Epic Real Estate Investing - EPREI 001 : Play Me First! The What, Why, Who and When!

Episode Date: June 25, 2011

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Are you tired of working for a living? Are you tired of being responsible? If you are truly ready to change your life and take immediate control of your finances, you're about to meet a man that will transform your financial future and grant you your wildest wishes. You'll recognize him from his Emmy Award-winning work on the number one TV show. Fire your boss in 24 hours or less. He has sold 10 million books. He's trained 20 million people.

He's closed 30 million people. real estate transactions. This month, Donald Trump has his number on speed dial and he's about to introduce you to a system, a system of which you'll never have to leave the comfort of your couch. All you have to do is

simply press a button and money will magically appear in your mailbox each and every day. Um, no, let's try something new. Let's try something unique. How about the truth? Epic Real Estate Investing Podcast, episode one, one, one, one, one.

You're about to meet a man that can show you how he took control of his life and financial future and how you can do the same. He's never been on TV. He's not a millionaire, and he does not know Donald Trump. He is a full-time real estate investor, newly discovered author, and family man. He does not report to a boss. He creates his own schedule and takes his family on a few vacations every year. He got started investing in real estate with almost no money in a really crummy credit score.

And he's going to show you exactly how he did it and how he continues to do it. You will have to work. You will have to be responsible. However, laying by the beach sipping fruity drinks is a reasonable goal without further delay. Further delay. Your guru. Sorry. Your guide to a better life through real estate investing.

Matt Terrio. Hello and greetings from the epic real estate investing podcast, the podcast that will show you how to create wealth through conventional and creative real estate investing so you will have the option to realistically retire in the next 10 years or less. And enjoy the good life while you're still young and to do so. Thank you for joining us on our very first show. My name is Matt Terrio, author, full-time real estate investor and family man, a man on a mission to tell you how it really is, what it takes to be a successful real estate investor, how to reduce your risk and limit your

liability, how to run your real estate investing business like a business, so that your business is working for you, you're not working for your business, how to choose the strategies that will work for you. Why most of the creative real estate investing strategies being taught by today's gurus, they rarely work well. And how to earn tax-free income legally, honestly, and ethically for the rest of your life. And how to create a legacy to pass on for generations to come. Specifically, how to be the revered, respected, and remembered branch of your family tree. You know that one branch that holds the tire swing.

The fun guy, the fun relative, the fun girl, the fun aunt. That's what I want for you. This is an educational podcast. I'm here to educate, not here to sell you. Now, keep in mind, however, this podcast is free. You don't pay anything to listen to it, and I don't make anything from making it. So, from time to time, so that I can continue to produce this podcast, I might ask you to do business with me.

No, I will ask you to do business with me. For example, I will soon be releasing a book titled Investor Fast Start, the four fastest paths to cash in real estate investing. And you can best believe, when it's complete, I'm going to let you know about it. I promise, though. I promise not to be obnoxious or overwhelm you with the promotion, but I'm going to let you know about it. And from time to time, I will have guests on the show as well,

and some of them might have something to promote, and I'm not going to stop them from doing so. However, 95% of this show will be educational. You have my word on that. I'm not going to hold anything back. I'm going to give it all to you, and to begin with the gesture of good faith, I put together a free course for you,

how to do deals, no money required. It's 100% free, no strings attached. I put my heart and soul into this course to give you what the majority of people want. Most people want to know how to do a deal using no money or credit. So I put a course together in a step-by-step format of which I disclose everything that I do, everything that I say, every resource I use, including the documents and all the contracts that I use, I give you everything. And I'm making that available to you and asking for nothing in return.

It's yours for free. It's my gift to you. Now, aren't you glad you decided to listen to this podcast? You can get your hands on this free real estate investing course, how to do deals, no money required, at free real estate investing course.com. There's no funny spellings, no hyphens, no spaces, just spell it out.

Free real estate investing course.com. My only request is that you follow the course as it is designed. Resist skipping around. Follow it as it's designed and move at the speed of instruction. I promise you. If you don't, it's going to lead to frustration and discouragement, and I want you to succeed at this. I mean, if you have a propensity to rip open boxes

and just start putting things together and ignoring the instructions, this would be a good time to break that habit. Real estate investing is not a jump in and slam it together type thing. So do me a favor, or do yourself a favor, rather. Start at step one of which you can access at free real estate investing course.com. So why would I do this? Why would I give you a free course of which I disclose and reveal everything? Why would I give that to you for free?

Well, unless somebody does, most of you simply just don't have a chance. And everyone, in my opinion, everyone deserves a chance. Or two, or maybe three. And what do I mean that you don't have a chance? Well, I mean you don't have a chance at retirement, let alone any sort of financial freedom before then, unless you get involved in real estate. I mean, did you know, per the Department of Health and Human Services, that 95% of today's 65-year-olds,

They are either dead or dead broke. 95%. 95% aren't going to make it. Now, this always makes me think. Who is this 95% of the population taking their financial advice from? Probably from the other 95%. But more importantly, who are you taking your financial advice from? Are you taking it from your neighbor?

The person that lives in the same neighborhood as you? Same type of house drives the same type of car? or are you taking your financial advice from the guy or the girl that sits in the cubicle next to you at work? Or are you taking it from your broke brother-in-law that you see once or twice a year on the holiday family get-togethers? And on his way out the door, he's asking you for a loan. I had one of those, by the way, that's how I know. Are you taking your financial advice from someone who has what you want? Are you taking your financial advice from someone that has more than you, at least?

Let me ask you, if you want to be a doctor, wouldn't it make sense to get advice and learn from a doctor. If you wanted to learn to fly a plane, wouldn't it make sense to learn from a pilot? If you wanted to make it to the major leagues, where would your best advice come from? A little league coach or a major league manager? I mean, these are all relatively logical questions

with logical answers, right? So what if you wanted to become financially free? Where should you seek advice? I mean, doesn't it make sense to get it from someone who is financially free? I mean, of course it does. But where do we get our financial advice from? Here's the fundamental breakdown in the world.

The first and primary place where we get our financial advice from is home, our parents. And if you weren't blessed with financially free parents, I'm sorry. There's a really strong chance that you won't learn to be financially free. You're certainly not going to learn to be financially free from your primary source of financial education. I mean, rich parents teach their kids to be rich. Poor parents teach their kids to be poor. There's some exceptions out there, but essentially that's the gist. And this is not on purpose, of course.

All parents want the best for their kids. But we can only teach what we know. I mean, the tragedy is, when it comes to money, most people think they know. I mean, how could they possibly know, though? How could they possibly know when 95% of them reach the age of 65 either dead or dead broke? 95%. That's everybody. There's an ancient Chinese proverb that says,

to know and not do is to not know. And that's what I mean when I say, if you weren't blessed with rich parents, you are not going to be rich by the way of the status quo. You have to learn how to get there from another source. So where's the other source? Where's that secondary source we get our financial education from? The second source of our financial education is our school system, unfortunately.

Unfortunately, because their idea of financial education is to go to school, get good grades, and get a good job. Work their 40 years, and then you get to enjoy life when you're, you're 65 years old. That's what we were taught. It's what we've been taught for decades. And it worked for a while, but not anymore. Ninety-five percent of us today aren't going to make it under that plan. And the way the world is looking right now, that number is going to increase. That's my opinion, by the way. And I mean, none of us have a crystal ball. But at some point, ignoring the writing on the wall is a losing strategy. The rules are changing. That's the bad news.

You can change, however. And that's the good news. And by the way, don't hold it against your parents or the school system with regard to where you are in life. It's not their fault. It's just what they were taught or what they were told to do. And don't be mad at your grandparents either because it's what they were taught also. Besides, all of that's behind us. There's nothing we can do about that. The past is the past.

All we can control is the present. And by controlling your present, your future is created. So, the place where you will want to place your focus, the question you want to ask yourself is, where is it going to stop in your family tree? I know in my family the buck stops with me. I'm a brand new father. And I'm so envious of my son. I wish I was my son.

I'm so envious of him because he's going to be raised not knowing any different. He's going to know only one way. He's going to know the way to financial freedom. You see, whether from our parents or our school system, or a combination of the two, financial education consisted of us sending our money to the government, retail banks, investment banks, financial planners, etc. And by the way, the vast majority of financial planners are not financially educated.

It's an oxymoron almost. They're not financially educated. They are sales trained. If they were leading their clients down the right path, more than 5% of our country would be prepared to retire. Our school system has taught us from the beginning to send our money to other people, to other organizations, to institutions, to entrust them with our money. True financial education consists of teaching you how to have money sent to you. And that's what my son is going to learn.

And he'll learn it from day one. And that's a big why for this podcast. I know what I'm going to teach my kids. What are you going to teach yours? What are you currently teaching them? What are you teaching them right now? You know, I don't know what you're teaching your kids right now, and I'm not saying you're teaching your kids wrong.

You know your situation much better than I do, but it is a question to ponder. And much more on that in episodes to come. So back to our previous discussion, 95% of the population continues to miss the boat, 95%. 4%. 4% just barely make it. And only 1% reaches the age of 65 in that wealthy status.

And defined by the Department of Health and Human Services, that's having a net worth of $5 million or more. Now, in my opinion, just the definition of wealth. That definition of wealth is part of the problem, which I'll continue to cover in episodes to come. Now, we established earlier that if you want to be rich, you should learn from rich people, right? So if we look at what that 1% is doing

and how they got too wealthy status, I mean, that would make a good starting point, I think, right? I think so. But even before we learn from the wealthy 1%, please, please, please, stop learning from the poor 95%. Stop taking your advice from that group. Because if you continue to do what they do, you will continue to get what they got.

So stop doing what poor people do and start doing what rich people do. I mean, if you want to be rich, of course. So what do they do? Of this 1% wealthy population, 10% of them are doctors and attorneys. But let me ask you, do all doctors and attorneys make it to wealthy status?

Nope, they don't. Just your most educated ones and the ones that acted on what they learned. Another 10% of this wealthy 1% consists of CEOs and presidents. Now, do all CEOs and presidents make it to wealthy status? No, just your most educated ones, the ones that acted on what they learned. 5% of this wealthy population are your super salespeople.

Now, do all salespeople make it to wealthy status? They don't, do they? Just your most educated ones that acted on what they learned. And a whopping 1% of the wealthy are lottery winners or they inherited their wealth. And I'll ask the same question. Do all lottery winners make it to wealthy status? Nope, they don't. Two out of three lottery winners

not only find themselves broke within five years of their winning, they find themselves in a worse position than before they won. So what that says, if I just granted each and every one of you, each and every one of you that's listening to my voice right now, if I granted each and every one of you your $5 million to put you in that wealthy status, I gave you your $5 million, poof, you're all now consistent.

wealthy within five years two-thirds of you would not have it and what that says the lottery winners that make it to the wealthy status are your most educated ones the ones that acted on their financial education even if your wealth is given to you you better be financially educated and know what to do with it and by the way your athletes and your celebrities there are hardly a measurable sector of the population did you know four out of five professionals athletes are broke within five years of their retirement, regardless of how much they might have earned during their heyday.

Financial literacy and education is a serious issue affecting society. It's the reason you continue to hear that the gap between the rich and the poor is getting bigger and bigger and bigger. You hear more and more these days that the middle class is disappearing. Because 95% of the population is financially illiterate. Now, if you've been keeping track of these numbers, there is still 74% of this wealthiest 1% of our country that's unaccounted for, right? What do you think they have in common?

I mean, obviously, it's the key to wealth, isn't it? I mean, if 74% created their wealth in this way, it must be the place where the greatest possibility of wealth exists, right? I mean, it represents a seven times greater possibility than if you were a doctor, a lawyer, a CEO, or a company president. Seven times. Almost a 15 times greater possibility than our super salesperson. And a 70 times greater possibility than the,

those that inherit their money. And in almost infinite times greater possibility, well, maybe not infinite, but it's up there, than our entertainers and athletes. 74% of the wealthiest 1% of our country's population created their wealth through business, ownership, and real estate investing. Now, if you want to be wealthy,

if you want to be rich, you must first, remember, stop doing what poor people do. That's the starting point. And then start doing what rich people do. And as I've shared, there are several paths you can take to get there, but for me, it just makes sense to take the path

where your possibility of success is the greatest. And that's what this podcast is about, business ownership and real estate investing, with a heavy emphasis on the real estate part. And that's why I've created it. Everyone deserves to know how to properly run a business and invest in real estate, because if they don't,

they just flat out don't have a chance. They don't have a chance to ever take their foot off the gas in life. They don't have a chance unless they learn how. They are forever sentenced to the life of worker bee. That's why I created this podcast, because I want more out of life, and I want more out of life for you. Now, when I learned of these statistics about six years ago,

I mean, the next question for me was, what makes real estate such a powerful vehicle for creating wealth? How come your possibility is so much greater inside of real estate investing than any other vehicle? Well, after extensive research, I've come to call it an ideal investment. And ideal is an acronym. The I stands for income.

In real estate, with a solitary focus, you can generate both active and passive income. And what makes that so nice is that the potential for active income is so high, it can literally create and feed the passive income. It's perpetual. They feed each other. And it's an income that will last essentially forever

as long as it's properly managed and maintained. The D in our ideal asset, acronym stands for deductions and depreciation. Something I learned later than I would have liked to in life was that it's estimated that somewhere between 50 and 55% of an American's income will go to taxes in some shape, form, or fashion. 55%. That's more than half of your lifetime income.

And another thing I learned a little later in life than I would have liked to is that the average American, with the purchase of just a couple of investment properties, can virtually eliminate their tax liability. Virtually eliminate it. Wipe it out. Now, you'll want to confirm this with your own CPA. I'm not a CPA. I'm not giving you accounting advice.

You'll want to confirm it for your own unique situation. Everybody's different. But I'm very comfortable in issuing this blanket statement that the average American with the purchase of just a couple of investment properties can virtually eliminate their tax liability. That would double your take-home pay. The money that you're already going to work every day and working for. It would double your take-home.

home pay almost instantly. Even if you never made a dime off of the real estate itself. I mean, isn't that powerful? I wish somebody would have told me that a lot earlier in life. And that's eliminating your tax burden honestly, ethically, morally, and legally. You know, there is so much complaining coming from society that the rich unfairly get all of the tax breaks. It's not unfair. Each and every American is governed by the same tax laws. You just have to know the laws. You have to know the rules. And to put it all in a nutshell, rather than going through and reading a bunch of tax code, just buy some real estate.

Buy some real estate and get a good CPA. That's a major rule that takes care of a bunch of what ails most Americans. The E and our ideal acronym stands for equity. That's the difference between what you owe on a property and what the property is worth. And over time, for the educated real estate investor, equity grows, and it grows in two ways. first by debt paydown and second of which brings us to the A in our ideal acronym is appreciation

over time real estate has always proven to appreciate now nobody has a crystal ball not even me and none of us know what's going to happen even your specialist on TV or your favorite guru they don't know either I promise you nor do we know when it is going to happen I'm not going to get into that argument

but what I will argue is the economic principle of supply and You see, when demand goes up, so does value, so does appreciation. And in real estate, the supply is represented by available land. And the demand, it's represented by people. First, the supply is fixed. We're not making any more land. Well, if you don't count the lava flow that increases the big island of Hawaii every year, in the man-made islands that they're making in Dubai, land is pretty much fixed.

We're not making anymore. We've got what we got. People, however, we continue to make them. We continue to make people. Each major generation is bigger than the previous. I mean, there were more babies born in 2007 than any other year in history. The demand for real estate isn't going anywhere.

Those people, they need someplace to live. Now, there'll be ups and downs along the way. But appreciation, it's a pretty safe bet if you hedge that bet a little bit with cash flow to carry you through the low cycles, to carry you through the lean times. And then finally, the L, in our ideal acronym, stands for leverage.

Now, in my opinion, probably the most powerful aspect of real estate. And I'm sure there are just as many people out there that would argue against leverage as there are that would argue for it. But I'm one that would argue for it. Responsible and managed leverage in real estate is essentially wealth creation on steroids. And we'll talk about that extensively in episodes to come. Now, an aspect that doesn't get as much attention as it should that makes real estate so great is that it's tangible. You can touch it. It's real.

It's not a piece of paper or an imaginary number in cyberspace that can rock. and fall overnight just because someone sneezed, that it can rise and fall because the wind changed direction or someone is just simply in a bad mood that's going to dictate my investments value. Real estate is real. Thus the name. Real. Estate. That's 50% of the why for this podcast because you just simply don't have a chance unless you figure out the real estate game. The second half of the why for this podcast plain and simply is that you're being lied to. The audio programs, the infomercials, the seminars, the boot camps, what have you, are flat out lying to you. The real estate investing industry's business model is to make real estate investing look easy.

Like all you have to do is push a button and money will magically show up in your mailbox each and every day, and then you too can lay out by your pool with skimpy bathing suit-clad models splashing around while you sit in the shade and sip fruity drinks. This ain't easy. Real estate investing ain't easy. If it were, everyone would be wealthy. The real estate investing education and industry wouldn't even exist if it were easy. You'd buy a book and you'd be done.

However, of all the ways to create wealth, it is the easiest. Real estate is the final frontier where the average person has a shot, where the average person has a shot at financial freedom. And I ask you, what is your financial freedom worth? What is it worth to your family?

What would it be worth to you if you could create that freedom for your family. How would that make you feel? How would that make them feel? And in return, how would that make you feel again? Pretty awesome, I know. And for that reason, you deserve to know how to create wealth through real estate investing the right way, a realistic way, with realistic expectations, and in a managed and responsible way. Real estate investing, it's a skill. It's not a buy a book and now I know how to do type thing. It's a skill, and it takes time to develop that skill. But the good news is that skills can be learned.

Real estate is not reserved for the privilege, the talented, the intelligent. I mean, anyone can learn the skill. And yes, even you. And if you're going to create wealth, or if you want financial and time freedom, you're going to have to develop a skill. I mean, that's how we're compensated in our world. We're each paid based off of what we do, how well we do it, and how difficult it is to replace us.

We're paid by the caliber of our skills. So, to reach financial freedom, you're going to have to hone a skill one way or the other. So doesn't it make sense to hone the one skill where you have seven times the possibility of succeeding than the next most powerful skill? I mean, it just makes sense to me. But again, you know your situation better than I do.

And that's the second reason why for this podcast. The first one is you don't have a chance unless you get involved in real estate. And the second is you're being lied to. You've got to learn how to do it and learn how to do it the right way without the get-rich, quick and easy methods and services and softwares and systems and all that stuff distracting you.

This business is not easy, but it is rather simple. Keep it simple, stay focused, take consistent action and stick with it, and all of the time and money-free and real estate investing can provide is yours for the taking. Doing the right activities consistently and doing them long enough will guarantee your success. It's guaranteed. Okay, I'm going to wrap up this episode with Who Am I? Who is this guy? Is he just another guru? Is he qualified to be saying what he's saying? Is he qualified to be teaching what he's teaching? I mean, I suppose that's up for debate depending on where you are in your real estate investing journey. I'll tell you exactly who I am and what I've done and what I'm currently doing, and then you can decide if you want to stick around or not. I'm a fifth generation California native and Desert Storm Veteran, United States Marine Corps, Ura, for all my devil dogs out there, and I've worked as a full-time real estate professional since 2003. Now, as mentioned in this show's introduction, I'm not a millionaire. Yet, I am a full-time real estate investor, though.

Please, not to be confused with real estate agent. Although I am licensed in California, I am a newly discovered author and family man, I don't report to a boss, I create my own schedule every day, and I get to take my family on a few reasonably extended vacations every year, and I got started investing in real estate with almost no money, and a really crummy-lousy credit score, still not very good, and I can show you exactly how I did it and how I continue to do it. I've closed 50-plus real estate transactions in the last 18 months,

and as I write this, I'm averaging a few deals a month. I've discovered that I have a knack for simplifying the complicated, for implementing systems and producing desirable results for myself and others. I'm really just the normal guy who once had a goal to be successful in real estate investing, and I wanted to master the multiple streams of passive income concept. And as an experienced and accomplished professional, I felt writing and teaching was the next logical step in my journey. Also, because of the issues surrounding our economy today,

I'm especially interested in informing the public of what multiple streams of income and real estate investing can do for them. I'm grateful for my friends and associates, mentors, and community for how they've empowered me to pursue and achieve so many of my dreams. I mean, this epic real estate investing podcast is simply an outlet for me to show what I've learned and give back. And if I happen to create some mutually beneficial professional relationships among my audience and along the way, all the better. The most rewarding part, though, the most rewarding part about my professional life is receiving all of the great comments from people. People just like you, people who have taken the information I share with them, and they go out and put it to use. and produce desirable results.

All of the gratitude and praise for my hard work, it drives me. It drives me to work even harder on my own real estate. It drives me to work hard on my own websites in this show. To continue updating its information, providing the world with the most practical and useful real estate investing information possible. There's nothing more rewarding than when I hear someone close the deal because of something they learned from me.

I love it. I mean, just today I got a call. Actually, my partner got a call from someone that attended one of my workshops just 30 days ago. I led a workshop called How to Do a Deal in 30 Days. And I put everybody to the test that was in the workshop. And actually, as I'm recording this, tomorrow, is the 30-day anniversary from that workshop.

And one of the people, I'll find out if there's more tomorrow, but one of those people that attended that workshop, I actually put a short sale under contract today. There's nothing more rewarding than that. I love it. So, that's who I am. And that's what I do. If you consider yourself further along in your real estate investing career,

I don't know if there's anything I can teach you. Maybe I can, maybe I can't. I don't know. Either way, and regardless of you, regardless of where you are in your journey, anyone, anyone with an abundant mindset and willingness to help others is welcome here at the Epic Real Estate Investing podcast. You'll want to tune into the next few episodes.

Might take me four or five, maybe half a dozen episodes to complete, as I'll be covering my overall approach as to how you can virtually eliminate the risk from your real estate investing. Now, that's a bold statement I know. Specifically, what I mean is, driving a car is risky, right? I mean, it's the number five killer in America. Yet each and every day we get into our cars without giving it a second thought.

We'll even strap our kids in the back seat for the ride, right? Why would you do that? It's the number five killer in America. Why would we put our kids in the back seat, let alone put ourselves in the car? You know why? Because we've learned to manage our risk. We stay on the right-hand side of the road.

We stop at the red light. We go at the green light. We keep both hands on the steering wheel. We change the oil every few thousand miles, and because we do, our odds at arriving at our destination every day are pretty darn good. They're really good. That's what I mean by virtually eliminating the risk.

Now, imagine investing in real estate with the same confidence that you drive a car. What would your life look like if you did? How would that make you feel? At the very least, I promise you that death by real estate investing is not in the top 100 causes of death in America. If it's on the list at all, I don't know. I've never looked down that far. You know what I mean. As long as you continue to commit to your education and obey the rules,

just like you learned how to drive a car and you continue to obey the rules, as long as you continue to commit to your real estate investing education and obey the real estate investing rules, you'll realize just like I have that real estate investing is the safest investment there is. And when people tell you it's risky or they tell you that you're crazy, you'll just nod your head. Let them have their opinion, and you'll have yours, and you'll know the truth. And you'll come to learn that I'm extremely conservative. I don't like to lose. I don't like to gamble. And because I don't, I haven't lost yet. Knock on wood. I've had a few close calls, but I've always come out on top, and over the next half a dozen episodes, I'll show you exactly how I do that.

And as always, most importantly, how you can do it too. I intend to be here once a week, for the most part, maybe twice a week when I'm feeling ambitious, and maybe a week here and there might get skipped when I am vacationing. But for the most part, I'll be here once a week for 20 to 30 minutes segments as not to overwhelm you. I believe in bite-sized learning as a confused and overwhelmed mind does absolutely nothing. We don't want to do that. We want you to do something. So that's it for today from Epic Real Estate Investing.

And as a very wise man once said, formal education will make you a living. Self-education will make you a fortune. To your success, I am Matt Terrio, living the dream. Thank you for spending this time with Matt Terrio and the Epic Real Estate Investing Podcast. When you have a moment, stop by iTunes to leave your comments and let us know what you think of the show. And if you haven't done so already, get started investing. today by visiting free real estate investing course.com to access Matt's free course,

how to do deals, no money required. Until next time, to your success. To your success. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.