Epic Real Estate Investing - Finding Even MORE Money for Your Next Turnkey Property | 519

Episode Date: November 10, 2018

In the previous episode, Mercedes shared where to find money for your next turnkey property. Today, she will introduce an even broader set of tools that will help you get your investing money fast! Brush up on how to use money from a life insurance policy, how motorized toys can serve as an investment tool, and how to get your start-up capital through Epic Fast Funding.  Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. So you want to be a real estate investor, but you don't want to do the work. If there were only a way where someone else could do it for you, now there is. Tune in here each and every Saturday on the Epic Real Estate Investing show for Turnkey Saturdays with your host, Mercedes Torres. Hello, hello, and welcome to the Turnkey Real Estate Investing podcast, brought to you by Epic Real Estate. My name is Mercedes Torres and I am privileged enough to be partners in crime with Mr. Matt Terrio, the gentleman who created the epic real estate empire.

For those of you who are just turning in now to turnkey real estate investing Saturdays, I created this show because of the demand this changing market is creating and it really caters to busy professionals or busy people who are interested in real estate investing but just don't have the time to do it themselves or really don't want to learn all the nuts and bolts there is to know about real estate investing. Now, if you're unclear as to what turnkey real estate investing really is, I invite you to go back to listen to episode number 483. As in that episode, I reveal the three types of people that are absolutely crushing it

in turnkey real estate investments. You never know. You could be one of those type of people and you don't even know it. Now, that would be a shame if you're losing out on an opportunity or even worse, missing out on your financial freedom. So let's get started. Let's not delay. Let's get right into it. So several weeks ago, I recorded a, I recorded a episode that focused on where to find the money for your first or your next investment property. Now, I simply shared strategies that I have been using and techniques that Matt and I have been using personally for building our own personal portfolio. And I even use the analogy of trying on a pair of sunglasses when you're shopping or ladies, a pair of shoes while you're shopping, and looking in the mirror, checking them out to see if

they're a good fit for you. And if they didn't fit, then my analogy was to put them back on the shelf and keep shopping. I thought I was going to get some serious backlash and negative comments because after all, what Matt and I have done over the years has been a bit bold. So I made some bold statements, I admit, but I did back it up by saying, I know it works because Matt and I have done it. Now, Either the people that heard that episode moved on doing other things or likely the same old things that they're doing. But perhaps it landed with this audience a little bit better than I thought. But what it really did is it made a lot of you think. It made you think about your own situation because, gosh, I got my share of emails. Good emails, that is. And by the way, ladies and gentlemen,

if you send me an email, I will respond, believe it or not. Some people actually said to me, I can't believe you're responding to my email. Now, I don't necessarily respond right away, and if I'm not in the office, you'll get my auto responder, but sometimes it takes me two or three days to get back to you, but I do respond to my emails. Having said that, I did get my share of emails, and it made me realize that so many of you out there were looking for that secret thing that or that missing component to just get started in real estate. So back to what I was talking about. That previous episode that I recorded,

I covered ideas of finding piles of money in your life and turning them into streams of income. I gave you a few ideas such as, you know, gold and silver that you may have laying around. or savings accounts that weren't producing a massive return, CDs, or even possibly using the equity of your own home. And lastly, any retirement accounts that you may have. And by the way, it's going to become more and more prevalent as time goes on that the old traditional ways of saving money is not going to work as well. I dare even say it's going to be the obsolete way of achieving any sort of financial freedom.

It just doesn't work anymore. And it's not working nearly as the way it used to work so much as 10, 15, 20 years ago. It's taking less and less research on people's part these days to discover evidence that supports the idea I've been shouting out for a very long time. In fact, people like Robert Kiyosaki, he's been shouting and out for many, many more years before Matt and I even brought it to the table. Again, if you missed that last episode, I really urge you to go back and catch it because I think it gives you some very basic good ideas. And from what I learned, some people said, I never thought that I could use my money in that fashion. So I urge you to go back and listen to that.

But if you did catch that episode, I hope you took me up on my suggestion of doing some of your homework and seeing if any of those methods were suitable for you. Now, what I'm going to do in this episode is cover a few more key places to find money that may either work on its own or even in conjunction to a previous idea that I shared with you to help you get your first or next property. And I also have a resource, a brand new resources that I'm going to share with you that's FICO-driven that alone can help you jump into your first investment property. Okay?

So with that, let's continue. So one place you have a pile of money that is underperforming for you, that you may not thought of is inside a life insurance policy. Now, most life insurance policies aren't really sold primarily as a life insurance at all because no one wants to call it a death insurance policy. Instead, they're sold as a savings or an investment for the future. To the add end, most policies build up what is called a cash value for the purpose. of borrowing against it or withdrawing in its retirement.

Now, don't get me wrong. I do believe in life insurance while you're getting your wealth together in case something happens to you, especially if you're young and if you have young kids. But if you think about it, what is life insurance? It's a way to provide an income that keeps coming in when you're gone. Well, cash flowing real estate absolutely does that for you. And that's the good part. You don't have to be dead for income to continue to come in or for income to begin. Just like I mentioned in the previous episode, using your retirement funds to buy real estate, it will pay you now and when you're in

retirement. So there's really no need to wait. Now, in that episode, I talked about looking into using other vehicles like a 401k or an IRA. And yes, there are penalties, but really those are just labels. If you access your money, yes, you'll get penalized. But at the end of the day, it's pluses and minuses. And I went into great detail about the those pluses and minuses. Same idea with a life insurance. You can use your cash value or your life insurance to pay you now via real estate and leave it to your errors after they're gone of which they will continue to cash flow for that. If you've had a life insurance policy for a long time, you likely have a nice chunk of money sitting right there and maybe it's time that's time

you do some math and see what else that money can do for you instead of just sitting there and waiting for you to pass, if you will. If you still need insurance, maybe there's a less expensive policy that you can buy that will still give you the coverage that you need temporarily while you're allowing yourself to feel comfortable and doing other things, so to speak, and working that money. when you do withdraw cash from your life insurance policy, you're surrendering. Usually, there is no tax consequence for taking the money out. So as long as the amount that you're taking out is less than the grand total of your premiums,

you've paid over the years, you're okay. I know that takes a little bit of registering and digesting, but continue to follow me here. Because think about it. Your life insurance policy in most cases can be used as a savings account. So don't worry about remembering all this stuff. Your insurance company would be the one that's able to give you a little more detail about the situation. And of course, it is critical, as I say, every single time on every episode, check with your tax professional. I am not an accountant.

I'm not a CPA. I am not a financial planner. I simply share with you the techniques that have worked for me throughout the years. And I will say it does work. Alternatively, if you don't want to completely surrender your policy to withdraw the cash, because perhaps you have most of the money you need to purchase a property from another source and you just need a little bit more to make up the difference, Well, in that case, you can almost always borrow against the cash inside your policy instead.

I mean, the possibilities are out there. Might take a little bit of research on your behalf, but it's very, very possible. Again, this isn't for everyone, my friends, but maybe this can spark an idea that you haven't considered end the past. And after all, I'm here to share ideas with you to help you achieve financial free. I say it all the time, my friends. If it worked for us, it's going to work for you. So moving on.

The next place where you may find money for your next advancement is probably sitting in your driveway or in your garage, maybe even under a tarp. Yes, it may be your car, but really what I'm referring to are motorized toys. sorry men this is probably directed towards you and ladies you're welcome you can thank me later but maybe this will help them get their wheels turning so to speak okay so here's the thing i love motorized toys i mean especially toys that you can play in the water toys with wheels matt particularly loves toys with extreme motors so to speak but let me give you a different of thinking about how obtaining these toys.

So let's say you have an RV or a boat or a Harley. Okay. And you love knowing that you can use these toys any time you wish because after all, they're parked in your driveway or they're in the garage under a tarp. But let's be honest, how often do you really use these toys? So let's say your toy represents $50,000 or even more, just sitting out there most of the time. Let me ask you, what is happening to the value of that toy that sits there most of the time? Most likely, this toy is depreciating, isn't it?

On top of that, you may be making payments on this toy, the thought of that. just makes me sick, but you may be making payments, which includes interest, and then there's insurance and likely there will be repairs. It's all compounding losses and depreciation, or it's all compounding your losses from depreciation. Okay. Now, hold on, hold on, hold on. I know some of you are getting ruffled. I may not be going where you think I'm going. So don't get defensive just yet, okay? I still want you to have your toys, I promise. I love toys. And if that's what makes you happy, this is all about financial freedom and making you happy. But think about this. Let's say you sold that toy, that Harley or that jet ski or that boat for $50,000.

And you took that $50,000 in cash and purchased a rental property that produces $500 a month in passive income, in positive cash flow. That's $6,000 a year. And if you only use that boat or jet ski for one big blowout holiday trip to the lake each summer, for example, couldn't you rent a pretty awesome, badass boat for the weekend for $1,500? If you really only use this RV for that one week,

road trip that you take every summer with the family, $3,000 will rent you a pretty pimping one. I mean, a 100 grand class ARV for the rest of the week, even in peak season. One that you wouldn't even have to clean. How about that? Now, I'm going to share a story, and you're probably going to laugh. But I remember going to the river several years ago with some friends. and it was over like a Labor Day weekend. And they had a brand new jet ski.

Now, Matt and I had the time of our lives, and our son loved it. We loved it so much to the point where Matt actually considered buying one because we went up to the little boathouse at the top of the river, and they were renting jet skis for $350. for six hours, of which seemed like an extraordinary amount. I mean, I'm only here for three days, and I rent a jet ski, and let's just say for a total 24 hours, that would be $1,400. And of course, our gut instinct was, let's just go buy one.

Now, naturally, that's what Matt thought. And of course, I'm being the supportive wife. And I'm like, yeah, that's a great idea. Let's go buy one. After all, who doesn't want a brand new jet ski? and then I stopped to actually do the math. If I only went once a year, it would take me almost seven years to break even. And by the way, we've only been back one time since that last trip.

But let's just say that we went twice a year. It would take me three years before even breaking even. And knowing myself, actually knowing that, if we were to actually, actually go twice or three times a year, I know me. He'd want the newest, greatest, baddest, newest thing because that's Matt and he would probably get it. So there you go. You would start the break-even clock all over again. So we didn't buy it. We rented it instead. I'm definitely getting more pragmatic in my older age. But let's look at another possible scenario that very well may be yours. Okay, so let's say you really do like knowing your toy is under your tarp or in the garage,

or maybe you go fishing or cruising with it every week. I mean, couldn't you finance it or lease it or lease the latest, greatest toy for the $500 a month your rental property is producing? And years from now, when the toy is completely worth it, your cash flow will still continue. Heck, thinking about it this way, you could probably lease a new car every couple of years for the rest of your life with the cash flow just from one nicely performing property. I do it all the time, guys. In fact, I do it more times than not.

Matt and I automatically think about, okay, if we want a toy, how many rental properties do we need to pay for that new toy? And believe it or not, it starts to become a mindset. We do this all the time. And this is called making your assets pay for your liabilities. Now, this is a mental ship, but this mentality is applicable to cars and vacation time shares and other things that we enjoy doing that require chunks of money that we could use, that derive from our cash flowing properties. Now, this might be a strategy that you can think about.

that can create an emotional and financial roller coaster, but it can produce a win-win for you and your spouse. So this evening, ladies and gentlemen, break open a bottle of wine and a calculator and have a great discussion over dinner tonight about making those assets pay for your liabilities. And ladies, again, you're welcome. Guys, don't hate me too much.

I promise you. It's going to pay off later. Promise. Seriously, as much fun as riding your motorcycle or your jet ski can be, it doesn't feel as good as the peace of mind that you will feel from knowing that your family is taken care of and that passive income continues to come in while you're playing. And keep in mind, my friends, it isn't a trade-off. I mean, you seriously can have your cake and eat it too.

Okay, I could literally talk about this for days, but for now, I only have one more idea that I want to share with you. I mean, I think I have two more ideas that I want to share with you to help you find money for real estate. And really, it's by joining forces with a partner. You see, there is a great number of people out there interested in real estate investing who have not done the research that you've done. They likely don't listen to podcasts. They don't become educated on taking their first step. But you are. You're the one that's putting in the time learning about an alternative form of investing

just by listening to this podcast. You're doing research. And you've discovered likely other opportunities that are valuable in a partnership. Perhaps a friend or a family member would really be more comfortable taking that leap of faith into real estate if they realize that someone that they love or they trust can join forces with them. So perhaps you both put in a little bit of money on your next deal or perhaps one of you has more money, the other one has time, or vice versa. One of you does the administering of the deal while the other one manages the deal. However, however partnerships can work, at least if you

have a partner where both of you can share in that learning curve, that's a great way to get your first deal under your belt. Several weeks ago, you may have heard a podcast with my friend Nick Morton, who kind of took his brother-in-law under his wing, and now his brother-in-law is investing, and the brother-in-law jumped on board because Rick did all of the research, bought a couple of properties from us, and finally, his brother-in-law felt comfortable to jump in as well. You know, a mentor once told me, there's someone out there that loves to do what you hate, or there's someone out there that's good at doing what you're not good at doing. So, I'm a big fan and advocate of partners just has to be the right partner.

Now, when you realize this, that jumping into your first investment property with a partner versus not doing it at all, the partnership always, always wins. Consider this. You are more valuable to a partnership than you're likely thinking you are. If you don't like the way those sunglasses fit guys, remember what I shared at the top of this podcast. take them off, put them back on the shelf, and let's keep chatting. And before I let the topic go of partnering, I know many new beginning investors that have partnered with somebody for their first deal.

And maybe they didn't have as much money to put in the deal. And they only owned a small percentage. But they had a front row seat at the real dealings of a real estate investment property. and that, ladies and gentlemen, is priceless. I have seen how just having your first deal in the books, how that can skyrocket someone's confidence, and it ultimately leads to accelerating your own personal portfolio, even if it means to acquire just one property a year.

Believe it or not, one property a year is more attainable than you could ever imagine. So if partnering speaks with you, you know, maybe visit cashflow savvy.com or reach out to me, but download the frustrated investors' guide to passive income. That'll absolutely get you started into the right direction of taking that leap of faith to your first deal or even possibly and potentially partnering with someone. Now, if you don't have a partner and you think you'd be open to some handholding, feel free to go to cashflow savvy.com and see what the options are out there for you. Now, one last thing I'm going to share with you that I shared at the top of this podcast is something

that helps you find the money. It's the last resource that I'll share with you. And it's the last place to find money because it's a little bit more costly than a typical average convention. loan. I want to introduce you to epicfastfunding.com. Now, it has been introduced in the past to our other Epic Real Estate investing audience, but this is a business funding source. It's straight out FICO score driven. It's stated income. It's unsecured. And our typical clients qualify for 80 to $100,000 based off of their FICO score, and it takes about 60 seconds. It's super duper easy, and some of my clients have accessed funds within 14 to 21 days. Now, the process is pretty simple. It's self-explanatory, and it creates some pretty amazing possibilities. And yes,

there is a fee, and yes, there is an interest rate, but before you get all cynical on me, it's actually very fair. And in most cases, the interest rates on these lines of credit is 0% for the first year or even longer. They actually have a strategy that helps you keep your interest rate at a 0% spinning indefinitely, but they can go into it a little bit more than I can. Now, does the interest rate matter? Does the fee matter at the end of the days, guys, as I said in the previous episode, it's about getting you moving into the right direction of creating passive income in your life that ultimately leads to financial freedom.

Again, it's the pluses and the minuses. Consider that pluses and minuses are going to take you to financial freedom or not. Now, maybe none of these options are going to apply to you or none of them will work for you. But again, if you consider them and you think outside the box, imagine the possibilities you can create. And if you're given a little bit of cash to start off with, so to speak, or if you have the opportunity to partner with someone, you can take a giant leap towards your financial freedom journey by the end of the week. Now, I'll continue to do my part, but you've got to do yours too. I'll continue to lead you to water, so to speak, but you have to drink. So if you've got a decent FICO score,

I'd say around 600, mixed 600s or better, give it one last shot. I mean, go to epicfastfunding.com, complete their 60-second application, and they'll do the rest for you. promise you if you qualify within 14 to 21 days you can get anywhere from 80 to about a hundred thousand dollars if you qualify here's an idea let's do something bold because bold actions create big results go to epic fastfunding dot com complete the process and then go to cashflow savvy dot com, reach out to me, and together we can figure out a path to your financial freedom. If you don't see anything you like, not a problem. You can again, back to the sunglass analogy, take your sunglasses off, put them back on the

shelf, and we can continue shopping. Now, having said that, I help a lot of clients build their personal portfolio. I will be happy to share that with you. Now that's just a thought. Now that's just a thought. It's totally self-serving, I admit, but still a really good thought at that. Again, take a step in a direction that you're not normally taking and you will help yourself towards financial freedom. So there you have it. Several ideas where you can find even more money to put your real estate goals into action. Now, you can look at your own life, and be creative.

Don't be afraid to mix and match strategies. Maybe your old 401K. Maybe it's partnering with your dad's old life insurance or a father and son idea working on something different. Maybe that boat in your garage or, I don't know, that home that you have several thousand dollars in equity or even trying Epicfastfunding.com to bridge the gap. and perhaps use the money for your first investment property.

You know, you are only really limited to your own creativity. So don't limit yourself. And don't worry if none of these ideas don't actually resonate with you. There's tremendous power in just focus itself. If your goal is just to save, save, save to purchase the property with your own, then that's great. Just stay focused on that. Keep your eye on the prize and be focused. I speak from personal experience that once that first property is working for you, your efforts will start to compound. With a little bit of guidance and a little bit of knowledge, so to speak,

your second and your third property will come easier and easier. Trust me, it is a way. It is a lot of work, but it's absolutely worth it. Keep plugging into us and other like-minded people. Keep your mind focused. Keep your eyes on the prize. Stay in it. Now, if these ideas actually did speak with you and you'd like to discuss a best process for you, as a turnkey partner and other resources, I will be happy to see how I can help you. You may just be closer to your goals than you think. I'm Mercedes Torres. I'm looking forward to seeing you at our next episode of Turnkey Saturday. Does your money work for you as hard as you do for it? If not, no worries. You do not have a money problem. You merely have an idea problem. We're cashflow savvy.com

and we'd like to share a new idea with you around income real estate that can transform your financial future and accelerate its arrival. Go to cashflow savvy.com and download.com and download a free investors package. Cashflowsavvy.com. You do not have a money problem. Merely an idea problem. Cashflow savvy.com. More ideas, less worries.

Cashflow savvy.com. This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.