Epic Real Estate Investing - Getting Started | Episode 127

Episode Date: November 3, 2014

Welcome to The Epic Real Estate Investing podcast!  This week, Matt will be releasing a new episode every single day to help listeners get back to the basics.  So whether you are looking to simplify your existing business, or you’ve yet to do your first deal, be sure to check out each episode this week!   The first thing you should understand is that, contrary to popular belief, it is absolutely possible to achieve financial freedom within the next 5-10 years using traditional and creative real estate investing. And perhaps even more exciting: you can get your first paycheck by the end of the year!  So grab your pen and paper and get ready to change your life! ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most?   E ducation P roperties I ncome C oaching 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. Yeah. Hello. Hello, and welcome. Welcome to the Epic Real Estate Investing podcast, the show where I show people how to escape the rat race using real estate. You know, I did it myself by changing one thing and changing that one thing, just one time. and that one thing I changed, that was my focus. I shifted my focus from making piles of cash to making streams of cash.

And with that one shift in my focus and following it up with daily correlate action, you know, I accomplished in just under four years what 95% of our population is unable to do in 40 years. And what that is, what I achieved is essentially financial freedom. And, you know, the 95% that are failing, It's not their fault. There's nothing wrong with them. They aren't bad people. They aren't unintelligent.

They don't lack any talent or natural gifts. Nothing like that. None of those reasons are the cause for their failure. They are failing merely because they are doing what they've been told to do their entire lives, what they've been told to do. They are following the antiquated advice of, you know, you've heard it before. You go to school, you get good grades. You get a secure job. Then you go and buy a house.

and you want to pay it off as soon as possible because, you know, debt is bad. And then you want to eliminate all your other debt and you want to live below your means. You want to max out your 401K. You want to clip your coupons. You got to work, work, work, save, save, save, sacrifice, sacrifice, all in the interest that someday you'll achieve financial freedom after the most active years of your life are past you. That's insane advice. I mean, am I the only one here that sees that? That's absolutely insane.

I mean, if financial freedom is what you're after, that's absolutely insane. It's insane advice for a few reasons. First, it's insane because even if you execute this plan perfectly, it'll still take you 40 years to achieve it. I mean, you've got to put off living today so you can live tomorrow. Well, tomorrow ain't promised, okay? I mean, it's absolutely insane to prepare for your future in a manner that costs you your present. I mean, by all means, you know, prepare for the future, but not in a way that, you know, you, you don't, you can't live life now.

Second reason it's insane. The government actually puts limits on how much you can actually save in retirement vehicles, you know, such as 401Ks and IRAs. So, you know, even if you wanted to speed up the process by, you know, working harder and saving more aggressively, the government won't let you. that the government puts a limit on that causing you to wait 40 years anyway. Now, I'm not a big political guy. I don't really sway one way or the other.

I'm not a conspiracy theorist. I mean, I'm sure there's plenty of things that, you know, would just make us fricking vomit if we knew exactly what was going on behind the closed curtains and stuff. But, you know, I try to stay away from that type of thought, those types of thoughts. Because, you know, most of the time, whether they're true or not, you know, there's very little that we can actually do about it. But, you know, sometimes it just seems so blatant that you can't help but think that the powers that be

want to keep you in check. I mean, why do we all have to cross the finish line at the same time at the age of 65? Who established that? Who established that as a number? I mean, if you think about it, it's completely, you know, arbitrary. It's actually not arbitrary

because that used to be the life expectancy. And so they actually want to be. to keep you in check for your entire life. But that's scary and it's silly that we all live by that. You know, America is supposed to be the land of opportunity of where if you work hard, you get rewarded for it. And if you work really hard and you do it faster than anyone else or faster than others, you should get to reap the rewards of your efforts faster.

I realize there's some room for debate here and not everybody feels that way. And that's okay. But, I mean, this is America and we're all entitled to our own opinion. that's the good thing about it. And that one, that opinion there, that's mine. Now, the third reason following that old advice is insane, and this is the primary reason. You see, that advice is built on a philosophy of accumulating money,

saving money, creating a giant pile of money, and creating that pile of money so high that it will eventually create a stream of money for you. you know and on paper that philosophy works works perfectly but you know what it takes a long time and it's accompanied by great sacrifice as i've kind of covered a bit already so if you'd like to experience financial freedom before the age of 65 or let's say you are 65 right now and you're not even close or you're 55 or you're 55 and you know we just don't have the the time left in our lives to allow that old traditional vice to work its quote unquote magic.

So couldn't you maybe, this is what I'm asking you to consider, couldn't you focus on creating the stream of income first? I mean, ultimately that's the prize. That's the goal, but they only show you one way to go about it. But couldn't you focus on that stream of income first and then kind of work your way backwards? And then once you've created that stream, you allow the stream of income to create your pile of money.

Wouldn't that make sense? I mean, couldn't you do that? I'm not even going to give you the time to answer. The answer is yes. Yes, you could. And that's what I did. And I'll let you in on something. It didn't take nearly 40 years.

You know, even if I messed it up, I had time in my life to start all over again. With that old traditional advice, what if you mess that up? And you hit the age 65 and you realize you missed your calculation by a couple or you didn't even come close. Now what do you do? Well, now you've got to go focus on the stream of income approach. anyway, because you don't have enough time to have, you don't have another 40 years to put the old advice back to work. You know, we may have been taught the right stuff or told, you know, the right thing to do, meaning that traditional advice that I mentioned earlier, you know, some of it is good,

some of it is very good, but it's the sequence of which you implement that advice that I question. Now, it's the sequence that we're taught to implement that advice. That's absolutely insane. I, you know, I didn't do anything differently than really what we were taught. I just chose to flip the equation over and focus on the streams of money before the piles of money. And so once I got the stream of money created, then I let the stream create the piles, rather than try to create the pile first that would create the stream. Makes sense? And I did it.

I actually got started with no money. And I have yet to tap into using my credit, not that I could if I wanted to. You know that story. And I did it all with 12 different strategies of investing in real estate, of which none of them require you to have a big pile of money. money to get started. So as a free gift to you, my free gift to you, I put the first two strategies, the easiest and fastest ones of the 12 strategies, I put those two strategies into a simple and easy to follow course to help you get started fast. And you can access that free

course at free real estate investing course.com. And I alluded to this last episode, maybe it was two episodes ago, that come the new year, this course will no longer be free. I'll be absorbing it into the Epic Pro Academy. That's where it'll be available as inside. So you've got until the end of the year, and I wouldn't wait because, you know, around here, we move at the speed of instruction. We know what that gets us. So go to free real estate investing course.com and get the two easiest and fastest

strategies to a paycheck in real estate while it's still free. All right. So today is the big day. And this is a big week, actually. And we're going to start from scratch. We're going to be releasing a new episode every single day. day this week. We're going to start your business right from the beginning. And so if you've never done a deal before, hey, you're in the right place. If you have done a deal before or many

deals before, you're in the right place as well. You know, annually, I get back to the basics and just kind of to confirm that I'm not overcomplicating my business or complicating it at all. And all in the interest of efficiency and profitability. You know, it's all about making more by doing less. That's what I'm always focused on. How can I make more by doing less? And getting back to the basics every year, you can kind of, you know, check in on your business to see if you actually are, just to make sure that you're not doing too much to make the same amount. Basically is what it comes down to. And that's what I do every year. Yet I didn't do it this past year, as I shared with you last episode. I paid the price. I paid the price

because I didn't do it this last year. So I won't be doing that again. And I recommend you follow my lead on this. As, you know, Mark Twain once said, lead from other people's mistakes, excuse me, learn from other people's mistakes because you won't be here long enough to make them all on your own. Very wise words. Okay. So whether you've never done a deal or have you done a ton of deals, let's get started. Okay. So contrary to the popular cynical belief, it is well within the realm of possibility to experience financial freedom within the next five to ten years through conventional and creative real estate investing.

Okay. Meaning you really can enjoy the good life. Absolutely. It's all yours for the taking while you're still young enough to do so. Nobody ever tells you that, but you can. Further, you can create a legacy to pass on for generations to come. You can become the revered and the respected and the long remembered branch of your family tree that holds the tire swing. You know the fun guy in the family.

Financial freedom is alive and well and it's waiting for you. You merely have to meet it halfway. Consider the next five days that, just the next five days that we're going to spend together here, consider those days the bridge between you, where you are right now, and your freedom. Where do you want to be? You know, it's my pleasure with this show to demystify the real estate investing process for people. Because there is plenty to go around. I mean, there are more than enough opportunities.

for everyone and I want to help you the way that others helped me. Now, my only request is that you follow the instructions herein as they are designed. That's the fastest path to helping yourself. If you, you know, if you have a tendency to rip open boxes and start putting things together and ignoring the instructions, this would be a good time to break that habit, okay? You know, unless you change your thinking and your actions, you simply, you just don't have a chance at freedom. and everyone deserves a chance or two or three.

God knows it took me four or five and thank God for that. And what do I mean when I say that you don't have a chance? I mean that you don't have a chance at a comfortable retirement, let alone any sort of financial freedom unless you do get involved in real estate. Specifically, and you've heard me say this before, and these statistics are actually getting worse. 95% of Americans, 65 and older, are either dead or they're dead broke. Okay, they're no longer with us or they don't have a pot to piss in, 95%.

And it makes you wonder from where? 95% of the population is taking their financial advice. Where are they getting it from? They're likely getting it from other members of this 95% club. I mean, it's a case of the financially blind leading the financially blind. So let me ask you, who is leading you right now? Who's leading you? Where are you getting your advice from?

A neighbor? The person in the cubicle next to you? Your broke brother-in-law? I know I have had a couple of those in my past. Or are you taking your financial advice from someone who has what you want? Are you at least looking there? Are you taking your financial advice from someone that has more than you? That would probably be a best place to do.

to get it from. Let me ask you this. You know, if you wanted me, or excuse me, if you wanted to, if you wanted to be a medical doctor, wouldn't it make sense to get advice and learn from a practicing physician? I mean, that would make sense, right?

I mean, if you wanted to learn to fly a plane, wouldn't it make sense to learn from a pilot? And if you wanted to make it say to the major leagues, from where would your best advice come? Would it come from a little? little league coach or a major league manager. I mean, these are all relatively logical questions with obvious logical answers, right? So what if you wanted to become financially free?

Where should you then seek advice? Well, following the same formula, doesn't it make sense to get it from someone who is financially free? Of course it does. So if it makes sense, is this the approach that you have been taking? If not, why? Why not? There's plenty of stuff right there to think about.

Here's the fundamental breakdown in the world. The first and primary place we get our financial advice from is our home, our parents, how we were raised, right? I mean, if you weren't blessed with financially free parents, there's a really strong chance that you won't learn financial freedom from your primary source of financial education. Your parents. You know, rich parents teach their kids to be rich, and poor parents teach their kids their kids. kids to be poor. Not on purpose, of course. I mean, all parents want the best for their kids.

But we can only teach what we know. The tragedy is that when it comes to money, most people think they know. They think they know. But how could most people possibly know when 95% of them, who live to see the age of 65, are in financial distress? 95%. That's almost everybody. You know, there's an ancient Chinese proverb that says, and I've said this before on the show,

to know and not do is to not know. To know and not do is to not know. And that's what I mean when I say that if you weren't blessed with rich parents, you're not going to be rich by way of the status quo. There's a really good chance that you're not going to be rich. You're going to have to find another source of financial education. You're going to have to learn from somewhere else. So what's the alternative? The second source of our financial education primarily for us is our school system, right?

And their idea of financial education, as I mentioned in opening up today's episode, is, you know, go to school, get good grades, get a good job, blah, blah, blah, blah. I've already said it. I mean, even I can't stand to hear it again. And after following that advice and making all the sacrifices that a company following it, you know, barring any catastrophes along the way, you finally get to enjoy life when you you're 65 years old. That's what our teachers were taught and it's what they were taught to teach us. You know, it's what we've all been taught for decades. And it actually worked for a while,

but not anymore. 95% of us today aren't making it and aren't going to make it under that plan. And I believe that that number of people that aren't going to make it, it's only going to increase. I think it's increasing by the day. You know, it doesn't take, you don't have to look too far to see evidence of that. You know, the rules are changing. The rules have changed. That's the bad news if you didn't know. But you can change.

You can change, however, and that's the good news. So don't hold it against your parents or the school system with regard to, you know, where you are financially in life at the moment. It's not their fault. They merely taught you 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. In fact, what they were taught may have even worked for them. But that's all behind is none of that matters.

There's nothing we can do about the past. All we can control is the present. And by controlling your present, your future is created. So, ask yourself this. Where will this outdated advice stop in my family tree? That's where you want to place your focus. And the question you'll want to routinely ask yourself is, where will this outdated advice stop in my family tree?

I know in my family, the buck stops right here. It stops with me. You know, as I've shared a little bit on the show, I'm a relatively new father. My son's three and a half now. And I'm so envious of my son because he's going to be raised to know only one way, the way to financial freedom.

You see, whether it comes from our parents, our school system, or some combination of the two, traditional financial advice would have us, you know, send our money to the government, retail banks, investment banks, financial planners, et cetera, blah, blah, blah. And speaking of financial planners, by the way, the vast majority of financial planners are not financially educated. They are merely sales trained. You know, in most cases, their financial incentives are not in alignment with you. your best interest, meaning the stuff that pays them the best, the stuff that they recommend that pays them the most money, is not an alignment with your best interest.

Did you know that? I mean, if they were leading their clients down the right path, would the 95% club even exist? Likely not. But that's a question to be answered on another show. The point I'm making is that our school system has taught us from the beginning to send our money to other people, to other organizations, to other. institutions. True financial education consists of teaching you how to have money sent to you.

And that is what I am going to teach my son. That is what he is going to learn. And that's a really big why for this podcast, for the Epic Pro Academy, for cash flow savvy, and now for my real estate hedge fund. It's all for that. You know, if I'm going to teach, though, I understand that I've got to first do because unless you're doing you really don't know so if i'm going to teach i've got a first do and and so i am because i'm real clear on as to what i'm going to teach my kids the big question here is what are you going to teach yours what are you teaching them right now you know i don't know what you're teaching them and i'm certainly not assuming that you are teaching your kids wrong but but it is a question to ponder. I mean, if you have kids, are you raising them in a family tradition of poverty

or a family tradition of wealth? Just a question. There's no right here. There's no wrong here. There's no condemnation going on here. There's no good, no bad. It's just an idea to think about. And if you determine there's something that then needs to be done after you thought about it, then do it. Okay? Do it. It's not too late. It's never too late. Never too late to be who you could have been. Now, let's get back to our previous discussion. 95% of the population continues to miss the boat. 4% just barely make it, and only 1% reaches the age of 65 in the wealthy status. In that Department of Health and Human Services study, it defines this wealthy status

as having a net worth of $5 million or more. Now, that's not my favorite definition of wealth, but it's their version. Okay? But only 1% of today's 65-year-olds reach the age of 65 of having a net worth of $5 million. or more. And then it's a big, steep drop there after that 99%. So we established earlier that if you want to be rich, you should learn from rich people, right? If you want to learn to fly, you learn from a pilot. If you want to learn to be rich, you learn from rich people. So if we look at what the wealthy 1% is doing and how they got to their wealthy status, we might find some clues

for the 95% club to learn from, right? That's logical. If that 95% looked at more what the 1% was doing, and did it, then that 95% might be a lot smaller, right? That's the logic. But even before we attempt to learn from the wealthy 1%, this is my request, please, please, please stop learning from the poor 95%. I mean, before you even start to look at what the 1% is doing, stop learning from the 95% poor. Stop taking your advice from that group because if you continue to do what they do, you

will continue to get what they got. Diddley squat. If you want to be rich, first stop doing what poor people do and then start doing what rich people do. All right? So what do are rich people do? Well, of this 1% of our wealthy population, okay, so now we're just focused on this little small sliver of the pie, this 1% sliver. Of that 1%, let's look what that's made of. 10% are physicians and attorneys. Okay, 10%. But before you start applying for med school, I want you to ask yourself this question. Do all doctors and lawyers make it to wealthy status? No, they don't, do they?

Just the most educated ones who consistently act on what they've learned. Many of them struggle to get by. Another 10% of this wealthy 1% consists of your company CEOs and your company presidents. But just because you're a CEO or a company president, does that make you wealthy? Do all CEOs and company presidents make it to the wealthy? status? No, they don't, do they? Just the most educated ones who consistently acted on what they've learned.

Now, in this, we'll continue to break this 1% down. Another 5% of this 1% of this wealthy population is made up of your sales professionals, your super salespeople. Again, do all salespeople make it to wealthy status? Certainly not. Just the most educated ones who consistently act on what they've learned. Are you noticing a trend here? I've made several examples to kind of point out a trend, to illustrate a trend.

So a whopping 1% of this wealthy 1%, 1% of the 1% are lottery winners and heirs to wealth. That's it. So winning the lottery and being an heir to wealth, that's 1% of the wealthy 1%. But I'll also ask the same question here. Do all lottery winners maintain wealthy status? I mean, it may surprise you, but no, they don't. Two out of three lottery winners not only find themselves broke within five years of their winning, but they find themselves in a worse position than before they won.

So you know what that means is, if I just granted everyone in the country a $5 million prize, poof, boom, you're all millionaires, you all have $5 million. Everyone is now considered wealthy. But within five years, two-thirds of money, the population would have lost it. Even if your wealth is given to you, you had better be educated and know what to do with it. Oh, and by the way, athletes and celebrities,

you're like, what about Kobe Bryant? What about Kim Kardashian, right? They're hardly a measurable sector of the population. But it is worth noting that four out of five professional athletes are broke within five years of their retirement, regardless of how much they might have earned during their lorrie days. financial literacy and education, it's a serious issue affecting every member of society.

That traditional financial advice and all those financial experts and the financial planners and everything, it's like, it ain't working. It's not working. I mean, it's the reason that you continue to hear that the gap between the rich and the poor is getting bigger and bigger and bigger, the middle class is all but disappearing. It's because most of the population is financially,

illiterate and they don't even know it. They think they're smart. They think they're doing the right thing. They're following the advice that they've been given. They are operating with an outdated education and implementing outdated financial strategies. Now, if you've been keeping track of the numbers, there is still 74% of this wealthiest 1% of our country unaccounted for. We only talked about 26% of that 1%.

But there's 74% left. So what do you think the 74%? It's one giant chunk. What do they have in common? This is the majority of them. It's almost three-fourths of this whole 1%. And I asked this question specifically because if 74% of the wealthiest 1% created their wealth in a certain way,

this method must be the way to where the greatest possibility of wealth exists, right? I mean, if 3-fourths of that 1% achieved their wealth using a certain method, then this must be the way to where the greatest possibility of wealth exists. That's simple logic. We are talking about a method that presents a seven times greater possibility of creating wealth than a physician, seven times greater possibility than a lawyer or a CEO or a company president, and almost 15 times greater possibility than a super salesperson, a 70 times greater possibility, 7.0 greater times possibility than our lottery winners and our heirs of wealth,

and practically an infinitely greater possibility than our entertainers and athletes. So how did this 74% of the wealthiest 1% of our population create their wealth? They created their wealth through business ownership and real estate investing. That's how they did it. You see, this is not really a real estate-specific podcast. You know, today you might be wondering, okay, Matt, when are we going to get to the real estate? When are we going to get to the real estate? This is not really a real estate podcast.

It's a money podcast. This is a show that revolves around your best shot at, making a lot of money at creating financial freedom for yourself. And that's by creating a business out of real estate investing. We're doubling down here. Okay? We're doing the business and we're doing the real estate. We're doubling down.

We're putting them together. It's how 74% of the wealthy did it. They did it through business ownership and real estate. So if that's how three-fourths of them did it, it must be the most viable way, right? Do you see the logic there? I mean, I don't know a whole lot. but I know human beings.

I've been around a lot of human beings. I've interacted with a lot of human beings. I've served under human beings. I have led human beings. A lot of interactions with human beings. And probably you have as well. And, you know, I probably won't find much argument here. If you got an argument with me, go ahead.

Send me any email. But human beings, they tend to favor the path of least resistance, right? And of all the ways to create wealth, the wealthy people found that path of least resistance, even the wealthy people found the path of least resistance. Business ownership and real estate. Do you see that? It's not my opinion. It's right there in the numbers.

Now, it's not that, you know, business ownership and real estate is easy. It's not that business ownership and real estate is without resistance. Because this business of investing in real estate can be tough. It can be really tough sometimes. It's not without resistance. It just presents the least. resistance of what's available to the average person. Got it?

Good. Now, why am I going over this so much? Why am I saying the same thing essentially over and over? Because I'm trying to save your future. I'm trying to save your life. Your life is worth fighting for and I'm fighting for it. And here's what I mean specifically. Of this way of creating wealth, this way that presents the least resistance,

of all other ways there is to create it, there are only two reasons that you will fail. There are only two reasons that you're not going to make it. If you fail, if you fail, it will be because at some point you will either lose faith in real estate or you will lose faith in yourself. So I'm taking a little extra time here

to bolster your faith in real estate. We'll get to you later, but we're here to work on your faith in real estate. I want to eliminate lack of faith in real estate as a possibility for your failure. I want to eliminate it. Okay. That's why we're talking about this. So let's get back to it. If you want to be rich, first thing, right? What is it? Stop doing what poor people do. That's your starting point. Abandon following the traditional advice in the sequence of which you were taught to follow it. I could also throw in, stop blaming others for your situation.

Stop making excuses. Stop whining. Take responsibility for your situation. Okay? Do that. That's what rich people do. Stop blaming others for your situation. That's what poor people do.

Stop doing what poor people do. That's first. The next step then is to start doing what rich people do. Once you've stopped doing what poor people do, now start doing what rich people do. You know, as I've stated, there are several paths. you can take to financial freedom. We went over a bunch of them. I think, well, all of them, it comprised the whole pie chart.

And when faced with the decision of which path to take, doesn't it make sense to take one of the two where your possibility of success is the greatest? Or even more, like I said, does it make even more sense to double down and own a business that invests in real estate? That's why I'm here. That's the conclusion that I came to.

It's through business ownership and real estate investing, how 74% of the wealthy 1% got there. So take a look, another look, actually, at the government statistics that I've shared with you this far. All right? Unless you own a business that invests in real estate, the odds are heavily stacked against you at ever achieving any sort of financial freedom.

I mean, you might as well just surrender to a life of worker bee or dependent. Or if you do happen to succeed, if you happen to be in that 1% club, that follows that, that traditional advice and you made it all the way there, you're going to be too old to enjoy it by the time you get there anyway. You might as well just surrender.

Don't try because it's not going to work. He's just going to beat your head up and you can be thoroughly frustrated. That's why I created this podcast because I want more out of life for me. I want more out of life for my son and I want more out of life for you. You know, even if we have never met, and I've been fortunate enough to meet a lot of you this past year, even though that if we've never met, the fact that you have listened this far has me liking you a lot already.

I consider you a friend at this point. And I feel an obligation to share with my friends what has created financial freedom for my family and me so that they can do for theirs so that you can do for yours. You know, when I learned of the aforementioned statistics, you know, years ago, I started to ponder questions like, okay, I get it. But why real estate? What makes real estate such a powerful vehicle for creating wealth? Why do more people succeed with real estate than anything else?

Why, why, why? Well, I started to explore. I started to dig. And after extensive research and pondering, I've come to call real estate an ideal investment. Ideal. An ideal is an acronym. Now, the I stands for income.

You know, in real estate, with a solitary, focus you can generate both active and passive income. With one focus, you can generate two types of income. 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. Like it feeds each other. It's like energy that keeps renewing itself. And it's an income that will last essentially forever. As long as it's properly managed and maintained, it'll essentially last forever. and if it's created right now, you can enjoy it right now. And when you turn 65.

So the I stands for income. The D in our ideal acronym stands for deductions and depreciation. You know, something that 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 income. lifetime's income. You know, here's an amazing fact about real estate. And you want to confirm this with your own CPA because everybody's situation is different,

but I'm very comfortable stating that the average American with the purchase of just a couple of investment properties, just a couple, maybe three, can virtually eliminate their tax liability by claiming deductions from property depreciation and other real estate-related factors. That essentially translates to doubling your take-home income. almost instantly. Even if you never make a dime off the real estate itself. Amazing, right?

That's virtually eliminating your tax burden honestly, ethically, morally, legally. And get this, even with the government's blessing. I mean, this fact right here alone makes real estate investing well worth the time and effort for everybody. I mean, consider the amount of complaining from society that the rich unfairly get all of the tax breaks. How could it be unfair when 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 then you've got to play by them. But rather than a real shortcut to that, you know, to put all this in a nutshell is just buy some real estate. Keep it real simple. Buy some real estate. That's a rule to follow right there that would take care of a bunch. of what ails most Americans. All right.

So back to our acronym, the E in our ideal acronym, stands for equity. Now, the difference or the equity is the difference between what you owe on a property and what it's worth. And over time for the educated real estate investor, equity tends to grow. In fact, it grows in two ways. First, by debt pay down. And second, which brings us to the A in our ideal acronym, appreciation. You know, over time, real estate has always proven to appreciate.

Now, none of us know for sure what's going to happen in the future. I mean, even your experts on TV or your favorite gurus, they don't know either. However, this is what we do all know. We know this. When supply is fixed and demand goes up, so does value. Stuff appreciates. When supply is fixed and demand goes up, so does value. In real estate, your support.

is land. It's fixed. And your demand is people. They're going up. We're not making any more land. Unless you count the lava flow that increases the big island of Hawaii every year. Or actually, this year, I guess it's been erupting lately. Or the man-made islands they are making in Dubai.

They're going to run out of desert sand sooner or later. They won't be able to fill all the oceans up with new islands. But other than that, thus the supply is it's pretty much fixed. Okay? we're not making any more land. It's here. We've got what we've got. Now, people, however, we continue to make people, don't we? Yes, we continue to make people. And so the demand continues to grow. You know, each generation is bigger than the previous. I mean, there are an estimated 79 million baby boomers. And you get somewhere around 90 million millennials, depending on

when year you start counting. Economists have come, they haven't quite come to a consensus on that. But know this. Look at the baby boomers. Then you got the millennials behind them. And then in 2007, there were more babies born than any other year in history. So the demand for real estate isn't going anywhere. It's already walking the earth. I mean, there are enough people walking the earth to eventually demand more housing.

Thus, when they start demanding that more housing, we're going to experience appreciation. Now, certainly, there will be ups and downs along the way, right? But long-term appreciation, that's a pretty safe bet. Do you see that? Isn't this exciting? I mean, this gets me pumped. No? Not you?

Still too risky, you say? You can't count on appreciation like that, you're thinking? Well, couldn't you conservatively hedge that appreciation by investing in income-producing real estate? Maybe your real estate appreciates in your first year. maybe your fifth year or maybe not until 20 years from your purchase till the baby's born in 2007 are ready to start buying property. Maybe it takes 20 years for your property to appreciate. But does it really matter all that much how long you had to wait for your real estate to appreciate

if it was producing a residual income for you while you waited? The point here is that people will always need places to live. And the need for those places is only growing. that's exciting to me. Finally, the L in our ideal acronym stands for leverage. You know, in my opinion, this is probably the most powerful aspect of real estate. You know, responsible and well-managed leverage in real estate is essentially its wealth creation on steroids.

It really speeds things up. I mean, it can do amazing things. Leverage means that, you know, you set up ways to have other people's time, other people's money, other people's expertise, other people's energy work for you. I mean, this is a real force multiplier. It leads to bigger and faster results than you could ever get on your own without leverage. There simply aren't enough hours in the day or years in your life to achieve the results that leverage affords you. Proper leverage is key to the achievement of your financial goals, of doing it fast. Now, our ideal acronym is complete, but I'd like to

mention an additional aspect of real estate investing that doesn't get as much attention as it should. And it should get a lot more attention. And that is the fact that real estate, it's tangible. You can touch it. It's physical. You can see it. You can smell it. You can, you know, you can touch it.

It's something real. It's not just a piece of paper or an imaginary number out there in cyberspace that can rise or fall overnight just because, you know, someone sneezed or the wind changed direction or someone just woke up on the wrong side of the bed in a bad mood. You can reach out and touch your investment. It's the very reason that a bank will loan you money to buy real estate, but they won't loan you money to buy stocks, bonds, mutual funds, or loan you money to deposit into your retirement account. Because none of that stuff is real.

Do you get that? I mean, that would be ridiculous for them to invest in something like that, to loan you money to put in something like that. Well, if they won't do it, why would you? Stuff isn't real. It's all just numbers in cyberspace. You've got no control there. Real estate is real.

Hence the name, real estate. This tangible nature of real estate is one of the factors that leads to control. You'll have much greater control of your real estate investments than the majority of your other investment options, which means you are less likely to be a victim of bad luck, a bad market, or, or, you know, find yourself in some powerless situation. There are no bad investments. No bad real estate investments. Just uneducated investors.

You know, an educated real estate investor has the knowledge and control to produce an income in any market because there will always be a demand for housing. It's one of the basic human needs. You've got air, you've got food, you've got water, and you've got shelter. Real estate. where there's demand, there's opportunity.

You've got demand for shelter. There's opportunity for shelter for real estate. That demand isn't going anywhere. Thus, neither is the opportunity. Okay, a little more excited. I got you going now? Still on the fence? Still on the fence whether to invest in real estate or not?

Well, based on the statistics, I'll just give it to you straight now. You really don't have a choice. You know, if financial freedom is a goal of yours, a significant portion of your financial portfolio should consist of real estate. It's that simple. It's that simple. However, investing in real estate properly, not necessarily easy. Simple, yes.

As I always say, easy, no. As I always say that, too. Simple, yes, easy, no. Well, not at first. It's not easy at first. But you get better at it and it becomes easier. You know, if investing in real estate were easy, everyone would be wealthy, wouldn't they? However, of all the ways to create wealth, it is the easiest one you are going to find.

You know, when done properly, it's much easier and faster than anything else. And more importantly, it's the surest investment you can make. Real estate is the final frontier where the average person has a genuine shot at achieving financial freedom. Real estate, it's the real deal. And that's the reason for this show. the reason for this podcast. The reason I show up every week. Real estate is the real deal.

There's no get rich quick schemes here. There's no parlor tricks and no false promises. Real estate is the real deal. And real estate investing, it's a skill. It's not a buy a course or attend a workshop and now I know how type thing. It's a real skill, which means it takes time to develop. And when it takes time, it takes a little bit of patience. It doesn't take a long time, but it does take time to develop that skill.

And that is the good news. can be learned, including this one. Real estate is not reserved for the privileged, the talented, or the highly intelligent. Anyone can learn the skill. Yes, yes, even you. Now, if you are privileged, talented, or highly intelligent, then it'll be a little bit easier.

But that's not necessary. It's not requirement, not by any means. You know, regardless of which path or vehicle you choose to achieve financial freedom, you're going to have to develop some kind of skill anyway. Possibly several. I mean, that's how we're compensated. in our world.

We're each paid off of, you know, 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 will have to hone a skill. You'll have to. And that being the case, doesn't it make sense to hone the one skill? You got to hone a skill anyway. So doesn't it make sense to pick the one that empowers you with seven times the possibility

of achieving financial freedom than any other skill? that makes sense to me but again well you know your situation better than I do right yeah but still the risk what about the risk

okay I get it chances are you likely know someone who has lost money right in real estate perhaps a ton of money in real estate perhaps that someone is even you and maybe the thought of losing or failing has you paralyzed

at least hesitant at getting started or at trying again. But you're still listening to this show right now, aren't you? You're still listening because you know what's possible with real estate investing, specifically that the rewards can be huge. Huge. You know, our guest, what is it, two weeks ago? They made more money this month than they make in four months. The rewards can be huge.

And we all know that with huge rewards come huge risks, right? No, not necessarily. You know, what the masses fail to realize is that you can virtually eliminate the risk from real estate investing. You can eliminate it. Now, that sounds crazy, right? Now, that's a red flag. This guy said there's no risk in real estate investing.

I know, it's a bold statement, isn't it? I know. One that might actually have thrown up a red flag for you, or two or three. Stay with me. Here's what I mean. Driving a car. Is that risky? It's very risky, right?

I mean, it's the number five killer in America. Yet each and every day we get into cars without giving it a second thought. We'll even strap our kids in the back seat for the ride. Why would you do that? Why would you put yourself at risk by engaging with the number five killer in America on a daily basis? And how dare you take your poor, helpless children along for the ride too? What kind of animal does that? Okay, I'll stop.

My point is that driving a car is a very dangerous activity with tons of risk. I mean, there's life-threatening risk at every single corner. But because over the years, we've learned to manage our risk while driving, we hardly give it a second thought. It has become second nature to stay on the right-hand side of the road, stop at the red lights, go on the greens, keep both hands on the steering wheel, right? 11 and 2 o'clock. You've got to obey the traffic signs and change the,

oil every four or five thousand miles. And because we do, our odds at arriving safely at our destination every day are pretty darn good, aren't they? Yes, real good. That's what I mean by virtually eliminating the risk. Now, imagine. Imagine investing in real estate with the same confidence and competence you have in driving a car.

What would your bank account balance look like? if you could? What would your life look like if you could? How would that make you feel if you could? Would finances even be a concern if investing in real estate were second nature for you in the way driving a car is? Here's another point.

Death by real estate investing, it's not in the top 100 causes of death in America. Well, at least not the last time I checked. As long as you commit to your education, consistently act on what you learn, and obey the rules, you'll realize, just like I have, that investing in real estate is the safest and most practical option available when it comes to putting your money to work

and ultimately creating your financial freedom. If people tell you real estate is risky or tell you that you're crazy for investing in real estate, just ignore them. Nod your head, smile. Humor them. Let them have their opinion. And you can have yours.

And by the way, this would probably be a good time to ask them, okay, so real estate is risky. What are you doing with your money? How did you achieve your financial freedom? Oh, you're not financially free. Got it. Choose your mentors wisely. Seek the advice and guides of people that have what you want.

And keep in mind that people who say it can't be done, are inevitably passed up by and should get out of the way for that matter of those that are doing it. What others think about you, what others think of you, and what they think about what you're up to, it's none of your business.

And speaking of your business, let's get started. What will this show do for you? What will this week of daily episodes do for you? Well, I realize that just about every person out there who's sharing with people how to invest in real estate claims to have the secret. You know, they've got the silver bullet or the easiest and fastest method to getting rich in real estate. You know, although I somewhat consider myself the anti-gour, I'm not a big fan, but I do, I guess I do make similar claims.

So I have to lend myself to that. But, you know, some of the stuff that I share, it may sound too good to be true sometimes. I get it. But here's where I differ from most real estate teachers. I promise to give you nothing less than fierce honesty and total transparency. I give you the good and I give you the bad. You know, the knowledge and processes I'm about to share with you over this coming week are not secrets.

There will be no silver bullets. And there certainly will be no magic formula. And the reason why is that there's no such thing. Stop looking for them. Stop wasting your time looking for the magic bullet. And start doing what needs to be done. The results you want will. require your time, your effort, maybe a little bit of sweat, as things worth having usually do.

Now, I'm aware I might lose you at this point. Well, shoot, no silver bullets here. I'm out. I get it. I mean, honestly, whoever got excited about a get rich, the slow and difficult way program. But I'm sharing the truth about this journey up front in order to make it perfectly clear that this is not another get rich quick show. It is, however, a legitimate.

educational program to get rich permanently in a fraction of the time of the traditional alternative. You know, while I mentioned that your results won't come easy or fast, I can promise you that they will come if you do the work. The epic approach works if you do. This approach, it's the easiest and fastest approach to a paycheck in real estate. The epic approach will give you access to true financial freedom and a shorter time frame with less effort and greater certainty. Got it. Meet me back here tomorrow and we'll get started. Oh, as you may have heard last week,

I'll be given away a $100 gift card to Amazon.com right here on the air all the way through November. You'll have like, I don't know, 13, 14 or 15 chances to win this month. And here's how you win. Each episode, I will head over to iTunes like I'm doing right now. Clickety, click, click, click, click. And I will search for Epic. real estate and then I will click on the podcast and then I will click on reviews like I'm doing

right now and the ratings and review section then I'll spin the mouse scroll the scroll bar I guess and stop it on a random review like this one right here headline says Epic show. Five stars by Wittamedge, W-I-T-I-M-D-G-E, back in May, May 2nd, 2014. Matt appropriately named this podcast as it is Epic. Awesome. Thank you, sir, or ma'am, Wittam. Send me an email to podcast at Epic Real Estate.com,

and I'll reply to you with a $100 Amazon.com. gift card that you can use for yourself or the holidays or whatever you want. All right. So that's how it works. Every episode in November, I'll give one of these away. If you've already left a review of this show in the past, then there's nothing for you to do. You're already entered.

If you haven't visited iTunes to give this show a review and you'd like to win one of these $100. Amazon.com gift cards, go to iTunes, find this podcast, the Epic Real Estate Investing podcast, and let me know what you think by leaving a review of the show. All righty. So that's it for today. see you tomorrow for another episode of Epic Real Estate Investing. 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 BS 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. For more top business podcasts, visit c-sweetradio.com.