Epic Real Estate Investing - Fact or Fiction? What's Really Getting in Your Way? | 1082

Episode Date: August 12, 2020

This Wednesday, Matt reveals 10 myths that hold you back from becoming a successful real estate investor. The whole progress starts with truth, so let’s separate a fact from fiction for maximum results! Tune in and find out more!   Moreover, you will find out Mercedes’ deal of the week and where you can find more of these amazing stories!    Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-A's dot com.

Here's Matt. Hey there, Epic Investor. It's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. This is the Epic Real Estate Investing Show, and I do this show because I know that most people are living a life of financial sacrifice and financial betrayal. So we've built a system that creates an opportunity for one's money to work harder for them than they did for it, saving them and their families from a lifetime of financial. financial worry and stress. And real estate is the vehicle that I share with people because it works. I know it works.

And I believe everyone deserves a chance. So if this is your first time here, I'm really glad that you found us. If you like what you hear, make sure you hit the subscribe button before you go. And if this is not your first time here, welcome back. And thank you for sharing this with your friends and family. You're the absolute best for doing that. I really appreciate you for that. And if you wanted to and you appreciated me in the way that I appreciate you,

you could go over to iTunes and share your thoughts and leave a little review there on the iTunes. I don't know, the platform, the website, whatever is, iTunes. All righty. So I'm just getting back from vacation. I actually recorded this before I left. But as you are hearing this, I'm getting back from vacation. And last week we discussed the 10 things you need to give up to become a millionaire real estate investor. We went through the fact or the fiction and just kind of analyze what's really holding

you back, right? So there's, we all have this to-do list and then there's this not to-do list. And that's what we talked about last week. So if you missed it, I think it's a pretty good show. Go back and check it out. And thanks for your response on those, by the way. So today, there's some other things that could be holding you back. Maybe it's not the things that you're doing or the things that you're not doing, but maybe it's the things that you believe. It's your beliefs that potentially holding you back. Because if you're not succeeding in real estate or not in the way that you'd like. Let's check to see if it's one of these 10 real estate investing myths that are possibly getting in the way.

And if you've yet to do a deal, perhaps it's one of these myths that are flat out holding you back, holding you down. You know, all progress. It begins with the truth. So let's separate the myth from the truth. Let's separate the fact from the fiction to see what's really holding you down so you can proceed accordingly and start making some problems. Some faster progress, some bigger progress, maybe even a quantum leap.

Quantum leaps really exist within the mind. So if you happen to get offended by anything that I say today, that's probably a clue as to where you want to look first for your own personal breakthrough. What I mean by that is it's what or who that bothers you, whatever gets on your nerves the most. typically is going to make the best teacher if you're coachable and open to learning. All right. So myth number one, my market is saturated here at all the time. The truth is there are more than enough deals to make everyone stinking rich. And anyone can do this.

And most people won't. and that's really where the opportunity lies. I mean, at any given time, there are hundreds of properties for sale in your market for each investor looking for them. In addition, a majority of people who say they are investors are just sitting and watching and waiting for something to fall into their lap.

So don't be one of them. Just go out and make deals happen. The market, yes, there's a lot of investors out there and there's a lot of people that talk the game, and there might even be some people out there that you know that are doing deals, but no one is doing as much as you think they are, and a lot of them ain't doing a darn thing. All right, so that's number one.

Myth number two, this doesn't work in my market. I hear that as well. Everyone thinks the grass is greener. They think the other person's market is better because they saw two people from St. Louis post multiple deals closed on Facebook, and they feel like they got to go to St. Louis, right? This works in every market. Now, true, it may work differently in some markets than another's,

but there are investors making money in every city, in every state of this country, every day of the week. You have to learn your market. You got to understand the rents and the trends and the little local nuances, and, you know, you might need to get to know the local agents and the local bankers and the title companies and the attorneys and the players.

But then learn the techniques and adapt them for your market. If you're in a hot market, you can sell properties really fast and just ride the appreciation, right? If you are in a down market, you can find lots of deals and put yourself in a position to control a lots of real estate.

So when the market does rebound, you know, that rising tide, it lifts all boats. And in a down market, that's what we're talking about. that's what we've been talking about here for the last few months, right? How to creatively acquire and get control of property. And in any market, there are people with financial problems that translate into discounted properties.

Because at the end of the day, for us, for investors working the off market deals, it's not the market, right? It's those little unfortunate things that happen to property owners that happen to people. And sadly, it happens to people every day. just life has a way of kicking people on the teeth and no one is immune to that and it all happens to us from time to time and sometimes thank God you owned a property that you can sell and bail yourself out right so that happens every single day whether the market is up whether the market is down if there's houses in your neighborhood in your market and people live in those houses it will work in your market.

All right. Myth number three, you need money to make money. Well, the truth here, just find a good real estate deal and the money's going to find you. It's not the funding of the deal that pulls it all together. It's the finding of a deal. Ask any seasoned investor. Not even doesn't have to be totally seasoned, just marginally season, just a little bit of lowries on there would be fine.

And they will tell you that lack of funds, it's never an issue. issue. Lack of a good deal, though. Lack of good deals, that's the issue. And if you can negotiate a good price on a house, you're going to find plenty of people willing to put up the money. There's no shortage of money in the system for a good deal. Myth number four, between COVID-19, unemployment, and political and social uncertainty, the market is going to tank. So anything I buy is going to go down and value. That's a long myth. I kind of made that one up. What I really mean by that is the bubble's about to burst, right? What if the bubble burst is kind of the myth?

And so people want to wait. So sell cheaper if you're in the selling mode with attractive terms. You know, when Dell wants to move computers, what do they do? They drop the price. When Nissan wants to go and sell more cars, what do they do? They offer no interest financing. So be creative and do things that make your houses sell and rent faster. If the prices are falling, buy way below market and sell just below market.

You know, if rental vacancies go up, offer incentives. Get free TV or something. You know, heck, it's $25 a month to lease something like that or the satellite service, whatever may be. When everyone else is all down in the dumps, it only clears out the competition. People run from these markets. And it's you that should be running toward these markets. This is when the fortunes are made. is when the market shifts.

And regardless of the market's up or down, there's always a respective low price to buy and a respective high price to sell. And all indicators moving forward is that the demand for rentals is going to go way up. So you're fine. Okay. So, but there's always a strategy.

Whether the market's up or down, it's just a matter of perspective. Don't get scared and buy into the gloom and doom. create your own economy, control your own economy. Myth number five, real estate agents don't want to work with investors. The truth is the right agent, we've talked actually touched on this quite a bit in the last several months talking about working with agents. The right agent can be your best friend and your number one source of business.

You know, I haven't been here, well, now a year, right? I've been here a year in Vegas and I've got one agent here now. I've got a few that send me stuff, but one in particular, and they present me with the real off-market deal or deals every week. So I'm putting an offer's all the time with her, and she knows exactly what I want, and she'll only send that deal to me if it's what I want, if it matches what I'm looking for. So you need to educate a few agents and just let them know exactly what you want. And here's the deal.

And this is kind of was brought to my attention. I looked at it from a different perspective, because, you know, if you've heard my story before, you know, what really caused me to make this transition from real estate agent to real estate investor was I had this one repeat client, a dream client that just kept on giving me a business over and over and over again. He would fax over the listings, he'd fax over the offers. And yeah, that was a fax machine. We had these things where he sent this paper through this machine and a paper came out on the other end. Now we have scanners. But it was a dream client. and I had about one and a half of those.

I had one that was really good, really loyal, really faithful. And I had another one that was just not as active, really good dude, but gave me a lot of business. So be that repeat customer for your agent, because I would do anything for them, anything. So you have to make them understand that you will be giving them business

over and over and over again. And so that means they're going to get paid over and over and over again. All right. So like I said before also, that finding a good real estate agent to work with can be as difficult and as challenging as finding a motivated seller. But they're out there.

The good ones are out there. All right. Real quick, before we get to the rest, Mercedes, she's got her deal of the week to share with you. Hello, this is Mercedes Torres, your turnkey girl, giving you the deal of the week. This week's amazing deal of the week is brought to you from Florissant, Missouri. This was a four-bedroom, two and a half, single-family residence with a whopping 1,800 square feet. Property sold for $125,000 and it rests for $1,295 a month. Best part of this is this property sold with a tenant in place that has a two-year lease.

The whopping cash on cash return for this property is a 9.2%. And the people that landed the deal, Samantha and Oscar, congratulations. You landed an epic deal. For deals very similar to this one, or find your own magic deal on cashflow savvy.com, download the frustrated investors guide to passive income, and you land the deal of the week. All righty, thank you, Mercedes, for more information on that deal of the week. And others just like it.

Go to cashflow savvy.com and download the frustrated investors guide to passive income. Cashflow savvy.com. All righty, myth number six, I've got a job, a spouse, kids, and a little time on my hands. Basically, I've got no time, is the myth. And the truth being, turn off. the TV throughout the television and you're going to have all the time that you need. People spend an average, last I read was three hours per day in front of the TV and even longer on the weekends.

And really, lack of time and three hours a day, that's plenty of time to do your real estate business. Plenty. And, you know, lack of time, really, though, it's just priority issue more than it is a time issue. And that might be offensive to some of you right now. you don't understand, but my life is this and I got this going on. And maybe you do, maybe you do.

But it still comes down to what's the priority, right? And oftentimes it's also very much a focus issue than it is a time issue, more of a focus issue than a time issue. Because if you've got a limited amount of time, which a lot of us do, and I'm not going to argue with you if that's what you're telling me, but you can accomplish a lot in a small amount of time if you're, focused on the right activities. That's what we use the Daily Deal Navigator for inside of Epic Invest Ed, because it keeps you

focused on the right stuff. So if you've got an hour at lunch to work on it, or if you've got, you know, two hours to work on it after you put the kids to bed or you got just two hours in between the son's basketball game and the daughter's softball game on the weekend to work it, then you can do it. if it's important enough to you, it'll get done. This is how I know. This is how I know.

Back in my dating days, and I think most people are like this. I'm going to say everyone's like this. I rarely rarely say everyone, but I think most people, and maybe everyone, that when you got a hot date coming up, it's that first date,

or maybe the second date, and you're really excited about it. And you've got a full schedule. You will make time to get your hair cut, You will make time to get to the mall to buy a new shirt or a new pants or a new dress, whatever it may be. You will get to the dry cleaners and do what you got to do. You will start getting ready two hours before. You will make sure that the car is washed.

You'll make sure that it's filled with gas. You'll make sure that you went to the bank and you got a pocket full of cash, whatever it may be. You make time for what's important to you. And another example. And this is because this is really a biggie. because the lack of time is a big deal for a lot of people. And it was a while back. And I had him on the show recently, old friend, Jay Massey.

And he said something to me one day, and I just wanted to jump over the desk and sock him in his mouth. And this was right in the beginning when we were working together. And we were just getting started. And I came in, I was kind of complaining, like, the scale wasn't moving. I was trying to lose some weight. And the scale wasn't moving. And he said, he asked me, well, why not? And I said, I don't know.

And he said, well, maybe losing weight is just not that important to you. And I felt like he might as well have just socked me in the gut is how that felt. How dare you say it's not. I think about this all the time. I work out every day and I eat right and blah, blah, blah, blah. And he says, well, other people do it because it's more important to them. Maybe it's just not important to you. And he said it's so nonchalantly.

a big deal, but it shook my whole earth. It shook my whole world. And so when I say that to you, just consider maybe financial freedom just isn't that important to you. Oh, I felt it. I'm sorry. I felt it. It hurts. All right. Myth number seven. Real estate is risky. Oh, my God, I hate this one. This one, just drives me crazy. The truth here is, real estate, it's one of the safest investments available to the average. person. I mean, the stock market is totally beyond your control. And savings accounts and certificates of deposits or certificates of disappointment, those CDs and money market funds, they don't give you enough return to make any

real money in any reasonable amount of time. Most people just don't make enough to save enough for those things to work. So you got to be willing to take a calculated risk to make money. And the more you educate yourself, the less risky real estate becomes. in all reality, and you'll come to recognize this eventually. Maybe you already have or I'm going to say it right now and you're going to be like, oh my God, you're absolutely right. And it only takes a few deals for this to start clicking.

And that's the fact that real estate, the real estate is safe. It's the people you choose to work with that insert the risk. The real estate is safe. It's the people you choose to work with that, give, add the risk to the whole environment. I mean, if I look back and look at all the money that I have lost in real estate, it's all been directly or indirectly to a bad property manager or a bad contractor. Because really, all you got to do is for real estate to work, all you have to do is know how to

buy it the right price, which means all you have to do is to know how to determine a property's value. That's it. It's really tough to mess that up. once you've got that dialed in. And so whatever that value is, if you're going to flip it, you just got to make sure that you buy it low enough so you can sell it to a point where you make money.

Or if you're going to hold on to it, you just got to buy it with the right way so that it pays you with a monthly income more than it costs you to hold it. That's just all, that can all be done on a spreadsheet. It's the people that come in and mess it all up. All righty? So real estate, not risky. I hate that one because so many people. believe it. That's why I hate it. Myth eight. I don't know how. I need to learn more before I start.

Okay. The truth. You probably know more than you think you do. You probably know more than enough to get started at least in real estate. I mean, it takes years to learn a lot. You're never going to learn everything before you take that first step and you never learn anything anyway. Success. It's just an ongoing learning process. I forget what that's saying. is like failure or bad decisions leads to failure. Failure leads to better decisions and those better decisions lead to success or something like that.

But there's a lesson in every transaction. To this day, I mean, who hit me up? I can't remember what it was, but someone just hit me up and asked me a question. And I was like, wow, I've never heard that one before. I forget what it was. It was interesting. But that's to this day.

I've been doing this actually. I've been saying a decade, but that's just been the podcast for a decade. So I've been investing myself for almost 15 years. And that was a brand new one to me. So read some books, watch some videos, listen to some podcasts. There's a ton of free information out there. And then just take action on what you learn. Then learn some more and take some more action.

Learn some more. Take some more action. Learn a little, do a little. Learn a little, do a little. Call it moving at the speed of instruction. That is actually in all fairness. That was Jay Massey's saying also back then. So I've given him credit many times over the years.

But since his name came up already in this episode, I thought I'd give him credit there one more time. But I've embraced that as my own now. Myth number nine, seminars and coaching doesn't work. Those late night infomercials are all a bunch of scams. That workshop is a scam. They don't work. Well, the truth is you can convince yourself that anything won't work.

as Henry Ford famously once said, maybe you can say this with me because you know it's coming. Whether you think you can or you think you can't, you are right. Quite the cliche. But it doesn't make it any less true

just because you've heard it a bunch of times. You know, every real estate transaction has risks. Some risks are realistic while others are remote. If you listen to the critics, if you listen to the naysayers, if you listen to the pessimists and the resigns and cynical people, you'll convince yourself it doesn't work. And most people that criticize money-making ideas,

they need to do so because they ain't making any money themselves. After all, if it were true, what is their excuse for not being successful? Make it a point of not taking financial advice from anyone who makes less than you do. Watch out for that person in the cubicle next to you. Watch out for that neighbor that owns the smaller house than you. Watch out for that broke brother-in-law.

I used to have one of those. And if you want to move fast, investing in your education and aligning yourself with experienced people, whether that is a coach, whether that is a mentor, those things will do it as fast as anything else. if there were a shortcut,

if there were a silver bullet for this business, for any business for that matter, it would be to align yourself with people that are doing what it is that you want to do and they're succeeding with it and associate with them, stay close to them, become a value to them.

And whether you can do that just because you've got a friend that's doing it or if you got to go pay somebody that's doing it, the end result is going to be the same an accelerated journey for you. Right? So that's number nine, myth nine. Myth 10, that comes after nine, right?

I need good credit to buy houses. Well, the truth is, good credit helps, but you do not need it to make money in real estate. It was just two years ago. So I've been doing this for 15 years, almost 15 years. it was just two years ago I got my first bank loan

for a house just two years ago. So I built this whole thing without credits. So I mean, with lease options and owner financing and flipping properties

and the other creative techniques and strategies that we've talked about here over the last several months, they don't require good credit or any credit at all. And if you do need credit, you can always use a partner

who has a good credit. You can also borrow hard money without having good credit. And in the meantime, you can work on fixing your bad credit so you can use it as an asset in the future. Because it's nice when you got it, but I built the whole thing without it. So getting a good deal under contract, that's all the credit you need to turn a profit in this business.

And you can do that over and over and over and over again without a credit score. Ready? So if you found this episode valuable, good chance. You know somebody else who otherwise? and when their name comes to mind, let them know, share it with them. And ask them to click the subscribe button when they get here, and I'll take great care of them. All righty? That's it for today.

God loves you, and so do I. Health, peace, blessings, and success to you. I'm Matt Terrio, living the dream. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know home boy, we got the cash flow. This podcast is a part of the C-suite Radio Network.

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