Epic Real Estate Investing - Choose the Context to Create Your Future - Epic Wealth Wednesday | 272

Episode Date: June 14, 2017

Welcome back to Epic Wealth Wednesday. In choosing the context to create your future one must consider the current mindset. What’s your relationship with money? Are you avoiding the wealth traps that are so common in our culture? How do you feel about wealth? Are there barriers keeping you from achieving your potential? Join us as we cultivate a healthier relationship with money and discover more fruitful ways of living on Epic Wealth Wednesday.   ______   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

Hey, real quick, before we resume Epic Wealth Wednesdays, I wanted to let you all know that the Epic Intensive website is up to date and is now taking your seat reservations for the next Epic Intensive, August 3rd, 4th, and 5th in St. Louis, and the first 25 people are in free. Go to Epicintensive.com, and I will see you there. And now, back to creating your Epic Wealth. So, to start on your wealth journey, you'll need to start with as much psychological work as you will with learning the practical how-to. I mean, without the right mindset, you are building on a poor foundation. I can track negative ideas I learned in childhood through my story and see how they affected my ability to grow and keep wealth.

So how are these ideas showing up in your life? How are they influencing your financial journey? I mean, most of us are raised with negative ideas and false beliefs about money. For example, we can't trust ourselves with money because it has the potential to corrupt us. Poverty is somehow noble and good, right? And we never really feel like we have enough money. In the richest country, in the history of the world, many of us have developed a scarcity mindset that there isn't enough to go around.

And whatever wealth I do achieve, it's going to be taken from me by somebody else. And many of these beliefs, they can be tracked back to a common misquote of scripture from the Bible. One Timothy, 610 reads, for the love of money is a root of all kinds of evil. And that gets interpreted that, you know, if you love money, it's evil. Another quote from the Bible that supposedly vilifies money is, it's easier for a camel to pass through the eye of a needle. than for a rich man to enter the gates of heaven. Wow. I mean, taking out of context or ignoring those small little words that are in there,

who in their right mind would want to be rich? Based on this, I'm going to hell if I get too much money, right? Clearly, there are negative ways to think about money that might be harmful. We could become prideful. We could use money to feed our addictions instead of work towards our dreams. We tend to fear the negatives more than focusing on the potential of the positives. We can do the same thing with Scripture on the other side of the coin and take it out of context and focus on the positive of money.

For instance, Deuteronomy 818 reads, But remember the Lord your God, for it is he who gives you the ability to produce wealth. Ecclesiastes 1019 reads, A feast is made for laughter, and wine makes life, marry, but money is the answer for everything. Money is the answer for everything. And why it makes life marry too. That scripture right there makes you want to run out to the bar and hoop it up, right? Why not? God sure makes it sound fun, didn't he? And I point this out not to share my faith or challenge yours, but rather to demonstrate that if you can choose the context, you will find exactly what it is that you're

looking for. And that's not just in the Bible. That's in every aspect of our lives. You know, whether money will keep you out of heaven or you should use our God-given talents to solve problems, make money, and create good, that's up to you. There are challenges that come with earning more money. But what is the alternative? The fear-based, negative focus by society on money, it's a trap and a fallacy that's going to keep you poor. It's going to destroy your dreams and it's going to limit your ability to help anyone. The reality is, money is simply necessary in the world in which we live. Money is not good or bad.

We are good or bad. And if we decide to be and do good, then we should make as much money as possible and therefore create the most good possible. To be able to make money, you must first change your beliefs. and it starts with believing that money is a good thing. As Wallace Waddle says in his fantastic book, The Science of Getting Rich, whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life

unless one is rich. No man can rise to his greatest possible height in talent or soul development unless he has plenty of money. For to unfold the soul and to develop talent, he must have many things to use, and he cannot have these things unless he has money to buy them with. When you see money differently, you interact with it differently. Everything in your financial life, it starts to change.

The primary difference between the rich and the poor isn't that the rich have money. It's that they think differently about it. You know, Napoleon Hill's famous book, Think and Grow Rich, and Earl Nightingale's The Strangest Secret. They speak so eloquently on how thought affects success. Not only do the rich think more positively in general, more consistently in their endeavors, and more consciously about money, but they know things that everyone else does not.

If you aren't doing what they are doing, it's just because you were never taught to do so. The rich are taught and raised differently. And what I mean by that is, rich parents teach their kids to be rich. Poor parents teach their kids to be poor. They don't teach these things intentionally, and there are exceptions.

I mean, most every parent would like to see their children succeed financially, but we can only teach what we know. The rich think differently. I mean, a poor person might say, I can't afford it. We've all said that before. A rich person might ask,

How can I afford it? The first is a statement, and it confirms the current reality. The rich person's response, that's a question that introduces possibility. Questions that they're very powerful. A question searches for an answer, and the brain will search out answers for any questions asked of it. Now, having said that, not all questions are created equal. A poor person might ask the question, how much will this cost me? Again, questions are powerful, but not always powerful in the right direction.

The rich would ask a more empowering question. How much will this make me? For the rich, return on investment, that's an important idea. How much will this make me is one of their constant thoughts. Another way of thinking I have observed in The Wealthy is that they make up their minds quickly. They make up their minds fast, but they change them slowly. You know, a poor person will generally look too long at a sound investment opportunity. And let me think about it.

That's a common response. The rich faced with the same opportunity, you're going to jump in as soon as they see it is sound. They're going to leave themselves open to changing their minds, but they're going to be much more decisive. I mean, imagine a poor person and a rich person had both earned an extra $30,000 to purchase a new car. They're both given $30,000 to go. go buy a new car. So the poor person has been taught their entire life that debt is bad. So they stroll down to the dealership and lay down the entire $30,000 for the new car. They own it free and clear. They've got no payments. But they will also lose 30% of the value

the moment they drive it off the lot. Their $30,000 investment is now worth just $20,000. That's a negative return on investment, right? Well, let's look at the other side. The rich person, the first thing that they might do is, you know, not call the car dealer. Likely they'll call their, maybe their CPA or their real estate agent. See, they're going to go look to purchase a cash producing asset, perhaps a rental property. Then with the extra cash being generated from that asset, they could proceed to the dealer and lease a car. the cash flow would pay for the lease.

They'd get a business deduction on the lease as a business owner, and they'd also enjoy the appreciation and tax deductions that accompany the real estate. Overall, they would make a great return on investment. Depending on the asset and car, and after all, the pluses and minuses are all tallied up, the bottom line might even reflect the car payment covered entirely by the asset, and even some money left over. They could essentially be getting paid to drive that new car. I mean, the difference in financial trajectory that results from different thinking

it couldn't be more clear. The poor follow the common and safe way of thinking and stay poor. The rich get richer. Safe is the new risky. It's never a money problem, merely an idea problem. Who buys the car? The poor say, I do. The rich say, my assets do.

You know, what separates the wealthy from everyone else isn't their financial assets or business opportunities? No, it's not their talent or their skill either. Rather, it's the way that they think about and understand money. It's the knowledge that they've acquired. Wealth, it's not a privilege reserve for the small. or the lucky, anyone can become wealthy. You don't need money to make money. You don't need to win the lottery.

You don't need an inheritance or special talents. You simply need to start by changing the ideas you do have about money. And then how you act on those ideas. Whatever wealth you acquire in your external world is simply a reflection of what's going on in your inner world. So now what? Where do you take these thoughts? What do we do now?

What are these assets you're talking about? What about this income real estate you're talking about? Where's the best place? Where's the real estate store? Where do I go shopping for this? Where's the best place to buy real estate? Well, I'll reveal that to you right after this. If opening up your financial statement each month

is about as exciting as watching paint dry, The Epic Wealth Fund may be the next investment opportunity for you. The Epic Wealth Fund invests in distressed real estate and shares the profits with its shareholders. If you're an accredited investor who has already enjoyed success elsewhere in their business or investing life, and you're seeking a broader exposure to real estate in your portfolio on a passive basis, the Epic Wealth Fund's executive summary is available for your review. Go to EpicWealthfund.com to review the fund's executive. executive summary. Epicwealthfund.com. Real estate investments involve a high degree of risk.

Residential income and returns may vary and are not guaranteed. Past performance is no indication of future performance. Nothing herein shall be construed as investment, tax, legal, or accounting advice. And now, back to creating your epic wealth. All righty, got your thoughts straight, got your head screwed on right. So now what do we do with these thoughts? What actions do we take? Where do we get these assets? Where's the asset store? What corner of that on? Where do you buy the income real estate. The type that's going to create a dependable and predictable stream of income, provide all the tax benefits real estate does, and allow you to use leverage in a way where the return on

your investment beats every other option you have available to you. Well, conventional wisdom would have you think, as well as per the advice from any old jaded, salty investor from your favorite real estate investor club USA, if you can't drive to it, don't buy it. You hear that all the time. don't invest outside of your backyard. If you can't drive to it, if you can't walk to it, don't buy it. You know, and I cringe every time I hear this advice.

It's like fingernails on the chalkboard to me. Because what do you do if you don't live within driving distance of sensible income-producing real estate? What do you do? Do you just not invest then? Or do you pick up your family? and you just pick up and move to a town that hosts investment grade real estate. Let me start by saying this. There are really only two ways that you can lose money in real estate.

Only two. Now, as long as your strategy is income-based, there are only really two ways. And it's in these two places where most people lose their shirt. And if you can manage these two aspects of your real estate investments, you will have virtually eliminated the risk from real estate investing altogether. And we touched on this a little bit on the last episode. The first place, bad contractors. The second place, bad property management.

Just about any and all money that you would or could lose in real estate will be tied directly or indirectly to bad contractors and or bad property management. Maybe bad property analysis, maybe. It's another, it's a distant third. maybe, but if you come up with 10 unique and independent places that you could lose money in real estate, the proximity to your primary residence would not crack the top 10. Nope. Distance has nothing to do with whether your investment loses money or makes money. Maybe I could see at the very least a connection to distance and the loser investment if

nobody had ever lost money in their own backyard. But we know that's not the case, right? People lose money in their own backyard all the time. I mean, they got a show on TV with Adam Carolla to catch a contractor. People are losing their life savings in their own backyard just from contractors alone. Distance has nothing to do with it. It's just as easy to lose if your income property is the property next to you as it is if it's on the other side of the country from you.

Yet, it's also just as easy to win as well. We get what we focus on, remember? Distance has nothing to do with it. I'm very comfortable investing long distance. And at first I wasn't, but

now I am. And it's a question I get quite frequently from clients, fellow investors, my friends and family, too. In fact, my friends and family think I'm absolutely nuts. Absolutely. I mean, maybe you have friends and family like this as well. They think you're a little off your rocker.

Well, as I've shared with you, I own hundreds of rental properties and none of them, zero, are actually in my home state, let alone in my hometown. Well, Mercedes and I, we do own a mixed-use building in Los Angeles and a couple of vacant lots, but those were accidents. But that's just three. just three out of 243 properties owned in the state of which I live. Just three of those are owned in the state of which I live. In fact, in my office, we have a saying that we live by, which is live where you want and invest where it makes sense. And I got to tell you, I'm addicted to the sunshine and the ocean.

So I love California. That's why I live in California. And I'm addicted to my monthly cash flow. of which does not live in California. Now, I'm not going to try to tell you that it wouldn't be wonderful if great cash flowing properties existed everywhere, or actually maybe I am going to tell you that, because, you see, once I got over the disadvantages

or perceived disadvantages of investing long distance, I was then free to discover the many advantages, which I will explain. You see, when people express concerns to me, about investing long distance. Or when you hear someone sternly recommend against investing long distance, what they are really referring to is, how do you maintain control long distance? So it's really the topic of control we're talking about, not the simple fact of what

zip code a property is in. Well, let me break that down. And I'll do that first by contrasting the controls I have versus the controls of a traditional investment, let's say through a 401k or a stock, a bond, or a mutual fund. You know, when most people invest in their 401k, they are ultimately investing in stocks of companies, usually inside a mutual fund. So let's talk about them all at once. So these companies, some of which you may have heard of, and many of which you have not,

almost never have their headquarters in the city where you live. almost all of the time you'd literally be investing long distance in that particular company. Now you may say, come on, Matt, that's a weak comparison. Get out of here with that. But hang on. Hang on, because that's not really the control I'm talking about. Just thought it would be fun to point that fact out. The fact that you're already investing long distance.

Okay, seriously, what really matters in terms of control is, first, what level of understanding do you really have about exactly what that company does to make money? The more you understand this, the less mystery there is in determining whether you are making a good investment or not. When it comes to how we make money with rental property, I have a complete understanding, and so should you of exactly how it's done. We simply provide a place to live to a hardworking family or individual who wants to rent that place from us. That's about as simple as it can get and very easy to understand.

And we get to know ahead of time what kind of rent that's going to be. Period. That's it. And I want to leave you with that. One, because we're out of time. But two, it's a good place to stop. We'll get into the details next week. I promise. I'm not going to leave you hanging. And for now, I invite you to visit. Go over and take a visit to Cashflow Allies.com. and download the free investor report that they have there on the top 10 cash flowing markets in the U.S. Go to cashflow allies.com and see if you happen to live in one of those markets. If you do, that's super duper.

If you don't, what do we do next? Well, I'm going to share that with you next week and all of the details on investing long distance and how that can turn your financial life around faster than anything that you can possibly think of. I'll see you next week as we continue to create your epic wealth. If waiting for your investments to grow feels like waiting for pink to drive, there's a powerful secret your financial planner doesn't want you to know. You can accelerate your investments growth by two, three, or even four times.

That's bad news for Wall Street, but great news for you. We're cash flow savvy, and we'd like to offer you free information that will show you how to take control of your investments and double, triple, or even quadruple their returns. And it's yours for free. For the secret your financial planner doesn't want you to. know, go to cashflow savvy.com. That's cashflow savvy.com. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.