Epic Real Estate Investing - EREI 057: How to Generate More Business with No Additional Effort

Episode Date: July 24, 2013

Real estate investing is tough enough. There's no need to work harder to earn more when you can work smarter to earn more. Makes sense, right? There are a lot of things one can do to work smarter such as leveraging other people's efforts, experience, money, etc... But! There's something else you can do that people rarely discuss as a method of generating more business, and it's so easy, too. On today's episode, Matt shares this rarely discussed method for generating long-term business, as well as how he's put a system in place that will allow you to tap into his buyer's list so you can make more money wholesaling properties. How's that for a nice bonus way to work smarter?! C'mon! Let's get'r done! Download Matt's free real estate investing course at FreeRealEstateInvestingCourse.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Hey there, this is episode 57 of the Epic Real Estate Investing podcast. My name is Matt Terrio, the Rat Race Escape Artist. And this is the podcast that will show you how to get out of the rat race using real estate yourself. I mean, that's exactly what I did. And I did it using none of my own money and none of my own credit. And I did it that way because I didn't have any money and I had a terrible credit score when I got started. So I really didn't have a choice.

You see, I learned a few creative investing strategies. And then I came up with a few of my own. I just kind of put it all together and I made it happen. And there are no secrets here. I mean, I'm more than happy to share with you exactly how I did it. And step by step, in fact, I put a very simple and easy to follow course together just for you. And it's absolutely free. And you can get it at free real estate investing course.com.

free real estate investing course.com. All right. So I had a lot of great feedback from last week's show. It's awesome. Here I am back one week later, sticking to the weekly schedule. And, you know, last week's show, I answered your questions on the air. And if you have a question that you'd like me to answer, you can call and leave your question at 1-888-891-7203.

888-891-7203. And leave your question there, and I will get to it as soon as I possibly can. Now, as this podcast grows in popularity and as you're all implementing what you're learning here in the free course and here on the podcast and in the Epic Pro Academy for my academy members, you know, I'm receiving a large amount of emails containing the deals that you're putting under contract. And, you know, you're presenting your deals to me and you're asking me my opinion and what I think. And a lot of you are looking for me to partner with you, as I mentioned that I'm willing to do. I mentioned that in the free course.

And I absolutely am. you, you already know that that's the real deal because I've already done several deals with several of you. And I want to continue doing that. I want to continue helping you out because it helps me out too. I make money. You make money. We both win in that situation. But in order for me to continue doing them, I've got to go over the rules. I've got to cover the rules again. I kind of, I've explained the rules, not all in one place, a little bit in the course, a little bit here on the, on the, what you call it, on the podcast and a little bit in the email. But I just want to cover my all in one place, so they're totally, you know, they're all in one place. So these rules are in place

to mostly save you and I a bunch of time and frustration. My time is valuable. Your time is valuable. So we don't want to spend it unnecessarily. We only got so much, right? So first rule, you've got to follow the steps in the free course. That's the first rule. You've got to follow those steps. I put them there for a reason. You can't just do steps one through three and then try to hand it off to me. That's not a partnership. That's you wanting me to do the deal for you. Okay? I can't do that. You've got to find the deal. You've got to analyze the deal and you've got to secure the deal. And then I can partner with you and I'll help you close the deal. Okay. Then we can talk about a partnership. But you got to do those steps first. I think that's all the way.

Steps one through eight in the free course. Of the 10 steps, it's one through eight. So you got to complete that part of it if you want me to do it. Second rule, I am no longer accepting your deals via phone or email. I'm not even going to look at them or I can't even have a conversation with you and listen about the deal. And there's two reasons for that. First, it's impossible for me to keep track of that way. I just have too many emails in my inbox. I have no way of sorting them and I don't want to figure out a system because it's not very efficient anyway. And the second reason is most of you either don't have enough or don't provide me with all of the information that I need to make a decision, that anyone, any investor would need to make a decision on whether that's a good

deal or not. And that's basically the reason for rule number one. You've got to follow all of the steps in the free course. That's why I put it together so that you don't miss anything. Whether you're dealing with me or not, I don't want you to miss anything, particularly anything that may cost you an opportunity or cost you some money. Okay? This really is, it's, the real estate isn't a risky business if you follow the steps. So I want to make sure that you follow those steps. That's why I laid them out for you. So to resolve this, so we can do deals together, I had to come up with something a little bit more efficient. I put a system in place. And I mentioned it very briefly a few episodes ago. And some of you, you jumped at the opportunity. You jumped all over it and you jumped at it right

away and you put the system to use and you're already making some good money. And congratulations to you. And but, you know, most of you probably just missed it as I didn't go into great detail. It was a little bit of an afterthought to even mention it at all in that episode. Because it's, you know, it was somewhat of an experiment. But the experiment is proving successful and everything's working. And, you know, for those of you that have embraced this new system and followed the procedure, our transactions, they've been very smooth. And because it was very smooth, it was very easy for me to get involved with your deals

and be your partner, and it was very easy for you to get paid. And that's how it should be, and that's how I want to keep it. So if you want to investigate this system for yourself, that system is up and running right now at epic wholesalers.com, epic wholesalers.com. I'm still tweaking the website just a little bit,

but it is up and running and it's fully functional. So at this website, you can register basically to become an official wholesaler for Epic Real Estate. And by doing this, you create an additional exit strategy for your real estate investing business, meaning if you find a good deal, you know, you've got options. You know, you can always keep it for yourself and rent it out and keep it as a cash flowing property. Or you can wholesale it to another investor or you can fix and flip it. Or, you know, if none of those strategies work for you, if you can't find a, an exit strategy to execute there, you've got an additional option in wholesaling it to my

buyer's list. I'm going to make my buyer's list available to you. I can be the connection to, between your deal and your buyer. And I'm not going to take a penny out of your pocket to do that. Okay. It's just another option for you to successfully close some deals and make some great money. All right. I mean, I've already paid out tens of thousands of dollars through the system in the last couple months. And if that feels right or if it sounds like it makes sense, then you can participate in those payouts as well. Deal? All right, I did it just for you.

And you can get the details at epic wholesalers.com. That's where all the details are. It's all laid out. It's very clear. I try to make it as simple as possible, so anyone could understand it. So easy a caveman can do it, right? You know, I'll actually just go over them really quick right here.

There's not really too much to cover. It's like this. You see, I know you want to wholesale properties. You tell me all the time. and that's probably why you're listening. But you don't have your buyers list together yet, right? But you want to get started. I understand.

I mean, this was a big concern of mine when I got started as well. It was a struggle. And for some of you, depending on your experience, your location, your knowledge, your time, your resources, the levels of challenge for you that they can vary greatly. But I don't want you to let this little roadblock or detail of not having a buyer's list together yet. I don't want that detail to stop you. I don't want you to stop you or get in the way of you making any money.

like right now, that type of money. You know, over time, if you follow these steps in the free real estate investing course, you'll build a buyer's list to promote your deals too. So to be patient, it's going to happen. In the meantime, I just want to see if I can perhaps help you make some money right now. And, you know, as you know, I show people how to invest in real estate. I do it through this podcast. I do it through my website and I do it through the Epic Pro Academy.

And I show people how to invest in real estate. Or I actually do the investing for people that don't want to do the work themselves. And currently, I'm buying income properties all across the country, and I'm working with several busy professionals that want to invest in real estate. And they have the money to do it. But they can't because either they don't know how or they don't have the time. And now, I don't know if this is going to make sense for you or not. And it's perfectly okay if it doesn't, but if you're willing to take on the free course and what it recommends to find deals and you put them under contract, you follow all the steps, I'd be more than happy to share my all-cash

buyers list with you. You bring the deal, I'll bring the buyer, and if there's a meeting of the mines, you'll get paid. Very simple. So here's how it works. When you go to epic wholesalers.com, you'll find a description of what my buyers want. And actually, I'll just go there right now. I'll type in, let's see, epic wholesalers.com. And here's What they want. This is what they're looking for. They're looking for one to four residential units. They're looking for three bedrooms or more for single family dwellings.

Two bedrooms are more per unit for multi-family dwellings. And they're looking for a market rent of two to four percent of the purchase price. And four percent's a little on the high side, but they're not going to reject that. But two percent, hey, then there's many markets, many, many markets in America right now, where that's readily, those are readily available. And they are open to low-income areas, totally okay. Just no war zones. They want to stay from the crime-ridden areas,

but they're okay with low-income working areas. And where they're looking right now, they're looking in Memphis, Tennessee, they're looking in St. Louis, Missouri, Kansas City, Missouri, Cincinnati, Ohio, Cleveland, Ohio, and Columbus, Ohio. So those are the markets that they're ready to pull the trigger on right now. I mean, if it fits the criteria and it's in one of those markets,

boom, it can be a very simple, easy transaction for you and a quick payday for you. Now, if you have properties that fit that criteria, here's three musts, okay? Three musts to have your property considered. First, it must be either your property. You must have it under contract or have a very close relationship

with the decision maker to sell the property. You have to have some sort of control over it. It can't just be, hey, I heard about a deal around the corner, you know, here's the specs, go get it and pay me. Now, it can't be that way. It has to be either your property that you're selling, or you have to have it under contract,

or you know, you just have to have a very close relationship with the decision maker, and you'll be able to influence that seller to sell to us or not. Okay, you have to have some sort of control over it. And then second thing that you absolutely must have, you must include an estimated rehab, or a rehab estimate. I said that backwards, sorry.

Include a rehab estimate for rent-ready condition. It doesn't have to be, you know, first class and a luxury type rehab just to get it to rent-ready. So just wanted to be clean and everything working. That's the condition they wanted in. And then you just have to include a conservative market rent and a conservative market rent. And so that's what they must have. And, you know, I can't stress those two points there at the end, the estimate of rehab costs and a conservative market rent. And we're going to discuss why those two points are so critical to your real estate investing in just a minute.

Now, you'll find a list of other areas of the country that my buyers will consider. So make sure you read the homepage at epic wholesalers.com in its entirety. Right there at the bottom, you'll see the other markets. And refer to this page frequently. I update the page often as buying criteria changes and my buyer's list changes. So they're looking for different stuff. Now, if you can find the deals that meet those criteria, what you'll want to do is click register at that web page, register here at the top of the page.

and you'll notice right away that there is a one-time registration fee of $97. Now, before you think to yourself, I knew there was a catch. Don't. Don't do that. Don't look at why this won't work or don't look at why there's a catch or don't try to look at an angle. I want you to look at how it can work. I want this to work for you and it will work for you and it's already worked for several

of you already. And please know, I don't want your money. I don't want your $97. I don't need your $97. What I want is to work with people that are serious about finding deals and getting paid for it. What I don't want is to spend a bunch of time with people only interested in wholesaling us deals. I don't want to spend time with the people that are interested. So I just put a small barrier to entry in place of $97.

So I have more time for you, the committed, the people that are willing to make that investment in themselves. That's why the fee. And to prove to you that I don't want your money. this is not about me making a bunch of $97 hits. No, at the close of your first deal, I'm going to refund five times your registration fee. Okay, I'm going to refund it five times. I'm going to give you $485 on top of your wholesale fee

at the close of your first transaction with us. Okay? Good. So moving on. Once you complete the registration and log in, you're going to be directed to the submit your property page. Just simply fill in the fields with the corresponding property information and click submit at the bottom of the full.

form. The system, it performs a really quick calculation behind the scenes, and it emails my acquisition team the results. And the acquisition team should respond to you within 24 to 48 hours and will either accept decline or count your offer. Okay, very simple. I put it out that it's all completely automated and that way I can respond to the deal that you guys are putting under contract. Now, included with your registration is access to me for support. You see, it's in my best interest to help you succeed. Because, I mean, if you don't succeed, I don't succeed. I've been talking about this for months now. My new intention around this show is that I want my results to be dependent on your results.

See, I don't get paid this way until you get your desired result. And I continue to look for ways to set up my business where I'm not compensated unless you get what you want. I don't get paid unless I buy your deals. That's how I get paid. I have to buy your deal to get paid. and I can't buy your deals unless you are finding deals. So it's in my best interest to support you in finding deals so that you get paid. That makes sense?

Cool. So if that does make sense, do you just go to Epic Wholesailers.com to register. Okay? So I actually didn't intend on speaking that much about Epic Wholesalers on today's episode, but for those dozen or so of you that have already begun to work with me through Epic Wholesalers, something has come up that's worthy of discussion. something that will absolutely benefit your business, whether you and I ever work together or not. So this is now a conversation separate from Epic wholesale.

This is about your business in general. And this hasn't become a problem, but I'm starting to see some signs of a potential problem that could. And that has to do with integrity within your business, with honesty in your business, with transparency in your business, with an authentic quest for finding win-win solutions for others real estate challenges. I mean, overall, what I want to talk about is your reputation. I want you to talk about your own personal reputation and how that reputation, your reputation, affects your business. Now, I believe most people have great intentions.

I believe that. I believe most people are inherently good people. You know, when everything is going good in someone's life, when life is good, people are good. And they're good to each other. That's my observation. That's pretty much been my experience. Now, what I'm starting to notice in working with my epic wholesalers is it's completely natural.

Nobody's wrong for this. I mean, it's completely natural in any business where you're compensated per transaction. For example, like commission-based sales. And that's essentially what wholesaling is. You know, if you don't wholesale a property, you don't get paid. Very simple. So most of my wholesalers have been making some good money. And a few of them have been making awesome money, as they should.

I mean, they've been working hard. They've been finding the deals. and they've been compensated for in direct proportion to their efforts. So congratulations to you, and I want that to continue. So when you're paid per your performance, and specifically I'm speaking here per transaction, and you start making good money, it's very natural in wanting to make great money.

I mean, we all want to just continue to improve and continue to do better. And through this type of business, the only way to make great money is basically to do more transactions, more of what you're already doing to make the good money. So you've got a choice. You see, you can either pick up your lead generation activities to generate more leads, of which would translate into more deals, or you can try to get more out of your existing deals, your existing leads.

If you choose to do the latter, how do you turn more of your existing leads into closed transactions? How would you do that? If you weren't going to increase your lead generation, you weren't going to generate more leads, you weren't going to talk to more people. You're just going to try and take the existing leads that you're going to. you have and make more conversions with that. How would you do that?

Well, you have a couple options. Either you expand your exposure with the hopes you find someone that sees eye to eye with you on what a deal is. So you just reach out to more people and hopefully you stumble across a person that agrees with you that you've got a deal. Or maybe you do what you can to present your deals in their best possible light. maybe, you know, embellish maybe, enhance, hype up your deals a little bit. And I'm not talking about necessarily lying, but just presenting more of a best case scenario

of your deals as opposed to a more realistic scenario. Now, I mean, I've been in sales all of my life. I haven't known much more than commissioned-based sales. I just don't believe in a fixed income. So I always chose commission sales type jobs or positions so I could have more control over how much money I made. If I worked hard, I wanted to make more money. That's just how I want it. And I'll admit, I went to the school. I went to many schools to learn how to sell. And I learned many different approaches. And one thing that, you know, all these approaches have in common, I mean, just part

of normal selling is giving presentations of your product or service. You have to present your product or service if you ever expect to sell to a customer. How are they ever going to know about you, right? And during your presentations, you want to present your product or service in the best possible light. That's your job. And I find this to be the case with wholesalers. And really, I mean, or just any seller of real estate, actually, I mean, anyone that's selling is going to want to present their product or service in the best possible light. And when it comes to wholesalers or general sellers of real estate, they present their properties in the best possible light with the intent of first making the sale and second, maximizing the profit of that sale. You know,

they put the real pretty language and description, they put the pretty pictures, and they put the nice numbers on there to create a compelling story to make it appetizing for someone to want to purchase. That's their job. That's what you're supposed to do. That's what salespeople are supposed to do.

And those that do that well are compensated very well. So my wholesalers, they've been presenting their properties to me in the best possible light. And not that there's anything inherently wrong with that. there's nothing wrong with it at all. But I'll extend a tip to you if making your real estate investing is to be a long-term endeavor to you.

And I'm certain you've heard this before, but it's very much in your best interest to under-promise and over-deliver. I know you've heard that before. It is in your best interest to under-promise and over-deliver. If you create a reputation for the properties that you sell to over-deliver, you will never, ever be at a loss for customers or money or private money or investors. If you are always underpromising and over-delivering, you'll never be at a loss for opportunity. You'll never be at a loss for customers.

You'll never be lost for money. Never. Conversely, if you develop a reputation for over-promising and under-delivering, failing to meet expectations of your customer, it's going to be a tough uphill battle for you. And if you do that negligently or flagrantly, it's going to be a very short career for you, regardless of what endeavor it is. But in real estate, this is what we're talking about here.

You know, every deal is going to take so much more effort and time on your part to get it done. Now, that may be obvious to you. In fact, I hope it is obvious to you. You know, as this dynamic, it exists in just about every business, right? Indeed. But with real estate, it's a little different. It's a little different, meaning it doesn't take much of an over-promise.

It doesn't take much of an under-deliver to cause some series mayhem in your business. It doesn't take much to miscalculate and end up, you know, even if you had the intention of under-promising and over-delivering. It doesn't take much of a miscalculation on your part to cause the opposite. I mean, a little mistake can create big problems inside of real estate. And here's what I mean. You know, I mentioned earlier that in order for my buyers to make a decision, and this is not just my buyers, this would be, this would go for any experienced real estate investor, any experienced buyer.

They absolutely need a couple of things. One, they need an accurate estimate of rehab costs to get the property in rent-ready condition. And that would be the same if they were going to fix and flip it as well. They need an accurate estimate of what it would take. take to get it in resale condition also. And two, they need a conservative market rent figure, specifically to the cash flow investors. Now, here's where a seemingly very small mistake can make a big difference for your end buyer or customer resulting in soiling your competition, even if it's unintentional.

It can happen accidentally. It happens all the time accidentally. There's a lot of, you know, variables and moving parts that we discuss all the time that that might not be in your control or not as much control as much control as you. you'd like that to be. So an inaccurate estimate of repairs isn't necessarily that bad of a mistake. I mean, nobody ever gets it right on the money all the time. But understand that this is a dollar-for-dollar mistake. Okay? I mean, if you're $1,000 off on the estimate, your buyer is going to have to come up with an extra $1,000. Dollar-for-dollar, that's what I mean. Not the end of the world. However, the more

inaccurate that estimate or the more short you are on that estimate, the worse it is, the worst damage it causes and the worst it is for your reputation. And that buyer is going to think twice, maybe three times, next time before they actually purchase one of your deals. If they, and if it was a really bad mistake, they might not purchase any deals from you ever again. I don't know. But understand, it's just a dollar for dollar mistake. I mean, underestimating repairs like that can and it often does, leaves a bad taste in your buyer's mouth. And so you want to do what you can over there to under promise and over-deliver. I mean, imagine that you estimated a rehab job of $10,000.

And it actually only cost your buyer $9,000 to complete the rehab. They're going to be pleasantly surprised and most likely on the phone with you as as soon as they complete their job looking for their next deal. But going the other way around, hey, that's going to cause them to look twice or three times if the next time they do business with you. I mean, in this very basic simple practice of creating a reputation for under-promising and over-delivering,

actually generates business for you. It builds your business. It's not just a good way of doing business. It's not just the right thing to do. It actually generates more business for you with no additional effort. It's happening while you're doing your work already. It generates revenue and it generates people that want to give you money to invest. and it does all of this with no additional effort.

If as long as that's your mindset and that's how you're performing, you generate more business for yourself. I mean, I've built my business on this principle, and I have virtually eliminated my prospecting. And that was just something I didn't like to do. I didn't like to market. I didn't like to field the calls.

Even if they were warm, even if they were calling me, I didn't like cold calling. I don't like knocking on doors. I don't like any of that. Now, I had to do all of that to get my business up and running, but I very quickly adopted the practice of under-promising and over-delivering. And what I've been able to do is virtually eliminate my prospecting activities.

I don't spend nearly the time, energy, and money to generate buyer leads and investor leads that I did in the beginning. So that's the concept simply explained. Dollar-for-dollar mistakes or dollar-for-dollar profits, that's easy to understand. Okay? I wanted to get that across first. Now, let's look at an error on the market rent side, on estimating rent. what can, you know, simply appear as a small mistake can result into a very significant problem

for your end buyers. And in this case, I'm referring to your cash flow investors. And, you know, you should be in this market, you should be focused on this market of cash flow investors. That's where the money is right now. I mean, there are a lot of cash flow buyers out there right now, both right here in the continental United States and a lot of money coming from overseas and from abroad. to buy U.S. real estate and they're all looking for cash flow investments.

I mean, cash flow, hey, I'd like to think I have some sort of participation in this, but it's rapidly gaining ground on fix and flip in that sex appeal department. Cash flow is becoming more attractive to a lot of people now that more people are understanding it. So knowing exactly what a property will rent for is very, very important these days. because without it, you can't really calculate or relay the return on investment to your end buyer, the ROI. And if you can't calculate that ROI, you're not going to be very good in selling your properties to cash flow investors of again where I think is some of the best money right now. So let's go back to creating and protecting our reputations. if you find a house and your intent is to sell it to a cash flow buyer and the market rent for

that property is somewhere in the ballpark let's say of $750 to $800, that's the rent and that's your intent to sell it to a cash flow buyer. It's going to rent for between $750 and $800. And let's say that's a realistic range. That's realistically what it will rent for. We're not going to embellish or enhance or anything. This is really what it would rent for. What number of those two numbers are you going to present on your marketing material?

or when you stand up at your real estate investor club and you get to of the needs and wants and you get to talk about what you have you know what number are you going to present what number are you going to represent are you going to use the $750 a month rent or are you going to use the $800 a month rent it doesn't seem like much right it's just $50 a month it's just that's the difference between the two it's not nearly as big as the $1,000 mistake we made on the rehab estimate example right no it's just $50 a month Not nearly as big as a $1,000 mistake, right? Wrong.

It's actually a very big deal. It's a much bigger deal than you can probably imagine. Here's what I mean. Let's say this property overall with the rehab and purchase price, it's a nice flat 40 grand. Let me say that again. $30,000 for the property, $10,000 for the rehab. So this one property is going to cost the investor $40,000 to acquire the property and fix it. and let's say the rent was between $750 and $800 a month.

And on your marketing flyer, you stated those as the facts. $30,000 for the property, $10,000 for the rehab, and because you wanted to present this property in its best possible light, you used $800 as the rent. You used the higher number. Nothing wrong with that? It's a realistic number. You want to present this property in its best possible light.

You have not lied. You're not being dishonest. you're just wanting to present your property the best way that you can, right? Because you want to attract more buyers. Yes, perfect. And using those numbers, that would basically produce a 15% cash on cash return on investment. So you've got that on your flyer too. Hey, this is going to produce a 15% cash on cash.

You got your little calculation. You've done the math. And you've got it all laid out using that $800 a month rent. That's a great deal. You should probably not have a problem in selling that to a cash flow buyer. you should have no problem at all. Now, let's say the rehab was off by $1,000. And it actually cost your investor $11,000 for that rehab.

What does that $1,000 error on the rehab do to the ROI? Sure, I mean, it costs your cash flow buyer an extra $1,000. But what does it do to your buyer's return on investment? Well, instead of a $40,000 investment now, your buyer's investment is now $41,000, because it costs an extra $1,000, right? Let's say they got that $800 a month. Let's say they even got the high rent. That $1,000 underestimate on the rehab change,

that would change the ROI from 15% to a 14.6%. Okay? Just a 0.4% return difference. Not that big of a deal, right? It's $1,000. but it only affected the performance of the investment by 0.4%, not a big deal. I mean, not that big of a deal. I mean, it wouldn't kill the deal for you.

Now, let's try a second scenario. Let's say you were right on the money. You're right on the money and estimating the rehab, but you are off by $50 a month on the rent. Okay? So you nailed the rehab amount, but you're off $50 on the month on the rent. So instead of the property renting for that $800 a month, it rented, for $750 a month. How would that mistake affect the ROI?

And that's just a small little miscalculation of $50 a month. No big deal, right? Well, that small little miscalculation of just $50 a month drops the return on investment from 15% to 13.5%. A 1.5% difference. Still, maybe not a deal breaker in this example, but the point was to illustrate the difference in miscalculating the rehab versus miscalculating the rent

in your marketing materials to your cash flow buyers. You see the small little $50 mistake on the rent produces three times the effect as the seemingly large $1,000 mistake on the rehab. And that has a three, that small little miscalculation produces a three times the difference, three times the impact on your cash flow buyer's portfolio performance. Now, that can leave a bad taste in your cash flow buyer's mouth.

And it's just a small little mistake, and it could have been a very honest mistake. And that small little mistake can soil your reputation. So as a rule of thumb, how I practice my business, as a rule of thumb when presenting my deals to cash flow buyers, and I want you to adopt this as well, you want to estimate high on the rehab, and you want to estimate low on the rent. You want to estimate high on the rehab, so that $10,000 rehab, I might put it, that is $11,000 or $12,000 on my marketing materials. And I'm going to go low on the rent.

So if it's between $750 and $800 is the rent, the most I'm going to use is $750. I might put $7.25, $700 there. And when you do that and you start adopting that as normal practice, that's how you can consistently under promise and over-deliver and create a great reputation, a reputation that causes deals and causes investor money to come to you. I mean, here's what I mean.

Let's imagine that same property actually came in at $1,000 cheaper on the rehab. So it was only $9,000. And the property manager was able to get an additional $50 on top of the market rent, which happens all the time because that's not an exact science. So the investment for your buyer was only $39,000 and they're getting $850 a month. Seemingly, not that big deal, right? I mean, you're basically right on the money with your numbers. You're not that far off.

But how do these small little shifts in numbers affect the return on investment? investment. Well, what you were promoting as a 15% deal is now a 16% plus deal. And your cash buyer now is ecstatic. They're very happy. And they're very happy because that's not normal. That's not how normal wholesalers and real estate investors at. But your buyer is ecstatic and they want to buy another property from you now. And not only do they want to buy another property, they've recommended a relative and a friend to you that also want to buy properties. So now instead of that first scenario of presenting your property in the best possible light in the best case scenario and cashing in on your wholesale fee, because you probably still

sell it and you'll probably still get paid for it. Instead of cashing in on your wholesale fee the first way by presenting your deals in their best light, you've now got three or four or more wholesale deals or wholesale fees. to cash in on by under-promising and over-delivering. And that's how I've built my business. And that's why I spend very little time in generating new business. And now it just comes to me. It really, really does.

And that's not to impress you. It's to prove to you that a good reputation in this business works. And I want you to focus on that. I want you to focus on keeping your nose clean. I want you to focus on under-promising and over-delivering. I want you to create a good reputation also. I mean, it makes the business so much easier, and it pays so much more, and it pays so much longer. And I want you to keep that in mind as you build your business.

Keep in mind that when you submit properties, whether to your buyer's list or to epic wholesalers. dot com, keep it in mind when you submit that stuff is, is you, when you create your marketing flyers and when you create your postcards and all your other marketing materials, keep that in mind that you want to under promise and over deliver. And a really simple way of doing that is to overestimate the repairs, if there are any, and underestimate the market rents. If you do that, you're going to be selling good investments and you're going to have repeat business and you're going to have referral business. That's what's in it for you. I mean, if you're in

this for the long haul, if you want this to be a business and not just a one-off deal, make it a habit. No, develop it within your character as normal practice to under promise and over-deliver. Okay? That's it for today. If you happen to have a question, comment or concern that you'd like me to answer or address here live on the show, please share with them with me on the epic real estate investing hotline at 1-888-891-7203, 1-888-891-7203. And until next time, as a very wise person once said, a promise made is a debt unpaid. Pay your debts with interest. Always. To your success, 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 B.S.

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. This podcast is a part of the C-suite Radio Network.

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