reals estate allows you to cut the wealth curve down but what about entrepreneurship, intellectual property and licensing, niched down online businesses? What are the other great ways to get rich? Tune in to find out! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Don't wait for appreciation to buy real estate. Buy for cash flow and wait. In other words, Hold That House. Your host's Matt Andrews and Matt Terrio. Hey there, flipping houses can make you rich. Holding them will make you wealthy, however.

This is the Hold That House show. I am Matt Terrio, and over there is Matt Andrews. Apes. Apes. And before we begin, And we've got a free gift for you. Go to hold that house.com and download the four-hour work month. I think like we're up to 10,000 downloads already.

It's incredible. The 10 commandments to managing property managers, the key ingredient to financial independence to real estate that they're not telling you about. I love that book title. Awesome, awesome. The secrets they're not telling you about. Right. They're hiding it from you.

And I want to say thanks to you guys too for everybody for listening. I mean, that is awesome to have that many downloads. And we get messages from you. And let us know what you guys want. us to cover, you know, write us. Absolutely. You know, send us an email, visit the site and let us know what you guys want to hear about because this podcast is for you.

It's for us. It's for those of us that know that we're holding properties, building wealth, and let's do it together. So tell us what you want to know. I love it. So go to hold that house.com and get your four-hour work month for free. That's right. If you want to know how to shave your head really well, you get two bald mats.

I did a fresh shave this morning. I'm really sleek. So, I mean, we can help with that. I probably don't want to help on any other grooming kind of tips or anything. But besides that, we're going to go. Yeah, coming to you again from Tampa Bay, Florida, another week here. And hopefully Mr. Soundman is doing a good job making this sound good because we are working with a mobile setup.

But I think as long as everything's clear, everything's good. Cool, cool. Right? All right. Cool. So today we're talking about alternate roads to wealth. And as you were just mentioning, we do this podcast for them. Being a professional podcaster is not one of those alternate roads.

No. That's it. We can both attest to that, right? We can attest to that. So number one road to wealth, and that's why we've created this show, is real estate. It is produced more millionaires and billionaires than any other industry, any other venture, hands down. And I would have to say it is probably the final frontier where the average person has a legitimate shot at creating wealth. Absolutely.

Absolutely. And like in the last episode, we talked about leverage, just the fact and how you can use leverage in your real estate business alone. just that one factor trumps almost every other thing that we're going to talk about today on this podcast. Yeah. You know what we didn't talk about when we were talking about leverage is by the ability to leverage all that, it just collapses the time frames. Right. You can still accomplish everything inside our real estate and have a lot of great benefits from real estate without leverage. Sure.

But boy, you can cut your time down in a fraction of the time. It's all about cutting down the curve, right? And we talked about leveraging people too in that last episode. But leveraging people allows you to cut the curve down, cut the learning curve down. We'll cut, you know, this real estate allows you to cut the wealth curve down, basically. Ooh, I like that. I like that. That sounded pretty good.

Cut down the wealth curve. Trademark. Yeah. Boom. Done. Boom. When we talked about leveraging people, I just, I don't know if that sounded, if that was the first time anyone heard that before, if that sounds a little bit manipulative or.

Leverting. Leveraging contacts. Yeah. I just want to know that I rent my personal residence, my primary residence. So I am being leveraged as well, and I'm well aware of it, and I'm perfectly okay with it. There you go. Right? We all leverage and we are leveraged ourselves.

Exactly. And I know that, you know, I pay my rent every month and it's making someone else. It wasn't indentured servitude you were referring to when you're talking about leverage. No, exactly. Exactly. Gotcha. Okay. Yeah, well, that was about quite a while ago.

All right. Did we get nasty emails on that? I just, I thought about it when we said. I was like, ooh, no, whatever. This world has too much political correctness in it already. That's right. I take that back. I take that back.

I take it back. Yeah, there you go. Leverage the people. All right. So second would be definitely business ownership. Yeah. Right, entrepreneurs. We talked about that a little bit last week.

Absolutely. And that's what real estate is in so many forms is a small business, right? That you're operating almost every rental property is kind of a microcosm of a business. So the concepts are the same. But sure, there's a lot you can do out there in buying functional cash flow businesses. I mean, I think about a lot of my friends that own dry cleaning businesses and just little, you know, consolidated businesses like that that have a pretty fixed return. That's about as close to rental properties as you can get because the numbers are pretty standard, but you can't leverage it like you can again, real estate.

But business provides, you know, business ownership provides all kinds of opportunities. What are some other ones? I mean, let's just list off some types of. Well, I've always wanted a laundromat. Londromat, that's a wonderful. Car wash. I've always wanted the car wash. Yep.

I've got to get one of each for sure. Those are your automated businesses. Certainly the Internet boasts a whole world of opportunities of creating an automated business. I mean, gosh, you look at something like an Amazon. What a machine they've built. Sure. Just spits out transactions 24-7. Down to small internet businesses that are real niche businesses.

You know, I know, I mean, my wife follows some female-centric blogs and like mommy blogs and stuff. I mean, there are some women out there that are running some amazingly successful businesses out of their kitchen blogging. Now, for every one of them, there's a million that aren't, but that's a valid model now. Absolutely. And I see it because we spend some money on some of that stuff. We've been trying to get that to a point where it makes more than the real estate. Right. We haven't quite figured that out yet.

Yeah, we haven't gotten here yet. Thanks for sitting tight while we pay our light bill. We'll be back. Right after this. Do you have doubts about your current plan for retirement actually panning out? Imagine revolutionizing your retirement plan so that it pays you right now and in retirement. Change one thing one time and that revolution can be yours. That's bad news for Wall Street.

But great news for you. We are turnkey allies. and we'd like to offer you free information that will show you how one simple tweak can cause your retirement plan to pay you right now. And in retirement, and it's yours for free. For the secret your financial planner doesn't want you to know, go to turnkeyallies.com.

That's turnkey allies.com. Contrary to popular belief, there's a lot more money in real estate than there is teaching it. A lot of my friends on storage units, too. That's about as close to rental real estate to get right, you know, because that involves actually many times owning some of that land, but certainly owning the assets there and then renting out parcels of that, you know.

So that's a cool little business too. I have a couple friends that are into storage units where they tried to get into them. And that's, it's, it looks very easy. Like they all look very easy. Yeah. Oh, you just buy it and you run it out and you collect the rent. And there's such a major companies out there trying to create their racing to the monopoly. Yeah.

No, it's a highly competitive business. Yeah. Because I looked at some of that early on in my real estate career just, you know, when I was looking at some commercial properties and I could never get any. near where I would need to for me to justify going into it. You know, so it's very, very competitive. But you get them at the right price. They can be like rental properties for sure.

Right. So you can buy the business or you can start the business or you can invest into a business. Right. And typically that comes in the form of the stock market. It would be your stocks or multiple businesses at once with a mutual fund type thing. Yep. I wouldn't say that. Well, I guess lightning does strike in the stock market.

And if you really know what you're doing, I guess that goes for all of it. them if you really know what you're doing. Sure. You have a shot. And at certain times in history, we're seeing when even when people didn't know what they were doing, they still did well, and then it usually ends.

Kind of like in real estate. Right. You know, you can only sustain, you know, stupidity and bad decisions for so long, and then the market will correct you, you know, so, yep. It will correct you.

That's right. It won't correct itself. You will be corrected. Yes. You know, and there's a so much part of that, that's so much that goes on behind the scenes, and there's so much that you just can't control. True.

It's really a strict. strategy of hope, in my opinion, you know, hoping your writing, you back to the right horse. You know, I just saw, I did not read the article, I just saw the headline, but something about Mark Cuban had said the biggest insider trading scandal is about to be exposed or something like that. And it just seems like every time somebody gets caught, it's bigger, twice as big as the one that they were just previously caught. And so that just makes me a little bit nervous about that whole thing.

Like, you know, if you're inside that game and you understand how it works, boy, you can make more money than anybody. Right. But if you don't, I think you're just part of the vehicle that's making that. That's my thought. No, absolutely. And, you know, it's, and like you said, lightning can strike. And I've got, you know, kind of a funny story.

Like, I think I was 12 years old. And my grandmother, who was a pretty savvy woman with her money, didn't have much money, but she liked to think of herself as a stock person, you know. And so she would make small little buys at Dean Whitter. You know, she'd go to Sears. Right. There was a Dean Whitter office back then in Sierra. I mean, this is how long ago we're talking right now.

No e-trade, nothing like that. And she told me, you know, she'd give me some money when I was born. And it had basically grown to $1,000 from it. So she put in a couple hundred dollars or $300 or whatever it was. It had grown to $1,000. And she said, I recommend you take this and put this in this new company. I just heard about it's called Blockbuster Video. And I think I was 12.

I might have been even younger. I'd have to think back exactly. But I was young, too young to know about stock tips and stuff. And I invested that $1,000 in it at 15. 15% is what it was. It went up to, or their shares were at 15 then. It went up to 45%. It tripled in four months.

45% or $45? I'm sorry, $45 per share. Got it. Yeah, so it tripled. It tripled, right? In four months or whatever it was. That's when Blockbuster first came out when there was one on every quarter. So I thought, wow, this is cool.

This is how the stock market works. You put $1,000 in and you get three back in like three or four months. Cool, you know. And I'm 38 now, and I have yet to have ever made any other money in the stock market. So there's the lesson right there, right? You know, when I didn't know what I was doing, I made a little bit of money one time, but since then. So if you're waiting for that, it's not happening. The day traders a few years back that all quit their jobs.

I remember my lawn guy. He had to mowed my lawn quit because he became a day trader for about three months. And then he started mulling my lawn again. You know, so those kinds of things. A lot of it just ends up being pipe dreams. And you can, educated people can do really well there, but man, that's a tough business. You know, really making wealth, creating wealth. Now just, you know, hedging against inflation.

If that's all you're trying to do, maybe you can do that. But really building wealth there. In stocks, that's a tough game. Right. Really tough. You made me think about the, every time I go to Vegas. Yeah. I have my biggest winning between the check-in counter and the elevators.

later. Like, they get you, and then I can't wait to drop off my luggage and get back downstairs. You get the first one, yeah. It's downhill from there. That's so true. Yeah, I don't know if Vegas is on this list of other than options. Some people seem to think it is. Yeah, right. Some people actually, you know, you'd think they did. So licensing is another one. So intellectual property. So it could be software. It could be, you wrote a book, could wrote a screenplay. You wrote a hit song. What else can intellectual property-wise. Yeah. Patent, right?

An idea. You have an idea. You mean, you know, you guys have watched Shark Tank and some of those shows like that. There's one I saw the other day called Everyday Edison's or something, just people trying to invent something and tough business. And one out of a million probably really do a giant business and sell on QVC or whatever it is. But if you invent something and solve a problem, that's a great business.

Yeah. You know, that's not my thing. I don't have ideas that, you know, I wouldn't have come up with the, you know, the floby or, you know, whatever else, you know, or the, what's been the biggest thing lately? The slap chop. Well, you know, the two that I would have totally whiffed on, like if it was proposed to me right now for day one,

Starbucks, I would have never gotten that one. Yeah, true. I did not see that coming. I mean, that is a, we just did a Disney World yesterday, and they had a giant mega Starbucks on each side of the Disney Walk. Yep. I was like, there was just one, 100 yards ago that way, and both of them had lines wrapped around.

I was just like, so I'd have totally missed that. Yeah. And then the guy that did the sign twirling for real estate, I would have totally missed that one. Absolutely. That guy got in, patent that idea and cashed in or cashed out. Millions, millions and millions. I was like, huh? Whatever I ever thought about it.

An innovation in the sandwich board essentially was what he made. Spin it. Yeah. You know? Just had the idea. That's amazing. So that's another option. Then we've got, hey, you can become a celebrity.

A professional athlete. There you go. And you can win the idea. lottery. There you go. We could put Las Vegas in here. We do have a place for Vegas. Vegas would fit in that category for sure.

It happens. It happens. Yeah. But you got to be in it to win it. And you got to be six foot six at least. Right? Exactly. And 19 years old.

But then, you know, it all just comes back down to a lot of those are viable ways. A lot of people have made their wealth that way. It's definitely possible. But when it comes down to it, if you want to play the odds, where's your best chance? Whereas where do you have all the tools and resources? That doesn't, you don't have to have any sort of degree. You don't have to be any sort of rocket scientists. Really just know your basic mathematics, your addition subtraction and your multiplication division.

Once you, if you got those four things, algebra is not even required, right? Yeah, absolutely. And, you know, you understand the concept of supply and demand. Yeah. Real estate is really where it's at. That's why 74% of our wealthiest 1% say that again, 74%. And I did not make these statistics up on the spot.

These are the real ones. Department of Health and the Human Services. 74% of the wealthiest 1% made their money or preserved their money in real estate. Awesome. Awesome. And the good thing is, guys, real estate, you know, if you want to invest in these other things, that's great. Real estate will give you the ability to do that. Build the wealth with real estate and then, you know, sustain the wealth

and use that wealth to diversify into these other things that we talked about. you know, Matt and I both own other businesses that aren't even real estate related, right? Would we own those businesses if it wasn't for real estate, though? No, I wouldn't have the money to put into it. Wouldn't have the money to put into it. Wouldn't have the luxury of the time to research it. Right. You know, it wouldn't have been an option, right? So real estate's a vehicle, you know, and that's, I know Matt and I look at it that way. And I know you guys do too. Those of you who are buying and holding properties and building wealth, it's a vehicle. And it's not a vehicle

necessarily to a number, it's a vehicle to what it is that you want. And I know we're going to talk about that and some of the other podcasts to what you really want. And what's the reward? What's the why? But that's really what real estate is as a vehicle to those things. And it's the best one we know. Getting wealth, there's no wealth in protein powder either. You know, you figure that out? That's my other business. Yeah, yeah. Yeah. There's no, hey, there's no wealth in buying and selling rare LPs either, just so you know. What you do is you end up collecting a lot of LPs. That's what happens there. I did that a few years back. I love it. I love it. All righty, well, that's it for today. Flipping houses can make you rich.

Holding them will make you wealthy. We'll be back next week. Until then, remember, don't wait to buy real estate. Buy real estate and wait. Hold that house! Contrary to popular belief, a lack of funding is not the biggest barrier to starting a business. It's excuses. But don't let a lack of funding be your excuse. We are epic, fast, fast, funding, and we'd like to fund your business with up to $150,000 in revolving credit lines. If you've got 60 seconds on a solid credit score, you could have access to your funds in as little as seven days.

Go to Epicfastfunding.com to fill out our 60-second application. It's fast, it's simple, up to $150,000 in as little as seven days. Go to epicfastfunding.com. This podcast is a part of the C-suite Radio Network. more top business podcasts, visit c-sweetradio.com.