Epic Real Estate Investing - Getting to Your Next Level | 1045

Episode Date: June 10, 2020

“If you are not receiving passive income, cash flow, nor residual income, you are essentially a slave to your bills and your job. That’s why you want to climb The 6 Levels of Real Estate Investing.” Matt Theriault In today’s episode, Matt reveals how to exit the rat race 10 times faster than through the traditional approach, that most people follow, using The 6 Levels of Real Estate Investing! Tune and learn how to determine what level you are on and how you can get to the next one! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is the Epic Field Report. So Mara, good to see you. Good to see you, too, Matt. So I was looking on Facebook in our private Facebook group, and I noticed something that brought huge delight to me. And that was, you've been in the RIAs program for, I don't know, what, six, seven months maybe? Yeah, that sounds about right. Okay, yeah.

And then you've got your first two deals done. I just wanted to talk to you about it really quickly. You got two of them done all in the same day. How did you find these? So I found them through my property finders on the ground in Alabama. So we have several property finders that we work with. And that's become the main way that I source deals. So out of several deals that people brought to me in the beginning,

We talked through some ones that weren't going to work in these two. They both came within a week of each other. Both of the numbers worked really well. So I just decided jump in and try to do both of them at once. Awesome. So is this the property finders portal that's inside of RIA Solutions? Is that how you got them? One of them, we got through the method that you taught us,

advertising on Craigslist and then connecting, and one was a prior relationship. Got it. Perfect. Okay. So obviously you've already sold them. So that was your exit strategy. I've got a picture here, but I'll just let you share that number. Can I ask how much you made on these? So after we paid everything off, one was a little over $24,000 and one was about $15,000. So that would be like $39,000. Yep. That's awesome. That's great.

So, Super. What's the biggest lesson learned in these two transactions? Oh, man. That is hard to answer because there were so... A lot of lessons. Every transaction is an education, that's for sure. If you had to point out to one, what would be the biggest one? So I think the biggest one was probably how to finance deals.

That was my biggest concern going into these. having the military background, I didn't have a ton of extra cash to bring to the deals myself. So finding the financing was a challenge at the beginning. And we went through. We initially had one lender that fell through kind of at the last minute, which forced us to find a private investor, which ultimately, honestly, turned out to be the best thing ever because this person wants to be involved in many more deals to come. So all worked out.

But I think the biggest lesson was I just had to be creative and really put myself out there to find the funding for the deals. Got it. So it wasn't a money problem. It was an idea problem. Yes. Very good. Super. So how are you going to celebrate?

I'm going to celebrate by buying our first hold property on Monday. Oh, it's fantastic. Congrats. Well, thank you so much. Keep doing what you're doing. stay in touch. Let us know when you need something. And then hopefully we'll be doing this again shortly.

Okay. Awesome. All right. Take care. Bye. Bye. 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 rei-aise.com. Here's Matt. Welcome to the epic real estate investing show where we meet here each and every week to help everyday people escape the rat race using real estate.

And just thank you. Thank you for listening to the show. Thank you for sharing this information and sharing the show with your friends and family. And if you haven't done so already, make your way over to Instagram and follow us there at Epic Real Estate, at Epic Real Estate. Now, the field report that you just heard, that's what was with Mara, Mara, Maura McGraw, and she's a new RIA ace client, a fellow Marine. Ura de Vidal. And total badass. And she just got two nice size flips completed just recently, as you heard.

And as of the recording of this portion of the podcast, she did take those profits and purchased her first rental property. close on her first rental. In fact, you know, I remember her right after the implementation summit here at the office that we do with our RIA's clients. And within a week, she requested us to turn her lead machine off because she had more leads than she was able to handle. And basically all she needed were those two. I think we got her one. And she had one from a previous relationship. And she had those two deals already under contract. And she just said, turn it off. I need a break. Because I got to take some time to go fix these up prior to me flipping them. I don't know. Anyway, what I'm going to do is I'm going to refer back to several episodes ago.

It was those episodes where I walked you through, I think it was six sequential episodes that walked you through the six levels of real estate investing. And we're all here to climb those levels. And here's why you want to climb these levels, these six levels of real estate investing, is if you're not receiving passive income, you're not receiving cash flow, you're not receiving residual income. What you are is you're essentially a slave to your bills. You're a slave to your job. And if you happen to be of the 4% of the population who were able to save enough over their lifetimes to eventually retire financially independent, if you're among those 4% of the lucky, the ones where everything kind of worked out in your favor, you made enough money, you're able to save enough money, and you got that pile of money high enough to where it created a stream of income for you, that residual income for you. You know, by the time you were able to make that happen, the most active years of your life are behind you. They're done, right?

Your health just isn't what used to be. Your activity isn't what it used to be. And, you know, this just, you missed out on a lot. You made a lot of sacrifice to get there. And now you're in the, you know, the third trimester of your life, so to speak. So climbing the six levels of real estate investing, this is going to enable you to overcome this. Because per that, those statistics by the Department of Health and Human Services, 95% don't make it at all.

Then 4% happen to squeak by and make it under that old antiquated strategy. And then 1% actually makes it to a status of being wealthy, having a net worth of $5 million or more. And of that 1%, 74% of them either made their money or preserved their money in real estate. So that's where most of the wealth is created. That's why if you want that for yourself, it's where the average person just has a legitimate shot at really making it happen for themselves. I mean, there's other ways for sure.

But this is where most people can get it done. And so climbing the six levels of real estate investing is going to enable you and empower you to get it done for you, to get it done for your family. All right. So the six levels of real estate investing are designed to make it easy for you to climb to the top of your real estate investing game, providing you with peace of mind and a secure financial future. and if you do it right, it's not just your future, but it's your children's future and your children's children's future. I mean, it's a legacy that you get to create through real estate. And by climbing up the levels, you will be able to play by the new rules of money and win.

Because all those rules, I think, was 1972 when we were taken off the gold standard. The rules of money changed that day. And it's when saving money became a losing proposition. The new rules of money, it's all about streaming money. And so you'll be able to play by the new rules of money by climbing these six levels. you'll be able to watch your financial concerns dissipate, and you're going to experience more free time once you get to the top. And ultimately, this is going to create a life of options for you and your family.

Investors who climb these six levels, they can exit their rat race 10 times faster than the traditional approach most people follow. Now, when I say 10 times faster, it sounds like I just pulled that number out of thin air because it's a nice, round, easy number to say. No, I've done the math. I've put it on the spreadsheet. and if this is how you're going to go about working and saving the average person here,

and then the average person comes over here, they go to work and they invest in real estate. It's 10 times faster, okay? So it's still a lot of work. I'm not saying it's easy. It can be rather simple, but it's still a lot of work. It's just the big question is how long do you want to work hard? That's the biggest question. It's all hard work.

All right. It's just how long do you want to work hard? So here's the secret formula that makes the six levels of, real estate investing work. You need a few things. You need the right road. You need the right vehicle. You need the right fuel. And what those three things equal is financial freedom. That's where it delivers you to. Okay. So the right road is the pursuit of passive income. The right vehicle is real estate and the right fuel is leverage. Okay. So the right road is going to make it shorter, less stress, having the right vehicle, it's going to create certainty. It's going to simplify everything.

You're going to beat the market. And it's going to last forever. and then the right fuel is going to accelerate your progress. It's going to be less work, and you get to be in much more control that way. And all that equals financial freedom, more money, more time, peace of mind. Okay. So the six levels of real estate investing lab, just kind of cover those really quickly, just kind of recap those, and then I'll share with you how you can get to your next level, regardless of which level you're starting at.

So level one is the startup level, earning zero to $5,000 a month. This is where you're working in your spare time. Okay, just kind of picture a pyramid right now, okay, a pyramid, and we're starting at the bottom. It's divided into six different sections that pyramid, so the bottom section is going to be the biggest, the top section is going to be the smallest, okay? Level one, startup, earning zero to $5,000 a month working in your spare time. Level two, this is the survival level, earning $5 to $10,000 a month working part time. Level three, stability, earning $10,000 to $20,000 a month working full time. Level four is success, the success level, earning $20,000 to $50,000 a month, working overtime.

Level five is the scale level, earning $50,000 to $100,000 a month. Now you're starting to get more of your time back. This is where it starts to make sense. And then level six is where you reach that level of significance, where you're earning six figures plus a month. And now you're experiencing a whole lot more free time, all the free time that real estate investing promises. But you got to start at the bottom and work your way up. and how fast you work your way up is entirely up to you. Now, each level has its own experiences.

It has its own lessons. It has its own vulnerabilities. Each level has specific steps of what there is to do to ensure that you keep moving up the pyramid. You got to keep going up. You don't want to fall back. You don't want to get stuck. You want to keep moving up. And there are specific steps at each level to take to keep you progressing upward.

So when you take on real estate investing, you are your own boss. And for a lot of people that get started in real estate investing, this is their their very first experience of ever being their own boss. It's their very first experience where they're 100% accountable to themselves and not accountable to somebody else. And when you are your own boss, you are also your own employee. Yes, you get to be an own boss, but you still need an employee. And in the beginning, you're going to play both roles.

You're going to wear both hats. So you tell yourself what to do, and then you have to do it. So this dynamic becomes complicated when the employee version of yourself isn't meeting the expectations of the boss version of yourself. And this is a big epiphany for a lot of people. And they're like, this isn't working. And it's probably you aren't working. You know, the boss version is telling yourself what to do. But the employee version of yourself is not doing the work.

So here's how you use the pyramid to make sure that this doesn't happen to you. so you know exactly what there is to do so that you're being productive and you're not just being busy. So the six levels of real estate investing are the natural progression of how to become your own boss and eventually becoming the business owner. And having completed every level myself to create these steps, what I did is I just simply reverse engineered how I got to the top. And then I wrote a standard operating procedure and SOP for each level.

So on each level, what I'll do is I'll explain what you're going to experience. I'm going to create clarity around where you're vulnerable. And then I'll give you a custom step-by-step prescription to get to the next level. And, I mean, you may even find some things that you've missed from previous levels. And this will be a great chance for you to go back and plug up the gaps and move forward with even less risk. And technically, I mean, there's no reason for you to move up only one level at a time either. It's not unheard of to take huge leaps of two to three levels at a time or do those leaps

really, really quickly. But whether you choose to move quickly or slowly, what you'll do is you'll find an appropriate checklist to use for your plan of action. And like I said, I promised this during these initial episodes. I just wanted you to have it in kind of written form and have it in checklist form. So, you know, you could use it as your actual, you know, your actual to-do list. And it just took much longer to put it together than I'd expect it. But I didn't forget.

So I wanted to come back around and share it with you once I had it completed. And I have completed it. and if you'd like a copy, it's yours for free. I'll certainly give it to you. And so after sharing this with several of my students and looking at over several times myself and sharing it with one of my mentors, I discovered most of them, most of my students,

I discovered most of them weren't actually aware of which level they were on. They thought they were here somewhere, but then they actually went through a little process and they were like, ooh, that's not where I'm at. I'm somewhere else, meaning, you know, some are working the hours of one level, but making the money of another level. And sometimes that worked in their favor and sometimes that didn't work in their favor.

And it left them a little overwhelmed or confused as what there was to do. You know, do they go back and fix the stuff that's broken or do they take new actions to keep moving forward? So what I did is I took this action plan a step further. As I understand all progress, it begins with the truth. That's the only way you can begin moving forward is you have to identify a, exactly where it is you are right now and be very truthful and honest with yourself about it. And what I did is I created a very short and easy survey to help you determine what level you're on so you know exactly where to start.

And you can take that survey and you can grab your action plan, your custom action plan at what's my next level.com. What's my next level.com. And when you get there, I'll give you kind of an idea of what your results will look like after you answer those few short questions. this is kind of what it looks like. Let's say you're on, the results kick it out and say, boom, you're on level three, the stability level. So what that means is you're earning $10,000 to $20,000 a month, and real estate is a full-time gig for you. And that's what I know about this level. And here's what else I know about you and what the survey is going to reveal.

I know you likely have some working systems in place. You've got some systems in place. You have to have systems in this place. place of some sort to get you here. And while they might not be perfect systems, they're good enough. They're good enough for right now. You're more clear on what you're looking for in a deal, because you've got several under your belt now and you know what a deal looks like to you. You're forming solid and strategic relationships. You're gaining credibility within those relationships. And you probably have more options now for exits as opposed to just wholesaling or

flipping. And what I find most common among people at this level is that they start to notice their friends and their associates are changing their tune a bit by congratulating them on their success. You know, in the beginning, a lot of people might be saying, you're crazy. And, you know, my son who says, you're a cuckoo monster, right? And that just means, you know, you're a little out of your mind. You're thinking against the grain. You're going against the crowd. And people think you're kind of like, you've lost it, right? But all that, at this level, they start to change their tune. They start to congratulate you on your success. They start to get a little bit curious about what it is that you're doing.

And you're gaining family support. If you didn't have it already, a lot of people get started, and one of the spouses is a little skeptical of what the other one is doing. And at this level, though, you pretty much ended up on the same page. One of you have approved yourself

to be sufficient at this incompetent. So this is some of the stuff that's happening at this level. Okay, just some of it. And here's what you're likely feeling. That's what you're feeling at this level. I mean, you're feeling simultaneously accomplished. Like, you've done it.

You've probably made this transatlantic. transition from your day job and now you are your full-time boss now. So that feels good. You feel accomplished. Like I did it. You've got a sense of a self-actualization. But at the same time, you can have this other feeling that kind of contradicts a little bit. You're a little bit nervous about being on your own, right? You're a little overwhelmed. You've got a little bit more responsibility. You might be a little stressed. And, you know, you're more convinced that you need some help and support staff at this point. You've probably been a one-man band some sort up to this level, maybe you had a virtual assistant and helping you out with some

stuff, but you're convinced, okay, so if I'm going to keep growing, I need some help and some support staff because I can't do it all. And you might have this other little feeling of a little bit paranoid that your success won't last. Like, what if I fail? What if the market shifts? What if I run out of money? What if people stop living in houses, whatever it may be? But you start to get a little paranoid and you're worried about what you're going to do if it doesn't work out. But at the same time, you've got this other thing like excitement for the future. Like, gosh, what if I succeed? On one hand, you're like, what if I fail?

Oh, my God. And the other side is like, what if I succeed? Let's keep going and go for it. So you've got these different types of emotions going on. And with these experiences and with these feelings, there comes specific vulnerabilities at the stability level. I mean, each level has their vulnerabilities. But at the stability level, you know, your business,

it's being built on really only one person's expertise. And that's yours. being essentially that you are your own single point of failure in your business. Like if you walk out tomorrow and get hit by a bus, your business is done. And if you have other people relying on you for their support, that means they've lost their income as well. So that's a big vulnerability. And you're potentially trying to do too much at once.

You're being a little bit of afraid to let go because you got yourself to this point. And you're afraid to give anyone any sort of control on something because that's a little bit scary, especially if you've never done it before. And you might be playing a disproportionate amount of defense to protect what you've created, falling into the trap

of playing not to lose. And that can be a dangerous spot, because you know, this is as high as you're going to get if you shift into defense mode right here at the stability level. That's a big vulnerability for people. And, you know, you're implementing with trial and error. You're focused more on

how to do things rather than who can do these things for you. You're being maybe, and on the other side, you could be a little bit overconfident. Like, hey, I did this. I got here. I'm good. I know what I'm doing. And you might be taking it easy a little bit. And that what that does, it kind of threatens your progress to dip back into the survival phase.

That would be level two. So you can be a little bit nervous about going forward. You're trying to protect what you got. Or you're a little bit overconfident. It's starting to take your foot off the gas a little bit and maybe starting to, you know, enjoy some of the fruits of your labor already. And both of those places, not a good place to be. And what you do know, though, is you're probably not moving forward as fast as you'd like to, so you're still being tempted a little bit by the shiny objects. It might be some distractions out there.

You're looking at what others are doing because now you've met a few other real estate investors out there. You're comparing yourself to others. And you're thinking like, is the grass greener or is it not? If you got in a circle with other investors on the stability level, this is what I promise. you've got these issues, you've got these challenges. And if you got into a circle with other investors on the stability level, and you all put your problems in the middle, just laid them on the ground, you'd quickly pick yours back up. Okay?

So be careful comparing yourself to others. And you could be trying to grow too fast by saying yes to every opportunity because you don't want to miss out on anything. Either you're saying yes to every opportunity because you're overconfident. You think you can handle it, or you're trying to protect what you have and you don't want to miss out on anything and you think you could use some backup. Okay, so those are all some of the things you could be feeling.

And if 70 to 90% of this is true, like everything I just shared with right there, doesn't mean all of it's true, although very often it is all of it is true. But it just of 70 to 90% of that is a match. And of like I said, of which most of it is, maybe not every single feeling of vulnerability here is right on the nose. But for the most part, it is so. And so there are specific actions for you to take to make sure that, one, you don't slip back. Two, you don't get stuck. And three, you make sure that you keep moving forward.

So here are some examples of actions. You want to focus on leveraging as much lead generation as possible. You want to get yourself out of the lead generation game and make sure that those leads are coming in automatically. You want to take all the standard operating procedures and processes that you've documented and start creating job descriptions. You know, in level two, you should be creating those SOPs. You should be creating those processes.

And you want to start creating job descriptions and you want to hire help. And you want to start by a deliote. all the mundane, low-paying tasks to either contractors or virtual assistance and interns or maybe even for all-out employees. But you want, ultimately, you want to start building a team, a team that can support you. There is no self-made person. Once you get to a certain level, the self-made thing goes right out the window and you need a team to support you. And, you know, the first hire might be an executive assistant to run the office and to run your team members. This is a really key hire, right? It takes you out of the personnel management. And so you're focused on the highest and best use

of your time. And that's talking to sellers, negotiating contracts. And then the next part would be talking to your executive assistant and make sure that you are delegating to them and they are managing your team members at this point. You don't want to become a person of value in your relationships to increase your credibility. The relationships are going to become more and more powerful to you and much more and more useful, more and more practical, the higher you climb these six levels. All right? So those are some examples.

And in your custom action plan, there are also some strategic questions that you want to ask yourself that will give you specific insights for your own specific situation. And these questions that creates this custom action plan, even more customized just for you, of which will lead to additional custom actions that you can take. All right. So questions like, what are you doing participatory? patient-wise, that's working well. Like, what are you doing right now that you're participating?

That's working well. And you want to make a note of that. And then what could you have done but didn't do or but aren't doing? Because there's always things that we know we could be doing that we're not doing. And what have you done that you could have done better? And there's things that we do and we don't do it as well as we thought. So those are all important answers to have at this level because it's going to give you good insight and additional actions to take to get you to,

your next level. And another question could be, what recurring obstacles are in the way of you becoming a full-time real estate investor? Right? What recurring obstacles? Because right here, you're working full-time, but there's obstacles and challenges that seem

to keep rearing their ugly head and getting in the way. What are those? And how can we get rid of those? Okay. And then each custom action plan, it ends with a list of recommended resources that will help you carry out your action plan more easily and efficiently. So if you'd like to see where you are and what needs to be done specifically to get you to where you want to

go inside of your real estate investing, go to what's my next level.com. I just gave you one quick overview of level three, the stability level. So that might be where you are. You might be above that. You might be below that. And if that's the case, you have different actions to take. You have different vulnerabilities to be concerned with. So if you want to get to your next level, go to what's my next level.com totally free, no obligation, and answer a few questions, and then boom, you're going to get your customized action plan, and then there'll be a little video there of where I'll actually even walk you through the whole thing. Okay? So go to what's my next level. All right, that's it for today. God bless to your success. 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. We got to get as low. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.