Epic Real Estate Investing - Don’t Wait to Buy Real Estate…. Buy Real Estate and WAIT! | 1154

Episode Date: June 22, 2021

In today’s episode, Mercedes, The Turnkey Girl, explains the psychology behind the common believes and fears that real estate is risky! Tune in and find out how our upbringing and educational system set our mental barriers and how you can destroy them in order to reach the financial freedom you deserve! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Tuesday on the Epic Real Estate Investing Show for Turnkey Tuesdays with your host, Mercedes Torres. Hello and welcome. Welcome to Turnkey Tuesdays brought to you by Epic Real Estate Investing, My name is Mercedes Torres, your turnkey girl, and I am lucky enough to be partners in crime with Mr. Matt Terrio, the guy who created the epic real estate empire. I help busy professionals create

passive income through real estate investing so you don't have to work so hard and maybe even retire sooner. So I created this show to share tips, advice, and real life real estate experiences so that you too can create passive income in your world. If this is your first time here, glad you made it, make yourself at home. If this is not your first time here, welcome back. So I've shared many times before on this show that when I was growing up, I grew up really poor. Now, I didn't know that I was poor because there was a lot of happiness in my home. And I went to school. And I went to school. but today I realized that I was taught so many things in school that today aren't really helpful towards my financial future. Because money was so limited in my household, I started to believe

what I was always told about money. Like my mother would say, we can't afford that, or that's too expensive or, you know, we can't go out to eat because it doesn't make sense for us to buy dinner for the whole family when that would buy enough food for a month. Like, I literally would hear these things. And when you hear them over and over again, you start to believe it. That becomes your truth. And you think to yourself, that must be the truth about how money works in the world. There are things that I've learned that were ingrained in my head that almost prevented me from becoming financially successful. So let me explain. What if you could conquer the biggest obstacle that's holding you back from achieving wealth and financial freedom in your world? I'm talking about that voice in your head or

that tape recorder that is constantly playing in your mind, the one that plays all the things that you heard while you were growing up. Because believe it or not, this really impacts what you do today when it comes to your finances and ultimately creating your financial future. Now, I'm not a therapist, but I do speak from experience. And several weeks ago, and several weeks on podcast number 1124 and 1126, I had Cappy Pidwell on our show on Turnkey Tuesdays, and she is a hypnotherapist that specializes in the field of your subconscious mind specifically related to finances. And she shared how these thoughts are ingrained in you as a child that later form your financial future.

I mean, it's fascinating stuff. And when I first heard about what she did and what she studied, I thought it was such hokey-pokey stuff. But when she broke it down on those podcasts that, you know, I interviewed her on, she shared amazing information. So I urge you to go back and listen. But longer the short of it is that these thoughts are engaged. in you as a child and you play them in your head over and over again. And I mean, this tape that

repeats in your head and this voice like, we can't afford it or go to school and get good grades and get a good job and work hard or start your 401K. Those ideas worked many years ago. And today, they just don't work. In fact, they will keep you from becoming rich. And if you think your 401k will be enough to retire you today, think again. Actually, do the math. I challenge you. Do the math, my friend, because numbers do not lie. But you keep listening to this voice in your head and you keep hoping because, of course, this is what you've heard all your life. And this work for your mom and dad. perhaps and maybe your grandparents.

But the reality is, it seems safe and practical because that's what you were taught. That's what you've seen. So this voice in your head and this tape that keeps repeating has now been ingrained in your thought process and you begin to believe all the things that you were told and what you were taught as a child. These ideas turn into fears and limitations and ultimately become your immediate future. And before you know it, you say to yourself,

I don't think I know enough, or this real estate stuff is just way too risky. Or you think, I don't have enough money. I don't deserve to be rich. Or I can't do it. I mean, it goes on and on. And trust me, I know all about that voice because I've heard it in my own head. I've lived it. I've had to battle the same things in my life. And to this day, I sometimes battle basic things.

Like, I have a really hard time paying $5.50 for my decaf latte at Starbucks, even if I could afford it. Because I keep thinking to myself, it's too expensive. Now, you might argue with me it is expensive, but that's beside the point. You can overcome these obstacles and the sky is the limit. So what's the solution? You don't get rid of the negative voices in your head by fighting them. To conquer them, you have to replace those voices and ideas with something else. something practical. So this brings me to the question that was asked of me just a few days ago

by a podcast listener that scheduled a call with me. And after a really healthy conversation about what I just shared, because he himself battled the same thing that we just talked about, and now that he's overcome this voice in his head and these negative thoughts, he asked me, Mercedes, is this a good time to get started in investing when we're at the top of the market? And of course, this got my wheels spinning because are we really at the top of the market? Now, we don't know if we're at the top of the market today. But here are two things I know for certain. Number one, real estate is never going to go out of food.

fashion as people are always going to need a place to live. And number two, history repeats itself. So I started digging into what was the median house price 50 years ago, 40 years ago, even 20 years ago. And what happened and what were the prices of the real estate market 13 years ago when the subprime market just came collapsing down? And here is what I found. The first year where we were actually able to document the home price was in 1963 because this is the year the census started and this is the year that HUD began trying. tracking home prices. So in 1963, the median sales price for a new house was a whopping $18,000. This was in 1963, where JFK was assassinated. $18,000. Fast forward to 1971. That median sales price for a new home was $26,000.

Now, 1971 was the year that Nixon took the dollar off the gold standard and instantly overnight that dollar became so devalued. Prior to this, in 1970, there was a little recession. I hardly like to use the term little because recession is no joke. But in hindsight, 2020, you know, they always always. we say, hindsight is 2020. The term little is a good term to describe this recession in 1970. So in 1980, the median sales price for a new home was $66,000. Now, this is a year where the Macintosh computer was created and disposable cameras were also created. In 1990, when Harry Potter series began

and the Titanic, the movie, was a blockbuster hit. Medium House price was $122,000. All of a sudden, the year 2000, dot-com boom, medium house was $165,000. Fast forward to 2008, that price was now $219,000. Now, you'll recall 2007, 2000. This is when the subprime market completely collapsed. Real estate market collapsed because of the subprime market.

That's a better explanation of that. People were upside down on their mortgages. Many lost their home. That was the era of the subprime loan when anybody, just about anybody can get a loan because there was no income verification. and you were really required to have a FICO score, two trade lines, and you were given a loan. So, in 2008, $219,000 was the median house price. Fast forward to 2010, prices started to rebound.

We started picking ourselves up of that little collapse, well, that big collapse. and in 2010, medium price went to $224,000. Then the market started to continually increase for the next few years. Until 2015, where the median sales price for a new home broke the $300,000 mark. Interest rates were really super low, lowest they had been in our hands. history. And so prices continued to go up and rates, interest rates, continued to drop. In 2019, that median price went to $327,000. And in 2020, despite the pandemic, prices hit $359,000. Here's what's incredible.

As of April, 2021, median prices for a brand new home were $372,000. This is outrageous because in 2020, 2021, we were involved in a pandemic, a global pandemic and medium prices hit $372,000. Now, it's important I mentioned I did not factor inflation in these numbers. I purposely gave you the raw numbers. Now, I just went through a timeline of what the medium sales price was for a brand new home starting 1963 when we began to document it. And here's what's interesting. Did you notice when sharing this timeline, despite what was happening in the world, two things remained consistent. Number one, people are always going to need a place to live, and number two, history repeats itself. Now, the history I speak of here

is that the medium house price went up consistently almost every single year despite the assassination of a president in 1963, despite the recession, despite the creation of the internet, and despite a pandemic, house prices have gone up. For that matter, so have rents. And considering all of this, what's constant? Number one, people are always going to need a place to live. And number two, history is going to repeat itself. And house prices are going to continue to rise and so will rental prices. All that to say, the famous words of Warren Buffett. Don't wait to buy real estate, my friend, buy real estate and wait. That's it for today.

As always, I truly hope this episode got your wheels turning because as Matt and I repeat at nauseam, real estate is the final frontier where the average person has a legitimate chance to create real wealth. And you, my friend, have the ability to change your financial future. Stop listening to that voice in your head. Change it. Start thinking about your financial future. Until next week on the next episode of Turnkey Tuesday, enjoy your cash well. has seen better days. But this two shall pass. And the best for you is yet to come.

Together, we'll get you there faster. We're cash flow savvy. And we'd like to share some information with you that will show you how you can take control of your financial future and accelerate its arrival. Go to cashflow savvy.com. More building, less waiting. Cashflow savvy.com.

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